INTRODUCTION

A co-operative banking is a financial entity which belongs to its members, who

are at the same time the owners and the customers of their bank. Co-operative

banks are often created by persons belonging to the same local or professional

community or sharing a common interest. Co-operative banks generally provide

their members with a wide range of banking and financial services (loans,

deposits, banking accounts etc.) They 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. A co-operative bank has

been defined by Devine as 'a mutual society formed, composes and governed by

working people themselves for encouraging regular savings and granting small

loans on easy terms of interest and repayment; A co-operative bank is a

voluntary agency formed by needy persons themselves to get credit facilities on

the basis of the securities they have, not from the rich or from the public, but by

their own resources-resources of the credit society.

The Pothukal Service co-operative Banks is a primary agricultural credit

bank, It main object is to undertake agriculture credit activities. Some of main

factions are to borrow fund from members as well as non members. This fund

utilize for giving loans to the members for productive purpose.

1
OBJECTIVE OF THE STUDY

The main objectives of the study are to examine the lending pattern and main

aspect regarding types of loan and its features:

To study general functioning of the bank

Find out lending pattern and the various types of loan provided by the

bank To evaluate financial position^f4h#-ba-nk

SIGNIFICANCE OF THE STUDY

The Pothukal Service Co-operative Bank Ltd is one of the well know

bank in Nilambur taluk. It meets the needs of people of the Pothukal

Panchayaths. This bank is functioning mainly for providing agricultural loan to

the Pothukal Panchayaths. The bank provides several types of loan facilities. So

the study about loans and advances is significant.

SOURCES OF DATA

Mainly data are collected from the secondary sources they are:-
Annual report of the Bank
Loan scheme report of the bank
By laws
Journals
Policy and programs report standards

METHODOLOGY OF THE STUDY

2
The bank under study is the Pothukal Service Co-operative Bank Ltd secondary

data are used in this study for the interpretation of the data, percentage are used.

LIMITATIONS OF THE STUDY

Dependence on secondary data

Time is a limiting factor for the study

There are some problems relating to statistical approximation

Clerk or bund for preparation

Complete project accurate data not available

STATEMENT OF PROBLEMS

The Pothukal Service Co-operative banks is a primary agriculture credit

bank, its main objective is to undertake agriculture credit activities. Some of

main factors are to borrow fund from members as well as non members. This

fund utilize for giving loans to the members for productive purpose.

REVIEW OF LITERATURES

3
 Lending is a very important activity of any type banks... considering it

importance many scholars have given their views on this subject. Some of the

important views are given below:-

According to Dr .K Venugopalan, "Banks and building societies can provide a

variety of loans for both new and existing customers the most common sort of

loan is the overdraft facility that many current accounts have almost as a matter

of course."

In the words of Crowther, "A bank collects money from those who have it

to spare or who are saving it out of their incomes and lends this money to

those who require it."

Ben S Bernanke is of the opinion that a statutory resolution regime for

no banks, besides reducing uncertainty, would also limit moral hazard by

allowing the government to resolve failing firms in a way that is orderly

but also wipes out equity holders and haircuts some creditors, analogous

to what happens when a commercial bank fails."

In the opinion of Dr. Subbarao, "The priority in the short to medium

terms is to pursue financial sector reforms in the context of financial

stability, price stability and with an ear firmly to the ground on real sector

reforms."

In the words of N.R. Narayana murthy, "Corporate governance is not just

filling up check list. It is about culture. It is about mindset. It is about

4
 who you are. It is about the honesty and the willingness of the

management and the shareholders at large."

Dr. Subbarao stated that, "The Reserve Bank has adjusted its policy

stance from demand managemer' to arresting the moderation in growth.

In particular, the aim of these measures was to augment domestic and fore

liquidity and to ensure that credit continues to flow to productive sectors of the

economy.

According to Stephen G Cecchetti, "Household over borrowing is only

one of the problems created by property price booms. They also distort

the allocation of capital by over - rewarding construction investment. The

result is not just too many houses and many building, but too many

construction workers and too much construction equipment as well."

In the words of Chetan Abya, "The government is absorbing such a large

part of bank deposits for funding its revenue expenses and subsidies

rather than long term investment that there's not enough left on the table

for bank to explore lending opportunities beyond the large corporate."

According to O.P. Bhatt, "Bank would need to raise capital as the onus of

funding corporate had shifted to them in the context of other sources of

funding drying up;, they would also have to take care of the write-offs on

account of stressed assets."

According to Parul Bhatia, "The banking sector is the lifeblood of a

country's economy. A downfall in the business of the banks automatically

5
has a negative effect on an economy. The performance of the banks can

be primary judged by their non performing asset levels with the banking

industry also facing the brunt of the recession and with the revelation of

big corporate frauds, the Indian commercial banks are now wary about

advancing credit and are closely monitoring the way their loans are

advanced and managed."

CO-OPERATIVE MOVEMENTS IN INDIA

6
 Generally speaking the co-operative movement India started with the

passing of the Co-operative Credit societies Act". As the movement was

sponsored by the Government, the origin of the co-operative movement in India

was entirely different from that of western countries including England, In all

western countries the beneficiaries of the movement felt a need for organizing

such an institution in order to solve some of their economic problems. They had

in mind the objective through which the movement would successfully achieve

and the way and means for the same. This clear vision is the co-operative spirit.

The people with this co-operative spirit were the pioneers of the movement in

those countries. The Government or the well to do sections of the society or any

other agency did not influence them to organize such an institution. Without any

such influence the persons who had the co-operative spirit organized the co-

operative institution. Later the government thought that it would be desirable to

have special Acts were for governing these institutions. As a result, co-operative

Acts were passed in those countries.

But in all Asian countries the movement originated in the reverse order.

The movement did not originate as a spontaneous democratic movement, but as

the result of a government policy. The government not only sponsored and

organized movement but also nurtured it. As a result of this, the movement

originated in the following order. First an Act was passed by the Government

with necessary provisions for the organization and management of the co-

operative institutions. Subsequent to the Act, co-operative societies were

7
organized at the initiative of government officials and not at the initiative of co-

operators. The movement thereafter attempted to find out co- operators who had

co-operative spirit. This attempt has not succeeded completely so far in so many

Asian Countries.

In India co-operation is of recent origin. The idea of co-operation was

borrowed by India from western countries. Like in European counties co-

operative movements was introduced in India as a state policy. As the first step

the government passed co-operative credit societies Act in 1904.

At first a co-operative society was started in Punjab as early as 1891 for

controlling the common land of the village for the benefit of co- shares and

functioned until 1922. Again agriculture bank were introduced in 1894 by the

land holders on strictly co-operative principles for providing credit to the

members. In spites of lack of fund, ignorance unsuitably of law and absence of

supervision, they achieved considerable progress. But there co-operatives were

not sufficient to rectify the conditions faced by the farmers at India 90% of the

India farmers lived in rural areas. India was under the control of the British

Government for a long period, and she was exploited by the British

Government. As a result the local industries had set of back and they gradually

declined. The economic position of the villagers was completely shattered.

People were suffering from great indebtedness.

8
 At this stage some relief measures was taken by the Government by

passing the decide Agriculture relief Act 1879, Land improvement Act of 1884.

These two Acts were put together and called by them

"Taccavi Law ', By these Act the Agriculture could borrow public money

for productive purpose approved by securities or a change on the land. The

repayment of Taccavi loans had to be made after the main harvest. Thus since

the above movement was failure other plans were consideration in 1892 Mr.

Frederic Nicholson was appointed by the Government of Madras to report on

the advisability of starting the system of lands banks in the province. in 1899 he

submitted his report which he recommended-raiffeisor type of co-operative

credit societies. After this was considered by the Government of India in 1900

revision model co-operative societies were introduced.

The Famine commission, appointed by the government following the two

terrible famines met in 1901 and pronounced the strengthening of moral

backbone of the agriculture to be chief means of preventing famines. According

the commission recommended mutual credit assassination. As a result of the

continuous efforts of the committee's credit co-operative were given a legal

basics and official endearment. It was quite simple and elastic. This gave wide

discretion to the regulators to build up co-operative structure.

9
CO-OPERATIVE LEGISLATIVE IN KERALA

Before independence Indian state were ruled by Royal Kings. In those

states unified laws were not operative. The present Kerala State consists of old

Travancore State, Cochin State which were joined and formed Travancore

Cochin State in 1949, old Malabar District of Madras State.

Sir Rajagopalachari, who was the Registrar of co-operative societies at Madras

province, was appointed as Diwan of Cochin and subsequently as Diwan of

Travancore State. He had the experience in the working of co-operative

societies. So he took the initiative the first Act by the name Cochin Co-operative

Societies Act of 1913 was passed.

According to the provisions of this Act the first society organized in

Cochin State is still working by the name Edavanakkad Service Co-operative

Bank. The same Rajagopalachari was appointed as the Diwan of Travancore

also. He took the initiative and thereby Travancore Co-operative societies

Regulation was passed in the year 1914. The late C. Govindapillai was

appointed as the first Registrar of Co-operative societies in Travancore State on

November 1914. The first society was registered on 17th November 1914by the

name Trivandrum Central Co-operative Bank Ltd which is the present Kerala

State Co-operative Bank. In 1949 the Travancore and Cochin state were

integrated and thereby Travancore Cochin State was formed. At that time the

Travancore Co-operative Societies Act was applicable to the Travancore State

and Cochin Co-operative Societies Act was applicable to the Cochin State.

10
There arises necessity to have a common law for the entire Travancore, Cochin

State and old Acts were repealed.

In the year 1956 the Kerala State was formed. At this time two different

laws were in existence vise Travancore Cochin Co-operative Societies Act

which was force in Travancore Cochin area Madras Co-operative societies Act

1932 was in Malabar area which was a part of the Madras province. It was felt

essential at that time to unify the laws related to the Co-operative Societies for

the orderly development of the societies of Kerala in accordance with the

relevant directive principle of state policy enunciated in Indian constitution. So

the Kerala Co-operative Societies Act of 1969 was enacted which came into

force on 15th May 1969 the rules framed under the Act came into force in July

1969.

KERALA CO-OPERATIVE SOCIETIES ACT 1969

The Kerala Co-operative Societies Act 1989 is the law relating to the co-

operative societies in the state. The Act has come into force on 15th May 1969.

This new legislation specifically repeals the Madras Co-operative Societies Act

1932 as in force in the Malabar area of the Madras state and the Travancore

Cochin Co-operative Societies Act. The Act has consolidated, amended and

unified the law relating to the co-operative societies in the state. As a result of

this legislation all the co-operative institutions in the state are governed by

Kerala Co-operative Societies Act 1969.

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PRIVILEGES OF CO-OPERATIVE SOCIETIES

Co-operative societies in Kerala enjoy the privileges like :

First charge of society

Charge on land owned or held by members who borrow loan from certain

societies
Charge on land owned or held by members
Deduction from salary of debtors
Deduction from salary or wages
Charges and set-off in respect of shares
Shares or interest or reserve fund not liable to be attached
Exemption from stamp duty and registration fee

CO-OPRTAIVE BANKING STRUCTURE

Co-operative banking structure is a 3 layer structure

A State co-operative Banks works at the apex level.

The state co-operative bank is a federation of central co-operative banks and

acts as a watchdog of the co-operative banking structure in the state. It 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 Central Co-operative Bank works at the intermediate level.

These are the federation of primary credit societies in a district and are of

two types-those having a membership of primary societies only and those

12
having a membership of societies as well as individuals. The funds of the bank

consist of share capital, deposits, loans and overdrafts from state co-operative

banks and joint stocks. These banks provide finance to member societies within

the limits of the borrowing capacity of societies. They also conduct all the

business of a joint stock bank.

Primary co-operative credit societies at base level.

The primary co-operative credit society is an association of borrowers

and non-borrowers residing in a particular locality. The funds of the society are

derived from the share capital and deposits of members and loans from central

co-operative banks. The loans are given to members for the purchase of cattle,

fodder, fertilizers, pesticides etc

CLASSIFICATION OF CO-OPERATIVE BANKS

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Co-Operative Banks
Agriculture Non - Agriculture
 Short and medium Long term credit
Employee Central Apex Central co-
term credit institutions
societies credit Govt. Industries operative
Societies Urban Banks house
Banks mortgage
banks

Primary co- Primary City co-

State Central Village Primary land operative
operative Industrial
Co- Co- Bank development house
urban Banks
Operativ Operative Bank mortgage
development
e Bank Bank Banks

POTHUKAL SERVICE CO-OPERATIVE BANK LTD NO.M.225 History

The Pothukal Service Co-operative Bank Ltd No.M.225 is situated in the

heart of Pothukal in Nilambur taluk in Malappuram District, Kerala State. The

bank was registered on 17th January 1977 and started on 28th February 1977

under the name Pothukal Service Co-operative Bank Ltd No.M.225.

14
Area of operation

The area of operation of the Pothukal Service Co-operative Bank Ltd

shall be confined to Pothukal Panchayaths. They have not any other branches in

this location.

Membership
The membership of Pothukal Service Co-operative Bank Ltd should be
open to all people living within the area of operation of the bank. Agriculturist
and non agriculturist are admitted as members.
Capital structure

The Pothukal Service Co-operative Bank Ltd raise share capital through

allotment of 'A' class share to the individual, 'B' class shares to the state

Government of the allot, 'c' class shares to gold loans and 'D' class shares to

consumption loans.

Authorized capital:
'A' class 100 20,00,000
'B' class 100 100,000
'C' class 5 50,00,000
'D' class 100 1,50,000
7,250,000
Employment pattern

The Pothukal Service Co-operative Bank Ltd has 20 staff members

including a secretary who is the Chief executive officer at the bank. Secretary is

appointed by the Board of Directors.

Staff pattern of the Pothukal Service Co-operative Bank Ltd:

15
Figure: 3.1

Secretary

Assistant Secretary

Chief Accountant

Internal Auditor

Working capital

The amount of the capital required for a day affairs is working of the
Accountant

Pothukal Service Co-operative Bank Ltd raised from the following sources.

Share capital - It comprises the paid up share capital

Clark
Reserve fund - It is a part of the net profit
Cashier
Deposits - The deposit raised from public
Borrowing - Borrowing from the Malappuram District Co-operative Bank

Objectives of the Bank

The objectives of Pothukal Service Co-operative

Peon DailyBank Ltd are
deposit as follows:-
Collector

To encourage thrift, self help and Co-operative members

To provide agricultural and non agriculture loans to members
To accept deposit from members and non members
To draw, make, accept, discount, collect and deal in bills of exchange,

promissory notes, draft, warrants, certificates

To borrow funds or raise money
To acquire movable and immovable properties necessary for the working of

the bank

16
 To encourage cottage industries and provide self employment loans for it
To store agricultural product to members
To purchase and selling consumers goods
To provide locker facilities to customers
To procure modern agricultural tools and lend it to members and non

members

Functions of Pothukal Service Co-operative Bank Ltd

Main functions of Pothukal Service Co-operative Banks Ltd are deposit

mobilization and providing loans and advances:-

Deposit mobilization
Pothukal Service Co-operative Bank Ltd has been showing remarkable

improvement in the mobilization of deposit may be received as current,

saving, fixed, and recurring.

Type of deposits Interest rate

Fixed deposit 10.30%

Daily deposit 2%

Daily deposit weekly 2%

Deposit current a/c 2%

Deposit Kshemanidhi 10%

Recurring deposit 10%

Deposit Saving Bank 4%

Deposit thrift 6%
Providing Loans and Advances

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 The Pothukal Service Co-operative Bank Ltd providing agricultural and

non agricultural loans to the members the bank considered the following points

while lending loans.

a. Loans should be issue only to members except in case of loan on deposit
b. Every loans must be approved by the Board of Directors except in case of

gold loans on advances

c. Necessary securities must be given to loans
d. Board of Directors has the right to reject any members application for loan

with proper reason

e. Loan is sanctioned in accordance with the capacity of the loaners, security to

repay the loan and the market value of the security.

Other functions

Other functions of the bank include agency services and general utility services

a. Agency services

Agency services include collection of credit instruments, executive of standing

orders, purchase and sale of securities, remittances of funds, act as a

representative of customers etc.

b. General utility services

It includes providing safe custody of valuables, locker facilities, information to

members, collection of statistics etc.

Books and Registers kept by the bank

The following are the important books and registers kept by the Pothukal

Service Co-operative Bank Ltd.

Cash Book

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 Savings Bank Ledger
Recurring Deposit Ledger
Saving Bank Subsidiary Day Book
Fixed Deposit Ledger
Loan Ledger
Loan subsidiary Ledger
Main Day book
General Ledger

Administration and Management

A service co-operative bank is a voluntary form of organization,

organized on co-operative principle in such a way as to provide its members

every kind of service they might need. Subject to the provisions in the Act,

Rules and Bye-laws, the final authority in all matters connected with the

management of a society will be the general body. The general body consists

of all regular members of the society except the nominal or associate

members. Fifty members or 1/5 of the total members of share holders

whichever is less, shall constitute quorum for general body meeting.

19
 The day to day business of a society is conducted by Managing

Committee. In a service co-operative bank the Managing Committee consists

of 7-15 members elected from among the members of general body. Two

seats should be reserve in the Managing Committee one for woman member

and another for a member belonging to ST/SC. The Managing Committee

shall elect from among themselves a president, vice president and the other

office bearers.

It is a superior institutional arrangement for financing agricultural

operations. Co-operative banks offer loans to farmers so that they might utilize

the amount for increasing agricultural production and raising their standard of

living. In a country where the farm population is composed of small farmers

who have small means and small lands, co-operative banking is most

advantageous. As co-operative banks grant loans for agriculture and allied

activities, they supplement the income of the farming community by enabling

them to engage in dairy farming, sheep rearing, vegetable growing etc.

The deposit of the Pothukal Service Co-operative Bank Ltd in mainly

used for providing loans to its members The Dictionary meaning of one word,

Loan is lending anything for interest. Loan should be granted only to the

eligible member who is having the repayment capacity. The Board of Directors

20
can fix the maximum amount of loan with respect to the rules prescribed by the

registers. Short-term and medium term loans are usually allowed by the bank.

The Bank provides Agricultural and non agricultural loans to its members.

Agricultural loans are loans for various agricultural activities; non agricultural

loans are issued other than for agricultural activities.

CONDITIONS TO BE FULFILLED FOR AVAILING LOANS

The following conditions should be fulfilled for loans:-

The member should be eligible for getting loans.

The member shall have no over dues towards the bank at the time of

applying for loans.

The project for which the loan is taken should be available.

Members should be given proper security to the bank.
Loan should be given according to the repayment capacity of the member

and the market value of guarantee given.

Members should be given the securities of two members it he cannot

produce any other security.

TYPES OF LOANS

Different types of loans offered by Pothukal Service Co-operative Bank Ltd as

the following:-

E.M.S Housing Loan

Gold Loan
Housing Loan
Kisan Credit Card Loan
Long Term Loan

21
 Medium Term Milch cattle Loan
Medium Term Integrated Rural Development Programme Loan
Medium Term Own Fund Loan
Non Agriculture Short Term Loan
Own Fund Loan
Provident fund Loan
Swarnajayanti Gram Swarojgar Yojana Loan
Short Term agriculture Loan
Secured Loan
Managalya Soothra Loan
CLASSIFICATION OF LOAN

Loan can be classified into period wise, purpose wise and security wise.

The period wise loan is most commonly accepted classification. According to it

loan is classified as short term, medium term and long term loan. According to

the purpose, the loan is classified as production loans and consumption loans

and according to security surety loans mortgage loans.

Short term Loans

Short term loan are given for seasonal agricultural operations directed

towards in a rising of crops on land, including a reasonable amount for the

maintenance needs of the farmers and the family. Short term loans are generally

given up to the period of 12 months which may be extended up to 15 months

according to the nature of cultivation. Such loans are given for purchasing

seeds, manure, fertilizer, insecticides and meeting labour charges etc. the loans

are repaid with interest soon after the harvest. This short term loan is also

22
 known as production loan. Non agricultural short term loans are given to

members for tiding over seasonal difficulties, purchase of raw materials etc.
Medium term Loan
Medium term loans are given for a periods ranging from 18 months to 60

months for development purpose like the reclamation of land, construction of

bunds, purchase of live stock, small machinery and implements, sinking and

repair of well and tanks for irrigation purpose etc. Medium term loans have to

be repaid with interest in installments fixed by thus societies. This Loan is also

known as development loans.

Long term Loans

Long term loans are given for a period ranging from 7 years and

exceptional cases up to 20 year, for making permanent improvement on land

construction of bunds, cattle sheds and purchase of costly machinery,

redemption of mortgage of land, liquidation of prior debts, etc such loans are

generally given on the mortgage of landed property of other assets.

23
 AN ANALISIS OF THE LENDING PERFORMANCE OF THE
POTHUAKL SERVICE CO-OPERATIVE BANK
Short term loans of Pothukal Service Co-operative

Table: 4.2

Short term loans (in

Year Trend% Increase / decrease
lakhs)
2011-12 1183.38 100% -
2012-13 1322.23 111% 11%
2013-14 1356.74 114% 14%
2014-15 1571.23 128% 28%
2015-16 1774.13 149% 49%
Figure: 4.1

24
 1800

1600

1400

1200

1000

800

600

400

200

0
1 2 3 4 5

Interpretation

The table 4.2 and figure 4.1 show the amount of Short term loans. During the

year 2008-09 Short term loans amount was Rs.1183.38 lakhs, increased

1322.23, 1356.74, 1517.23 and 1774.13 lakhs respectively in the year of 2009-

10,2010-11, 2011-12, 2012-13. There was 11% increase in the year 2009-10.

14% increase in the year 2010-11. 28% increase in the year 2011-12 and 90%

increase in the year 2012-13.

25
Medium term loans of Pothukal Service Co-Operative Bank

Table: 4.3
Year Trend % Increase / decrease
Medium term loans (in
lakhs)
2011-12 24.34 100%
2012-13 12.15 49% 51%
2013-14 9.57 39% 61%
201415 12.56 51% 49%
2015-16 24.92 102% 2%

Figure 4.2

26
 25

20

15
Medium term loans
year
10

0
1 2 3 4 5

Interpretation

The table 4.3 and figure 4.2 show the amount of Medium term loans. During the

year 2008-09 Medium term loans were Rs.24.34 lakhs, decrease 2009 to 2012

and increasing 2012-13 24.92 lakhs respectively. There was 51% decrease in the

year 2009 to 2012. 2% increase in the year 2012-13.

Long termLoans of Pothukal Service Co-operative Bank

Table: 4.4
Long term
Increase /
Year loans (in Trend% decrease
lakhs)
2008-09 49.44 100% -

2009-10 32.13 64% 36%

2010-11 32.13 64% 36%
2011-12 45.10 91% 9%
2043=40 80.23 162% 62%

27
Figure: 4.3

90

80

70

60

50
Long term loans
40 Year

30

20

10

0
1 2 3 4 5

Interpretation

The table 4.4 and figure 4.3 show the amount of Long term loans. During the

year 2008-09 Long term loans was Rs.49.44 lakhs, decrease 2009-2012 and

increasing 2012-13 80.23 lakhs respectively. There was 64% decrease in the

year 2009 to 2012, 62% increase in the year 2012-13.

FINDINGS

The Pothukal Service Co-operative Bank Ltd accepts deposits and

provides loans members. From the analysis with special references to "Loans

and advances" the performances of the bank shows the following:-

From the year 2013 to 2008 the issue of Short term loans is higher than

medium term and long term loans.

28
 Bank charges high rate of interest as compared to the interest rate of

deposits.

There is no other system in the bank to evaluate the utilization of loan

taken by the members.

Interest rate of the bank loan is increasing year by year.

Total loans and advances of the bank were increasing year by year

The overall lending function of the bank is found satisfactory.

RECOMMENDATION

1. Bank should conduct a detailed study for find out good customers to take

loans
2. Make sure that there is through and clear utilization of loans for the purpose

they look for.

3. Take necessary steps to reduce charging of over interest.
4. The bank should renew its repayment schedule of loans for the

comfort of customers.

Bank should take measures to reduce the formalities in

connection with loan giving.

Bank gives more importance to micro finance.

Bank should concentrate and maintain effective relation with

customer.

Bank should give more variety banking facilities including

ATM.

29
 CONCLUSION

The Pothukal Service Co-operative Bank is functioning well in terms

of deposit mobilization. The bank accepts deposit from the public as

30
well as members and gives loans to them on personal securities and

securities of movable and immovable properties.

The bank charged moderate rate of interest on loans and advances.

The functioning of the bank depends upon the repayment rate of loans

by its members. The bank having a great role the overall development

of the Pothukal Panchayaths the functioning of the bank is also found

satisfactory.

31