A

LOAN AND ADVANCES

AT
JIVAN COMMERCIAL CO-OPERATIVE BANK

PREPARED BY
KANUJ KOHLI
(M.B.A.- SEMESTER IV)

Academic year
2017-18

Enrollment No.
HPGD/OC16/1677

A PROJECT SUBMITED TO
WELINGKAR INSTITUTE OF MANAGEMENT STUDIES

1
 DECLERATION

I, the undersigned, KANUJ KOHLI , hereby declare that the project report
on LOANS AND ADVANCES ” conducted at JIVAN COMMERCIAL CO-
OPEARTIVE BANK is prepared and submitted by me to the
WELINGKAR INSTITUTE OF MANAGEMENT STUDIES.

This project is my original work and report prepared therein is based on

research by me during my project. I further declare that to the best of my
knowledge and belief, this work is not submitted to this or any other
university for the award of any other degree, diploma or equivalent course.

Signature
KANUJ KOHLI

Place: Delhi
Date: 08/20/2018

2
 ACKNOWLEDGEMENT

I hereby want to thank Jivan Commercial Co-Operative bank and its

members for their help given to me during my training. I was thrilled to find
that people here were very co-operative and helped me in all ways possible.
They were very eager in solving my queries and were ready to help all the
time.

First of all I am very thankful to my parents because they have cooperated

with me in preparing this project and without their support I could not do this
project.

Moreover I want to take these opportunities to thank Mr.D.N.Kikani despite

being one of the busiest person in the bank. he took out time to attempt to
my questions. So for these, I want to thank him for his co-operation and
knowledge that he has imparted to me.

3
 Table of content

Declaration……………………………………………………………………… 2
Acknowledgement……………………………………………………………… 3
Executive summary…………………………………………………………….. 6

1 Industry Overview …………………………………………………… 7

1.1) Introduction to Banking ……………………………………………… 8
1.2) Banking in India ……………………………………………………… 9
1.3) Introduction to Co-operative Banking……………………………… 12
1.4) History of co-operative bank………………………………………… 13
1.5) Role of Cooperative in Indian Economy…………………………… 14
1.6) Characteristics of Co-operative banks…………………………… 15

2. Company Profile ………………………………………………………… 16

2.1) History of JCC Bank ……………………………………………… 17
2.2) Bank Profile ………………………………………………………… 19
2.3) Board of Director of the bank …………………………………… 20
2.4) Organization Structure of JCC …………………………………… 21
2.5) Vision and mission of bank……………………………………… 22
2.6) Award and achievement ………………………………………… 24
2.7) Future plan………………………………………………………… 24
2.8) social contribution ………………………………………………… 25
2.9) Mile stone of bank ………………………………………………… 26
2.10) Service Department……………………………………………… 27
2.11) Marketing Department…………………………………………… 32
2.12) Human Resource Department…………………………………… 35
2.13) Finance Department……………………………………………… 40

2.14) Swot Analysis……………………………………………………… 42

4
3. Research Topic ……………………………………………………… 45
3.1) Meaning of research……………………………………………… 46
3.2) Meaning of loan and advances…………………………………… 47
3.3) List of various loan………………………………………………… 48
4. Literature review ………………………………………………………… 54
5. Research Problem ……………………………………………………… 58
6. Research Objective …………………………………………………… 58
7. Hypothesis/Hypotheses ………………………………………………… 58
8. Research Methodology ………………………………………………… 59
9. Data analysis and Interpretation ……………………………………… 62
10. Statistical Analysis/Hypothesis Testing……………………………… 70
11. Recommendation and suggestions ………………………………… 73
12. Research findings ……………………………………………………… 73
13. Conclusion ……………………………………………………………… 74
14. Limitations of the study ……………………………………………… 74
15. Implementation of the study…………………………………………… 75
16. Scope for the future study …………………………………………… 75
17. References ………………………………………………………… 76

5
6
 EXECUTIVE SUMMRY

“Study of loan and advances of JCCB”. I have taken this topic because now-
a-days in this fast developing economics era, loan and advances play a very
important role like when a person wants to start a business then he can start
his business by taking a loan from bank and this is affected by the interest
charged on loan.

The main purpose of this study is to know that which banks loan is more
suitable to take by market survey.

Whole project consists of bank details. History of banking in India, major

players in the banking sector and Regulatory Environment details under
which JCCB is working. This report also covers the major departments of
JCCB viz. Marketing Department, Finance Department, Service Department
and Human Resource Department.

7
Industry

overview

8
 1.1) INTRODUCTION TO BANKING

Banks are among the main participants of the financial system. Banks also

perform certain activities which are ancillary to this business of accepting

deposits and lending. Since Banking involves dealing directly with money,

governments in most countries regulate this sector rather stringently. Banks

provide almost all payment services by conducting checking or current

accounts for customers, paying cheques drawn by customers on the bank,

and collecting cheques deposited to customers' accounts. Banks also enable

customer payments via other payment methods such as telegraphic transfer.

Banks have added new payment channels like Internet banking, Mobile

Banking, ATMs etc.

Banks activities can be classified into 5 categories:-

1) Retail Banking: dealing directly with individuals

2) Business Banking: providing services to mid-size business

3) Corporate Banking: dealing with large business entities

4) Private Banking: providing wealth management services to High Net

worth Individuals

5) Investment Banking: relates to helping customers raise funds in the

Capital Markets and advising on mergers and acquisitions.

In addition to this Banks are now moving towards Universal banking which is a

combination of commercial banking, investment banking and various other activities

including insurance.

9
 1.2) BANKING IN INDIA

Early phase of ancient times

The origin of banking in India can be traced back to almost the Vedic period.

The transformation from pure money lending to proper banking appears to

have taken place before the times of Manu. Manu, a great Hindu jurist, has

devoted a section of his work explaining the deposits and advances and he

even laid down certain rules on rates of interest.

Throughout Mauryan period and later on, desi bankers played some role in

the economy of the country. However, it was during the Mogul period that

indigenous bankers started playing a vital role in lending money and

financing of the foreign trade and commerce.

Second phase from 1786 to 1969

Banking on European lines started in India, when two British managing

agency houses, namely Ferguson and Co. and Alexander and Co. set up the

first joint stock bank in 1786 in the name of General Bank of India. Later on

Bank of Hindustan also came into existence which carried on the business

till 1906.

10
East India Company established three banks; namely, The Bank of Bengal in

1809, The Bank of Bombay in 1840, and Bank of Madras in 1843. They were

collectively called Presidency Banks and were well functioning independent

units.

A number of private banks had been established by the businessmen from

mid of the 19th century onwards. In the surcharged atmosphere of Swadeshi

movement, a number of banks with Indian management, namely, Punjab

National Bank Ltd., Bank of India Ltd., Canara Bank Ltd, Indian Bank Ltd.

etc. were established.

The Reserve Bank of India was established as the Central bank of the

country in 1935under an act called Reserve bank of India Act. In 1955, the

Imperial Bank of India was nationalized and was given the name "State Bank

of India”. On July 19, 1969, 14 major banks were nationalized.

Third Phase from 1969 to 1991

The three decades after nationalization saw a phenomenal expansion in the

geographical coverage and financial spread of the banking system in the

country.

In 1980, another six banks were nationalized, and thus raising the number of

nationalized banks to 20.In the post-nationalization era, no new private sector

banks were allowed to be set up. However, in 1993, in recognition of the need

11
to introduce greater competition which could lead to higher productivity and

efficiency of the banking system, new private sector banks were allowed to

be set up in the Indian banking system.

Forth phase from 1996 till date

New delivery channels like ATM, Mobile banking and Internet banking and

convenience of any branch banking and auto sweep products introduced by

new private and MNC banks. Communication infrastructure improves and

becomes cheap.

12
1.3) INTRODUCTION TO CO-OPERATIVE BANK

Definition of Cooperation

H.CALVERT define cooperation –

“As a form of organization, where in persons voluntarily associate together

as human beings, on a basis of equality for the promotion of the economic

interest of themselves.”

7 principles of Cooperative societies

1. Voluntary association or open membership.

2. Democratic control

3. Members economic participation

4. Autonomy and independence

5. Co-operative education, training and information

6. Mutuality or cooperation among members

7. Concern for community

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 1.4) HISTORY OF CO-OPERATIVE BANKING

Over the years, the difference between co-operative banks & commercial

banks has blurred as they all have come under a common law. All products

& services are offered by co-operative banks are on the par with commercial

banks, with a few exceptions related to government business. In 1904 the

co-operative movement started in India with a view to provide finance to the

agriculturist at a low rate of interest. The co-operative society has to take the

place of the money lenders & provide cheap loan to the farmers for

productive purposes. Even though many types of co-operative societies

have been started particularly for the artisans & others, the most common

form of such societies deal in rural credits. And today co-operative banks

have started verities of Services with different technologies.

Once Mahatma Gandhi has remarked that “There is sweetness in co-

operation; There is no one who weak or strong among those who co-

operate. Each is equal to other.”

Over a period of time, a strong co-operative network made its way into rural

areas with Gujarat, Maharashtra and Andhra Pradesh leading the way. The

original founders of the co- operative movement were people with integrity,

foresight and vision. However, with the passage of time, there has been

erosion in the quality of leadership in this sector.

14
 1.5) ROLE OF CO-OPERATIVE IN INDIAN

ECONOMY

In today’s competition era it is necessary that all work in cooperation. As

rightly said that

“United we stand, Divided we fall”. So cooperative banks become necessary

for the society. Also our nation is the agriculture based where 60% people

live on agriculture and farming. So cooperative banks provide low interest

loan to farmers.

Our govt adopted LPG policy in 1991 so cooperative banks also need to

reform. It has become necessary to make co-operatives more competitive

and market oriented. The old vision of cooperatives as merely government

sponsored institutions or as individual driven organization would have to give

way to a new vision of co-operatives where in the co-operative become

“competitive business units” to play an active and effective role in economic

welfare of its members. This calls forcreation and development of new type

of co-operatives institutions and re-engineering and reinnovation of existing

co-operatives to meet the challenges of new economic scenario. In

liberalized market economy cooperatives provide protection to people and

make possible survival of weakest also.

15
 1.6) CHARACTERISTICS OF CO-OPERATIVE

BANK

The establishments of co-operative banks are mainly to cater to the

needs of the rural areas and small borrowers are concerned more with

financing agricultures.

The co-operative banks are organized on co-operation basis and are

governed by their members according to co-operative laws.

Co-operative banks are under control of state government and to lesser

extent RBI certain provision of banking regulation act also applied.

In co-operative banks borrowers being member have some control over

management and use of funds.

They have to follow rate for investment laid down by the register of co-

operative societies.

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COMPANY

PROFILE

2.1) HISTORY of JCCB

17
Jivan commercial Co-operative Bank ltd. has been a long & eventful journey

from 1972. From a small building in a Rajkot to its new hi-tech & fully

computerized building and branches in Rajkot as well as in wakaner is a

sage of vision enterprise, finance prudence and corporate governance.

JCCB ltd. was established on 7 Aug, 1972 with share of Rs. 78200 and

membership of 1017 person under the leadership of late established by late

shri rajedra raya with late shri harsubhai raval. And Mr. Kantibhai, Gujarat’s

finance minister at that time. This bank was names on famous shastri

JIVANLAL RAVAL. The bank has made tremendous and real progress under

the leadership of chairman late rajendrabhai Raya.

Bank is successfully working for 3 year. This bank has started with the

working capital of Rs.1 crores which kept on incasing till today and crossed

the limit of Rs.100 crores. The bank has started its first branch at

bhaktinagar on 4 sept, 1977 and again to fill the demand of customers 2nd

branch on 19th Oct, 1981 at Raiya road and 3rd branch on 7th April, 1985 at

wakaner. The bank sees a vision of current and future trends, bank to start

the safe deposit volt way back in 1990.

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During past years bank has player 7 leading role for the development of

industrial business and economy of Rajkot city. Bank has developed in

manifolds with time membership of bank is now 24049, which provides an

example of how mass movement can be turned into the instrument for social

up-linemen. Today bank has more than 59719 deposit accounts with

deposits base of 171+ crore no. of borrows 4218, establishment/individuals

enjoys the facility of rs.85+ crores and advance bank has 19+ crores of

reserve fund. Now bank has share capital of rs. 4, 37, 82,500 bank has 3840

safe deposit Walt.

Bank has establishes “sabhasad kalyannidhi fund” for T.B, cancer, Eye and

diabetes treatment for the member of bank. Bank has denoted to educational

institutions and hospitals. Bank has also denoted in Natural calamities such as

earthquake and flood. Bank also promotes to the sports activities.

Being in the service sector with a vision of current and future treats, Bank

started automation and modernizations way back in 2005 all the branches as

computerized. And the has paid regularly the dividend to share holders on

an average of 12% p.a.

19
 2.2) BANK PROFILE

Name : Jivan Commercial Co-operative Bank Ltd.

Address : Dhebar Road, Rajkot.

Year of establishment : 1972

Registration no : 6102

Founder : Shri Rajendrabhai Raya

Shri Harsubhai Raval

Type of bank : Commercial co-operative

Branches :5

Initial member : 1017

No. of Customers : 24049

share capital : 5, 22,44,800

No. of Employee : 104

Contact No : bank- 0281-2240876

0281-2240877
0281-2240875
Loan -0281-2240878
Fax no.0281-2233168

E-mail : jivanbank@yahoo.co.in

Chairman : Shri Rameshbhai parsana

Managing director : Shri Narendrabhai Jadeja

General Manager : Shri Dhirendrabhai S. vyas

Internal Auditor : Shri D.N.Kikani

Working time : 10am to 5pm

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Working day : Monday to Friday
Saturday half day

Week off : Sunday & public holiday

 2.3) BOARD OF DIRECTOR

1. shri Bhagvanjibhai Parsana

2. Shri Rudradatt J. Raval

3. shri Vashantbhai H. Kamdar

4. shri Rajeshbhai Parsana

5. shri Harkinbhai P. Mazni

6. shri Natvarlal P. Khakkhar

7. shri Babubhai K. Dhabhi

8. shri Jaydevsinh Jadeja

9. shri Vajubha Sajubha Zala

10.shri Navinbhai C. Bharcha

11. shri Rameshbhai Patel

12.shri Sureshbhai Pathak

13.shri Hasmukbhai Bhubbhadev

14.shri Dharmendrabhai P. Vyas

15.shri Nitinbhai Chauhan

16.shri Narendrasinh A. Jadeja

17.shri Asvinbhai G. Dave

18.shri Ronak S. Dhavda

2.4) ORGANIZATION STRUCTURE

 Chairaman
↓
Vice chairman
↓
Managing director
↓
↓ ↓

Main Branch Other Branch

↓ ↓

Manager Manager

↓ ↓

Deputy Manager Assistant Manager

↓ ↓

Assistant Manager Clerk

↓ ↓

Clerk Peon

Peon

2.5) VISION AND MISSION OF BANK

→vision of bank

“Maximum profit at maximum services”

The bank is committed to maintain the highest level of ethical

standards, professional integrity and regulatory compliance. Our bank

philosophy is based on four core values such as:

1. Operational excellence,

2. Customer focus,

3. Service leadership,

4. Welfare of people,

The objectives of Jivan Commercial Co-operative Bank ltd. Is to

provide its target market members a full range of financial products and

banking services, giving the members a one-step window for all his/her

requirement.

→Mission of bank
“We are always with you”

The above slogan has been accepted and well performed by

the bank. Bank always tries to give support to its members. The regular

payment of dividend over such 38 year on an average of 12% p.a. is a good

sing of the implementation of the slogan “We always with you”

Bank also provides loan facilities to its members for short

term and medium term financial requirements at reasonable rates.

The bank is going to start new branch in near future for easy

accessibility.

The bank provides easy clearing of cheques at the ground

floor at main branch.

Adopting the latest technology for calculating and

communication.

The mission of JCCB is to maintain 0.00NPA bank in future

with performing above slogan.

 2.6) AWARDS AND ACHIEVEMENT

→The bank got an award for tennis tournament.

→Bank term came 1st in India in inter bank cricket tournament

→The bank is awarded “A” class for auditing by the government of Gujarat
since its inspection.

2.7) FUTURE PLAN

→the bank is planning to establish new branches at urban and semi-urban

areas including rural areas.

→bank is going to adopt new technologies for accounting and other activities.

→soon the bank is going to provide ATM facility to its customer.

 2.8) SOCIAL CONTRIBUTION

→Donation to education activities

→Reserved sheets for patients of T.B, Cancer, and Diabetes in various

hospitals.

→Promotion of sports activities.

→Loan to education unemployed youth

→Help to earthquake victims by providing donation and other requirement.

Keeping in sight, social obligation at large and interest of

its share holders in particular, the bank aim is to provide a WORLD CLASS

facility to the common people of the society at an e-commercial rate. So as

to be a preferred providers of the banking services in the area where bank

operates and achieve a healthy growth in profit, which will be partly used for

the benefit of society and for up-linemen of masses and general growth of

co-coordinative movement.
 2.9) MILE STONE OF BANK

18 April 1972 -bank got registration no.6106

3 july 1972 -bank was established

7 Aug, 1972 -bank got registered and was in auguarated by finance

ministerm of Gujarat

4 Sep, 1977 -bhaktinagar branch was started

16 Jan, 1980 -A new branch at ranchchodnagar was started.

19 Oct, 1981 -started more branch at raiya road

7 April 1985 -The first out station branch was opened at waknaner

June 1986 -Deposit crossed Rs.5 crore

June 1989 -no. of share holder increased above 10,000

25 Oct, 1990 -established a new branch at dhebar road, as a main

branch with modern system

7 Aug 1997 -bank celebrate silver jubilee

March 2000 -deposit crossed Rs.50 crores

March 2003 -bank pays the highest 15% dividend

-deposit crossed 50,000 depositors

March 2004
-bank started sorathiyawadi branch
April, 2010
 SERVICE

DEPARTMENT

2.10) INTRODUCTION
JCC is purely a service sector. So here instead of production department
there is only “Service Department”. The work of a Service Department is to
produce better services to the customers, which satisfy the human desire in
a best manner.

In banking, service department is concern with that process which converts

the inputs in to outputs. Money is used as a raw material other resources,
information technology, employees are used as an input. Then after there is
need to perform all the service functions (Process). The output is satisfactory
services, employees benefit, security etc.

1. Current
2. Savings
3. Special savings
4. Loan Compulsory
5. Nominal Compulsory
6. Pigmy
7. Fixed
8. Recurring
9. Locker

Current Account
•It is basically used for business purposes. It doesn’t give any interest on
deposits.
•It can be held in the name of firms (include partnership firm, pvt. Ltd. Co., ltd.
Co., trust, association), person.
•Its prime purpose is to serve the customers for their daily business
transactions.
•A customer having current account can withdraw money in the form of cash
or cheque in an infinite number of times and so is unrestricted.

Savings Account

•These deposits too are used for transactions purpose. For example if you
want to pay electricity bill, telephone bill etc. you can give a cheque from
your savings a/c rather than giving hard cash. Other things such as paying
fees, paying dues etc. can be done from this a/c.

•This deposit is usually held in the name of individual as it is used for

personal purposes and gives interest at the rate of 3.5% per annum.

•Note that trust and association can hold current as well as savings account.

•A customer having savings account can withdraw money in the form of cash
or cheque in a limit number of times which is restricted as 5 times per month
at JCCB. Note that this withdrawing power can be different for different
banks according to the rules and regulations of that particular bank
Special savings
•This concept and deposit was prevalent earlier, but now it is not in use.

•In this deposit a customer can withdraw the money only3 times (less than
savings i.e. 5times). However, this deposit gives an interest at the rate which
is higher than the savings account. Earlier, when it was in use these deposits
gave a return of 0.5%higher than that of savings deposits.

Loan Compulsory

•These deposits are made compulsory for a customer who wants to take a
loan from JCC. For this customer it is required to keep 2.5% of the loan
amount in these deposits. It gives the same interest rate as saving deposits.

Nominal Compulsory

•It is similar to loan compulsory deposits in most ways. However, the

difference is that these deposits are held by customers having less loan
amount. These deposits are there to help small loan takers, so that these
people don’t need to keep 2.5% of their loan amount as deposits. It gives the
same interest rate as saving deposits.

Pigmy
•Pigmy has different names at different banks. Some banks give ‘daily
saving’ name to this service.

•Very few banks offer this service. Here, the customer is required to deposit
the installment on daily basis. The interest rate offered is same as Fixed
Deposits. Fixed Deposits (FD)
•It is a deposit which offers the highest interest rate than any other above
mention deposits. So it is mainly used for long-term saving purposes. For
example: a couple having a child of the age of 10 keeps an FD account so
as to use the matured amount for the child’s college fees in future.

•These deposits and its interest rates are explained in detail in the future
sections that are to come.

Recurring
•It is a type of FD with deposits kept for 12 or more months. Here the
deposits are given at installment by the customer. The interest rate for these
deposits is same as FD.

Recurring Example

Deposit date 05-05-2010

Matured date 05-05-2011
Monthly installment 500
Rate of interest 8%
Matured amount 6265

Locker

•It is necessary to deposit some amount in the bank if a customer wants to

have a safe-locker facility. This deposit is made in locker deposits with
interest rate of 9%perannum (interest calculated at half a year) for 5 years.
The deposits that are to maintained for different lockers is given in the
following table

Size of locker Deposit required to be maintained

Small R.7500
Medium Rs.15,000
Large Rs .22,500
MARKETING

DEPARTMENT
 2.11) INTRODUCTION

Marketing is the process of planning and executing the concept of pricing,

promotion and distribution of ideas, goods and services to create exchange
that satisfy individual and organizational objective.

The origin of marketing can be traced to the early system of barter system.
Various difficulties of barter gave way to introducing of money and the pricing
became the main mechanism of marketing. Then the marketing era after the
World War 2. Competition became very intense, there was more supply of
goods then was actually needed by market. Therefore marketing research
became vital to undertake the social responsibility in connection with
manufacturing of goods. Efforts are made to balance consumer satisfaction
+ profit + public welfare.

JCCB is service sector firm providing satisfactory services to its customers

since a decade. The main objective of bank is to give the loan to middle and
lower class of people.

By the name it self people doesn’t ask any other question and willingly ready
to do the transaction with the bank did some local marketing such as.
- Advertising in local news papers
- Distribution of pamphlets
- Advertisement in business fair
 PRODUCT LIFE CYCLE

Every product under goes different stages of life cycle. Product life cycle
simply Mean the course of the product’s sales and profits over its life time. It
involves five distinct stages:

1) Product Development
2) Introduction- Low sales, High Costs, Negative Profits
3) Growth- Rapidly increasing sales, Average Cost, Rising Profits
4) Maturity- Peak sales, Low Cost, High Profit
5) Decline- Declining sales, low Cost, Declining Profits.

In “JIVAN COMMERCIAL CO-OPERATIVE BANK”, the product is passing

through GROWTH STAGE, as bearing is the heart of every machine and
vehicle and its demand is expected to increase in future and not decline.
 HUMAN

RESOURCE

DEPARTMENT
 2.12) INTRODUCTION

Employees hold a key place in business. No business enterprise can exist

and function without employees. The success of business enterprise
depends to a large extent on the quality of its human resources.

Human resources management is the key to the whole organization. The

concept of personnel management is application not only to bank, but it is
equally important in office, sales department, laboratories where the
management must win the cooperation of their subordinates.

The plan of business may be logically sound and structure of organization

may be perfect, but if the requirement and training of human resources are
unscientific business can ability of its employees. Therefore, it is necessary
to direct motive, develop and manage their activity.

This bank has a good management and large department of manager and
employees.

RECRUITMENT SOURCE
 Employee holds key position in business. No business enterprise can exit
without employees. The plan of business may be logical sound and structure
of organization may be perfect but if the recruitment and selection of
personnel are unscientific business cannot be develop. And hence every
organization needs employees from time to time.

Recruitment is the process of discovering potential applicants stimulating

and encouraging them for applying for a job in an organization.

Recruitment is positive activity. There are three methods of recruitment.

Direct method
Indirect method
Third Party method.

In “JCCB”. Sources general recruitment for worker level is direct

method of Recruitment and selection is done of top executive. The
advertisement is given in local n state level news paper. Generally there are
two types of sources of recruitment.

Internal Sources
External Sources

(a) Internal Sources:

Promotion
Transfer
Demotion

(b) External Sources:

Advertisement
Employment
agencies Labor union
Gate hiring Education
institution Unsolicited
application Ex-
Employee.
 SELECTION

“Selection is the process of differentiating between applicants in orderto

identifies these with a greater likelihood of success in the job”.

The main aim of selection is to determine whether an applicant meets the

qualifications for a specific job and to choose the applicant who is most likely
to perform well in the job.

IN JCCB:-

In case the bank has given advertisement for applicants, first the receive the
application. Manager evaluates the application and he rejects improper
application and calls a person having proper application from for the
personal interview.

In interview, the manager takes different types of interview s for different

required personnel. These interviews are:
- Personal interview
- Oral test/ written test

Now, if the employee has passed the relative interview, he has to pass the
medical test & then the employee is selected as “trainee” for a certain time
period.

The training period depends upon the employee’s capacity but the maximum
period is of 2 years. After, 3 to 6 months, the report of trainee employee is
submitted to manager and if it is satisfactory then he is selected, and if the
report is negative i.e. if there is no progress then employee will have to
discontinue

PROMOTION:
A promotion is a type of a transfer involving placement of an employee to a
position having higher pay, increased responsibility more privilege, increased
benefit and great opportunity.

Promotion is given so as
To increase an employees organizational effectiveness
To build up moral, loyalty and a sense of belongings on the part of
To attract suitable and competent workers for the organization.

Promotion may be given on two bases:

On the basis of seniority
On the basis of merit

In this bank, promotion is given on the basis of seniority basis.

At lower level also promotion is made from operative level to supervisory
level and from that to office clerk.

The employee is selected for promotion keeping in view his

work performance, regularity and seniority.
 Finance

department

2.13) INTRODUCTION

The term Business Finance mainly involves, rising of funds and their
effective utilization keeping in view the overall objective of the firm. The
management makes use of various financial techniques for administrating
the financial affairs of the firm in most efficient and effective way. Financial
therefore means the entire gamut of managerial effort devoted to the
management of finance-both its sources and - of the enterprise.

Its detailed analysis includes financial analysis, risk analysis, capital

structure, measurement of cost of capital, merger, acquisition, working
capital financing, and management of cash and market securities.

In JCCB, separate finance department is there under which various financial

activities are carried out. The bifuregation of activities that are carried in
finance department of JCCB are as follow:

- Preparation of annual account

- Reconciliation of branch account with head office
- Government securities back office work.
- Dealing with other banks.
- Licensing with RBI
- Auditing
- To decide accounting policy
- Management information system
- Periodical returns of RBI
- To decide accounting policy
 Swot
analysis
SWOT analysis means overall evaluation of a firm’s strengths, weakness,
opportunities and threats. Swot analysis consists of making analysis of the
external environment and internal environment.

→External environment analysis

External environment consists of out sides of the firm such as government

competitors etc. such environment analysis is necessary because it affects
the firm or an organization.

→Internal environment analysis

Internal environment consists of inner sides of the firm such as personnel,

finance, etc. such environmental analysis is necessary because it affects the
firm or an organization.

STRENGTH

-this bank is very reputed in local area.

-professional management & co-operate term
spirit -strong brand equity in local (Rajkot) area.
-fully computerized
-profitability & sound liquidity.
-branches in all most developed part of Rajkot.
-No mistake in regular transactions can be found because of small network.

WEAKNESS
-Bank is not performing marketing activity because lack of marketing
expertise -lack of modern management concepts and sometimes
communication gap can be found which indicates lack of professionalism.
-bank is not providing ATM facility in the recent developed area and bank is
not fully developed in modern area.
-lower volume of advances due to higher rate of interest ma effect the
expansion of the organization.
-not reputed at national level and less no. the branches.

OPPORTUNITES:

-bank can open branches at state level in near future.

-bank can introduce new services like NRI loan, ATM, student account with
minimum Rs.100etc.
-bank can perform marketing activities by media.

THREATS:

-changes in government policies and in rules and regulation regarding bank

can be disturbed in regular service of bank.
-Crises in the co-operative banking sector can disturb the bank progress.
ReseaRch

topic

3.1) Meaning of Research

In essence term, Research refers to a search for knowledge. One can also
define Research as a scientific and systematic search for pertinent
information on a specific topic. In fact, Research is art of scientific
investigation and careful investigation especially through search for new fact
in any branch of knowledge. Research is an academic activity because it
comprises defining and redefining problems, formulating hypothesis,
collecting, evaluating data, Making deductions and conclusion. Thus,
Research is an original contribution to existing stock of knowledge making
for its advancement.

The role of research in several fields of applied economy has greatly

increased in modern times. In corporate world, research is conducted to
solve various operational and planning problems of business and industry.
Research helps people in business and industry that are responsible for
taking business decision. In business, there are different types of research
conducted for different object such as operations research, market research,
motivational research. Operational Research refers to solve business
problem of cost minimization or profit maximization or what can be as
optimization problem. On the other side, Market Research is the
investigation of the structure & development of a market for the purpose of
formulating efficient policies for purchasing and sales.

3.2) Introduction of Research topic

Loan and advances

Any amount borrowed or lent is called loan. If money is borrowed it is debt
of business ands if loan is given, it is receivable for the business.

Loan is a method of lending under which bank gives credit to a borrower for
a fixed period and for a specific purpose. Loan are promises for future
payment, they have to be repaid in periods beyond a year and are, therefore
long term liabilities.

In other words "when a banker makes an advance in a lump sum which can
not be paid wholly or partly and which the customer has permission to
withdraw subsequently, it is called a loan."

Profit is the pivot on which the entire business activity rotates. Banking is
essentially a business dealing with money and credit. Like every other
business activity. Banks are profit oriented. A bank invests its funds in many
ways to earn income. The bulk of its income is derived from loans and
advances.

Banks make loans and advances to traders, businessman and industrialist

against the security of some assets or on the basis of the personal security of
the borrower. In either case, the banks run the risk of default in repayment.
Therefore, banks have to follow a cautions policy and sound lending principles
in the matter of lending. Banks in India have to consider the national interest
along with their own interest while determining the lending policy.

Many a time a borrower needs funds for fixed assets or non-respective type
of activities and thus seeks money from the bank that is withdrawn in one
lump sum. The loan amount is normally repaid in installments. Loan may be
short-term, medium-term or long-term.

3.3) List of various Loan of JCCB

1. Hypothecation-cash credit
 2. Industrial
3. Overdraft
4. Pledge
5. Consumption
6. Staff Consumption
7. Commercial loan
8. Vehicle loan
9. Building loan
10. Consumable loan
11. Machinery loan
12. Gold loan
13. Bill purchase

1. Hypothecation-cash credit:

This loan is basically given to business people on their trading stock. JCC
gives loan up to 70% of the value of the stock. If here the customer provides
additional property for mortgaging, then extra 50% of the value of property
can be added to the loan amount.

For Builders 15%

For others
Up to 75,00,000 15%
More than 75,00,000 14%

2. Industrial:

Like Hypothecation this loan is also given to firms but here it is given on
finished goods. The other things are same as Hypothecation.

Industrial purpose
Up to 75,00,000 15%
More than 75,00,000 14%

3. Overdraft (OD):

For the businesses like brokerage firms and trading firms, where there is no
record of the stock, but has to keep large amount of funds to felicitate trade,
hypothecation and industrial loans cannot be given. So for the liberation of
these firms, OD loans can be given. Here these firms are given loans on the
basis of their record of balance sheet and PNL (Profit and Loss) account.
These loans are of 2 type’s viz. FOD and SOD. FOD is the loan given
against fixed deposit whereas SOD means Secured OD and is given on the
mortgaging of the property of the business land or property. JCC gives loan
up to 85% of FD value.

Overdraft
Unsecured 18%
Secured for others
Up to 75,00,000 15%
More than 75,00,000 14%

4. Pledge:

Here stock is under the control of bank. For example the key of the
warehouse in which the goods are kept is with the bank. Example of a fridge
stock. Suppose a warehouse of fridge is under the control of bank. Now,
bank will give the keys to the stockholder only if he pays a part of loan which
he has taken on the stock of fridge. This loan is not prevalent now at JCC.

5. Consumption:

This is called self-mortgaging loan where the people usually comes for taking
loans on their personal income. It is the only type of loan where the purpose of
the loan is not mentioned. At JCC, this loan has one of the larger shares among
all types of loans. Majority of the loan takers of these loans are the workers of
Rajkot Municipal Corporation (RMC).Here the RMC submits the salary
information of the worker who wants to take loan and promises to pay back the
loan installments from the salary of that particular worker. RMC manages this by
withholding the installment amount from the salary.
6. Staff Consumption:

This is similar to the consumption loan except that it is provide to staff people
at a slightly lesser rate.

7. Commercial loan:

This loan is provided to the small vendors, who are in need of money for
running their business. This is usually given to the people running small
provision stores, pan shops and others.

8. Vehicle loan:

As the name implies the bank gives loan on the purchase of vehicle. Here a
customer may want an old vehicle or a new vehicle. In the former case the
valuation of the vehicle is must. This valuation can be done by the bank or the
customer himself. In the later case of new vehicle the bill quotation is used for
considering vehicle’s value and 75% of the value can be given as loan.
However, in case of old vehicle 50% of the value of vehicle is given as loan.

Vehicle loan
Up to 75,00,000 16%
More than 75,00,000 14.5%
9. Building loan:

This loan is given on the purchase or construction of building for residential

or business purposes. This type of loan is also one of the major contributors
to the credit of the bank. These loans are basically taken by the public for
housing and are also taken by the builders for construction purpose. The
loan to the builders is given on the amount of the work done. For example
when the construction is about to start the first installment of loan is
sanctioned. Thereafter, after the construction of 1 st slab, another installment
is given and soon

A. for builders 15%

B. for others
Up to 75,00,000 15%
More than 75,00,000 14%

10. Consumable loan:

This loan is given for consumable such as fridge, TV, AC, etc. This is a type
of personal loan wherein it is necessary to define the purpose of the loan.

Consumption loan
Up to 75,00,000 17%
More than 75,00,000 14.5%

11. Machinery loan:

This is a loan given to industries on the purchase of the machinery. Here in,
if it is a new machinery then bill quotation is used as valuation. On the other
hand if it is old machinery then a value of bank is a asked to give valuation
report, based on which loan is sanctioned.

Machinery loan
 Up to 75,00,000 15%
More than 75,00,000 14%

12. Gold loan:

Here the loan is given on the purchase of gold. This loan is a rarity now.

Purpose -personal use

Limit -Rs.50, 000(in Rajkot city) 20,000(out of Rajkot)

Period -26 months

Rate of interest -14%

Repayable -equated monthly installment Rs.50 per thousand

Security -gold-silver ornaments or items on re-pledge

Document -loan application form, DP note

Paper -In case of service person pay sleep, in case of business

last yearly business report.

13. Bill purchase:

Here the customers give their receipt receivable to the bank. Bank pay the
total amount of bills to the customer and then it itself collects the receivables
on behalf of customers. Again these are also not prevalent now at JCCB.
4.) LITERATURE REVIEW

GUPTA AND AMBEGEOKAR:

Observed that the use of funds from banks by the private corporate sector
had exceeded its inventory formation. Gupta, has argued that a small portion
of such finance should have gone to meet fixed investment. Further, he
found the growth rate of physical assets to be more directly and closely
related to security issues than bank credit. Hence, he argued that the fast
growing firms relied heavily on security issues than the use of bank credit.
Arnbegeokar found that the rate of rise in bank credit exceeded that of
inventory, sales and output. Further he observed that its dependence on
banks for working capital had increased, accompanied by a decline in
reliance on other financial institutions.

SHETTY:

Assessed the dimensional changes in credit deployment during the first five
years of nationalization in relation to changes in output and prices. The
rationale for his analysis was the fact that, in any accepted model of demand
for money, one common variable is the gross national product or some other
variant of it in real terms. Consequently, he hypothesized that credit for any
sector or industry over a period has to have some relationship with its
performance in real terms, particularly output. He observed a declining trend
in the credit extended by banks to industries since nationalization, though it
was higher than other sectors. On finding that the share of manufacturing
sector in bank credit is higher than its share in Net Domestic Product (NDP)
he concludes that increase in bank credit has occurred far in excess of
increase in output during the years 1968/69 to 1973/74.
REVISED BY SHETTY:

Observed that the share of medium and large industry in total bank credit
had declined due to priority sector lending. Another observation in line with
his earlier finding was that growth in bank credit had always been
disproportionate to growth of their physical output, especially in industries
like cotton textiles. His observation particularly for the years 1975-76 and
1976-77 revealed:

(a) Increase in average bank credit had been higher than the growth of NDP
originating in registered manufacturing sector even at current prices

(b) An appreciable increase in the rate of short-term bank credit to inventories

(c) Relatively higher reliance on trade credit.

In line with these observations, he suggested policies to

scrutinize credit claims vigorously and relate credit to the genuine production
requirements so that funds are not tied up with these large borrowers.

K.S.R.ROA:

Carried out an econometric exercise on the determinants of demand for bank

credit of some selected industries for the period between 1970-71 and 1984-
85. He observed that output of these industries was the most important factor in
determining its demand for bank credit whereas, interest rate of banks and
relative rate of interest of other sources of borrowing played only a secondary
role. Price of output was also found to have affected the demand for credit
significantly. The relative interest rate variable was significant with respect to
industries like textiles, engineering and total manufacturing, while it was not
significant for industries like sugar and other food products and chemicals.

DIVATIA AND SHANKAR:

In their paper discussed the role of internal and external sources of funds and
their components in financing capital formation of the private corporate sector.
The study was based on the RBI company finance studies relating to medium
and large public and private limited companies and Covered the period 1961-
76. They also discussed the trends and patterns of financing for four
individual industries, viz, cotton textiles, jute, sugar and cement.

S. ADVE.:

Had some interesting findings in his article "Financial Practices in Indian

Corporate Sector," based on the RBI company finance data. He underlined
the rising dependence on borrowed capital in relation to the total capital
employed in the Indian corporate sector. Trade credit was pointed out to be
important sources of capital when the bank credit was squeezed. Making an
industry-wise analysis, the author came to the conclusion that the industries
with large profit margins and those with large depreciation and development
rebate reserves had a relatively lower order of overall indebtedness and
many of them also had a lower order of bank borrowings in relation to overall
indebtedness. Industries with high profit margin such as silk and rayon
textiles, aluminum, basic industrial chemicals and medicine and
pharmaceutical preparations had lower proportion of borrowed funds as
compared to the average of the medium and large public Ltd. companies.
L.S.GUPTA:

The extensive study viewed that the growth of institutional finance emerged
in lndia due to structural change for industrial financing system with wide
change of socio-political situations in lndia. He attempted to measure overall
impact of financial institutions on capital formation in the organized private
sector as also the allocate efficiency of financial system. He observed that
during the first plan financial assistance rendered by special institutions
represented only 4.1 per cent of gross fixed investment in private industry,
which rose to 7.9 per cent in the second plan and further to 18.1% in the
third plan period. He also found that commercial banks remained the most
important single agency for financing the private corporate industry and LIC
was the single largest purchaser of industrial securities and the underwriter
of new issues of large and established companies.

M.S.JOSHI:

The role of financial intermediaries in providing finance to large-scale

industries in the private sector. After analyzing the contribution of each
important intermediary towards industrial development in India, he estimated
that these intermediaries have participated with 17% of investment in various
Industries against 39% in share capital of public Ltd. companies.
 5.) RESEARCH PROBLEM

Research Problem
The research is that the income level affected to borrower to take a loan.

6.) RESEARCH OBJECTIVE

1. To be acquire practical knowledge about loans and advances from

Jivan Commercial co-operative Bank.

2. To be acquire in-depth knowledge about requirement & interest of

loans and loans of different customer group.

3. To be investigate perspective and preference of individual (customer)

of Jivan Commercial Co-operative Bank.

4. To be aware of different type of loans provided by the bank.

5. To be aware about the customer satisfaction for the particular service

taken from the Jivan Commercial Co-operative Bank.

6. To be study about the respondent and their varying interest.

7.) HYPOTHESIS

The hypotheses of the study are as follow

H0: amount of loan is independent of income of customer

HA: amount of loan is dependent of income of customer

1. Ho: µ=µ1
2. Ha: μ≠μ
3. Ha: µ<µ
4. Ha: µ>µ
 ReseaRch

methodology

8.) RESEARCH METHODOLOGY

Primary data:

Primary data are those which are collected for the first time. I have taken
some information about JCCB by discussing with Loans and Advances
department of the bank. I have done data analysis through filling
questionnaire from customer and employee.

Secondary data:

Secondary data are those which are already been collected for some other
purposes. I have taken the secondary data from internet and from a book
"Guidance note on audit of books.” I have also done data analysis on the
basis of this secondary data. I have compared the interest rates of various
banks with JCCB to fulfill my objectives.

8.2) SAMPLING PLAN

In practical life, it is not possible to enumerate, investigate and estimate all
items in any field inquiry. Therefore when the field of inquiry is large, a
complete enumeration of Universe (population) becomes difficult and
complicated. At that time, researcher should select ‘sample’ out of total
population which represent the most characteristic of population.

Consequently, Researcher must prepare a sample plan for selecting an

opposite sample. In this research, sample was selected as 100 customers of
Jivan Commercial Co-operative Bank from different branches of city.

Population Size-

In these the customer as well as employee of JCCB is counted which is part

of these.

Sample Size

This research is conducted by taking preference of 100 customers as well as

of Jivan Commercial Co-operative Bank. It is convenience sampling because
this Questionnaires was distributed randomly to all the customers.

SAMPLING METHOD:

I have to use convenience sampling method to analysis of market research

and percentage of investment is dependent of loan taken or independent of
income level.

Sampling Procedure

Non-probability
 9.) Data analysis and interpretation
Occupation of Loan Borrower
. What is your the occupation?
□ Business man □ Employee
□ Profession □ Retired person
Type of occupation No. of customer
Businessmen 27
Employee 42
Profession 19
Retired person 12
Total 100

Occupation Of Loan Borrower

45

40

35

30

No. of Customer
25

20

15

10

0
Businessmen Employee Profession Retired person

Type Of Occupation
 In this question, we know that, in different class of occupation who take more
loan in these group. in above chart we can see that the employees are 42%
means the employees are more take a loan as compare to other group of
like businessmen ,Profession and Retied Person are as 27%, 19% and 12%.

Age group of loan borrower

What is your age?

□ 18 to 35 year □ 35 to 60 year □ 60 to 90 year

Age group of customer No. of customer

18-35 year 30
35-60 year 48
60-90 year 22
Total 100

Age Group Of Loan Borrower

60

50

40

No. of Customer

30

20

10

0
18-35 year 35-60 year 60-90 year

Year

In this research on loan and advances, classified the different age group and
knowing that who take a more loan. In above chart we can see that the 48%
people are those who age is 35 to 60. 30% people are those who age is 18
to 35 year and 22% are those who age group is 60 to 90 years.
 Income Level of Loan Borrower
. What is your the income level per annum?
□ more than 10 laces. □ Between 5 & 10 laces.
□ Between 2 & 5 laces. □ Up to 2 laces.

Income level of customer No. of customer

Up to 2 laces. 23
Between 2 & 5 laces. 44
Between 5 & 10 laces. 21
More than 10 laces. 12
Total 100

Income Level Of Loan Borrower

50

45

40

35

30
No. of Customer

25

20

15

10

0
Up to 2 laces. Between 2 & 5 laces. Between 5 & 10 laces. More than 10 laces.

Income Level Of Customer

In this question, the incomes of borrower are identified. In these, the persons
whose incomes are between 2 to 5 laces are 48% means its take more loans
then after whose income level is up to 2 laces are 23%,the income of between 5
to 10 laces are 21% and who income is more than 10 laces is 12%.
 Behavior of Staff Member
What is the behavior of staff members?
□ Excellence □ Good
□ Adequate □ Average
□ Unsatisfactory

Behavior No. of customer

Excellence 23
Good 36
Adequate 17
Average 14
Unsatisfactory 10
Total 100

Behavior Of Staff Member

40

35

30

25
No. of Customer

20

15

10

0
Excellence Good Adequate Average Unsatisfactory

Behavior

To use these type of question in research, to know the behavior of staff

member. In these research 36% people are say that the behavior of staff is
good. 23% people are saying that the behaviors of staff are Excellent.14%
people are saying that the behaviors of staff are Adequate. In these ways the
14% and 10% are those who said that the behaviors of staff are Average and
Unsatisfactory.
 Time Period of Loan
Time period of loan No. of customer
1 to 3 year 18
3 to 8 year 33
8 to 15 year 28
15 to 25 year 21
Total 100

Time Period Of Loan

35

30

25

No. of Customer 20

15

10

0
1 to 3 year 3 to 8 year 8 to 15 year 15 to 25 year

Year

The customer whose take a loan in the bank is mostly time period 3 to 8
years. In the above chart, clarified that the person whose take a loan for 3 to
8 year is 33%. And then after the person who takes a loan of 8 to 15 year
are 28%. The people who take a loan of 15 to 25 years are 21% and the last
the person who take a loan of 1 to 3 years are 18%.
 Another Loan from Rival Bank
Which is another bank from you borrowed other loans?
□ UBI □ ICICI □ HDFC
□ AXIS □ BOB □ OTHER
□ NO ANOTHER LOAN

Bank name No. of customer

UBI 12
ICICI 8
HDFC 14
AXIS 6
BOB 15
ANOTHER LOAN 7
NO ANOTHER LOAN 38
Total 100

Another Loan From Rival

UBI, 12

ICICI, 8

NO ANOTHER LOAN, 38

HDFC, 14

AXIS, 6

ANOTHER LOAN, 7
BOB, 15

In these chart we seen that the 38% are those not take a loan from another
bank then after 15% are those whose take a loan in BOB. in theses way the
borrower are also take a loan to different bank. In these 7% are those who
take a loan from other bank.
 Qualification of Customer
What is your education qualification?
□ Up to HSC □ Up to Graduation
□ Up to Post Graduation □ More than post graduation

Qualification No. of customer

Up to HSC 37
Up to Graduation 32
Up to Post Graduation 19
More than post graduation 12
Total 100

Qualification of Customer

40

35

30

25
No. of Customer

20

15

10

0
Up to HSC Up to Graduation Up to Post Graduation More than post graduation

Qualification

These chart is defined the qualification of customer. In these chart, customer

who education level is up to HSC are 37%, education level is graduation are
32% the education level is up to post graduation 19% . and other 12% are
those who education level are more than post graducation
 Maximum Extent to Take Loan
What is your maximum extent to take loans?
□ Less than 100000□ between 100000 & 500000
□ Between 500000 & 1000000 □ More than 1000000

Extent Level No. of Customer

Less Than 100000 12
Between 100000 to 500000 31
Between 500000 & 1000000 38
More than 1000000 19
Total 100

Maximum Extent To Take Loan

40

35

30

25
No. Of Customer

20

15

10

0
Less Than 100000 Between 100000 to 500000 Between 500000 & 1000000 More than 1000000

Loan Amount

In these chart, the amount of loan is given. In these, the loan amount of
Rs.1,00,000 to 5,00,000 is more means the 38% customer are those whose
take a loan of amount 1 to s laces. Then after 31% customer are those
whose take a loan of amount of Rs. 1,00,000 to 5,00,000.then 19% are take
a loan of more than 10,00,000. then 12% are those whose take a loan of
less than Rs.1,00,000.
 10.) HYPOTHESIS TESTING

Step-1 hypothesis

H0: extent amount to take loan is independent of income

HA: extent amount to take loan is dependent of income

Step-2: Calculated value chi- square test

Data collected through questionnaire is as below

Level of income
Extent amount to Up to 2 Between Between More Total
take loan laces. 2 & 5 5 & 10 than 10
laces. laces. laces.
Less than 100000 8 3 1 0 12
between 100000 & 10 16 4 1 31
500000
Between 500000 & 5 15 13 5 38
1000000
More than 1000000 0 10 3 6 19
Total 23 44 21 12 100

Expected Frequency
(Row total*column total)/n
Extent amount to Up to 2 Between Between More
take loan laces. 2 & 5 5 & 10 than 10
laces. laces. laces.
Less than 100000 2.76 5.28 2.52 1.44
between 100000 & 7.13 13.64 6.51 3.72
500000
Between 500000 & 8.74 16.72 7.98 4.56
1000000
More than 1000000 4.37 8.36 3.99 2.28
 Chi-square calculation

No. Observed Expected Fo Fe Fo-Fe (Fo-Fe)2 fo-fe2

Frequency Frequency /fe
1 8 2.76 8 2.76 5.24 27.46 9.95
2 10 7.13 10 7.13 2.87 8.24 1.16
3 5 8.74 5 8.74 -3.74 13.99 1.60
4 0 4.37 0 4.37 -4.37 19.10 4.37
5 3 5.28 3 5.28 -2.28 5.20 0.98
6 16 13.64 16 13.64 -2.36 5.57 0.41
7 15 16.72 15 16.72 -1.72 2.96 0.18
8 10 8.36 10 8.36 1.64 2.69 0.32
9 1 2.52 1 2.52 -1.52 2.31 0.92
10 4 6.51 4 6.51 -2.51 6.30 0.97
11 13 7.98 13 7.98 5.02 25.20 3.16
12 3 3.99 3 3.99 -0.99 0.98 0.25
13 0 1.44 0 1.44 -1.44 2.07 1.44
14 1 3.72 1 3.72 -2.72 7.40 1.99
15 5 4.56 5 4.56 .0.44 0.19 0.04
16 6 2.28 6 2.28 3.72 13.84 6.07
x2c 33.81
Step-3: Degree of freedom

Level of significance 5%

Degree Of Freedom is (n) & 5% level of significance

(16) & 0.05 level of significance

Step-4: Table value

Table value at 16 D.O.F and 0.05 level of significance is 0.04 (lower

bound) and 9.95 (upper bound)

Step-5: conclusion

Xcal > Xtab

(33.81) > (9.95)

H0 is rejected.

Thus extent amount to take loan is dependent of income level of customers.

 11.) SUGGESTION

►The bank can introduce advance technology for banking and should give
attention to Manpower time to time.

►The bank can promote confidence and commitment among the staff
members, to address the expectations of the customers efficiently and
handle technology banking with simplicity.

►The bank can take steps to forecast the changing financial need of
customer of different type of group and banking accordingly.

►The bank can identify the reason of few unsatisfied group of customer and
should take steps to eliminate their problems and grievances.

►The bank can put together all it hard work to bring more responsiveness
and awareness to customers.

12.) RESEARCH FINDING

→I found that customer is more preferring or favoring personal loan because
it is easily available.

→30% customers prefer education scheme.

→customers are satisfied with services & other banking facility provided so
they are ready to deal but then also the bank is working in very sound
condition in every situation.

→70% of customers belongs to services & agriculture in this area farming is

the main occupation as well as young people are also going for small wage
jobs in the urban area.

→the customer ratio of urban & rural area are 2:3 means 40% customers
are from urban & 60% customers are from rural area.
 13.) CONCLUSION

After having all the required information for preparing my

report, I have tried to analyze each and every function of the JCCB. During
my report all the staff member of the JCCB had well co-operate me. And also
I have found that the there is a very good level of commitment in all the staff
members. During my report I have try to cover each functional area related
to the bank and specially loan department.

After having clear idea about everything In the bank, I can

conclude that the JCCB is one of the leading firm in the co-operative and
commercial sector, and with advanced technologies and educated staff to try
to positioning in the banking market. But than also due to such weaknesses
of co-operative sector JCCB bank is also suffering from such limits.

So, at last we can conclude that the JCCB is being leader in

the market & bank is getting great goodwill in the market and also great
goodwill of the other director helps to the bank in creating good image in the
field of the bank.

14.) LIMITATION OF THE STUDY

1. On account of time constraint whole spectrum of long term lending

practices was not possible.
2. Inaccurate and inadequate information might have resulted to wrong
interpretation.
3. Only a very few no. of respondent were interviewed to get the
information.
4. Accounting information is another constraint.

5. Many time customers are not ready to give private information to the
researchers.
 15. IMPLEMENTATION OF THE STUDY

The above study can be helpful to the bank in various ways. Through these
research, the bank know that customer as well as employees are satisfy with
the service which provided by bank.

Due to these research, the customer as well as employee needs are knowing
and then implement that so that the more customer are join and firm are grow
up easily. To know current position of the bank and how to implement the
various service who aspect by the customer as well as employees.

16.) SCOPE OF THE STUDY

1. The study is mainly concentrated on the lending practices pattern and

influence in the organization performance.

2. Enables the company to know its current position.

3. The study helps in ascertaining people’s response on bank lending

4. To be aware about the customer requirement.

17.) BIBILIOGRAPHY
 For preparing this project report, I have taken guidance from
various sources which are as follows:

1. BOOKS &JOURNALS:

►PADMANATHA SURESH & JUSTIN PAUL, “MANAGEMENT OF

BANKING AND FINANCIAL SERVICES”, PEARSON EDUCATION
PUBLISHING PVT, DELHI, THIRDEDITION, 2010.

► VASANT DESAI,”THE INDIAN FINANCIAL SYSTEM AND

DEVELOPMENT”,
HIMALAYA PUBLISHING HOUSE, MUMBAI, SECOND REVISED EDITION,
2010

► C.R.KOTHARI,”RESEARCH METHODOLOGY”, NEW DELHI, NEW AGE

INTERNATIONAL LIMITED, SEVANTH EDITION 2010

2. by Searching Sites:
www.jccb.com

3. BROCHURES OF JIVAN COMMERCIAL CO-OPERATIVE BANK