PROJECT REPORTON

WORKING OF PATIALA CENTRAL COOPERATIVE BANK LTD

PATIALA (PUNJAB)

Submitted in partial fulfillment of the requirement for the Degree of

BACHULAR OF BUSINESS ADMINISTRATION

(2008 - 2011) Under the supervision of

Sh, Rakesh Kumar Goyal, Senior Manager

Submitted by:

KANWARPAL SINGH

Roll No: 307

BBA-3rd Year

ACKNOWLEGEMENT

On completion of my project work I want to thank all the employees of The

Patiala Central Cooperative Bank Ltd. Patiala for their Co-operation in

successfully completion of the project work on P.C.C.B Patiala. I want to thank

particularly Sh.Rakesh Kumar Goyal Senior Manager, The Patiala Central

Cooperative Bank Ltd., Patiala for giving me the actual knowledge about the

successful banking & giving me time out of this precious time. I am also very

thankful to the other employees who gave me support in completion of my

project.

Roll.No.307

BBA- 3rd Year

BANK

In simple words a Bank refers to an Institution that deals in money & credit.

Banks are the main center of business & commerce. Banks kept important role in

the economic condition of all the countries of the world.

The word ‘Bank’ comes from the word Banc us or Banque which mean is Bench.

In the words of kindly, Bank is an Establishment that make such advances of

money or other means of payments as may be required and safety made to which

individuals interest money or means of payments when not required by them for

use.

According to Banking regulation act 1949, “For the purpose of lending or

investment, accepting of deposits of money from the public, repayable on demand

on otherwise and withdraw by cheque, draft, order or otherwise.”

FUNCTIONS OF A BANK

A tree is known by its fruits as well as Banks known by his works. Banks have

done so many other important functions instead of depositing & lending money.

Banks functions are divided into two parts: -

Primary & Banks function

Secondary & helping function

PRIMARY FUNCTIONS

Depositing MoneyDepositing Money

Lending MoneyLending Money

DEPOSITING MONEYDEPOSITING MONEY:: - Its deposited by three ways for opening a: - Its deposited by three ways for opening a:

Fixed deposit a/cFixed deposit a/c

Saving deposit a/cSaving deposit a/c

Current deposit a/cCurrent deposit a/c

LENDING MONEYLENDING MONEY: - Money lending to needy person in following ways: -: - Money lending to needy person in following ways: -

Bank gave loans to customers of bank in following ways:Bank gave loans to customers of bank in following ways:

LoansLoans

Cash creditCash credit

OverdraftsOverdrafts

Purchasing & discounting of bills.Purchasing & discounting of bills.

SECONDARY FUNCTIONS

Agency functionsAgency functions

Utility functionsUtility functions

AGENCY FUNCTIONS AGENCY FUNCTIONS : - Banks done many work to his customer as an agent.: - Banks done many work to his customer as an agent.

These are as follows: -These are as follows: -

Collection of cheques, bills & interest etc.Collection of cheques, bills & interest etc.

Payment of Insurance premium other Installments.Payment of Insurance premium other Installments.

Purchase & sale of securities.Purchase & sale of securities.

Transfer of fundsTransfer of funds

Acting as a trustee, executor or attorney.Acting as a trustee, executor or attorney.

UTILITY SERVICE : - Bank gave services to society. Its those services are

as follows: -

Safe custody of valuables securities.Safe custody of valuables securities.

Issuing letter of credit, travelers’ cheques.Issuing letter of credit, travelers’ cheques.

Accepting bill of exchange.Accepting bill of exchange.

Providing Trade information.Providing Trade information.

Dealing in foreign exchange.Dealing in foreign exchange.

Advice on financial matters.Advice on financial matters.

Giving information about credit worthiness of customersGiving information about credit worthiness of customers

Financing foreign tradeFinancing foreign trade

Credit creationCredit creation

Underwriting of capital issues & loans.Underwriting of capital issues & loans.

IMPORTANCE OF A BANKIMPORTANCE OF A BANK

SAFETY OF MONEY:SAFETY OF MONEY:

The money with the bank remains in safe custody there is always risk in keepingThe money with the bank remains in safe custody there is always risk in keeping

cash with one’s own self. It may be lost or stolen. Business man like to keepcash with one’s own self. It may be lost or stolen. Business man like to keep

money with a bank to avoid risks of money the customer need not keep largemoney with a bank to avoid risks of money the customer need not keep large

some of money.some of money.

IT CULTIVATES HABIT OF SAVINGIT CULTIVATES HABIT OF SAVING ::

Banks cultivates the habit of saving in the Bank on the one hand are safe and onBanks cultivates the habit of saving in the Bank on the one hand are safe and on

the other earned interest for the depositor who prompted to safe and depositthe other earned interest for the depositor who prompted to safe and deposit

money in their banks accounts.money in their banks accounts.

FINANCIAL HELP TO CUSTOMER:FINANCIAL HELP TO CUSTOMER:

Banks allows overdraft facilities to their customer so whenever a customer needsBanks allows overdraft facilities to their customer so whenever a customer needs

money he can even withdraw more money then the balance in his account. Bankmoney he can even withdraw more money then the balance in his account. Bank

also grants loans and credit facilities to their customers.also grants loans and credit facilities to their customers.

SAFE CUSTODY OF VALUABLE ARTICLESSAFE CUSTODY OF VALUABLE ARTICLES : :

Valuable articles deals security etc. can also be deposited in the bank for safeValuable articles deals security etc. can also be deposited in the bank for safe

custody. Safe deposit vaults are provided by bank for storing these valuables.custody. Safe deposit vaults are provided by bank for storing these valuables.

OTHER INFORMATION:OTHER INFORMATION:

By opening an account with a bank, the customers may also take advantages ofBy opening an account with a bank, the customers may also take advantages of

various other services providing by the banks, such a purchase and sale ofvarious other services providing by the banks, such a purchase and sale of

securities, travelers cheque etc.securities, travelers cheque etc.

RELATIONSHIP BETWEEN BANKER & CUSTOMERRELATIONSHIP BETWEEN BANKER & CUSTOMER

Instead of secondary functions banks gave some other important services to hisInstead of secondary functions banks gave some other important services to his

customers. The main function of banker & customer is as Debtor & Creditor.customers. The main function of banker & customer is as Debtor & Creditor.

Banker works as an agent & also a trustee of his customer.Banker works as an agent & also a trustee of his customer.

KINDS OF BANKSKINDS OF BANKS Commercial BanksCommercial Banks

Industrial BanksIndustrial Banks

Agricultural BanksAgricultural Banks

Exchange BanksExchange Banks

Post office saving bankPost office saving bank

Indigenous BankersIndigenous Bankers

Regional Rural BankRegional Rural Bank

Import export BanksImport export Banks

National Bank to Agriculture & Rural Development (NABARD)National Bank to Agriculture & Rural Development (NABARD)

State Bank of IndiaState Bank of India

Reserve Bank of IndiaReserve Bank of India

ORIGIN AND GROWTH OF CO-OPERATIVE BANKS

Co-operative banks are a part of the vast and powerful superstructure of co-

operative institutions which are engaged in the tasks of production, processing,

marketing, distribution, servicing and Banking in India. The beginning of co-

operative banking in this country dates back to about 1904 when official efforts

were initiated to create a new type of institution based on the principles of Co-

operative organization and management which were considered to be suitable for

solving the problems peculiar to Indian conditions. In rural areas, as far as

agricultural and related activities were concerned, the supply of credit, particularly

institutional credit, was woefully inadequate, and unorganized money market

agencies, such as money lenders, were providing credit often at exploitatively

high rates of interest. The co-operative banks were conceived in order to

substitute such agencies, provide adequate short-term and long-term institutional

credit at reasonable rates of interest, and to bring about integration of the

unorganized and organized segments of the Indian money market. When the

national economic planning began in India, co-operative banks were made an

integral part of the institutional framework of community development and

extension services, which was assigned the important role of delivering the fruits

of economic planning at grassroots levels. In other words, they became a part of

the arrangements for decentralized plan formulation and implementation for the

purpose of rural development in general and agricultural development in

particular. Today co-operative banks continue to be part of a set of institutions

which are engaged in financing rural and agricultural development. This set-up

comprises the RBI, NABARD, commercial banks, regional rural banks, and co-

operative banks. The relative importance of co-operative banks in financing

agricultural and rural development has undergone some changes over the years.

Till 1969, they increasingly substituted the informal sector lenders. After the

nationalization of banks and the creation of RBI and NABARD, however, their

relative share has somewhat declined. All the institutional Sources contributed

about 4 percent of the total rural credit till 1954. The contribution increased to 62

percent by 1990. The share of co-operative banks in this institutional lending has

declined from 80 percent in 1969 to about 42 percent at present. The percentage

of rural population covered by the agricultural credit co-operatives was 7.8 in

1951, 36 in 1961, and about 65 percent at present.

NOTE ON THE WORKING OF THE PATIALA CENTRALCOOPERATIVE BANK LTD., PATIALA.

1. Brief History

The Cooperative finance in the erstwhile State of Patiala was made available by a State owned bank viz. the Patiala State Bank (now State Bank of Patiala). With taking over the assets and liabilities of the then Patiala Cooperative Union, the Patiala Central Cooperative Bank Ltd., and Patiala was registered on 28/09/1949 under the Cooperative Societies Act, 1912.

The Bank is presently serving in its 62 year.

2. Constitution and Management

The Bank is managed by the Board of Directors (9 elected by the members Cooperative Societies and 3 nominated by the Govt. being member of the Bank having contributed an amount of Rs.70.00 lacs as share capital).

3. Branches

Apart from its Head Office at Patiala, the Bank has a network of its 42 branches spread all over the district. 16 out of the 42 branches of the Bank, are working at the Focal Points - a scheme started by the Govt. of Punjab in the year of 1978.

4. Business Turn Over

The business turn over of the Bank for the year 2009-2010 was Rs.1076601.94 lacs.

5. ResourcesThe Bank raises its resources with the collection of

31/03/2009 31/03/2010 26/11/2010

* Share Capital 1152.97 1374.26 1460.28* Owned Funds 5277.36 6141.60 6213.31* Deposits 31061.08 35196.58 35414.68* Borrowings 45841.59 53582.42 48098.14

6. DepositsThere are various schemes of deposits namely

* Current Deposits * Savings Bank Deposits* Fixed Deposits * Recurring Deposits

7. Advances

The Bank advances both in farm and non-farm-sector. Total loans outstanding as on 31/03/2010 stood at Rs.81734.59 lacs and as on 26/11/2010 is Rs.77432.42 lacs.

Sr.No. Name of the Scheme As on As on As on 31/03/2009 31/03/2010 26/11/2010

1. Crop Loan 37329.01 43501.76 38667.40

2 Medium Term Agri. 6889.09 9608.83 11041.50

3. R.C.C. to Farmers 9975.33 10465.23 9664.36

4. Mini Dairy 334.02 275.17 215.91

5. Two Wheelers to farmers 745.71 709.56 665.07

TOTAL:- 55273.16 64560.55 60254.24Non Farm Sector

1. N.F.S./Mai Bhago 2164.33 1170.15 1144.882. Consumer Loan 1776.28 2147.52 2155.593. Personal Loan 1559.19 1765.61 1835.214. Rural House Loan 2110.89 2323.77 2180.745. Urban House Loan 1191.93 1269.44 1343.026. C.C.Traders 2132.43 1931.09 1786.987. Vehicle Loan 562.40 838.86 923.678. Education Loan 38.56 54.49 63.269. S.H.G./S.G.S.Y. 59.42 93.63 94.6910. Other Misc.Loans 4589.15 5579.48 5650.14 8. Recoveries

Recovery position of different types of loans for the year 2009-2010 has been as under :-

1. Crop Loan 95.07 % 2. Rural House Loan 78.03%3. Two Wheelers 76.25 % 4. Personal Loan 75.04%5. Vehicle Loan 75.75 % 6. Consumer Loan 56.66%7. N.F.S. Loan 47.70 % 7. S.H.G./S.G.S.Y. 66.87%

9. Financial Parameters 31/03/2008 31/03/2009 31/03/2010

1. Average cost of Borrowings 5.43 5.48 5.00

2. Average cost of Deposits 5.91 6.37 6.28

3. Weighted average cost of Funds 5.00 5.20 4.98

4. Average yield on loans and advances 7.62 7.30 7.62

5. Average yield on investments 8.48 8.16 7.54

6. Weighted average yield on Assets 7.17 6.88 7.07

7. Financial Margin 2.17 1.68 2.09

8. Cost of Management 1.58 1.41 1.41

9. Net Margin 0.21 0.27 0.68

10. Important Ratios 31/03/08 31/03/09 31/03/10 1. Net profit to own funds 2.05 0.76 2.04

2. Interest Income to average working funds 7.18 6.88 7.07

3. Net profit to average working funds 0.16 0.05 0.14

4. Estt.Expenditure to total expenditure 18.04 16.47 16.28

5. Estt.Expenditure to total income 17.66 16.35 15.96

6. Cost of Management to total Exp. 22.21 20.48 20.00

7. Capital Adequacy Ratio 6.81 4.19 4.25

8. N.P.As to Total Loans 6.24 7.25 5.61

9. Agriculture advances to total advances 77.87 78.41 79.82

11. Per Branch and Per Employee Business 31/03/08 31/03/09 31/03/10

1. Per Branch Business 2149.51 2329.97 2658.182. Per employee Business 497.77 548.23 657.08

12. Grey Areas

1. Staff Shortage The Bank has an acute shortage of staff. This is affecting the

business and customer services. Proper supervision is also lacking over the working of the branches. Regular retirements of staff are taking place reducing the available strength every-month. Last recruitment of clerical staff was made in the year 1980. Strength of clerical and subordinate staff has become too thin to carry on routine functioning. The staff is under tremendous stress and pressure. The first consequence of this is that the quality of the work suffers. Against 366 sanctioned posts, there are only 161 employees working in the Bank. The position is illustrated as under :-

Staff Strength

Sr.No. Name of the Post Sanctioned Working Vacant

Common Cadre

1. District Manager 1 1 --

2. Senior Manager 9 2 73. Manager 19 6 13

Non-Common-Cadre

1. Supdt. 1 -- 1

2. Asstt.Manager 55 52 3

3. Accountant 39 26 13

4. Steno-typist 7 -- 7

5. Clerk 121 30 91

6. Driver 5 3 2

7. Dafatri 1 1 --

8. Peon 106 40 66

9. Sweeper/Mali 2 -- 2

TOTAL 366 161 205

2. Imbalances

There is imbalances exist between the loan outstanding towards (No.70) PACS and loan outstanding towards members amounting to Rs.1681.63 lacs as on 31/03/2010.

3. Debt Waiver and Debt Relief 2008

Under the Debt Waiver Scheme, loan of 6523 Farmers amounting to Rs.1605.83 lacs has been waived and under Debt Relief O.T.S. Scheme 3671 and amount of Rs.468.21 lacs would be granted to other farmers. Rs.1609.34 lacs received from Govt. of India.

4. F armers Clubs

There are 16 Farmers Clubs working in this District adopted by this Bank out of which 7 farmers clubs are newly framed.

5. Self Help Groups

There are 2148 Self Help Groups formed in the District out of which 463 Groups are associated with this Bank. There are 231 Groups financed by the Bank, an amount of Rs.94.69 lacs Loan outstanding against them as on 26/11/2010.

6. N.P.As

NPA of the Bank decreased from Rs.5179.04 lacs to Rs.4583.44 lacs on 31/03/2010. Out of the Total NPA, a sum of Rs.976.09 lacs stands recovered on 26/11/2010.

The percentage of NPA to total advances was decreased from 7.25% to 5.61% during the year 2009-2010.

OPENING BANK ACCOUNT

Opening of bank account the bank has printed their own account opening

form in which the depositor has to fulfill all the data in account opening form.

Account can be opened and operated Self only jointly either or survivor former

or survivor anyone or survivor. Any other with the specimen signature and photo

of each applicant bank has allowed in these accounts Nomination facilities on the

prescribed form DA-1 under section-45ZA of banking regulation Act 1949 after

obtaining proper identification of the customer & introduction of existing

customer with address after obtaining the one photo and document from below list

of ID proof

Election ID card ID card of reputed employer

Driving License Electricity Bill

Pan Card Telephone Bill

Pass port Salary Slip

Government/ Defense Income/ Wealth Tax

ID card Assessment Order

Saving Bank Accounts:

In the ledger account opened under the serial no of the customer with his / father’s/

husband name with complete address. An account is allotted in the ledger, mode of

signature filled in the ledger. S.B.Account is opened with minimum amount of

Rs.500/- in cash except no frills account which are opened with Rs.5/-. A pass book

is issued to the customer. If he wants a cheque book, the same is issued to the

customer free of cost after getting signature in the cheque book issue register. With-

drawl form bank has made facility upto Rs.40,000/-. On presentation of pass book

must with the with-drawl form duly signed by the account holder.

Maintaining of deposit register and files

The Mall Branch of bank is fully computerized. The other branches are maintaining the

following ledgers, registers & files.

a) Account opening form register

b) Specimen signature file

c) Cheque book issue register

d) Loose cheque issue register

e) Nomination register

Rate calculation of interest:

The interest in saving bank account is calculated on monthly product. The lowest

balance in account on one day between 10th and last day of each calendar month on

every completion of Rs.10 is taken as product for the month and the total products for

six months is arrived at. No interest should be paid if the interest is less than Rs.5.

Interest is to be rounded of nearest rupee if the paise involved are 50 or more it should

be rounded of to the next higher rupee if paise involved are less than 49 the paise is

ignored

----------------------------------------------------------------------------------------------------------Month Minimum balance Product----------------------------------------------------------------------------------------------------------April

May

June

July

August

September

Total Product

The formula of interest calculation is Total Product * Rate of interest/1200

Hence the interest is 17370 * 3.5/1200 = Rs 50.66 interest so calculated is credited

in this account with Rs 51 upto 10th of October. The voucher at branch level is

prepared as

Debit: Interest paid on deposits Rs 51

Credit: Saving Bank account Rs 51

Inoperative Accounts – Separate Ledger

All the S.B account in which there is no operation for the last three years must be

separated from operative accounts and separate ledgers are to be maintained for this

purpose.

Similarly all saving bank accounts which have not been operated for the last 10 years,

Should be transferred to unclaimed deposits as per section 26 of Banking Regulation Act

1949. For detail procedure to be adopted to separate these accounts.

SEHKARI BANK BIMA YOZNA

Individual in the age group of 10-70 years opening saving bank account are eligible to join

the scheme.

Minimum Balance

The minimum balance of Rs 1000 is to be maintained in the account with no maximum

ceiling. Cheques issued on the account violating minimum balance stipulation are liable

to be dishonored by the bank.

Nomination Facility

This facility for deposit account is available and is restricted to one individual only.

Nomination shall be made preferably at the time of opening of the account. Nomination

Can be cancelled or changed at any time. Nomination for bank deposit and insurance

scheme shall be the same.

Sehkari Bank Bima Yojna Register

As and when any member opens new account or existing member adopts the scheme, his

name shall be entered into the Sehkari Bank Bima Yojna Register maintained at the bank.

Statement to Head Office

The branches shall send the statement along with draft/advise to

the head office about the accounts opened under the scheme during the month. The head

office of the bank shall collect the information of all the branches, consolidate it and

shall submit the same to the Punjab State Cooperative Bank Ltd. atleast two days before

the last day working of the month for onward submission to the insurance company.

Insurance Cover

Persons joining the scheme are provided with accident insurance cover

under the “ Group personal accident insurance policy “ of the General Insurance Company

and the following risks are covered.

a) Death Rs 100000.00

b) Permanent total disability Rs 100000.00

c) Loss of 2 eyes/feet/hands Rs 100000.00

d) Loss of 1 eye/foot/hand Rs 50000.00

Insurance Premium

The insurance premium including service charges determined by the bank from time to time

shall be debited to the account of the individual on the date of its opening and subsequently

on the date determined by the bank every year towards the insurance premium and bank’s

service charges. In case of premium is not remitted by the bank due to lack of sufficient

funds/balance in the account or for any other reasons beyond the scope of the bank,

insurance cover will not be available as stated above.

Procedure for Claim

Immediately after the happening of the accident it should be informed by the claimants to the

Concerned branch of the bank where the depositor is maintaining the account and nearest

branch of the insurance company. Claim form can be obtained from the bank branch or from

the branch of the company and are to be submitted to the insurance company through the

branch.

Disposal for claim:The claim shall be disposed off as early as possible and the claim shall be made to the

bank for disbursement to the nominee in case of death or to the depositor in case of

disablement.

Documents required with claims:The following documents should be submitted along with the claim form.

a) In case of death

1. Death certificate

2. Post mortem report

3. Copy of first information report

4. Name of the nominee

5. Any other relevant document

6. Premium remittances confirmation from the bank

b) In case of disablement

1. Photograph of the disabled showing disability.

2. Disability certificate issue by the doctor

3. Police report/ report from Sarpanch of village or Lambardar

4. Any other relevant document.

5. Premium remittances confirmation from the bank

FIXED DEPOSIT AND LONG TERM DEPOSIT

Fixed Deposit

Fixed Deposit is a deposit scheme wherein a depositor agrees to receive back

the principal amount after a specified period agreed to at the time of deposit.

Interest may be received by him either periodically or at maturity. Fixed

Deposit can be opened for any amount subject to minimum of Rs1000/-

Long Term Deposit

Long term deposit is a deposit scheme wherein a depositor agrees to receive back

the principal amount together with interest accrued after a certain period agreed

at the time of deposit. Interest earned thereon under this scheme is reinvested

at quarterly rests to yield compound interest. Long term deposit accounts are

opened with minimum amount of Rs1000/-. The minimum period of deposit is 2

quarters ( 6 months).

Account opening form

The requirement for opening a Fixed Deposit/ Long term deposit with respect

to account opening form, introduction, photographs, specimen signature,

requirement of income tax authorities, staff accounts, nomination secrecy.

Payment of interest quarterly

In case of Fixed Deposit, the customer may get payment of interest when it

accrues at every quarter. The instruction to this effect, if customer desires so,

be obtained on the account opening form as “ Please credit the interest accrued

every quarter to my Saving account/ Current account/ Recurring Deposit “.

Another term deposit in case of existing term deposit account where the customer

account Fixed Deposit or Long term deposit is already running he needs not

required to open another corresponding account while depositing money for

another fixed deposits or long term deposit. The customer needs to fill up pay-in-

slip while depositing money writing wherein his Fixed deposit account number or

Long term deposit account number, as the case may be. In this case account

opening form will not be required to fill up again by the customer.

ISSUANCE OF FIXED DEPOSIT/ LONG TERM DEPOSIT RECEIPT

Preparation of credit voucher and receipt for Term Deposits

The depositor should remit cash through the pay-in-slip provided by the bank

along with application for opening the deposit account. While writing the receipt,

the following particulars should be included.

1. Date to be mentioned in Term Deposit Receipt

While writing the date of issue of the Term Deposit Receipt, the numeral of date,

month & year should be written legibly in the place provided for.

2. Name to be mentioned on Term Deposit Receipt

The name of depositor should be written in full term on Term Deposit Receipt. In

case of joint accounts, names of all joint depositors should be written.

3. Period of deposit on Term Deposit Receipt

Period of deposit should be written in term of months instead of years and for a

period below 12 months, it should be written in term of days instead of months.

4. Rate of Interest on Term Deposit Receipt

The rate of Interest applicable for the period of deposit should be written legibly

in the space provided for. The latest circular from Head Office regarding current

interest rates should be refereed.

5. Due Date

Due Date should be correctly calculated and written. When due date falls on bank

holiday, the amount is to be paid on next working day. In all such cases, interest

for the holiday involved at the contracted rate should also be paid. If the month in

which the deposit becomes due does not have the date corresponding to the date

of deposit the last day of the month will be the due date. Thus, the due date for

Fixed Deposit Receipt for 18 months issued on 31st August 1998 would be 29th

February 2000. However, in case the period of deposit had been expressed in

terms of days and not months, the due date should be calculated as per the

following rule:

1) Calculated days and not months. If February of that year has 29 days, calculate

for 29 days ( not 30 days).

2) Include date of deposit

3) Exclude the date of payment, take the next date

Example: The due date for Fixed Deposit Receipt dated 04.10.1999 for 91 days

should be Calculated as under:

October 1999 (04.10.1999 to 31.10. 1999) 28 days (including date of deposit)-

Rule (2)

November 1999 30 days – Rule (1)

December 1999 31 days

89 days

The period of deposit is 91 days, so we must add days 2 days in 89 and it comes

out to be 2nd of January, 2000. By applying rule (3) the due date becomes 3rd of

January, 2000.

6. Interest runs from

The column ‘Interest runs from’ shall be filled with the date on which the deposit

receipt is prepared. In case deposit is renewed from the back date, the date in this

column will be the due date of the overdue deposit.

Term Deposit Receipt- typed or written

The deposit receipt may either be typed or written in hand. If written in hand, it

should be neat and legible. In computerized branches, where term deposit receipt

are prepared with the help of printer and computer, paper should be adjusted in

such a manner that its printing is legible and at proper place.

Number in pay-in-slips and account opening form

The deposit receipt number should be written in account opening form and also in

the pay-in-slip.

Signature on deposit receipt

The deposit receipt should be signed by two authorized officer after scrutinizing

the pay-in-slip, account opening form and deposit receipt.

Acknowledgement from depositorThe Depositor’s signature should be obtained on the back side of the counterfoil

in token of receipt of the deposit receipt and the deposit receipt should be handed

over to the depositor.

Matured amount to be written on long term deposit receipts

In the long term deposit scheme of term deposit, the interest earned is reinvested

(compounded quarterly) and paid on maturity. So, in the long term deposit

receipt, the matured amount is mentioned therein which should be written both in

figures and words. Whereas, matured amount is not written on fixed deposit

receipt as the depositor has the option to receive the interest monthly/ quarterly/

half yearly, i.e., before maturity.

Entry in fixed deposit & long term deposit ledgers

Separate ledgers for fixed deposit & long term deposit should be used. All the

relevant particulars such as name of the depositor, date, period of deposit, rate of

interest, due date, maturity value, instructions regarding disposal of balance in

respect of joint accounts should be entered.

Interest Payment Register

The details of fixed deposits should be entered in the Interest Payment Register.

Entries in Interest Payment Register are not required in case of long term deposits.

Payment of interest on long term deposits

The interest on long term deposit is compounded quarterly and is paid only on the

maturity date of the deposit along with principal amount. The interest should be

calculated at the end of each quarter and must be credited in the account of the

depositor.

Payment of interest on fixed deposits

a) Where the deposit is for one year or more while calculating the days for the

purpose of interest, the following rules should be observed:

1) Include the first day of deposit

2) Exclude the last day of deposit

3) Each month is considered to have 30 days

b) Where the deposit is less then a year

If the fixed deposit is made for a specified number of days less than a year,

interest should be calculated by taking the actual number days in a month.

Discharge

To make payment of fixed deposit/ long term deposit on due date, if the customer

present himself to receive the payment, he may be asked to discharge the fixed

deposit/ long term deposit receipt on the back of it. His signature on the fixed

deposit/ long term deposit receipt shall be tallied with specimen signature in

record of the bank.

Closure of long term deposit

The receipt and the account opening form should be cancelled by writing words

‘Account closed on --------- (date)’. The account should be closed in ledger by

posting the necessary entries. The ledger and the due date register should be

marked with a notation ‘Account closed and cash paid/ amount transferred to SB/

Current account on ---- ‘. Whereas if there are other term deposits in the term

deposits accounts, the account should not be closed.

RECURRING DEPOSITS

A Recurring deposits is a form of term deposit in which depositor deposits a fixed

sum of money by way of monthly installments over a stipulated period and on the

expiry of this period. The accumulated amount along with interest accrued is paid

in lump sum.

Rate of interest

The rate of interest on recurring deposit for various periods will be the rate

applicable on term deposits for the corresponding period. Interest is compounded

at quarterly rests.

Amount of deposit

A recurring deposit is accepted with a minimum monthly installment of Rs 10/- in

multiples of Rs 10/-.

Period of deposit

The minimum period of recurring deposit is 6 months and maximum period is 120

months with multiples of 3 months

Maturity value

The maturity value (the amount payable at the end of the period of deposit,

comprising the principal and interest accrued thereon) can be calculated from the

interest charts supplied to the branches.

Entry in recurring deposit ledger

Separate ledger for recurring deposit should be used. All the relevant particulars

such as name of the depositor, date, period of deposit, rate of interest, due date,

maturity value and amount of installment.

Issue of pass book

The ledger keeper should prepare the pass book for recurring deposit at the time

of opening of account in the personal ledger and it should be authenticated by the

officer concerned of the branch before it is delivered to the customer. The date of

maturity should not be mentioned on the pass book but month on which it matures

can be written therein. The rate of interest can be mentioned therein. The

customer should be asked to bring the pass book in the branch whenever he pays

the installment.

Penal charges

In case the installment are not deposited in the respective calendar month in which

they due, Penal charges are to be recovered for the delay. The penalty is charged

at the rate mentioned below:

1) Rs 1.50 for every hundred rupees per month for deposits upto 5 years and less

2) Rs 2 for every hundred rupees per month for deposits over 5 years.

Loan against Recurring Deposit

Loan against Recurring Deposit can be allowed to the recurring deposit holder. To

avail the loan, the recurring deposit account holder should lodge the passbook

with the Bank duly discharged over the revenue stamp of appropriate value at the

space provided for in the last page of the passbook.

CURRENT ACCOUNTS

WHO CAN OPEN CURRENT ACCOUNT?

1) Person in his own name

2) Two or more persons in their joint names with operations as either or survivor,

Jointly/Jointly or Survivor, Anyone or Survivors or Survivor.

3) Cooperative societies, Partnership firms, limited companies, joint stock

companies, ssclubs, religious institutions, associations, Local bodies.

WHO CANNOT OPEN CURRENT ACCOUNT?

1) Minor

2) Pardanashin ladies

3) Illiterate Persons

4) Blind Persons

---------------------------------------------------------------------------------------------Type of accounts Additional Documents---------------------------------------------------------------------------------------------

1) Proprietary concern

a) Declaration of sole proprietorship

2) Partnership Firms

a) Partnership Letter

b) A copy of partnership deed

3) Joint Hindu families

a) Joint Hindu family letter

4) Limited companies

a) Certificate of incorporation

b) Certificate of commencement of business.

c) Memorandum and article of Association

d) Board’s resolution

5) Clubs, Schools, Societies,

a) Certificate of registration or Committee incorporation

b) A copy of Bye–laws, rules, regulations as the case may be

c) Memorandum of Association, if any

d) Resolution of the Board of Directors

e) Latest copy of Balance Sheet in case of Co-operative Societies.

6) Trusts

a) Instrument or document of truck or relevant extract thereof.

b) Resolution

c) Certificate of registration from charity Commissioner

7) Provident funds

a) Trust deed b) Rules of Provident fund c) Resolution

8) Guardians appointed

a) Court order or Guardianship by court in respect Certificate of Minors

Minimum Amount:

Account shall be opened with minimum balance of Rs.5000/-.

Issue of cheque book:

Cheque book may be issued to the account holder on the written request only.

Cheque book issued to the new account holder for first six month shall be

stamped ‘ New Account’.

Borrowings : Rs _________ Lacs

Bank has availed borrowing from NABARD and PSCB

Chandigarh as on 31-03-2010 Sanctioned limit for 2009-2010

Seasonal Agriculture Operations : ___________ __________

Revolving cash credit : ___________ __________

STNAP ___________ __________

C.C.Fertilizers ___________ __________

Own resources ___________ __________

MT Farm Sector ___________ __________

Non Farm Sector ___________ __________

Housing Loan ___________ __________

STAFF REQUIREMENT

Requirements of clerks was made in the bank last in the year 1980. Similarly

recruitment of class IV employees was made in the year 1986. A number of

posts are lying vacant. This shortage definitely affects the working of the bank.

ANNUAL TURNOVER AND AVERAGE WORKING FUND

The annual turnover of the PATIALA CENTERAL CO-OPERATIVE BANK

for the year 2008-09 is ________ lacs and for 2009-10 is ________ lacs

NAME OF THE ORGANISATION POSTAL ADDRESSThe Patiala Central Co-Operative Bank Ltd.H.O.,The Mall Patiala-147001.

MAIN TELEPHONE NUMBERS AT HEAD OFFICE Managing Director 5000270

District Manager 5000271

Senior Manager 5000272, 5003648

Chairman 5000273

Account Section 5000274

Stat Section 5000275

FAX NO: 0175-5003927

NAME OF DEPARTMENT WORKING IN CO-OP. BANKThere are various sections / departments which are working in the Bank. Here

we tell us about those departments / sections which play important role in

Banking. We tell about his Head of Department, its functions & number of

members working in the departments.

FUNCTIONS OF THE DEPARTMENT To maintain monthly statements etc; like as – LIC, Income Tax, GSLI

Grievance of public & branches.

Yearly statements.

Master policy of holder such as – EDLT, GI, and House Loan.

Statements of NABARD.

House Loan

To issue charge sheets of employees & maintain it.

To maintain Misc. files.

To maintain several records (with service book of employees)

Transfer of employees.

Increment concerned with employees.

Pass T.A. D.A. bill of employees

Salary of Employees’ maintained.

FUNCTIONS OF ACCOUNT SECTION The Misc. department reconciled the A/c of all the branches.

That department issues the drafts of local, state level /aims.

Furniture fixture.

This department keeps up the current A/c related with commercial bank.

It helps to maintain Sundry A/c.

Maintain the current A/c with P.S.C.B.

Passing the M.C.L. of societies.

Sanctioned of cash credit limits of societies.

Maintenance of receipt and dispatch register.

FUNCTIONS OF LOAN SECTION Sanction all types of loans; like as –

Consumer Loan / Composite /integrated loan /Vehicle Loan

Computer loan – only for staff member

Sanction all types of limits; like as – Cash Credit Traders

Cash Credit Farmers

Loan against property

Rural Godown

Mini dairy

Mai Bhago scheme

Renewed cash credit limits.

Physical verification done before sanctions the limits or loans.

Vehicle loan – two wheeler, three wheeler, & S.R.T.O.

Maintain statements for refinance &send to NABARD.

FUNCTIONS OF STAT SECTION Planning

Renewing

Compiling

Achievements (for net result of the bank)

Next year forecasting

ACCOUNT & FINANCE DEPARTMENTKeeping of account and maintaining books of accounts, preparing profits and

loss accounts, preparing budgets, pay rolls, recording receipts and payments,

preparing statement of assets and liabilities etc. are office activities of

specialized nature. All these are office work and performed by this special

office.

MISCELLANCEOUS ACTIVITES

OFFICE TIME : - The P.C.C.B. has fixed the timing for all the employees the

timing of this company is 10.00 a.m. to 5.00 p.m. The recorded of the arrival

& departure was recorded through Attendance register company maintenance

the attendance registers. All the employees come at 10 a.m. Entered the time

in the Attendance register in the first column and at time of lunch. The entire

employee entered. The departure time for lunch at 2.00 p.m. When they come

after lunch they will entered the arrival time 2.30 p.m. Than duty was

complete they will entered the departure time 5.00 p.m. and also entered the

total working hours in the full day. There is no extra system for recording the

time.

LOGBOOK: - All the vehicles of the company having logbook. Each

vehicle has own separate logbook. All the records of this vehicle were kept

in this logbook.

The perform shows that, how much kilometer are to be used by this log book

the person who used the vehicle fill this log book and signed on also fill that for

what purpose. The vehicle was used.

FACILITIES FOR STAFF: - The following facility is available to staff

members.

House Loan facility at subsidiary rate.

Scooter loan/ motorcycle/ car loan at subsidiary rate.

Festival loan.

Medical loan

LTC Loan (Loan Travelling Concession)

DA (daily allowance)

TA (travelling allowance)

Cash and Bank Balances: Rs____________ Lacs

Bank have maintained cash in hand and bank balances with PSCB Chandigarh

and other commercial banks for timely payments to customers the minimum

statutory requirement to maintain Cash reserve ratio of Cooperative banks and

RRB’S is 3% as prescribed by RBI. In the BOD resolution No ___ dated

________ revised the cash in hand / cash with banker limits. It is made clear that

these limits are optimum level which the branches are require to maintain.

Investments: Rs _________ Lacs

Bank has invested to maintain SLR ratio which is prescribed by RBI to DCCB’S

of their demand and time liabilities at rate of 25%

Bank have invested in FDR with PSCB with Chandigarh , govt securities SGL

Account with SBOP Patiala and other schedule banks for purpose of SLR .Bank

Have also purchased the shares of their Apex bodies Rs._____ lacs to borrow

PSCB Chandigarh. Detail of investment is as under:

Loans and Advances: The bank finances crop loan, investment credit and allied

activities through 272 primary agriculture cooperative societies to farmers in the

villages. Bank advances direct loans to farmers for purchase of two wheelers, mini

and commercial dairy, revolving cash credit to farmers for their socio, economic

needs, construction, repair, renovation of house in rural areas. Bank advances

personal loan, consumer loan, vehicle loan, house loan, education loan, Non

farming sector, Self help group, Commercial dairy, Loan against property,

Non performing advances:

Bank is not earning on these assets as RBI introduced income

Recognitions and prudential Norms in Cooperative banks to maintain provisions

against doubtful assets.

Solvency Ratios :

All Ratios are to be

calculated in

percentage terms.Ratios 31/03/08 31/03/09 31/03/10

Capital Adequacy Ratios

N.P.A./ Total Advances

Own Funds / Average Working Funds

THE PATIALA CENTRAL COOPERATIVE BANK LTD., H.O.PATIALA.

SCHEME FOR FINANCING RURAL HOUSING

Preamble With a view to provide housing facilities to the masses

which is a basic need of human beings, the GOI and

State Govt. are attaching utmost importance to the

financing of housing sector. Several housing schemes

for this are in operation. With a view to supplement

these schemes, it has been decided by the Coop. Bank

to start housing finance for acquisition, construction,

repair/alteration etc. This scheme has particularly been

designed for rural people, where other financing

institutions are reluctant to advance. The scheme shall

be called the “Scheme for Financing Rural Housing”

and is applicable to individual/members of house

building cooperative societies in the state of Punjab and

Chandigarh (U.T.)

1. Area of Operation Loan shall be advanced to individual and member of

Group Housing Cooperative Societies in the area of

operation Banks in the state of Punjab and Chandigarh

U.T.

2. Eligible Borrower Individuals

Cooperative Housing Societies

3. Purpose of Loan Loan shall be advanced under the scheme for purchase

of built up house, construction of a new house or

repair/ renovation/addition/alteration of existing house

in rural areas.

4. Ceiling on the cost The loan for a dwelling unit may not exceed Rs.15.00

lacs. In case land is being acquired the cost of land may

be reckoned as margin money, otherwise cost of land

should not be included in the project cost.

5. Quantum of Bank loan for Individual

The quantum of loan shall depend upon repaying

capacity of the borrowers, subject to 85% of cost of

construction or value of property to be purchased.

For construction/purchase of new House

a) maximum loan – Rs.15.00 lacsb) Margin Money – 15%c) Repayment period – Upto 15 years in

monthly/half yearly installments. Due date shall be 30th June and 31st December every year.

For Renovation/Repair/Addition/Alteration:

a) Maximum loan – Rs.5 lacs (for repair/ addition /alteration of House)

b) Margin money – 15%

c) Repayment period – 10 years in monthly/half yearly installments.

Loan eligibility shall be calculated on the basis of

repayment capacity of the borrower. The repaying

capacity shall be determined on the basis of land

holding and other known sources of income and

commitments/subsistence towards his family. A

reasonable installment to income ratio i.e. normally

upto 35% of the gross income can be taken as

repayment capacity of the borrower. Income of the co-

applicant can also be considered for loan eligibility.

6. Period of Loans The maximum period of loan shall be upto 15 years

and loan shall be repayable in equated monthly/half

yearly installments. The first installment shall become

due after expiry of 9 months from the date of drawl of

first installment in case of construction and whereas in

case of purchase of built up house, it shall start after

expiry of 3 months from the date of purchase.

7. Rate of Interest At present rate of Rural Housing is 11% and further it

shall be determined by financing bank from time to

time and debited to loan account. Interest

Is charged as contract made with the loanee. Penal

interest @ 2% over and above the normal rate shall be

charged in case of default, on the default amount for

the default period. 0.5% concession is allowed to

women

8. Security The security of the loan shall be first mortgage charge

on the house property to be financed by the bank by

way of registered regular mortgage. In addition to it

collateral security shall be taken @ 100% of the loan

amount in the form of agriculture land. Value of

agriculture land as per norms fixed by the District

Collector from time to time should be taken into

consideration. In case of employees of the Govt., semi

govt., Boards, Corporation, etc., constructing house

within rural areas, loan can be advanced on primary

security i.e. mortgage of house to be financed, along

with two good sureties and undertaking under section

39 of Punjab Cooperative Societies Act., 1961.

(amended vide RCS Circular letter

No.Credit/CA-2/HF/201/1/16264 dated 30.10.07)

9. Sanction and

disbursement of

Loan

The loan shall be sanctioned after it is ascertained that

the applicant fulfils all the requirements and enjoys

reputation as a good pay master. For construction loan,

the borrower should be in possession of plot with

unquestionable and indisputable title. In case of built

up house, the payment shall be made @ 75% of total

value of the house/Loan sanctioned. Payment shall,

however, be made to third party in lump sum after

getting margin money from the borrower and

remaining 25% shall be released after obtaining

Mortgage Deed in favour of the Bank. For construction

of house, loan shall be disbursed in 2 installments,

which is as under:-

i) 1st installment at the time of starting 50% construction up to plinth level

ii) 2nd installment after completion up to 50% Roof level.

2nd installment shall be disbursed after ensuring proper

utilization of previous installment.

10. Processing Fee &

Other Charges

Processing Fees and other charges @ 0.25% of loan

amount shall be charged.

11. Documentation &

general requirements.

Following documents are required for financing under

Rural Housing Scheme

1. Application form

2. Loan agreement

3. D. P. Note

4. Two latest attested passport size photographs

of the borrowers.

5. Proof of residence.

6. Source of Finance for own contribution.

7. Copy of approved drawing of the proposed

dwelling unit to be constructed/purchased from

Sarpanch / Numberdar.

8. Agreement of sale deed.

9. Details of cost/estimate from approved

Architecture/ Valuer/ Engineer of the house to be

purchased/ constructed /renovated /addition to be

made.

10. Non-encumbrance certificate.

11. Latest Jamabandi and Girdawari.

12. Certificate of ownership of land/property

situated within Red Line (i.e. Phirni) of the village

from the Sarpanch/Numberdar/Partwari.

13. The borrower shall mortgage his existing

property : to be constructed/purchased in favour of

the bank for the full value of loan.

14. The borrower shall be required to submit

collateral security @ 100% of the loan amount.

SCHEME FOR URBAN HOUSING LOAN SCHEME

1. Short title,

Extent and

Commencement

a) This scheme may be called Urban Housing Loan

Scheme to individual and members of house

Building Societies by The Punjab State

Cooperative Bank/Central Coop .Bank (s) in the

State of Punjab.

b) The scheme shall be implemented through the

branches of the PSCB/Central Cooperative banks

concerned and shall be limited to urban areas

falling in the area of operation of the lending Bank.

c) It shall come into force from the date as the

Registrar Coop.Societies, Punjab Chandigarh

decides.

2. Definitions In this Scheme unless the context otherwise requires :-

a) ‘Act’ means, the Punjab Cooperative Societies

Act 1961 as amended from time to time.

b) ‘Bye-laws’ means the registered byelaws of the

State / Central Cooperative Banks concerned.

c) ‘Bank’ means State/Central Cooperative Bank

registered under the Act.

d) ‘Committee’ means the Governing body of the

Cooperative Bank by whatever name called to

which the management of the affairs of the bank

is entrusted.

e) ‘Government’ means Government of Punjab.

f) ‘Nominal Member’ means a person admitted to

membership of he bank under Act. Rules and

Bye-laws.

g) ‘Officers’ means the President, Vice President,

Chairman, Vice Chairman, Managing Director,

Manager, Liquidator and Administrator includes

any other person empowered under the rules or

the bye laws to give direction in regard to the

business of the bank.

h) ‘Registrar’ means a person appointed to perform

the function of the Registrar of Cooperative

Societies under the Act.

i) ‘Rules’ means the Punjab Cooperative Societies

Rule 1963.

j) Urban area means area falling under Nagar

Panchayat, Notified Area Committee, Municipal

Council, Municipal Corporation and Cantonment

Board.

k) Family member means Spouse, Son, Son’s wife,

Unmarried Daughter.

3. Purpose Loan shall be advanced for the purchase of plot, purchase

of built up house, construction of house or repair,

renovation, additions, alteration, etc. in the existing

house. Loans shall also be given for acquiring a plot, flat,

house in an existing or proposed Cooperative House

Building Society and approved scheme of PUDA,

Housefed, Improvement Trust or any other Govt.

Agency.

Loan can also be advanced for take over of an existing

loan advanced by any other bank/financial institution

subject to the condition that the loan account should have

remained in the standard category of assets for atleast last

2 years in the previous financial institution.

4. Eligibility An individual residing in the area of operation of the

Bank may apply for the loan in his individual name or

along with another person being joint owner of the

land/property as co-applicant. The applicant and co-

applicant, if any will be enrolled as nominal members of

the bank under the Act, Rules and Bye Laws.

Note : The Borrower should not have defaulted in any

other loan.

The applicant shall be eligible for a total house building

loan not exceeding 75% of the total cost of house (cost of

construction + cost of plot, if plot is to be purchased) and

the loan out of it for purchase of plot will not exceed

50% of the total loan sanctioned. The remaining,

exceeding or upto 50% shall be utilized for construction

of house thereon”.

The employees of the Punjab State Cooperative Bank or

Central Cooperative Banks who have already availed

house loan under Govt. or Bank Scheme from the Punjab

State Coop. Bank or Central Cooperative Banks can also

get loan under the scheme subject to maximum of Rs.25

lacs under both house loan scheme. It will be further

subject to the repaying capacity of the employee in

accordance with their last salary statement. Further this

loan to employee will be against second charge on the

said property.

5. Quantum of

Loan

The quantum of loan will depend upon the repayment

capacity of applicant to be calculated by the bank as

under :

21 yrs. To 45 yrs of age.

48 times of the net monthly income (NMI) or 4 times of

Net Annual Income (NAI)

Above 45 years

36 times of Net Monthly Income (NMI) or 3 Times of

Net Annual Income Income of the spouse or family

member can be considered if spouse or family member is

co-applicant or guarantor. Maximum loan amount for

construction of house or purchase of house/flat, purchase

of plot + construction thereon under this scheme is Rs.25

lacs or 75% of total cost of construction, purchase of

house (cost of construction + cost of plot, if plot is to be

purchased), whichever is less.

The loan for purchase of plot will not exceed 50% of the

total loan sanctioned.

For repair/renovation maximum amount of loan shall be

Rs.5 lacs.

For addition/alterations in existing house, maximum loan

amount shall be Rs.10 lacs.

6. Interest At present rate of Urban Housing is 11% and further it

shall be determined by financing bank from time to time

and debited to loan account.

Interest

Is charged as contract made with the loanee. Penal

interest @ 2% over and above the normal rate shall be

charged in case of default, on the default amount for the

default period. 0.5% concession is allowed to women

7. Period of Loan/

Repayment of

Loan

Maximum period (including moratorium period) shall be

15 years or attaining the age of 65 years whichever is

earlier. In case of repair/renovation /addition/alteration

loan cases maximum period shall be 10 years.

Repayment of the loan shall, however, be in monthly

equated installment to be started from 9 months after the

first installment of loan disbursed. In case of the farmers

availing loan under this scheme, repayment of loan may

be in half yearly installments i.e. 30th June and 31st

December every year.

8. Security Security for the loan is a first mortgage of the property to

be financed normally by way of deposit of original title

deeds.

9. Disbursal of

Loan

The loan shall be disbursed after the property is

technically appraised, all legal documentation completed

and borrower having invested own contribution in full

(own contribution is the total cost of proposed property –

Bank loan).

In case of purchase of plot + construction, the

disbursement shall be in 3 installments as follows:-

For purchase of plot – 50%

Upto roof level – 25%

After roof level – 25%

Loan will be disbursed at one go for purchase of a built

up house. However, for construction on pre-owned plot,

the disbursement shall be in two installments.

1st Installment for construction after plinth level – 50%

2nd Installment for construction of the building after roof

level – 50%

Loan for repair, additions, alterations and

renovation shall be disbursed in two equal

installments. The second and subsequent installment

of loan shall be disbursed only after ensuring the

utilization of previous installment to Bank’s

satisfaction. Bank shall not be bound to accept

progress construction as assessed by builder.

10. Fee & Other

Charges

A processing fee @0.25% of the loan amount sanctioned

will be charged.

11. Documentation

– Pre-sanction

stage.

1. Identify proof.

2. Residential Proof.

3. Self attested recent passport size photographs of the

applicant and co-applicant (two).

4. Copy of Income-tax Return for the three years duly

acknowledged by ITO concerned.

5. Sources of Finance for own contribution.

6. Non-encumbrance certificate.

7. Search report & legal opinion alongwith photograph of

the property.

8. Original title deed.

9. Spot Physical verification.

10. Purchase agreement of property.

11. Income Proof/J-Form.

12. Loan application Form

Post – Sanction Stage

1. Loan agreement.

2. Demand Promissory Note.

3. Mortgage Deed

4. Letter of Lien and Set Off

5. Letter of Waiver

6. Letter of Guarantee

Employed applicants : Undertaking from the employee

under section 39 of Punjab Cooperative Societies Act,

1961.

12. Insurance Comprehensive insurance in the joint names of the

borrower and the bank shall be made of the property

mortgaged against fire, riots earthquake lighting floods

etc. Incase of default bank will be at liberty to get a

policy renewed by debit to house loan account of the

borrower.

13. Additional

Documents in the

construction cases

a) Construction Plan approved by a competent

authority.

b) Detailed Cost estimate from Registered Architect/

Civil Engineer.

c) A photocopy of registered title deeds or allotment

letter (in case of member of Cooperative House

Building Societies)

14. In purchase of

Built Up House

cases.

a) Agreement of sale/sale deed/detailed cost

estimate from approved engineer.

b) In case of allotment of flat/houses, photocopy of

allotment letter and details of balance payment, if

any.

15. Disputes If at any stage any dispute arises, it will be

settled/referred under the Punjab Cooperative Societies

Act 1961.

SCHEME FOR GRANTING OF LOAN AGAINST PROPERTY

1. Short title, extent and commencement:-

i. This scheme may be called Scheme of LOAN AGAINST PROPERTY

(LAP)

ii. The scheme shall be implemented through the branches of the Punjab State

Cooperative Bank Limited & Central Cooperative Banks only through an

urban branch in the State of Punjab and shall be available to Individuals.

Beneficiaries should be enrolled as Nominal Member of the bank. It shall

come into force from the date as the Registrar, Coop.Societies, Punjab,

Chandigarh decides.

2. Definitions : In this Scheme unless the context otherwise requires :

a) Act’ means, the Punjab Cooperative Societies Act 1961 as amended from

time to time.

b) ‘Bye-laws’ means the registered byelaws of the State / Central

Cooperative Banks concerned.

c) ‘Bank’ means State/Central Cooperative Bank registered under the Act.

d) ‘Committee’ means the Governing body of the Cooperative Bank by

whatever name called to which the management of the affairs of the bank

is entrusted.

e) ‘Government’ means Government of Punjab.

f) ‘Nominal Member’ means a person admitted to membership of he bank

under Act. Rules and Bye-laws.

g) ‘Officers’ means the President, Vice President, Chairman, Vice Chairman,

Managing Director, Manager, Liquidator and Administrator includes any

other person empowered under the rules or the bye laws to give direction

in regard to the business of the bank.

h) ‘Registrar’ means a person appointed to perform the function of the

Registrar of Cooperative Societies under the Act.

i) ‘Rules’ means the Punjab Cooperative Societies Rule 1963.

j) Family member means Spouse, Son, Son’s wife, Unmarried Daughter.

3. Purpose

The scheme is for providing finance against mortgage of immovable property

situated at Chandigarh, U.T. Periphery by Punjab State Cooperative bank and at

urban areas (within Municipal Limit) by Central Cooperative bank through its

urban branches, and is designed to offer instant solutions relating to socio-

economic needs such as children’s higher education, travel, daughter’s

marriage,medical emergencies, etc. The loan will, however be not avail for

speculative purpose.

4. Eligibility

1. An individual residing in and having a self occupied immovable property

in the area mentioned in the Purppse Clause no.3 may apply for the loan in

his individual name or alongwith another person being joint owner of the

land/property as co-applicant. The applicant and co-applicant, if any, will

be enrolled as nominal members of the bank under the Act, Rules and

Bye-laws. The age of borrower should not exceed 65 years at the time of

applying for the loan.

2. Employees of the PSCB/DCCB can avail this loan against property

already mortgaged with the bank by creating second charge of property

subject to the repaying capacity of the employee as per the scheme of loan.

5. Type and Quantum of Loan :

The loan can be given in the shape of Term Loan or Credit Limit. Loan can also

be given for both purposes i.e. partly for term loan and partly for credit limit

subject to quantum of loan for both the loan and limit will not exceed from

Rs.25.00 lacs. Quantum of loan will be three times of net annual income or 50%

of value of property, whichever is less. However maximum loan amount will be

Rs.25 lacs. Income of family member can be considered for the purpose of

eligibility of loan.

6. Interest:

Interest shall be charged @ 13% p.a. compounded quarterly or as may be revised

by the bank from time to time. In case of defaults a penal interest @ 2% p.a. over

and above the normal rate on the default amount and default period shall also be

charged. 0.5% concession is allowed to women

7. Security:

a) Security for the loan is a first mortgage of the property, against which

loan/limit is granted, by way of deposit of title deeds. The valuation of the

property will be based on the basis of last reserve price of the auction fixed

by the Chandigarh Administration. For the properties situated out side the

Chandigarh, it will be the official rates of registration fixed for the same

by respective Municipal or Registration Authority or current market value

whichever is lower.

b) Suitable one guarantee acceptable to the bank. The guarantor should have

its net worth equal to or more than the loan amount to advanced. In case

the income of family member is taken while calculating loan eligibility,

he/she must be taken as guarantor.

c) Post dated cheques for the months for which repayment of term loan

option is due.

8. Repayment of Loan:

a) Loan together with interest is repayable in maximum 72 equal monthly

installments.

b) Overdraft facility is to be renewed/reviewed annually.

9. Processing Fees:

0.5% of the sanctioned amount shall be charged. In case of limit of 0.25% will be

levied every year on the credit limit.

10. Documentation:

a. Loan application Form.

b. Loan Agreement.

c. D.P. Note.

d. Mortgage Deed.

e. Non-Encumbrance Certificate.

f. Letter of lien and set off.

g. Map and Current Valuation Report of the property from Govt. Approved

Architect.

h. Search report and legal opinion along with the photo.

i. Letter of continuity

j. Original Title Deed.

11. Insurance:

Comprehensive Insurance in the joint names of the borrower and the bank shall be

made of the property mortgaged against fire, riots, earthquake, lightning, floods,

etc. In case of default bank will be at liberty to get a policy renewed by debit to

loan account of the borrower.

12. Documents required from applicants:

Documents required from Salaried Individuals

Proof of Residence – Any one of Ration Card/Telephone Bill/Electricity

Bill/Voters Card.

Proof of Identity – Any one of Voters Card/Drivers License/Employer

Card/Passport/PAN Card.

Latest Bank Statement/Passbook (where salary/Income is credited for past

6 months).

Latest 3 months Salary Slip with all deductions & Form 16 for last 2 years.

Copies of all Property Documents.

Self attested recent passport size photographs of the applicant and co-

applicant (two).

Copy of Income-tax Returns for last two years.

Documents required from the non-salaried individuals

Income proof.

Proof of Residence – Any one of Ration Card/Telephone Bill/Electricity

Bill/Voters Card.

Proof of Identity – Any one of Voters Card/Drivers License/Employer

Card/PAN Card.

Latest Bank Statement/Passbook (where salary/Income is credited for past

6 months).

Copies of all Property Documents.

Copy of Income Tax Returns for last two years.

13. Disputes

If at any stage any dispute arises, it will be settled/referred under the Punjab

Cooperative Societies Act 1961 or any other relevant act at the sole discretion of

the Bank.

SECOND HAND VEHICLE LOAN SCHEME

In the modern era there is a heavy demand for purchase of second hand vehicles

and the banks have surplus loan-able funds to diversify the loan portfolio and to

provide financial assistance to the borrowers for purchase of second hand vehicle,

this scheme has been diversified.

A. Short title, extent and commencement:-

a. This scheme may be called ‘Second Hand Vehicle Loan Scheme’

to individual sole proprietor professional and partnership concern

residing in the area of operation of the lending bank by the State

and Central Banks as the case may be.

b. The scheme shall be implemented through the branches of the State

and Central Coop. Banks in UT and in the State of Punjab.

c. It shall come into force from the date of approval by the Registrar

Coop.Societies Punjab Chandigarh.

d. The vehicle to be purchased by the loanee should not be more than

3 years old, should be accident free, one time road tax paid,

bearing Registration Number of U.T. Chandigarh or the State of

Punjab.

B. Definitions :

In this Scheme unless the context otherwise requires:

a) Act’ means, the Punjab Cooperative Societies Act 1961 as amended from

time to time.

b) ‘Bye-laws’ means the registered byelaws of the State / Central

Cooperative Banks concerned.

c) ‘Bank’ means State/Central Cooperative Bank registered under the Act.

d) ‘Committee’ means the Governing body of the Cooperative Bank by

whatever name called to which the management of the affairs of the bank

is entrusted.

e) ‘Government’ means Government of Punjab.

f) ‘Nominal Member’ means a person admitted to membership of he bank

under Act. Rules and Bye-laws.

g) ‘Officers’ means the President, Vice President, Chairman, Vice Chairman,

Managing Director, Manager, Liquidator and Administrator includes any

other person empowered under the rules or the bye laws to give direction

in regard to the business of the bank.

h) ‘Registrar’ means a person appointed to perform the function of the

Registrar of Cooperative Societies under the Act.

i) ‘Rules’ means the Punjab Cooperative Societies Rule 1963.

C. Purpose

Loan shall be advanced for the purchase of second hand vehicle such as car, jeep,

sumo, qualis, etc. for personal/public use.

D. Eligibility

An individual, sole proprietor, professional and partnership concern residing in

the area of operation having permanent account number provided by the Income

Tax authority in urban areas and in case of rural area having at least 5 acres of

agriculture land and should not be defaulter. The applicant will be enrolled as

nominal member of the bank under the Act, Rules and Bye-laws.

E. Quantum of Loan :

The quantum of loan shall depend upon the model and present value of the

vehicle. Present value shall be the value as provided by Sah & Sanghi in the

current price Index and also available on Website htpp.www

automartindia.com/Sah & Sanghi priceindex.asp or the value approved by the

registered surveyor of any GIC with the condition that the insurer has to get

insurance cover from the concerned Insurance Company on whose list the name

of the surveyor appears, which is lowest shall be the quantum of loan. The

maximum loan amount shall be Rs.5 lacs or 75% of the assessed price of the

vehicle whichever is less.

F. Interest:

At present rate of second hand vehicle loan is 13% and further it shall be

determined by financing bank from time to time and debited to loan account.

Interest is charged as contract made with the loanee. Penal interest @ 2% over

and above the normal rate shall be charged in case of default, on the default

amount for the default period. 0.5% concession is allowed to women

G. Period of Loan/Repayment of Loan

Maximum period of loan shall be five years. Repayment of the loan shall, be in

monthly equated installment. In case of urban borrowers and half yearly equated

in case of rural borrowers due on 30th June and 31st December. Moratorium period

of one month shall be allowed under the scheme.

H. Security

The security for the loan is 1st Hypothecation of the Vehicle in the name of the

bank entered in RC of the vehicle. Two good sureties residing in area of operation

of the bank and having a PAN Card in case of urban areas and two sureties of the

status of borrower in case of rural area. The sureties shall be enrolled as nominal

member of the bank under the Act.

OR

A collateral security to the extent of 100% of loan in the shape of assignment of

life insurance policy, pledge of NSCs, KVPs, Term Deposits of own bank, in case

the borrower is not willing to give sureties.

I. Disbursal of Loan

The loan will be disbursed after the appraisal of all legal documentation

completed and borrower having deposited his share of margin in the SB account.

The disbursement will be third party payment by way of banker cheque/Demand

Draft in the name of the seller (owner of the vehicle) delivered through and under

receipt from borrower.

J. Fee and Other Charges

A processing fee of 0.25% of the loan amount sanctioned shall be charged.

K. Documentation

Documents

1) Identity proof

2) Residential proof

3) Two self attested recent passport size photographs of the applicant and

sureties each

4) Photocopy of the PAN

5) Copy of Income Tax Return for last three years duly acknowledged by

ITO

6) Photocopy of the Driving License

7) A photocopy of the RC of the Vehicle and case of rural people copy of

Fard, Jamabandi.

b. Loan application form

c. Loan agreement

d. DP Note

e. Hypothecation deed/Collateral Security/Agreement Bond from

Sureties.

f. Agreement of Sale.

g. Certificate of present value of car assessed by Surveyor of company

guide or as determined on the basis of guidelines of the Punjab Govt.

on the Subject.

L. Insurance

Comprehensive insurance in the joint names of the borrower and the bank shall be

made at the cost of the borrower. In case of default bank will be at liberty to get a

policy renewed by debiting to loan account of the borrower.

M. Dispute

If at any stage any dispute raised, it shall be settled/referred for arbitration under

the provisions of Punjab Coop.Societies Act. 1961 and rules frames there under

and bye-laws of the bank.

BRANCHESA part from its Head Office at Patiala, the bank has been in the service of the

people through a network of its 43 branches spread all over the district of Patiala.

16 out the 43 branches of the bank are working at the focal points. Earlier 8

branches were shifted on 14-3-1993 to CCB Fatehgarh Sahib on re-organization

of the district. 3 branches were shifted on 1-10-2006 to CCB SAS Nagar Mohali.

Suggestions1. More Branches should be opened in the Rural and Urban Areas

to Achieve the targets. Samana Sub division is neglected in this

Area as only Samana and Gajewas Branches are functing.

2. Since 1980 no recruitment made in this Bank. Staff should be

recruited for smooth working.

3. Branches may be computerized.

4. Rate of Interest may be reviewed periodically as Mai Bhago

Scheme Advances at Rate of 8.5% Bank borrowers funds from

Apex Bank at the rate of 10.5%.

5. 11 Single men Branches are functioning so, there is a great

operation risk in the Bank.

6. Individual Loans overdue are increasing in the Loan Portfolio

N.F.S/C.C.T. / Consumer Loan.

7. ATM May be installed, locker facility is provided in all the

Branches.

THE PATIALA CENTRAL COOP. BANK LTD., PATIALA.LIST OF FINANCIAL PARAMETERS AS ON 31/03/2010

1.(a) Share Capital (Rs.in Crores)Share

CapitalOutstanding

As on31/03/2008

OutstandingAs on

31/03/2009

OutstandingAs on

31/03/2010

%age Change(+/-)

(31/03/08 To 31/03/2009)

%age Change(+/-)

(31/03/09 To 31/03/2010)

Members 876.23 1082.97 1304.26 23.59 20.43

State Govt. 90.00 70.00 70.00 -22.22 --

1.(b) Own Funds (Rs.in Lacs)Own

FundsOutstanding

As on31/03/2008

OutstandingAs on

31/03/2009

OutstandingAs on

31/03/2010

%age Change(+/-)

(31/03/08 To 31/03/2009)

%age Change(+/-)

(31/03/09 To 31/03/2010)

5239.28 5277.36 6164.23 0.72 16.81

2.(a) Deposits – Time-wise (Rs.in Lacs) Outstanding

As on31/03/2008

OutstandingAs on

31/03/2009

OutstandingAs on

31/03/2010

%age Change(+/-)

(31/03/08 To 31/03/2009)

%age Change(+/-)

(31/03/09 To 31/03/2010)

Dem. Deposit 11327.18 11570.23 14264.91 2.15 23.29

Time Deposit 16616.43 19490.85 20935.13 17.30 7.41

TOTAL 27943.61 31061.08 35200.04 11.16 13.33

2.(b) Deposits – Source-wise (Rs.in Lacs)Source-wise Deposis

OutstandingAs on

31/03/2008

OutstandingAs on

31/03/2009

OutstandingAs on

31/03/2010

Growth Rate(31/03/08 To31/03/2009)

Growth Rate(31/03/09 To31/03/2010)

Individuals 23892.84 26333.50 30145.11 10.21 14.47

Coop. Societies

1713.32 1592.98 1873.22 -7.02 17.59

Other Sources

2337.45 3134.60 3181.71 34.10 1.50

TOTAL 27943.61 31061.08 35200.04 11.16 13.33

2.(c) Share of Deposit in the DistrictAs on 31/03/2008 As on 31/03/2009 As on 31/03/2010

% age share of Deposit of CCB in district.

3.72 3.20 3.23

Growth rate to total deposits in district

14.38 29.11 9.35

Growth rate of deposits of CCB

16.30 11.16 13.33

2.(d) Deposits (No.of Accounts)

01/04/2007 to 31/03/2008

01/04/2008 to 31/03/2009

01/04/2009 to 31/03/2010

Deposit A/cs at the beginning of the year

161525 153510 157405

Deposit A/cs opened during the year 11667 11891 10922Deposits A/cs closed during the year 19682 7996 9090Deposits A/cs at the close of the year 153510 157405 159237No. frill A/cs opened during the year -- -- --No.of Sehkari Bima Yozna A/cs opened during the year

1725 1099 2956

No.of deposit A/cs opened in the deposit campaign week, if any, during the year

-- -- --

2.(e) Average Deposits: To be calculated on monthly outstanding balances basis.

During 01/04/07

to 31/03/2008

During 01/04/08

to 31/03/2009

During 01/04/09

to 31/03/201

0

%age Change

(+/-)(31/03/08

To31/03/2009)

%age Change(+/-)31/03/09 To 31/03/2010)

Avg. Deposit 24972.12 28703.77 33249.88 14.94 15.84

3 (a) Borrowings : All types of Borrowings (Specify them). (Rs.in lacs)

Borrowings OutstandingAs on

31/03/2008

OutstandingAs on

31/03/2009

OutstandingAs on

31/03/2010

%age Change

(+/-)(31/03/08

To31/03/09)

%age Change

(+/-)31/03/09

To 31/03/10)

From PSCB 10619.35 1212.79 10135.85 -88.58 735.75

From NABARD 32275.92 44628.80 43437.97 38.27 -2.67

From any other -- -- -- -- --

3.(b) Average Borrowings (To be calculated on monthly outstanding balances) (Rs.in lacs)

During 01/04/07 to 31/03/2008

During 01/04/08 to 31/03/2009

During 01/04/09 to 31/03/2010

%age Change(+/-)(31/03/08 To31/03/09)

%age Change(+/-)31/03/09 To 31/03/10)

Average

Borrowing37505.79 41083.30 45260.69 9.54 10.17

4.(a) Advances Outstanding (Rs.in Lacs)

Type of Advances

OutstandingAs on31/03/2008

OutstandingAs on31/03/2009

OutstandingAs on31/03/2010

Growth Rate(31/03/08 to31/03/2009)

Growth Rate(31/03/09 to31/03/2010)

Agri. (Crop Loan) 31772.13 37329.01 43501.76 17.49 16.54

R.C.C.(Farmer) 10021.74 9975.33 10465.23 -0.46 4.91

C.C. Traders 1952.15 2132.43 1931.09 9.23% -9.44

N.F.S. (Comp. Integrated, SRWTO)

1548.73 1386.24 1195.35 -10.49 -13.77

CD Loan 1638.00 1776.28 2147.52 8.44 20.90

Personal Loan 1471.08 1559.20 1765.61 5.99 13.24

Urban H.Loan 1043.71 1191.93 1269.44 14.20 6.50

Rural H.Loan 2100.75 2110.89 2323.77 0.47 10.08

Vehicle Loan 354.69 562.40 838.86 58.56 49.16

Education Loan 28.84 38.57 54.49 33.73 41.28

Loan Agst.Property 13.54 106.05 136.99 683.23 29.17

Loan Against Coop.Rent

-- -- 10.00 -- 100.00

Loan for Earnest Money

-- -- -- -- --

Second hand Car -- -- -- -- --

LoanTwo Wheelers

Loan to Farmers736.17 745.72 709.56 1.30 -4.85

Mini Dairy Loan 403.04 334.03 275.17 -17.12 -17.62

Commercial Dairy -- -- -- -- --

Govt. Sponsored -- -- -- -- --

Loan to Staff (on which simple intt.)

62.71 79.19 120.05 26.28 51.60

Other Advances (Head-wise Detail)

13487.57 12130.47 15015.05 -10.06 23.78

TOTAL : 66634.85 71457.74 81759.94 7.23 14.42

Other Advances (Head-wise Detail) (Rs.in lacs)

Type of Advances

OutstandingAs on31/03/2008

OutstandingAs on31/03/2009

OutstandingAs on31/03/2010

Growth Rate(31/03/08 To31/03/2009)

Growth Rate(31/03/09 To31/03/2010)

S.T.N.A.P. 2232.95 2318.12 2187.24 3.81 -5.65

Cash Credit Socy. 114.00 168.10 239.91 47.45 42.72

Loan Agst.Deposit 1679.13 597.92 711.36 -64.39 18.97

Loan Agst. N.S.C. 62.29 52.22 40.36 -16.16 -22.71

O.D.to Staff 240.91 344.44 384.44 42.97 11.61

U.L.Society 570.73 559.75 532.66 -19.24 -4.84

M.T.Agri./Conver. 8382.02 7084.41 9782.02 -15.48 38.08

S.H.G./ S.G.S.Y. 57.20 59.42 93.63 3.88 57.57

M-Cycle Loan 1.16 1.59 1.05 37.07 -33.96

Rural Godown 9.49 9.49 12.34 -- 30.03

Computer Loan 34.53 30.42 27.87 -11.90 -8.38

Sway Rojgar Yozna 13.08 12.83 11.10 -1.91 -13.48

Car Loan 12.16 7.81 11.41 35.17 46.09

Pension Loan 52.99 34.42 17.29 -35.04 -49.77

Loan for Bank Bld. 3.66 3.36 3.11 -8.20 -7.44

Mai Bhago Scheme 19.01 778.09 906.61 3993.06 16.52

Loan Single Cow 0.35 1.88 3.16 437.14 68.09

C.Cr.Agst.Property 1.91 45.52 15.67 22.83 -65.58

Bhai Lalo Scheme -- 10.68 33.82 -- 216.67

TOTAL : 13487.57 12130.47 15015.05 -10.06 23.78

4.(b) No. of Loan A/cs01/04/2007 to

31/03/200801/04/2008 to

31/03/200901/04/2009 to

31/03/2010Indivi.Loan A/cs at the beginning of year

29813 30362 31804

Indivi.Loan A/cs opened during the year

3840 6290 4961

Indivi.Loan A/cs closed during the year

3291 4848 5231

Indivi.Loan A/cs at the close of the year

30362 31804 31534

Total No.of members of PACS (at the close of the year)

142595 146879 150755

4.(c) Average Advances (To be calculated on monthly outstanding balances) (Rs.in Lacs)

During 01/04/07 to 31/03/2008

During 01/04/08 to31/03/2009

During 01/04/09 to 31/03/2010

% age Change (+/-) (31/03/08 To31/03/2009)

% age Change (+/-)31/03/09 to 31/03/2010)

Avg.Advances 58872.80 65380.29 72150.22 11.05 10.35

5. Investments (Specify them)

Type As on 31/03/08 As on 31/03/09 As on 31/03/10 SLR Investments 6982.56 7558.62 9152.76 Non SLR Investments 344.42 494.00 1070.00

6. Average Working Fund (Based on monthly outstanding balances) (Rs.in Lacs)Average Working

Fund

As on31/03/2008

As on 31/03/2009

As on 31/03/2010

% age Change (+/-) (31/03/08 To 31/03/2009)

% age Change (+/-)31/03/09 to 31/03/2010)

70175.20 78463.52 87385.73 11.81 11.37

7. Non Banking Assets (Rs.in lacs)

As on 31/03/2008

As on 31/03/2009

As on 31/03/2010

Total Amount upto 7 years of acquisition -- -- --Above 7 years of acquisition 2.52 2.52 2.52

8. Non Fund Income (Rs.in lacs) Year Total Income Growth Rate

As on 31/03/2008 57.30 -7.32 As on 31/03/2009 53.53 -6.58 As on 31/03/2010 84.67 58.17

9. Net Profits (Rs.in lacs) Year Net Profit

Profit before Tax Profit after Tax

As on 31/03/2008 138.39 107.49 As on 31/03/2009 133.43 40.28 As on 31/03/2010 180.45 125.45 Growth Rate over last year (31/03/2008 to 31/03/2009) -3.58 -62.53Growth Rate over last year (31/03/2009 to 31/03/2010) 35.24 211.44

10.(a) Interest Paid / Received

(Rs.in lacs)Particulars

Outstanding As on 31/03/2008

Outstanding As on 31/03/2009

Outstanding As on 31/03/2010

% age Change (+/-) (31/03/08 to 31/03/2009)

% age Change (+/-)(31/03/09 to 31/03/2010)

Interest Paid on deposits

1476.83 1828.90 2090.80 23.84 14.32

Interest Paid on Borrowings

2038.50 2251.39 2262.52 10.44 0.49

Intt.received on Loans&Advances

4487.98 4770.99 5499.14 6.30 15.26

Intt./Dividend Received on Investments.

547.98 628.78 683.25 14.74 8.66

10.(b) Interest Subvention 1/4/07 to 31/3/08

1/4/08 to 31/3/09

01/04/09 to 31/03/10

Interest Subvention Claimed

122.13 42.14 157.64

Interest Subvention Received

116.58 -- 42.14

11. Financing Marginal/Interest Spread

(Rs.in lacs)During01/04/07 to 31/03/08

During 01/04/08to 31/03/09

During 01/04/09 to 31/03/10

% age Change (+/-) 31/3/08

% age Change (+/-) 31/03/09

to 31/3/09 to 31/3/10i Average Cost of

Borrowing5.43 5.48 5.00 0.92 -8.76

ii Average Cost of Deposits 5.91 6.37 6.28 7.78 -1.41iii Weighted Avg. Cost of

Funds5.00 5.20 4.98 4.00 -4.23

iv Avg. yield on Loans & advances

7.62 7.30 7.62 -4.20 4.38

v Average yield on Investment

8.48 8.16 7.54 -3.77 -7.60

vi Weighted Avg. yield on Assets

7.17 6.88 7.07 -4.04 2.76

vii Financing Margin (vi-iii) 2.17 1.68 2.09 -22.58 24.40viii COM (% age to A.W.F.) 1.58 1.41 1.41 -10.75 --ix Risk Cost 0.55 0.20 0.37 -63.64 85.00x Misc.Income as %age to

A.W.F.0.08 0.07 0.10 -12.50 42.86

xi Break Even Point (viii+ix-x) /vii

2.05 1.54 1.68 -24.88 9.09

Break Even Point 74402.30 70598.81 67625.36 -5.11 -4.21

12. Cost of Management (Rs.in lacs)

As on 31/03/08

As on 31/03/09

As on 31/03/10

% age Change (+/-) 31/03/08 to 31/3/2009

% age Change (+/-) 31/03/09 to 31/3/2010

Establishment Cost 899.44 891.67 999.95 -0.86 12.14

Other Cost 208.03 216.92 228.09 4.27 5.15

Total 1107.47 1108.59 1228.04 0.10 10.77

13.Branch Analysis (Rs.in

lacs) As on

31/3/08As on 31/3/09

As on 31/3/10

% age Change (+/-) 31/03/08 to 31/3/2009

% age Change (+/-) 31/03/09 to 31/3/2010

Total No.of Branches 44 44 44 -- --

No.of Branches in Loss 2 -- 5 -- --

Deposit Per Branch 635.08 705.93 800.00 11.16 13.23

Loans and Advances per 1514.43 1624.03 1858.18 7.23 14.42

Branch

Business per Branch (3+4) 2149.51 2329.96 2658.18 8.39 14.09

Intt. Income Per Br. 114.45 122.72 140.51 7.22 14.50

Non Fund Income Per Branch

1.30 1.22 1.92 -6.15 57.38

Cost of Management Per Branch

25.17 25.20 27.91 0.12 10.75

No.of Branches whose COM is above 2% of Ag.Wrk.Funds

2 2 2 -- --

Profit Per Branch 2.44 0.92 2.85 -62.30 209.78

No.of Single-man Br. -- 11 14 -- 21.43%

14.Employee Analysis (Rs.in lacs)

Out-standing As on 31/3/2008

Out-standing As on 31/3/2009

Out-standingAs on 31/3/2010

%age Change (+/-) 31/03/08 to 31/03/2009

%age Change (+/-) 31/03/09 to 31/03/2010

Per Employee increase in Deposit

20.61 16.67 23.25 -19.12 39.47

Per Employee increase in Loans

47.94 25.79 57.88 -46.20 124.43

Per Employee increase 68.55 42.46 81.13 -38.05 91.07

in Business (1+2)Business Per Employee

497.77 548.23 657.08 10.14 19.85

Yield Per Employee 26.80 29.16 35.21 8.81 20.75

Profit Per Employee 0.56 0.21 0.70 -62.50 233.33

Intt. Income Per Emp. 26.50 28.87 34.73 8.94 20.30

Salary Per Employee 4.73 4.76 5.62 0.63 18.07

No.of Loan A/cs per Employees

910 955 1024 4.94 7.23

No.of Deposit A/cs Per Employee

808 841 894 4.08 6.30

Common Cadre Employees

13 11 10 -15.38 -9.09

Non – Common Cadre Employees

177 175 168 -1.13 -4.00

Govt. Employees -- 1 -- -- --

Total Employees 190 187 178 -1.58 -4.81

15.(a) Non Performing Advances

(Rs.in lacs) No.of Accounts Amount As on 31/03/08

As on 31/03/09

As on 31/03/10

As on 31/03/08

As on 31/03/09

As on 31/03/10

Agri. (Crop Loan) 1 2 1 6.46 62.40 46.68

RCC (Farmers) 418 818 448 505.37 1130.25 698.46CC Traders 723 899 778 412.61 523.36 444.24NFS Loans (Comp. Integrated SRWTO)

2048 2124 2000 682.49 660.49 592.24

C.D.Loan 2514 2446 2498 845.91 790.55 824.08Personal Loan 322 418 465 243.46 327.52 366.60Urban House Loan 39 75 87 84.61 186.95 223.46Rural House Loan 175 270 243 292.80 400.55 338.75Vehicle Loan 62 72 105 67.67 57.24 119.49Education Loan -- -- -- -- -- --Loan Agst. Property -- -- -- -- -- --Loan Agst.Coop.Rent

-- -- -- -- -- --

Loan for Earnest Money

-- -- -- -- -- --

Secondhand Car Loan

-- -- -- -- -- --

Two wheelers Loan to Farmers

323 585 637 81.42 138.68 160.65

Mini Dairy Loan 154 158 117 233.12 230.61 165.98Commercial Dairy -- -- -- -- -- --Govt.Sponsord Loans (specify them)

-- -- -- -- -- --

Other Advances (*) (Head-wise Detail)

188 200 190 707.17 670.44 602.81

TOTAL :- 6967 8068 7569 4163.09 5179.04 4583.44Sub-Standard Assets

4480 4587 3544 2396.34 3070.48 2252.18

Doubtful Assets :- 540 487 571 610.52 643.99 757.71Unsecured 1872 2935 3388 585.51 904.78 1040.89Secured :Overdue from 3-4 yrs

239 228 206 254.67 315.67 290.13

Overdue from 4-6 yrs

185 153 209 258.30 190.45 225.60

Overdue above 6 yrs.

116 106 156 97.55 137.87 162.77

Loss Assets 75 59 66 570.72 559.75 532.66

15.(a) Non Performing Advances (*) (Detail of Other Advances) No.of Accounts Amount

(Head-wise Detail) (Other Advances)

As on 31/03/08

As on 31/03/09

As on 31/03/10

As on 31/03/08

As on 31/03/09

As on 31/03/10

STNAP/Other Socy 11 14 7 32.99 44.21 11.45C.C.Goods 1 1 1 0.50 0.50 0.50Precurement 1 1 1 2.82 2.82 2.82L & C Societies 6 4 3 29.37 4.86 4.27C.C.Indl. 21 17 18 12.37 7.01 7.78Verified Bills 5 5 4 8.93 8.33 7.96Computer Loan 1 2 -- 0.13 0.58 --S.H.G. 16 38 40 7.46 16.63 17.39O.D. to Staff 4 6 4 3.01 6.40 4.22Sway Rojgar 35 48 44 8.80 10.06 9.15Rural Godown 1 1 1 2.73 2.73 2.73M.T.A.P. 7 2 -- 26.60 4.38 --S.G.S.Y. 2 3 1 0.39 2.16 1.88U.L. Societies 75 59 66 570.72 559.74 532.66

15.(b) Legal Action During 2007-08 During 2008-09 During 2009-10

Arbitration cases Prepared 5159 5786 5939Arbitration cases Awarded 3379 3690 4289

16. Amount still to be Disbursed from the Head Conversion (Core Banking Solutions)Head Amount as on 31/03/2009 Amount as on 31/03/2010

-Nil- -Nil-

17. Detail of Expenditure

18.18. Profitability and Productivity RatiosProfitability and Productivity Ratios No Ratios 2007-08 2008-09 2009-101. Net Profit / Own Fund Ratio 2.05 0.76 2.042. Net Profit / Average Working Funds 0.15 0.05 0.143. Interest Income/Average Working Funds 7.18 6.88 7.074. Interest Income / Total Investments

(Including Loans, Advances & Investment)(Avg.)7.71 7.39 7.61

5. Establishment Expenditure / Total Income 17.66 16.35 15.966. Establishment Expenditure/Total Expenditure 18.04 16.47 16.287. Cost of Management / Total Expenditure 22.21 20.48 20.008. Interest Expenditure / Total Expenditure 70.51 75.37 70.889. Total Expenditure / Total Income 97.88 99.26 98.0010. Provision for N.P.A. / Total Income 6.39 2.40 7.8211. Cost of Management / Total Income 21.74 20.32 19.6012. Cost of Management /Average working Fund 1.58 1.41 1.4113. Increment in Profit / Increment in Assets 0.22 -0.86 0.95

Solvency Ratios : Sr.No. Ratios 2007-08 2008-09 2009-101. Capital Adequacy Ratios 6.81 4.19 4.252. N.P.A./ Total Advances 6.25 7.25 5.613. Own Funds / Average Working Funds 7.47 6.72 9.52

Efficiency Ratios : S.No. Ratios 2007-08 2008-09 2009-101. C.D. Ratios 238.46 230.05 232.272. Recovery % age (Separately for Crop

Loan, Non Farm Sector & Clean Loan) 92.85 90.96 92.15

3. Agri. Advances/Total Advances (% age) 77.87 78.41 79.82 AUDITED BALANCE SHEET OF THE PATIALA CENTRAL COOP.BANK LTD., PATIALA.

FOR THE YEAR ENDING 31.03.2010 FORM OF BALANCE SHEET (See Section 29) Previous Year CAPITAL & LIABILITIES Amount TOTAL Figures 31.3.09 1. CAPITAL 31.03.2010  

250000000.00i) Authorised Capital Share 2500000 of Rs.100/- each 250000000.00 250000000.00

 ii)Subscribed Capital 1374261 shares of Rs.100/- each    

 iii)Amount called up on share of Rs.100/- each less calls unpaid    

  a) Individual    

108297300.00 b) Cooperative Institutions 130426100.00  

7000000.00 c) State Government 7000000.00 137426100.00

2. RESERVE FUND & OTHER RESERVE    

77905574.58 i) Statutory Reserve 87396549.58  

53261933.22 ii) Agriculture (Credit) 55464010.22  

10631784.87 iii) Building Fund 10631784.87  

3273702.96 iv) Dividend Equilization Fund 3757078.56  

82854.07 v) Special Bad Debt Reserve 82854.07  

109145265.48 vi) Bad & Doubtful Debt Reserve 110390521.21  

  vii) Other Fund & Reserve    

4270971.78 a) Coop.Education & Propaganda 4351534.78  2519829.06 b) Share Transfer Fund 2519829.06  

32622.81 c) Risk Fund S.F.D.A. 32622.81  

4835887.73 d) Gratuity Fund 4835887.73  

9544051.43 e) Common Good Fund 9664895.43  

3495573.87 g) Coop.Development Fund 2752166.87  

4824166.07 h) Primary Coop.Socs.Fund 4120010.07  

3736982.75 i) Bad and Doubtful Debt Fund 3736982.75  

214988.00 j) Pension Fund 80563.00  

120634521.57 k) Provision for NPAs 164134521.57 463951812.58

3. PRINCIPAL/SUBSIDIARY PARTNERSHIP FUND ACCOUNT    

-- i) Central Coop. Banks    

-- ii) Primary Agriculture Credit    

-- iii) Other Societies    

  4. DEPOSIT & OTHER ACCOUNTS    

  i) Fixed Deposit    

1886832794.33 a) Individuals 2035740810.92  

-- b) Central Cooperative Banks    

62252492.64 c) Other Societies 57772093.32 2093512904.24

-- ii) Saving Bank Deposit    

1034000373.72 a) Individuals 1269640307.28  

-- b) Central Cooperative Banks    

83370370.39 c) Other Societies 118420155.01 1388060462.29

-- iii) Current Deposit    

25976866.96 a) Individuals 27476498.26  

-- b) Central Cooperative Banks    

13675240.08 c) Other Societies 10608135.35 38084633.61

-- iv) Money at Call & Short Notice -- --

3629816148.37 TOTAL : C/f   4121035912.72

3629816148.37 TOTAL : B/f   4121035912.72

  5. BORROWINGS    

 I) From Reserve Bank of India/State/Central Coop.Banks    

3839878118.62A) Short Term Loans, Cash Credits and Overdrafts of which secured against: 4399593307.21  

-- i) Govt. & Other approved securities --  

-- ii) Other Tangible Securities --  

590263564.00 B) M.Term Loans of which secured against: 782549644.00  

-- i) Govt. & Other approved securities --  

-- ii) Other Tangible Securities --  

-- C) Long Term Loans of which secured against --  

-- i) Govt. & Other approved securities --  

-- ii) Other Tangible Securities --  

-- II) From State Bank of India --  

 A) Short Term Loans, Cash Credits and Overdrafts of which secured against:    

-- i) Govt. & Other approved securities --  

-- ii) Other Tangible Securities --  

 B) Medium Term Loans of which secured against:    

-- i) Govt. & Other approved securities --  

-- ii) Other Tangible Securities --  

  C) Long Term Loans of which secured against    

-- i) Govt. & Other approved securities --  

-- ii) Other Tangible Securities --  

  III) From State Bank of India    

A) Short Term Loans, of which secured against  

-- i) Govt. & Other approved securities --  

-- ii) Other Tangible Securities --  

--B) Medium Term Loans of which secured against: --  

-- i) Govt. & Other approved securities --  

-- ii) Other Tangible Securities --  

154017000.00 C) Long Term Loans of which secured against 176099014.53 5358241965.74

-- i) Govt. & Other approved securities --  

-- ii) Other Tangible Securities --  

 IV) Loans Other Sources (Sources & Secur.to be specified)    

5104254.066. Bill for collection being bills receivable as per contra 5663620.87 5663620.87

6428293.69 7. Branch Adjustments 17787960.97 17787960.97

46860463.06 8. Overdue Interest Reserve 41905943.99 41905943.99

  9. Interest Payable    

21510250.56 i) On Deposits 21290582.70  

0.00 ii) On Borrowings   21290582.70

8293878092.36 TOTAL : C/f   9565925986.99

8293878092.36 TOTAL : B/f   9565925986.99

  10. Other Liabilities    

2117752.20 i) Bills Payable 5696057.35  

20000000.00 ii) Standard Assets Provisions 23000000.00  

7576166.50 iii) Sundries Payable 7177258.97  

26791207.24 iv) Other Payable 16041739.12  

9207000.00 v) Imbalance receivable 9207000.00 61122055.44

  11. Profit & Loss Account    

     

4028127.60 Add: Profit for year brought from the P&L A/c 12782360.33 12782360.33

8363598345.90 Grand Total:   9639830402.76

Previous Year PROPERTY AND ASSETS Amount TOTAL

Figures 31.3.09 PROPERTY AND ASSETS 31.03.2010  

1. CASH    

224481617.22 In hand and with Reserve Bank, State Bank of India, State 235584141.26  

  Bank of India, State Cooperative Bank & Central Coop.Bank    

  2. BALANCES WITH OTHER BANKS    

0.00 i) Current Deposits    

0.00 ii) Saving Bank Deposits    

435128154.06 iii) Fixed Deposits 676336476.76 911920618.02

  3. MONEY AT CALL & SHORT NOTICE    

  4. INVESTMENTS    

320734000.00 i) In Central & State Govt. Securities (at Book Value) (Face Value), (Market Value) 292940000.00  

0.00 ii) Other Trustee Securities    

49400000.00iii) Shares in Cooperative Institutions other than in Item(5)below 53000000.00 345940000.00

  iv) Investment (To be specified)    

 5. Investments out of Principal/SubsidiaryState Partnership fund    

  In Shares of :-    

-- i) Central Cooperative Banks    

-- ii) Primary Agri. Cooperative Societies    

-- iii) Other Societies    

  6. ADVANCES    

5353284385.56i) Short Term, C.C,Overdrafts & Bills discounted of which 6000959255.29  

  secured against.    

  a) Govt. & Other approved securities 43501.76 Lacs    

  b) Other tangible securities Rs.14735.52 Lac.of the advances    

  amount, due from individuals 13548.02 Lacs    

  Of the advances, amount overdue Rs.5596.70 Lacs    

  c) Considered Bad & Doubtful of recovery Rs.532.66 Lacs    

1454288926.46 ii) M.T.Loans of which secured against : 1795725111.04  

  a) Govt. & Other approved securities Rs.9782.02 Lacs    

  b) Other tangible securities Rs.2549.52 Lacs.Of the advances    

  amount, due from individuals Rs.7234.80 Lacs    

  Of the advances, amount overdue Rs.2196.75 Lacs    

  c) Considered Bad & Doubtful of recovery - Nil -    

338200659.35iii) Long Term Loans for which secured against : 376774802.10 8173459168.43

  a) Govt. & Other approved securities Rs.3767.75 Lacs    

  b) Other tangible securities Rs.3767.75 Lacs.    

  c) Of the advances amount, due from individuals 3767.75 lacs    

 of the advances, amount overdue Rs.223.68 Lacs    

  Considered Bad & Doubtful of recovery - Nil -    

8175517742.65 TOTAL : C/f   9431319786.45

8175517742.65 TOTAL : B/f   9431319786.45

  7. INTEREST RECEIVABLE    

6468644.00 i) On Deposits & Investment 24178297.00 24178297.00

132475484.60ii) On Loans of which overdue Rs.419.06 Lacs considered 137254051.36 137254051.36

  Bad & Doubtful of recovery Rs.103.46 Lacs.    

5104254.068. BILLS RECEIVABLE BEING BILLS FOR COLLECTION AS 5663620.87 5663620.87

  PER CONTRA    

0.00 9. BRANCH ADJUSTMENTS    

1309584.76 10. PREMISES LESS DEPRECIATION 1790301.80 1790301.80

18127834.1311. FURNITURE & FIXTURES LESS DEPRECIATION 16283699.92 16283699.92

  12. OTHER ASSETS (to be specified)    

4214382.00 i) Interest Relief NABARD 4214382.00  

6432.71 ii) Library 5884.46  

520424.93 iii) Stationery in Stock 436131.23  

136783.00 iv) Security with P & T Department 139523.00  

841572.76 v) Sundry Debtors 1393664.12  

4687651.75vii) Recoverable from Govt.of India (Debt Waiver Scheme-2008) 4143982.75  

0.00 viii) Other Receivable 436489.25  

628219.00 ix) Prepaid expenses/Insurance 368365.00  

505806.00 x) Robbery 505806.00  

98340.00 xi) Leave Salary Recoverable 458953.00  

3748189.55 xii) Embezzlement 2030464.55  

9207000.00 xiii) Suspence Imbalance Socs. 9207000.00  

    23340645.36

8363598345.90   9639830402.76

8363598345.90   9639830402.76

DISTRICT MANGAER