SUMMER INTERNSHIP PROJECT ON LOAN & ADVANCES MANAGEMENT IN GOPINATH PATIL PARSIK JANTA SAHAKARI BANK LTD.

SUBMITTED TO ANKITA SHREVASTEV ORIENTAL INSTITUTE OF MANAGEMENT (UNIVESITY OF MUMBAI) FOR THE DEGREE OF MASTERS IN MANAGEMENT STUDIES (2012-2014) BY (VISHAL DILIP NIMBALKAR)

1|Page

DECLARATION

I hereby declare that the project title Loan & Advances Management in Gopinath Parsik Janata Sahakari Bank Ltd. is submitted in fulfillment of Masters in Management Studies degree of University of Mumbai in the academic year 2012-2013 was carried with sincere intention.

The project period duration was form 11/05/2013 to 29/07/2013.

To the best of my knowledge it is an original piece of work done by me and it has neither been submitted to any other organization nor published at anywhere before.

_________________________ (VISHAL DILIP NIMBALKAR)

2|Page

CERTIFICATE

3|Page

ACKNOWLEDGEMENT

Before we get into the thick of thing, I would like to say that it was a great pleasure & privilege for me to have the opportunity of undertaking the training at Gopinath Patil Parsik Janata Sahakari Bank Ltd. for a period of 60 days. I would like to thank the Bank for providing me such an opportunity.

I express my sincere thanks to my project guide, Mr. Sanjay Patil, Designation Head of Loan Dept. & Mr. Sanjay Gaikwad, Designation Asst. Manager of the branch as well as Mr. Dilip Jadhav, Designation Supervisior of the Airoli sec 5 branch for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge them for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support they had provided to me with all stages of this project.

I would also thank my Institution and my faculty members without whom this project would have been a distant reality. I am sure that the knowledge & information that I have gained during this period would be of immense value for my growth in business world.

4|Page

TABLE OF CONTENT
CHAPTER CONTENT PAGE NO.

I.

Executive Summery

II. III. IV.

Objective of the Study Methodology Industry Introduction

V.
VI.

Gopinath Patil Parsik Janata Sahakari Bank Ltd.

VII. VIII

5|Page

EXECUTIVE SUMMERY

The report contains introduction to Banks, which includes past, present and future of banks and challenges 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 competition requires prompt and efficient services to the customers at reasonable cost. These days bank aim to provide maximum satisfaction to their customers.

The next part of the report consist the knowledge about the cooperative banks in India. It includes history of cooperative bank in indianite features and service provided by it in rural and urban sector. The structure of cooperative bank in India is also includes in it.

Then a brief introduction of Gopinath Patil Parsik Janata Sahakari Bank Ltd. comes in next part of the report which consist the history, management team and objective made by Chairman MR. Ranjit Patil. The current financial position of the bank also includes in this part.

Then the meaning of certain terminology includes in this report .these terms are related with the topic for ex. cash credit, lease, secured loan etc. the objective of this section is only to make aware about certain terminology used by bank regarding loan facility.

The next section of report i.e. training methodology consist title of report, duration of training session, objective and limitation of study etc. this section basically giving the outline of the report.
6|Page

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

7|Page

INDUSTRY PROFILE

8|Page

INDUSTRY PROFILE

WHAT IS BANKING?
Banking in a traditional sense is 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, bill of exchange. Safe deposit lockers Custodian services. Investment and Insurance Services.

The business of banking is highly regulated since banks deal 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 the 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

9|Page

Negotiable Instruments Act, 1881

Bank lends money either for productive purposes to individual, firms, and Corporate etc. for buying house property, cars and other consumer durables and for investment Purposes to individuals and the 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 deploying somepercentage of deposit in statutory Reserves like SLR & CLR.

STANDARD ACTIVITIES OF BANK

Banks 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 accounts. Banks also enable customer payments via other payment methods such as telegraphic transfer, and ATM. Banks borrow money by accepting funds deposited on current accounts, by accepting term deposits, and by issuing debt securities such as banknotes and bonds. Banks lend money by making advances to customers on current accounts, by making installment loans, and by investing in marketable debt securities and other forms of money lending. Banks provide almost all payment services, and a bank account is considered indispensable by most businesses, individuals and governments. Non-banks that provide payment services such as remittance companies are not normally considered an adequate substitute for having a bank account. Banks borrow most funds from households and non-financial businesses, and lend most funds to households and non-financial businesses, but non-bank lenders provide a significant and in many cases adequate substitute for bank loans, and money market funds, cash management trusts and
10 | P a g e

other non-bank financial institutions in many cases provide an adequate substitute to banks for lending savings 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 the capital it lends out to customers. The bank profits 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.

This 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 dependent on the needs and strengths of 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.

11 | P a g e

BANKING IN INDIA
Banking means accepting for the purpose of landing or investment of deposits of money from the public repayable on demand or otherwise one withdraw able by cheque, draft or otherwise. Banking in India has its origin as early as the Vedic period. It is believed that the transaction From money lending to money banking must have occurred even before Manu, the great Hindu Jurist, who has devoted a section of his work to 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 finance foreign trade and commerce. During the days of the east- India Company, it was the turn of the agency house to carry on the 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 Hindustanis 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 established three banks, the Bank of Bengal in1809, the Bank of Bombay in 1840 and the banks 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 ion 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 the newly constituted the state bank of India.

NATIONALIZATION
The GOI issued an ordinance and nationalized the 14 largest commercial banks with effect from the midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the

12 | P a g e

Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on August 1969. A second dose of nationalization of 6 more commercial banks followed in 1980. 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 nationalized banks and resulted in there 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 techsavvy banks, and included Global Trust Bank (the first of such new generation banks to be setup), which later amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the 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 given voting rights
13 | P a g e

which could exceed the present cap of 10%, at present it has gone up to 74% with some restrictions. The new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 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 led to the retail boom in India. People not just demanded more from their banks but also received more.

Currently (2007), banking in India is generally fairly mature in terms of supply, product range and reach-even though reach 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 comparable economies in its region. The Reserve Bank of India is an autonomous 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 services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect M &As, takeovers, and asset 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

14 | P a g e

to hold more than 5% in a private sector bank since the RBI announced norm sin 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, INGVyasa 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 the Combination of Banks of India and bankers to all others banks as well. The Indian Banking industry, which is governed by the Banking Regulation Act of India, 1949can be broadly classified into two major categories, non -scheduled banks and scheduled banks.

1. Schedule Banks:These banks must have paid-up capital and reserve of mot less than Rs.50,00,000. They must satisfy the RBI than its affairs are mot conducted in a manner detrimental to the interests of its depositors. These are further classified as follow:

State co-operative Banks

15 | P a g e

Commercial Banks

Scheduled banks comprise 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 (the old/ new domestic and foreign). These banks have over 67,000 branches spread across the country in every city and villages of all nook and corners of the land.

2. Non-Schedule Banks:These are banks, which are not included in the second schedule of the Banking Regulations Act, 1965. It means they do not satisfy the conditions laid down by that schedule. They are further classified 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 different sectors. The main functions of the commercial banks comprise:

transfer of funds

16 | P a g e

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 hires the commercial banks for various purposes like tax collection and refunds, payment of pensions etc.

CURRENT SCENARIO
Indian Banking Sector Outlook - 2013

Over the past couple of years, the Indian banking sector has displayed a high level of resiliency in the face of high domestic inflation, rupee depreciation and fiscal uncertainty in the US and Europe. In order to stimulate the economy and support the growth of banking sector, the Reserve Bank of India (RBI) adopted severe policy measures such as increasing the key monetary policy rates such as repo and reverse repo 16 times since April 2'009 to Oct 2011 and tightening provisioning requirements. Amidst this economic scenario, the key challenge for the Indian banking system continues in improving their operational efficiency and implement prudent risk management practices. Some of the key trends expected to emerge in the near future are as under-Economic slowdown likely to impact the demand for credit

17 | P a g e

High interest rates, subdued industrial production and domestic consumption impacted the growth of the Indian economy which slowed down from 8.4% in FY11 to 6.5% during FY12.The scheduled commercial banks' (SCBs) overall credit grew at a slower pace during FY12 at 17% yo-y as compared to 21.5% registered during FYll.As per the recent RBI data, the non-food bank credit increased by 15.5% in Oct 2012 over its corresponding month previous year, as compared to 18.2% witnessed in Oct 2011 over its corresponding month previous year. Similarly, credit to industry and services sector recorded a slower growth of 15.2% and 13.7% respectively as against 23.1% and 18.4% during the same period. As per RBI's second quarter review of monetary policy for FY13, the GDP growth estimates for FY13 is revised downwards from 6.5% forecasted earlier to 5.8%.Any further slowdown in the Indian economic growth is likely to impact the demand for bank credit.

18 | P a g e

COMPANY PROFILE

19 | P a g e

COMPANY PROFILE Gopinath Patil Parsik Janata Sahakari Bank Ltd.

Gopinath Patil Parsik Jananta Sahakari Bank Ltd. (GPPJSB Ltd.) Founded on 21st May 1972, in a remote village in Kalwa (Thane District, Maharashtra), Gopinath Patil Parsik Janata Sahakari Bank enjoyed tremendous patronage right since the inception. It established under the leadership of Shri. Gopinath Shivram Patil and other founding directors, the bank flourished and expanded its reach to Thane, Navi Mumbai, Pune and Nashik. With an inspiring deposit base more than Rs 1100 Crores, Gopinath Patil Parsik Janata Sahakari Bank is riding high on customer satisfaction and trust. What is even more heartening is that the bank has helped many to meet their financial needs.

They are currently operating through 42 fully-equipped branches and 4 Extension Counters. Gopinath Patil Parsik Janata Sahakari Bank is getting ready for the next phase of rapid expansion.

Milestones
Scheduled Bank status on 30th January, 1998. Ranked as the The Best Urban Bank" among the 400 Urban Banks in Maharashtra. (Three Times Award) Only bank in Maharashtra with low/negligible rate of defaulters

20 | P a g e

CSR (Corporate Social Responsibility) Initiatives

Financial assistance to various Charitable Trust, Education of students (members), medical help to members Nature conservation - plantation programmes in and around Thane Closely associated with a Charitable Trust managing an Agricultural College (Diploma), Secondary School and a Vruddhashram (Old-Age Home). Recently, the committee has given the Founder's name to the Bank "GOPINATH PATIL PARSIK JANATA SAHAKARI BANK"

21 | P a g e

HISTORY

In the year 1971 the Government of Maharashtra acquired all agricultural land of 68 villages of Thane-Belapur belt in Thane district of Maharashtra, for the purpose of setting up a new city i.e. New Bombay. Acquisition of land for New Bombay project means compulsorily depriv ing several thousands of people of their means of livelihood. Though Government was paying them money as compensation, but they were parted away from their land, the only means of livelihood forthem.

To equip the project affected persons and their family members with strength and ability, to survive with new urban means of livelihood, it was necessary to provide them financial assistance. With a view to provide financial assistance, generate employment and means of livelihood, Late Shri.Gopinathdada Shivram Patil along with a group of youngsters of Kalwa village took the initiative of formation of Urban Co-operative Bank. These groups of youngsters were successfully running a Consumer Co-operative Society by name Kalwa Consumer Co operative Society. This group of youngsters, on their study-tour to Western Maharashtra, for study of co-operation, was fascinated by network and growth of cooperative societies and the role played by Urban Cooperative Banks in the development of that region.

After the study tour, Late Shri.Gopinathdada Shivram Patil along with a group of youngsters called a meeting of residents from Kalwa and nearby villages and took the first step for the formation of the bank in December 1971 by collecting Share Money. Collection of share money was the most difficult task at that time. In a village where there were no banking facilities
22 | P a g e

available, these youngsters started collecting Rs. 50/- as contribution towards share capital by going door to door. In the year 1971 Rs.50/- was also a substantial amount and it took lot of efforts and hardship to collect the required numbers of members.

The registration of Parsik Janata Sahakari Bank Ltd. was approved by Co-operative Department in the month of April, 1972, with registration number TNA/BNK/160 dated 24th April, 1972. The first branch office at Kalwa Naka was opened on 21st May, 1972.The bank was named as Parsik because active jurisdiction of bank was the west side area of Parsik Hill, which has range from Kalwa to Belapur (the famous Parsik Railway Tunnel is situated in the same range). Parsik also means Parshwanath (Lord Shiva), whose temple was existed on the hill as per history. Bank achieved status of Scheduled Bank on 30thJanuary,1998.

As an impact of the Trust shown in Late Shri. Gopinathdada Shivram Patil, an amount of Rs.1 lac was collected within 3 months. For the first three to four years, Bank was trying to maintain its existing Deposit but with consistent efforts of Late Shri. Gopinathdada Shivram Patil and his team, Bank accelerated its pace of growth in the forthcoming years. The Consistent and Dedicated efforts of Late Shri. Gopinathdada Shivram Patil and his team brought dignity to the Bank in the form of Padmabhushan Vasantdada Patil Puraskar continuously for 1995-96, 199697, 1997-98 which was awarded by Maharashtra State Co-operative Banks Association in the Mumbai Division. As a token of acknowledgment for Generosity, Consistency, Dedication and Sacrifice made for the growth of Co-operation by Late Shri. Gopinathdada Shivram Patil, Thane Municipal Corporation awarded him with the most coveted THANE BHUSAN PURASKAR which is another feather in the Banks Reputation. Bank has been catering the needs of the

23 | P a g e

society through its well-equipped 42 Branches spread in Thane, Mumbai, Navi Mumbai, Pune, Nashik, & Ichalkaranji (Kolhapur). It has been permitted to extend its area of operation throughout the state of Maharashtra. Bank is gradually progressing on the path of Consistency and Dedication with Ethics, Principles and Discipline developed by Late Shri Gopinath Shivram Patil for achieving the ultimate goal of Customer Satisfaction. Bank equipped with CBS, NEFT/RTGS is in process for providing Net Banking, Mobile Banking, Debit Card. Bank is gearing itself with increasing number of Branches throughout Maharashtra in the near future.

24 | P a g e

NATURE OF THE BUSINESS CARRIED

Bank is an institution which deals in money and credit. It accepts deposits from the public and grants loans and advances to those who are in need of funds for various purposes. Banking is an activity which involves acceptance of deposits for the purpose of lending or investing. In addition to accepting deposits and lending funds, banking also involves providing various other services along with its main banking activity. These are mainly agency services, but include several general services as well. A banker is one who undertakes banking activities, accepting deposits and lending money for different purposes. The Banking Regulation Act, 1949 defines banking as an activity of accepting funds from the public for the purpose of lending or investment. The essential features of banking activities are as follows:i) accepting deposits from public; ii) lending or investment of such deposits; iii) incidental to the activities of accepting deposits for lending or investing, banks undertake activities like a) Promoting and mobilizing savings of the public; b) Providing funds to trade and industry by way of discounting bills, overdraft, cash credit facility, and transfer of funds from one place to another; c) Providing agency services to customers, such as collection of bills, payment of insurance premium, purchase and sale of securities, etc., and other general services, such as issue Of travelers cheques, debit card locker facility, etc; Money deposited with the bank is assured as far as its safety is concerned. Further the depositor is allowed to withdraw it whenever required.
25 | P a g e

Banks allow interest on deposits. Such interest helps in the growth of funds deposited with the bank. Thus the rate of interest provided on deposits acts as an incentive to the depositors.

26 | P a g e

VISION, MISSION AND COMPANY POLICY

VISION To become the most respected Bank in the financial services space in India. To emerge as a single window for meeting the financial and developmental needs of the MSME sector to make it strong, vibrant and globally competitive, to position Good Brand as the preferred and customer - friendly institution and for enhancement of share - holder wealth and highest corporate values through modern technology platform.

MISSION: To be among the pillars of the banking industry, a strong and resilient institution committed to lasting partnerships with and superior service to our clients; the well-being of our employees; fair return on equity for our shareholders; and national growth and development as financial catalyst. TO OUR CLIENTS:

We shall always seek and preserve the trust and confidence of our clients and customers. We shall offer a wide range of products that will meet the customer's life aspirations. And we shall render excellent service to customers, treating them not only as customers but as people. TO OUR EMPLOYEES:

Realizing the value of our employees in achieving our goals, we will recognize their contribution to the efficient management of our institution. We shall promote productivity and a sense of belonging.

27 | P a g e

TO OUR COMPANY:

We shall pursue strength in our balance sheet and profitability in our performance. Cognizant of the demands of our exacting responsibility, we commit, without reservation, to apply the highest standards of probity, prudence, and professionalism in our tasks. TO OUR COUNTRY:

We acknowledge our responsibility to our country and commit to mobilize our resources in the interest of the economy. Recognizing the potential of our countryside, we shall constantly endeavor to expand our reach and distribution network to make meaningful contribution to entrepreneurial ventures. COMPANY POLICY: Remain largely a retail focused organization, driving stickiness through knowledge and quality service. Target the micro, small and medium enterprises mushrooming across the country through a cluster approach for lending business. Growth with focused team of dynamic professionals. Fairness in all our dealings employees, customers, vendors and shareholders all included. Transparency in what we do and in how and why we do it. Service orientation is our core value, imbibed by all sales as well as support teams.

28 | P a g e

PRODUCT AND SERVICES: PRODUCT:

Insurance Product: Insurance cover offered along with other Loans/Product Home Loan Assurance scheme Education loan Insurance Scheme (Optional)

Loans Personal Loan Commercial Loan (Export Finance) Lease financing

Deposit Scheme Saving Bank Current Deposits Term deposits - Double Benefit deposits, Fixed Deposit Receipt Cards Debit Card Short Deposit Receipt Tax saving deposit

29 | P a g e

 SERVICES PROVIDED BY BANK:

CBS (Core Banking Solution)

Core Banking Solution (CBS) is networking of branches, which enables Customers to operate their accounts, and avail banking services from any branch of the Bank on CBS network, regardless of where he maintains his account. The customer is no more the customer of a Branch. He becomes the Banks Customer. Thus CBS is a step towards enhancing customer convenience through anywhere and anytime banking.

Customer of any branches of the bank can aware the various banking facilities from any other branch of the bank. These services are: To make enquiries about the balance; debit or credit entries in the account. To obtain cash payment out of his account by tendering a cheque. To deposit a cheque for collection. To deposit cash into the account. To deposit cheques / cash into account of some other person who has account in any branch. To get statement of account To transfer funds from his account to any other account provided accounts are in any branches of the bank. To obtain Demand Drafts or Banker's Cheques from any branch in CBS.

30 | P a g e

All these aim to provide convenient, efficient, and high quality banking experience to the customers, comparable to world class standards.

ATM (Automated Teller Machine) Service:

The Bank's 29 ATM of 23 branches of the Bank are connected to Central ATM Switch at Data Center and Customers are able to do all the transactions through any of the Branches of the Bank in Thane, Navi Mumbai & Pune. By using ATM, Customer can transfer fund between his own accounts with different branches, provided both accounts are linked to his ATM card.

SMS BANKING: On the Technology Services, Bank has successfully implemented the Core Banking Solution (CBS) Bank has its own Data Center and Disaster Recovery site which helped us to migrate all the Branches at Data Center. It will also help to provide various services to our customers by multiple delivery channels such as ATM, SMS, and ABB Banking. This has brought the Bank at par with the leading Banks. SMS Banking SMS Banking Services are available for the customers of the Bank by using the SMS feature of mobile phones. Customer will be able to know the latest balance and last 3 transactions in their accounts. SMS Alerts Apart from above Bank is also providing SMS alerts to the customer for clearance of cheques, maturity of term deposits, dishonour of cheque, cheque presented in clearing and pending for clearance, Transaction of amount above Rs 5000.

RTGS (Real Time Gross Settlement) Being member of Real Time Gross Settlement System (RTGS), our Bank offers transfer of funds through RTGS. Our customers can have prompt, efficient, secure, economical and reliable transfer of funds from our bank to the beneficiarys accounts with other member banks across the country and from remitters account in a particular member bank to the beneficiarys account with our bank. Minimum stipulated transaction value for using this facility is Rs.200000/-.
31 | P a g e

An electronic payment system in which payment instructions between our bank and other banks are processed and settled individually and on a real time basis for transaction value of Rs 2 lac and above. Under normal circumstances the beneficiary bank's branch receives the funds in real time as soon as funds are transferred by the remitting bank. Note: RTGS systems work on all days except on Sunday and national holidays across the states. Beneficiary's Information Required for transfer of funds Name of the beneficiary Account Number of the beneficiary Amount to be remitted Name of the beneficiary bank, branch and its IFSC Sender to receiver information, if any Charges: UP TO Rs 5 lakh Rs 20/ABOVE Rs 5 lakh Rs 40/NEFT (National Electronic Fund Transfer System): Our Bank also offers transfer of funds through National Electronic Fund Transfer system (NEFT). Customers can have efficient, secure, economical and reliable transfer of funds from our bank to the beneficiarys accounts with other banks across the country and from remitters account in a particular bank to the beneficiarys account with our bank. In this payment system instructions between banks are processed and settled on batch to batch basis at fixed times during the day. There is no minimum or maximum stipulated transaction value for using this facility. The Special feature of this system is that it is available in Nepal also. Note : NEFT systems work on all days except on Sunday and national holidays across the states. Beneficiary's Information Required for transfer of funds -Name of the beneficiary -Account Number of the beneficiary -Amount to be remitted -Name of the beneficiary bank, branch and its IFSC
32 | P a g e

-Sender to receiver information, if any

Charges : Rs 5/- per transfer. E-PAYMENT OF TAXES: E-payment is a facility to pay government taxes of customer Through internet banking facility. Following e-payment facilities are provided to our Valuable customers 1] M.vat / Sales Tax 2] Income Tax / TDS 3] Service Tax / Excise Duty 4] Custom Duty 5] Professional Tax

Charges for e-payment : 1] up to Rs. 1 lakh Rs. 25/- + Service Tax 2] above Rs. 1 lakh to 5 lakh Rs. 50/- + Service Tax 3] above Rs. 5 lakh to 10 lakh Rs. 100/- + Service Tax 4] above Rs. 10 lakh Rs. 200/- + Service Tax ABB (Any branch banking): In Any Branch Banking is offering following services to its customers For further details contact your nearest branch The Bank's customer having ATM card can withdraw the Cash from any ATM of the Bank. The Bank is providing the facility to withdraw / Deposit / Transfer the cash through the counter from any of Banks branches. The customer can deposit his / her cheque in any of our branch of the bank.

33 | P a g e

AREA OF OPERATION
The legal transactions executed by a bank in its various bank departments and local branches, and they ensure all transactions run smoothly. Depending on the focus and size of the bank branch. Banking operations managers also concentrate on improving the banks customer service record and intervening when problems arise

Such as:

Providing loans, Mortgages and investments, Deposit scheme, Services

No. of Shareholder No. of Branches

68837 42+4

34 | P a g e

OWNERSHIP PATTERNS Schedule Banks:These banks must have paid-up capital and reserve of mot less than Rs.50,00,000. They must satisfy the RBI than its affairs are mot conducted in a manner detrimental to the interests of its depositors. These are further classified as follow:

State co-operative Banks Commercial Banks

Scheduled banks comprise 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 (the old/ new domestic and foreign). These banks have over 67,000 branches spread across the country in every city and villages of all nook and corners of the land.

COMPETIOTORS INFORMATION

Vijaya Bank Abhyudaya Co-operative Bank Ltd

35 | P a g e

ACHIEVEMENTS AND AWARDS:1. Congress Seva Dal Navi Mumbai awarded Seva Bhushan Award in the year 199596.

2. Maharashtra State Cooperative Banks Association awarded the Best Urban Bank Padmabhushan Vasantdada Patil Award for three consecutive years 1996-97, 1997-98 and 1998-99.

3. Parsik Bank got awards for three consecutive years ending 98-99 from Organization called Yuvak Mudra, who organized competition in memory of Rajarambapu patil in regards with merit and principal of cooperative banks.

4. Bris Indiglo has ranked Parsik Bank as follows in their survey for the year 2002-2003.

First Number in Overall Ranking in Thane District. Second Number in Overall Ranking in all over Maharashtra State. Fourth Number in Safest Category

36 | P a g e

5. The Maharashtra State Cooperative Banks Association has awarded the trophy of Padmabhushan Vasantdada Patil Award 2008-09 for Best cooperative bank in konkan region for the year 2008-09.

6. Successful Implementation of CBS 2009.

7. Bank got 1st Rank in the category of best bank among Cooperative banks with deposit over Rs.500 Crores for the year 2009-10 from The Maharashtra Urban Coop.

8. Bank got 3rd Rank in the category of best bank among Cooperative banks with deposit over Rs.500 Crores for the year 2010-11 from The Maharashtra Urban Co-op. Banks Federation

37 | P a g e

7s FRAME WORK

38 | P a g e

39 | P a g e

SWOT ANAIYSIS

Strength

1. Public sector undertaking. Thus, has govt. backing 2. In this area for more than 41 years. Thus, expertise in this field. 3. Increasing profits over the years

4. High connectivity to common man in some parts of the country

Weakness

1. 2. Advertising

Risk is less thus weak

averse brand

recognition as compared to major players 3.Increasing NPAs Opportunity 1. Rural Areas

2. Installation of more ATMs 4. Use of mobile banking, internet banking on a large scale

40 | P a g e

3.

Small

enterprise

banking

Improved Urban retail banking Threats 1. 2.New 3. Highly competitive bank Economic environment licenses slowdown

41 | P a g e

Financial statements for the year ended 31st March, 2013

1. Background Gopinath Patil Parsik Janata Sahakari Bank Ltd. is a scheduled co-operative bank providing wide range of banking and financial services through 42 branches. It is governed by the Banking Regulation Act, 1949 (as applicable to co-operative societies / banks) and the Maharashtra Co-operative Societies Act, 1960 and the rules framed thereunder.

2. Basis of Preparation The financial statements have been prepared following the going concern concept, on an accrual basis, unless otherwise stated, under the historical cost convention, except for building acquired on merger with Ichalkaranji Mahila Sahakari Bank Ltd, Ichalkaranji which is carried at revalued amount, and comply with the generally accepted accounting principles in India, statutory requirements under the Banking Regulation Act, 1949 & Maharashtra State Co-operative Societies Act, 1960, circulars and guidelines issued by the Reserve Bank of India (RBI) from time to time, the accounting standards issued by the Institute of Chartered Accountants of India (ICAI), to the extent applicable, and current practices prevailing within the banking industry in India.

42 | P a g e

3. Use of Estimates The presentation of financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent liabilities at the end of the reporting period. Management believes that these estimates and assumptions are prudent and reasonable. However, actual results could differ from estimates requiring an adjustment to the carrying amounts of assets or liabilities which are recognised prospectively in the future periods.

A. Significant accounting policies:

1. Investments: 1.1) Classification of Investments: For the purpose of disclosure in the Balance Sheet, Investments have been classified under four groups, namely, Government Securities, other approved securities, shares and bonds of PSUs and other investments.

1.2) Categorization of Investments: In accordance with the guidelines issued by the RBI, the Bank has classified its Investment portfolio into the following three categories: Held to Maturity (HTM) securities acquired with the intention to hold till maturity. Held for Trading (HFT) securities acquired with the intention to trade. Available for Sale (AFS) securities which do not fall within the above two categories.

43 | P a g e

1.3) Valuation of Investments: Investments under Held to Maturity (HTM) category are carried at Book Value. The premium paid, if any, on the investments under this category is amortised over the residual life of the security as per guidelines of RBI and Policy adopted by Bank. The profit / loss on investments acquired at a discount on face value, under this category, are recognised only at the time of redemption / sale of the investment. Investments under Available for Sale category are valued scrip-wise at lower of Cost or Market Value. Net depreciation, if any, under each classification has been provided for, net appreciation, if any, has been ignored. Market Value, where market quotes are not available, is determined on the basis of the Yield to Maturity (YTM) method as indicated by Primary Dealers Association of India (PDAI) jointly with the Fixed Income and Money Market Derivatives Association of India (FIMMDA). Appreciation/ Depreciation are aggregated for each class of securities and net depreciation in aggregate for each category as per RBI guidelines is charged to Profit and Loss Account. Net appreciation, if any, is ignored.

1.4) The Bank is not holding any investments under Held for Trading (HFT) category.

2. Advances: 2.1 The classification of advances into Standard, Sub-standard, Doubtful and Loss assets as well as provisioning on Standard Advances and Non-Performing Advances has been arrived at in accordance with the Income Recognition, Assets Classification and Provisioning Norms prescribed by the RBI from time to time till date.

44 | P a g e

2.2 The unrealized interest in respect of advances classified as Non-Performing Assets is disclosed as NPA Interest Receivable as per RBI directives.

3. Fixed Assets: 3.1 Land is carried at cost. Premises, Furniture & Fixtures, Plant & Machinery and Capital Expenditure on Rental premises are stated at cost less depreciation. Cost includes incidental expenses relating to acquisition and installation of fixed assets. In respect of assets acquired prior to 01.04.2006, written down value as at 31.03.2006 is considered as original cost for the purpose of disclosure under Gross Block in the Fixed Assets Schedule. 3.2 Computer Hardware, Computer Software, UPS and Batteries, ATM Machines, Printers, CC TV, LCD Projector are depreciated on Straight Line method @ 33.33% as directed by RBI. 3.3 The depreciation on assets acquired prior to 1st October is provided for the whole year otherwise the same are depreciated at 50% of the normal rates. No depreciation is provided on assets sold in the year of sale. 3.4 Premises, Furniture & Fixtures, Plant & Machinery and Capital Expenditure on Rental premises are depreciated on Written down Value method at the rates considered appropriate by the Management as under:

Description of Asset

Rate of depreciation

Fire Extinguisher, Cheque Encoding Machine, Strong Room Plant & Machinery Vehicles

25 % 15 % 25 %

45 | P a g e

Lease Lines, ISDN, ATM Video Capture System, Inverter & Batteries, H.O. Building Management System All other assets 40 % 10 %

4. Impairment of Assets 4.1 Fixed Assets are reviewed at each balance sheet date to ascertain whether there are any indications that the carrying amount of any asset exceeds its realisable value.

5. Revenue recognition: 5.1 Income is accounted on accrual basis as and when it is earned except for: (a) The income on Non-Performing Assets is recognized on realisation, as per Reserve Bank of India directives. (b) The commission on Letters of Credit / Guarantees and Dividends received from shares of cooperative institutions are accounted on receipt basis. (c) The interest on overdue / matured Fixed Deposits is accounted from September 1, 2008 at the rate applicable to Savings Bank Accounts as per RBI guidelines.

6. Employee Benefits: Defined Contribution Scheme: The payment of Provident Fund is made to the Commissioner for Provident Fund at rates prescribed in the Employees Provident Fund and Misc. Provisions Act, 1952 and is accounted for on accrual basis. Defined Benefit Scheme:

46 | P a g e

The bank has taken Employees Group Gratuity Policy from Life Insurance Corporation of Indi a (LIC) and LIC is maintaining gratuity fund under a trust deed for gratuity payments to employees. The premium / contribution paid to LIC under the said policy is debited to Profit & Loss Account. The bank has taken Employees Group Leave Encashment polic y from Life Insurance Corporation of India (LIC) during the year under review to meet leave encashment liability. The premium paid to LIC under the said policy is debited to Profit & Loss Account.

7. Lease Payment: Operating lease payments are recognized as an expense in the Profit & Loss Account on accrual basis for the financial year. In the opinion of the Bank, the leave and licence agreements entered into by the Bank for use of premises for its banking business are cancellable.

8. Income Taxes: Tax expense comprises of current tax and deferred tax. Current Income Tax is measured on the basis of estimated taxable income for the year in accordance with the provisions of Income Tax Act, 1961, and rules framed thereunder. Deferred tax for timing differences between the book and taxable profits for the year is accounted for using the current tax rates and law as on the Balance Sheet date.

9. Earnings per share: Basic earnings per share are calculated by dividing the net profit for the period after tax (before appropriation) by weighted average number of equity shares outstanding during the period.

47 | P a g e

10. Segment Reporting: The Bank has identified two Business Segments viz. Treasury Operations and Other Banking Operations taking into account the nature of products and services, the different risks and returns and the guidelines issued by RBI. Treasury Operations includes all investment portfolio and profit / loss on sale of investments. The expenses of this segment consist of interest expenses on funds borrowed from internal and external sources and depreciation / amortisation of premium on investments in Held to Maturity category. Other Banking Operations include all other operations not covered under Treasury Operations.

B Disclosures as required by the Accounting Standards (AS)

11. Effects to Cost of Acquisition of Merged Banks: (AS 14) During the FY.2010-11, the Bank had acquired The Ichalkaranji Mahila Sahakari Bank Ltd, Ichalkaranji. In accordance with the merger order passed by the Office of the Commissioner for Co-operation and Registrar of Co-operative Societies, Maharashtra State, Pune 411 001 dated October 27, 2010 and No Objection Certificate issued by the RBI, the effects to Amortisation Reserve for the F.Y.2012- 13 are as under:

Particulars Amortisation Reserve as on 01/04/2012 Amortisation for F.Y.2012-13 Amortisation Reserve as on 31/03/2013

Ichalkaranji Mahila Sahakari Bank Ltd. 3,20,00,000 1,60,00,000 4,80,00,000

48 | P a g e

The Memorandum working of adjustment to Cost of Acquisition as directed by the Commissioner for Co-operation and Registrar of Co-operative Societies, Maharashtra State, Pune 411 001 in their order dated October 27, 2010 has been kept by the Bank duly approved by the Board.

12. Employee Benefits: (AS 15) The Bank has contributed ` 1,92,16,383/- (Previous year `1,69,73,439/-) towards Provident Fund. The Bank has paid ``3,49,33,433/- towards Group Leave Encashment policy of LIC.

13. Related party Disclosures: (AS 18) The Bank is a co-operative society under the Maharashtra State Co-operative Societies Act, 1960 and there are no Related Parties requiring a disclosure under the Accounting Standard 18, issued by the ICAI, other than Key Management Personnel, viz. Mr. Sadanand K. Nayak, the Chief Executive Officer (CEO) of the Bank for FY.2012-13. However in terms of RBI circular dated March 29, 2003, the CEO being a single party coming under the category, no further details therein need to be disclosed.

14. Lease: (AS 19) Operating lease payments are recognized as an expense in the Profit & Loss Account on accrual basis for the financial year. In the opinion of the Bank, the leave and licence agreements entered into by the Bank for use of premises for its banking business are cancellable. However, disclosures required under the accounting standard are as under:

49 | P a g e

Minimum Lease Payments:

(Rupees in Lakhs)

- Not later than one year - Later than one year but not later than five years - Later than five years ` Total minimum lease payments recognised in the Profit & Loss Account

139.57 216.55 3.89 145.06

15. Intangible Fixed Assets: (AS 26) The Bank has identified intangible assets representing Computer Software and shown separately in the Fixed Assets Schedule under fixed asset block Intangible Assets giving details relating to Gross Block & Amortisation as prescribed by Accounting Standard 26 on Intangible assets issued by ICAI. Computer software is amortised @33.33% on straight line method as per the directives of RBI.

16. Impairment of Assets: (AS 28) There is no material impairment of any of assets in the opinion of the Bank and as such no provision under Accounting Standard 28 issued by ICAI is required.

17. Contingent Liabilities: All letters of credit / guarantees are sanctioned to customers with approved credit limits in place. The liability thereon is dependent on terms of contractual obligations, devolvement, raising

50 | P a g e

demand by concerned parties and the amount being called up. These amounts are collateralized by margins, counter-guarantees and secured charges.

D. Notes to Accounts: 18. Investments: During the year, Bank has not shifted any securities from Available for Sale category to Held to Maturity category and also from Held to Maturity category to Available for Sale category. During the year, Bank has not sold any securities held under AFS category.

19. Cash and Bank Balances: Fixed Deposits with other Banks include deposits aggregating to ` 7,97,00,000/- (Previous year ` 5,31,03,585/-) lodged as margin money to secure issuance of Letters of Credit / Guarantees in respect of correspondent business.

20. Capital commitments: At March 31, 2013, estimated amount of contracts remaining to be executed on capital accounts amount to ` 5,51,250/- (Previous year ` 1,37,61,014/-).

51 | P a g e

LEARNING INFORMATION
LOAN AND ADVANCES:
1. HOUSING LOAN: Under this scheme the Parsik bank provides loans or financing for the purchasing of flat or construction of house.

Purpose Rate of interest

Eligibility Security Repayment Loan Amount

E. M. I. per Rs. 1 Lakh

Purchase flat or Construction of House @ 11.00% p.a. upto Rs 25 lakhs for 5 years. @ 11.50% p.a. upto Rs 25 lakhs for 5yr-15yr. @ 11.50% p.a. above Rs 25 lakhs to 50 lakhs for 5 years @ 12.00% p.a. above Rs 25 lakhs to 50 lakhs for 5yr to 15yr. Salaried / Businessman / Self Employed Registered Mortgage of Flat to be Purchased / House to be constructed Maximum Upto 15 years. Maximum upto 50 Lacs

Rate of Interest 5 years 10 years 15 years

11.00% 2174 -

11.50% 2199 1406 1168

12.00% 2224 1435 1200

Eligibility:
Domicile of Mumbai City who wants to purchase/ construct the building or house within the district.

Employee of Government/ self governed, semi government, leading banks, urban cooperative bank/court, financial institution, education institutes etc.

Business man who fills income tax return for last 3 years.
52 | P a g e

 Normally the age limit for applicant is 50 years but it can be extent up to 55 years in certain special cases.

Documents required from applicant:

Loan application form. Photo of applicant and co applicant. Copy of document of plot which is to be purchased or constructed. Construction approval from office in the case of construction. The cost estimation and approved map of building going to be constructed. Salary statement in case of salaried applicant and income tax return of last 3 years in case of non salaried applicant. Domicile certificate of applicant. Income statement and identity card of two gaunter etc.

Execution of documents after sanction of loans:

Promissory note. Loan contract. Grantee deed of two grunters. Mortgage letter of fixed assets Advance cheque

53 | P a g e

 Acknowledgment according to selected interest rate. Prescribed document from bank advocate. Other related documents.

2. HOUSING REPAIR AND RENOVATION: Under this scheme of loan bank provides finance for the renovation and repairs of house or flat. It is the special scheme provide to the peoples for renovation of their houses.

Purpose Rate of interest

Repairs and Renovation House / Flat. Upto Rs 25 lacs @ 15.00% p.a. Above Rs 25 lacs to below Rs 50 lacs @ 14.50% p.a. Rs 50 Lacs and Above @ 14.25% p.a.

Eligibility Loan Amount Security Repayment

Individual Above Rs. 2 lacs Movable / Immovable Property Maximum Upto 5 Years.

3. CAR / VEHICLE LOAN:

Under this scheme of loan bank provides loans for the purchase of vehicle for commercial use. NEW PERSONAL VEHICLE
Rate of Interest Security @ 12.50% p.a. Vehicle and / or Salary

54 | P a g e

Repayment

Maximum 5 years

NEW VEHICLE (Commercial Use)

Rate of Interest Loan Amount

@ 12.50% p.a. 80% of Invoice Value +

Registration Charges + Insurance

NEW POCLAIN MACHINARY @13.50% P.A

OLD VEHICLE:

Loan Amount in case of old vehicle

The loan amount provides by the bank in case of loan vehicle 50% of agreement value or valuation whichever is less.
Loan Amount 50% of Agreement value

In case of Old Vehicle upto 5 years Rate of Interest

or valuation of Vehicle, whichever is less. Upto Rs 2 lakh @ 14.50 % p.a. Above Rs 2 lakh @ 15.00% p.a.

Security Repayment

Vehicle and / or Salary Maximum 5 years

55 | P a g e

4. ARTICLE LOAN ` Article loan is the scheme provided by the bank for its customers for purchase of

furniture and fixtures, electronic and consumable appliances.

Purpose

Purchase

of

Furniture

&

Fixtures,

Electronic / Consumable Appliances etc. Rate of interest Eligibility Loan Amount Margin Security Repayment @15 % p.a. Individual Maximum upto Rs. 5 lacs. 30% * Article / Furniture to be purchased & Salary Upto 5 years.

5. GROUP LOAN In certain cases where the employer undertakes to deduct the loan installment under sec 49 of Maharashtra State Co-op. Act, 1960 and remit the same towards the repayment of loan or undertakes to remit the monthly salary of employees directly to the Bank till entire loan is repaid and intimation to that effect is given by Bank.

In such cases, Group Loan may be considered, provided Minimum number of Employees applying at a time in a group is 10.

56 | P a g e

Purpose

For

Purchase

of

Consumer

durable

goods

( with or without security of consumer durable goods ) And And / / Or Or For For repayment House of debts repairing

And / Or For any other purpose Rate of Interest Eligibility Loan Amount Repayment @14.00% p.a. Minimum 10 Employees of a single Organization Maximum upto Rs. 3 lacs. 5 to 7 years.

6. MICRO, SMALL & MEDIUM ENTERPRISES LOANS (Against Mortgage) Business Expansion Purpose :

Purchasing

Machinery

&

Raw

Material

Setting New Project

Rate of Interest

LOAN AMOUNT Upto Rs 50 Lacs ABOVE Rs 50 Lacs upto 3 crores ABOVE Rs 3 crore

INTEREST 14.00% 13.50% 12.75%

Eligibility Loan Amount

: Individual / Firm / Partnership Firm Company,Etc. : As per requirement

57 | P a g e

Margin Securiy

: 30%* : Immovable Property / Movable Property

7. TERM / CASH CREDIT LOAN FOR BUILDERS & CONTRACTORS This is the loan scheme which is provided to the builders and contractor to the completion of their projects. This also includes the loans to the contractors which are doing government project as well as private projects.

Purpose

Business

Expansion

Purchasing Construction Equipments / Machinery / Raw Material New Construction Project

Eligibility

Individual / Firm / Partnership Firm / Company etc

Loan Amount

As per requirement

Rate of Interest

16%

Margin

30%*

Repayment

For Term Loan - Maximum 7 years. For Cash Credit Loan -Maximum period upto 12 months on renewable basis.

58 | P a g e

Security

Movable / Immovable Property / Machinery / Equipments

8. T.U.F. (Technology Up gradation Fund) SCHEME: Loan For Textile Business The Indian Textile Industry occupies a unique position in the Indian Economy, in terms of its contribution to industrial production, employment & exports. Given the significance of this industry to the overall health of the Indian Economy, its employment potential & the huge historical backlog of technology up gradation, particularly in the context of the liberalization of the national industrial & trade policy & globalization of textile trade, it is essential for the textile industry to have access to timely & adequate capital at internationally comparable rates of interest in order to upgrade its technology level. Bank has been extending financial assistance by providing concessional Interest rate for purchase of machinery for textile business.

Eligibility Margin Security Repayment

Individuals / Partnership Firms / Companies, Etc. Minimum upto 30% of machinery Invoice / Quotation Movable & Immovable Properties Maximum period upto 84 months

LOAN AMOUNT A) Machinery Loan Under TUF Scheme UPTO Rs 25 Lacs ABOVE Rs 25 Lacs upto Rs 50 Lacs

INTEREST

14.00% 13.25%

59 | P a g e

ABOVE Rs 50 Lacs B) Land & Building and New Plant & Machinery UPTO Rs 25 Lacs ABOVE Rs 25 Lacs upto Rs 50 Lacs ABOVE Rs 50 Lacs C) Land & Building and Old Plant & Machinery UPTO Rs 25 Lacs ABOVE Rs 25 Lacs upto Rs 50 Lacs ABOVE Rs 50 Lacs

13.00%

14.00% 13.50% 13.25%

14.50% 13.75% 13.50%

9. CASH CREDIT FACILITY:

This kind of fund based working capital facility is provided to traders/manufacturers & the like. Bank has focus for extending cash credit facility to small & medium size enterprises.

Working Capital requirements / Additional stock purchase / Repayment Purpose : of trade creditors

Rate of Interest

LOAN AMOUNT Below Rs 50 Lacs Rs 50 Lacs To Rs 2 Crore ABOVE Rs 2 Crore

INTEREST 13.00% 12.75% 12.25%

60 | P a g e

Eligibility

Small traders / Manufacturers / Partnership firms / companies

Margin Security

Minimum 30% of net inventory * Closing Stock, Debtors, Movable / Immovable Properties

Repayment

Maximum period upto 12 months on renewable basis

10. EDUCATION LOAN:

To brighten the future of bright & committed students by extending financial assistance to pursue higher professional / technical courses studies in India & Abroad through Educational Universities / Institutes / Organizations of good reputation & recognition.

Purpose Rate of Interest

Higher Education. Upto Rs. 10 Lacs @ 11% p.a.

Above Rs. 10 Lacs & Upto Rs. 20 Lacs @12% p.a Loan Amount Upto Rs. 10 Lacs for studies in India.

Upto Rs. 20 Lacs for studies in Abroad. Security Tangible Collateral security owned by Parents or Guarantor. 'Whole Life' Insurance Policy on the life of the student, for loan amount. Repayment Max. 120 months, including moratorium period.

61 | P a g e

11. PROFESSIONAL LOAN:

Criteria

Doctor / Advocate / Architect / CA & Engineer

Rate of Interest

13%

Eligibility

Proprietorship Firm / Partnership Firm / Company etc.

Loan Amount

As per requirement

Margin

30%*

Security

Movable / Immovable Property

12. GOLD LOAN: GOLD LOAN UNDER BULLET REPAYMENT :

Customers can use the power of Gold for their Short Term Financial requirements by availing Gold Loan with BULLET REPAYMENT option.

TERMS: The Maximum amount of loan Rs.1.00 lakh at any point of time. The loan shall be repayable within 12 months from the date of disbursement.

62 | P a g e

Eligibility

Account holder of Gopinath Patil Parsik Janata Sahakari Bank Ltd. Capable of producing Documents of Ownership of Gold Ornaments, As per satisfaction of Bank.

Amount of Lian

Maximum upto 80% of Valuation of Gold Ornaments given by Banks Panel Valuer.

Repayment Period Other Features

12

Months

for

Gold

Loan

Amount,

upto

Rs.1

Lac

60 Months for Gold Loan Amount above Rs.1 Lac. Hassle free Documentation.

NO PROCESSING CHARGES except Valuers Fees.

13. LOAN AGAINST TERM DEPOSIT / NSC / KVP:

Loan / Advance against Term Deposit Receipt / Recurring Deposits of the Bank:

Margin: Bank shall sanction Loan / Advance not exceeding 90% of the amount including accrued interest, against Term Deposit / Recurring Deposit.

Repayment Repayment period shall not extend beyond the maturity date of the

Period: deposit.

Rate

of

Interest

a. Interest will be charged @ 2.00% p.a. above the rate offered on such deposits, for loan amount upto Rs. 5 (five lakh) to the Depositor &/or his close relative viz Father, Mother, Brother, Son, Daughter
63 | P a g e

&

spouse.

b. Interest will be charged @ 1.00% p.a. above the rate offered on such deposits, for loan amount above Rs. 5 (five lakh) to the Depositor &/or his close relative viz Father, Mother, Brother, Son, Daughter & spouse.

c. Interest will be charged @ 3.00% p.a. above the rate offered on such deposits if the Term Deposit / Recurring Deposit against which loan is being availed, belongs to a third party who is not a close relatives of the Borrower (viz. Father, Mother, Brother, Son, Daughter & spouse).

Loan

Advance

against

NSC

KVP:

Margin:

Not

less

than

30%

of

face

value

Period: Period of repayment shall not extend beyond the maturity date of the NSC / KVP.

Rate of Interest :

Up to Rs. 25 Lacs

15.00% p.a.

Above Rs. 25 lacs to below Rs. 50 lacs 14.50% p.a.

64 | P a g e

Last 10 Years Bank's Progress (Rs in Lacs)

Year Share Capital 200304 200405 200506 200607 200708 200809 200910 201011 201112 3673.96 146049.03 86405.06 21209.72 68837 2130.91 15% 3076.62 139803.30 72207.09 18214.10 65073 2072.32 15% 2534.71 116717.20 60059.64 15199.18 61240 1837.09 15% 2242.75 94341.95 55482.54 13336.83 58096 1743.26 15% 1845.67 88013.54 45535.87 11406.69 54424 1540.16 15% 1457.17 70488.24 32340.40 10638.84 50871 468.28 15% 1254.05 59317.84 26310.61 8897.01 48505 1028.65 15% 1104.59 52042.79 21762.46 7925.91 46612 752.63 15% 959.33 47979.21 Deposits Loans Asset Fund 18054.27 6475.50 Customer Base 43762 Net Profits 1059.89 15% Dividend

65 | P a g e

Financial

N0.

Particulars

31/03/2012 ( Rs. in lacs )

1 2 3 4 5 6 7 8 9

No. of Shareholders Working Capital Total Deposits Loans Investments Profit Net N.P.A CRAR Audit Class

68837 182276.23 146049.03 86405.06 75462.85 2130.91 0.00% 20.63% "A"

66 | P a g e

PART B

67 | P a g e

OBJECTIVES OF THE STUDY

The objective of research is as follows:

1.

First objective is to find out various loan schemes provided by the bank.

2.

To learn various aspects of loan provided by bank.

3.

To know the problem faced by customers when obtaining the loan

68 | P a g e

SCOPE OF THE STUDY:-

Each and every project study along with its certain objectives also has scope for future. And this scope in future gives to new researches a new need to research a new project with a new scope. Scope of the study not only consist one or two future business plan but sometime it also gives idea about a new business which becomes much more profitable for the researches then the older one. The scope of this research is as follows:

1.

Research study could give an idea of network expansion for capturing more market and customer with better services and lower cost without compromising with quality.

2.

In future customer requirement could add with the product and services for getting the edge over competitors.

3.

Different parameters could be used for the purpose of new products with extra benefits which are required by the customers.

4.

Factors which are responsible for the performance of the bank can also be used for the modification of the strategy and product for being more profitable.

69 | P a g e

METHODOLOGY

TITLE OF STUDY: Title of study is Loans and advances Management In Gopinath Patil Parsik Janata Sahakari Bank Ltd. The Gopinath Patil Parsik Janata Sahakari Bank Ltd. generally gives loan for short and medium term requirement in both rural and urban sectors.

DURATION OF TRAINING:Duration of project is 60 days from 4th May 2011 to 3rd July 2011. Though the time available for the study is too less but efforts to the fullest capacity have been put into this result for efficient and effective analysis of the data.

FORMAT OF PROJECT REPORT:The report is exploratory and descriptive in nature. This report is going to describe various loans provided by Jodhpur central cooperative bank hence it is a descriptive in nature but it suggests some important points to improve the services of the bank so it is exploratory in nature also.

70 | P a g e

SOURCE OF PRIMARY AND SECONDRY DATA

For the purpose of project data is very much required which works as a food for process which will ultimately give output in the form of information. So before mentioning the source of data for the project I would like to mention that what type of data I have collected for the purpose of project and what it is exactly.

PRIMARY DATA
Primary data is basically the live data which I collected on field while talking with the Employees. In some cases I got no response from their side and then on the basis of my previous Experiences I filled those fields.

SOURCE
Main source for the primary data for the project was my face-to-face conversation which I got by the employees or sometimes filled myself on the basis of discussion with the employees.

SECONDRY DATA
Secondary data is already published data. It is the data which is funded or collected by someone else before and presently used by further research work. Secondary data for the base of the project I collected from annual report of bank, bank pamphlets and internet etc.

71 | P a g e

LIMITATIONS:-

1.

The rate of interest may vary according to market environment.

2.

These figures are according to publish in annual report and according to employees of Gopinath Patil Parsik Janata Sahakari Bank Ltd.

3.

The report is according to my perception only and cant be taken as final decision.

4.

This study only relates to one organization, so conclusions drawn may not be finding its utility in all the other banks.

5.

Even the employees of the bank hesitated to give the complete & accurate data.

72 | P a g e

RECOMMENDATION AND SUGGESTIONS

1. More mass awareness campaigns should be organized in order to enhance market share of bank. So Bank should concentrate on its advertisement itself.

2. Bank should refocus on its interest rate as responded by people. Periodic review of the interest rate should be done.

3. There should be proper computerized system in the bank as it will reduce the time wastage of manual work and will lead to the better performance of the bank.

4. Training of the employees should be there to meet the needs of the time.

5. Proper posting of the staff should be done.

6. Customers satisfaction must be the top priority of the bank.

7. Maximum practical exposure should be provided to the job trainees so that they may handle the various enquiries of customer effectively.

8. Communication gap within the bank and with the head-office should be reduced.

73 | P a g e

9. Infrastructure facilities should be provided to the branch of Cooperative Bank, as it is catering to the 5-6 nearby villages.

10. Banks is also advised to have proper internal control measures for monitoring its functions and transactions.

74 | P a g e

CONCLUSION

The study concludes that Cooperative Bank, which was established for mainly for the service of rural sector, still is not on the line to its goal. It is lacking at various elements, particularly at the branch levels, which reveals the edge of other public and private sector banks over the Cooperative bank, the lines at which the bank is lacking behind. The lacks of commitment in these banks make peoples trust in the cooperative sector a casualty.

Some of the co-operative banks are quite forward looking and have developed sufficient core competencies to challenge state and private sector banks. But there is shortage of staff in this bank and the traditional manual banking which is affecting the business and customer services. People are still unaware of the services provided by the Cooperative Banks due to lack of advertisement.

There is a need to analyze and pick up early warning signals. A change is needed today in the cooperative banks which is built on confidence in human capital - the most important of all resources - in commitment, creativity and innovation brought about by proactive management, membership and employees. The ability to capture knowledge and wisdom gives cooperative banks their competitive advantage. A prerequisite is that participants from all parts of a cooperative organization know and understand its purpose, core values and visions.

In this way, by keeping in mind the certain shortcomings, appropriate measures to overcome them should be adopted. So that the real purpose of the Cooperative bank must be realized with a competitive advantage and

75 | P a g e

the gap between the customer perception of the Cooperative Bank and the other private and public sector bank, can be reduced.

76 | P a g e