Project Report MBA

PROJECT REPORT
ON
WORKING OF PATIALA CENTRAL COOPERATIVE BANK LTD
PATIALA (PUNJAB)
Submitted in partial fulfillment of the requirement for the
Degree of
MASTERS OF BUSINESS ADMINISTRATION
(2007- 2009)
Under the supervision of
Sh Rakesh Kumar Goel
Sr Manager
Submitted by:
Yogesh Garg
Roll No: 7002220120
MBA-2nd Year
Bhai Gurdas Institute of Engg & Technology
Sangrur
ACKNOWLEGEMENT
On completion of my project work I want to thank all the employees of

The Patiala Central Co-Operative Bank Ltd. (Patiala) for their co-operation in
successfully completion of the project work on P.C.C.B Patiala. I want to thank
particularly Sh.Rakesh Kumar Goel Senior Manager, The Patiala Central
Cooperative Bank Ltd., Patiala for giving me the actual knowledge about the
successful banking & giving me time out of this precious time. I am also very
thankful to the other employees who gave me support in completion of my
project.
Yogesh Garg
Roll. No 7002220120
MBA- 2nd Year
BANK
In simple words a Bank refers to an Institution that deals in money &

credit. Banks are the main center of business & commerce. Banks kept important
role in the economic condition of all the countries of the world.
The word Bank comes from the word Bancus or Banque which mean is
Bench. In the words of kindly, Bank is an Establishment that make such advances
of money or other means of payments as may be required and safety made to
which individuals interest money or means of payments when not required by
them for use.
According to Banking regulation act 1949, For the purpose of lending or
investment, accepting of deposits of money from the public, repayable on demand
on otherwise and withdraw by cheque, draft, order or otherwise.
FUNCTIONS OF A BANK
A tree is known by its fruits as well as Banks known by his

works. Banks have done so many other important functions instead of depositing
& lending money. Banks functions are divided into two parts: -
Primary & Banks function
Secondary & helping function
PRIMARY FUNCTIONS
 Depositing Money
 Lending Money
DEPOSITING MONEY:
MONEY: - Its deposited by three ways for opening a:
 Fixed deposit a/c
 Saving deposit a/c
 Current deposit a/c
LENDING MONEY:
MONEY: - Money lending to needy person in following ways: -
Bank gave loans to customers of bank in following ways:
 Loans
 Cash credit
 Overdrafts
 Purchasing & discounting of bills.
SECONDARY FUNCTIONS
 Agency functions
 Utility functions
AGENCY FUNCTIONS : - Banks done many work to his customer as an agent.
These are as follows: -
 Collection of cheques, bills & interest etc.
 Payment of Insurance premium other Installments.
 Purchase & sale of securities.
 Transfer of funds
 Acting as a trustee, executor or attorney.
 UTILITY SERVICE : - Bank gave services to society. Its those services are
as follows: -
 Safe custody of valuables securities.
 Issuing letter of credit, travelers cheques.
 Accepting Bill of Exchange.
 Providing Trade information.
 Dealing in foreign exchange.
 Advice on financial matters.
 Giving information about credit worthiness of customers
 Financing foreign trade
 Credit creation
 Underwriting of capital issues & loans.
IMPORTANCE OF A BANK
 SAFETY OF MONEY:
The money with the bank remains in safe custody there is always risk
in keeping cash with ones own self. It may be lost or stolen. Business man like to
keep money with a bank to avoid risks of money the customer need not keep large
some of money.
 IT CULTIVATES HABIT OF SAVING:
Banks cultivates the habit of saving in the Bank on the one hand are
safe and on the other earned interest for the depositor who prompted to safe and
deposit money in their banks accounts.
 FINANCIAL HELP TO CUSTOMER:
Banks allows overdraft facilities to their customer so whenever a
customer needs money he can even withdraw more money then the balance in his
account. Bank also grants loans and credit facilities to their customers.
 SAFE CUSTODY OF VALUABLE ARTICLES :
Valuable articles deals security etc. can also be deposited in the bank
for safe custody. Safe deposit vaults are provided by bank for storing these
valuables.
 OTHER INFORMATION:
By opening an account with a bank, the customers may also take
advantages of various other services providing by the banks, such a purchase and
sale of securities, travelers cheque etc.
RELATIONSHIP BETWEEN BANKER & CUSTOMER
Instead of secondary functions banks gave some other

important services to his customers. The main function of banker & customer is as
Debtor & Creditor. Banker works as an agent & also a trustee of his customer.
KINDS OF BANKS
 Commercial banks
 Industrial banks
 Agricultural banks
 Exchange banks
 Post office saving bank
 Indigenous bankers
 Regional rural bank
 Import export banks
 National bank to agriculture & rural development (NABARD)
 State bank of India
 Reserve bank of India
ORIGIN AND GROWTH OF CO-OPERATIVE BANKS

Co-operative banks are a part of the vast and powerful superstructure of co-
operative institutions which are engaged in the tasks of production, processing,
marketing, distribution, servicing and Banking in India. The beginning of co-
operative banking in this country dates back to about 1904 when official efforts
were initiated to create a new type of institution based on the principles of Co-
operative organization and management which were considered to be suitable for
solving the problems peculiar to Indian conditions. In rural areas, as far as
agricultural and related activities were concerned, the supply of credit, particularly
institutional credit, was woefully inadequate, and unorganized money market
agencies, such as money lenders, were providing credit often at exploitatively
high rates of interest. The co-operative banks were conceived in order to
substitute such agencies, provide adequate short-term and long-term institutional
credit at reasonable rates of interest, and to bring about integration of the
unorganized and organized segments of the Indian money market. When the
national economic planning began in India, co-operative banks were made an
integral part of the institutional framework of community development and
extension services, which was assigned the important role of delivering the fruits
of economic planning at grassroots levels. In other words, they became a part of
the arrangements for decentralized plan formulation and implementation for the
purpose of rural development in general and agricultural development in
particular. Today co-operative banks continue to be part of a set of institutions
which are engaged in financing rural and agricultural development. This set-up
comprises the RBI, NABARD, commercial banks, regional rural banks, and co-
operative banks. The relative importance of co-operative banks in financing
agricultural and rural development has undergone some changes over the years.
Till 1969, they increasingly substituted the informal sector lenders. After the
nationalization of banks and the creation of RBI and NABARD, however, their
relative share has somewhat declined. All the institutional Sources contributed
about 4 percent of the total rural credit till 1954. The contribution increased to 62
percent by 1990. The share of co-operative banks in this institutional lending has
declined from 80 percent in 1969 to about 42 percent at present. The percentage
of rural population covered by the agricultural credit co-operatives was 7.8 in
1951, 36 in 1961, and about 65 percent at present.
THE PATIALA CENTRAL CO-OPERATIVE BANK LTD., PATIALA
BRIEF HISTORY: -
The P.C.C.B. Ltd., Patiala was registered on 29-09-1949 under the Co-
Operative Societies Act, 1912.
The Bank is presently working in 59 year.
THE PATIALA CENTRAL CO-OPERATIVE BANK LTD.

HEAD OFFICE, PATIALA.
 Name of the Society: - The Patiala Central Cooperative Bank Ltd

(Institution)
 Registration No. & Date: - No.772, 28th Sept. 1949.
 Area of Operation :- As per bye-law no. 3, the

Area of operation of the
Bank shall extend over
Patiala District.
 Object of the Bank :- As per bye-law no. 4,the
Object of the Bank is to
Facilitate the operation of
The affiliated Co-Operative
Societies by: -
 Providing banking & credit facilities to its members, as
convenient & easy terms are possible.
 Encouraging thrift & saving amongst its members by
offering suitable facilities.
 Making arrangements for supervision and inspection of its
affiliated cooperative Societies.
 Undertaking such measures as are conductive to the spread
of co-operative education and training.
GENERAL
Under the Indian Co-operative Societies Act-1912 of the P.C.C.B.

with registration No.776 on 28-09-1949 by the Registrar Cooperative Societies
PEPSU. Although the old by laws do not mention the area of operation of the
Bank. The copy of the Application submitted for its registration show Sangrur
and Patiala district as area of operation of this bank. The amendment registered
on 9/12/1980 specified Patiala district as area of operation of the bank. With the
creation of new district of Fatehgarh Sahib and SAS Nagar Mohali, Sirhind,
Bassi Pathana and Dera Bassi blocks were transferred to that districts. There are
8 blocks Patiala, Bhunerheri, Samana, Patran, Nabha, Rajpura, Ghanour,
Sanour. And 5 sub-divisions namely Patiala, Nabha, Samana, Patran & Rajpura
in the District.
At present Patiala District has 974- villages with 3,70000

hectares of land and with a population of approximately 6,00,000.
.
RESOURCES
The bank resources is collection of share capital, strengthening
of its owned funds, by topping deposits from the public and borrowings from
NABARD, Punjab State Cooperative Bank Ltd., Chandigarh.
The main resources of the bank as on 31/03/2008 as under
Share Capital Rs. 966.23 lacs

During the year 2007-08 membership of the bank is 900 having share capital of Rs
876.23 lacs and Punjab Govt share is Rs 90.00 lacs.
Own Funds Rs 5239.28 lacs
Banks detail of funds is as under:-
a) Statutory Reserve 750.03 lacs
It is a free reserve which can be utilized for any purpose or expenditure.
It comes 25% out of net profit of the bank as passed by general body of
the bank.
b) Bad & Doubtful debt fund Rs 1062.71 lacs

It can be utilized for the wipe out the bad assets and loss on one time settlement
scheme of the PACS and bank direct loans. It comes out of 35% Net profit of the
bank.
c) Agriculture credit stabilization fund Rs 501.45 lacs

It comes out 15% of the net profit of the bank and 3% interest credited
in this account. It can be for purpose of conversion of short term agriculture
purpose into medium term purpose and the remaining amount have to be invested
in securities account under the lien (amount for ACSF)
d) Building funds Rs 106.32 lacs

It can be used only for building repairs upto Rs 3 lacs per year joint registrar
Cooperative societies Patiala is competent to allow to create assets as building
account and above Rs 3 lacs all bills are to be forward to the Registrar cooperative
societies Chandigarh. Building fund is increased out of
Profits after making reserves as per Registrar cooperative societies, as passed by
general body of the bank.
e) Cooperative education and propaganda fund Rs 41.71 lacs

It is created maximum 2% or Rs 1 lac out of the net profit of the bank.
f) Common good fund Rs 92.22 lacs

It is created 5% out of the net profit of the bank. It can be used with the
approval of RCthe previous years 2003-04 & 2004-05.
It is utilized to wipe out imbalances of the PACS.
g) Primary vikas fund Rs 50.52 lacs

It is created 3% out of the net profit of the bank.
h) Cooperative development fund Rs 33.99 lacs

It is created 1% out of the net profit of the bank
i) Pension fund Rs 14.69 lacs

It is created 2% out of the net profit of the bank, for the welfare of their
employees and transfer to the state cooperative bank for credit to the
Punjab state cooperative bank employees pension fund trust saving
bank account.
j) Share transfer fund Rs 25.20 lacs

It is created to redeem the Punjab Government share.
k) Gratuity fund Rs 296.78 lacs

It is created for the welfare of the employee to make payments on
retirement of their employees as per gratuity act.
l) Provision against non performing assets Rs 1085.70 lacs

NPA provisions are made as per RBI guidelines.Cooperative banks
Start this provisioning from the year 1996-97
m) Dividend equalization fund Rs 66.89 lacs
Deposits Rs 27943.61 lacs
The main resources of the bank is deposits. There are various schemes of deposits
Namely :-
* Current Deposits
* Savings Bank Deposits
* Fixed Deposits
* Long Term Re-investment Deposits
* Recurring Deposits
The data of the last three years of the deposits is as under:
Deposits Time-wise
Outstanding Outstanding Outstanding Growth Rate Growth Rate
As on As on As on (31/03/06 To (31/03/07 To
31/03/2006 31/03/2007 31/03/2008 31/03/2007) 31/03/2008)
Dem. Deposit 12353.13 11571.49 11327.18 -6.33 -2.11
Time Deposit 13054.68 12455.11 16616.43 -4.59 33.41
TOTAL 25407.81 24026.60 27943.61 -5.44 16.30
Deposits Source-wise
Source-wise Outstanding Outstanding Outstanding Growth Rate Growth Rate
Deposits As on As on As on (31/03/06 To (31/03/07 To
31/03/2006 31/03/2007 31/03/2008 31/03/2007) 31/03/2008)
Individuals 21390.68 20358.00 23892.84 -12.79 17.36
Coop.
1668.97 1553.68 1713.32 -9.55 10.27
Societies
Other Sources 2348.16 2114.92 2337.45 -362.73 10.52
Average Deposits: To be calculated on monthly outstanding balances basis

During During During 01/04/07 Growth Rate Growth Rate
31/03/05 to 01/04/06 to Average Deposits : (31/03/06 To 31/03/07 To
31/03/2006 31/03/2007 To be calculated on 31/03/2007) 31/03/2008)
monthly outstanding
balances basis
31/03/2008
Avg. Deposit 22865.81 23842.27 24972.12 4.27 4.74
Deposit Accounts
01/04/2005 to 01/04/2006 to 01/04/2007 to
31/03/2006 31/03/2007 31/03/2008
Deposit A/cs at the beginning 156420 180306 161525
of the year
Deposit A/cs opened during 35078 22329 11667
the year
Deposits A/cs closed during 11192 41110 19682
the year
Deposits A/cs at the close of 180306 161525 153510
the year
No.of Sehkari Bima yozna 2121 2006 1725
A/cs opened during the year
Rate of Interest on Deposit
Existing Rate New Rate

Upto 03/07/2008 w.e.f 04/07/2008
Saving Bank 3.50% 3.50%
Fixed Deposits maturity period
15 to 45 days 5.50% 4.75%
46 to 90 days 5.50% 5.25%
91 t0 179 days 7.25% 7%
180 days but less than 1 year 7.50% 8%
1 year but less than 2 year 8.75% 9.50%
2 year but less than 3 year 8.50% 9.25%
3 year and above 8.25% 9%
Opening of bank account the bank has printed their own account
opening form in which the depositor has to fulfill ll all the data in account
opening form .Account can be opened and operated Self only jointly either or
survivor former or survivor anyone or survivor. Any other with the specimen
signature and photo of each applicant bank has allowed in these accounts
Nomination facilities on the prescribed form DA -1 under section -45ZA of
banking regulation Act 1949 after obtaining proper identification of the customer
& introduction of existing customer with address after obtaining the one photo
and document from below list of ID proof
Election ID card ID card of reputed employer
Driving License Electricity Bill
Pan Card Telephone Bill
Pass port Salary Slip
Government/ Defence Income/ Wealth Tax
ID card Assessment Order
Saving Bank Accounts:

In the ledger account opened under the serial no of the customer with his/ her fathers/
husband name with complete address. An account is allotted in the ledger, mode of
signature filled in the ledger . S.B account is opened with minimum amount of Rs 500
in cash except no frills account which are opened with Rs 5. A pass book is issued to
the customer. If he wants a cheque book, the same is issued to the customer free of
cost after getting signature in the cheque book issue register. With drawl form bank
has made facility upto Rs 40000. On presentation of pass book must with the with
drawl form duly signed by the account holder.
Maintaining of deposit register and files
The Mall Branch of bank is fully computerized. The other branches are maintaining the
following ledgers, registers & files.
a) Account opening form register
b) Specimen signature file
c) Cheque book issue register
d) Loose cheque issue register
e) Nomination register
Rate calculation of interest:
The interest in saving bank account is calculated on monthly
product. The lowest balance in account on one day between 10 th and last day of each
calendar month on every completion of Rs 10 is taken as product for the month and the
total products for six months is arrived at. No interest should be paid if the interest is
less than Rs 5. Interest is to be rounded of nearest rupee if the paise involved are 50 or
more it should be rounded of to the next higher rupee if paise involved are less than 49
the paise is ignored
------------------------------------------------------------------------------------------------------
Month Minimum balance Product
------------------------------------------------------------------------------------------------------
April 2513.13 2510
May 3950.50 3950
June 113.00 110
July 119.75 110
August 4899.00 4890
September 5805.10 5800
Total Product 17370
The formula of interest calculation is Total Product * Rate of interest/1200
Hence the interest is 17370 * 3.5/1200 = Rs 50.66 interest so calculated is credited

in this account with Rs 51 upto 10th of October. The voucher at branch level is
prepared as
Debit: Interest paid on deposits Rs 51

Credit: Saving Bank account Rs 51
Inoperative Accounts Separate Ledger
All the S.B account in which there is no operation for the last three years must be
separated from operative accounts and separate ledgers are to be maintained for this
purpose.
Similarly all saving bank accounts which have not been operated for the last 10 years,
Should be transferred to unclaimed deposits as per section 26 of Banking Regulation Act
1949. For detail procedure to be adopted to separate these accounts.
SEHKARI BANK BIMA YOZNA
Individual in the age group of 10-70 years opening saving bank account are eligible to join
the scheme.
Minimum Balance
The minimum balance of Rs 1000 is to be maintained in the account with no maximum

ceiling. Cheques issued on the account violating minimum balance stipulation are liable
to be dishonoured by the bank.
Nomination Facility
This facility for deposit account is available and is restricted to one individual only.
Nomination shall be made preferably at the time of opening of the account. Nomination
Can be cancelled or changed at any time. Nomination for bank deposit and insurance
scheme shall be the same.
Sehkari Bank Bima Yojna Register
As and when any member opens new account or existing

member adopts the scheme, his name shall be entered into the Sehkari Bank Bima Yojna Register
maintained at the bank/ branch.
Statement to Head Office
The branches shall send the statement along with draft/advise to

the head office about the accounts opened under the scheme during the month. The head
office of the bank shall collect the information of all the branches, consolidate it and
shall submit the same to the Punjab State Cooperative Bank Ltd. atleast two days before
the last day working of the month for onward submission to the insurance company.
Insurance Cover
Persons joining the scheme are provided with accident insurance cover
under the Group personal accident insurance policy of the General Insurance Company
and the following risks are covered.
a) Death Rs 100000.00
b) Permanent total disability Rs 100000.00
c) Loss of 2 eyes/feet/hands Rs 100000.00
d) Loss of 1 eye/foot/hand Rs 50000.00
Insurance Premium
The insurance premium including service charges determined by the bank from time to time
shall be debited to the account of the individual on the date of its opening and subsequently
on the date determined by the bank every year towards the insurance premium and banks
service charges. In case of premium is not remitted by the bank due to lack of sufficient
funds/ balance in the account or for any other reasons beyond the scope of the bank,
insurance cover will not be available as stated above.
Procedure for Claim
Immediately after the happening of the accident it should be informed by the claimants to the
Concerned branch of the bank where the depositor is maintaining the account and nearest
branch of the insurance company. Claim form can be obtained from the bank branch or from
the branch of the company and are to be submitted to the insurance company through the
branch.
Disposal for claim:
The claim shall be disposed off as early as possible and the claim shall
be made to the bank for disbursement to the nominee in case of death or to the depositor in
case of disablement.
Documents required with claims:

The following documents should be submitted along with the claim form.
a) In case of death
1. Death certificate
2. Post mortem report
3. Copy of first information report
4. Name of the nominee
5. Any other relevant document
6. Premium remittances confirmation from the bank
b) In case of disablement
1. Photograph of the disabled showing disability.
2. Disability certificate issue by the doctor
3. Police report/ report from Sarpanch of village or Lambardar
4. Any other relevant document.
5. Premium remittances confirmation from the bank
FIXED DEPOSIT AND LONG TERM DEPOSIT

Fixed Deposit
Fixed Deposit is a deposit scheme wherein a depositor agrees to receive back

the principal amount after a specified period agreed to at the time of deposit.
Interest may be received by him either periodically or at maturity. Fixed
Deposit can be opened for any amount subject to minimum of Rs1000/-
Long Term Deposit
Long term deposit is a deposit scheme wherein a depositor agrees to receive back
the principal amount together with interest accrued after a certain period agreed
at the time of deposit. Interest earned thereon under this scheme is reinvested
at quarterly rests to yield compound interest. Long term deposit accounts are
opened with minimum amount of Rs1000/-. The minimum period of deposit is 2
quarters ( 6 months).
Account opening form
The requirement for opening a Fixed Deposit/ Long term deposit with respect to
account opening form, introduction, photographs, specimen signature,
requirement
of income tax authorities, staff accounts, nomination secrecy.
Payment of interest quarterly
In case of Fixed Deposit, the customer may get payment of interest when it
accrues at every quarter. The instruction to this effect, if customer desires so,
be obtained on the account opening form as Please credit the interest accrued
every quarter to my Saving account/ Current account/ Recurring Deposit “.
Another term deposit in case of existing term deposit account where the customer
account Fixed Deposit or Long term deposit is already running he needs not
required to open another corresponding account while depositing money for
another fixed deposits or long term deposit. The customer needs to fill up pay-in-
slip while depositing money writing wherein his Fixed deposit account number or
Long term deposit account number, as the case may be. In this case account
opening form will not be required to fill up again by the customer.
ISSUANCE OF FIXED DEPOSIT/ LONG TERM DEPOSIT RECEIPT
Preparation of credit voucher and receipt for Term Deposits
The depositor should remit cash through the pay-in-slip provided by the bank
along with application for opening the deposit account. While writing the receipt,
the following particulars should be included.
1. Date to be mentioned in Term Deposit Receipt

While writing the date of issue of the Term Deposit Receipt, the numeral of date,
month & year should be written legibly in the place provided for.
2. Name to be mentioned on Term Deposit Receipt

The name of depositor should be written in full term on Term Deposit Receipt. In
case of joint accounts, names of all joint depositors should be written.
3. Period of deposit on Term Deposit Receipt
Period of deposit should be written in term of months instead of years and for a
period below 12 months, it should be written in term of days instead of months.
4. Rate of Interest on Term Deposit Receipt

The rate of Interest applicable for the period of deposit should be written
legibly in the space provided for. The latest circular from Head Office regarding
current interest rates should be refereed.
5. Due Date
Due Date should be correctly calculated and written. When due date falls
on bank holiday, the amount is to be paid on next working day. In all such
cases, interest for the holiday involved at the contracted rate should also be paid.
If the month in which the deposit becomes due does not have the date
corresponding to the date of deposit the last day of the month will be the due date.
Thus, the due date for Fixed Deposit Receipt for 18 months issued on 31 st August
1998 would be 29th February 2000. However, in case the period of deposit had
been expressed in terms of days and not months, the due date should be calculated
as per the following rule:
1) Calculated days and not months. If February of that year has 29 days, calculate
for 29 days ( not 30 days).
2) Include date of deposit
3) Exclude the date of payment, take the next date
Example: The due date for Fixed Deposit Receipt dated 04.10.1999 for 91 days
should be Calculated as under:
October 1999 (04.10.1999 to 31.10. 1999) 28 days (including date of deposit)-
Rule (2)
November 1999 30 days Rule (1)
December 1999 31 days
89 days
The period of deposit is 91 days, so we must add days 2 days in 89 and it comes
out to be 2nd of January, 2000. By applying rule (3) the due date becomes 3rd of
January, 2000.
6. Interest runs from

The column Interest runs from shall be filled with the date on which the deposit
receipt is prepared. In case deposit is renewed from the back date, the date in this
column will be the due date of the overdue deposit.
Term Deposit Receipt- typed or written
The deposit receipt may either be typed or written in hand. If written in hand, it
should be neat and legible. In computerized branches, where term deposit receipt
are prepared with the help of printer and computer, paper should be adjusted in
such a manner that its printing is legible and at proper place.
Number in pay-in-slips and account opening form
The deposit receipt number should be written in account opening form and also
in the pay-in-slip.
Signature on deposit receipt
The deposit receipt should be signed by two authorized officer after

scrutinizing the pay-in-slip, account opening form and deposit receipt.
Acknowledgement from depositor
The Depositors signature should be obtained on the back side of the counterfoil
in token of receipt of the deposit receipt and the deposit receipt should be handed
over to the depositor.
Matured amount to be written on long term deposit receipts
In the long term deposit scheme of term deposit, the interest earned is reinvested
(compounded quarterly) and paid on maturity. So, in the long term deposit
receipt, the matured amount is mentioned therein which should be written both in
figures and words. Whereas, matured amount is not written on fixed deposit
receipt as the depositor has the option to receive the interest monthly/ quarterly/
half yearly, i.e., before maturity.
Entry in fixed deposit & long term deposit ledgers
Separate ledgers for fixed deposit & long term deposit should be used. All the
relevant particulars such as name of the depositor, date, period of deposit, rate of
interest, due date, maturity value, instructions regarding disposal of balance in
respect of joint accounts should be entered.
Interest Payment Register

The details of fixed deposits should be entered in the Interest Payment
Register.
Entries in Interest Payment Register are not required in case of long term
deposits.
Payment of interest on long term deposits
The interest on long term deposit is compounded quarterly and is paid only on the
maturity date of the deposit along with principal amount. The interest should be
calculated at the end of each quarter and must be credited in the account of the
depositor.
Payment of interest on fixed deposits

a) Where the deposit is for one year or more while calculating the days for the
purpose of interest, the following rules should be observed:
1) Include the first day of deposit
2) Exclude the last day of deposit
3) Each month is considered to have 30 days
b) Where the deposit is less then a year

If the fixed deposit is made for a specified number of days less than a year,
interest should
be calculated by taking the actual number days in a month.
Discharge
To make payment of fixed deposit/ long term deposit on due date, if the customer
present himself to receive the payment, he may be asked to discharge the fixed
deposit/ long term deposit receipt on the back of it. His signature on the fixed
deposit/ long term deposit receipt shall be tallied with specimen signature in
record of the bank.
Closure of long term deposit
The receipt and the account opening form should be cancelled by writing words
Account closed on --------- (date). The account should be closed in ledger by
posting the necessary entries. The ledger and the due date register should be
marked with a notation Account closed and cash paid/ amount transferred to SB/
Current account on ---- . Whereas if there are other term deposits in the term
deposits accounts, the account should not be closed.
RECURRING DEPOSITS
A Recurring deposits is a form of term deposit in which depositor deposits a fixed
sum of money by way of monthly installments over a stipulated period and on the
expiry of this period. The accumulated amount along with interest accrued is paid
in lump sum.
Rate of interest
The rate of interest on recurring deposit for various periods will be the rate
applicable on term deposits for the corresponding period. Interest is compounded
at quarterly rests.
Amount of deposit
A recurring deposit is accepted with a minimum monthly installment of Rs 10/- in

multiples of Rs 10/-.
Period of deposit
The minimum period of recurring deposit is 6 months and maximum period is 120
months with multiples of 3 months
Maturity value
The maturity value (the amount payable at the end of the period of deposit,
comprising the principal and interest accrued thereon) can be calculated from the
interest charts supplied to the branches.
Entry in recurring deposit ledger

Separate ledger for recurring deposit should be used. All the relevant particulars
such as name of the depositor, date, period of deposit, rate of interest, due date,
maturity value and amount of installment.
Issue of pass book

The ledger keeper should prepare the pass book for recurring deposit at the time
of opening of account in the personal ledger and it should be authenticated by the
officer concerned of the branch before it is delivered to the customer. The date of
maturity should not be mentioned on the pass book but month on which it matures
can be written therein. The rate of interest can be mentioned therein. The customer
should be asked to bring the pass book in the branch whenever he pays the
installment.
Penal charges
In case the installment are not deposited in the respective calendar month in
which they due, Penal charges are to be recovered for the delay. The penalty is
charged at the rate mentioned below:
1) Rs 1.50 for every hundred rupees per month for deposits upto 5 years and less
2) Rs 2 for every hundred rupees per month for deposits over 5 years.
Loan against Recurring Deposit
Loan against Recurring Deposit can be allowed to the recurring deposit holder.
To avail the loan, the recurring deposit account holder should lodge the passbook
with the Bank duly discharged over the revenue stamp of appropriate value at the
space provided for in the last page of the passbook.
CURRENT ACCOUNTS
WHO CAN OPEN CURRENT ACCOUNT?
1) Person in his own name

2) Two or more persons in their joint names with operations as either or survivor,
Jointly/Jointly or Survivor, Anyone or Survivors or Survivor.
3) Cooperative societies, Partnership firms, limited companies, joint stock
companies, ssclubs, religious institutions, associations, Local bodies.
WHO CANNOT OPEN CURRENT ACCOUNT?

1) Minor
2) Pardanashin ladies
3) Illiterate Persons
4) Blind Persons
------------------------------------------------------------------------------------------------------
Type of accounts Additional Documents
------------------------------------------------------------------------------------------------------
1) Proprietary concern a) Declaration of sole
proprietorship
2) Partnership Firms a) Partnership Letter

b) A copy of partnership deed
3) Joint Hindu families a) Joint Hindu family letter
4) Limited companies a) Certificate of incorporation

b) Certificate of
commencement of
business.
.
c) Memorandum and article of
Association
d) Boards resolution
5) Clubs, Schools, Societies, a) Certificate of registration or

Committees incorporation
b) A copy Bye laws, rules,
regulations as the case may
be
c) Memorandum of
Association, if any
d) Resolution of board of
directors
e) Latest copy of balance sheet
in case of Co-operative
Societies.
6) Trusts a) Instrument or document of

truck or relevant extract
thereof.
b) Resolution
c) Certificate of registration
from charity Commissioner
7) Provident funds a) Trust deed

b) Rules of Provident fund
c) Resolution
8) Guardians appointed a) Court order or Guardianship

by court in respect Certificate
of minors
Minimum Amount:
Account shall be opened with minimum balance of Rs 5000/-.
Issue of cheque book:

Cheque book may be issued to the account holder on the
written request only. Cheque book issued to the new account holder for first six
month shall be stamped New Account.
Borrowings: Rs 42895.27 Lacs

Bank has availed borrowing from NABARD and PSCB
Chandigarh as on 31-03-2008 Sanctioned limit for
2008-09
Seasonal Agriculture Operations: 22846.50 24200.00
Revolving cash credit: 8000. 00 8900.00
STNAP 2550.00 3300.00
C.C Fertilizers 64.22 500.00
Own resources 5.13 2000.00
MT Farm Sector 5846.66 95% of advances
Non Farm Sector 1778.59 90% of advances
Housing Loan 1804.17 90% of advances
STAFF REQUIREMENT
Requirements of clerks was made in the bank last in the

year 1980. Similarly recruitment of class IV employees was made in the year
1986. A number of posts are lying vacant. This shortage definitely affects the
working of the bank.
ANNUAL TURNOVER AND AVERAGE WORKING FUND
The annual turnover of the PATIALA CENTERAL CO-OPERATIVE BANK

for the year 2006-07 is 710259.15 lacs and for 2007-08 is 804067.55 lacs
Average Working Fund (Based on monthly outstanding balances)
Average Outstanding Outstanding Outstanding Growth Rate Growth Rate

Working As on As on As on (31/03/06 To (31/03/07 To
Fund 31/03/2006 31/03/2007 31/03/2008 31/03/2007) 31/03/2008)
55591.03 62237.45 70175.20 11.96 12.75
NAME OF THE ORGANISATION
POSTAL ADDRESS
The Patiala Central Co-Operative Bank Ltd.H.O., The Mall Patiala-

147001.
MAIN TELEPHONE NUMBERS AT HEAD OFFICE
 Managing Director 5000270
 District Manager 5000271
 Sr. Manager 5000272, 5003648
 Chairman 5000273
 Account Section 5000274
 Stat Section 5000275
FAX NO: 0175-5003927
NAME OF DEPARTMENT WORKING IN CO-OP. BANK
There are various sections / departments which are

working in the Bank. Here we tell us about those departments / sections which
play important role in Banking. We tell about his Head of Department, its
functions & number of members working in the departments.
FUNCTIONS OF THE DEPARTMENT
 To maintain monthly statements etc; like as LIC, Income Tax, GSLI

 Grievance of public & branches.
 Yearly statements.
 Master policy of holder such as EDLT, GI, and House Loan.
 Statements of NABARD.
 House Loan
 To issue charge sheets of employees & maintain it.
 To maintain Misc. files.
 To maintain several records (with service book of employees)
 Transfer of employees.
 Increment concerned with employees.
 Pass T.A. D.A. bill of employees
 Salary of employees maintained.
FUNCTIONS OF ACCOUNT SECTION

 The Misc. department reconciled the A/c of all the branches.
 That department issue the drafts of local, state level /aims.
 Furniture fixture.
 This department keeps up the current A/C related with commercial bank.
 It helps to maintain sundry A/C.
 Maintain the current A/C with P.S.C.B.
 Passing the M.C.L. of societies.
 Sanctioned of cash credit limits of societies.
 Maintenance of receipt and dispatch register.
NUMBER OF PERSON WORKING

 In this section number of persons working are ten.
 1 Senior Manager
 2 Manager
 2 Assistant Manager
 5 Clerks
FUNCTIONS OF LOAN SECTION
 Sanction all types of loans; like as Consumer Loan
Composite /integrated loan
Vehicle Loan
Computer loan only for staff member
 Sanction all types of limits; like as cash credit trader
Cash credit farmers
Loan against property
Rural godown
Mini dairy
Mai Bhago scheme
 Renewed cash credit limits.
 Physical verification done before sanctions the
limits or loans.
 Vehicle loan two wheeler, three wheeler, &
S.R.T.O.
 Maintain statements for refinance &send to
NABARD.
FUNCTIONS OF STAT SECTION

 Planning
 Renewing
 Compiling
 Achievements (for net result of the bank)
 Next year forecasting
NUMBER OF PERSONS WORKING

There are seven persons working in stat section
 1 Senior Manager
 1 Manager
 2 Assistant Manager
 1 Accountant
 1 Clerk
 1 Typist
ACCOUNT & FINANCE DEPARTMENT
Keeping of account and maintaining books of accounts,

preparing profits and loss accounts, preparing budgets, pay rolls, recording
receipts and payments, preparing statement of assets and liabilities etc. are
office activities of specialized nature. All these are office work and performed
by this special office.
MISCELLANCEOUS ACTIVITES
 OFFICE TIME: - The P.C.C.B. has fixed the timing for all the employees the
timing of this company is 10a.m. To 5p.m. The recorded of the arrival &
departure was recorded through Attendance register company maintenance the
attendance registers. All the employees come at 10a.m. Entered the time in the
Attendance register in the first column and at time of lunch. The entire
employee entered. The departure time for lunch at 2p.m. When they come
after lunch they will entered the arrival time 2.30p.m. Than duty was complete
they will entered the departure time 5.00p.m. And also entered the total
working hours in the full day. There is no extra system for recording the time.
 LOGBOOK: - All the vehicles of the company having logbook. Each
vehicle has own separate logbook. All the records of this vehicle were kept
in this logbook.
The perform shows that, how much kilometer are to be used
by this log book the person who used the vehicle fill this log book and signed
on also fill that for what purpose. The vehicle was used.
 FACILITIES FOR STAFF: - The following facility is available to staff
members.
 House Loan facility at subsidiary rate.
 Scooter loan/ motorcycle/ car loan at subsidiary rate.
 Festival loan.
 Medical loan
 LTC Loan (Loan Travelling Concession)
 DA (daily allowance)
 TA (travelling allowance)
Employee Analysis (Rs.in lacs)

Growth Rate Growth Rate
As on As on As on (31/03/06 to (31/03/07 To
31/3/2006 31/03/2007 31/3/2008 31/03/2007) 31/03/2008)
Business Per Employee 304.60 392.08 497.77 28.72 26.95
Yield Per Employee 18.39 20.27 26.80 10.22 32.21
Profit Per Employee 3.17 1.56 0.56 -50.79 -64.10
Intt. Income Per Emp 18.16 19.97 26.50 9.97 32.69
Salary Per Employee 3.17 4.27 4.73 34.70 10.77
Total Employees 243 208 190 -14.40 -8.65
Cash and Bank Balances: Rs1721.77 Lacs

Bank have maintained cash in hand and bank balances
with PSCB Chandigarh and other commercial banks for timely payments to
customers the minimum statutory requirement to maintain Cash reserve ratio of
Cooperative banks and RRBS is 3% as prescribed by RBI .In the BOD resolution
no 8 dated 21-01-2008 revised the cash in hand / cash with banker limits. It is
made clear that these limits are optimum level which the branches are require to
maintain.
Investments: Rs 7326.98 Lacs
Bank has invested to maintain SLR ratio which is
prescribed by RBI to DCCBS of their demand and time liabilities at rate of 25%
Bank have invested in FDR with PSCB with Chandigarh , govt securities SGL
Account with SBOP Patiala and other schedule banks for purpose of SLR .Bank
Have also purchased the shares of their Apex bodies Rs 344.42 lacs to borrow
PSCB Chandigarh. Detail of investment is as under:
Investments
Type of Investment Outstanding Outstanding Outstanding Growth Rate Growth Rate
As on As on As on (31/03/06 to (31/03/07 To
31/03/2006 31/03/2007 31/03/2008 31/03/2007) 31/03/2008)
With PSCB 3112.76 2416.96 3725.22 -22.35 54.12
Bond &
275.00 275.00 300.50 -- 9.27
Debentures
Call Deposits -- 1000.00 -- 100% --
In shares 329.13 344.42 344.42 4.65 --
Others (Specify) 2956.84 2956.84 2956.84 -- --
TOTAL : 6673.73 6993.22 7326.98 4.79 4.41
Loans and Advances: The bank finances crop loan, investment credit and allied
activities through 272 primary agriculture cooperative societies to farmers in the
villages. Bank advances direct loans to farmers for purchase of two wheelers, mini
and commercial dairy, revolving cash credit to farmers for their socio, economic
needs, construction, repair, renovation of house in rural areas. Bank advances
personal loan, consumer loan, vehicle loan, house loan, education loan, Non
farming sector, Self help group, Commercial dairy, Loan against property,
Loans &Advances
Type of Advances Outstanding Outstanding Outstanding Growth Rate Growth Rate
As on As on As on (31/03/06 To (31/03/07 To
31/03/2006 31/03/2007 31/03/2008 31/03/2007) 31/03/2008)
Agri. (Crop Loan) 21474.09 26543.71 31772.13 23.61 19.69
RCC (Farmer) 5910.43 7407.56 10021.74 25.33 35.29
C.C. Traders 1827.22 1875.02 1952.15 2.62 2.67
NFS.& SRTO 1784.07 1583.18 1548.73 -11.26 -2.17
CD Loan 2009.29 1726.34 1638.00 -14.08 -5.12
Personal Loan 1065.21 1236.72 1471.08 16.10 18.95
Urban H. Loan 456.37 804.11 1043.71 76.20 29.79
Rural H. Loan 1818.32 1985.84 2100.75 9.21 5.78
Vehicle Loan 284.97 315.11 354.69 10.58 12.56
Education Loan 16.85 19.10 28.84 13.35 50.99
Two Wheelers
718.57 778.51 736.17 8.34 -5.44
Loan to Farmers
Mini Dairy Loan 575.96 502.06 403.04 -12.83 -19.72
Loan to Staff (on
76.75 74.10 62.71 -3.45 -15.37
which simple intt.)
Other Advances 10591.32 12674.22 13501.11 19.67 6.41
TOTAL : 48609.42 57525.58 66634.85 18.34 15.84
Average Advances (To be calculated on monthly outstanding balances)
During During During Growth Rate Growth Rate

01/04/05 to 01/04/06 to 01/04/07 to (01/04/06 To 01/04/07 to
31/03/2006 31/03/2007 31/03/2008 31/03/2007) 31/03/2007)
Avg. Advances 44626.48 50654.70 58872.80 13.51 16.22
No of Loan A/cs
01/04/2005 to 01/04/2006 to 01/04/2007 to
31/03/2006 31/03/2007 31/03/2008
Direct Loan A/cs at the 21147 26003 29813
beginning of the year
Direct Loan A/cs opened 8036 8387 3840
during the year
Direct Loan A/cs closed 3180 4577 3291
during the year
Direct Loan A/cs at the close 26003 29813 30362
of the year
Direct Loan A/cs opened 3997 2619 1959
during the year without
security.
Non performing advances:

Bank is not earning on these assets as RBI introduced
income
Recognitions and prudential Norms in Cooperative banks to maintain provisions
against doubtful assets.
Non Performing Advances

(Rs. in lacs)
No. of Accounts Amount
As on As on As on As on As on As on
31/03/06 31/03/07 31/03/08 31/03/06 31/03/07 31/03/08
Agri. (Crop 2 3 1 62.42 42.97 6.46
Loan)
RCC 273 368 418 284.89 432.46 505.37
(Farmers)
CC Traders 727 748 723 445.73 436.16 412.61
NFS Loans 1955 2036 2048 740.14 703.04 682.49
(Comp.
Integrated
SRWTO)
C.D.Loan 2614 2402 2514 924.71 842.71 845.91
Personal 244 297 322 196.33 233.24 243.46
Loan
Urban House 17 22 39 26.92 46.04 84.61
Loan
Rural House 162 150 175 323.01 241.30 292.80
Loan
Vehicle Loan 95 65 62 107.39 72.18 67.67
Two 326 220 323 88.28 57.86 81.42
wheelers
Loan to
Farmers
Mini Dairy 145 152 154 234.88 242.95 233.12
Loan
M.T.A.P. -- -- 7 -- -- 26.60
Sway Rojgar 5 13 35 1.22 3.04 8.80
STNAP/Oth 4 11 11 0.42 31.98 32.99
er Socy.
C.C.Goods 3 2 1 1.31 0.95 0.50
Precurement 1 1 1 2.82 2.82 2.82
L&C 6 6 6 30.49 30.41 29.37
Societies
C.C.Ind 26 22 21 12.47 12.36 12.37
Verified 5 5 5 8.84 8.79 8.93
Bills
Computer 8 3 1 1.77 0.57 0.13
Loan
S.H.G. 4 12 16 1.64 5.47 7.46
O.D. to Staff 7 6 4 2.76 3.24 3.01
S.G.S.Y. -- -- 2 -- -- 0.39
Rural 1 -- 1 14.31 -- 2.73
Godown
U.L. 110 78 75 491.26 447.16 570.72
Societies
Others 70 81 112 78.05 99.63 136.45
Total 6740 6622 6967 4004.01 3897.73 4163.09
Sub- 5386 4858 4480 2907.42 2612.10 2396.34
Standard
Assets
Doubtful 298 483 540 298.65 450.18 610.52
Assets
Un-Secured 956 1203 1872 306.68 388.30 585.51
Secured 151 163 239 168.40 202.00 254.67
Overdue
from 3 to 4
years
Overdue 4 79 235 185 90.36 194.98 258.30
to 6 year
Overdue 68 85 116 39.89 53.20 97.55
above 6 yrs
Loss Assets 110 78 75 491.26 447.16 570.72
Solvency Ratios :
All Ratios are to be calculated in percentage terms.

Ratios 31/03/2006 31/03/2007 31/03/2008
Capital Adequacy Ratios 8.71 7.07 6.81
N.P.A./ Total Advances 8.24 6.78 6.25
Own Funds / Average Working Funds 7.78 7.27 7.47
THE PATIALACENTRAL COOPERATIVE BANK
Schemes Rate of Interest
1. Cooperative kisan credit card 7% (from PACS 4.5%)
2. Revolving cash credit card 11%
3. Urban & Rural Housing Plan 11%
4. Two wheelers loan 13%
5. N.F.S & S.R.T.O

- 50000& above 13%
6. Personal Loan 14%
7. Consumer Loan 14%
8. Personal Vehicle
- 200000 & above 13%
9. Commercial Dairy 11%
10. Cash credit traders 12%
11. Education Loan 11%
12. Self help group 11%
13. Medium term agriculture purpose 10%
14. Non agriculture purpose short term 10%

Kissan Credit Card Cum Pass Book To Farmers
The cheque book and pass book system was introduced in Punjab from 01/10/1978
banks have successfully implemented the scheme of short term agricultural loans
with refinance support from NABARD through the system of cheque book and
pass book. As per existing scheme, Maximum credit limits of farmers are prescribed
by state level technical committee chaired by the Registrar, cooperative societies,
Punjab, Chandigarh on the basis of recommendations of District level technical
committees, These limits are fixed for various Rabi and Kharif crops. The maximum
credit limit of farmer per acre is as under fixed by RCS letter no CA 2/5 CL/A/143/4
440 Dated 29/08/07. The MCL of major crops is as under:-
SR.NO Name of crop Cash Kind Total
1 Wheat 5200 2650 7850
2 Rice 6000 2700 8700
3 Cotton 6300 3500 9800
4 Sugarcane 12700 4300 17000
5 Oil Seed 4500 2100 6600
6 Potato 12000 5000 17000
7 Green Vegetables 12500 4800 17300
8 Fodder 4000 1800 5800
9 Diesel 2300 - 2300
10 Ancillary activities 1500 - 1500
11 Agriculture implement 1000 - 1000
on rent
MCL of the individual member of the primary agriculture cooperative society is fixed by
the managing committee of society through a resolution , limits for cash (a) kind ancillary
activities diesel lubricants and rent of agriculture implements on the basis of approved
scales of finance in keeping with land holding of the farmer on the basis of relevant land
records i.e (Jama-Bandi ) after sanctioning the limit by the society the member have to
execute
1. Demand Promissory Note
2. Letter of continuity
3. Cash credit agreement
The farmer will submit the same to the society after MCL has been
sanctioned by the bank the managing committee of society would pass a resolution to
authorizing its member to execute pronote/ agreement on behalf of society for full amount
of MCL sanctioned by bank. The bank would obtain following documents from the
society after its MCL is approved :
a) Resolution of the society

b) Demand Promissory Note
c) Letter of Continuity
d) Cash credit agreement
The secretary of society would deliver pronote for whole amount of MCL along with
copy of the resolution of the society authorizing him to do so.The secretary of the society
would fill the necessary data in KCC of each of the member.
The photographs of the members would be verified by the Secretary in such
a manner that a part of the verification is on the photograph and a part on book to minimize
the possibility of removing/ replacing the photograph.
Thumb impression or signature of the member would be taken on the
Pass book and would be attested by the Secretary and the Branch Manager
The transmission of information by the Society to the Bank branch
and by the bank to the society would be made simultaneously so that account of each
member is completed at the earliest.
The bank would ensure that total loan against a member
does not exceed the maximum credit limit sanctioned to him.
Issue of cheque books, payment of cheques and

Specimen signatures of authorized signatory
The procedure for issue of cheque books and payment of cheques would remain as earlier,
It is reiterated hereunder for the purpose of clarity.
The concerned CCB branch would allot an account number to each of
the PACS. Likewise, individual members of the society would also be allotted an account
number.
Name stamp of the society would be affixed on each cheque by the
bank before issue of cheque book.
The cheque for drawing cash component would be presented
by the member on counter of the bank. The bank would pay the cheque after proper
identification by referring to the photograph on the KCC in case of illiterate persons and
by referring to the specimen signatures in case of literate persons.The thumb impression of
illiterate members would be got attested by the branch manager and in absence of the
branch manager, by the person holding the charge of the branch. The branch manager
would get thumb impression/ signatures in his presence.
Under no circumstances, cheques would be paid or accepted
for payment of cash and lifting of kind component without production of KCC
cum pass book by individual members.
COOPERATIVE KISSAN CREDIT CARD AND PASS BOOK
PHOTO
Name of the Branch : -----------------------------------

Name of the Society : -----------------------------------
Card No : ----------------------------------
Tenure : -----------------------------------
Name of card holder : -----------------------------------
Father/ Husband Name : ------------------------------------
Village and Post Office : ------------------------------------
Tehsil and district : ------------------------------------
Signature of Card Holder
Secretary Signature Signature of branch

and stamp manager and branch
stamp
PERFORMA OF PASS BOOK
Date Particular Last Deposit Total Signature
outstanding outstanding
Cheque Book Issued by Bank
Name of member : --------------------------------

Father/Husband Name : --------------------------------
Account No : --------------------------------
Bank Ledger Folio : --------------------------------
Total amount of loan : --------------------------------
Date Number Signature

THE PATIALA CENTRAL COOPERATIVE BANK LTD., H.O.PATIALA.
SCHEME FOR FINANCING RURAL HOUSING
Preamble With a view to provide housing facilities to the masses which is a basic need
of human beings, the GOI and State Govt. are attaching utmost importance to
the financing of housing sector. Several housing schemes for this are in
operation. With a view to supplement these schemes, it has been decided by
the Coop. Bank to start housing finance for acquisition, construction
repair/alteration etc. This scheme has particularly been designed for rural
people, where other financing institutions are reluctant to advance. The
scheme shall be called the Scheme for Financing Rural Housing and is
applicable to individual/members of house building cooperative societies in
the state of Punjab and Chandigarh(U.T.)
1. Area of Operation Loan shall be advanced to individual and member of Group Housing
Cooperative Societies in the area of operation Banks in the state of Punjab
and Chandigarh U.T.
2. Eligible Borrower  Individuals

 Cooperative Housing Societies
3. Purpose of Loan Loan shall be advanced under the scheme for purchase of built up house
construction of a new house or repair/ renovation/addition/alteration of
existing house in rural areas.
4. Ceiling on the cost The loan for a dwelling unit may not exceed Rs.15.00 lacs. In case land is
being acquired the cost of land may be reckoned as margin money, otherwise
cost of land should not be included in the project cost.
(
5. Quantum of Bank The quantum of loan shall depend upon repaying capacity of the borrowers
loan for Individual subject to 85% of cost of construction or value of property to be purchased.
For construction/purchase of new House
a) maximum loan Rs.15.00 lacs
b) Margin Money 15%
c) Repayment period Upto 15 years in monthly/half yearly
installments. Due date shall be 30th June and 31st December every year
For Renovation/Repair/Addition/Alteration:
a) Maximum loan Rs.5 lacs (for repair/ addition /alteration of House)
b) Margin money 15%
c) Repayment period 10 years in monthly/half yearly installments.
Loan eligibility shall be calculated on the basis of repayment capacity of the
borrower. The repaying capacity shall be determined on the basis of land
holding and other known sources of income and commitments/subsistence
towards his family. A reasonable installment to income ratio i.e. normally upto
35% of the gross income can be taken as repayment capacity of the borrower.
Income of the co-applicant can also be considered for loan eligibility.
6. Period of Loans The maximum period of loan shall be upto 15 years and loan shall be
repayable in equated monthly/half yearly installments. The first installment
shall become due after expiry of 9 months from the date of drawl of first
installment in case of construction and whereas in case of purchase of built up
house, it shall start after expiry of 3 months from the date of purchase.
7. Rate of Interest At present rate of Rural Housing is 11% and further it shall be determined by
financing bank from time to time and debited to loan account. Interest
Is charged as contract made with the loanee. Penal interest @ 2% over and
above the normal rate shall be charged in case of default, on the default
amount for the default period. 0.5% concession is allowed to women
8. Security The security of the loan shall be first mortgage charge on the house property
to be financed by the bank by way of registered regular mortgage. In addition
to it collateral security shall be taken @ 100% of the loan amount in the form
of agriculture land. Value of agriculture land as per norms fixed by the
District Collector from time to time should be taken into consideration. In
case of employees of the Govt., semi govt., Boards, Corporation, etc.
constructing house within rural areas, loan can be advanced on primary
security i.e. mortgage of house to be financed, along with two good sureties
and undertaking under section 39 of Punjab Cooperative Societies Act., 1961.
(amended vide RCS Circular letter No.Credit/CA-2/HF/201/1/16264 dated
30.10.07)
9. Sanction and The loan shall be sanctioned after it is ascertained that the applicant fulfils all
disbursement of the requirements and enjoys reputation as a good pay master. For construction
Loan loan, the borrower should be in possession of plot with unquestionable and
indisputable title. In case of built up house, the payment shall be made @
75% of total value of the house/Loan sanctioned. Payment shall, however, be
made to third party in lump sum after getting margin money from the
borrower and remaining 25% shall be released after obtaining Mortgage Deed
in favour of the Bank. For construction of house, loan shall be disbursed in 2
installments, which is as under:-
i) 1st installment at the time of starting 50%
construction up to plinth level
ii) 2nd installment after completion up to 50%
Roof level.
2nd installment shall be disbursed after ensuring proper utilization of previous
installment.
10. Processing Fee & Processing Fees and other charges @ 0.25% of loan amount shall be charged.
Other Charges
11. Documentation & Following documents are required for financing under Rural Housing Scheme
general 1. Application form
requirements. 2. Loan agreement
3. D. P. Note
4. Two latest attested passport size photographs of the borrowers.
5. Proof of residence.
6. Source of Finance for own contribution.
7. Copy of approved drawing of the proposed dwelling unit to be
constructed/purchased from Sarpanch / Numberdar.
8. Agreement of sale deed.
9. Details of cost/estimate from approved Architecture/ Valuer/ Engineer
of the house to be purchased/ constructed /renovated /addition to be made.
10. Non-encumbrance certificate.
11. Latest Jamabandi and Girdawari.
12. Certificate of ownership of land/property situated within Red Line
(i.e. Phirni) of the village from the Sarpanch/Numberdar/Partwari.
13. The borrower shall mortgage his existing property : to be
constructed/purchased in favour of the bank for the full value of loan.
14. The borrower shall be required to submit collateral security @ 100%
of the loan amount.
)
SCHEME FOR URBAN HOUSING LOAN SCHEME
1. Short title, a) This scheme may be called Urban Housing Loan Scheme to individual
Extent and and members of house Building Societies by The Punjab State
Commencement Cooperative Bank/Central Coop .Bank (s) in the State of Punjab.
b) The scheme shall be implemented through the branches of the
PSCB/Central Cooperative banks concerned and shall be limited to
urban areas falling in the area of operation of the lending Bank.
)
c) It shall come into force from the date as the Registrar Coop.Societies,
Punjab Chandigarh decides.
2. Definitions In this Scheme unless the context otherwise requires :-
a) Act means, the Punjab Cooperative Societies Act 1961 as amended
from time to time.
b) Bye-laws means the registered byelaws of the State / Central
Cooperative Banks concerned.
c) Bank means State/Central Cooperative Bank registered under the Act.
d) Committee means the Governing body of the Cooperative Bank by
whatever name called to which the management of the affairs of the
bank is entrusted.
e) Government means Government of Punjab.
f) Nominal Member means a person admitted to membership of he bank
under Act. Rules and Bye-laws.
g) Officers means the President, Vice President, Chairman, Vice
Chairman, Managing Director, Manager, Liquidator and Administrator
includes any other person empowered under the rules or the bye laws
to give direction in regard to the business of the bank.
h) Registrar means a person appointed to perform the function of the
Registrar of Cooperative Societies under the Act.
i) Rules means the Punjab Cooperative Societies Rule 1963.
j) Urban area means area falling under Nagar Panchayat, Notified Area
Committee, Municipal Council, Municipal Corporation and
Cantonment Board.
)
k) Family member means Spouse, Son, Sons wife, Unmarried Daughter.
3. Purpose Loan shall be advanced for the purchase of plot, purchase of built up
house, construction of house or repair, renovation, additions, alteration, etc. in
the existing house. Loans shall also be given for acquiring a plot, flat, house
in an existing or proposed Cooperative House Building Society and approved
scheme of PUDA, Housefed, Improvement Trust or any other Govt. Agency.
Loan can also be advanced for take over of an existing loan advanced
by any other bank/financial institution subject to the condition that the loan
account should have remained in the standard category of assets for atleast
last 2 years in the previous financial institution.
4. Eligibility An individual residing in the area of operation of the Bank may apply for the
loan in his individual name or along with another person being joint owner of
the land/property as co-applicant. The applicant and co-applicant, if any will
be enrolled as nominal members of the bank under the Act, Rules and Bye
Laws.
Note : The Borrower should not have defaulted in any other loan.
The applicant shall be eligible for a total house building loan not
exceeding 75% of the total cost of house (cost of construction + cost of plot, if
plot is to be purchased) and the loan out of it for purchase of plot will not
exceed 50% of the total loan sanctioned. The remaining, exceeding or upto
50% shall be utilized for construction of house thereon.
The employees of the Punjab State Cooperative Bank or Central
Cooperative Banks who have already availed house loan under Govt. or Bank
Scheme from the Punjab State Coop. Bank or Central Cooperative Banks can
also get loan under the scheme subject to maximum of Rs.25 lacs under both
house loan scheme. It will be further subject to the repaying capacity of the
employee in accordance with their last salary statement. Further this loan to
employee will be against second charge on the said property.
5. Quantum of The quantum of loan will depend upon the repayment capacity of applicant to
Loan be calculated by the bank as under :
21 yrs. To 45 yrs of age.
48 times of the net monthly income (NMI) or 4 times of Net Annual Income
(NAI)
Above 45 years
36 times of Net Monthly Income (NMI) or 3 Times of Net Annual Income
Income of the spouse or family member can be considered if spouse or family
member is co-applicant or guarantor. Maximum loan amount for construction
of house or purchase of house/flat, purchase of plot + construction thereon
under this scheme is Rs.25 lacs or 75% of total cost of construction, purchase
of house (cost of construction + cost of plot, if plot is to be purchased),
whichever is less.
The loan for purchase of plot will not exceed 50% of the total loan
sanctioned.
For repair/renovation maximum amount of loan shall be Rs.5 lacs.
For addition/alterations in existing house, maximum loan amount shall be
Rs.10 lacs.
(
6. Interest At present rate of Urban Housing is 11% and further it shall be determined
by financing bank from time to time and debited to loan account. Interest
Is charged as contract made with the loanee. Penal interest @ 2% over and
above the normal rate shall be charged in case of default, on the default
7. Period of Loan/ Maximum period (including moratorium period) shall be 15 years or attaining
Repayment of the age of 65 years whichever is earlier. In case of repair/renovation
Loan /addition/alteration loan cases maximum period shall be 10 years.
Repayment of the loan shall, however, be in monthly equated installment to
be started from 9 months after the first installment of loan disbursed. In case
of the farmers availing loan under this scheme, repayment of loan may be in
half yearly installments i.e. 30th June and 31st December every year.
8. Security Security for the loan is a first mortgage of the property to be financed
normally by way of deposit of original title deeds.
9. Disbursal of The loan shall be disbursed after the property is technically appraised, all
Loan legal documentation completed and borrower having invested own
contribution in full (own contribution is the total cost of proposed property
Bank loan).
In case of purchase of plot + construction, the disbursement shall be
in 3 installments as follows:-
For purchase of plot 50%
Upto roof level 25%
After roof level 25%
Loan will be disbursed at one go for purchase of a built up house.

However, for construction on pre-owned plot, the disbursement shall be in
two installments.
1st Installment for construction after plinth level 50%
2nd Installment for construction of the building after roof level 50%
Loan for repair, additions, alterations and renovation shall be
disbursed in two equal installments. The second and subsequent
installment of loan shall be disbursed only after ensuring the
utilization of previous installment to Banks satisfaction. Bank shall
not be bound to accept progress construction as assessed by builder.
10. Fee & Other A processing fee @0.25% of the loan amount sanctioned will be charged.
Charges
11. Documentation 1. Identify proof.
Pre-sanction 2. Residential Proof.
stage. 3. Self attested recent passport size photographs of the applicant and co-
applicant (two).
4. Copy of Income-tax Return for the three years duly acknowledged by ITO
concerned.
5. Sources of Finance for own contribution.
6. Non-encumbrance certificate.
7. Search report & legal opinion alongwith photograph of the property.
8. Original title deed.
9. Spot Physical verification.
10. Purchase agreement of property.
11. Income Proof/J-Form.
12. Loan application Form
Post Sanction Stage
1. Loan agreement.
2. Demand Promissory Note.
3. Mortgage Deed
4. Letter of Lien and Set Off
5. Letter of Waiver
6. Letter of Guarantee
Employed applicants : Undertaking from the employee under section 39 of
Punjab Cooperative Societies Act, 1961.
12. Insurance Comprehensive insurance in the joint names of the borrower and the bank
shall be made of the property mortgaged against fire, riots earthquake lighting
floods etc. Incase of default bank will be at liberty to get a policy renewed by
debit to house loan account of the borrower.
13. Additional Doc- a) Construction Plan approved by a competent authority.
uments in b) Detailed Cost estimate from Registered Architect/ Civil Engineer.
construction c) A photocopy of registered title deeds or allotment letter (in case of
cases member of Cooperative House Building Societies)
14. In purchase of a) Agreement of sale/sale deed/detailed cost estimate from approved
Built Up House engineer.
cases. b) In case of allotment of flat/houses, photocopy of allotment letter and
details of balance payment, if any.
15. Disputes If at any stage any dispute arises,it will be settled/referred under the Punjab
Cooperative Societies Act 1961.
PERSONAL LOAN
A specially designed Personal Loans Scheme has been framed which aims at
providing credit facility for meeting out socio-economic needs of employees such
as child education, furnishing your home, buying a computer, son/daughters
marriage, holiday tour with your family or any other basic requirements without
giving any purpose of the loan.
The main features of this scheme are listed below:-
Eligibility Criteria
1. Class Salaried employees of Punjab Government, PSUs, Boards, Corporations,

Aided Schools/colleges, Universities, Public Sector Banks, Premier Medical
Institutions, General Insurance Companies, Punjab State Cooperative Bank,
District Central Cooperative Banks, Cooperative Organizations in the State of
Punjab or any any other organization as approved by the Board of Directors of
the respective bank. The BOD of the respective bank can make addition or
deletion to this list.
2. Age Minimum 21 years and Maximum 57 years.
3. Service Tenure 1 year after the confirmation/regularization.
4. Loan Limit 12 times of gross monthly salary or Rs.2 lacs, whichever is less.
5. Tenure Maximum 5 years.
6. Processing Fee Processing Fee of Rs.100/- in lump sum per case irrespective of the loan
amount sanctioned to be charged at the time of sanctioning the loan.
7. Rate of Interest At present 14% from public and 13% from staff with quarterly rests. 0.5%
concession is allowed to women
8. Repayment of Loan is repayable in equated monthly installments in the form of post-dated
Loan cheques. The 1st installment will start after one month. The loan will be repaid
before retirement.
9. Security No collateral security is required, only two guarantor know to the bank.
10. Option to Borrower can make the part pre-payment of loan. No penalty will be charged.
prepay loan
11. General No employee will be given this loan facility, which has defaulted in
repayment of loan under any other scheme.
TWO WHEELERS TO FARMERS
1. Eligibility Criteria
a) Eligible An agriculturist having land in his own name or his family member is eligible
Borrowers for the loan. The branch manager has to ensure that the applicant is a farmer
which can be verified either from Kissan Credit Card or Fard Jamabandi or
any other legal document. Applicant should not be defaulter of any loan.
(amended vide RCS Circular letter No.Credit/CA-2/4CL/86/ 14921 dated
11.10.07)
b) Age The age of the borrower should not be less than 21 years at the time of
application and not more than 60 years at the time of maturity (repayment of
loan).
Proof of Age Ration Card/Voter Card/School Leaving Certificate/Driving
License.
c) Nominal The borrower shall be enrolled as Nominal Member of the bank. If he or she
Member is already a nominal member of the bank, then there is no need for admitting
him/her again, his/her nominal membership number may be used for the
purpose of loan.
d) Number and Only one new two-wheeler is eligible to be financed to a person. The old
Type of Vehicle vehicle is not eligible to be financed under the scheme. The two wheeler may
to be financed. be of any make/model to be purchased from the authorized dealer/supplier of
the Company.
2. Amount of Loan and Repayment
a) Maximum The maximum amount of loan that can be sanctioned under this scheme is
Amount Rs.50000/- or 75% of the value of the two-wheeler, whichever is less.
b) Period of Loan The repayment period shall not exceed 5 years in any case.
c) Repayment of At present rate of two wheelers to farmers is 13% and further it shall be
Interest determined by financing bank from time to time and debited to loan account.
Interest is charged as contract made with the loanee. Penal interest @ 2%
over and above the normal rate shall be charged in case of default, on the
default amount for the default period. 0.5% concession is allowed to women
d) Repayment The loan will be repayable in monthly/half yearly installments resting 31 st
March and 30th September.
3. Documents required with Application Form
i) Latest photographs of applicant and guarantors.

ii) Proforma Invoice of two-wheeler form authorized dealer/supplier.
iii) Copy of valid Driving License of applicant or his/her family member.
iv) Photocopy of Election Identity Card/RationCard/Telephone Bill/Electricity Bill/Kissan
Credit Card or any other document which establishes the identity of the applicant and
provide proof of residence.
v) Nominal Membership form for applicant, guarantors or their nominal membership
numbers.
vi) Photocopy of documents relating to collateral securities, if required particularly in the
absence of guarantee.
4. Security of Loan
a) Hypothecation of The charge of the Bank on two-wheeler in the form of hypothecation shall be
Vehicle registered with the concerned registration authority. The Branch Manager will
ensure the registration of hypothecation of vehicle in favour of Bank with the
registration authorities.
b) Guarantee/ The loan shall be financed against two sureties who shall also be nominal
Sereties members of the bank. The Branch Manager will ensure the networth of
sureties.
(amended vide RCS Circular letter No.Credit/CA-2/4CL/86/ 14921 dated
11.10.07)
c) Collateral In case of non-availability of surities the borrower will provide collateral
Security security to the extent of 100% of the cost of two wheeler. The collateral
security may be in the shape of mortgage, pledge, lien assignment etc.
5. Disbursement of Loan
a) Third Party The cost of the two wheeler will be paid directly by the bank to the supplier
Payment or authorized dealer on the instructions from the applicant.
b) Precaution The Branch Manager must ensure that the following documents are in proper
before order before disbursing loan to the borrower.
disbursement 1. Nominal Membership of applicant as well as of guarantors
2. Residential proof of applicant
3. Proforma Invoice duly countersigned by applicant.
4. Check the following security document if in order
a) Demand Promissory Note
b) Hypothecation Deed
c) Letter of Guarantee
d) Letter of Waiver
e) Letter of Lien and Setoff
6. Post Disbursement
a) Copy of Sale The Branch Manager should obtain copy of sale letter from the borrower
Letter within stipulated period. He should ensure that sale letter must be in the name
of borrower and contain the name of the cooperative bank as financing
institution.
b) Certificate of Two wheeler should be registered within 90 days from the date of purchase,
Registration failing which 2% charges will be levied on the outstanding amount
The Branch Manager should obtain copy of Certificate of registration in the
name of the borrower within 2 months of disbursement of loan. The certificate
of registration must contain hypothecation in favour of the bank.
c) Insurance of Two wheelers shall be comprehensively insured for the face value covering all
Vehicle type of risks and the policy should be in the joint names of the bank and
borrower with agreed bank clause.
d) Timely The Branch Manager must ensure the timely repayment of loan by the
repayment borrower.
CONSUMER DURABLE LOANS (SALARY/NON SALARY EARNERS)
Scheme for Granting Loans to Individual Salary and non-salary earners by the
state and central cooperative banks for socio-economic needs
1. The bank may grant loans to individual salary earners and non-salary earners holding saving
bank account or current account with the bank for purchase of consumer durables and meeting other
socio-economic needs.
2. The loan should be repayable in monthly instalments but the total duration of loan should not
exceed three years in any case.
3. The borrower should be enrolled as a nominal member of the Bank. The Borrower should be
required to produce 2 sureties who should also be nominal members of the Bank.
4. In case of SALARY EARNERS, the amount of loan should not exceed Rs.1.00 lac per
borrower or 75% of the cost of article to be purchased whichever is less, in accordance with the
slabs fixed hereunder:-
a) Total net emoluments upto Rs.5000/- - Loan Amount = Rs.25000/-
b) Total net emoluments from Rs.5001/- to Rs.7500/- - Loan Amount = Rs.40000/-
c) Total net emoluments from Rs.7501/- to Rs.10000/- - Loan amount = Rs.50000/-
d) Total net emoluments from Rs.10001/- to Rs.15000/- - Loan amount = Rs.75000/-
e) Total net emoluments above Rs.15001/- - Loan amount = Rs.100000/-
In case of NON-SALARY EARNERS, the amount of loan should not exceed
Rs.50000/- per borrower or 75% of the cost of article to be purchased in accordance with
the slabs fixed hereunder:-
Half Yearly Income Amount Loan
a) Upto Rs.18000/- Rs.15000/-
b) From Rs.18001/- to Rs.27000/- Rs.25000/-
c) From Rs.27001/- to Rs.40000/- Rs.30000/-
d) More than Rs.40001/- Rs.50000/-
(amended vide RCS Circular letter No.Credit/CA-2/4CL/86/ 14920 dated 11.10.07)
5. The loan should be advanced for acquiring new assets only. Purchase of second hand articles
should not be financed in any case.
6. The bank should obtain salary certificate from the borrower. The borrower himself should be
responsible for the repayment of his loan. However he should also produce a copy of authority letter
addressed to the bank and also an undertaking to the effect that in case borrower commits default in
repayment of his loan installments, then his salary or loan amount due will be credited to his loan
account till the bank directs to do so. The bank shall inform the employer immediately after the
sanction of loan.
7. In case of default by the borrower, the bank will ask the employer of the borrower to deposit
the due amount by deducting from the salary of the employee.
8. The borrower should give standing instruction to debit the amount of installments or
overdue installments together with interest due on that loan every month to his saving bank account
or current account as the case may be.
9. The bank should also obtain the following documents from the borrower :-
f) Salary certificate/proof of income
g) Loan agreement.
h) Demand Promissory Note
i) An authority letter from the borrower under Section 39 of Punjab Cooperative
Societies Act, 1961 for repayment of loan in case the borrower fails o repay the loan.
j) An authority letter from the borrower to recovery the installment/interest by debiting
to saving/current account.
k) Letter of waiver.
l) Post dated cheques equal to number of installments should be obtained from the
borrower.
10. The bank should take original invoice from the dealer and then the loan amount together
with margin money should be paid through Bank Draft directly to the dealer to avoid
misutilisation of the loan.
11. The loan should be advanced against hypothecation of the asset/assets acquired/to be
acquired, if any.
12. At present rate of consumer loan is 14% and further it shall be determined by
financing bank from time to time and debited to loan account. Interest is charged as contract made
with the loanee. Penal interest @ 2% over and above the normal rate shall be charged in case of
default, on the default amount for the default period. 0.5%concession is allowed to women
CASH CREDIT FACILITY TO TRADERS & OTHERS
Name of the Cash Credit Facility to Traders and Others

Scheme
Rule No.1 These Rules shall be called The Punjab State Coop.Bank / Central Coop.Bank rules
for granting Cash Credit Facility to Traders and others.
Rule No.2 i) The bank means The Punjab State Coop.Bank Ltd., or Central Coop.Banks of
Punjab.
The Board of Directors and the Executive Committee means the Board of Directors
and Executive Committee constituted under the Bye-laws of the Bank.
ii) Authorised Officer means the Officer authorized by the BOD/Executive
Committee of the Bank to receive and take appropriate action on the applications
for loans under the scheme.
iii) Borrower means and individual, sole proprietor, firm, cooperative society or a
company doing manufacturing/ trading business/providing services having an
assured income.
(amended vide RCS Circular letter No.Credit/CA-2/139/14923 dated 11.10.07)
iv) Cooperative Societies Act means The Punjab Cooperative Societies Act,1961 as
amended from time to time.
v) Cooperative Societies Rules means the Punjab Cooperative Societies Rule, 1963,
as amended from time to time.
vi) Bye-laws means the bye-laws of the Fatehgarh Sahib Central Cooperative Bank
Ltd., Sirhind.
vii) Registration means the Registration under the Shops Act or under the Companys
Act.
Rule No.3 Cash Credit Facility under the Scheme shall be granted for meeting working capital
requirements.
Rule No.4 The applicant should not have availed cash credit facility from any other financial
institution for the purpose.
Rule No.5 The maximum amount of Cash Credit Limit under these Rules shall be Rs.25 lac.
Rule No.6 The application for cash credit limit shall be made by the borrower on the prescribed
form of the bank.
Rule No.7 The sanctioning of the Cash-Credit by the Bank shall be made only in case it is
satisfied of the viability of the Project /proposal.
Rule No.8 The borrower shall hypothecate in favour of the bank the entire current assets created
besides collateral security of the value of 150% of the Cash Credit Limit sanctioned.
Limit upto Rs.50,000/- may be granted with two good sureties only and
hypothecation of stock/assets with the Bank.
Rule No.9 The borrower shall produce clear marketable title to the property to be mortgaged in
favour of the bank to the satisfaction of the bank.
Rule No.10 The licenced contractors approaching the Bank for Cash-Credit Facility should give a
power of Attorney in favour of the Bank to receive the cheque from Government/
Quassi Govt. Institutions and to encash the same.
Rule No.11 The Bank shall be at liberty to call for additional/collateral security/securities at any
time.
Rule No.12 The legal expenses, fee, registration charges and other incidental charges incurred in
connection with the financing shall be borne by the borrower.
Rule No.13 At present rate of cash credit traders is 12% and further it shall be determined by
financing bank from time to time and debited to loan account. Interest is charged as
contract made with the loanee. Penal interest @ 2% over and above the normal rate
shall be charged in case of default, on the default amount for the default period.
0.5% concession is allowed to women
Rule No.14 The borrower shall maintain the books of account as prescribed by the bank.
Borrower shall furnish stock statement as per following periodicity indicating the
opening stock, purchases, sales and closing stock.
Amount of limit upto Rs.1 lac Quarterly
Above Rs.1 lac Monthly
Failure to furnish stock statements will attract penal interest @ 2% p.a. on utstanding
amount for period of non-submission of statements.
Rule No.15 The Cash Credit Limit sanctioned should be kept current by regular drawls and
repayments. In other words, the business transaction of the unit should be deposited
in the Cash Credit Account.
Rule No.16 The Cash Credit Limit shall be sanctioned for a period of one year. Renewal of the
Cash Credit Limit will be allowed by the bank at its discretion based on the
performance of the unit and also the operation in the cash credit limit account.
Aggregate credits during the year in the limit account should be two times of the
sanctioned limit or highest availed limit.
Rule No.17 The borrower should insure the assets created out of loan and the policy should be in
the joint name of the borrower and the bank with agreed bank clause.
Rule No.18 The Borrower shall execute all the loan documents prescribed by the bank.
Rule No.19 Deleted.
Rule No.20 The borrower shall agree to be bound by the provisions regarding arbitration in the
cooperative Societies Act and Cooperative Societies Rules.
Rule No.21 The Borrower should become the nominal member of the bank by paying necessary
membership fee as fixed by the Bank.
Rule No.22 Whenever the borrower fails to discharge the loan as agreed upon the Bank should
take legal action against him to recover the loan outstanding with interest and cost.
The borrower shall be liable to make good of the expenses and legal charges that has
been incurred by the Bank in this regard.
Rule No.23 Processing fee @ 0.25% shall be charged at the time of sanctioning of the C.C. limit.
These charges of 0.25% shall be levied every year.
Rule No.24 Margin at the rate of 25% shall be maintained on the present value of stock.

VEHICLE LOAN
Rule No.1 These rules are called the rules for granting of Vehicle Loan to individuals, firms,
HUF, Companies, Trust and Cooperative Societies.
Rule No.2 Purpose of loan is to provide financial assistance to purchase new vehicles for
business and personal use.
Rule No.3 The maximum amount that can be sanctioned under the scheme is limited to Rs.10.00
lac or 80% of value of the vehicle whichever is less.
Rule No.4 The cost of the vehicle shall be paid directly by the Bank to the suppliers or
authorized dealers on receipt of intimation from the dealer and instructions from the
applicant.
Rule No.5 The application for loans should be made in the form prescribed by the Bank.
Rule No.6 Wherever sanctioning authority is satisfied, loans upto 60% of the cost of vehicle
shall be granted against the comprehensive insurance and lien in the registration
certificate. In case loan is above 60% of the cost of vehicle (subject to 80% of the
cost as stipulated in the rules), two good sureties shall also be taken in addition to the
insurance and lien in registration certificate in case of buses and trucks for
commercial use.
Rule No.7 At present rate of vehicle loan is 13% and further it shall be determined by financing
bank from time to time and debited to loan account. Interest is charged as contract
made with the loanee. Penal interest @ 2% over and above the normal rate shall be
charged in case of default, on the default amount for the default period. 0.5%
concession is allowed to women
Rule No.8 The vehicle should be comprehensively insured for the full value covering all risks
and the policy should be in the joint names of borrower and the bank with agreed
bank clause.
Rule No. 9 The charge of the bank on the vehicle in the form of registration should be registered
with the registering authority within 90 days of purchase of vehicle, failing which
additional interest at the rate of 3% shall be charged.
Rule No.10 The repayment of loan should be in the form of monthly installments to be repaid
within 5 years. However farmers may opt for half-yearly installments due on 30 th
June and 31st December. One month moratorium period shall be allowed under the
scheme.
Rule No.11 The Bank reserves the right to proceed against the borrower and sureties in the event
of default in the repayment of loan installment/s.
Rule No.12 The borrower should agree to produce the vehicle for periodical inspection to ensure
that it is maintained in satisfactory condition.
Rule No.13 The borrower should agree to be bound by arbitration provisions in the Punjab
Cooperative Societies Act 1961 and the Rules framed thereunder.
Rule No.14 The borrower should give an undertaking stating that all the terms and conditions
stipulated by the Bank while sanctioning the loan and those conditions that may be
stipulated in future by the bank are acceptable to him.
SCHEME FOR GRANTING OF LOAN AGAINST PROPERTY
1. Short title, extent and commencement:-
i. This scheme may be called Scheme of LOAN AGAINST PROPERTY(LAP)

ii. The scheme shall be implemented through the branches of the Punjab State
Cooperative Bank Limited & Central Cooperative Banks only through an
urban branch in the State of Punjab and shall be available to Individuals.
Beneficiaries should be enrolled as Nominal Member of the bank. It shall
come into force from the date as the Registrar, Coop.Societies, Punjab,
Chandigarh decides.
2. Definitions : In this Scheme unless the context otherwise requires :

a) Act means, the Punjab Cooperative Societies Act 1961 as amended from
time to time.
b) Bye-laws means the registered byelaws of the State / Central Cooperative
Banks concerned.
whatever name called to which the management of the affairs of the bank
is entrusted.
g) Officers means the President, Vice President, Chairman, Vice Chairman,
Managing Director, Manager, Liquidator and Administrator includes any
other person empowered under the rules or the bye laws to give direction
in regard to the business of the bank.
j) Family member means Spouse, Son, Sons wife, Unmarried Daughter.
3. Purpose
The scheme is for providing finance against mortgage of immovable

property situated at Chandigarh, U.T. Periphery by Punjab State Cooperative bank
and at urban areas (within Municipal Limit) by Central Cooperative bank through
its urban branches, and is designed to offer instant solutions relating to socio-
economic needs such as childrens higher education, travel, daughters
marriage,medical emergencies, etc. The loan will, however be not avail for
speculative purpose.
4. Eligibility
1. An individual residing in and having a self occupied immovable property

in the area mentioned in the Purppse Clause no.3 may apply for the loan in
his individual name or alongwith another person being joint owner of the
land/property as co-applicant. The applicant and co-applicant, if any, will
be enrolled as nominal members of the bank under the Act, Rules and Bye-
laws. The age of borrower should not exceed 65 years at the time of
applying for the loan.
2. Employees of the PSCB/DCCB can avail this loan against property
already mortgaged with the bank by creating second charge of property
subject to the repaying capacity of the employee as per the scheme of loan.
5. Type and Quantum of Loan:
The loan can be given in the shape of Term Loan or Credit Limit. Loan
can also be given for both purposes i.e. partly for term loan and partly for credit
limit subject to quantum of loan for both the loan and limit will not exceed from
Rs.25.00 lacs. Quantum of loan will be three times of net annual income or 50%
of value of property, whichever is less. However maximum loan amount will be
Rs.25 lacs. Income of family member can be considered for the purpose of
eligibility of loan.
6. Interest:
Interest shall be charged @ 13% p.a. compounded quarterly or as may be revised

by the bank from time to time. In case of defaults a penal interest @ 2% p.a. over
and above the normal rate on the default amount and default period shall also be
charged. 0.5% concession is allowed to women
7. Security:
a) Security for the loan is a first mortgage of the property, against which
loan/limit is granted, by way of deposit of title deeds. The valuation of the
property will be based on the basis of last reserve price of the auction fixed
by the Chandigarh Administration. For the properties situated out side the
Chandigarh, it will be the official rates of registration fixed for the same
by respective Municipal or Registration Authority or current market value
whichever is lower.
b) Suitable one guarantee acceptable to the bank. The guarantor should have
its net worth equal to or more than the loan amount to advanced. In case
the income of family member is taken while calculating loan eligibility,
he/she must be taken as guarantor.
c) Post dated cheques for the months for which repayment of term loan
option is due.
8. Repayment of Loan:
a) Loan together with interest is repayable in maximum 72 equal monthly

installments.
b) Overdraft facility is to be renewed/reviewed annually.
9. Processing Fees:
0.5% of the sanctioned amount shall be charged. In case of limit of 0.25% will be
levied every year on the credit limit.
10. Documentation:
a. Loan application Form.

b. Loan Agreement.
c. D.P. Note.
d. Mortgage Deed.
e. Non-Encumbrance Certificate.
f. Letter of lien and set off.
g. Map and Current Valuation Report of the property from Govt. Approved
Architect.
h. Search report and legal opinion along with the photo.
i. Letter of continuity
j. Original Title Deed.
11. Insurance:
Comprehensive Insurance in the joint names of the borrower and the bank shall be
made of the property mortgaged against fire, riots, earthquake, lightning, floods,
etc. In case of default bank will be at liberty to get a policy renewed by debit to
loan account of the borrower.
12. Documents required from applicants:
Documents required from Salaried Individuals
 Proof of Residence Any one of Ration Card/Telephone Bill/Electricity

Bill/Voters Card.
 Proof of Identity Any one of Voters Card/Drivers License/Employer
Card/Passport/PAN Card.
 Latest Bank Statement/Passbook (where salary/Income is credited for past
6 months).
 Latest 3 months Salary Slip with all deductions & Form 16 for last 2 years.
 Copies of all Property Documents.
 Self attested recent passport size photographs of the applicant and co-
applicant (two).
 Copy of Income-tax Returns for last two years.
Documents required from the non-salaried individuals
 Income proof.
 Proof of Residence Any one of Ration Card/Telephone Bill/Electricity
Bill/Voters Card.
 Proof of Identity Any one of Voters Card/Drivers License/Employer
Card/PAN Card.
 Latest Bank Statement/Passbook (where salary/Income is credited for past
6 months).
 Copies of all Property Documents.
 Copy of Income Tax Returns for last two years.
13. Disputes
If at any stage any dispute arises, it will be settled/referred under the Punjab
Cooperative Societies Act 1961 or any other relevant act at the sole discretion of
the Bank.
SECOND HAND VEHICLE LOAN SCHEME

In the modern era there is a heavy demand for purchase of second hand vehicles
and the banks have surplus loan-able funds to diversify the loan portfolio and to
provide financial assistance to the borrowers for purchase of second hand vehicle,
this scheme has been diversified.
A. Short title, extent and commencement:-
a. This scheme may be called Second Hand Vehicle Loan Scheme to

individual sole proprietor professional and partnership concern
residing in the area of operation of the lending bank by the State
and Central Banks as the case may be.
b. The scheme shall be implemented through the branches of the State
and Central Coop. Banks in UT and in the State of Punjab.
c. It shall come into force from the date of approval by the Registrar
Coop.Societies Punjab Chandigarh.
d. The vehicle to be purchased by the loanee should not be more than
3 years old, should be accident free, one time road tax paid,
bearing Registration Number of U.T. Chandigarh or the State of
Punjab.
B. Definitions :
In this Scheme unless the context otherwise requires:

a) Act means, the Punjab Cooperative Societies Act 1961 as amended from
time to time.
b) Bye-laws means the registered byelaws of the State / Central Cooperative
Banks concerned.
whatever name called to which the management of the affairs of the bank
is entrusted.
g) Officers means the President, Vice President, Chairman, Vice Chairman,
Managing Director, Manager, Liquidator and Administrator includes any
other person empowered under the rules or the bye laws to give direction
in regard to the business of the bank.
C. Purpose
Loan shall be advanced for the purchase of second hand vehicle such as
car, jeep, sumo, qualis, etc. for personal/public use.
D. Eligibility
An individual, sole proprietor, professional and partnership concern

residing in the area of operation having permanent account number provided by
the Income Tax authority in urban areas and in case of rural area having at least 5
acres of agriculture land and should not be defaulter. The applicant will be
enrolled as nominal member of the bank under the Act, Rules and Bye-laws.
E. Quantum of Loan:
The quantum of loan shall depend upon the model and present value of the
vehicle. Present value shall be the value as provided by Sah & Sanghi in the
current price Index and also available on Website
htpp.wwwautomartindia.com/Sah & Sanghi priceindex.asp or the value approved
by the registered surveyor of any GIC with the condition that the insurer has to get
insurance cover from the concerned Insurance Company on whose list the name
of the surveyor appears, which is lowest shall be the quantum of loan. The
maximum loan amount shall be Rs.5 lacs or 75% of the assessed price of the
vehicle whichever is less.
F. Interest:
At present rate of second hand vehicle loan is 13% and further it shall
be determined by financing bank from time to time and debited to loan account.
Interest is charged as contract made with the loanee. Penal interest @ 2% over
and above the normal rate shall be charged in case of default, on the default
G. Period of Loan/Repayment of Loan
Maximum period of loan shall be five years. Repayment of the loan shall,
be in monthly equated installment. In case of urban borrowers and half yearly
equated in case of rural borrowers due on 30th June and 31st December.
Moratorium period of one month shall be allowed under the scheme.
H. Security
The security for the loan is 1 st Hypothecation of the Vehicle in the name
of the bank entered in RC of the vehicle. Two good sureties residing in area of
operation of the bank and having a PAN Card in case of urban areas and two
sureties of the status of borrower in case of rural area. The sureties shall be
enrolled as nominal member of the bank under the Act.
OR
A collateral security to the extent of 100% of loan in the shape of
assignment of life insurance policy, pledge of NSCs, KVPs, Term Deposits of own
bank, in case the borrower is not willing to give sureties.
I. Disbursal of Loan
The loan will be disbursed after the appraisal of all legal documentation
completed and borrower having deposited his share of margin in the SB account.
The disbursement will be third party payment by way of banker cheque/Demand
Draft in the name of the seller (owner of the vehicle) delivered through and under
receipt from borrower.
J. Fee and Other Charges

A processing fee of 0.25% of the loan amount sanctioned shall be charged.
K. Documentation
Documents
1) Identity proof
2) Residential proof
3) Two self attested recent passport size photographs of the applicant and
sureties each
4) Photocopy of the PAN
5) Copy of Income Tax Return for last three years duly acknowledged by
ITO
6) Photocopy of the Driving License
7) A photocopy of the RC of the Vehicle and case of rural people copy of
Fard, Jamabandi.
b. Loan application form
c. Loan agreement
d. DP Note
e. Hypothecation deed/Collateral Security/Agreement Bond from
Sureties.
f. Agreement of Sale.
g. Certificate of present value of car assessed by Surveyor of company
guide or as determined on the basis of guidelines of the Punjab Govt.
on the Subject.
L. Insurance
Comprehensive insurance in the joint names of the borrower and the bank
shall be made at the cost of the borrower. In case of default bank will be at liberty
to get a policy renewed by debiting to loan account of the borrower.
M. Dispute
If at any stage any dispute raised, it shall be settled/referred for arbitration
under the provisions of Punjab Coop.Societies Act. 1961 and rules frames there
under and bye-laws of the bank.
PROFITABILITY
During 1996-97 the prudential norms were made

applicable to the CCB also. As a result, the Bank had to make huge provisions
to the extent of Rs.420.01lacs. As such the Bank has fully provided against all
its bad debts. The Bank earned a profit of Rs.185.22lacs during 1997-98and
previous three years profit is as under
Net Profits (Rs in lacs)

Profit As on As on As on Growth Rate Growth Rate
31/03/2006 31/03/2007 31/03/2008 (31/03/06 To (31/03/07 To
31/03/2007) 31/03/2008)
Before Tax 769.68 249.16 138.39 - 67.62 - 44.45
After Tax 769.68 83.92 107.49 - 89.09 28.08
Interest Paid and Received (Rs.in

lacs)
Outstanding Outstanding Outstanding Growth Rate Growth Rate
Particulars As on As on As on (31/03/06 to (31/03/07 to
31/03/2006 31/03/2007 31/03/2008 31/03/2007) 31/03/2008)
Interest Paid
1133.21 1155.83 1476.83 2.00 27.77
on deposits
Interest Paid
1624.24 1469.06 2038.50 -9.55 38.76
on Borrowings
Interest.
received on 3937.81 3650.62 4487.98 -7.29 22.94
loans & Adv.
Interest./Divid
end Received
475.28 503.29 547.98 5.89 8.88
on
Investments.
Cost of Management (Rs.in lacs)
As on As on As on Growth Rate Growth Rate

31/03/2006 31/03/2007 31/03/2008 (31/03/06 to (31/03/07 to
31/03/2007) 31/03/2008)
Establishment Cost 770.70 888.91 899.44 15.34 1.18
Other Cost 172.14 178.57 208.03 3.74 16.50
Total 942.84 1067.48 1107.47 13.22 3.75
The financial margin of the bank is reducing as per below statement
Financing Marginal/Interest Spread (Rs.in lacs)
During During During Growth Growth

01/04/05 01/04/06 01/04/07 Rate Rate
to to to 31/03/06 31/03/07
31/03/06 31/03/07 31/03/08 to 31/3/07 to 31/3/08
Average Cost of Borrowing 6.24 4.77 5.43 -23.56 13.83
Average Cost of Deposits 4.95 4.85 5.91 - 2.02 21.85
Weighted Average Cost of Funds 4.96 4.22 5.00 -14.92 18.48
Average Yield on Loans & 8.82 7.21 7.62 -18.25 5.68
Advances
Average yield on Investment 7.71 7.57 8.48 -1.82 12.02
Weighted Average yield on Assets 7.93 6.67 7.17 -15.89 7.50
Financing Margin 2.97 2.45 2.17 -17.51 -11.42
Net Margin 0.87 0.34 0.21 -60.92 -38.23
BRANCHES
A part from its Head Office at Patiala, the bank has been in the
service of the people through a network of its 43 branches spread all over the
district of Patiala. 16 out the 43 branches of the bank are working at the focal
points. Earlier 8 branches were shifted on 14-3-1993 to CCB Fatehgarh Sahib on
re-organization of the district. 3 branches were shifted on 1-10-2006 to CCB SAS
Nagar Mohali.
Branch Analysis (Rs.in lacs)
As on As on As on Growth Rate Growth Rate

31/03/2006 31/03/2007 31/03/2008 (31/03/06 to (31/03/07 to
31/03/2007) 31/03/2008)
Total No. of Branches 47 44 44 -- --
Deposit Per Branch 540.59 546.06 635.08 1.01 16.30
Loans and Advances
1034.24 1307.40 1514.42 26.41 15.83
per Branch
Business per Branch 1574.83 1853.46 2149.51 17.69 15.97
Intt. Income Per Br. 93.90 94.40 114.45 0.53 21.24
Non Fund Income Per
1.21 1.41 1.30 16.53 -7.80
Branch
Cost of Management
20.06 24.26 25.17 20.94 3.75
Per Branch
Profit Per Branch 16.37 1.91 2.44 -55.04 27.75
CONTENTS
Chapter No Chapter Name Page No
1 Introduction and Brief 2-9
History
2 Resources and Funds 10-11
3 Deposits Accounts 12-28
4 Department working at Head 29-33
Office
5 Cash and Investment 34
6 Loan and Advances 35-40
7 Loan Schemes 41-76
8 Profitability and Branch 77-79
Analysis
9 Suggestions 80
Chapter No.1
Introducti
on and
Brief
History
Suggestions
1. More Branches should be opened in the Rural and Urban Areas
to Achieve the targets. Samana Sub division is neglected in this
Area as only Samana and Gajewas Branches are functing.
2. Since 1980 no recruitment made in this Bank. Staff should be
recruited for smooth working.
3. Branches may be computerized.
4. Rate of Interest may be reviewed periodically as Mai Bhago
Scheme Advances at Rate of 8.5% Bank borrowers funds from
Apex Bank at the rate of 10.5%.
5. 11 Single men Branches are functioning so, there is a great
operation risk in the Bank.
6. Individual Loans overdue are increasing in the Loan Portfolio
N.F.S/C.C.T. / Consumer Loan.
7. ATM May be installed, locker facility is provided in all the
Branches.
For Detail/Information. Malkit Singh 99143-49498

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PROJECT REPORT

On completion of my project work I want to thank all the employees of

In simple words a Bank refers to an Institution that deals in money &

A tree is known by its fruits as well as Banks known by his

Instead of secondary functions banks gave some other

ORIGIN AND GROWTH OF CO-OPERATIVE BANKS

THE PATIALA CENTRAL CO-OPERATIVE BANK LTD.

 Name of the Society: - The Patiala Central Cooperative Bank Ltd

 Area of Operation :- As per bye-law no. 3, the

Under the Indian Co-operative Societies Act-1912 of the P.C.C.B.

At present Patiala District has 974- villages with 3,70000

The main resources of the bank as on 31/03/2008 as under

Share Capital Rs. 966.23 lacs

b) Bad & Doubtful debt fund Rs 1062.71 lacs

c) Agriculture credit stabilization fund Rs 501.45 lacs

d) Building funds Rs 106.32 lacs

e) Cooperative education and propaganda fund Rs 41.71 lacs

f) Common good fund Rs 92.22 lacs

g) Primary vikas fund Rs 50.52 lacs

h) Cooperative development fund Rs 33.99 lacs

i) Pension fund Rs 14.69 lacs

j) Share transfer fund Rs 25.20 lacs

k) Gratuity fund Rs 296.78 lacs

l) Provision against non performing assets Rs 1085.70 lacs

Average Deposits: To be calculated on monthly outstanding balances basis

Rate of Interest on Deposit

Existing Rate New Rate

Saving Bank Accounts:

The formula of interest calculation is Total Product * Rate of interest/1200

Hence the interest is 17370 * 3.5/1200 = Rs 50.66 interest so calculated is credited

Debit: Interest paid on deposits Rs 51

Inoperative Accounts  Separate Ledger

SEHKARI BANK BIMA YOZNA

The minimum balance of Rs 1000 is to be maintained in the account with no maximum

Sehkari Bank Bima Yojna Register

As and when any member opens new account or existing

Statement to Head Office

The branches shall send the statement along with draft/advise to

Procedure for Claim

Documents required with claims:

FIXED DEPOSIT AND LONG TERM DEPOSIT

Fixed Deposit is a deposit scheme wherein a depositor agrees to receive back

Long Term Deposit

Account opening form

Payment of interest quarterly

ISSUANCE OF FIXED DEPOSIT/ LONG TERM DEPOSIT RECEIPT

Preparation of credit voucher and receipt for Term Deposits

1. Date to be mentioned in Term Deposit Receipt

2. Name to be mentioned on Term Deposit Receipt

3. Period of deposit on Term Deposit Receipt

4. Rate of Interest on Term Deposit Receipt

6. Interest runs from

Term Deposit Receipt- typed or written

Number in pay-in-slips and account opening form

Signature on deposit receipt

The deposit receipt should be signed by two authorized officer after

Acknowledgement from depositor

Matured amount to be written on long term deposit receipts

Entry in fixed deposit & long term deposit ledgers

Interest Payment Register

Payment of interest on fixed deposits

b) Where the deposit is less then a year

A recurring deposit is accepted with a minimum monthly installment of Rs 10/- in

Inoperative Accounts Separate Ledger

 To maintain monthly statements etc; like as LIC, Income Tax, GSLI

5. Tenure Maximum 5 years.