UNIVERSITY OF MUMBAI

PROJECT ON

STUDY OF CO-OPERATIVE BANK

SUBMITTED BY

PAWAR AVINASH PRABHAKAR ROLL NO. 39

IN PARTIAL FULFILLMENT OF THE REQUIRMENT FOR

THE AWARD OF THE DEGREE OF

B.COM.BANKING & INSURANCE ( SEMISTER V ) OF

UNIVERSITY OF MUMBAI

UNDER THE GUIDENCE OF PROF. (Miss.) ANURADHA KAYASTH

B.N.N. COLLEGE BHIWANDI

DIST. THANE 421305

CERTIFICATE
This is Certify that Avinash Prabhakar Pawar (Roll No. 39 ) of TYBBI Semester V (Academic Year 2013 2014)has successfully completed the project on Study Of Co-operative bank and submitted the project report in partial fulfillment of the Requirement for the award of the Degree of B.Com (Banking & Insurance) of University of Mumbai .

Signature

I/C Principle

Prof. U.D.Kadam

Course Co-ordinater

Prof. S.Rawal

Project Guide

Prof. (Miss.) ANURADHA KAYASTH

External Examiner

DECLARATION
I the undersigned Avinash P. Pawar, a student of TYBBI Semester- V , hereby declare that the project work presented in this report is my original work. This work has not been previously submitted to any other university for any other examination. Date: 08 August 2013 Place: Bhiwandi

(Avinash P. Pawar)

Chapter 1 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). In India Co-operative banks are regulated with the Reserve Bank of India and governed by Banking Regulations Act, 1949 and Co-operative Societies Act, 1965. The Co-operative Banks are now an important constituent of Indian Financial System. Co-operative Banks are much more important in India than anywhere else in the world. It has gained its importance by the role assigned to them, the expectations they are supposed to fulfil, their number, and the number of offices they operate. Their role in rural financing continues to be important even today. Due to the sharp increase in the number of Cooperative banks their business in the urban areas also has increased phenomenally in the recent years. The Co-operative banks mainly finance various categories of peoples for self-employment, industries, small scale units, home finance, consumer finance, and personal finance.

Some of the forward looking Co-operative banks have developed sufficient core competencies to such an extent that they are able to challenge state and private sector banks. The exponential growth of Co-operative banks is attributed mainly to their much better contacts with the local people, personal interaction with customers, and their ability to catch the nerve of the local clientele. The banking related activities of the Co-operative Banks are also regulated by the Reserve Bank of India, even though they are registered under the Co-operative Societies Act of the Respective States where they were formed originally. 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. Co-operative banking is retail and commercial banking organized on a Co-operative basis. Co-operative banking, includes retail banking, as carried out by credit unions, mutual savings and loan associations, building societies and Co-operatives, as well as commercial banking services provided by manual organizations (such as co-operative federations) to Co-operative businesses.

The structure of commercial banking is of branch-banking type; while the Cooperative banking structure is a three tier federal one: A State Co-operative Bank works at state level. The Central Co-operative Bank works at district level. Primary Co-operative credit societies at village level.

History of Co-operative Banks in India

The Co-operative Banks in India started functioning almost 100 years ago. The history of Co-operative Banks goes back to the year 1904. In 1904, the Co-operative credit society act was enacted to encourage cooperative movement in India. The first phase of Co-operative Bank development was the formation and regulation of co-operative society. The constitutional reforms which led to the passing of the Government of India Act in 1919 transferred the subject of Co-operation from Government of India to the Provincial Governments. The Government of Bombay passed the first State Cooperative Societies Act in 1925 which not only gave the movement, its size and shape but was a pace setter of Co-operative activities and stressed the basic concept of thrift, self help and mutual aid. This marked the beginning of the second phase in the history of Co-operative Credit Institutions. For the Co-operative banks in India, Co-operatives are organized groups of people and jointly managed and democratically controlled enterprises. They exist to serve their members and depositors and produce better benefits and services for them. Professionalism in Co-operative banks reflects the co-existence of high level of skills and standards in performing, duties entrusted to an individual. Co-operative bank needs current and future development in information technology. It is indeed necessary for Cooperative Banks to devote adequate attention for maximizing their returns on every unit of resources through effective services.

The Co-operative Bank is an important constituent of the Indian Financial System, judging by the role assigned to Co-operative, the expectations the Co-operative is supposed to fulfil, their number, and the number of offices the Co-operative bank operate. Though the Co-operative movement originated in the West, but the importance of such banks have assumed in India is rarely paralleled anywhere else in the world. The Cooperative Banks in India play an important role even today in rural financing. The businesses of Co-operative bank in the urban areas also have increased phenomenally in recent years due to the sharp increase in the number of primary Co-operative Banks.

Special Features of Co-operative Banks

Co-operative bank is an important part of our Indian banking structure which carries various features.

Customer-owned entities:
In a Co-operative Bank, the needs of the customers meet the Needs of the owners, as Co-operative 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 non-member 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 co-operative 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.

Subject to Cash Reserve Ratio:

Co-operative Banks are subject to CRR and liquidity requirements as other scheduled and non-scheduled banks are. However, their requirements are less than commercial banks.

"Most Favoured" Banking Sector:

Co-operative banks are perhaps the first government sponsored, government-supported, and government-subsidised financial agency in India. They get financial and other help from the Reserve Bank of India NABARD (National Bank for Agricultural and Rural Development), Central Government and State Governments. They constitute the "most favoured" banking sector with risk of nationalisation. For commercial banks, the Reserve Bank of India is lender of last resort, but Co-operative banks it is the lender of first resort which provides financial resources in the form of contribution to the initial capital.

Financial Resources:

Co-operative banks are financial intermediaries only partially. The sources of their funds are: (a) Central and state government, (b) The Reserve Bank of India and NABARD, (c) Other co-operative institutions, (d) Ownership funds and (e) Deposits or debenture issues.

Chapter 2 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 Co-operative Banks 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 (USB) Urban Co-operative Banks. 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.

General Guidelines regarding Investments for Co-operative Banks

There are certain guidelines for Co-operative Banks regarding their Investment which are explaining in detail as below: 1. The Co-operative Banks should not undertake any purchase/sale transactions with broking firms or other intermediaries on principal to principal basis. 2. No sale transaction should be put through by the Co-operative Banks without actually holding the securities in their investment accounts, i.e., under no circumstances should banks hold an oversold position in any security. 3. For purchase of securities from the Reserve Bank through Open Market Operations (OMO), no sale transactions should be contracted prior to receiving the confirmation of the deal / advice of allotment from the Reserve Bank. 4. Scheduled Co-operatives Banks may undertake retailing of Government Securities with non-bank clients, such as provident funds, non-banking financial companies, high net worth individuals, etc, subject to the following conditions.

 Banks may freely buy and sell Government securities on an outright basis at the prevailing market prices without any restriction on the period between sale and purchase. Retailing of Government securities should be on the basis of ongoing Market rates/yield curves emerging out of secondar market transactions. No sale of Government securities should be affected by banks unless they hold securities in their portfolio in the form of physical scrip in the account maintained with the RBI. Immediately on sale the corresponding amount should be deducted by the bank from its investment accounts and also from its SLR assets. These transactions should be looked into by the concurrent / statutory auditors of the bank. Scheduled Cooperative banks should put in place adequate internal control checks / mechanisms as advised by the RBI from time to time.

Banks may take advantage of the non-competitive bidding facility in the auction of the Government of India dated securities provided by the RBI. Under this scheme, banks may bid up to Rs two crore (face value) in any auction of Government of India dated securities, either directly, through a bank or through a primary dealer. For availing this facility, no bidding skill is required as allotment up to Rs two crore (face value) is made at the weighted average cut-off rate which emerges in the auction.

Chapter 3 Types of Co-operative Banks

The Co-operative Banks are small-sized units which operate both in urban and non-urban canters. They finance small borrowers in industrial and trade sectors besides professional and salary classes. Cooperative Banks are Regulated by the Reserve Bank of India and 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 five categories and these categories are: District Central Co-operative Banks

Primary Co-operative Banks State Co-operative Banks Land development Banks Urban Co-operative Banks Primary Co-operative Banks The primary co-operative credit banks are 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. Primary agricultural credit societies provide short term and medium term loans. In Urban areas, to

provide non agriculture credit, urban Co-operative Banks and Employees Credit Societies are formed. These banks usually provided short term loans to their members, who are small borrowers. For Example: Primary Co-operative Agricultural and Rural Development Bank Ltd.

District Central Co-operative Banks The District Central Co-operative Banks are federation of primary societies belonging to specific district, by furnishing credit it the primary societies, central Co- operative Banks serve as an important link between these societies and the money market of the country. These Banks provide credit services to small and medium enterprises within particular district. The funds of the bank consist of share capital, deposits, loans and overdrafts from District Co-operative Banks. 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. For example: Thane Janata Sahakari Bank. State Co-operative Banks The State Co-operative Bank is a federation of Central Cooperative 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 Co-operative Banks lend money to central Co-operative Banks and primary societies and not directly to the farmers.

The State Co-operative Banks lie at the apex of the entire cooperative credit structure. Every State Co-operative Banks basic functions to furnish loans to the central Co-operative Banks in order to enable them to help promote the lending activities of the primary credit societies. This state co-operative banks, thus serve as the final link between the money market and the co-operative sector of the country. For Example: The Maharashtra State Co-Operative Bank Limited. Land Development Banks The Land development banks are organized in 3 tiers namely; state, central, and primary level (i.e. at the district or taluka level). They meet the long term credit requirements of the farmers for developmental purposes. 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 subscribed by both central and state government. These banks do not accept deposits from the general public. The land development banks meet the long credit requirement of the firms for development purpose, viz.., purchase the equipment like pump set, tractors and other machineries, reclamation of land, fencing, digging up new wells and repairs of old walls etc. land development banks are cooperation institution and they grant loan of the securities of mortgage of immovable property of the farmers.

The financial resources of land development banks are raised by floating debenture in the market. Such debentures carry the guarantees of the state government, commercial banks, Life Insurance Corporation and other land development bank as a measure of mutual support. For Example: Small Industries Development Bank of India.

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 semiurban areas. These banks, till 1996, were allowed to lend money only for nonagricultural purposes. This distinction does not hold today. These banks were traditionally centred on communities, localities, work place groups. They essentially lend to small scale industrialists, salaried employees, and other urban, semi-urban residents, small borrowers and businesses. Today, their scope of operations has widened considerably. For Example: Abhyudaya Cooperative Bank Ltd.

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 Cooperative Banks were established under the Co-operative societys acts of different states. Commercial bank structure is branch banking structure whereas Cooperative Banks have a three tier setup, with state co-operative bank at apex level, 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 co-operative banks. Co-operative banks function on the principle of co-operation and not entirely on commercial parameters.

Chapter 4 Abhyudaya Bank - A Co-operative Bank

Abhyudaya Co-operative Bank Ltd is an urban multistate Cooperative banking institution based in Maharashtra India and operating as a co-operative bank since 1965. Abhyudaya Co-op. Bank is the fourth largest multi-State co-operative bank in India. It has a network of 105 branches across Maharashtra, Gujarat and Karnataka. The bank was established with the motto of Prosperity through Cooperation. The bank has surpassed a total business mix of Rs 11,500 crore. On June 25, the bank celebrated its 48th Foundation Day. On this occasion, the banks interactive Web site was launched. Shortly, the bank will be launching International VISA Debit Card. The bank has envisioned a target of reaching a business mix of Rs 50,000 crore by 2020. During FY 2011-12, the bank has achieved substantial growth in all perspectives reflecting an overall growth of 25.05 per cent in business mix and earned a net profit of Rs. 80.17 crore. For the FY 2012-13, the bank has set a target of achieving a business mix of Rs 13,200 crore. The bank is providing all types of Foreign Exchange and Money Transfer Services . The Bank has successfully implemented core banking solution (CBS) technology, through this technology the bank is offering Any Branch Banking Service to the customers. Abhyudaya has also implemented other RBI schemes such as RTGS, ECS, NEFT, Speed Clearing, etc.

Branches Of Abhyudaya Bank

Abhyudaya Co-op. Bank has branches in Metropolitan Mumbai, Navi Mumbai, Pune, Thane, Raigad, Nagpur, Nashik, Nanded, Kankavali and Aurangabad in Maharashtra State, Vadodara and Ahmedabad in GujaratState, Udupi and Mangalore in Karnataka State. The area of operation of the bank is confined to 3 States: Maharashtra Gujarat Karnataka. The Bank further proposes to extend its area of operation to other States.

Chapter 5 Various Services of Abhyudaya Bank

1) Saving Deposit Account

WHO CAN OPEN AN ACCOUNT : An Individual in his/her name More than one person jointly An illiterate person A blind / visually Impaired / Incapacitated Persons A guardian on behalf of minor in the minor's name Clubs, Association, ( only if registered) Local bodies, all types of Co-operative Societies or any other body. Student who has completed 14 year of Age. INTEREST: Interest will be calculated @ 4% p.a. on the basis of Daily Product and will be credited to the account at half yearly intervals in March and September.

PASS BOOK: Pass book will be supplied to every savings Bank depositor showing the his account number, Name, address, transactions with date, amount and particulars. INCIDENTAL CHARGES: If a minimum balance of Rs.1000/- (with cheque book facility) or Rs.300/- (without cheque book facility) is not kept, the Bank will charge incidental charges at the rates as in force from time to time. Also refer to our Service Charges elsewhere on this site for other

incidental charges. Initial Deposit for opening Savings Bank Account & minimum balance to be maintained in the account : With Cheque Book Facility - Rs.1,000/Without Cheque Book Facility - Rs. 300/REQUIREMENTS FOR OPENING ACCOUNT :

GENERAL : Penalty at the rate prescribed will be debited to the account on quarterly basis for non maintenance of prescribed minimum balance. Bank reserves the right to close any account, if cheques drawn are returned unpaid frequently for want of funds or the account is considered as irregular/non-satisfactory. Account not in operation for more than 2 years will be treated as inoperative/dormant account. Bank reserves the right to alter, amend, and rescind the rules from time to time. Two copies of latest photographs Proof of residence to the satisfaction of the Bank (passport, Driving Licence, Ration Card, Voters Card, Electricity Bill, etc.) Photo Identity Proof Introduction by person known and acceptable to the Bank Permanent Account Number (PAN) with original for verification or declaration in Form 60/61. Initial deposit in cash.

Abhyudaya Banks other Saving Bank account Products:

1) Abhyudaya Salary Cash Credit Facility for Salary Earners (SALCC A/c) For Permanent employees of Govt., Semi Govt. organization having salary account with the branch.Salary deposited by the way of ECS/NEFT is must. 2) Abhyudaya Zero Balance Saving Bank Account for Salaried Person (SBZROBAL):An individual working in Govt. Org., Semi Govt.

Org., Agents of Life & General Insurance, employees of Educational Institutions & Public ltd. Companies.Accounts can also be opened of the employees of Business Concerns/ Private/ Industrial units (Min 20 Employees) & whose company accounts are with our bank branches.

3) Abhyudaya SB Youth Accounts for School /College going Students. 4) Basic Saving Bank Accounts (BSB). No introduction required & zero minimum balance. 5) Abhyudaya Small Saving Accounts (SSB) suitable for people of low means. Zero minimum Balance.

2) Current Deposit Account

Initial Deposit for opening Currrent Account & minimum balance to be maintained in the account : Rs. 3000/Interest : No Interest will be paid on the balance in Current Account. Statement of Account : Bank will issue statement of account to the accountholder once in a month. Benefits : Any Branch Banking (ABB), Inter connectivity. . Remittances Pay Order, Demand Draft on any location in India Collection of outstation cheques.

SMS Banking Facility.

MINIMUM REQUIREMENTS FOR OPENING ACCOUNT :

Introduction by person known and acceptable to the Bank

Two copies of latest photographs Business Proof (2) Copy of PAN Card of individual, firm, company, society, etc. Photo Identity Proof Copy of certificate of Incorporation Copy of Certificate for commencement of business (this is required for Public Limited Company) Partnership Deed Trust Deed Approved copy of Bye-laws of the society.

3)

Term Deposit-

MINIMUM DEPOSIT : Rs. 500/INTEREST :

Interest will be paid on the deposits at the rate in force from time to time. Interest amount will be paid Quartely. Interest will either paid in cash or credited to the Bank Account of the depositor.

TERM DEPOSIT CERTIFICATE : The Bank will issue a certificate in favour of the depositor /s showing the amount deposited, the period for which the deposit is accepted, maturity date and maturity amount.

LOAN AGAINST DEPOSIT : 90% Loan against deposit amount is available. Any person or persons approved by the Bank. Co-operative Societies, Registered Trust, Institutions and Associations. By two or more persons in their joint names. By a natural guardian i.e. father or mother approved by the Bank on behalf of a minor.

Interest Rate (% p.a.) Term Deposit / Duration General Public & Trusts & N.R.Odepositors including Coop.Societies including Housing, Credit,etc Senior Citizens (All deposits including Bulk Deposits) Bulk Deposits (Rs.15.00 Lakh and above) for all categories except Senior Citizen

7 Days and 6.50 above upto & inclusive 90 days 91 days & 8.00 above upto and inclusive of 180 days 181 Days and above but less than 15 months 9.50

6.50

6.60

8.50

8.10

10.00

9.60

15 months 10.00 Above 15 9.75 months and upto and inclusive of 36 months Above 36 9.25 months and upto and inclusive of 60 months Above 60 months 8.50

10.25 10.25

10.00 9.85

9.50

9.35

8.75

8.60

BANK HAS INTRODUCED FOLLOWING NEW PRODUCT UNDER TERM DEPOSIT SCHEME WITH ADDED FEATURES :

1. QIDADHAR - Abhyudaya Aadhar term deposit scheme for senior citizens.

4) Recurring DepositThe advantage in opening a Recurring Deposit Account that the depositor would be able to save certain sums in fixed monthly instalments so that he / she would be able to meet an anticipated liability / obligation after the end of a specified period.

WHO CAN OPEN AN ACCOUNT : Any person or persons approved by the Bank. Co-operative Societies, Registered Trust, Institutions and Associations. By two or more persons in their joint names. By a natural guardian i.e. father or mother approved by the bank on behalf of a minor.

MINIMUM DEPOSIT : Rs. 50/-

INTEREST : Interest will be paid on the deposits at the rate in force from time to time. Interest amount will be paid at the time of maturity.

. PASS BOOK : The Bank will issue a Pass Book showing the name, address ,instalment amount, the period for which the deposit is accepted, maturity date and maturity amount.

LOAN AGAINST DEPOSIT : 90% Loan against deposit amount is available.

GENERAL : The Bank reserves the right to alter, amend, rescind the rules from time to time.

TAX DEDUCTION AT SOURCE (TDS) : No TDS on Recurring Deposit Accounts.

5) Fixed Deposit Account. MINIMUM DEPOSIT : Rs. 500/

INTEREST : Interest will be paid on the deposits at the rate in force from time to time. Interest amount will be paid at the time of maturity. TERM DEPOSIT RECEIPT : The Bank will issue a receipt in favour of the depositor /s showing the amount deposited, the period for which the deposit is accepted, maturity date and maturity amount.

Tax Saver Fixed Deposits (Amount capped at Rs. 1 lakh per Financial Year)
MATURITY PERIOD Abhyudaya Tax Savings Scheme - 5Years DEPOSIT AMOUNT Less than Rs. 15 lakh INTEREST RATE (% p.a.)General Senior Citizen 9.75 9.75

Tax Implications: The amount invested in fixed deposits with a maturity period of 5 years in a Scheduled bank is eligible for tax deduction under section 80C. However, the interest earned on the deposit is taxable.

1) Personal LoanPURPOSE

Purchase of Consumer durables and furniture/ fixture/ computers Repairs / renovation of flat / house Purchase of 2 wheelers Purchase of gold ornaments Marriage & other religious ceremonies Domestic / Foreign tours & travels Repayment of existing debt Medical expenses for self / family members For any purpose which is acceptable to bank

MAX. AMOUNT

Rs. 3.00 lakh for Salary Deduction Loan (SDL)/ECS salary. Rs. 2.00 Lakh for Non-SDL/ECS

ELIGIBLITY

Permanent Salaried employees For Businessmen / Self-Employed / Professionals Minimum Take Home Income/Salary after EMI amount:For SDL/ECS up to Rs.2.00 Lakh- Rs.6,000/Above Rs.2.00Lakh up to Rs.3.00 Lakh :- Rs.8,000/-. For Non-SDL/ECS for loan up to Rs.2.00 Lakh :- Rs.6,000/-

REPAYMENT Upto 60 months.

RATE OF INTEREST Personal/ Surety Loan i) With 50% or more collateral securities upto 14.00% Rs.3.00 lakh. ii) Without collateral or less than 50% collateral securities upto Rs.3.00 lakh. MEMBERSHIP For Applicant :a. Upto Rs. 1.00 lakh Nominal Membership Rs.100/b. Above Rs. 1.00 lakh Regular Membership, (1% of the amount of loan :

14.50%

SURETIES

One Guarantors with good means for SDL/ECS Loan upto Rs.2.00 Lakh. Two Guarantors with good means for Others.

PRIME SECURITY COLLATERAL SECURITY SERVICE CHARGES

Nil Collateral security in the form of LIP / NSC / KVP / FDR, if available. 1. 1.30% of sanctioned limit for Mumbai, Navi Mumbai, Thane, Raigad & Pune area branches. 2. 0.70% of sanctioned limit for Branches other than Mumbai, Navi Mumbai, Thane, Raigad & Pune area branches.

DOCUMENT REQUIRED

1) Latest photograph, Photo Identity Proof, Pan Card Copy, Residence Proof of the Applicant And Guarantors, 2) In case of salaried person , salary slip for last 3 months and Bank statement for last 6 months, Form no-16-A & IT Return for last 3 years. 3) In case of Businessman, last 2 years financial statement along with ITR copy and Bank statement for business account for last 1 years.

2)Housing LoanPURPOSE Purchase of Flat (New or Resale) Construction of House, Extension to existing Flat / House Takeover of Housing Loan from other Financial Institutions, etc. Maximum amount of Rs. 70.00 Lakh. Any Individual (Businessman, Professional, SelfEmployed, Salaried Person having Regular source of Income) Property should be in the name of Applicant. The Co-applicant is necessary for Housing Loans. Coapplicant will mainly be spouse or son or daughter or father or mother of the Principal Borrower and he/she may be an earning or non-earning member. In these cases the income of the Co-Applicant can be clubbed for

MAX. AMOUNT ELIGIBLITY

calculation of eligible loan amount. In the absence of the above Co-applicants, Brother or Sister may be taken as Co-applicant, but their Income shall not be clubbed for calculation of eligible loan amount. In case of joint Agreements in Housing Loans, the Purchasers (Owners) will be the Borrowers and hence there is no need for separate Co-Applicants.

A) Eligibility as per Agreement Value Loan Amount Up to Rs.15.00 Lakh Above Rs.15.00 Lakh to Rs.20.00 Lakh Above Rs.20.00 Lakh Loan Eligibility 90% of the Agreement value 85% of the Agreement value 80% of the Agreement value

3)Education LoanScheme for Education Loan for higher Education in India and Abroad PURPOSE Studies in India (Indicative List)

Approved courses leading to graduate/post graduate degree and PG diplomas conducted by recognized colleges / universities recognized by UGC / Govt. / AICTE / AIBMS / ICMR etc. Courses like ICWA, CA, CFA etc. Courses conducted by IIMs, IITs, IISc, XLRI. NIFT,NID etc. Regular Degree / Diploma courses like Aeronautical, pilot training, shipping, etc., approved by Director General of Civil Aviation / Shipping, if the course is pursued in India. Approved courses offered in India by reputed foreign

universities. The above list is indicative in nature. Bank may approve other job oriented courses leading to technical / professional degrees, post graduate degrees / diplomas offered by recognized institutions under this scheme Studies Abroad:

Graduation : For job oriented professional / technical courses offered by reputed universities. Post graduation : MCA, MBA, MS, etc. Courses conducted by CIMA-London, CPA in USA etc. Degree / diploma courses like aeronautical, pilot training, shipping etc provided these are recognized by competent regulatory bodies in India / abroad for the purpose of employment in India / abroad.

Expenses considered for Loan

Fee payable to college / school / hostel Examination / Library / Laboratory fee Travel expenses / passage money for studies abroad Insurance premium for student borrower, if applicable Caution deposit, Building fund / refundable deposit supported by Institution bills / receipts. Purchase of books / equipments / instruments / uniforms Purchase of computer at reasonable cost, if required for completion of the course Any other expense required to complete the course - like study tours, project work, thesis, etc

MAX. AMOUNT

> Studies in India : Upto Rs. 10.00 Lakh > Studies Abroad : Upto Rs. 20.00 Lakh

ELIGIBLITY Student Eligibility :-

The student should be an Indian National Should have secured admission to a higher education course in recognized institutions in India or Abroad through Entrance Test / Merit Based Selection process after completion of HSC(10 plus 2 or equivalent). However, entrance test or selection purely based on marks obtained in qualifying examination may not be the criterion for admission to some of the post graduate courses or research programmes. In such cases, Bank will on its own criteria judge the employability and reputation of the institution concerned.

4)Taxi-auto loansPURPOSE ELIGIBILITY

For purchase of New Taxi & Auto rickshaw. 90% of On road Price (The price includes show room price, painting, CNG Kit, CNG Cylinder, Carrier, Front Guard, Meter, One time Tax, Insurance and registration Charge included in the companys Invoice.) Permit should be in the name of the applicant for plying the vehicle as a public carrier. In case of widow license of permanent nature, the person who drives the Taxi/Auto shall be made co- Borrower. Applicant should have accommodation in his own name or in the name of the family members, be it on rental (Pagadi) in chawl, or ownership or collectors land and photo pass in their name. Leave & License Residence is not allowed.

REPAYMENT RATE OF INTEREST

60 months.

New / Second Hand :10.00% New /Second Hand :11.00%

Margin MEMBERSHIP

10% Applicant Sureties -- Regular Membership. - Nominal Membership.

Chapter 6 Other services1) ATM ServiceThe Abhyudaya Banks, RELAX 24 ATM's are interconnected which are located in Mumbai, Navi Mumbai, Pune, Aurangabad, Nagpur, Nashik, Nanded, Udupi, Ahmadabad. ABHYUDAYA BANK has joined NFS (National Financial Switch) ATM network. Through this ATM network now our customers have access to more than 1,00,000 ATMs all over INDIA.

Using ATM (Automated Teller Machine) customers can access their bank account in order to make cash withdrawals of Saving & Current Accounts, ATM pin change and balance enquiry.

2) SWIFT/RTGS/NEFTABHYUDAYA BANK SWIFT CODE: ACBLINBB Details of Foreign Correspondents : SR. CURRENCY NAME OF THE BANK NO 1 USD Standard Chartered Bank One Madison Avenue, New York, NY100103603, U.S.A 2 USD Bank of India 277 Park Avenue, New York NY10172-0083, U.S.A. SWIFT NOSTRO CODE A/C NO SCBLUS33 3582-025465-001

BKIDUS33 00044470013

GBP

EURO

EURO

JPY

Bank of India 63, Queen Victoria Street, London Bank of India 3, Rue Scribe F-75009, Paris France Standard Chartered Bank Franklinstr 46-48, 60468 Frankfurt am main Bank of India Marunouchi, Nakadori Bldg, Chiyoda ku, Tokyo

BKIDGB2L 0171009803

BKIDFRPP 43100004127

SCBLDEFX DE50 5123 0500 0018 2607 02

BKIDJPJT

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3) MONEY GRAM FOR GLOBAL REMMITANCIn as little as 10 minutes. Its global network is comprised of 190, 000 agent locations in more than 190 countries and territories. MoneyGrams convenient and reliable network includes retailers international post offices and financial institutions.

Process flow: The remitter, who is outside India, desiring to send money with safety and speed to his near and dear ones, goes to any of the agents of Money Gram fills in the remittance form and tenders the equivalent foreign exchange inclusive of charges to such agent. After processing application through Anti-Money Laundering Guidelines, remitter informs the beneficiary in India the 8-digit reference number and the amount of money remitted. The Beneficiary visits of our branch locations fills in a simple receive form and submits valid

proof of photo Identity and his/her address location. The information will be verified and the amount will be paid to the beneficiary in minutes.

4) INSURANCE PRODUCTAbhyudaya Bank Now Corporate Agent of LIC of India & The New India Assurance Co. Ltd. The bank has taken Corporate Agency of Life Insurance Corporation of India andThe New India Assurance Co. Ltd which are prestigious insurance company in India. The different policies offered by them are now available through different branches of our Bank. All interested parties may contact to their nearest branch or Insurance Dept., HO for insurance advise.

5) Demat :Demat is a process, where at the request of the customer, the physical stocks are converted into electronic entries and maintained in the depository system. Depository :Depository is a provider of facility for holding and / or transacting securities in book entry form. Physical securities can be converted in to book entry form i.e. electronic form by way of immobilization or Dematerialization (so that they exist only as electronic records). India has chosen the Dematerialization route. A depository functions somewhat similar to a commercial Bank. To avail of the services offered by a depository, the investor has to open a Demat account with a registered Depository Participants (DP). Depository Participant :-

Depository Participant (DP) is an agent of Depository who is authorized to offer depository services to investors. Financial Institutions, Banks, Custodians and Stockbrokers complying with the requirements prescribed by SEBI / Depositories can be registered as a DP.

Chapter 7 SUCCESS STORY OF ABHYUDAYA BANK

VISION
Our Banks plunge to excellence in all directions will be powered by the VISION that provides overarching inspiration, The VALUES that serve to guide taught & action, The VITALITY that embarks on strategy formation & execution. The immense potential of our Bank will be realized by the distinctive amalgam of the Vision, Values & Vitality.

 MISSION
To continuously strive for synergy between technology, systems & human resources for providing products & services that meet the quality, performance & aspirations of the vast clientele & to maintain the highest standards of ethics & societal responsibilities, constantly innovate products & processes & develop teams that keep the momentum going to take the Bank to excellence.

The Beginning :
A dedicated group of social workers and labour movement activists, imbued with the spirit of service to the cause of mill workers, other industrial and hitherto neglected economically weaker sections of society started Abhyudaya Co-op. Credit Society Ltd. in 1964, with a small share capital of Rs. 5,000. The area of Kalachowki, Sewri, Parel and their surroundings were predominantly populated by low income industrial labour and lower middle class people at that time. In a short period of time Abhyudaya Co-op. Credit Society got converted into an Urban Co-op. Bank. Finally in June 1965, Abhyudaya Co-op. Bank Ltd. was established with the motto of "Prosperity through Cooperation".

A Forward March :
The Bank was conferred with Scheduled Bank Status by Reserve Bank of India in September1988. Over a span of 49 years, it became one of the leading Urban Co-op. Bank in the country with branches in Metropolitan Mumbai, Navi Mumbai, Pune, Thane, Raigad, Nagpur, Nashik, Nanded,

Kankavali and Aurangabad in Maharashtra State, Vadodara and Ahmedabad in Gujarat State, Udupi and Mangalore in Karnataka State. On 11th January, 2007 the Bank was registered as a MultiState Co-op. Bankby the Central Registrar, New Delhi. The area of operation of the bank is confined to 3 States Maharashtra, Gujarat and Karnataka. The Bank further proposes to extend its area of operation to other States. The merger of Shree Krishna Sahakari Bank Ltd., Vadodara, Gujarat State, Janatha Co-op. Bank Ltd., Udupi, Karnataka State and Manekchowk Co-op. Bank Ltd., Ahmedabad, Gujarat State has been effected. For the F.Y. 2013-14 Bank has set a target of achieving a business mix of Rs. 15,800 Crore. Recently, Bank has registered itself with CPSMS (Central Planned Scheme Monitoring System) which is a project of Dept. of Expenditure, Ministry of Finance, New Delhi for providing AADHAAR based Direct Cash Transfer Benefits (Subsidies) to the customers.

Growth & Strength :

As on 31st March 2013, the bank has 1.51 lakh members and more than 16.66 lakhdepositors. During the F.Y 2012-13 upto 31st March 2013, Bank has achieved substantial growth in all perspectives reflecting an overall growth of 20.64% in business mix & total business mix of the bank has reached over Rs. 13145 Crore. As on 31st March 2013, Banks Deposits have reached upto Rs. 8036.40 Crore with rise of 23.27% while Advances have reached upto Rs. 5108.88Crore with a rise of16.70%. The strength of the Bank is reflected in the fact that its Paid up Capital and Reserves have

amounted to Rs. 970.08 Crore and Investments are to the tune of Rs. 3428.00 Crore. The Capital Adequacy Ratio maintained by our bank is as high as13.22%. For the F.Y. 2012-13, the Net Profit of the Bank after tax/provision stood at Rs. 91.22 Crore.

Technological progress and services offered by Abhyudaya Bank :

The Bank has launched its interactive website for easy accessibility of various products & services for its customers. Bank has successfully implemented Core Banking Solution (CBS) technology, through this technology the bank is offering Any Branch Banking Service to the customers. Bank customers can transact cash, transfer of fund, clearing, remittances, etc. from any branch of the bank and also use ATMs installed at any branch for cash withdrawals, statement of accounts and balance enquiry. Reserve Bank of India has also conferred license to open offsite ATMs and the same is installed at Abhyudaya Nagar & Ghatkopar. Bank is providing all types of Foreign Exchange & Money Transfer Services such as MoneyGram & Xpress Money. Bank is also offering Tele-banking and Internet Banking services to the customers. Bank has implemented / adopted other RBI schemes such as RTGS, ECS, NEFT, Speed Clearing, etc. Bank has taken Corporate Agency of LIC of India & The New India Assurance Co. Ltd. and all types of policies of LIC & general policies of New India Assurance Co. Ltd. are made available at our branches. Out of 105branches, 39 branches are providing all seven days a week service to the customers. Our customers are free to operate on other banks ATMs through BANCS and NFS Network and customers of other banks can transact from 100 ATM machines installed by our bank. Bank is also offering Demat, Pan Card Facility, IPO Distribution & Online Tax Payment Services through network of our branches. Bank has introduced Billing Software Service Module for Housing Societies for generating periodical maintenance receipts. In three branches viz. Vashi, Dadar and New Panvel 'Franking' facility has been made available for the general public. Bank is having its own fully equipped staff training college at Vashi premises

whereby the talent of the staff members and officials are groomed to make them competitive to face the challenges in the Banking Sector. Bank has undertaken a market research survey for its customers. Research outcome has shown us that Bank has customer centric banking approach and customer satisfaction index of the bank stood at 9.1 on a scale of 10. Bank focuses on relationship banking rather than merely on transactional banking.

Chapter 8 AWARD & PRISES

1. Bank has been awarded by Banking Frontier for the excellence in four different fields amongst large size Co- operative Banks viz, Best Chairman Award, Best Overall Bank Award, Best CRM (Customer Relationship Management) Award and Best Outsourcing Award on 12th Oct .2012 for the F.Y. -2011-12.

2. Indian Banks Association has awarded The Best Technology Bank of the year first runner up Award consecutively for 2 years (2010-11 &

2011-12) in the Co-operative Banks category in recognition of its outstanding achievement in the area of Banking Technology.

3. The Brihan Mumbai Nagari Sahakari Banks Association Ltd has presented First Prize in the category of Banks having Working Capital of more than Rs. 500.00 Crore on 31st July 2012 for the year 2011-12.

4. The Maharashtra Urban Co-op Banks Federation Ltd., Mumbai has awarded The Best Bank Second prize for the F.Y. 2011-12.

LONG TERM PERSPECTIVEWith the expanding horizons, continuous developments and competition the bank proposes to become full fledged financial service provider, fulfilling requirements of customers and other stakeholders by providing all allied services, as permitted by the regulatory authorities. The Bank has adopted advanced technology for providing faster and convenient services to clients. These major long term proposals will enable the bank to increase its market share and better fulfillment of expectations of all the stakeholders.

ABHUYDAYA BANK IN PERSUIT OF GROWTH

Shri Vijay S. Morye Shri Rajeev D. Gangal

: :

Managing Director Chief General Manager

Shri Dhanji G. Kurlawala Shri Puneetkumar R. Shetty Shri Prasanta k. Mohapatra Shri Sonudas A. Naik

: : : :

General Manager ( Credit & Forex ) General Manager (Legal & Recovery) General Manager (I.T. & Treasury ) General Manager (Development & KYC/AML) General Manager ( HRM & Accounts) Deputy General Manager (Navi Mumbai Zone) Deputy General Manager (Treasury & Forex Treasury Dept.) Deputy General Manager (Central Zone) Deputy General Manager (Pune Zone & Regional Office Udupi) Deputy General Manager (Central Law) Deputy General Manager (Legal and Recovery) Deputy General Manager (Western Zone & Regional Office

Shri Camillo F. Fernandes Shri Prakash K. Naik Shri Anil K. Nikam

: : :

Shri Krishnakumar B. Sawant Shri Bhaskar M. Shetty

: :

Shri Anthony P. Naronha Shri Pradeep V. Kamat Shri Girish V. Rane

: : :

Ahmedabad .)

Nityanand M. Prabhu Vice Chairm

Sitaram C. Ghandat Chairman

Vijay S. Morye Managing Director

Chapter 9 Corporate Governance and Corporate Social Responsibility

The Bank's philosophy on Code of Governance:
Abhyudaya Bank is committed to the best practices in the area of Corporate Governance in letter and in spirit. The Bank believes that good

corporate governance is much more than complying with legal and regulatory requirements. Good governance facilitates effective management and control of business; enable Bank to maintain a high level of business ethics and to optimize the value for all its stake holders. The objectives can be summarized as under. To enhance shareholder value. To protect the interest of shareholders and other stakeholders including customers, employees and society at large. To ensure transparency and integrity in communication and to make available full accurate and clear information to all concerned. To ensure accountability for performance and to achieve excellence at alileveis. To provide corporate leadership of high standards for others to emulate.

Corporate Social Responsibility

Abhyudaya Bank regards Corporate Social Responsibility (CSR) as an investment in society and in its own future. Abhyudaya Bank believes that the growth and better profit performance. Alone cannot be measure of successful leadership in milieu where social responsibilities are considered

equally important. In this direction Abhyudaya Bank took an initiative with the help of NGO to create financial literacy awareness programme and approached 1700 villages covering districts of Thane and Pune. Abhyudaya Bank has donated Rs. 54.19 lacs being 1 % of the net profit to 35 social/charitable organisations.

Chapter 10 Problems of Co-operative Banks

Duality of control system of Co-operative Banks
However, concerns regarding the professionalism of urban Cooperative 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, Urban Co-operative Banks 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.

Chapter 11 Conclusion
Co-operative Banks are an indispensible part of our Indian banking structure. There is still more growth for Co-operative Banks in todays banking scenario. There is a need for more professionals in cooperative banks to adopt advance technology to attract large number of customers and also to retain existing customers. Along with regular banking activities, today Co-operative Banks are also providing many other services

like insurance product, mutual fund. Internet banking, phone banking, ATM cards, etc. In case of Abhuydaya Co-operative bank, constant support from loyal clientele, visionary Board of Directors, guidance from stakeholders and staffs dedication has been contributed to maintain the status of most successful bank in the country since its inception. Abhyudaya bank is surviving very well in the market and it will definitely keep going on successfully in the near future also with the help of their four key factors: viz., Information technology, Electronic banking, Visa Debit card and multi-expansion plans. The main aim of the bank is to provide best class of products and services to its customers and hence it is for sure that the Abhyudaya bank is having bright future.

VISIT REPORT
ABHUDAYA CO-OPERATIVE BANK BHIWANDI BRANCH

The Bhiwandi branch of Abhuydaya Co-operative bank was set up in 2007. The environment and surrounding of the bank was very neat and clean. There was jointly underground arrangement of place for loan department apart from main place for regular transactions. At the bank I met the Branch Manager of Bhiwandi whose name was Mr. Ramakant Tare. He discussed with me regarding Abhyudaya banks

regular transactions and provided all the information which is required and also answered the questions asked by me. The staff members of bank were also cooperative. Apart from accepting deposits and lending loans, bank also provides other services like SMS banking, internet banking, ATM service, Debit card, insurance products and mutual fund. It was a great and exciting experience to visit the Bhiwandi branch of Abhyudaya Co-operative bank and to collect information required for the completion of the project work.

IFSC Code Details and Bhiwandi Branch Information

THE ABHUYDAYA CO-OPERATIVE BANK LTD - BHIWANDI BRANCH is located at MAHARASHTRA state, THANE district, BHIWANDI city and the bank branch's address is [SHOP NO.9, 10 &11, GR. FLOOR, JANGID COMPLEX, ANJUR PHATA, KAMATGHAR, BHIWANDI, and PIN-421302]. Contact phone number / numbers - 2522-262216. The IFSC Code is ABHY0065069. Branch code is the last six characters of the IFSC Code 065069. Bank: State: The Abhuydaya Co-Operative Bank Ltd. Maharashtra

District: Branch: IFSC Code: MICR Code: Branch Code: City: Address:

Thane Bhiwandi Branch ABHY0065069 (5th character is zero) 400065068 000047 (Last 6 Characters of the IFSC Code) Bhiwandi Shop No.9, 10 &11, Gr. Floor, Jangid Complex, Anjur Phata, Kamatghar, Bhiwandi, Pin-421302

Contact:

2522-262216

Annexure

Questionnaire
In which year the Bhiwandi branch of Abhudaya Co-operative Bank was established?

What is the name of Branch manager? .

Which type of banking facilities the Abhudaya Co-operative Bank is providing to its customers? .

How many branches of Thane district?

Abhudaya Co-operative Bank are there in

 Apart from banking, which types of services are provided by Abhudaya Co-operative Bank ?

How many employees are working in the Bhiwandi branch? . .

How many customers are there of Bhiwandi branch? .

What are the interest rates for different types of loans?

What are the innovations in banking products or services?

What is Core banking solution? What are the future plans of Abhudaya Co-operative Bank? .

Webliography

www.rbi.org.in www.Banknetindia.com www.wikipedia.org/wiki/Bank#History www.wikipedia.org/wiki/Banking_regulation www.wikipedia.org/wiki/Banking_in_India#Early_history

 www.rbi.org.in/scripts/publications www.scribd.com/doc/5434275/indian-banking-sector www.scribd.com/doc/4569884/The-Reserve-Bank-of-India89 www.finance.indiamart.com/investment_in_india/Scheduled_commerci al_banks.html www.wikipedia.org/wiki/_districtcooperative_bank) www.rbi.org.in/scripts/fun_urban.aspx www.scribd.com/doc/8361020/india www.nabard.org/introduction.asp