A STUDY OF LOANS & ADVANCES OF

SHRI SATYAVIJAY SAHAKARI BANK LTD., KUNDAL

Name: - Akash Ashok Pawar
Roll No: - 1745016
Subject Name: - Research methodology
 CHAPTER NO-1

INTRODUCTION TO THE STUDY

1.1 INTRODUCTION-

Banking sector plays an important role in economic development of a

country. The banking system of an India is featured by a large network of a bank
branches, serving many kinds of financial services of the people. Finance is the
set of activities dealing with the management of funds. More specifically, it is the
decision of collection and use of funds. It is a branch of economics that studies
the management of money and other assets. Finance is also the science and art of
determining if the funds of an organization are being used properly. Through
financial analysis, companies and businesses can take decisions and corrective
actions towards the sources of income and the expenses and investments that need
to be made in order to stay competitive.

Finance is the life blood of business. It flows in mostly from scale of goods
and services. It flows out for meeting various types of expenditure. The activating
element in any business which may be on industrial or commercial undertaking is
the finance. Business finance has been defined as those activities which have to
do with the provision and management of funds for the satisfactory conduct of a
business. Business finance is defined as that business activity which is concerned
with the acquisition and conservation of capital funds in meeting the financial
needs and overall objectives of business enterprises.
1.2 OBJECTIVES OF THE STUDY

1. To study products and services of Shri Satyavijay Co-operative Bank Ltd.,

Kundal.

2. To conduct analytical study of loans and advances of bank.

3. To know views of borrowers about lending policy of the bank.

1.3 IMPORTANCE OF STUDY:-

1. It has helped to get practical knowledge about working of co-operative bank.

2. It has helped to know different schemes relating to loans and advances.

1.4 SCOPE OF THE STUDY:-

1. Conceptual scope is limited to loans and advances scheme.

2. Geographical scope is restricted to the co-operative bank.
1.5 RESEARCH METHODOLOGY:-

The information is collected through primary and secondary sources during the
project. The data is tabulated and analyzed. The collected data are divided in two
groups.

1.5.1 DATA COLLECTION :-

Data has been collected by two sources like Primary and Secondary data.

a. Primary Data:-
Primary Data means data observed or collected directly from first-hand
experience.
For present study, primary data has been collected through observation
and personal discussion with managers and the staff of the bank.

b. Secondary Data:-
Secondary Data means Published and second hand data. For present
study bank documents, financial statements and annual reports, reference books
are used for theoretical aspects.
 CHAPTER NO.2

INTRODUCTION TO THE BANK

2.1 INTRODUCTION:-

BANK PROFILE

Name of the Bank Shri Satyavijay Co-operative bank ltd. Kundal

A/P- Kundal. Tal- Palus, Dist- Sangli

Hade Office Address
Pin-416309.
Dates & Registration No.
SAN/BNK104/7-16/10/1986

Date & R.B.I License

UBD/MH/605/16.10.86
No.
Sangli, Kolhapur, Satara, Ratnagiri & Solapur
Jurisdiction
District

Email Satyavijaybank@gmail.com

2.2 HISTORY OF THE BANK:-

In accelerating the pace of industrial growth & development of kundal, his

moving spirit & fountain of inspiration behind was Shri. Ramchandra Sakharam
Pawar with his item of the colleagues sharing his mission of co-operative
movements in the fifties founded chain of co-operative institution in Kundal. The
unique achievement of Ramchandra Sakharam Pawar was that, he given a wider
base to the co-operative movements, by extending it to agro based industry. His
one of the landmark, is the foundation of the Shri Satyavijay Sahakari Bank
Limited Kundal.
 In this endeavor, he was ably assisted, among others, by young devoted &
disciplined shri satyavijay bank limited kundal, branch tasgaon. Both of then were
aware of the short coming of his loan crusade in the contest of growing needs of
the people. This society was registred on 16/10/1986 having regard to the efficient
operations, The Reserve Bank of India has no hesitation in granting to the bank
to operate as a bank and granted a banking license as urbon co-operative bank in
Oct 1986 Shri Satyavijay Sahakari bank Limited Kundal, this speaks for itself the
achivement of the bank and reflected the quality of management & the board. It
was natural that, operations of the bank in the beginning were on a limited scale
with financial constraints of funds following from the public. However, soon
schemes of a bank started growing. The bank therefore could land financial
assistance, to, through sustaned efforts for collecting deposit from the public by
innovating the attractive deposits wider range of small & needy entrepreneurs.
This strengthened the trust of the people & more & more co-operative institutions
become valued clients of the bank at the time the traditional handloom industry
was making way for power loom as a need of time the bank has the pride privilege
to claim that, it could make the small power loom owners forced to undertake job
works for want up working capital, could become self-reliant producers with their
own looms.
2.3 BRANCH EXPANSION:

The area of operation of the bank is whole revenue area of Maharashtra State.
To meet the growing need & banking facilities to large section of people the bank
has opened its branches at-

1. Kundal

2. Savantpur Vasahat

3. Palus

4. Takari

5. Market Yard Sangli

6. Savalaj

7. Tasgaon

8. Islampur

9. Mahanager Palika Sangli

10. Chinchani

11. Vasgade
2.4 SERVICES:

The bank provides various services to the customer in many ways, such as-

1. Bill collection facility

2. Safe Deposits locker facility

3. Loans & Advances at reasonable rates to small & cottage industry

4. Prompt & co-ordial service.

5. Internet facility is available in computerized branches.

6. PAN card service is provided.

2.6 PRODUCTS OF THE BANK:-

2.6.1 DEPOSIT SCHEMES OF THE BANK:-

Sr. No. Days Interest rate (%)

1 7 Day to 90 Days 6.50%

2 91 Days to 180 Days 7.00 %
3 181 Days to 1 Year 7.25%
4 1 Year 1 Day to 3 Years 8.25%
5 3 Year 1 Day to 5 Year 8.50%
6 5 Year 1 Day to 10 Year 8.75%
2.6.2 LOAN SCHEMES OF THE BANK:-

By the end of 2016

Sr. No. Loan Type Interest Rate (%)

1 Short term loans
I ) Secured loans:-
a) Cash credit 14%
b) Loans against fixed deposits
c) Loans against pigmy Deposits
d) Gold loan 13%

ii) Unsecured loans:-

a) Clean loan 14%
b) Micro finance loan

2 Medium term loans

a) Vehicle loan
b) Home loan
c) Agricultural loans
d) Machinery hypothecation 14%
e) Loans against property
f) Salary loan
g) Education loan
h) Industrial loan
 CHAPTER NO. 3

THEORETICAL BACKGROUND

3.1 MEANING:

A financial institution licensed as a receiver of deposits. There are two types

of bank: 1) Commercial/Retail Banks 2) Investment banks. In most countries,
banks are regulated by the national government or central bank. Commercial
banks are mainly concerned with managing withdrawals & deposits as well as
supplying short-term loans to individual & small business. Consumers primarily
use this bank for basic checking and saving accounts, certificates of deposits and
sometimes for home mortgages. Investment banks focus on providing services
such as underwriting and corporate reorganization to institutional clients.

3.2 TYPES OF BANK:

1. Saving Banks-

These banks are suited for employees with a monthly salary. Low waged
people may open an account in saving bank.

2. Commercial Banks-

These banks collects money from people in various sector and giving the
some as a loan to businesses & make profits in interests this business men pay
since the loan is large the interest rates are also high.

3. Industrial Development Bank-

These bank are committed to words enhancing the growth of industries by

providing loans for very long period of time. This is vital for the long term growth
of the industries.
4. Loans Development’s Bank-

These banks promotes in the food sector, by giving loans to farmer at a

relatively lower interest rate. The loan is usually given on the basis of land. If a
farmer has lots of agricultural fields then the more will be the loan provided.

5. Indigenous Banks-

They collect money from the community & provide loans to business men &
industrialists for a short amount of time.

6. Mortgage Bank-

These banks are specialized in providing mortgage loan alone. In order to sell
loans they depend solely on the secondary market.

7. Federal or National Bank-

These banks control the principles & policies of other banks across the
country. These banks are managed and run by the government. This bank provides
benchmarks which other bank should follow.

8. Co-operative Banks-

Co-operative bank as the name suggests gets money from the general
community without any bias and provides loans to all sections op people in the
neighborhood. Their motto is not profit alone, but service.

9. Exchange Bank-

These banks will be available in a more than a single country. They provide
services for the buying and selling of gold and silver; transaction will be in foreign
currencies.
10. Consumer’s Bank-

These are consumer friendly banks; they encourage the consumer in buying
commercial products and provide options for easy repay of the loan amount.

11. Private Banks-

These banks are not for the general public and community. They serve entirely
for private personnel’s assets and transaction aloan.

12. Ethical Banks-

As the name implies ethical banks promote candid transaction; between

various customers of the banks. Policies and rules are transparent in nature.

13. Internet Bank-

These banks provide banking facilities only via internet. There will be no
physical contact with the bank. All transaction are permitted only through online.

14. Investment Banks-

These banks are pertinent to large organization’s investment ventures across

the industry. They provide advice investment and promote corporate transactions.

15. Merchant Banks-

These banks exist for a long time. They promote investing in organization
that reap huge benefits for a long time rather than brand new organization.

16. Universal Banks-

These banks have a wide spectrum of a financial assistance to provide.

Insurances to stock they promote everything across all countries around the globe.