A Project Report on The Surat Peoples Bank Submitted to BRCM College of Business Administration

Submitted by

Mistry Himanshu M

Date: 25th June, 2012

DECLARATION:

We, mr. Himanshu mistry hereby declare that the study titled General Banking studied at The Surat Peoples Co-o We also assure that the report is prepared in partial fulfillment of Bachelor in Business Administration, Full Time program at BRCM college of Business Administration, Veer Narmad South Gujarat University, Surat and has not been produced before any other university or college or institution.

Place: Surat Date: 25-06-2012

ACKNOWLEDGEMENT

First of all we are profoundly grateful to BRCM college of business administration, for giving us such an opportunity to make a report that has helped us understand the applications of what I have learnt, in professional life.

We would especially like to thank and express my cordial gratitude to Mr. Jagdishbhai Mehta and Shri. Harish Mistry (Asst. General Manager) who provided me this opportunity to work in such a prestigious organization, which enhanced my knowledge base and allowed me to understand the practical application of the various aspect of Banking Sector

We are thankful to Mr. Vaibhav Dalal, who guided me at every step and solved my difficulties at the The Surat Peoples Co-operative Bank, during my internship time.

Morover, we are deeply thankful to our faculty Mr. Mehul Mehta for all his help and support in form of resources sharing, guiding, motivating and helping me to complete and compile my project report.

Last but not least we are extremely thankful to our parents, family members and friends for their help and cooperation to overcome my difficulties during our report preparation.

EXECUTIVE SUMMARY

The report contains introduction to banks, which includes past present and future of banks and challenging for banking industry in future. Banks plays the most important role in providing various banking services. Earlier the banks were engaged in accepting and lending money. But in the recent past the scope of services provided by the banks has increased. The growing completion requires prompt and efficient services to the customer at reasonable cost. These days banks aim to provide maximum satisfaction to their customer. The next part of the report consist the knowledge about the cooperative banks in India. It includes history of cooperative bank in Indianites features and services provide by it in rural and urban sector. The structure of cooperative bank in India also include in it. Then a brief introduction of The Surat People Cooperative Bank comes in next part of the project which consist the history, vision, mission, management team and objective made by chairman. The last year financial position of the bank is also included in this part.

Next section consist the loan and credit facility provided by the bank. This section consist various loan provided by the bank the detail regarding those loans, procedure to recover it, actual position of the bank in loan area, and the recommendation and the various proposals that the cooperative could apply for maintaining its position in the region and to face the future challenges and the suggestion for improvement. Final section of project consis, conclusion and bibliography.

Index Introduction Marketing department Production department Financial department Human Resource department Analysis 06 45 58 108 114 142

WHAT IS BANKING?
Banking is the traditional sense in the business of accepting deposits of money from public for the purpose of lending and investment. These deposits can have a distinct feature like being withdrawn able by cheques, which no other financial institution can offer. In addition, banks also offer financial services, which include: The issue of demand draft & travelers cheque. Credit cards. Collection of cheques, bills of exchange. Safe deposit locker Custodian service Investment and Insurance service.

The business of banking is highly regulated since banks deals with money offered to them by the public and ensuring the safety of this public money is one of the prime responsibilities of any bank. That is why banks are expected to be prudent in their leading and investment activities. Every bank has a compliance department, which is responsible to ensure that all the services offered by the bank, and the processes followed are in compliance with the local regulations and Banks corporate policy.

The major regulations and act govern the banking business are: Banking Regulation Act, 1949 Foreign Exchange Management Act, 1999 Indian Contract Act Negotiable Instruments, 1881

Banks lends money either for productive purposes to individual, firms, corporate etc: for buying house property, cars and other consumer durables and for investment purposes to individuals and others. However, banks do not finance any speculative activity. Lending is risk taking. The depositors of banks are also assured of safety of their money by developing some percentage of deposit in statuary Reserve likes SLR & CLR.

STANDARD ACTIVITIES OF BANK

Bank act as payment agents by conducting checking or current accounts for customers, paying cheques drawn by customers on the bank, and collecting cheques deposited to customers current account. Banks also enable customer payments via other payment method such as telegraphic transfer, and ATM.

Banks borrows money by accepting funds deposited on current accounts, by accepting term deposits, and by issuing debt securities such as banknotes and bonds. Bank lends money by making advances to customer on current account, by making installment loans, and by investing it in marketable debt securities and other form of money lending. Banks provide almost all payment services, and a bank account is considered independable by most businesses, individual and government. Non-banks that provide payment service such as remittance companies are normally considered an adequate substitute for having a bank account. Banks borrows most fund from households and non-financial businesses, and lend most fund to households and non-financial businesses, but not bank lender provide a significant and in many cases adequate substitute for bank loans, and money market funds, cash management trusts and other non-bank financial institution in many cases provide an adequate substitute to banks for lending saving too.

REVENUE GENERATION
A bank can generate revenue in a variety of different ways including interest, transaction fees and financial advice. The main method is via charging interest on capital it lends out to customer. The bank profit from the differential between the level of interest it pays for deposits and other sources of funds, and the level of interest it charges in its lending activities.

The difference is referred to as the spread between the cost of funds and the loan interest rate. Historically, profitability from lending activities has been cyclical and dependant on the needs and strength on loan customers and the stage of the economic cycle. Fees and financial advice constitute a more stable revenue stream and banks have therefore placed more emphasis on these revenue lines to smooth their financial performance.

RISK AND CAPITAL

Banks face a number of risks in order to conduct their business, and how well these risks are managed and understood is a key driver behind profitability, and how much capital a bank is required to hold. Some of the main risks faced by banks include: Credit risk: risk of loss arising from a borrower who does not make payment as promised. Liquidity risk: risk that a given security or asset cannot be traded quickly enough in the market to prevent a loss (or make the required profit) Market risk: risk that the value of the portfolio, either an investment portfolio or a trading portfolio, will decrease due to the change in value of the market risk factors. Operational risk: risk arising from execution of a companys business.

The capital requirement in a bank regulation, which sets a frame work on how banks and depository institutions must handle their capital. The categorization of assets and capital is highly standardized so that it can be risk weighted.

 ECONOMIC FUNCTION OF BANKS :The economic functions of banks include:

1. Issue of money, in the form of bank notes and current account subject to cheques or
payment at customers order. These claims on banks can act as money because they are negotiable or repayable on demand, and hence valued at par. They are effectively transferable by merely delivery, in the case of banknotes, or by drawing cheques that the payee may bank or cask.

2. Netting and settlement of payments- banks acts as both collection and paying
agents for customers, participating in inter bank clearing and settlement systems to collect, present, be presented with, and pay payment instruments. This enables banks to economies on reserve held for settlement of payment, since inward and outward payments offset each other. It also enables the offsetting of payment flows between geographical areas, reducing the cost of settlement between them.

3. Credit intermediation-banks borrow and lend back-to-back on their own account as

middle men.

4. Credit quality improvement- banks lends money to ordinary commercial and

personal borrowers (ordinary credit quality), but are high quality borrowers. The improvement comes from diversification of banks assets and capital which provide a buffer to absorb losses without defaulting on its obligations. However, the banknotes and deposit are generally unsecured; if the banks into difficulty and pledge assets as security, to rise the

funding it needs to continue to operate, this puts the note holders and depositors in an economically subordinated position.

BANKING IN INDIA:Banking means accepting for the purpose of lending or investing of deposits of money from the public repayable on demand or otherwise one withdraw able by cheques, draft or otherwise. Banking in India has its origin as early as Vedic period. It is believed that the transaction from money lending to money banking must have occurred even before Manu, the greater Hindu Jurist, who has developed the sanction of his work o deposits and advances and laid down the rules relating to rate of interest, during Mugal Period, the native bankers played a very important role in lending money and financing foreign trade and commerce. During the days of the east-India company, it was the turn of the agency house to carry on banking business the general bank of India was the first joint stock bank to be established in the year 1786. The others that followed were the bank of Hindustan and The Bengal Bank. The Bank of Hindustan is reported to have continued till 1906 while the other two failed in the meantime. In the first half of the 19th century the east-India company has established three banks, The Bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Madras in 1843.

These three banks are also known as the presidency banks were amalgamated in 1920 and a new bank- the imperial Bank of India established in 27th January 1921. With the passing of the State Bank Act 1955 the under taking of the imperial bank of India is taken over by newly constituted State Bank of India.

NATIONALIZATION
The GOI issued an ordinary and nationalized the 14 largest commercial banks with effect from the midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, describes the steps as a masterstroke of political sagacity. Within two weeks of issue of the ordinary the parliament passed the Banking companies (acquisition and transfer of undertaking) bill, and it received the precedential approved on 9th August 1969. A second dose of nationalization of 6 more commercial banks followed in1980. The stated reason for the nationalization was to give the government more control of credit delivery. With the second dose of nationalization, the GOI controlled around 91% of the banking business of India. Later on, in the year 1993, the government merged New Bank of India with Punjab National Bank. It was the only merger between nationalizes banks and resulted in reduction of the number of nationalized banks from 20 to 19. After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy.

LIBERALIZATION

In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as new generation tech-svvy banks, and include Global Trust Bank (the first of such new generation banks to be set in up), which later amalgamated with Oriental Bank of Commerce, Axis Bank (earlier at UTI bank), ICICI Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has rapid growth with strong contribution from the entire three sectors of banks, namely, government banks, private banks and foreign banks. The next stage for the Indian banking has been set up with the proposed relaxation in the norms for foreign direct investment, where all foreign investors in banks may be giving voting rights which could exceeds the present cap of 10%, at present it has gone upto 74% with restriction. The new policy shocks the banking sector in India completely. Bankers, till this time, were used to 4-6-4 method (borrow at 4%, lend at 6%, go home at 4%) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this lead to the retail boom in India. People not just demanded more from their banks but received more. In 2007, banking in India generally fairly mature in terms of supply, product range and reach even through in rural India still remains a challenge for the private sector and foreign Banks. In terms of quality of assets and capital adequacy. Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparitable economies in its region. The Reserve Bank of India is an anonymous body, with minimal pressure from the

government. The stated policy of the bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true. With the growth in the Indian economy expected to be strong for quite some time-especially in its service sector-the demand for banking services, especially retail banking, mortgage and investment service are expected to be strong. One may also expect M & As, takeovers, and assets sales. In March 2006, The Reserve Bank of India allowed Warburg Pinups to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in the private sector banks since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them. In the Indian Banking industry some of the private sector Banks operating are IDBI Bank, ING Vyasa Bank, SBI Commercial and International Bank Ltd, Bank of Rajasthan Ltd. And banks from the public sector include Punjab National Bank, Vijaya Bank, UCO Bank, Oriental Bank, Allahabad Bank among others. ANZ Grindlays Bank, ABN-AMRO Bank, American Express Bank Ltd, Citibank are some of the foreign banks operating in the Indian Banking Industry.

INDIAN BANKING INDUSTRY

The Indian Banking system has the Reserve Bank of India (RBI) as the apex body for all matters relating to the Banking system. It is combination of Banks of India and bankers to all other banks as well.

The Indian Banking industry, which is governed by Banking Regulation Act of India, 1949 can be broadly classified into two major categories, non-scheduled banks and scheduled banks.

Schedule Banks:These banks must have paid-up capital and reserve of less than Rs. 5000000. They must satisfy the RBI then its affairs are most conducted in a manner detrimental to the interest of its depositors. These are further classified as follows: State co-operative Banks Commercial Banks

Scheduled bank compromise commercial banks and the co-operative banks. In terms of ownership, commercial banks can be further grouped into nationalized banks, the State Bank of India and its group Banks, regional rural banks and private sector banks. These banks have over 67000 branches spread across the country in every city and villages of all nock and corner of the land.

Non-Schedule Banks:These are banks, which are not included in the second schedule of the Banking Regulation Act, 1965. It means they do not satisfy the conditions laid down by that schedule. They are further classifying as back: Central co-operative banks and primary credit societies Commercial banks

Commercial banks
Commercial banks in India are broadly categorized into Scheduled Commercial Banks and Unscheduled Commercial Banks. The Scheduled Commercial Banks have been listed under the Second Schedule of the Reserve Bank of India Act, 1934. The selection measure for listing a bank under the second schedule was provided in section 42 (60 of the Reserve Bank of India Act, 1934). The modern commercial banks in India cater to the financial needs of the different sectors. The main function of the commercial banks compromise: Transfer of funds Acceptance of deposits Offering those deposits as loans for the establishment of industries Purchase of houses, equipments, capital investment purposes etc. The banks are allowed to act as trustees. On account of the knowledge of the financial market of India the financial companies are attracted towards them to act as trustees to take the responsibility of the security for the financial instrument like a debenture. The Indian Government presently hired the commercial banks for various purposes like tax collection and refunds, payment of pension etc.

CURRENT SCENARIO
The industry is currently in a transition phase. On the one hand, the PSBs, which are mainstay of the Indian Banking System, are in the process of shedding their flab in terms of

excessive manpower, excessive non-performing assets (NPAs) and excessive governmental equity, while on the other hand the private sector banks consolidating themselves through mergers and acquisition. PSBs, which current account for more than 78% of total banking industry assets are saddled with NPAs (a mind boggling Rs 830 billion in2000), falling revenues from traditional sources, lack of modern technology and a massive workforce while the new private sector banks are forging ahead and rewriting the traditional banking business model by way of their sheer innovation and services. The PSBs are of course currently working out challenging strategies even at 20% of their massive employee strength has dwindled in the wake of the successful Voluntary Retirement Schemes (VRS). Private sector Banks have established internet banking, phone banking, anywhere banking, and mobile banking, debit cards, automatic Teller Machine (ATMs) and combine various other services and integrated them into the main stream banking arena, while the PSBs are still grapping with disgruntled employees in the aftermath of successful VRS schemes. Also, following India commitment to the W to agreement in respect of the service sector, foreign banks, including both new and the existing ones, have been permitted to open upto 12 branches a year with effect from 1998-99 as against the earlier stipulation of 8 branches.

CO-OPERATIVE BANKING IN INDIA Introduction of co-operative banks

A co-operative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank. Co-operative banks are often created by persons belonging to the same local or professional community or sharing a common interest. Co-operative banks generally provide their members with a wide range of banking and financial services (loans, deposits, banking accounts etc.). Co-operative banks differ from stockholder banks by their organization, their goals, their values and their governance. In most countries, they are supervised and controlled by banking authorities and have to respect prudential banking regulations, which put them at a level playing field with stockholder banks. Depending on countries, this control and supervision can be implemented directly by state entities or delegated to a co-operative federation or central body. Even if co-operative banks organizational rules can vary according to their respective national legislations, co-operative banks share common features as follows:

Customer-owned entities:
In a co-operative bank, the needs of the customers meet the needs of the owners, as cooperative bank members are both. As a consequence, the first aim of a co-operative bank is not to maximize profit but to provide the best possible products and services to its members. Some co-operative banks only operate with their members but most of them also admit nonmember clients to benefit from their banking and financial services.

Democratic member control:

Co-operative banks are owned and controlled by their members, who democratically elect the board of directors. Members usually have equal voting rights, according to the co-operative principle of one person, one vote.

Profit allocation:
In a co-operative bank, a significant part of the yearly profit, benefits or surplus is usually allocated to constitute reserves. A part of this profit can also be distributed to the cooperative members, with legal or statutory limitations in most cases. Profit is usually allocated to members either through a patronage dividend, which is related to the use of the co-operatives products and services by each member, or through an interest or a dividend, which is related to the number of shares subscribed by each member. Co-operative banks are deeply rooted inside local areas and communities. They are involved in local development and contribute to the sustainable development of their communities, as their members and management board usually belong to the communities in which they exercise their activities. By increasing banking access in areas or markets where other banks are less present, farmers in rural areas, middle or low income households in urban areas - cooperative banks reduce banking exclusion and foster the economic ability of millions of people. They play an influential role on the economic growth in the countries in which they work in and increase the efficiency of the international financial system. Their specific form of enterprise, relying on the above-38mentioned principles of organization, has proven successful both in developed and developing countries.

RBI Policies for co-operative banks

The RBI appointed a high power committee in May 1999 under the chairmanship of Shri. K. Madhava Rao, Ex-Chief Secretary, Government of Andhra Pradesh to review the performance of Urban Co-operative Banks (UCBs) and to suggest necessary measures to strengthen this sector. With reference to the terms given to the committee, the committee identified five broad objectives: To preserve the co-operative character of UCBs To protect the depositors interest To reduce financial risk To put in place strong regulatory norms at the entry level to sustain the operational efficiency of UCBs in a competitive environment and evolve measures to strengthen the existing UCB structure particularly in the context of ever increasing number of weak banks To align urban banking sector with the other segments of banking sector in the context of application or prudential norms in to and removing the irritants of dual control regime RBI has extended the Off-Site Surveillance System (OSS) to all non-scheduled urban cooperative banks (UCBs) having deposit size of Rs. 100 Crores and above.

Types of Co-operative Banks

The co-operative banks are small-sized units which operate both in urban and non-urban centers. They finance small borrowers in industrial and trade sectors besides professional and

salary classes. Regulated by the Reserve Bank of India, they are governed by the Banking Regulations Act 1949 and banking laws (co-operative societies) act, 1965. The co-operative banking structure in India is divided into following 5 components:

1. Primary Co-operative Credit Society

The primary co-operative credit society is an association of borrowers and non-borrowers residing in a particular locality. The funds of the society are derived from the share capital and deposits of members and loans from central co-operative banks. The borrowing powers of the members as well as of the society are fixed. The loans are given to members for the purchase of cattle, fodder, fertilizers, pesticides, etc.

2. Central co-operative banks

These are the federations of primary credit societies in a district and are of two types- those having a membership of primary societies only and those having a membership of societies as well as individuals. The funds of the bank consist of share capital, deposits, loans and overdrafts from state co-operative banks and joint stocks. These banks provide finance to member societies within the limits of the borrowing capacity of societies. They also conduct all the business of a joint stock bank.

3. State co-operative banks

The state co-operative bank is a federation of central co-operative bank and acts as a watchdog of the co-operative banking structure in the state. Its funds are obtained from share capital, deposits, loans and overdrafts from the Reserve Bank of India. The state cooperative

banks lend money to central co-operative banks and primary societies and not directly to the farmers.

4. Land development banks

The Land development banks are organized in 3 tiers namely; state, central, and primary level and they meet the long term credit requirements of the farmers for developmental purposes. The state land development banks oversee, the primary land development banks situated in the districts and tehsil areas in the state. They are governed both by the state government and Reserve Bank of India. Recently, the supervision of land development banks has been assumed by National Bank for Agriculture and Rural development (NABARD). The sources of funds for these banks are the debentures 42subscribed by both central and state government. These banks do not accept deposits from the general public.

5. Urban Co-operative Banks

The term Urban Co-operative Banks (UCBs), though not formally defined, refers to primary co-operative banks located in urban and semi-urban areas. These banks, till 1996, were allowed to lend money only for non-agricultural purposes. This distinction does not hold today. These banks were traditionally centered on communities, localities, work place groups. They essentially lend to small borrowers and businesses. Today, their scope of operations has widened considerably. The origins of the urban co-operative banking movement in India can be traced to the close of nineteenth century. Inspired by the success of the experiments related to the cooperative

movement in Britain and the co-operative credit movement in Germany, such societies were set up in India. Co-operative societies are based on the principles of cooperation, mutual help, democratic decision making, and open membership. Cooperatives represented a new and alternative approach to organization as against proprietary firms, partnership firms, and joint stock companies which represent the dominant form of commercial organization. They mainly rely upon deposits from members and non-members and in case of need, they get finance from either the district central co-operative bank to which they are affiliated or from the apex co-operative bank if they work in big cities where the apex bank has its Head Office. They provide credit to small scale industrialists, salaried employees, and other urban and semi-urban residents.

Functions of co-operative banks

Co-operative banks also perform the basic banking functions of banking but they differ from commercial banks in the following respects Commercial banks are joint-stock companies under the companies act of 1956, or public sector bank under a separate act of a parliament whereas co-operative banks were established under the co-operative societys acts of different states. Commercial bank structure is branch banking structure whereas co-operative banks have a three tier setup, with state co-operative bank at apex level, central / district co-operative bank at district level, and primary co-operative societies at rural level.

 Only some of the sections of banking regulation act of 1949 (fully applicable to commercial banks), are applicable to co-operative banks, resulting only in partial control by RBI of cooperative banks and Co-operative banks function on the principle of cooperation and not entirely on commercial parameters.

Problems of Co-operative Banks Duality of control system of co-operative banks

However, concerns regarding the professionalism of urban co-operative banks gave rise to the view that they should be better regulated. Large co-operative banks with paid-up share capital and reserves of Rs.1 lakh were brought under the purview of the Banking Regulation Act 1949 with effect from 1st March, 1966 and within the ambit of the Reserve Banks supervision. This marked the beginning of an era of duality of control over these banks. Banking related functions (viz. licensing, area of operations, interest rates etc.) were to be governed by RBI and registration, management, audit and liquidation, etc. governed by State Governments as per the provisions of respective State Acts. In 1968, UCBs were extended the benefits of deposit insurance. Towards the late 1960s there was debate regarding the promotion of the small scale industries. UCBs came to be seen as important players in this context. The working group

on industrial financing through Co-operative Banks, (1968 known as Damry Group) attempted to broaden the scope of activities of urban co-operative banks by recommending these banks should finance the small and cottage industries. This was reiterated by the Banking Commission in 1969. The Madhavdas Committee (1979) evaluated the role played by urban co-operative banks in greater details and drew a roadmap for their future role recommending support from RBI and Government in the establishment of such banks in backward areas and prescribing viability standards. The Hate Working Group (1981) desired better utilization of banks surplus funds and that the percentage of the Cash Reserve Ratio (CRR) & the Statutory Liquidity Ratio (SLR) of these banks should be brought at par with commercial banks, in a phased manner. While the Marathe Committee (1992) redefined the viability norms and ushered in the era of liberalization, the Madhava Rao Committee (1999) focused on consolidation, control of sickness, better professional standards in urban co-operative banks and sought to align the urban banking movement with commercial banks. A feature of the urban banking movement has been its heterogeneous character and its uneven geographical spread with most banks concentrated in the states of Gujarat, Karnataka, Maharashtra, and Tamil Nadu. While most banks are unit banks without any branch network, some of the large banks have established their presence in many states when at their behest multi-state banking was allowed in 1985. Some of these banks are also Authorized Dealers in Foreign Exchange.

Introduction
The Surat Peoples Co-Operative Bank Ltd. is serving since last 88 years to the people of Surat having network of 23 computerized branches, out of them 21 are at Surat, 1 at Vapi and 1 at Navsari. The Bank is the "First Registered Urban Co-operative Bank" of India and among the first 13 Co-operative Banks to get the "Scheduled Bank" Status. It is the first Bank to provide the "Depository Participant Services" in South Gujarat. The Bank is the "First Registered Urban Co-operative Bank" of India. All Branches Connected in CBS.

Among the first 13 Co-operative Banks in September 1988 to get the "Scheduled Bank" Status.

The bank commenced "Total Branch Automation" in 1992-93. The Bank introduced "SMS Banking Facility" and "View Account Terminal" {VAT} facility at all branches for better customer service.

Bank started its own "Training Centre" for providing training to its employees. The first Bank to provide the "Depository Participant Services" in South Gujarat. Only coop bank of South Gujarat to have direct connectivity to RBI server for RTGS /NEFT facility.

Only bank to have direct connectivity with RBI server to have NECS facility. Only Bank to give RTGS /NEFT facility on STP basis - straight through processing.

Vision:
Our vision is to be Indias most respected and admired urban Co-Operative bank by influencing peoples lives through personalized banking services and partnering them in realizing their dreams.

Mission:
Our mission is to be a preferred financial service provider with a special focus on innovative quality products, technical expertise & efficient services for customer achieve their objective and goals.

Values:
We have accepted cardinal principle of corporate social responsibility and accordingly we have tried to fulfill our social obligations to be recognized as Surat Peoples bank in real sense.2007. Our future plan is the introduction of on and off site ATMs and Core Banking System

Competitors of Surat People Co-Op. Bank:

There are several Banks in surat who represents as a competitors of Surat People Co-Op. Bank and provides the same services:

Surat National Co-op. Bank Ltd.:- SURAT NATIONAL CO-BANK LTD is

committed to provide banking services on the Co-Operative lines to across section of population of surat district.

To cultivate public confidence through transparency and good corporate governance. To ensure utmost customer satisfaction through an efficient, quick and courteous services to them.

To contribute to the growth of industry, trade and services in general. To discharge social responsibilities as in Co-Operative organization. To ensure welfare of the members staff and public in general. A leading Co-operative Bank of Surat is going to complete four decades of its services to the people of Surat City/District. And it is said that Real life starts after forty. On 29th July,

1972 a seed of good and efficient Co-operative Bank was sown, which has grown in to a huge banyan tree. Our Bank carries with it an enviable heritage of 39 years. Established on the principles of Socialism (Samajwad), this Bank has served to the Society at large. The selfless devotion of the pioneers of this Bank with their lifeblood efforts inspired their successors- directors to dedicate themselves to continue selfless services to the society. Keeping in mind the values of self responsibilities, democracy and equality, all the past as well as present directors servicing with their boundless enthusiasm and courage, with their untiring zeal and patience, with their practical wisdom and sagacity in their untiring efforts in the cause of banking and to the services of the people of Surat and for their economic growth. This Bank was having the able-efficient pioneers leaders and Past Chairmen like Late Shri Jayantilal B. Chokhawala (The founder Chairman of this Bank and a leading personality of Surat City) and also like late Shri Vasantlal M. Dalal (The founder Vice Chairman of this Bank and thereafter became the Chairman, a leading-efficient, prominent lawyer-practicing on the Civil as well as Labour side, a think tank of Samajwad, always thinking of poor people and labourers who rendered his services for about 27 years to the Bank) and many others, led this Bank from venture to venture and changed fortunes of many people with their smiling faces from success to success.

This Bank is not only helping small investors and weaker section of society but also playing a vital part in the growth of the industry and commerce. This Bank was established with the motto to serve the people of Surat, on the basis of seven cardinal principles of Cooperation. It is established with 417 shareholders members with paid up share capital of Rs.98,000=00 and on the completion of the first year it was having deposits of

Rs.9,63,900=00 by 574 depositors and lending of Rs.5,94,700=00 to 113 members. Right from the 2nd year this Bank is giving the maximum Dividends as provided under The Coop. Act to its shareholder members regularly. Today at the end of 39th year, as on 31.03.2011 this Bank is having a total deposits of Rs.244.73 Crores and advances of Rs.149.49 Crores, with total working business of Rs.394.22 Crores. This Bank is having Net Zero N.P.A. since last many years. It has also achieved a prizes from The Gujarat Urban Co-operative Banks Federation as the zero N.P.A. Bank. This Bank has achieved many targets and got many prizes and awards from Surat Jilla Sahkari Sangh and South Gujarat Co-op. Banks Association (SCOBA). Today this Bank is rendering services to the people of Surat regarding all kinds of banking services. This Bank is having total 8 Branches having an efficient and most Co-operative Smiling Staff of 132 personnel. This Bank is never involved in any scam. This Bank is not doing any Stock Market Business. In this era of rising interest rate, we invite people and our valued customers as one of the attractive avenue for investment of their precious capital. Please find comfortable to deposit your valued funds in our Bank

Sarvodaya Sahakari Bank Ltd.:- Established in the year 1982 with an authorized

Share Capital of Rs. 25.00 lacs and the paid up Share Capital of Rs. 4.00 lacs The Sarvodaya Sahakari Bank Ltd., Surat is rightly bracketed as one of the leading and top-most co-op. banks of the city. From a small rental place into the centrally air-conditioned well equipped premises, Bank had leapfrogged in the year 1991. To meet with the high-tech demand of the time, Bank got fully

computerized in the year 1993 and gratified the inhabitants of the City with its efficient services. Thereafter many Banks took a leaf out of it and got themselves computerized. To serve the larger number of people, the Bank kept on opening its branches. At present Bank is having network of 7 (Seven) branches. To compete and meet with the demand of time, in Feb08, Bank started implementation of CBS facility at the Head Office, so that its customers can avail better facilities. In a short span of 1 year, it linked-up all its branches with CBS. To ease the burden of its customers and to offer them better services, Bank has also initiated Mobile (SMS) banking services. It also desires to offer off Site ATM services in the different areas too. Above that the Bank is to provide Internet Banking facility to its customers shortly after completion of certain required procedures. Realizing the fact of difficulty in the survival only on the income out of the Banking business, the Bank has entered into the Life Insurance field with the help of Kotak Mahindra Old Life Insurance Ltd. on its foundation day (i.e. 08TH May 2008) to expand and flourish. Moreover the Bank is already at work of protecting the assets & valuables of its customers through the General Insurance Policy in affiliation with ICICI Lombard General Insurance Co. Ltd. and is earning handsome commission from its non-banking business.

Glimpses at a glance:
The bank became the FIRST of its kind in the South Gujarat & second in the State of Gujarat by providing the ATM Facility to its customers SINCE 1996. The Bank was the first Co-op. Bank in Gujarat to offer the VAT (View Account Terminal) facility at all its branches.

Ours was the FIRST Co-op. Bank to get the approval for sanction of Term Loans under TUF Scheme. By The National Federation of Co-op Credit Society (Delhi) , the Bank got the Second position in the year 1998 & 99 at the national level for getting Class A Audit & for being the non-controversial Bank. It also acquired the FIRST position in the district for the Best services at the competition staged by the Surat Jilla Sahakari Sangh in the year 2001/02. Further in the year 2008/09, Bank secured the 2nd prize for the stunning performance in the entire south Gujarat at the function of Toppers Award organized by South Gujarat Banks Association. Ours is the ONLY Bank in the Surat City to cater to the needs of huge no of FLOOD Victims in the year 2006. Also affiliated with some Charitable Institutions for a Good cause of serving persons economically weak.

Sutex Bank Co-Op. Ltd.:- Sutex Banks proud journey started with its establishment on
15th May, 1972. At the prime time of opening Sutex Bank its name was The Surat Textile Traders Co-Op. Bank Ltd. Banks registered office address is Surajram Bachkaniwala Bhavan, Nr.Navjivan Circle, Udhan Magdalla Rd.,Surat . In the year 1972 Banks Establisher Chairman Late Shri

Surajram Bachkaniwala and Vice Chairman Late Shri Ashabhai Shankarbhai Patel having a prosperous vision to provide a golden & profitable market to Surats Textile Industry, registered the bank at a cooperative level. Sutex Bank provided services With a view to help Surat Textile Market shop keepers with banking facilities and help them start and manage their businesses.

Sutex Bank in the initial stage started with only 270 share holders and Rs. 1.10 lacs Share capital. As on 31st March 2012 No. of share holders Crossed 22452 and share capital of Rs. 1732.22 lacs. As on 31st DEC 2011 Bank has crossed a total deposits of Rs. 717.54 crores And total advances of Rs.479.99 crores.

Sutex Bank has in total 14 branches and a administrative office. A new branch at Pal Road, Surat shall open shortly.

The Bank started with only four employees and as on today it has a big circle of 214 employees. Bank has been providing up to date training to all employees of different levels. All Sutex Bank branches are well organized and completely computerized and is one of the leading banks across South Gujarat. Sutex Bank was the first bank to provide ATM facilities through co-op. sector to its customers. Currently bank provides complete Core Banking Facilities to its customers. It may be noted that the Core Banking Solution was completed in just 3 months period which included 14 branches and a admin office which showed a positive approach and proof of determination of Sutex Banks Staff. With CBS facilities banks valued customers now can avail all kinds of banking services and facilities from any branch.

Bank leads not only in providing banking facilities but also is very active in social services. As we know our Surat has been hit several times by natural calamities like floods where bank has instantly helped its customers without a delay. During the Floods in Surat in the years 1994, 1998 and 2006 bank provided Loans to those who took severe damages within 24 hours which was noteworthy. Under technology up-gradation scheme of Indian Governments textile industry, Sutex Bank has got approval to provide direct advances and loans. Sutex Bank was the first bank to achieve such approval across the nation under Urban Co-op. Banks Category. Under the TUF scheme Bank has advanced a total of Rs.400 crores and have helped receiving fast subsidys to its share holders which has resulted in strengthening our countries overall economy. For this achievement bank has received a honorable certificate by the Ministry of textile. Currently bank provides all kinds of banking facilities including CBS,E-statements, SMS alerts, RTGS/NEFT, E-payments etc.

The Varachha Co-Op. Bank Ltd.:- The people in Saurashtra, located in western part
of Gujarat, are always depending upon the rain-fed cultivation. As a search for income generation in an alternate way for their survival, they have chosen Surat city, where there is a good scope for trade in Diamond and Textile sector. Well off people have entered into the trading sector and the others on labour front. In a phased

manner, the population of the people, involved in diamond trade, belonging to Saurashtra increased to a sizeable extent in Surat and in particular in the area of Varachha. It was become obvious for a necessity of a Bank for their own people; the efforts were taken by a well known philanthropist, story writer and columnist in local dailies, Mr. P. B. Dhakecha, founder chairman of our Bank. As such, The Varachha Cooperative Bank Ltd., came into existence on 16th October 1995 and Inauguration ceremony was done by on the hand of Shree Swami Sacchidanand. Some of our directors are belonging to diamond trade, who are official site holders of getting rough block diamonds from foreign countries. At the end of the first financial year the number of shareholders was 4484, Share Capital 57.44 lacs, Deposits Rs.2.70 crores, Advance Rs.2.07 crores and profit stood at 4.77 lacs. Our Bank has gradually developed the Banking activities and at the end of 5th year, with a network of 5 branches, the share capital and reserves raised to more than 8 crores and the deposits have crossed 100 crore mark, which is a rare phenomenon in Cooperative Banking Sector in all over India and the number of depositors have increased 58222. The Bank has been awarded with First Prize for the best performance among all Cooperative banks in Surat District during the FY.2000 - 01. At present the share capital and reserves raised to nearly 40 crores. The deposit is Rs.160.70 crores Advances 78.21 crores. Total 7 branches and 130 staff members. In spite of run in a cooperative sector in the year 2001, due to Madhavpura episode, the Bank has not only survived but also developed the base without any difficulty due to confidence reposed upon by the public with our Bank. They have introduced the system of quick delivery of vehicle loans, with minimum papers and documents, without any hidden charges. Other advances of our Bank have been spread over on the following categories:

Vehicle Loan Loan against gold ornaments Loan on personal guarantees (Surety Loan) Retail trade business Professional and Self employed Loan against Banks own deposits/NSC Cash credit hypothecation on stocks on trade Technology Upgradation Finance (TUF) loan with subsidy Besides the banking activity, the Bank has entered into the insurance business arrangement with IFFCO-TOKIO. We are also having tie-up arrangements with insurance companies on referral basis, as per RBI guidelines. We have covered with accident insurance cover for the shareholders, depositors and borrowers of the Bank and we have received settlement to the tune of Rs.1 crore from the insurance companies. The data pertaining to our Bank is being sent to Reserve Bank of India, banking regulator of the country, through e-Mail under offsite surveillance system (OSS) for the past 3 years.

Our Bank has been fully computerized banking system, right from inception and present programme, front end Visual Basic and the back end (database) Oracle 10G Platform. We are having the staff members, most of them belonging to younger generation, with energetic and enthusiastic approach in Customer Service. The staff attendance is being controlled under

Biometric device system. CCTV system is being installed to monitor the alertness of the entire banking activity, fitted with cameras at the vital points. Our Bank has introduced Mobile Banking and Any Branch Banking (ABB) in the year.

THE SURAT PEOPLE S CO-OP. BANK LTD.

HISTORY OF BANK

With the advent of the 20th century, Co-operative Movement started in India. Late Raosaheb Varundavan Jadav - a visionary dreamt of establishing Co-operative Bank. This Dream turned into reality in the name of The Surat Peoples Co-operative Bank Ltd. The Surat People s Co-operative Bank Ltd was established in 1922 at Surat. Bank was registered on 10th March, 1922 and started functioning from 21st April, 1922.The Bank was first registered Urban Co-Operative Bank in India and became Scheduled Bank on 1st September,1988 and among the first 13 Co-operative Banks to get the "Scheduled Bank" Status. It is the first Bank to provide the "Depository Participant Services" in South Gujarat. The Bank is serving since last 88 years to the people of Surat. The bank is having network of 23 branches, wherein 21 branchess in Surat, 1 branch at Vapi and 1 branch at Navsari.

The Bank's Registered Office and its central office is located at Nanpura, surat. The Bank has a wide network of 23 branches. The Bank has a network of over 13 ATMs providing 24 hrs a day banking convenience to its customers in Surat, Vapi & Navsari city.

4.2 VISION, MISSION & VALUES Vision

Our vision is to be Indias most respected and admired urban Co-Operative bank by influencing peoples lives through personalized banking services and partnering them in realizing their dreams.

Mission
Our mission is to be a preferred financial service provider with a special focus on innovative quality products, technical expertise & efficient services for customer achieve their objectives and goals.

Values
We have accepted cardinal principle of corporate social responsibility and accordingly we have tried to fulfill our social obligations to be recognized as surat peoples bank in real sense.

BOARD OF DIRECTORS
Shri Amit Gajjar (President) Shri. Mukeshchandra N Gajjar (Vice- President) Shri. Jayvadan N Bodawala (Immediate Past President) Shri. Jagdishchandra S Mehta (Past President) Shri. Pravinchandra P Modi (Past President) Shri. Pravinchandra P Jariwala (Director) Shri. Jayvdanbhai T Jariwala (Director) Shri. Ashit V Gandhi (Director) Shri. Mukesh C Dalal (Director) Shri. Sunil K Modi (Director) Shri. Sanjiv N Tamakuwala (Director) Shri. Manhar N Gandhi (Director)

ADMINISTRATION
Shri. Natwar Kothari (General Manager) Shri. Hemant Shah (Dy. General Manager) Shri. Harish Mistry (Asst. General Manager) Shri. Mayank Baxi (Asst General Manager)

BRANCH NETWORK Main Branch Sagrampura Branch Salabatpura Branch Bhagatalav Branch Mahidharpura Branch Khatodara Branch Nanpura-Athwa lines Branch Udhna Branch Katargam Branch Pandesara Branch Rander Road Branch Bhatar Road Branch Umra Jakatnaka Branch Sumul dairy road Branch Ring road Branch APMC Branch Sachin Branch Timaliawad Branch Vapi Branch Adajan Branch Varacha branch Citylight branch

Navsari Branch Khotadara (Clearing House) Vasundhara Anex (Demat House)

The Surat Peoples Co-operative Bank has in all 23 branches,1 clearing house and 1 demat house.

Marketing Department

Introduction of marketing department

Definition of marketing

Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others- Kotler.

How bank is defining marketing?

Just like a retail company, banks have products or services that they sell to the public to gain profits or funds to operate the business and make loans. Therefore they need a marketing department to produce brochures, radio, print or TV ads, and generally

promote those products and services in the community. They may also organize events and sponsor local groups to raise awareness and increase loans, service and deposits.

The Chartered Institute of Marketing (CIM).

Marketing is the wide range of activities involved in making sure that you're continuing to meet the needs of your customers and getting value in return. Marketing is usually focused on one product or service. Thus, a marketing plan for one product might be very different than that for another product. Marketing activities include "inbound marketing," such as market research to find out, for example, what groups of potential customers exist, what their needs are, which of those needs you can meet, how You should meet them, etc. Inbound marketing also includes analyzing the competition, positioning your new product or service (finding your market niche), and pricing your products and services. "Outbound marketing" includes promoting a product through continued advertising, promotions, public relations and sales. In the bank marketing department makes the aware about ht policies and strategies to the people through the communication channels and the regulation of the whole marketing department we done by the head office who bare an expenditure of advertisement. Marketing activities are numerous and varied because they basically include everything needed to get a product off the drawing board and into the hands of the customer. The broad field of marketing includes activities such as:

Designing the product so it will be desirable to customers by using tools such as marketing research and pricing.

Promoting the product so people will know about it by using tools such as public relations, advertising, and marketing communications.

Setting a price and letting potential customers know about your product and making it available to them.

Structure of marketing department

[Chart (2.1) Structure of marketing department]

Marketing structure is not been disclosed by the SPB bank. The handling of

marketing structure and all the related activities are carried out by may head office branch at bhagal, surat.. However with the help of organization theory and principle it can be as above.

Responsibilities of marketing personal

Achieving or exceeding agreed sales targets and building the new customer base in the bank

Promoting the sales of core products in an assigned area Building and maintaining effective business relationships with customers

Assisting in conducting promotional activities, meetings and road shows in the assigned area to achieve the sales target. Ensuring the complete and error-free submission of customers applications and documentation. Providing sales information to team leader on regular basis. Providing customers feedback to the team leader to improve business.

Major functions of marketing department

The functions of the marketing department of a bank are to advertise about the bank and reach more potential customers who would open accounts with the bank. They usually start up a campaign or a promotional scheme explaining/offering a host of benefits that come along with the process of account opening with the bank. Such a campaign usually results in the increase in the customer base and increased revenue/profit for the banks.

Marketing research and information management

Marketing research function is concerned with gathering, analyzing and interpreting data in a systematic and scientific manner. The types of market information could be analysis of market size and characteristics, consumer taste and preferences and change in them from time to time. Channels of distribution and communication and their effectiveness, economic social, political and technological environment and changes therein. A social political and technological environment and changes therein. A bank can procure such information from specialized market research agencies, government or can decide to collect them.

Advertising and sales promotion

Advertising is a mass media tool used to inform, persuade or remind customers about products or services. It is an impersonal form of communication targeted at a chosen group through paid space or time.

Sales promotion is a short term incentive given to customers or intermediaries to promote sales. It supplements advertising and personal selling and can be used at the time of launching a new product or even during its maturity period.

Product planning and management

A marketer should identify the need and want of consumers, develop suitable services and make them available. Marketer is also requires to maintain the services according to changing needs and requirements of his customers. Information available through market research help product management in taking appropriate decision while planning the marketing efforts.

Selling

An important part of this function is organizing sales force and managing their activities. Sales force management include recruitment, training, supervision. compensation and evaluation of salesmen. They need to be assigned targets and territories where they can operates. The salesmen interact with prospective purchasers fact to face in order to sell the goods. The purchaser may be end customer or and intermediary, such as a retailer or a dealer.

Pricing

This is perhaps the most important decision taken by marketer, as it is the only revenue fetching function and success and failure of the product may depend upon this decision. Therefore, the decision regarding how much to charge should be taken such that the price is acceptable to the prospective buyers and at the same time fetches profit for the company. Whi8le deciding on the price, companys marketing policy, government policy, and the buying capacity of target market.

Product Mix and its various brand

There are various kind of products have been launched by the bank day to day. It means the set of a product offered for sale by a firm or a business unit is known as a product mix. It includes three main concepts like (1) width (2) depth (3) consistency.

Width: the surat peoples co operative bank is having a waste no of products and policies.Width of the product mix is concerned with the number of product lies marketed by the company.

Depth: the Depth of the product mix depends on the average number items included in the product lines.

Consistency: the constancy of the product includes the mix indicates hoe far the product lines are interconnected with each other from the view of their final use or production requirement.

For product mix in the bank there are so many products and policies are like as under. If we look at the width of the product means (1) BOI Star e-Pay for payment of Utility Bills (2) Online Ticketing for Railways and Airlines ticket booking (3) DGFT Online ePayment for online payment of license fees (4) e-Payment of Direct & Indirect

taxes. (5) Online Payment of Custom Duty. (6) Star Share (e) Trade for on line share trading in which there are so many sub policies to avail with customers corner. The bank manager has informed that the formulation of policy is done from the head office.

Segmentation Targeting and Positioning

[segmentation targeting and positioning]

(1) Segmentation of Banking:

Geographic segmentation
The market is segmented according to geographic criteria- nations, states, regions, countries, cities, neighborhoods, or zip codes. Geo-cluster approach combines demographic data with geographic data to create a more accurate profile of specific with aspect of region as per their need.

Demographic Segmentation
Demographic segmentation consists of dividing the market into groups based on variables such as age, gender, family size, income, occupation, education, religion, race and nationality which helps in to developing new strategy based on this groups. This is partly because customer wants are closely linked to variables such as income and age. Also, for practical reasons, there is often much more data available to help with the demographic segmentation process.

Psychographic Segmentation
Psychographics is the science of using psychology and demographics to better understand consumers. Psychographic segmentation: consumer is divided according to their lifestyle, personality, values. Aliens within the same demographic group can exhibit very different psychographic profiles.

"Positive" market segmentation

Market segmenting is dividing the market into groups of individual markets with similar wants or needs that a company divides into distinct groups which have distinct needs, wants, behavior or which might want different products & services. Broadly, markets can be divided according to a number of general criteria, such as by industry or public versus private. Although segmentations quite different from consumer market segmentation, both have similar objectives. All of these methods of segmentation are merely proxies for true segments, which don't always fit into convenient demographic boundaries. Consumer-based market segmentation can be performed on a product specific basis, to provide a close match between specific products and individuals. However, a number of generic market segment systems also exist, e.g. the system provides a broad segmentation of the population of the United States based on the statistical analysis of household and geodemographic data.

Behavioral Segmentation
In behavioral segmentation, consumers are divided into groups according to their knowledge of, attitude towards, use of or response to a product. It is actually based on the behavior of the consumer.

Occasions
Segmentation according to occasions, we segment the market according to the occasions like providing policy for future or education package.

Benefits
Segmentations are according to benefits sought by the consumer.

(2) Targeting of Banking Target strategy

Corporate banking strategy: this market target to industry and fulfill their financial need. Capital marketing: this segment is targeted on long term needs of the individual as well as industries. Retail banking market: this segment is for retail investor and provides them, short term financial credit for their personal and household needs.

(3) Positioning of Banking

The surat peoples co operative bank has positioned itself at a higher standard of services through product innovation for the diverse need of the individual and corporate clients. They are more towards relationship building trust building with their customer as follows: customer centric service oriented product innovation

[Positioning of banking]

Product mix

There are a lot of services that are the spine of the bank itself. Such services are the actual product of the bank. Here some products of the bank are displayed below.

6 SERVICES PROVIDED BY THE BANK

The operations department deals with the systems work. The Surat Peoples Co-operative bank uses TCS software to carry out their banking activities. This version is the latest version of software which is at present available to The Surat Peoples Bank.

SAVINGS ACCOUNT

Savings accounts are accounts maintained by retail financial institutions that pay interest but cant be used directly as money ( for example, by writing a cheque). These accounts let customers set aside a portion of their liquid assets while earning a monetary return. To open an account the client has to fill up a form and has to submit KYC(know your customer which includes address proof, identity proof, pan card and necessary documents of the client) which is then sent to the head office and then the account is opened. There are 2 different types savings accounts offered by The Surat Peoples co-op bank. They are given below:

A) Simple Savings Bank Account

The account while offering you a whole range of services also addresses your need of having an account by maintaining an average quarterly balance of Cheque book is not provided in this type of account. To withdraw cash from this account withdrawal slip has to be filled in. latent

Rs.500.

Average Quarterly Balance requirement Rs 500 Free ATM Card Free SMS Banking Access through all branches in network through CBS facility and all ATM Free Passbook facility

B) Savings Bank Account with Cheque book:

SBC Savings Account gives instant access to money anywhere, anytime. The minimum average quarterly balance of Rs.1000 should be maintained. Other services like ATM facility, at par cheque book, , SMSbanking, Passbook facilities,

account statements on request, quarterly interest at 4% per annum is availed to this account holder.

CURRENT ACCOUNTS:

Current Accounts are cheque operated accounts meant neither for the purpose of earning interest nor for the purpose of savings but only for convenience of business hence they are non-interest bearing accounts. In a Current Account, a customer can deposit any amount of money any number of times. He can also withdraw any amount as many times as he wants, as long as he has funds to his credit. Customer has to maintain a minimum average quarterly balance of Rs. 2000

DEMAT ACCOUNT:

The term Demat, in India, refers to a dematerialised account for individual Indian citizens to trade in listed stocks or debentures, required for investors by The Securities Exchange Board of India (SEBI). In a demat account, shares and securities are held electronically instead of the investor taking physical possession of certificates. A Demat Account is opened by the investor while registering with an investment broker (or sub broker). The Demat account number is quoted for all transactions to enable electronic settlements of trades to take place.

Access to the Demat account requires an internet password and a transaction password as well as initiating and confirming transfers or purchases of securities. Purchases and sales of securities on the Demat account are automatically made once transactions are executed and completed

DEMAT Account Through Surat People's Bank:

Physical Security holding are converted into Electronic holdings so no fear about loss of paper form securities, theft, fire or mutilation. No worry about bad delivery.

Comfort / Convenience

Speedy sale-purchase & transfer. No botheration for storing and preservation nor loss of securities. Sale-purchase, credit-debit by written mandate only. Freedom from inconvenience due to wrong signature and other objection in stock exchange.

Security transfer without share transfer forms. Freedom from botheration to inform change of address to all the companies.

Rematerialisation facility available. Easy to pledge as security and to get loan. Direct credit of corporate benefits like Bonus, Market Shares and Right Share in your account.

Direct credit of Shares, Securities purchased from Market. Nominal Service Charges No stamp duty expense on transfer of securities. Saving of postal expenses and time etc. Very small amount of brokerage for sale / purchase of shares and securities Competitive interest will be charged on loans/advances against DEMAT shares & securities.

6.4 RECURRING DEPOSITS:

Recurring Deposit scheme will allow one with an opportunity to build up savings through regular monthly deposits of fixed sum over a fixed period of time.

Features :
Recurring deposits are accepted in equal monthly installments of minimum Rs 1,000 and above in multiples of Rs 500 thereafter. The fixed number of installments for which a depositor can opt are 12, 24, 36, 39, 48, 60, 63, 72, 84, 96, 108 and 120 months. Transfer of Accounts - a recurring deposit account can be transferred from one office of the Bank to another branch. The amount of installment once fixed, cannot be changed . Installment for any calendar month is to be paid on or before the last working day of the month. Where there is delay in payment of installment, one can regularise the account by paying the defaulted installment together with a penalty (at present it is @ PLR plus 4 % for the period of delay).Fraction of a month will be treated as full month for the purpose of calculating the penalty. The total amount repayable to a depositor, inclusive of interest, depends on the amount of monthly installments and the period of deposit.

FIXED DEPOSIT (FD)

When you want to invest your hard earned money for a longer period of time and get a regular income, Fixed Deposit Scheme is ideal. A fixed deposit is best suited for those investors who want to invest a lump sum of money at a low risk and are comfortable committing it for a fixed period of time, and earn a rate of interest on the same.

Some of the salient features of a bank deposit are:

Flexible Deposit Terms: The tenure of fixed deposits can vary from as low as 7, 15,
30 or 45 days to 3, 6 months, 1 year, 1.5 years to 5 years. The minimum deposit amount also varies with each bank. It can range from as low as Rs.100 to an unlimited amount with some banks. The amounts can be in multiple of Rs.100.

Great Deals: The banks are free to offer varying rates of interest for products of
different maturities. If you are flexible in terms of deposit tenures, you might find differential interest rates in odd tenures like 390 days or 200 days.

Safe Investments: Bank deposits are generally safe investments because they are
insured under the Deposit Insurance & Credit Guarantee Scheme of India.

Flexible Interest Payment Terms: A Bank Fixed Deposit gives you the option of
taking the interest income, as a lump-sum amount on its maturity as well as every quarter (quarterly interest payment) or every month (monthly interest payment)

Electronic Clearing: The Interest payable on Fixed Deposit can also be transferred
directly to Savings Bank or Current Account of the customer.

Compounding: Compounding of fixed deposit interest rate is available for all more
than 3 months

Five Vital Tips on Fixed Deposits

Check the premature withdrawal penalty before investing.

Try and invest the money in a tenure within which you will not need the money. But definitely check on the charges applicable in case you need to withdraw in an emergency.

Check the frequency of compounding of the deposit, when comparing two deposit offerings.
A rate which might seem higher upfront might have a lower return if it is not compounded as frequently. For example; Bank X offers a one year deposit at the rate of 9% compounded half

yearly which results in an yield of 9.2%. While Bank Y offers a one year deposit at the same rate of 9% but compounded quarterly which results in an yield of 9.3%. You will earn more interest on fixed deposits at Bank Y because your return is compounded annually.

Split your Fixed Deposit investments to avoid TDS deduction.

If the interest earned is more than Rs.10,000 in a single branch in one calendar year then TDS would be deducted. By splitting your deposits across various banks or branches you can avoid this deduction.

Always appoint a nominee.

When you open a fixed deposit appoint a nominee. It is essential for a quick and hassle free transfer of accounts. The nomination facility enables the bank to release the deposit amount to the nominee without insistence on a succession certificate or probate of the will from your legal heirs.

Take interest payouts based on your requirements

Most banks have many interest payout options, choose the one which suits your requirements best for example if you are retired person you could go in for monthly payments of interest.

 Fees and Charges:

Normally, there are no charges for a plain vanilla fixed deposit account. Charges are usually levied on premature withdrawal of the deposit or taking additional features like a debit card against it.

Tax Implications
The interest income earned on a deposit is taxable at the same tax slab as the customer is in. It will be added to his income in the year under the head Other Income.

Benefits of Fixed Deposits

Interest paid either monthly or quarterly The yield or return on a fixed deposit is different from interest. Interest paid either monthly or quarterly Possible to take loans against fixed deposits Bank fixed Deposits are exempt from income tax up to a limit of Rs.9, 000/- under Section 80L, though TDS is applicable on interest earned on Fixed Deposits of Rs.10,000/- and above.

Five-year tax-saver FDs

In Budget 2006, the government extended tax benefits to five-year tax-saver deposits. Eligible: Eligible for exemption on five-year deposits on investments up to Rs.1 lakh. Locking Period: These fixed deposits will be locked for a five-year period from the effective policy date.

Advantage and Disadvantage:

We cannot exercise the option of premature withdrawal. Secondly, you cannot pledge the term deposit as collateral to secure a loan to meet your liquidity needs. Similarly, banks do not offer overdraft facility on tax-saver deposits. Unlike the plain vanilla fixed-deposit products, these taxsaver FDs do not have the sweep-in facility. This implies, you cannot link fixed deposit to the savings account whereby the surplus funds in the savings account can be automatically invested in this fixed deposit.

In addition, there is no overdraft facility available on the tax-saver FD. As this instrument of saving money is special due to its tax-saving status, banks do not extend relationship benefits on the tax-saver FD.

Duration From 24-2-2011 15 Days To 45 Days 46 Days To 90 Days 91 Days To 180 Days 181 Days To 365 Days 366 Days To 443 Days 444 Days To 444 Days 445 Days To 730 Days 731 Days To 887 Days 888 Days To 888 Days 889 Days To 1095 Days 1096 Days To 1110 Days 1111 Days To 1111 Days 1112 Days To 1825 Days 1826 Days To 2120 Days 2121 Days To 2121 Days 2122 Days To 2555 Days 2556 Days To 3650 Days

Less than Rs. 15 Lacs

4.00 6.25 6.75 7.50 9.00 9.25 9.00 9.25 9.50 9.25 9.50 9.75 9.50 9.75 10.00 9.75 8.00

These are the following special Term Deposits which are available with the bank.

LOAN FACILITIES

The bank gives different types of loans to the customers on the basis of their requirements Housing Loan Consumer Durables Personal Loan Vehicle Loan Cash Credit Mortgage Machinery Loan Bill Discounting Self Employment Loan / OD against Govt. Securities Education Loan Loans Against Shares Project Finance

The people in this department do the documentation part which includes filing the KYC and then they assess whether the loan should be passed or not. For this, they check the past banking

history of the client, his creditability, tenure of the loan, mortgage securities, etc. After the bank is satisfied that the risk is low in providing the loan then they sanction the loans.

ATM Facilities:

An automated teller machine (ATM), also known as automatic banking machine (ABM), Cash Machine, or Cash point, is a computerized telecommunications device that provides the clients of a financial institution with access to financial transactions in a public space without the need for a cashier, human clerk or bank teller. On most modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip that contains a unique card number and some security information such as an expiration date or CVVC (CVV). Authentication is provided by the customer entering a personal identification number (PIN). Using an ATM, customers can access their bank accounts in order to make cash withdrawals, credit card cash advances, and check their account balances as well as purchase prepaid cellphone credit.

The Surat Peoples Co-operative Bank has 13 ATM machines at its different branches. ATM card of the customers is issued by the central office at Nanpura. This card is then sent to the respective customers address through couriers. The card and pin are always sent through different couriers for the safety purpose. On receiving the card and pin, the employee at branch has to record it in a register. This is then dispatched to the respective customers after outward recording.

Advantages of ATM Cards

No hassle of carrying hard cash cash withdrawal upto Rs 20,000 from ATM Personalised PIN Number for security purposes accpeted worldwide.

Disadvantages of ATM Cards

No Cash advantages Needs to keep proper records

LOCKERS:

Locker facility is provided by the bank to the accountholders. The lockers are of various sizes.

SIZE

DESCRIPTION

RENT (Rs.) + Service Tax

A B C D E F G H K L

Very tiny Tiny Very Small Small Small-medium Medium Medium-large Large Extra large Largest

331 387 442 664 883 1655 1983 2427 2758 4412

Surrendered lockers are the lockers for which the client has withdrawn his valuables and has returned the key to the bank. Now, the bank would change the locker keys for surrendered lockers and then would regard them as vacant lockers. Every time, the surrendered lockers key is replaced and then it is provided to other customers.

SMS Banking Services:

Bank being always ahead in customer related services has introduced a new service for our customers. Customers will be able to remain in constant touch of the bank through their mobile phones.

Salient features of the above mentioned SMS bank service are as follows :

The information of all your accounts on your single cell phone. 24 * 7 services.

SMS service for Customers:

Customers can send SMS from their cell phones to receive below mentioned responses. Details Current balance of Accounts Back dated balance of accounts Cheques details SMS 1 2 DDMMYY 3 111111

Return clearing information & cheque returned on debit clearing 4 Other bank information Help 5 6

Demand Draft & Pay Order services

Demand Draft is way for remitters to transfer money . A demand draft is more secure than a normal cheque as it can only be credited to a specific payee's account, and a customer can only be reimbursed under indemnity if the draft is lost or stolen.

People's bank draft is a low-cost, convenient method of payments.

Bank charges as below:

DD Amount upto 10,000 Rs. 10001 to 60000 Rs. 60001 to 100000 DD Charges 20/30/Rs. 0.50 per Rs. 1000/- Maximum Rs. 560/-

Pay order is secure way to make payment. Pay order can be made of your party's name. and it is best proof of payment of this amount and on date. so, instead of giving cheque you can make pay order from bank and bank will make a payment from your account.

General Insurance:
First co-operative bank, in Gujarat to obtain a Corporate Agency in General Insurance sector. Reserve Bank Of India granted and Insurance Regulatory and Development Authority (IRDA) license holder. Mediclaim House-hold Insurance Fire and Burglary Personal Accident

Shop Keepers Machinery Breakdown Overseas Mediclaim for Foreign Exchange

RTGS:
This Real Time Gross Settlement System (hereinafter referred to as the RTGS System), set up, operated and maintained by the Reserve Bank of India (RBI) comprises of the RTGS application, the Inter-Bank Funds Transfer Processor (IFTP) application and the RTGS Member (RTGS Participant) Interface application. The RTGS and the IFTP applications will, for the purposes of this document, be referred to as the Central System jointly. The Member Interface (hereinafter referred to as the PI) will be provided by the Reserve Bank of India (RBI) to all the Type A and B members of the RTGS System.

These Operating Guidelines shall be called the Real Time Gross Settlement System

Business Operating Guidelines, 2004 and shall come into force from the date and time of its of a member to the RTGS system and shall be complied with by all the RTGS Members.

Unless specifically mentioned otherwise, the time, mentioned in this document, shall mean and imply Indian Standard Time and all amounts, mentioned in this document, shall be in Indian Rupees.

Time stamps, affixed by the Central System on the transactions and events, will be the applicable time stamps involving the RBI and the RTGS members for all matters relating to the Central System.

NEFT:
National Electronic Funds Transfer (NEFT) is a nation-wide system that facilitates individuals, firms and corporate to electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the Country.

Production Department

Types of plant layout used Operation strategies for services Operation scheduling Quality control Format of Document

Types of plant lay out

Understanding first of all what plant layout is more important which will make us to understand about banking lay out and which processes it follow.

Definition: Plant layout refers to the arrangement of physical facilities such as

machines, equipment, tools, furniture etc. in such a manner so as to have quickest flow of material at the lowest cost and with the least amount of handling in processing the product from the receipt of raw material to the delivery of the final product.

Objectives of good Plant Layout:

A well designed plant layout is one that can be beneficial in achieving the following objectives: Proper and efficient utilization of available floor space Transportation of work from one point to another point without any delay Proper utilization of production capacity. Reduce material handling costs Utilize labor efficiently Reduce accidents

Provide for volume and product flexibility Provide ease of supervision and control Provide for employee safety and health Allow easy maintenance of machines and plant. Improve productivity

Types of plant layout:

There are mainly four types of plant layout:

(a) Product or line layout: In this type of layout the machines and equipments are
arranged in one line depending upon the sequence of operations required for the product. It is also called as line layout. The material moves to another machine sequentially without any backtracking or deviation i.e. the output of one machine becomes input of the next machine. It requires a very little material handling. It is used for mass production of standardized products.

[Product layout]

(b) Process or functional layout: In this type of layout the machines of a similar type
are arranged together at one place. This type of layout is used for batch production. It is preferred when the product is not standardized and the quantity produced is very small.

[Process layout]

(c) Fixed position or location layout: Fixed position layout involves the movement
of manpower and machines to the product which remains stationary. The movement of men and machines is advisable as the cost of moving them would be lesser. This type of layout is preferred where the size of the job is bulky and heavy. Example of such type of layout is locomotives, ships, boilers, generators, wagon building, aircraft manufacturing, etc.

(d) Combined or group layout: A combination of process & product layout is known
as combined layout. Manufacturing concerns where several products are produced in repeated numbers with no likelihood of continuous production, combined layout is followed

Here The surat peoples co operative banks following process layout and fixed lay out. On ground floor: cash transaction opening account cheque receipt cheque book delivery D.D., pay order, RTGS department Statement of current account Passbook issues and entry and ATM card issue A.T.M card issue

first floor: banking activities gold coin selling fixed deposit current account opening RBI bond (short term-long term) Credit card Pension

Relationship department ATM ping delivery

Second floor: loan bill discount bill purchasing health insurance policy

Operation Strategy for Services (a) Types of service design:

What is service design is more important to understand how it actually works. Nick Marsh from Engine Service Design: 'Good service design is the process of deliberately crafting our experience and delivery of services, to make them more valuable for the people that use and provide them.' Service systems range from an individual person equipped with tools of the trade (e.g., architect, entrepreneur) to a portion of a government agency or business (e.g., branch office of a post office or bank) to complete multinational corporations and their information systems (e.g., Domino's Pizza, Federal Express). Hospitals, universities, cities, and national governments are designed service systems. Service design is all about making the service you deliver useful, usable, efficient, effective and desirable.

Its not intangible or about the feeling you give customers or users. It's about actual things, which service designers might call touch points. If you commission a service designer they might: Help you identify problem areas and generate ideas for improvement Redesign your products to improve the way they allow your customers to interact while they use a service. Design spaces so that they deliver a service more efficiently. Create printed material, websites, uniforms, adverts and the branded things that allow you to communicate what your service is all about. So a service design project is a strategic project which uses design techniques like thorough client research, collaborative ideas generation and early stage prototyping and testing to deliver services that are built around the real needs of clients, that simplify complex problems and deliver solutions that are future focused and cost conscious. The importance of services to our economy keeps growing and as our expectations of value for money from our public services keep rising, designers have started working with service providers to help them make their services better. This approach is often called service design, but it's maybe easier to start thinking about why it is that designers can help services. Designers have the tools and experience to understand what users want and need Their work combines technology, function and aesthetics, it's not just about the surface level They are issues-centered, and work on anything from saving the planet to making business opportunities

Well, to get down to brasses tacks, the services provide are: Advising and adding confirmation to LCs opened by The surat peoples co operative bank branches in India or at other international centers. Also, on request, advising and adding confirmation to LCs opened by other public sector, private sector, and cooperative sector banks in India. Opening LCs on India and getting them advised and confirmed through our branches in India. Negotiating drafts drawn under Indian banks' LCs, whether advised through us or otherwise, so long as they are not restricted to other banks for negotiation. Discounting drafts drawn under Indian banks' D/A LCs at competitive rates. Advisory services in respect of doing business with India, guidance in documentation for LCs emanating from India,etc. The surat peoples co operative bank is following management information system to make much effective business and attract to customers and allowing customer to access from anywhere.

(a) Types of production process

[Types of production process]

Over here as per the characteristic of the intermittent production process, we can say that bank is following this method in which points given below can be considered.

Production system is flexible inters of producing new policies and products related to consumer is very easy for the bank in case of inflation and deflation and running this scenario.

Design of the product changes with time to time which means the policies and product which is offered to customer is dynamic according to the need and requirement of the customer and which gets developed with new practices.

We can adjust production system according to the order in which it means that as per the need and requirement of time bank changes with its policies.

Variety of product can be introduced to the market as per requirement of the bank.

Production is not continuous when it comes to the market; it comes with certain time period after that it gets closed. In bank so many policies up till now have been introduced and have been closed due to need of environment.

Operation Scheduling.

Operations scheduling forms a very important part and acts as the back bone for the performance of the manufacturing or the service organizations. With the help of the operations scheduling, two very important factors or the aspects of the resources within an organization That can be pertained are as follows

[Operation scheduling] In todays competitive world, the orders that are placed either from the side of the customer or from the side of the assembly benches are to be completed on or before the contracted or the promised date. For fulfilling this, operations scheduling plays a very critical and an essential role and completely ensures that these dates are met. Operations scheduling helps in the confirmation or the revision of the tentative delivery date that has been promised in the original quotation. Sometimes during the operations scheduling of the work order, it may be discovered that the delivery date originally and tentatively promised cannot be met. All this may be due to the several problems like the materials that are required may not be available at that particular time or may not be available immediately. This problem can also occur

due to the increased plant loading while the customer is deciding whether or not to award the quoted job to this company. It has been observed that the operations scheduling has a direct affect on the effectiveness of the production function . According to Vollman, The priority planning and the shop floor control and the scheduling elements ultimately determine the performance of the production system. If the operations scheduling is carried out in an efficient manner, then there occurs a considerable improvement in the performance in the delivery. Also helps in the achievement of the goals that have been set by the company. Efficient operations scheduling playa a very critical part in the reduction of the production lead times. In service sector like banking, insurance, education industry it becomes more important to deliver the services which in intangible and that is of again time to time. Priority control techniques used for scheduling jobs. Companies differentiate based on product volume and product variety Differentiation affects how the company organizes its operations Each kind of company operation needs different scheduling techniques Scheduling has specific definitions for routing, bottleneck, due date, slack and queue. If bank is introducing new policy to the market then bank can use the Gantt chart Developed in the early 1900s by Henry Gantt to check the progress of the new policy and can make report from that policy.

Quality Control (A) Guidelines and objectives of quality of services provided by the firm:
Total Quality Management (TQM) is a management approach to long-term success through customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products, services and the culture in which they work The methods for implementing this approach come from the teachings of such quality leaders as Philip B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa and Joseph M. Juans core concept in implementing TQM is Demings 14 points, a set of management practices to help companies increase their quality and productivity: Create constancy of purpose for improving products and services. Adopt the new philosophy. Cease dependence on inspection to achieve quality. End the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier. Improve constantly and forever every process for planning, production and service. Institute training on the job. Adopt and institute leadership. Drive out fear. Break down barriers between staff areas. Eliminate slogans, exhortations and targets for the workforce. Eliminate numerical quotas for the workforce and numerical goals for management.

Remove barriers that rob people of pride of workmanship, and eliminate the annual rating or merit system.

Institute a vigorous program of education and self-improvement for everyone. Put everybody in the company to work accomplishing the transformation.

(TQM is maintained from head office and quality policy is checked by every Quarterly) (B) Techniques used for quality control. As such bank has not revealed the policy that they are using but certain data which is available on net we can explain in that way that like they might be using these techniques.

Activities of operation department

There are mainly 2 activities are done in any bank that is (1) collection of deposits (2) lending the money so in the collection of deposit they have produce a so many new schemes. And current running schemes like tax saving deposit, term deposit, current deposit, and deposit schemes for NRIs in which NRI Yield Enhancing Scheme NRI Services- FAQ .in term deposit schemes there are various schemes. As same if the bank is ready to provide deposit schemes so it will also provides various kinds of loans also like as under: personal loans = there are so many schemes in the personal loan commercial loans trade finance SME

Agriculture & Priority sector NRI loans

For NRIs bank has provided again various kinds of sachems like as under:

housing loans to NRIs and POIs NRI deposit scheme Ac opening form for NRI NRI services FAQ Foreign currency deposit scheme

FAQ on education cess and security transaction tax Star E Remit

BANKING OPERATIONS
There are different banking operations for which there are different procedures. The bank has to follow the rules and regulations to perform the functions.

Account Opening/ Lockers/Fixed Deposits:

In order to open an account or to issue a credit card or to take a locker basic documents that are required are as follows: Filling up the form KYC

a). Filling up the form:

There are different forms for different types of accounts that are available at the bank. The applicant needs to fill in the form with all the proper details and justify the same with relevant documents. A general forms contains details like name, address (permenant and correspondence), age, martial status etc. In Case of issuance of credit card one also needs to submit a salary slip if he is taking a credit card on the basis of his salary amount or else IT returns for past three years needs to be kept with the form. Whenever a person wishes to open a locker with the bank, along with filling up the form, he/she needs to sign in the mustard in front of the bank official and again verify it with another signature in mustard. In case of opening of an savings/current account, the form needs to be sign in presence of a bank official who than later on goes for IPV ie In Personal Verification of the client.

KYC:

The bank before opening any deposit account will carry out due diligence as required under KYC Guidelines Know Your Customer, issued by the RBI and or such other norms or procedures adopted by the bank The objective of obtaining KYC information is to enable the Bank to have positive identification of its customers. This is also in the interest of customers to safeguard their hard earned money.

The KYC guidelines mandate banks to collect from their customers.

Proof of identity:
A proof of identity means any approved government document which can enable the bank to know your personal details like, original name, Age, sex etc various proof of identity can be: PAN CARD ELECTION CARD RASHAN CARD PASSPORT

Proof of address:
A proof of address means any such document which can help to let the bank know the clients permanent and correspondence address. As the proof of address the following documents can be termed as valid by the bank points of view. PASSPORT

DRIVING LINCENCE BANK PASSBOOK(NOT OLDER THAN ONE QUARTER) LIGHT BILL PHONE BILL(ONLY BSNL AND MTNL LANDLINES) RASHAN CARD

When does KYC APPLY? Opening of a new account Opening a subsequent account where documents as per current KYC standards not been submitted while opening the initial account When the bank feels it necessary to obtain additional information from existing customers based on conduct of the account When there are changes to signatories, mandate holders, beneficial owners etc. KYC will also be carried out in respect of non-account holders approaching the bank for high value one-off transactions.

What has KYC got to do with opening bank account?

The first step in the laundering process for criminals is to get their money into an account with a Bank, often using a false identity and address. The funds so deposited will be transferred to other accounts locally or abroad or used for buying goods or services. These transactions would appear

to be like any legally earned money and becomes difficult to trace it back to its criminal past. Banks under law should not only prevent this, but should stop criminals who wish to use the banking channel to launder the ill-gotten money from illegal / criminal activities.

How could this affect you as a customer?

A key defense against money laundering is to prevent accounts being opened in false identities. Anyone wishing to open an account will therefore be asked for proof of their identity and address. These documents have to be essentially obtained irrespective of the type of account to be opened and the purpose for which the account is opened for. The fact that these documents are asked for opening of account does not mean that you are suspected of money laundering. Criminals try to appear to be normal law-abiding customers, for example they may try to open a number of accounts using small amounts of money. Hence it is necessary to identify all prospective account holders or customers. Any body including a criminal could falsely use your identity, if these identity documents are not obtained.

LOCKER OPENING
To open a locker/ access a locker, account holder has to agree to the following: Agreement of undertaking a rental locker. Declaration of nomination, which is FORM SL 1A (if there is a nominee assigned with the customer to access the locker) If the nomination is a minor, then two witnesses are required. Form to debit the rental amount from his account.

Other conditions regarding locker like the bank can break open the locker if the locker is not operated for more than a year.

The employee in charge of lockers has to maintain following registers:

Locker Access Register:

This register contains the detail as to which client has operated the locker for how much time period (his in-time and out-time) is recorded. This register contains each transaction on daily basis. On an average, 10 to 15 clients operate lockers daily. Master Key Register/ Key Allotment Register: This register is maintained as a proof that the key of the locker is handed over to the client. At the time of providing the lockers key, the customer has to sign in the register stating that the key has been received by him. Safe Deposit Register: In this register, the details of the locker holder are maintained. All the details whether the locker is operated single or jointly or is there any nominee along with the address, photograph, signature of the customer as well as the officer in charge, date on which the locker was provided, etc.

CHEQUE CLEARING

The work of clearing department starts after the cheques have been deposited in the bank. The work of clearing department is divided into two: Outward Clearing. Inward Clearing.

Outward Clearing:
When a customer deposits a cheque of another bank in his bank, it is known as outward clearing for his bank. For example, a client of The Surat Peoples co-op bank deposits cheque of The Surat Peoples Co-op Bank Ltd in his account, then this cheque will be regarded as outward clearing cheque for The Surat Peoples co-op bank

The following process is undertaken:

This amount of the cheque is encoded on it. For example, if a cheque is of Rs.5000, the encode on the cheque will be 500000. The last two zeros shows the paisa. The total cheques of a day are sorted in batches. Each batch contains 200 cheques as per MICR center rule. The MICR center of surat is S.B.I. There are 86 banks which participate in the clearing process.

Each batch of 200 cheques is known as block. Every block has a ticket on it which contains the total amount of 200 cheques. For example, there are 4000 cheques for outward clearing, then there will be 20 blocks of 200 cheques each. Each block ticket will contain total amount of the specific block. There is a main ticket on which total of all the blocks is written and even the total number of instruments is also written.

These outward clearing cheques are then sent to the MICR center that is S.B.I. After the cheques are sent to the MICR center, the bank will perform their backoffice work. The entries of outward cheques which are entered in the system are verified with the counter(pay-in-slip).

The entries will be checked and verified whether it is credited properly or not. After this the entries are posted and accordingly account will be credited. The MICR center machine reads the code of the bank printed on the cheque and will sort all the cheques.

Every banks cheques will be sorted and placed in their respective boxes. The respective cheques of each bank will be collected by them and those cheques will be regarded as inward cheques, the next day.

Inward Clearing:
When other banks client deposits cheques of our bank in their bank, it is called outward cheques for them. These cheques after sorting from the MICR center are received by our bank the next morning. These are called as inward clearing cheques. For example, a client of The Surat Peoples co-op bank draws cheque to a account holder of The Surat Peoples Co-op Bank Ltd then this cheque is called inward clearing cheque for The Surat Peoples co-op bank.

The process of inward clearing starts after the bank receives all the cheques from the MICR center after sorting. First of all, the cheques are technically verified. Technical verification includes verification of cheque number, MICR code, alpha series(branch code), transaction code, encoding amount. It also verifies whether the date and account payee is written properly or not. The next step is, to verify the signature. The signature on the cheque is verified by the signature stored in the system. If the signature does not verify then the cheque is not passed and is returned back. Even the amount on the cheque and account number is checked whether the account debited is correct or not. Zones are made consisting of 200 cheques. Each zone is checked and entered into the system. These zones are verified by other person and not by the person who has entered it into the system. This cross-checks the work and errors are minimized. The next step is validation. Validation means that the system will reserve the amount on the cheque. For example, a person has Rs.6000 in his account and a cheque of Rs.5000 is drawn by him. In this validation step, the system will reserve Rs.5000 in his account and only Rs.1000 will be accessible in his account. If another cheque of Rs.2000 is drawn by him then the system will show an error that the amount is not sufficient in the account. Posting of cheques is done after that. In posting the amount will actually get debited from the accountholders account.

The entries which fail to be posted are generated by the system. Thus, the system will generate a failure report. There are few reasons because of which the entries fail to get posted. These reasons can be:

Lack of sufficient balance in the account. Signature does not match the signature stored in the system When there is a stop payment request. If the account is freeze by the bank because of some legal matter, then posting of that account is not done.

These cheques which fail to be posted are returned with their specific failure reason slip. The returned cheques are sent to the MICR center which is later on returned to the bank in which it was deposited.

HOUSING LOAN
The housing loan procedure is as follows: The bank gets the file for loan from the builders. The builders pass on the file of the people who need loan for purchasing the property. The bank then logins the file in the office. The bank sees the prospect of the client. It studies the place where the customer wants to purchase the property. Bank considers some areas of Surat as negative areas like varachcha, katargam, bestan where they dont provide loans. Bank provides loans in the areas which are positive like vesu, pal, adajan, piplod.

The employee of this department analysis the stability of income, creditability, history of banking of the client in order to sanction the loan.

The customer has to sign an agreement with the bank and satakhat is made. Satakhat is the initial payment made to the builder.

This satakhat is given to the bank and the bank does the valuation of the property. A person appointed by the bank would do the valuation of the property on the basis of the location of the property, rates, etc.

Suppose the property is of Rs.500000 then bank would finance maximum 80% of the loan amount which is Rs.400000. In rare cases, bank finance more than 80% of the loan amount.

After the valuation, a legal opinion about the property is being taken by the advocate. The advocate will legally check the property, whether that property is sealed by some other bank, or is there any liability regarding that property, etc. The advocate will legally analyze the property and if found proper, he will project a clean report. After this report is obtained, bank can provide loan for such property.

The credit manager will go through the case and then the RAC head would recommend the case to the central office.

The case gets approved from the central office and finally the loan gets sanctioned. The customer has to sign an agreement. The interest charged for housing loan is a floating charge going currently at the rate of 8.75% per annum. The processing fees charged by the bank is at 1% of the loan amount. The bank would disburse the loan amount after deducting the processing fees.

The loan is disbursed at each level of construction of the property as and when the payment is to be made to the builder. The customer has to place a request to the firm to disburse the amount when needed. The bank would check the status of the property and would disburse the amount accordingly.

Final stage, a sale deed is prepared by the bank, which is signed by the customer. This deed is prepared legally at the court where all the parties are present. The sale deed includes 2 photographs of the property on which the customer and the bank official would sign. This deed contains all the documents of the property which is under the ownership of the bank till the loan tenure gets over.

After bank has received his full amount of loan back from the customer, bank will release the papers.

PROCESS OF NEFT Step-1:

An individual / firm / corporate intending to originate transfer of funds through NEFT has to fill an application form providing details of the beneficiary (like, name of the beneficiary, name of the bank branch where the beneficiary has an account, IFSC of the beneficiary bank branch, account type and account number). The application form will be available at the originating bank

branch. The remitter authorizes his/her bank branch to debit his account and remit the specified amount to the beneficiary. Customers enjoying net banking facility offered by their bankers can initiate the funds transfer request online. Some banks offer the NEFT facility even through the ATMs. Walk-in customers will, however, have to give their contact details (complete address and telephone number, etc.) to the branch. This will help the branch to refund the money to the customer in case credit could not be afforded to the beneficiarys bank account or the transaction is rejected / returned for any reason.

Step-2:
The originating bank branch prepares a message and sends the message to its pooling centre (also called the NEFT Service Centre).

Step-3:
The pooling centre forwards the message to the NEFT Clearing Centre (operated by National Clearing Cell, Reserve Bank of India, Mumbai) to be included for the next available batch.

Step-4:
The Clearing Centre sorts the funds transfer transactions destination bank-wise and prepares accounting entries to receive funds from (debit) the originating banks and give the funds to (credit) the destination banks. Thereafter, bank-wise remittance messages are forwarded to the destination banks through their pooling centre (NEFT Service Centre).

Step-5:
The destination banks receive the inward remittance messages from the Clearing Centre and pass on the credit to the beneficiary accounts.

TIME NORMS FOR BUSINESS TRANSACTIONS Sr No 1 BUSINESS TRANSACTION ENCASHMENT OF CHEQUES RECEIPT OF CASH 2 (DEPENDING ON DENOMINATIONS OF NOTES) ISSUANCE OF DEMAND DRAFT/PAY ORDER/TERM DEPOSIT 3 4 5 6 7 8 9 RECEIPTS CANCELLATION OF DEMAND DRAFT/PAY ORDER REPAYMENT OF TERM DEPOSIT OPENING OF ACCOUNT RETIREMENT OF BILLS UPDATING OF PASSBOOK (FOR A FEW ENTRIES) STATEMENT OF ACCOUNT 10 - 20 MIN 5 - 10 MIN 5 - 10 MIN 15 - 20 MIN 20 - 30 MIN 5 - 7 MIN 5 - 10 MIN TIME NORMS 5 - 8 MIN

WITHIN 5 - 7

DAYS 10 11 COLLECTION OF CHEQUES : LOCAL COLLECTION OF CHEQUES : OUTSTATION 2 - 3 DAYS 7 - 10 DAYS

Time norm form Business Transaction are as per RBI guidelines

Finance Department
FINANCIAL OVERVIEW OF THE BANK:

The profit of the bank has increased by 61.76% which has reached to Rs. 39.86cr. Investment Rs. Crore 604.65 Working capital Rs. Crore 1610.52 Net Profit Rs. Crore 12.94 Issued share fund of the bank increased by 20%. Against the approved share fund of Rs 50cr bank issued share of Rs. 43.13cr with the increment of Rs. 7.56cr.

Reserve and other funds of the bank increased by 6.28%. As compared to previous year Reserve and other funds the fund increased by Rs. 20.75cr which reached to Rs. 310.85cr.

Loans and advances increased by Rs. 143.34cr which reached to Rs 821.80cr. Bank has maintained CRR ratio above the minimum criteria of 6% and bank has maintained SLR ratio 29% which is much higher above the criteria of 25%.

Gross NPA Rs. Crore 13.98 Net NPA 0% Share Holders 72,300 Staff Members 408 Proposed Dividend 15%

SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PREPARATION:

The accompanying financial statements are prepared on the historical cost basis, in accordance with normally accepted accounting principles on going concern basis and conform to the statutory provisions and practices prevailing within the co-operative banking industry in India.

The Bank's accounts and operations are governed by the present Byelaws, provisions of The Gujarat State Co-operatives Societies Act, 1961 and Banking Regulation Act 1949 (as applicable

to co-operative Societies) & rules made thereunder and guidelines of regulating authorities and Reserve Bank of India.

The Bank is operating its banking activities through Central Office, its 23 Branches and separate Demat segment.

SIGNIFICANT ACCOUNTING POLICIES

1) FIXED ASSETS:
A) Fixed assets are stated at cost of acquisition or construction less accumulated depreciation. Fixed assets are capitalized at cost inclusive of legal and/or installation expenses. B) Non-refundable deposits paid for acquiring the Lease Hold Premises is being amortized over the period of Lease. Capitalized expenses incurred on leasehold assets are capitalized separately and depreciation is provided on such assets at WDV method (except on computers). C) Depreciation is charged over the estimated useful life of the fixed assets on written down value method at the following rates on all assets, except computers. As per guidelines of Reserve Bank of India depreciation on computers is provided at flat rate of 33.33%.

2) INVESTMENTS:

In accordance with the RBI Guidelines, Investments are classified into (i) 'Held to Maturity' (ii) Held for Trading' (iii) 'Avalilable for Sale' categories (hereinafter called 'categories'). Also, investments are further classified and disclosed in Balance Sheet under five groups -Central & State Government securities, other approved securities, shares, other investments with financial institution and other investments with PSUs.

Basis of Classification:
Securities that are held principally for resale within 90 days from the date of purchase are classified as "Held for Trading".

Investments that the Bank intends to hold till maturity are classified as "Held to Maturity". These are carried at acquisition cost unless it is more than face value, in which case the premium is amortized over the period remaining to maturity. Securities which are not to be classified in above categories are classified as "Available for Sale".

An investment is classified in any of the above categories at the time of its purchase.

Valuation of Investments:

A) Investments under' Held to Maturity' category:

These are carried at acquisition cost and not marked to market. Any premium on acquisition is amortized equally over the remaining period of maturity of the security on straight-line basis. Such fi amortization of premium is transferred to Premium paid on Investment Amortized A/c in Profit and Loss Account.

B) Individual scrip classified under 'Held for Trading' and 'Available for Sale' category;
The valuation of investments held under available for sale category is determined security/script wise as per RBI guidelines and in accordance with methodology and value determined by Fixed Income Money Market and Derivatives Association of India (FIMMDA) and Primary Dealers Association of India (PDAI).

Each security is revalued at the market price or fair value determined as per Regulatory Guidelines and only the net depreciation of each group for each category is provided for and net appreciation if any is ignored. On provision for depreciation, the book value of the individual securities remains unchanged after marking to market.

C) Investments are classified as performing and non-performing based on the guidelines issued by RBI. (Income Recognition and Asset Classification norms).

3) ADVANCES:
Advances are shown in balance sheet at its actual out-standing balances and Provisions for PA and NPAs are made on the basis of asset classification & provisioning requirements under the prudential B. norms laid down by the Reserve Bank of India from time to time.

4) ACCOUNTING FOR PROVISION, CONTINGENT, LIABILITIES/ASSETS

The Banks policy is the ensure that the balance is provisions, specific funds (provisions) and assets are adequate to cover the probable outflow of any expenses/liabilities and total principal amount outstanding in respect of all Non - Performing Advances, as also all other contingencies including Un-serviced and doubtful Investments and accordingly recognizes the provisions only when a reliable estimate of the amount of the obligation can be made. Any liability of disputed nature in taxation has been fully provided for in the books of account.

5) STAFF BENEFITS:
Provident Fund: Eligible employees receive benefit from Provident Fund, which is defined contribution plan. The contribution made by Bank is charged to Profit and Loss Account. The Bank has no further obligations under the provident fund plan beyond its monthly contribution.

Provision for Retirement Benefit & Staff Gratuity Fund; As per consistent policy adopted by the Bank, every year the provision for retirement benefit & staff gratuity have been made out of profit by transferring the appropriate amount to specific (earmarked) reserve fund as considered appropriate by the management. Further, as per RBI guidelines, additional liability for staff gratuity for enhanced limit (i.e. from Rs 3.50 Lacs to Rs 10.00 lacs) shall be amortized over 5 years beginning from this financial year 2010-11, subject to a minimum of 1 /5th of total amount involved. Payment of actual amount of obligation on retirement benefit and gratuity benefit to eligible employees is made out of such specific reserve fund during the year.

6) PROVISION FOR TAXATION:

Income tax expense is accrued in accordance with AS 22 -"Accounting for Taxes on Income" which includes current taxes and deferred taxes on estimated basis. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Impact of unrecognized past deferred taxes due to differences between past taxable income and past accounting income has been reflected and charged to Profit & Loss Accounts. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available.

Current year taxes are determined in accordance with the prevailing tax rate and tax laws on estimated basis.

7) REVENUE RECOGNITION:
Interest Income is recognized in Profit and Loss account on accrual basis except in following cases; A) Interests on Non Performing Assets (including overdue bills) & Non Performing investments are recognized on realization basis, as per RBI Guidelines. B) Commission & dividend income are recognized on realization basis. C) Insurance claims are recognized on cash basis.

Human Resource Department

Human resource management

(1) Activities of personnel management (2) Hierarchy structure of organization

(3) Recruitment & selection process (4) Hr planning (5) Training and development (6) Promotion and Transfer (7) Performance appraisal system (8) Wages & salary structure (9) Employee welfare

[Human resource management]

Activities of personnel department

The success of an organization depends on the capacities and capabilities of its personnel. Unless an organization devotes enough resources on the development of its human resource, it would not get the required output from its personnel. An organizations commitment to the development of human resource has to be reflected in its policies, procedures, practices, customs and ideals.

(1)HR Managers activities.

The activities carried out by HR MANAGER will vary widely according to the needs of the organization, the context within which they work and their own capabilities. He devotes his service as under. As a broad guideline, the HR provide services to the organization -humanresourceplanning -recruitment/selection -employee development -reward systems -employee relations -health/safety management -staff amenities

-salary administration -personnel administration

BUSINESS PARTNER ROLE.-

Share responsibility with their line management for the success of the business and the running of the business. STRATEGIST ROLE-

contribute to the long term / strategic organizational issues like people selection, people requirement, people development, organization development, quality of work life etc. INTERVENTIONIST ROLE-

Proactively contributes to the change management, people management, team development, new technology introduction etc INTERNAL CONSULTANCY ROLE-

acts as a management consultant on HR ISSUES working alongside the line managers. MONITORING ROLE-

monitors the implementation of HR policies / procedures.

Hierarchy structure of organization

[Hierarchy structure of organization]

Hierarchy of man power in organization

[Hierarchy man power of organization]

Note: 1) 10th, 9th, 8th

---middle management

2) 4th, 5th, 6th, 7th 3) 1st, 2nd, 3rd

---top management ---junior management

Recruitment & Selection Process

In the recruitment and selection process bank has its unique way. Bank haired the recruitment committee for the applicable candidate to be gets selected by the board. Careful selection of an employee is very important. A misfit will cause serious consequences. Employees, who are selected for work unsuitable to their aptitude and training, usually tend to be inefficient. This upsets other employees and affects the general morale. Moreover, badly selected employees do not usually stay long with the organization. Either they leave or discharged or the time and money spent on them is wasted. A good recruitment procedure will influence the successful candidate in his future attitude to the firm.

 Recruitment meaning

Process of identifying and hiring best-qualified candidate (from within or outside of an organization) for a job vacancy, in a most timely and cost effective manner sources of recruitment

[Sources of recruitment]

For recruitment each eligible candidate is given a equally chance to get enroll and there are some specific seats for SC/SEBC/ST/OBC with this policy the bank are doing there recruitment .in the above diagram the sources which are the sources from where generally banks recruit the candidate.

Factors affecting recruitment policy

There are mainly 2 factors which affect the recruitment most while screening out candidate is as below.

Factors affecting recruitment policy

[Factors affecting recruitment policy] As discussed earlier, the recruitment committee is called for selection of applicable candidate and that committee is paid for the said work and after recruiting the

candidate the selection procedure begins after facing the entire recruitment problems, selection procedure takes place.

(2) Selection process

The Employee selection Process takes place in following order 1. Preliminary Interviews- It is used to eliminate those candidates who do not meet the minimum eligibility criteria laid down by the organization. The skills, Academic and family background, competencies and interests of the candidate are examined during preliminary interview. Preliminary interviews are less formalized and planned than the final interviews. The candidates are given a brief up about the company and the job profile; and it is also examined how much the candidate knows about the company. Preliminary interviews are also called screening interviews. 2.

Application blanks- The candidates who clear the preliminary interview are

required to fill application blank. It contains data record of the candidates such as details about age, qualifications, reason for leaving previous job, experience, etc.

3.

Written Tests- Various written tests conducted during selection procedure are

aptitude test, intelligence test, reasoning test, personality test, etc. These tests are used to objectively assess the potential candidate. They should not be biased. 4.

Employment Interviews- It is a one to one interaction between the interviewer

and the potential candidate. It is used to find whether the candidate is best suited for the required job or not. But such interviews consume time and money both. Moreover the competencies of the candidate cannot be judged. Such interviews may be biased at times. Such interviews should be conducted properly. No distractions should be there in room. There should be an honest communication between candidate and interviewer.

5.

Medical examination- Medical tests are conducted to ensure physical fitness of

the potential employee. It will decrease chances of employee absenteeism. 6.

Appointment Letter- A reference check is made about the candidate selected and

then finally he is appointed by giving a formal appointment letter.

Bank is following the same pattern.

[Selection process]

Hr planning
The development of strategies for matching the size and skills of the workforce to organizational needs. Human resource planning assists organizations to recruit, retain, and

optimize the deployment of the personnel needed to meet business objectives and to respond to changes in the external environment. The process involves carrying out a skills analysis of the existing workforce, carrying out manpower forecasting, and taking action to ensure that supply meets demand. This may include the development of training and retraining strategies. In the bank branch hr planning plays an important role to recruit people, managing them in bank, to plan future of the bank as well as the employee. HR planning is done at very higher level in the bank and then applicable to other branches.

[Hr planning]

Training & development activities

After selection procedure it becomes necessary to retain an employee in the firm for long time and for that with upgrading technology his/her knowledge should be upgraded time to time it means he should be provided knowledge as per the requirement In this firm they give the knowledge but in terms of development oriented. there have firmed mid term policy called VISION -2013 for 700 officers and 500 clerical staff members and motivational programmed called MERCHING AHEAD PROGRAMME is being developed for clerical staff. There are in-house training systems which upgrade the knowledge of practical environment, specific group of employees. They have developed the location programmed which gives the easiness of learning in company programmed area of outside training is also given. Leadership development system is also done by the Development officer to increase the skill of manager. Its all about not to give the knowledge of current state of affairs but also to enhance the capabilities of the individual. So it is basically development oriented training.

In terms of educational ways of training & development

Optimum Utilization of Human Resources

Development of Human Resources Development of skills of employees To increase Productivity To raise Team spirit To develop organization Culture Organization Climate Healthy work environment To increase morale of employee Training and Development aids in organizational development i.e.

Organization gets more effective decision making and problem solving. It helps in understanding and carrying out organizational policies .diagram is given as below. Diagram of training and development.

[Diagram of training and development]

Promotion & transfer policies

Basically in the banks promotion and transfer is done from the main branch through the CMD of the bank. So the rules is follows here as same. Transfer can be given in any state of the India. It depends on the activities and the profit of the branch is shown by the CMD and then they are given transfer to different places for the scale 1 to 3 officers it can be done on the overall India bases. However the scale increases the transfer places got decreased in terms of distance if the bank report shows lacking of proper profit it will set a committee for inspection for finding out the reason for decreasing profit of particular branch and till then he is given leave for the time. Promotion is purely based on performance based employees also and the branch working profit also. and workmen staffs promotion or transfer is done on the bases of their wish it means that if workmen staff needs then only transfer is being given. And for the officers it is done on through HO from Bombay.

Promotion & transfer policies according to theory

Transfer:
1.A changing of ownership, such as real estate, a security from one to another 2. A movement of funds from one account to another.

Promotion:
The advancement of an employee from one position to another position that has a higher salary range maximum is called a promotion. Promotion can also result in a higher level title and higher level job responsibilities. Decision making authority tends to rise as well. These are examples of promotions: HR Assistant to Hr Generalist; HR Generalist to HR Manager; HR Manager to HR Director; HR Director to HR Vice President.

Demotion:

All organization has Discipline & Conduct rules in one form or the other, which are traditionally enforced but not encouraged. IR provides a form of few punishments (through minor and major penalty) to choose from for all and any type of mistakes committed by employees. No doubt that a few 'standard' punishments can not serve the purpose of behavior correction for all occasions. At times, several new methods have to be tried out, like many other organizations do.Alternative disciplining measures time for public/social service, gardening, extra-time in office in odd jobs, compulsory (paid) leave for one day, and many other creative ideas are possible. Sometimes, confidential letters show-cause, displeasure, warning etc. can play an effective role.

[Demotion]

Performance appraisal system

People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people. Performance appraisals of Employees are necessary to understand each

employees

abilities,

competencies

and

relative

merit

and

worth

for

the

organization. Performance appraisal rates the employees in terms of their performance.

Performance appraisals are widely used in the society. The history of performance appraisal can be dated back to the 20th century and then to the second world war when the merit rating was used for the first time. An employer evaluating their employees is a very old concept. Performance appraisals are an indispensable part of performance measurement.

Typically, Performance Appraisal is aimed at: To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the

management in exercising organizational control. To diagnose the training and development needs of the future. Provide information to assist in the HR decisions like promotions, transfers etc.

Provide clarity of the expectations and responsibilities of the functions to be performed by the employees .To judge the effectiveness of the other human resource functions of the

organization such as recruitment, selection, training and development .To reduces the grievances of the employees.

Helps to strengthen the relationship and communication between superior

subordinates and management employees.

Process of Performance Appraisal

[Steps of performance appraisal]

Wages & salary structure

Wages and salary structure of this bank is strictly confidentially so no information is being provided about wages and salary. The structure of the wages and salary are kept confidentially. Wages & salary is based on RBI rules & regulations.

Employee welfare

[Welfare of employee] Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages. Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration. The welfare measures need not be in monetary terms only but in any kind/forms. Employee welfare includes monitoring of working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployment for the workers.

Reason for welfare of employee

The very logic behind providing welfare schemes is to create efficient, healthy, loyal

and satisfied labor force for the organization. The purpose of providing such facilities is to make their work life better and also to raise their standard of living. The important benefits of welfare measures can be summarized as follows:

 They provide better physical and mental health to workers and thus promote a healthy work environment Facilities like housing schemes, medical benefits, and education and recreation facilities for workers families help in raising their standards of living. This makes workers to pay more attention towards work and thus increases their productivity. Employers get stable labor force by providing welfare facilities. Workers take active interest in their jobs and work with a feeling of involvement and participation. Employee welfare measures increase the productivity of organization and promote healthy industrial relations thereby maintaining industrial peace. The social evils prevalent among the labors such as substance abuse, etc are reduced to a greater extent by the welfare policies. For employee welfare bank is providing packages like house, .good medical assured, job security, and schooling for children, paying electricity bills, discounts offers, welfare packages, shopping coupons etc. and the performance of the manager, branch, as well as it takes the opinion of the current customer of the branch and solve their doubt with manager as well as their owner of the accounts and send the reports to the head office.

Analysis of Bank

STRENGTH
The Bank is the "First Registered Urban Co-operative Bank" of India.

All Branches Connected in CBS. Among the first 13 Co-operative Banks in september 1988 to get the "Scheduled Bank" Status.

The bank commenced "Total Branch Automation" in 1992-93. The Bank introduced "SMS Banking Facility" and "View Account Terminal" {VAT} facility at all branches for better customer service.

Bank started its own "Training Centre" for providing training to its employees. The first Bank to provide the "Depository Participant Services" in South Gujarat. Only coop bank of South Gujarat to have direct connectivity to RBI server for RTGS /NEFT facility.

Only bank to have direct connectivity with RBI server to have NECS facility. Only Bank to give RTGS /NEFT facility on STP basis - straight through processing .

WEAKNESS
The Surat Peoples Co-op Bank Ltd. lack technologically as compared to another bank. There has been some problem in relation to staffing.

Conclusions

Facilities of bank and what are the services this bank provides from other bank. This bank has 23 branches across Surat city which includes 1 at Vapi and 1 at Navsari Also staff facilities are also adequately provided by bank which delights their employees.

Importance of the documentation of the bank. It has strong brand equity and a wide customer base of over 70,000 The Surat Peoples Co-op Bank Ltd financial strength has been recognized by international credit rating agencies. A strong capital base ensures that it is well placed for growth of business.

The bank, which has consistently earned profit since its inception, has committed and competent human capital to power its aggressive growth plan.

The Surat Peoples Co -op Bank Ltd looks confidently into future to face & thrive in intense competitive environment that is emerging in global era.

The Bank has now gained experience and has in place the strategies required for gaining a leadership position