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Finance is the life blood of trade, commerce and industry. Now-a-days, bank money acts as the
backbone of modern business. Development of any country mainly depends upon the banking
system.
The term bank is derived from the French word Banco which means a Bench or Money
exchange table. In olden days, European money lenders or money changers used to display
(show) coins of different countries in big heaps (quantity) on benches or tables for the purpose of
lending or exchanging.
A bank is a financial institution which deals with deposits and advances and other related
services. It receives money from those who want to save in the form of deposits and it lends
money to those who need it.
It is generally said that the word "BANK" has been originated in Italy. In the middle of 12th
century there was a great financial crisis in Italy due to war. To meet the war expenses, the
government of that period a forced subscribed loan on citizens of the country at the interest of
5% per annum. Such loans were known as 'Compare', 'minto' etc. The most common name was
"Monte'. In Germany the word 'Monte was named as 'Bank' or 'Banke'. According to some
writers, the word 'Bank' has been derived from the word bank.
It is also said that the word 'bank' has been derived from the word 'Banco' which means a banch.
The Jews money lenders in Italy used to transact their business sitting on banches at different
market places. When any of them used to fail to meet his obligations, his 'Banco' or banch or
banch would be broken by the angry creditors. The word 'Bankrupt' seems to be originated from
broken Banco. Since, the banking system has been originated from money leading business; it is
rightly argued that the word 'Bank' has been originated from the word "Banco'.
Today the word bank is used as a comprehensive term for a number of institutions carrying on
certain kinds of financial business. In practice, the word 'Bank' means which borrows money
from one class of people and again lends money to another class of people for interest or profit.
Bank is a place where the people deposits their money nd withdraws when needed
A bank or banker means an intitution or a person transacting the business of accepting for the
purpose of leanding or investment, of deposit of money from the customers, payable on demand
or otherwise and withrable by cheque, draft, payorder or otherwise. Anonymous
Meaning of bank:
A bank is the place where they accept deposits from people and lend loans and charge interest on
them and performs agency functions,and provide certain facilities like providing lockers
facilities and perform certain on the basis of its motive ...eg:IDBI BANK in india used to
provide financial facilities to industrial sector.. Anonymous
Definition of bank:
An establishment authorized by a government to accept deposits, pay interest, clear checks, make
loans, act as an intermediary in financial transactions, and provide other financial services to its
customers.
History of bank:
Banking in India originated in the last decades of the 18th century. The first banks were The
General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790;
both are now defunct. The oldest bank in existence in India is the State Bank of India, which
originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of
Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay
and the Bank of Madras, all three of which were established under charters from the British East
India Company. For many years the Presidency banks acted as quasi-central banks, as did their
successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon
India's independence, became the State Bank of India.
Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a
consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and
still functioning today, is the oldest Joint Stock bank in India.(Joint Stock Bank: A company
that issues stock and requires shareholders to be held liable for the company's debt) It was not the
first though. That honor belongs to the Bank of Upper India, which was established in 1863, and
which survived until 1913, when it failed, with some of its assets and liabilities being transferred
to the Alliance Bank of Simla.
When the American Civil War stopped the supply of cotton to Lancashire from the Confederate
States, promoters opened banks to finance trading in Indian cotton. With large exposure to
speculative ventures, most of the banks opened in India during that period failed. The depositors
lost money and lost interest in keeping deposits with banks. Subsequently, banking in India
remained the exclusive domain of Europeans for next several decades until the beginning of the
20th century.
Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire
d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862;
branches in Madras and Pondicherry, then a French colony, followed. HSBC established itself in
Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of the
British Empire, and so became a banking center.
The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 in
Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in
1895, which has survived to the present and is now one of the largest banks in India.
Around the turn of the 20th Century, the Indian economy was passing through a relative period
of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial
and other infrastructure had improved. Indians had established small banks, most of which
served particular ethnic and religious communities.
The presidency banks dominated banking in India but there were also some exchange banks and
a number of Indian joint stock banks. All these banks operated in different segments of the
economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign
trade. Indian joint stock banks were generally under capitalized and lacked the experience and
maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzon
to observe, "In respect of banking it seems we are behind the times. We are like some old
fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome
compartments."
The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi
movement. The Swadeshi movement inspired local businessmen and political figures to found
banks of and for the Indian community. A number of banks established then have survived to the
present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank
and Central Bank of India.
The fervour of Swadeshi movement lead to establishing of many private banks in Dakshina
Kannada and Udupi district which were unified earlier and known by the name South Canara (
South Kanara ) district. Four nationalised banks started in this district and also a leading private
sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian
Banking".
During the First World War (1914–1918) through the end of the Second World War (1939–
1945), and two years thereafter until the independence of India were challenging for Indian
banking. The years of the First World War were turbulent, and it took its toll with banks simply
collapsing despite the Indian economy gaining indirect boost due to war-related economic
activities. At least 94 banks in India failed between 1913 and 1918
RESEARCH METHODOLOGY:
PRIMARY SOURCE: Primary data means first hand information. I have meet bank manager
and able to get first hand information regarding services provided by the bank, loan and deposit
schemes and loan & interest rate on these schemes. Growth rate of bank etc.
I have also collected primary data through questionnaire which I have collected through
customers survey.
Questionnaire methods define the technique of data collection through properly drafted question
and request customers to fill the questionnaire properly.
SECONDARY SOURCE: These Secondary sources has played a vital role. A good amount of
data has been collected from various books, newspaper, articles, and pamphlets of banks A vital
role has been played by the internet and companies own websites.
Objectives of the study:
Primary objectives:
To find and analyse the potential market for starting new services
To analyse the customer expectation
Secondary objectives:
In modern time, the functions of a modem commercial bank are manifold. The functions of a
bank may broadly be divided into two parts.
Basic or primary functions of a commercial bank are very important in nature. These functions
provide t base of the whole operation of the bank. The basic functions of a commercial bank are
as
Accepting deposits is the most important function of all commercial banks. Deposit is the basis
of commercial banks' activities. In order to attract The general public to deposit their surplus
money in the bank, the bank offers to deposit money in any of the following accounts:
Current or demand account is one where the amount can be withdrawn at any time by the
depositor.
Saving account is suitable for non-trading and small income earners. Saving account helps in
mobilization of the saving of low income people. The commercial banks pay interest on this type
cf deposits.
Fixed deposit account is the account in which amounts are deposited for a certain fixed period of
time. The deposits cannot be withdrawn before the expiry of this fixed period. The longer the
period of deposits, the higher is the rate of profit.
(iv) Foreign Currency Account:
Foreign currency account is opened only in authorized branches. A foreign currency account
may be a foreign currency saving account or foreign currency term deposit account. Foreign
currency account in Pakistan can be opened in USA Dollar, UK Pound, German Mark, Japanese
Yen, etc. This account is exempted from all taxes and deduction. No income tax or Zakat is
deducted from this account.
The second important function of commercial bank is advancing loans to the individuals,
businessmen and government bodies. The loans are granted out of deposited money. Generally, a
commercial bank grants short-term loans.
(i) Overdraft:
Overdraft is a short-term loan granted by commercial banks to their account holders. Under this
type of loan, the customers are allowed to draw more than what they have in their current
account up to a certain limit. The excess amount overdrawn is called overdraft.
Cash credit is a very common form of loan granted by commercial banks to businessmen and
industrial units against the security of goods. The loan granted under this head is credited to
current account opened in the name of borrower. The borrower can withdraw money through
cheques according to his requirement. The interest is charged on the amount actually withdrawn
by the borrower.
(iii) Loans:
Commercial banks grant loans for short and medium-term to individuals and traders against the
security of movable and immovable property. The amount of loan is credited to the borrower's
account. Interest is charged on the entire loan sanctioned.
Banks provide short term lean to the businessmen by discounting bills of exchange. Discounting
the bills of exchange means the arrangements of making payments before maturity of bills of
exchange. The payment made by the bank to the holder of bill of exchange before its maturity is
the amount of loan. The discount charged is the earning of the bank.
The secondary functions of commercial bank can be classified under the following heads.
A.AGENCY FUNCTIONS
The banks render important services as agent on behalf of their customers in return for a small
commission. When banks act as agent, law of agency applies. The agency functions or services
of bank are as follows:
Commercial banks collect the cheques, bills of exchange, etc, on behalf of their customers.
Banks collect local and outstation cheques and bills of exchange through clearing house facilities
provided by the central bank,
(ii) Collection of Income:
The commercial banks collect dividends, interest on investment, pension and rent of property
due to the customers. When any income is collected by the bank, a credit voucher is sent to the
customer for information.
The banks make payment of insurance premiums, rent, trade subscription, school fee and other
obligation of the customers. When any expense is paid by the bank, a debit voucher is sent to the
customer for information.
The banks carry out purchase and sale of securities on behalf of their customers. Banks do it well
because they are aware of the market conditions.
The banks act as trustee to manage trust property as per instructions of property owners. Banks
are required to follow the terms and conditions of trust deed.
Commercial bank sometimes acts as an agent on behalf of its customers at home or abroad in
dealing with other banks or financial institutions.
Sometimes, customer may order his bank to do something on his behalf regarding the conduct of
his account. This written order is called standing instruction. The bank being the agent of its
customer obeys the standing instructions.
Commercial bank acts as tax consultant to its client. The commercial bank prepares general sales
tax return, income tax return, etc. Tiles the same with tax authorities.
B.GENERAL UTILITY FUNCTIONS:
Commercial bank performs different utility functions for their customers. When bank performs
utility functions, it does not act as an agent of the customers. The general utility functions are as
follows:
Commercial banks provide lockers facilities to its customers for safe custody of Jewelery, shares,
securities and other valuables. This has minimized the risk of losing due to theft.
Bank issues traveler's cheques to the customers for traveling in and outside the country.
Commercial banks deal in foreign exchange. This enables the individuals and businessmen to
obtain foreign currency in exchange of their home currency. For dealing in foreign exchange,
commercial banks have to obtain permission from the central bank.
Commercial banks provide facilities for the transfer of money to any place within and outside
the country. The funds are transferred by means of draft, telephonic transfer, electronic transfer
etc.
A commercial bank finances foreign trade by accepting foreign bills of exchange. Bank also
issues letter of credit on behalf of its customers to facilitate foreign trade. According to Sir John
Poget:
Commercial banks collect and provide trade information and tender advice to its customers about
financial mafters. Issues credit cards: Banks issue credit cards to their trustworthy and valued
customers. This facilitates the customers to pay for their necessities of life.
The commercial banks act as Modaraba and leasing companies under the provisions of
Modaraba Companies Ordinance, 1980.
Commercial banks underwrite or purchase Participation Term Certificate (PTCs), Term Finance
Certificates (TFCs) and Modaraba Certificates. This helps the companies to raise their capital.
Commercial banks answer reference letters regarding the financial standing and business
reputation of customers. Banks provide this information with great care and utmost secrecy.
C.MISCELLANEOUS FUNCTIONS:
Commercial banks provide facilities for the collection of utility bills from general public on
behalf of government bodies. This facilitates the public to pay utility bills in time.
Commercial banks collect Zakat from their account holders and deposit the same into Central
Zakat Fund, according to Zakat and Usher ordinance - 1980.
The commercial banks provide free Hajj sendees to the intending pilgrims. Banks receive Hajj
applications. Banks also facilitate to form Hajj groups. Banks make necessary arrangements for
the training of intending pilgrims,
(iv) Qarz-e-Hasna:
The commercial banks provide Qarz-e-Hasna to deserving patients for medical treatment and to
students for higher studies within the country and abroad. The Qarz-e-Hasna is refund Ale in
easy installments,
ATM Cards
Credit Cards
Electronic transfer of money
Types of banks:
Saving banks are established to create saving habit among the people. These banks are helpful
for salaried people and low income groups. The deposits collected from customers are invested
in bonds, securities, etc. At present most of the commercial banks carry the functions of savings
banks. Postal department also performs the functions of saving bank.
Commercial banks are established with an objective to help businessmen. These banks collect
money from general public and give short-term loans to businessmen by way of cash credits,
overdrafts, etc. Commercial banks provide various services like collecting cheques, bill of
exchange, remittance money from one place to another place.
In India, commercial banks are established under Companies Act, 1956. In 1969, 14 commercial
banks were nationalised by Government of India. The policies regarding deposits, loans, rate of
interest, etc. of these banks are controlled by the Central Bank.
Industrial / Development banks collect cash by issuing shares & debentures and providing
long-term loans to industries. The main objective of these banks is to provide long-term loans for
expansion and modernisation of industries.
In India such banks are established on a large scale after independence. They are Industrial
Finance Corporation of India (IFCI), Industrial Credit and Investment Corporation of India
(ICICI) and Industrial Development Bank of India (IDBI).
Land Mortgage or Land Development banks are also known as Agricultural Banks because
these are formed to finance agricultural sector. They also help in land development.
In India, Government has come forward to assist these banks. The Government has guaranteed
the debentures issued by such banks. There is a great risk involved in the financing of agriculture
and generally commercial banks do not take much interest in financing agricultural sector.
Indigenous banks means Money Lenders and Sahukars. They collect deposits from general
public and grant loans to the needy persons out of their own funds as well as from deposits.
These indigenous banks are popular in villages and small towns. They perform combined
functions of trading and banking activities. Certain well-known indian communities like
Marwaries and Multani even today run specialised indigenous banks.
Every country of the world has a central bank. In India, Reserve Bank of India, in U.S.A, Federal
Reserve and in U.K, Bank of England. These central banks are the bankers of the other banks.
They provide specialised functions i.e. issue of paper currency, working as bankers of
government, supervising and controlling foreign exchange. A central bank is a non-profit making
institution. It does not deal with the public but it deals with other banks. The principal
responsibility of Central Bank is thorough control on currency of a country.
In India, Co-operative banks are registered under the Co-operative Societies Act, 1912. They
generally give credit facilities to small farmers, salaried employees, small-scale industries, etc.
Co-operative Banks are available in rural as well as in urban areas. The functions of these banks
are just similar to commercial banks.
Hong Kong Bank, Bank of Tokyo, Bank of America are the examples of Foreign Banks working
in India. These banks are mainly concerned with financing foreign trade.
Consumers bank is a new addition to the existing type of banks. Such banks are usually found
only in advanced countries like U.S.A. and Germany. The main objective of this bank is to give
loans to consumers for purchase of the durables like Motor car, television set, washing machine,
furniture, etc. The consumers have to repay the loans in easy installments.
Importance of banks:
Bankers play very important role in the economic life of the nation. The health of the economy is
closely related to the soundness of its banking system. Although banks create no new wealth but
their borrowing, lending and related activities facilitate the process of production, distribution,
exchange and consumption of wealth. In this way they become very effective partners in the
process of economic development. Today modern banks are very useful for the utilization of the
resources of the country. The banks are mobilizing the savings of the people for the investment
purposes. If there would be no banks then a great portion of a capital of the country would
remain idle.
A bank as a matter of fact is just like a heart in the economic structure and the Capital provided
by it is like blood in it. As long as blood is in circulation the organs will remain sound and
healthy. If the blood is not supplied to any organ then that part would become useless, so if the
finance is not provided to Agricultural sector or industrial sector, it will be destroyed. Loan
facility provided by banks works as an incentive to the producer to increase the production.
Many difficulties in the international payments have been over come and volume of transactions
has been increased. Cheques, drafts bills of exchange and letters of credit are very important
instruments of the banks. The banks collect these instruments drawn on banks in other cities or
countries and proceeds according to the accounts of the customer's
Characteristics / Features of a Bank:
1. Dealing in Money
Bank is a financial institution which deals with other people's money i.e. money given by
depositors.
A bank may be a person, firm or a company. A banking company means a company which is in
the business of banking.
3. Acceptance of Deposit
A bank accepts money from the people in the form of deposits which are usually repayable on
demand or after the expiry of a fixed period. It gives safety to the deposits of its customers. It
also acts as a custodian of funds of its customers.
4. Giving Advances
A bank lends out money in the form of loans to those who require it for different purposes.
A bank provides easy payment and withdrawal facility to its customers in the form of cheques
and drafts, It also brings bank money in circulation. This money is in the form of cheques, drafts,
etc.
A bank provides various banking facilities to its customers. They include general utility services
and agency services.
9. Connecting Link
A bank acts as a connecting link between borrowers and lenders of money. Banks collect money
from those who have surplus money and give the same to those who are in need of money.
A bank's main activity should be to do business of banking which should not be subsidiary to any
other business.
A bank should always add the word "bank" to its name to enable people to know that it is a bank
and that it is dealing in money.
Company profile:
Abhyudaya Co-op. Bank Ltd., one of the leading Urban Co-operative Banks in India, in its
outlook and approach, has the objective of progress and prosperity of all. From a humble
beginning in January 1964 as a Co-operative Credit society with a share capital of a merely
Rs.5,000/- held by 83 members, today Abhyudaya Co-op Bank has become one of the large
Urban Co-operative Banks with a "Scheduled Bank" status. The Bank has been converted into a
”Multi-State Scheduled Urban Co-op. Bank " w.e.f. 11th January, 2007. The area of operation
which was restricted to the State of Maharashtra has now been extended to Karnataka & Gujarat
State. Currently, the capital base of the bank stands at Rs. 72 Crore and Reserves at Rs.735.11
The bank has 1,38,000 members and more than 14 lakh depositors. The Bank has seen a
tremendous growth in deposits. The deposits of the bank are over Rs. 5260.63 Crore as on
31.03.2011, which were Rs. 4170.62 Crore as at the end of the financial year 2009-2010. The
loans and advances stood at Rs. 3452.66 Crore as on 31.03.2011. The bank had posted a “Net
Profit of Rs. 77.96 Crore as on 31.03.2011”. The growth rate of the bank compares well with
that of others in the sector. The Bank has maintained a steady growth. The bank has been paying
dividend @ 15% to its members. The Bank has launched different loan schemes tailor-made to
suit the needs of various customers. The schemes aim at providing loans for purchase or
construction of residential premises, repair/renovation of house property, purchase of car,
seeking higher education and for purchase of household consumer durable. One of the loan
schemes, viz. "Udyog Vikas Yojana" is specially designed for the benefit of small
entrepreneurs and businessmen. The procedure for sanctioning of loans under the schemes has
been simplified and relaxed with a view to benefit the customers and facilitating speedy sanction
of loans. The Bank has total 105 branches including a Mobile Bank at Navi Mumbai. Bank is
committed to spread network of branches throughout the State and provide much needed banking
services to the population, which has been deprived of the banking facilities.
Innovative Banking is another area of operation that Abhyudaya is currently focusing on for a
sustainable long term growth. The Bank has always endeavored for providing excellent customer
service with the help of the latest technology. The Bank has provided fully computerized
services to its valued clients. Bank is offering 11 hours fully computerized services and 7
days working at 18 branches and 24 hours ATM service at 85 branches
Structure of co.operatives bank in India:
Credit cooperatives are the oldest and most numerous of all the types of cooperatives in India.
The cooperative credit institutions in the country may be broadly classified into urban credit
cooperatives and rural credit cooperatives. There are about 2090 urban credit cooperatives and
these societies together constitute for about 10 percent of the aggregate banking business and
therefore regarded as an important segment of the banking system. The urban credit cooperatives
are also popularly known as Urban Cooperative Banks. The rural credit cooperatives may be
further divided into short-term credit cooperatives and long-term credit cooperatives. With
regard to short-term credit cooperatives, at the grass-root level there are around 92,000 Primary
Agricultural Credit Societies (PACS) dealing directly with the individual borrowers. At the
central level (district level) District Central Cooperative Banks (DCCB) function as a link
between primary societies and State Cooperative Apex Banks (SCB). It may be mentioned that
DCCB and SCB are the federal cooperatives and thus the objective is to serve the member
cooperatives. As against three-tier structure of short-term credit cooperatives, the long-term
cooperative credit structure has two tiers in many states with Primary Cooperative Agriculture
and Rural Development Banks (PCARDB) at the primary level and State Cooperative
Agriculture and Rural Development Bank at the state level. However, some states in the country
have unitary structure with state level cooperative operating with through their own branches and
in one state an integrated structure prevails. The organizational structure of the credit
cooperatives in India is illustrated in chart I. Interestingly, under the Banking Regulation Act
1949, only State Cooperative Apex Banks, District Central Cooperative Banks and select Urban
Credit Cooperatives are qualified to be called as banks in the cooperative sector. In other words,
only these banks are licensed to conduct full-fledged banking business.
The Co-operative Banks function in India on State Levels. Most of the Rural Co-operative banks
function on Three-Tier and the Urban banks function on Two-Tier. At the National Level there is
NABARD to organise the Agricultural Co-operatives. Also there is National Co-operative Union
of India, as an apex instituion at National Level.
The Reserve Bank of India controls the Co-operative Banks that falls under the Banking
Regulation Act of 1949.
What is co.op bank:
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...).
Co-operative banks differ from stockholder banks by their organization, their goals, their values
and their governance. In most countries, they are supervised and controlled by banking
authorities and have to respect prudential banking regulations, which put them at a level playing
field with stockholder banks. Depending on countries, this control and supervision can be
implemented directly by state entities or delegated to a co-operative federation or central body.
Even if their organizational rules can vary according to their respective nation legislations
co.operative banks share common features :
1.Customer's 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 maximise 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
admit non-member clients to benefit from their banking and financial services
2.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".
3.Profil 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-
operative's products and services by each member, or through an interest or a dividend, which is
related to the number of shares subscribed by each member.
Co-operative banks are deeply rooted inside local areas and communities. They are involved in
local development and contribute to the sustainable development of their communities, as their
members and management board usually belong to the communities in which they exercise their
activities. By increasing banking access in areas or markets where other banks are less present -
SMEs, farmers in rural areas, middle or low income households in urban areas - co-operative
banks reduce banking exclusion and foster the economic ability of millions of people. They play
an influential role on the economic growth in the countries in which they work in and increase
the efficiency of the international financial system. Their specific form of enterprise, relying on
the above-mentioned principles of organization, has proven successful both in developed and
developing countries
History
Abhyudaya co.op bank established in the year 1964in the form of credit society which is
converted into co-operative bank in 1965 Then in the month of September 1988 bank had been
given a schedule bank category by Reserve Bank Of India (RBI) .On 11th of January 2007 bank
became multinational schedule co .op bank registered with central cooperative Registrar New
Delhi
Abhyudaya co.op bank is having 111 branches at Mumbai, Pune,Navi Mumbai, Riagad district ,
Nagpur ,Aurangabad, Nasik, Nanded Dist. In Maharashtra and in Gujarat state –Baroda,
Ahemadabad etc and in Karnataka state
The main objective of bank is to collect money from public andto give various types of loans
and advances to its members and simuktanesouly providing various types of services such as :
Atm facility
Locker facility
Money transfer
Issue D.D/P.O
L.I.C
a) To serve as a State Co-operative Bank and as a balancing center in the State of Karnataka for
registered co-operative societies
b) To raise funds by way of deposits, loans, grants, donations, subscriptions, subsidies etc. for
financing the members by way of loans, cash credits, over-drafts and advances
c) To develop, assist and co-ordinate the member DCCBs and other Co-operative Societies and
secure financial assistance for them
d) To arrange/hold periodical Co-operative Conferences of the DCCBs and other members of the
bank and to take action for the growth & development of the Co-operative Credit Movement.
e) To participate in financing Co-operative and other institutions who are members of the bank,
directly or through consortium of Bankers
f) To participate in the schematic lending and to provide loans for which refinance facility is
available with term lending institutions.
g) To arrange for the inspection and supervision of the affiliated DCCBs and other Co-operative
Societies and guide them in their working
h) To buy and sell securities for the legitimate investment of surplus funds and act as agents for
buyers and sellers of securities of Central/State
i) To carry on general business of Banking and other banking activities to the members and
customers
j) To purchase, acquire or raise or otherwise obtain moveable or immoveable property for the
own use of the Bank and also to dispose them of when not required
m) To manage, sell or release any property which may come into the possession of the bank in
satisfaction of or part satisfaction of any of its claims
n) To promote economic interest of the members of the Bank in accordance with the principles
of Cooperation.
o) To do such other things as are incidental or conducive to the promotion and advancement of
the business of the Bank;
Our special features:
3.1.00% additional intrest on deposits for senior citizens & co.op socities having
deposits of 12 months and above.
5.We have cheque drawing and cheque collection on major cities all over India
7.No TDSfor deposits of members (shareholders) and for deposit under Recurring
Deposit
Tele banking
Franking
Lockers
Foreign exchange service
Xpress money global transfer service
Bank policy on collection of cheques/instruments
Demat service
Pancard service
Credit card
Debit card
Achievements of Abhyudaya Bank: The following table shows the banks
achievements
Rs in crores
Mission Statement:
A “Mission” to continuously strive for synergy between technology, systems and human resource so as to
provide products and services that meet the quality, performance and aspiration of its vast clientele. For this, we
maintain highest standards of ethics and societal responsibilities constantly innovate products and processes and
develop teams that keep the momentum going to take the Bank to excellence in the new millennium.
Vision Statement:
A “vision” of relentlessly pursuing our aim and objective of making the bank emerge as a luminous stand in the
tapestry of India’s Banking System. We will strive to mould the Abhyudaya Bank intoagile and resilient
Organisation by adopting the fine-tuned customer relationship, management strategies, operations based on asset-
liabilityand risk management systems, upgradation of required technology capabilities and developing the human
resource to meet the challenges of the paradigm shift. Our vision seeks to serve, as our Chairman has aptlyput it, as
a reference point for making strategic decisions, conveying benefits to stakeholder, articulating competitive
advantage and underscoring the driving principles of Organisation
Highlights of Loans and advances:
QID: Quarterly Interest Deposit Scheme wherein interest is paid on quarterly basis at the
interest rate applicable for term deposit and deposit is continued for agreed period.
MID: Monthly interest plan wherein interest is paid on monthly basis at discounted rate
applicable for term deposit and deposit is continued for agreed period.
RECCURING DEPOSIT: Monthly installment is fixed and deposited for agreed period
and interest is calculated on quarterly basis applicable for term deposit paid on maturity. TDS
is not applicable for the interest paid on deposit amount. Deposit of Rs910 /- p . m for 84
months can make your child a lakhpati under this scheme.
FDR: Fixed Deposit Receipt is issued for deposit of short term period i .e for 15 days up to
365 days. Interest rate applied as applicable for term deposit.
FLXDP: Quarterly reinvestment plan having benefit of availing instant cash credit upto
90% of the deposit amount.
ATSS: Special tax saving scheme to avail benefit upto Rs1 lakh U/S 80 C of Income Tax
act with an attraction of more interest compared to term deposits of our bank & various tax
saving scheme available in the market.
Schemes offered by Abhudayaco.op bank:
A. Loan scheme
B. Deposit scheme
Loan Scheme :
1.PERSONAL LOAN
Purpose :
Eligibility :
Salaried Persons :
Repayment :
Upto 60 installments
Sureties :
Upto Rs. 50,000/- one surety with net salary of Rs. 7,000/- and above
Above Rs. 50,000/- to Rs. 2,00,000/- Two Sureties with net salary of Rs. 6,000/- and above.
Upto Rs. 25,000/- One surety with net salary of Rs 7000/- and above
Aboe Rs. 25,000/- upto Rs. 2,00,000/- Two Surety with net salary of Rs. 6000/- and above.
(B) If the borrower is a businessman and employees of other organization with good
repaying capacity and owning a house :
2.HOUSING LOAN
Purpose :
Purchase of new flat and construction of house or purchase of old flat / house including
extension to existing flat / house.
Maximum Amount :
Repayment :
Sureties :
1. For loans upto Rs. 20.00 Lakh :- One surety with net Income / Salary above Rs. 10,000/-
per month.
2. For loans above Rs. 20.00 Lakh : Two Sureties, with Net Income / Salary above Rs.
10,000/- or per month.
3. One Surety with Net Income / Salary above Rs. 20,000/- per month.
For purchase of flat in Building which is more than 15 years old, loan will be considered only if
it is certified by the Structural Engineer that the residual life of the building is more than 20
years and the building is in good condition.
Share Amount :
Upto Rs. 20.00 Lakh : 1% of the Loan amount sanctioned or Rs. 2,500/-
3.EDUCATIONAL LOAN
Maximum Amount :
Students Eligibility : An Indian National, who has secured admission to eligible course. The
loan will be sanctioned to the parents of the student and the student will be Co-Borrower.
Eligible Course :
Computer Certificate courses in reputed institute accredited to the Department of Electronics and
for Pilot Training.
B.Studies Abroad :
For job oriented Professional / Technical / Medical courses offered by reputed Universities.
MCA, MBA, MS etc. Courses conducted by CIMA, London, CPA in USA etc.
Fees / Exam fees / Cost of Books / Equipments / Uniform etc. / hostel Expenses / Caution
Deposit and Travel Expenses / Passage for student studying abroad will also be considered.
Eligibility :
Repayment :
Sureties :
Unsecured Loans upto Rs. 4.00 Lakh : Two sureties net salary / income above Rs. 10,000/- p.m.
Secured Loans above Rs. 4.00 Lakh : One surety net salary / income above Rs. 10,000/- p.m. and
Collateral security 100% of the sanction limit in the form of Equitable Mortgage of residential
flat and / or pledge of tangible securities such as NSC / LIP / FDR / RBI Bonds equivalent to at
least 100% of the sanctioned limit.
Share Amount :
1% of the Loan amount sanctioned, subject to min. Rs. 1,000/- & Max.Rs. 2,500/-
Service Charges :
4.MORTAGELOAN
Purpose : The loan amount can be used for any purpose but shall not be used for purposes
prohibited by law. The property should be in the name of Applicant or co-applicant of family
member.
Maximum Amount : Rs. 20,00 Lakh for Personal use Rs. 100.00 Lakh to business enterprises
and self employed and professional for use in business.
Eligibility :
Amount of loan will depend on repaying capacity / DSCR / Loan to the extent of 60% of the
present value of the property.
Sureties :
Service Charges :
Share Amount :
Eligibility : Salary after loan EMI amount 40% of the Net Income subject to minimum 5000/- &
Max 20,000/-
Eligibility : Salary after loan EMI amount 40% of the Net Income subject to minimum 5000/- &
Max 20,000/-
(b) Rs. 15.00 Lakh for Buses not more than 5 years old
Sureties :
One Surety (salaried family member to be considered) with Net Salary / Income of Rs. 10,000/-
and above.
Service Charges :
Share Amount :
Purpose : The loan amount can be used for any purpose but shall not be used for the purposes
prohibited by law.
Sureties : NIL
Service Charges : @0.6% of loan amount subject minimum Rs. 100/-, Maximum Rs. 500/-
Other Charges :
Nominal Membership
Designated Branches : Now Gold Loan facility is available in almost all Branches.
Purpose :
The Loan / Overdraft amount can be used for any purpose but shall not used for purposes
prohibited by law.
Maximum Amount :
Repayment :
Max. 60 installments
3 years & Pledge of NSC / KVP / RBI Bonds or of LIC Policies (Own).
Sureties : NIL
Service Charges :
(a)Loans – Nil
Deposit Scheme :
Staff members
Initial Deposit for opening Saving Bank Account & minimum balance to be maintained in the
account.
INTEREST :
Interest will be calculated @ 4% p.a. on the basis of Daily Product and will be credited to the
account at half yearly.
PASS BOOK :
Pass book will be supplied to every savings bank depositor showing the number of his account
name and address and 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
REQUIREMENTS FOR OPENING ACCOUNT :
GENERAL :
1) Penalty at the rate prescribed will be debited to the account on quarterly basis for non
maintenance of prescribed minimum balance.
2) 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.
3) Account not in operation for more than two years will be treated as inoperative / dormant
account.
4) Bank reserves the right to alter, amend , rescind the rules from time to time.
Bank has introduced following New Products under Saving scheme with added features :-
Individual
Partnership Firm
Public Corporations
Trust
Initial Deposit for opening Savings Bank Account & minimum balance to be maintained in the
account : Rs. 3000
Statement of Account :
Benefits :
For the facility of cash withdrawal upto Rs. 15,000/- in a day from account with our any branch
at anytime of the day through our 35 ATMs.
ATM card is issued free of charge at present, No. ATM card is however issued to Cash Credit
A/c holder.
7) Copy of Certificate for commencement of business (this is required for Public Limited
Company)
8) Partnership Deed
9) Trust Deed
Bank has introduced following New Product under Current Deposit scheme with added features
& Benefits :-
General Remarks :
(1) Original documents should be produced for verification at the time of opening Account.
(2) Penalty at the rate prescribed will be levied every month for non-maintenance of
minimum balance.
(3) Statement of Account will be provided every month.
(4) Bank reserves the right to alter, amend, rescind the rules from time to time.
Charges:
Option to transfer the account in any other eligible scheme of SB account at any moment
without any charges
All other charges are applicable as per regular SB accounts
Benefits:
Monthly 1 Cheaque Book of 20 leaves free ( except for issuance of post Dated Cheques )
Free RTGS/NEFT facility for any amount (Max.25 instuctions p.a.)
Free issuance of our banks pay order ( maximum 25 pay orders free per annum)
No collection charges for outstation cheques except postage
Immediate credit for outstation cheque up to Rs20 Lakh)
50%concession on service charges on Education loan for children ,loan private car &
Housing loan (loan up to Rs.20 Lakh)
No charges for signature verification
While opening New Locker A/c ,50%concession in service charges.
Free access to locker ( max 50 times in a year)
Any Branch Banking allowed up to Rs.1,00,000/-per day
Free ATM Card ,ECS Facility, Standing Intsruction Facility,Speed Clearing Facility,
SMS Banking,Tele Banking,Any Branch Banking & Net Banking Facility
Minimum Balance:
Charges:
Option to transfer the account to regular CD account at any moment without any charges
All other charges are applicable as per regular CD accounts
Benefits:
Type 1:
Type 2:
Studentswho have completed 14 years of his /her age and is able to sign uniformly, may
be allowed to open saving bank accopunt in his /her own name or along with their
natural guardian
Minimum Balance:
Other Benefits :
1. Expansion of Business
The Bank would , inter alia, resort to the following measures to expand and improve its business
:
The latest tred of consolidation of the Urban Banking Sector through the process of Merger &
Amalgamations has gathered momentum over the past one year since the stronger banks have
found this as an inorganic growth route. The RBI has also announced n the Annual Policy
Statement for the year 2007-08 relaxation in the Branch Licensing Policy for UCBs. The RBI has
followed up this by prescribing the eligibility criteria for opening additional branches / extension
counters not exceeding 10% of their existing branch network. In the light of this, the Abhyudaya
Bank has formulated a Merger & Acquisition Policy, with the approval of the Board, the salient
features of which are as under :
As on March 31, 2006, the CRAR of the Bank stood at 39% which declined to 22% due to
among other things, merger of the Pune based citizen co-operative Bank during the year 2006-07
and absorption of its liabilities. With the proposed merger of the Karnataka – based Janatha Co-
op. Bank and the Gujarat based Shree Krishna Sahakari Bank Ltd., the CRAR is likely to decline
further to around 15%. As a prudent policy, it would not be advisable to let the CRAR decine
below 12% (the prescribed minimum being 9%) and hence, the Bank may be inclined to
consider a few more proposals for merger.
As for the cost of merger, , which the Bank could sustain, without making a significant dent on
its profits, the following limits may be set, vix., @ Rs. 1 crore per Metropolitan Branch @ Rs. 75
lakhs per urban co-operative Bank and @ Rs. 50 lakhs for Semi-urban bank in the form of
negative networth.
2)Branch Expansion :
In pursuance of the RBI’s liberalized branch licensing policy, the Abhyudaya Bank may get
licenses for five additional branches during the next two years or so. With the merger of the
Janatha Coop. Bank with 6 branches and the Shree Krishna Coop. Bank with single branch, the
total branch network of the Abhyudaya Bank may augment to 65 branches till the middle of
2008. This should be followed up by the policy of Consolidation of the existing branches,
including shifting / relocation of some of the branches, for some time. This Policy may come up
for a review in 2009, paving the way for further expansion, say additional 34 branches up to the
year 2014, taking the total number to 100.
In this context, the Bank could go in for all India status expanding its coverage to other nearby
states like Goa, Madhya Pradesh, in addition to entering into other areas in Karnataka and Gujrat
infested predominantly with people hailing from Maharashtra or their close relations.
The Mergers & Acquisitions can become a real success and profitable , if there is a meeting of
minds and souls between the staff of the Abhyudaya Bank and of the bank merged. This process
can be hastened by intensive training both in functional and behavioral science area.
Sub-Committee: It is only appropriate that mergers & acquisitions proposals are examined by a
Sub Committee.
The Human Resources Systems deal with attracting, engaging, developing and keeping skilled
individuals . These systems define how an organization recruits, involves, trains, challenges and
rewards ts employees in the pursuit of its strategic intent. The ability to manage its human
resources effectively is consistently identified as a critical element to an organisation’s success .
There is recognition that the workforce can be a source of competitive advantage. Indeed, many
regard human capital as the only true differentiator. The real challenge before the HRD
Departments is to motivate the employees to put in their best performance and contribute
meaningfully and optimally to improve the efficiency and effectiveness of the organsiation.
. IV. Focus on Information TechnologyIf it was the onset of reforms in early 90s, that initiated
changes in banking scene, it is the use of advanced information Technology (IT) that has almost
completely changed the look and feel of banking. The most important, yet not so visible, impact
of IT on banking has been in reducing the back office routine and making the accounting
function of the banks more efficient.
A Significant development in this regard is the adoption of Core Banking Solution (CBS) by
banks, including the Abhydaya, Bank, which has made operations in the account possible from
wherever the customer wants as against the previous compulsion to go to the branch where the
account was opened . As a consequence of adoption of IT and CBS, banks have been able to
offer a number of new services and produces, including ATM. A prima facie view of the IT
strategies of banks seem to be to indicate that smaller customers will be handled through
technology and branches will spend more time on high net worth individuals and businessmen.
The impact of technology on the financial sector has been profound. Starting from Mainframe
computers for facilitating inter-office reconciliation , the technology transformation journey has
taken us through automated ledger posting Machines, back office automation, full branch
computerization and now to core banking . Centralised online Realtime Environment Banking
enables Anywhere banking Core Banking has brought in a paradigm shift in the way we have
been doing banking operations. It is a great leap forward in the technological transformation
process at the Abhyudaya Bank, have to put in place roubust disaster recovery plan and business
continuity plan in order to manage the risk arising out of the architecture of core banking system.
To leverage core banking to bring in the desired level of efficiency in operations, key process
have to be aligened with the needs of the core banking application and its architecture. Two of
the main issues, arising in this context are extensive training to the staff to make use of the new
equipment, and familiarizing the customers with the new facilities offered by the core banking
solution . Unless customers are educated to make use of anywhere banking, ATMs and internet
banking, we cannot hope to reduce the transaction cost to the desired extent and their return on
the technology investment will remain sub-optimal. Successful handling of these issues will be a
win-win situation for us as well as our customers. The Abhyudaya Bank could considerably
reduce its cost of operations and customer will have more convenience, time saving and better
control over their accounts.
Against the backgroup of increasing resort to Mergers & Amalgamation one critical area that
needs careful consideration at the time of mergers is integration of different technology
platforms and software which not only have process and control implications but may involve
substantial costs in terms of money and time and retraining of personnel. Technological infusion
in the Abhyudaya Bank will be focused towards meeting the following business challenges of
being able to :
Offer a broader range of complex products and services as soon as possible viz., banking
insurance mutual funds, etc.
Deliver these products and services to the customers in the quickest possible way through
multiple channel options.
Anticipate and meet customer demands through massive Data Warehousing and CRM.
Manage security
Set benchmarks and standards for implementation of new technologies processes and best
management practices.
The new environment will require a complete paradigm shift – new sstyles of conducting
business with technology, people and processes, with wafer-thin margins, increasing
competition, disloyal customer base and an uncertain future – the management of risk will be of
primary concern while carrying out Bank’s business plans.
Create a satisfied customer base using latest technology thereby propelling business growth.
Provide, wherever feasible, the select remaining branches with ATM facility.
To have off-site ATMs at important locations visited by a majority of public including our
customers, eg. Railway Stations, Malls, Markets, etc.
To connect our ATM network with those of other banks to have a shared network of ATMs.
Provide value added services like payment of electricity bills, telephone bills, booking of
reservation tickets etc. at these ATMs.
Provide fund transfer through delivery channels like ATM, Kiosks and other delivery channels.
Adopt and latest technology delivery channels like ATM, Kiosks and other delivery channels.
Adopt the latest technology which suits easy and better customer service and growth of the Bank.
Provide tele-banking facility to all customers and internet banking facility to a select customers.
To look out for data mining / data warehousing opportunities for the Bank.
In the context of growing competition among banks to attract and retain customers, the quality
and promptness of customer service with utmost courtesy has assumed critical importance. The
Bank proposes to undertake a Survey among its first top 100 customers to ascertain feedback
from them about the quality of service, the area whether they seek further improvements,
including simplication and refinements of systems and procedures etc., In the light of the
findings of the Survey, appropriate measures will be taken to bring about the necessary changes,
so as to improve the Bank’s image and ensure customer delight. Such Surveys will be conducted
at periodical intervals to keep up the quality of service in tune with the changing times.
The Bank is yet to derive the optimum benefits of the introduction of the Core Banking Solutions
and the IT in the Bank. The cell should be adequately manned and should function like a Call
Centre and should attend to clients enquiries, besides monitoring loan accounts. They should
contact defaulting loanees immediately before the relative account is slipped to NPA.
The role of the internal Audit & Inspection Machinery in ensuring smooth running of the Bank
and its branches on sound lines cannot be overemphasized. There is considerable scope to
improve the efficiency of the inspection & audit by giving greater weightage to the areas where
risk is higher, e.g. risk to Bank’s reputation, fraud-prone areas and other sensitive areas of
Bank’s functioning. New and evolving techniques of inspection and audit considering the
technological advances may have to be adopted . The banks being trustees of public funds.
Vigilance, too, has assumed lot of importance as a matter of public policy.
Security climate throughout the country has undergone a sea change due to terrorist attacks
involving loss of precious human lives and public property. The banks are also more prone to
thefts, dacoities, etc. due to the treasures handled by them. This highlights the critical need for
paying utmost attention to guarding Bank’s treasure and premises by tightening security
arrangements and increasing security awareness, checks, etc. The Bank has been keeping the
subject of security constantly under its review and for this purpose, has appointed a special
officer (security) to advise the Bank on various security measures. Training is being arranged for
the security staff on a priority basis. All the staff have also been issued identity Cards which they
are expected to wear on their person and produce for inspection when ever needed.
Roles and Responsibilities of other departments in Bank’s quest towards
achievement of various tasks / targets envisioned under Bank’s vision
Treasury Department
Treasuries have and will continue to be the heart of banking activity in tomorrow’s
environment. The Integrated Treasury will look after resource planning, allocation of funds,
capital charge, risk capital charge, transfer pricing etc. in a dynamic environment, constantly
identifying market and interest rate risks and preparing strategies to mitigate them. Those who
can afford could have separate set-up for research risk identification and risk management
purposes.
It is customary for the Bank to draw up an Annual performance Budget at the beginning of
the year to set targets for business development by indicating goals for deposit mobilization,
expansin of loans and advances, regulation of NPAs and recovery of NPAs and finally, to
achieve optimum profitability. Profitability being the key determinant for assessing the
success of an enterprise and lending being the principal business of a bank, the volume and
quality of loan assets determines the success of the bank. In order, therefore to achieve the
goals set for maximizing profits, it is essentialthat a clear-cut Credit Policy or Loan Policy is
laid down, which inter alia, highlights the objectives, priorities of exposure and ceilings on
lending to various categories of borrowers / industries / business etc., appraisal standards
norms and procedures security considerations and margins to be observed for the facilities
granted, disbursement procedures, documentation and repayment conditions, renewal
procedurs, etc. The Board, accordingly finalises a Credit Policy annually based on the
review of performance of the previous year, policy objectives and goals adopted for the
current year, the regulatory stipulations, directions and advice issued by the RBI, prevailing
market realities and trends in the banking industry in general . The Board has since approved
the credit policy for 2007-08 formualted by the Loans & advances department and circulated
among all concerned for implementation. It has been emphasized that more specific attention
should be given to the achievement of policy objectives of increasing priority sector
lending, improving the quality of appraisa, securing more and more non-traditional and fee-
based business, efficient monitoring credit quality and controlling gross NPAs and
consequently achieving better profitability as envisaged in the performance Budget for the
year.
In the coming years, the Credit Policy is bound to get much sharper focus and attention
against the backdrop of changes in the economy, the policy directives and guidelines of the
Reserve Bank and avenues for business promotion keeping in view our capacity and strength
and area where we are strong.
Accounts Department
“To help out Bank emerge as a strong and sound urban co-operative bank complying with all
regulatory and statutory requirements to the satisfaction of the Reserve Bank and the Central
Registrar of Cooperative Societies etc.
To ensure that the accounting policies followed by the Bank are in conformity with
the directives / guidelines of the statutory authorities including the institute of
Chartered Accountants of India and also in line with best international practices.
To develop a comprehensive compliance document, covering key issues like Capital
Adequacy, Liquidity, Asset Quality, Risk Management and Systems and Control
which should be reviewed periodically.
Submitting various statutory and other returns to the RBI and other authorities
promptly and accurately.
To develop a comprehensive information system by collecting data to measure,
monitor, control and report liquidity risk / interest rate risk from ALM angle.
The industrial Finance Department function at Head Office and its activities are supervised
by Senior Manager . Their role and responsibilities in respects of the reporting and
monitoring of loans and advances are, briefly narrated below :
Recovery Department
Development Department
Marketing Department.
“A satisfied customer brings business and growth. Believing in this saying – developing ideal
value added products; canvass business, paving the way for growth”
91 days & above upto & inclusive of 180 days 7.75% 7.75%
181 days & above upto & inclusive of 12 months 8.50% 8.50%
Above 60 months & upto & inclusive of 120 months 8.50 % 8.75%
Abhyudaya Bank’s Perspectives & Projections for Growth up to the year 2014
A significiant & an integral part of a Vision Document is to set targets under different s
segments of business for the assigned years in future. These have to be evolved by adopting
certain indicators & criteria, including the past performance, say over a period of last five years
or so. This provides a trigger process are the heightened expectations yet coupled with
earnestness & vigorous efforts to realize them to a large extent.
As we look back upon our previous performance, as is evident from the following table, it
reinforces our belief in our own ability to cope with the future tasks & challenges:
(Amount in crores )
Looking to the future, we wish to chalk out a Roadmap for resurgence & rejuvenation of the
Abhyudaya Bank by setting out the targets under various segments of business on year to year
basis up to March 31,2014. As a prelude to this, we seek to adopt certain parameters, as under:
Membership : 110000(approx)
Net Profit : To consistently grow, on an average, @ 15% per annum, notwith standing
unforseen additional financial burden due to mergers/acquisitions & tax burden.
QUESTIONNAIRE:
1.How satisfied are you with the services provided by the bank ?
Table:
%
Very satisfied 10
Satisfied 55
Somewhat satisfied 25
Dissatisfied 10
GRAPH:
percentage
100
90
80
70
60 55
50
percentage
40
30 25
20
10 10
10
0
Very satisfied Satisfied somewhat satisfied Dissatisfied
FINDINGS: According to above graph 10% customers are very satisfied, 55% are satisfied,
25% are somewhat satisfied and 10% are dissatisfied with the service provided by the bank.
Overall performance of the bank is good but according to me there is need of little improvement
in order to satisfy the customer completely.
2.Do you feel that the procedure to open an account with the bank was difficult?
Table:
%
Yes 10
Yes to certain extent 20
No, it was easy 70
Graph:
Percentage
100
90
80
70
70
60
50
Percentage
40
30
20
20
10
10
0
Yes Yes, to certain extent No,it was easy
Findings: According to above graph 10% customers feel that procedure to open an account is
difficult, 20% feel that it is difficult to certain extent and 70% customer feel that the procedure is
easy to open an account with the bank
3.Do you always get prompt service whenever you visit the branch?
Table:
%
Always 45
Often 25
Sometimes 20
Rarely 6
Never 4
Graph
Percentage
100
90
80
70
60
50 45
Percentage
40
30 25
20
20
10 6 4
0
Always Often Sometimes Rarely Never
Findings: According to above diagram 45% customer are say that they always get prompt
service whereas, 25% are in often category, 20% are in sometime category, 6% say that they
rarely get prompt service and 4% say that they never get prompt service.
4.DO you agree that minimum account limit is not high & easy to maintain ?
Table:
%
Strongly agree 60
Agree 25
Somewhat agree 10
Disagree 5
Graph:
Percentage
100
90
80
70
60
60
50
Percentage
40
30 25
20
10
10 5
0
Strongly agree Agree Somewhat agree Disagree
Findings: According to above graph, 60% strongly agree, 25% agree, 10% somewhat agree, that
minimum account limit is not high & easy to maintain, whereas 5% customers are disagree with
the statement
5.Are you satisfied with your financial transaction with the bank?
Table:
%
Very satisfied 20
Satisfied 45
Somewhat satisfied 25
Dissatisfied 10
Graph:
percentage
100
90
80
70
60
50 45
percentage
40
30 25
20
20
10
10
0
Very satisfied Satisfied Somewhat satisfied Dissatisfied
Findings: According to above diagram 20% customers are very satisfied, 45% are satisfied 25%
are somewhat satisfied with the financial transaction with the bank and 8% are dissatisfied.
6.Are you satisfied with the Loan & Deposit interest rate provided by bank?
Table:
Graph:
100
90
80
70
60 58
60
50 Loan
Deposit
40
30
30 27
20 15
10
10
0
Highly satisfied Satisfied Dissatisfied
Findings: According to above graph 10% with loan and 15% with deposits interest rate are
highly satisfied, 60% with loan and 58% with deposits are satisfied whereas, 30% and 27%
customers are dissatisfied with loan and deposit interest rates.
7.Does the bank staff communicate effectively with its customer? Are you satisfied with the staff
communication skill ?
Table:
%
Very satisfied 15
Satisfied 45
Somewhat satisfied 25
Unsatisfied 15
Graph:
Satisfaction level
100
90
80
70
60
50 45
40
30 25
20 15 15
10
0
Very satisfied Satisfied Somewhat satisfied Unsatisfied
Findings: According to above diagram 15% customers are very satisfied, 45% are satisfied 25%
are somewhat satisfied with staff communication skill of the bank and 15% are unsatisfied.
8. Does the bank create awareness among the customer about its new services & policies ?
Table:
%
Yes 75
No 25
Pie-diagram:
25
Yes
No
75
Findings: The above pie diagram shows that 75% say that ‘YES’ bank create awareness among
customers about its new services and policies and 25 % are disagree.
9.According to you which service provided by the bank is best ?
Table:
%
Loan service 10
Deposit service 10
ATM service 40
Credit card 20
Internet banking 15
Mobile banking 5
Pie-diagram:
Services of bank
5 10
15 Loan service
10
Deposit service
ATM service
Credit card
20 Internet banking
Mobile banking
40
Findings: The above customers survey 10% loan service, 10% deposit service, 40% ATM
service, 20% credit card service, 15% internet banking and 5% mobile banking are the best
services provided by the bank.
10.Compared to other bank how satisfied are you with the overall performance of Abhyudaya
bank?
Table:
%
Very satisfied 10
Satisfied 50
Somewhat satisfied 20
Dissatisfied 20
Pie-diagram:
Level of satisfaction
10
20
Very satisfied
Satisfied
Somewhat satisfied
20 Dissatisfied
50
Findings: According to above diagram10% customers are very satisfied, 50% are satisfied 20%
are somewhat satisfied with with overall performance of the bank compared to other banks and
20% are dissatisfied. According to my survey there is need for improvement to satisfy the
customers completely.
11.Overall , how satisfied are you with our banking service ?
Table:
%
Very Satisfied 14
Satisfied 54
Neutral 20
Unsatisfied 12
Pie-diaram
Satisfaction level
12 14
Very satisfied
20 Satisfied
Neutral
Unsatisfied
54
Findings: According to above diagram 14% customers are very satisfied, 54% are satisfied 20%
are neutral and 12% are unsatisfied with overall banking service.
CONCLUSION:
The bank provides attractive schemes to their customers and it has improved its overall
performance according to my research. The bank has shown growth in all departments. It also
provides various services to its customers such as internet banking, tale banking, ATM, credit
cards, LIC, lockers facility & so on. The bank has trained staff to serve the customers its treats
customers as the king of market & provide prompt service to them The bank conducts its
business ethically & It also serves the need of its shareholders, members.
SUGGESTION:
The bank should provide effective services to its customers and employees.
The procedure to open an account with the bank should not be difficult. It should offer
convenience to customers.
The customer should always get prompt service whenever they visit the bank.
The minimum account limit should not be high and it should be easy to maintain.
The staff should be well trained so customer should not wait for their transaction.
The bank should offer lower interest rate on loan scheme to attract more customers.
The bank should offer higher interest rate on deposit to retain more customers.