Punjab State Cooperative Bank 1 (Repaired)

5/27/2018 Punjab State Cooperative Bank 1 (Repaired)

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Punjab State Cooperative Bank- Deposit & Credit Schemes

1

SUMMER TRAINING REPORT

ON

PUNJAB STATE COOPERATIVE BANK- DEPOSITS ANDCREDIT SCHEMES

A Study Conducted at: PUNJAB STATE COOPERATIVE BANK, MANIMAJRA

From: 10th

June, 2013 to 25th

July, 2013

In partial fulfillment of the

Masters Degree in Business Management

Batch (2012-14)

SUPERVISED BY: SUBMITTED BY:

Mrs VARSHA GUPTA ARTI SAINI

Asst.Prof M.B.A 3rd

SEM

12PBA007

School of Management Studies

atBaddi University of Emerging Sciences and Technology, Himachal Pradesh.


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ACKNOWLEDGEMENT

It is imperative for successful completion of a task to complement those who made thattask work.

I sincerely bow my head and thank the almighty for bestowing his blessings on me. Thisis utmost pleasure of mine, to show my heartfelt gratitude to those individuals who havegiven their considerate support and guidance. This project would not have beenpossible without them.

I am falling short of words to express my sincere thanks to the management of PunjabState Co-operative Bank, Manimajra for providing me an opportunity to undergotraining in their reputed organization. I am deeply motivated and encouraged after

working with the very efficient and cooperative staff of PSCB.

I am highly indebted to my faculty members of School of Management Studies, at BaddiUniversity, for helping me in various ways.

My sincere regards to my friends who worked with me all through the project and helpedme in the noble accomplishment.

I thank my parents who have always been my driving force to work hard and keep thelearning process continuous and never ending.


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TABLE OF CONTENTS

SR.NO TOPIC PAGE NO.

1. Certificate 2

2. Acknowledgement 3

3 List of tabs 5

4. Abstract/Summary 6

5. INTRODUCTION

Industry

Company Background

Project Detail

713

37

6. Research Methodology 38

7. Research Design 39

8. Literature Review 40

9. Chapterisation 45

10. Data Analysis and Interpretation 46

11. Limitations 58

12. Conclusions 58

13. Recommendations 59

14. Bibliography 60

15. Annexures 61


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LIST OF TABS/FIGURES

SRNO. TOPIC PAGE NO.

1. Banking Structure in India 7

2. The Banking Matrix 9

3. Structure of Cooperative Banking 15

4. PSCB, No. of braches, Address and Date of Origin 21

5. PSCB- Organization Structure 22

6. Profit and Loss of PSCB branches for three consecutive yearsfrom 2010 to 2012

23

7. Target on Term Deposits for the financial year April 2013-March2014

26

8. Interest Rates on Deposits with effect from 20.12.2012 26

9. Types of credit Schemes 27

10. Target on Loans for the financial year April 2013-March 2014 31

11. Interest Rates on Loans with effect from 20.12.2012 31

12. Uses of Finacle 33

13. PSCB-MM, Total No. Of Accounts 34

14. PSCB-MM,Average Cash in hand 35

15. PSCB-MM, Average Deposits 36

16. PSCB-MM,Average Loans and Advances 36

17. Eligibility Criteria for availing loans 43

18. Analysis and Interpretation Charts

Demographic Analysis

Knowledge and Awareness among customers

Co-relation analysis

Expectations of Customers

46495355

19. Comparison between PSCB(MM), Head Office & PSCB (total) oftheir annual profit

57

20. Annexures

Questionnaire

Comparison Of Interest Rates

61


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SUMMARY

The Cooperative Sector has been playing a significant role in the area of disbursing

agricultural credit, providing market support to farmers, distribution of agricultural inputsand imparting cooperative education and training etc. The basic objective of theCooperation Division is to design long term and short term strategies for reducingeconomic disparities between the downtrodden rural people and the rural rich as well asregional imbalances including rural and urban differences.

In todays competitive environment where corporates are constantly searching for waysto keep a float and sustain the market share, they have to find newer and better ways tosatisfy customer needs. To run any organization successfully the management needs tothink always for the betterment of their service and product.

Banking business is now expanding three folds and is facing tough competition. ThePrivate sector along with the public sector is performing high on scale and ruling themarkets. Adding to the glory, there are foreign banks that have also captured acommendable market share.

Considering this, the State Cooperative Banks need to take such steps which assistthem in marching ahead in the race and survival of the fittest. This has always been themotto of Cooperative Banks and in order to achieve this, we are hereby analyzing thelevel of satisfaction of PSCB customers and their expectations.


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BANKING INDUSTRY AN OVERVEIWBANKING DEFINITION

In simple words, Banking can be defined as the business activity of accepting andsafeguarding money owned by other individuals and entities, and then lending out thismoney in order to earn a profit. However, with the passage of time, the activitiescovered by banking business have widened and now various other services are alsooffered by banks. The Banking services these days include issuance of debit and creditcards, providing safe custody of valuable items, lockers, ATM services and onlinetransfer of funds across the country/ world.

WHAT IS A BANK

Bank is a financial institution that undertakes the banking activity that is, it acceptsdeposits and then lends same to earn certain profit.

BANKING STRUCTURE IN INDIA

RESERVEBANK OF INDIA(APEX BANK)

SCHEDULED

BANKS

COOPERATIVEBANKS

CENTRAL CO-OPERATIVE

BANKS

STATECOOPERATIVE

BANKS

PRIMARYAGRICULTURAL

CREDITSOCITIES

COMMERCIALBANKS

PUBLICSECTOR

SBI &ASSOCIAT

ES

OTHERNATIONALISE

D BANKS

PRIVATESECTOR

FOREIGNBANKS

REGIONAL RURALBANKS

UNSCHEDULED

BANKS


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BANKING-HISTORY AND DEVELOPMENT

Banking in India originated in the last decades of 18 thcentury. The first banks were TheGeneral Bank OF India, which started in 1786, and Bank of Hindustan, which started in1790; both are now defunct. The oldest bank which is in existence is the State Bank ofIndia, which originated from the Bank of Calcutta in June 1806, which almostimmediately became Bank of Bengal. This was one of the three presidency banks, theother two being the Bank of Bombay and the Bank of Madras, all three of which wereestablished under the Charters from the British East India Company.

For many years the Presidency Banks acted as quasi-central Banks, as did theirsuccessors. The three banks merged in 1921 to form the Imperial Bank of India, whichupon Indias independence, became State Bank OF India.

Foreign Banks started to arrive, particularly in Calcutta, in the 1860s. The ComptoiredEscompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in1862. Then a French colony followed. HSBC established itself in Bengal in 1869.Calcutta was the most active trading port in India, mainly due to the British Empire, andso became a Banking Center.

The period between 1906 and 1911, saw the establishment of banks inspired by theSwadeshi Movement. It inspired local businessmen and political figures to establishbanks for and of Indian Community. A number of banks established then have survivedto the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda,Canara Bank and Central Bank of India.

The Reserve Bank of India, Indias central banking authority, was nationalized onJanuary 1, 1949 under the terms of the Reserve Bank of India (Transfer to PublicOwnership) Act, 1948. In 1949, the Banking Regulation Act also provided that no newbank or branch of an existing bank could be opened without a license from the RBI.

NATIONALISATION

Despite the provisions, control and regulations of Reserve Bank OF India, banks inIndia except SBI, continued to be owned and operated by private persons. By the

1960s the Indian Banking Industry had become an important tool to facilitate thedevelopment of the Indian Economy. At the same time, it had emerged as a largeemployer, and a debate had ensued about the nationalization Of Banking Industry.

The Government of India issued an ordinance and nationalized the 14 largestcommercial banks with effect from the midnight of July 19, 1969. Within 2 weeks of theissuance of ordinance, the Parliament passed the Banking Companies (Acquisition and


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Transfer of Undertaking) Bill, and it received the presidential approval on 9 thAugust1969.

A second dose of nationalization of 6 more commercial banks followed in 1980. The

stated reason for nationalization was to give the government more control of creditdelivery. With this, the government of India controlled around 91% of Banking Business.Later on, in the year 1993, the government merged New Bank of India with PunjabNational Bank. It was the only merger between the nationalized banks and resulted inthe reduction of the number of nationalized banks from 20 to 19.

After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer tothe average growth rate of Indian Economy.

LIBERALISATION

In the early 1990s, the then Narsimha Rao government embarked on a policy ofliberalization, licensing a few number of Private Banks. These came to be known asNew Generation tech-savvy banks, and included Global Trust Bank (the first of suchnew generation banks to be set up), which later amalgamated with the Oriental Bank ofCommerce, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This move,along with the rapid growth in the economy of India, revitalized the banking sector inIndia, which has witnessed strong contribution from all the three sectors of Banks,namely- Government Banks, Private Banks and Foreign Banks.

The next stage of Indian Banking is now being set up with the proposed relaxation in thenorms of Foreign Direct Investment. The Current FDI limit for Public Sector banks

(including SBI) is 20% and for private Banks, the limit is 74% with some restrictions.


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TYPES OF BANKS

The banking industry can be divided into following sectors, based on the clientele

served and products and services offered:

1. Retail Banks

2. Commercial banks

Public Banks

Private Banks

3. Cooperative banks

4. Investment Banks

5. Specialized banks

6. Central banks

Retail Banks:

Retail banks provide basic banking services to individual consumers. Examples include

savings banks, savings and loan associations, and recurring and fixed deposits.

Products and services include safe deposit boxes, checking and savings accounting,

certificates of deposit (CDs), mortgages, personal, consumer and car loans.

Commercial Banks:

Banking means accepting deposits of money from the public for the purpose of lending

or investment. Commercial Banks provide financial services to businesses, including

credit and debit cards, bank accounts, deposits and loans, and secured and unsecured

loans. Due to deregulation, commercial banks are also competing more with investment

banks in money market operations, bond underwriting, and financial advisory work.

Commercial banks in modern capitalist societies act as financial intermediaries, raising

funds from depositors and lending the same funds to borrowers. The depositors claims

against the bank, their deposits, are liquid, meaning banks are expected to redeemdeposits on demand, instantly.

Banks claims against their borrowers are much less liquid, giving borrowers a much

longer span of time to repay money owed banks. Because a bank cannot immediately


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reclaim money lent to borrowers, it may face bankruptcy if all its depositors show up on

a given day to withdraw all their money.

THERE ARE TWO TYPES OF COMMERCIAL BANKS, PUBLIC SECTOR ANDPRIVATE SECTOR BANKS.

Public Sector Banks:

Public sectors banks are those in which the government has a major stake and they

usually need to emphasize on social objectives than on profitability.

Private sector banks:

Private sector banks are owned, managed and controlled by private promoters and theyare free to operate as per market forces.

Investment Banks:

An investment bank is a financial institution that assists individuals, corporations and

governments in raising capital by underwriting and/or acting as the client's agent in the

issuance of securities. An investment bank may also assist companies involved in

mergers and acquisitions, and provide ancillary services such as market making, trading

of derivatives, fixed income instruments, foreign exchange, commodities, and equity

securities.

Investment banks aid companies in acquiring funds and they provide advice for a wide

range of transactions. These banks also offer financial consulting services to companies

and give advice on mergers and acquisitions and management of public assets.

Cooperative Banks:

Cooperative Banks are governed by the provisions of State Cooperative Societies Act

and meant essentially for providing cheap credit to their members. It is an important

source of rural credit i.e., agricultural financing in India.

Specialized Banks:


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Specialized banks are foreign exchange banks, industrial banks, development banks,

export-import banks catering to specific needs of these unique activities. These banks

provide financial aid to industries, heavy turnkey projects and foreign trade.

Central Banks:

Central banks are bankers banks, and these banks trace their history from the Bank of

England. They guarantee stable monetary and financial policy from country to country

and play an important role in the economy of the country. Typical functions include

implementing monetary policy, managing foreign exchange and gold reserves, making

decisions regarding official interest rates, acting as banker to the government and other

banks, and regulating and supervising the banking industry.

These banks buy government debt, have a monopoly on the issuance of paper money,and often act as a lender of last resort to commercial banks


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COMPANY BACKGROUND

(PUNJAB COOPERATION

AT A GLANCE)ORIGIN OF COOPERATIVE BANKS IN INDIA

Cooperative movement is quite well established in India. The first legislation oncooperation was passed in 1904. In 1914 the Maclagen committee envisaged a threetier structure for cooperative banking viz. Primary Agricultural Credit Societies (PACs) atthe grass root level, Central Cooperative Banks (CCBs) at the district level and StateCooperative Banks at state level or Apex level. The first urban cooperative bank in Indiawas formed nearly 100 years back in Baroda.

In the beginning of 20th

century, availability of credit in India, more particularly in ruralareas, was almost absent. Agricultural and related activities were starved of organized,institutional credit. The rural folk had to depend entirely on the money lenders, who lentoften at high rate of interest.

The cooperative banks arrived in India in the beginning of 20th Century as an officia

effort to create a new type of institution based on the principles of cooperativeorganization and management, suitable for problems peculiar to Indian conditions.These banks were conceived as substitutes for money lenders, to provide timely andadequate short term and long term institutional credit at reasonable rates of interest. Inthe formative stage Cooperative Banks were Urban Cooperative Societies run on

community basis and their lending activities were restricted to meeting the creditrequirements of their members. The concept of Urban Co-operative Bank was first speltout by Mehta Bhansali Committee in 1939 which defined on Urban Co-operative BankProvisions of Section 5(CCV) of Banking Regulation Act, 1949 (as applicable to Co-operative Societies) defined an Urban Co-operative Bank and was made applicable in1966.

IMPORTANCE OF COOPERATIVE BANKS IN INDIA

Cooperatives have played a vital role in improving the economic conditions of farmersand accelerating the pace of development in Punjab.

Development through Cooperatives was a dream cherished by freedom fighters of Indiaever since Independence. Cooperative principles ensure harmonious development,through democratic management and governance.


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Cooperatives have brought both the services and resources at the doorsteps of villagersin Punjab. These have been enthusiastically serving the people of Punjab in area suchas agriculture, housing, spinning, sugar production, weaving and dairy etc.

The performance of Cooperative Movement in Punjab is very impressive. Cooperativesconstitute the major source of institutional credit for agriculture.

Cooperatives are playing a pivotal role in socio-economic development of the State.These are key instruments of the State to develop and sustain its rural economy, whichis primarily agrarian. The Department of Cooperation has accelerated Cooperativemovement in Punjab during the last three years

MISSION

Punjab Cooperatives resolve for Greater self-reliance, Administrative efficiency andstructural reforms.

TEN COMMANDENTS OF PUNJAB GOVERNMENT (DEPARTMENT OFCOOPERATION)

Support and sustain agriculture as a multi-functional occupation in the states.

Provide desired impetus and diversification of agriculture in the state.

Liberalize and adjust structures to deliver commodities and services to thefarmers at the competitive price.

Assume quality leadership for branded products with high mark-ups in the

agriculture, sugar, food, milk and handloom sectors.

Promote vertical integration for creating strong bonds with farmers and improveproduct quality.

Modernize and professionalize organization and management.Be action driven and become virtualReduce operational costs and increase efficiencyIncrease membership and business with greater people's participationEnsure honesty, transparency and check corruption

VALUES

A Cooperative is a system voluntarily to meet their common economic, social andcultural needs and aspirations through a jointly-owned and democratically controlledenterprise.

PRINCIPLE FEATURES OF CO-OPERATIVE BANKS


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Voluntary and Open MembershipDemocratic Member ControlMembers Economic Participation

Autonomy and IndependenceEducation Training and InformationCooperation among CooperativesConcern for CommunityCooperative banks are partially financial intermediaries. The sources of theirfunds are:

i. Central and State Government;

ii. The Reserve Bank Of India, NABARD;

iii. Other cooperative institutions;

iv. Ownership funds and

v. Deposits or debenture issues

Cooperative banks belong to the money market as well as to the capital market.Cooperative banks are subject to CRR and liquidity requirements as other

scheduled and non-scheduled banks are. However, their requirements are lessthan commercial banks.

STRUCTURE OF COOPERATIVE BANKING

RBI

NABARD

SCBs SLDBs UCBs

CCBs

PACS

CLDBs

PLDBs BRANCHES OFSLDBS


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ABBREVIATIONS USED IN CHART:SCBs: State Cooperative Banks

SLDBs: State Land Development BanksUCBs: Urban Cooperative Banks

CCBs: Central Cooperative BanksCLDBs:Central Land Development BanksPACS: Primary Agricultural Credit SocietiesPLDBs: Primary Land Development Banks

TYPES OF COOPERATIVE BANKS

1) STATE COOPERATIVE BANKS(SCBs)

State cooperative banks are a federation of central cooperative banks andact as a watchdog of the cooperative banking structure in the state. Its funds areobtained from share capital, deposits, loans and overdrafts from Reserve Bank of India.State cooperative banks lend money to central cooperative banks and primary societiesand not directly to farmers.

2) CENTRAL COOPERATIVE BANKS(CCBs)

Central cooperative banks are the federations of primary credit societies ina district and are of two typesthose having a membership of primary societies only

and those having a membership of societies as well as individuals. The funds of thebank consist of share capital, deposits, loans and overdrafts from state cooperativebanks and joint stocks. These banks finance member societies within the limits of the

borrowing capacity of societies.3) PRIMARY AGRICULTURAL CREDIT SOCIETIES(PACS)

Cooperatives have played a major role in the supply of finance to agriculture sector forthe development of land, irrigation system and for its mechanization. The agriculturalcooperative credit in Punjab is divided into two sectors mainly, one dealing with shortand medium- term credit and the other with the long- term credit. The long term credit isawarded from the Punjab State Cooperative Land Mortgage Bank at the apex and thePrimary Cooperative Land Mortgage Banks at district/tehsil level.

4) PRIMARY COOPERATIVE BANKS(PCBS)

They are non- agricultural societies. These are of two typesUrban Cooperative Banksand Salary Earners Societies. Development of PCBs is looked after by the RBI. The

RBI and IDBI offer them concessional refinance facility on a selected basis. Theyoperate in urban and semi urban areas. They provide housing finance and loans andadvances for various purposes such as petty trade and industry


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POLICY AND PLANNING

Structural and Administrative Reforms

1. Punjab Cooperative Societies Act, 1961. (Proposed amendment bill 2007).

2. Downsizing and dispersal of bureaucracy to improve efficiency and delivery.

3. Formulation and Introduction of Code for Accounting and Administrative proceduresin all Apex Cooperative Federations.

4. Computerization of Operations and Records.

5. Human Resource Development through Intensive Training and Up-gradation ofknowledge and skills.

6. Intensive Application of Information Technology.

7. Promotion and Development of Insurance Cooperatives.

8. Creation of a fund at Apex and Central Level for development of PrimaryCooperatives.

Promotion of New Generation Self-Reliant Cooperatives

1. Development of Women Cooperatives and self-help groups.

2. Urban Cooperative Banks.

3. Multi-purpose Cooperative Societies in rural and urban areas.

4. Greater thrust on Milk Producers' Cooperative Societies.

Dis-investment from Sick and Weak Cooperatives.

1. Dis-investment from Cooperative Spinning and Sugar Mills merits greater attentionand thrust.

2. Amalgamation and restructuring of Primary Cooperatives whose imbalances aremore than 50%

Liberalisation of Cooperative Marketing.

1. Direct sale and purchase of agro-chemicals by PACS.

2. Direct sale and purchase of fertilizers by PACS.3. Greater autonomy to Rural Consumer Cooperatives for supply and distribution ofessential commodities in the villages.

Strengthening, Modernization and Diversification of Cooperative CreditSystem


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1. Development of Infrastructure including building infrastructure

2. Human Resource Development

3. Greater thrust on Non-Farm Financing, particularly for rural un-employed youth.

4. Greater thrust on Direct Finance to the farmers: Gradual Abolition of B-Componentof short- term agricultural loans.

5. Greater thrust on Insurance Linked loaning to the farmers.

6. Reduction in Administrative and Management Costs of Funds to provide cheapercredit to farmers.

7. Introduction of ATMcum-Debit Card

8. Introduction of personal banking on the pattern of private and commercial banks.

9. Efforts towards Merchant Banking & De-mating of Shares.

10. Efforts to increase the non-fund business.

11. Introduction of Housing Finance Schemes in selective banks.

Convergence of Services

Development of "Sehkarta Bhawans" at District Level to accommodate all Offices ofthe Department and Cooperatives to ensure easy access to facilities for the membersof Cooperatives and general public.

Training Policy

The Cooperatives of Punjab have paid special consideration on the Training of the staff,for which they have formed a specialTraining Policy.

Training Institutions

Regional Institute of CooperativeManagement, Sector-32 Chandigarh.

Punjab Institute of Coop. Training, Ltd;Chandigarh.

Junior Level Training Cell (JLTC),

Chandigarh.

Agriculture Cooperative Staff TrainingInstitute, Jalandhar

Milkfed Training Centre, Jallandhar
http://www.punjabcooperation.gov.in/html/traning%20.htmlhttp://www.punjabcooperation.gov.in/html/traning%20.html


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MAJOR APEX COOPERATIVE FEDARATIONS

COOPERATIVE FINANCING INSTITUTIONS

PSCBPunjab State Cooperative Bank LtdPSCADBPunjab State Cooperative Agricultural Development BankPunjab Urban Co-operative Banks

COOPERATIVE MARKETING & PROCESSING INSTITUTIONS

Milkfed

MarkfedWeavcoSugarfed

COOPERATIVE HOUSING DEVELOPMENT SCHEMES

Housefed

OTHER MAJOR COOPERATIVE INSTITUTIONS

PuncofedLabourfedFruitfedPICT


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PUNJAB STATE COOPERATIVE BANK ORIGIN

The Punjab State Cooperative Bank was established on 31st August, 1949 at Shimlavide registration No. 720 and it is the principle financing institution of the cooperativemovement in Punjab. In 1951 its Head Office was shifted to Jalandhar from where itmoved in 1963 to its present building at Chandigarh.

In the cooperative Banking structure, the position of the Punjab State Cooperative Bankis extremely important as the whole credit system revolves around it. It has 19 branchesand 3 extension counter in Chandigarh. There are 20 District Central CooperativeBanks having 808 branches/extension counters all over Punjab, mostly in rural areas ofthe State.

MISSION

Promotion and sustenance of economic interest & providing easy finance, cost effectiveand quality banking services to customer & PACs

OBJECTIVES

To serve as a balancing Centre for Cooperative societies in the State forCooperatives Societies in the state of Punjab registered under Cooperative

Societies Act, 1961for the time being in force.

To promote the economic interest of the member banks and cooperativeSocieties in accordance with the cooperative principles and to facilitate thedevelopment and funding of any Cooperative society registered under the said

Act.

To carry on banking and credit business

VISION

Enforce the future challenges with grit and take every possible step for thedevelopment of our institution.

More steps will be taken to provide efficient services.


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Present customers will be retained and other customers will be attracted toincrease market share.

Bank will attract maximum deposit (especially low cost deposit) to strengthen its

financial resources so as to reduce its dependency upon NABARD.

Bank while diversifying its loan portfolio, will provide medium term and long termloans to the maximum extent.

Every effort will be made to open account of all farmers of the State. Bank willreceive deposit from farmers and meet their credit needs.

Bank, for the sake of development of state, will strive hard to provide maximumand better services to customers especially farmers and for this wherevernecessary, every effort will be made to modify the schemes.

Bank will prepare its business plan every year and by implementing it , goals setwill be achieved

Bank will professionalize and modernize the business.

PUNJAB STATE COOPERATIVE BANK BRANCHES

SR.NO NAME OF BRANCH DATE OF OPENING

1. Main branch-34, S.C.O. 175-187,Sector-34,CHD 10.02.2000

2. Branch Office-8, S.C.O. 130-31, Sector-8C,CHD 01.10.19773. Branch Office-10, S.C.O.19, Sector-10,C.H.D 05.01.1994

4. Branch Office-17, S.C.O.17, Sector-17,C.H.D 31.08.1949

5. Branch Office-20, S.C.O.34, Sector-20 C, C.H.D 04.04.1994

6. Branch Office-22, S.C.O.2453,Sector-22C,C.H.D 15.01.1971

7. Branch Office-27, S.C.F.3, Sector-27 D,C.H.D 24.01.1976

8. Branch Office-30, S.C.O.9, Sector-30 D,C.H.D 02.03.1990

9. Branch Office-32, S.C.O.378, Sector-32,C.H.D 05.10.1982

10. Branch Office-35, S.C.O.451-452, Sector- 35 C,C.H.D

06.07.1982


12. Branch Office-37, S.C.O.392, Sector-37 C,C.H.D 04.05.197913. Branch Office-38, S.C.O.84, Sector-38 C,C.H.D 04.04.1994



16. Branch Office-47, S.C.O.60, Sector-47-D,C.H.D 28.12.1985

17. Branch OfficeManimajra, Motor Market, MM,C.H.D

24.10.1994


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18. Branch Office- Ramdarbar, IND. AreaII,C.H.D 04.04.1994

19. Branch Office-Sectt. , Punjab CivilSecretariat,C.H.D

23.05.1972

20. Extension Counter- Mini Sectt. 9 Mini Sectt.,Sector-9 , C.H.D

23.05.1972

PUNJAB STATE CO-OPERATIVE BANK ORGANISATIONSTRUCTURE


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PROFITS AND LOSSES OF PSCB BRANCHES FOR THREECONSECUTIVE YEARS FROM 2010 TO 2012(FIGURES IN LAKHS)

-100

-50

0

50

100

150

200

250

2009-10 2009-11 2009-12

PSCB-8

PSCB-10

PSCB-17

PSCB-20

PSCB-22

PSCB-27

PSCB-30

PSCB-32

PSCB-34

PSCB-35

PSCB-36

PSCB-37

PSCB-38

PSCB-40

PSCB-44

PSCB-47

PSCB-MM

PSCB-MS

PSCB-RD

PSCB-SECTT


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PRODUCTS OFFERED BY BANK

1. Saving Bank A/c

A saving bank A/c can be opened with an initial deposit of Rs.500/- withoutCheque Book facility and Rs.1000/- with cheque book facility.Eligible categories to open SB A/c

Any individual

Joint Account with others in the form of either or survivor, Former or Survivor

Minors

Illiterate persons

Blind person

Joint Hindu Family

Cooperative Societies, Clubs, Associations etc.

Only 30 withdrawals are allowed per half year for a savings bank accountexceeding which service charges will be levied.Maximum limit of withdrawal form is Rs. 20,000/-

2. Saving Bank- No frill A/c

This account can be opened by an individual without furnishing any residentproof or any proper introduction.Minimum amount with which account can be opened is Rs.10/- and the balance

here should not exceed Rs. 50000/- , otherwise, it will become SB A/c. No cheque book is allowed to be issued to customers

3. Term Deposit A/c

The deposit is received by the bank for a specific period which is withdraw ableafter expiry of said period.Eligible categories to open SB A/c

Any individual

Joint Account with others in the form of either or survivor, Former or Survivor

Minors Illiterate persons

Blind person

Joint Hindu Family

Cooperative Societies, Clubs, Associations etc.

Minimum amount to be kept is Rs.1000/-


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The terms and conditions regarding rate of interest and time period aredetermined by bank from time to time.

4. Recurring Deposit A/c

It can be opened with certain initial deposit wherein a Depositor needs to depositmoney by way of monthly installments over a stipulated period.The period may be 2, 24, 36, 48, 60 months etc.On the expiry of the period, the accumulated amount along with interest is paid inlumpsum.

All the parties are eligible for this accountThe rate of interest applicable on recurring deposit will be the rate of interestapplicable on term deposit for that periodMinimum monthly installment for this account is Rs.100/-.Maximum period is 10 years

5. Current A/c

Initial deposit of Rs.5000/-.Eligible parties

Sole Proprietorship

Partnership firm

Club/Association

Religious institution

Government/Semi-Govt

Local bodies

6. Locker A/c

Facility of locker is available in four different sizes viz. small, medium, large andextra large.

A prospective buyer who wants the locker facility has to have a Saving Bankaccount with the bank so that annual Locker Rent can be Debited from that

AccountLockers can be hired in individual capacity or jointly with others.


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TARGET FOR TERM DEPOSITS FOR THR FINANCIAL YEAR APRIL 2013-MARCH2014

INTEREST RATES ON DEPOSIT WITH EFFECT FROM 20.12.2012

SR.NO SCHEMES Periodfrom

Period upto

Rate ofinterest(Public)

Rate ofinterest(Sr.citizen)

1. Saving BankA/c - - 4.00% 4.00%

2. Saving Bank-NO frill A/c - - 4% 4%

3. Term DepositA/c 7days 14 days 4% 4.50%

4. Term Deposit

A/c 15days

30 days

5.00% 5.50%5. Term Deposit

A/c 31 days 45 days 6.50% 7.00%

6. Term DepositA/c 46days 90 days 6.75% 7.25%

7. Term DepositA/c 91 days 179 days 7.00% 7.50%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

PSCB PSCB-MM

30.03.2014

30.12.2013

30.09.2013

30.06.2013


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8. Term DepositA/c 180


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Loan Amount Maximum amount up-to Rs. 10.00 Lac or 80% of cost of vehicle

Rate of Interest 11.5%

Margin 20%

Repayment Period Maximum 5 years

Collateral Security 2 good sureties as per the satisfaction of the bank besides thehypothecation of the vehicle

Installment Rs. 2174.00 for 5 years

4. URBAN HOUSING SCHEME

Beneficiary Individual and Members of Coop. Housing Societies

Purpose Purchase of built up house or flat, construction of new house,repairs/ renovation and addition of existing house in urbanareas.

Loan Amount Maximum amount up-to Rs.20.00 Lac.Rate of Interest 10%

Margin 25%

Repayment Period Maximum15 years

Collateral Security First mortagage of house Property to be financed by the bank


5. CASH CREDIT FACILITY TO TRADERS

Beneficiary Individual, Sole Prop, Firm, Coop. Societies or a Company

Purpose For meeting working capital requirement of businssLoan Amount Maximum amount up-to Rs.25.00 Lac

Rate of Interest 13%

Margin 25%

Repayment Period Renewable on annual basis

Collateral Security Immovable properties for the value of 150% of the amount

Installment

6. TWO WHEELER LOAN TO FARMERS

Beneficiary An agriculturist having land in his own name or his familymember

Purpose For the purpose of new two wheelers

Loan Amount Maximum amount up-to Rs.0.50 Lac

Rate of Interest 11.5%

Margin 15%


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Collateral Security 2 good sureties as per the satisfaction of bank

Installment Rs.1087.00 for 5 years

7. RURAL HOUSING SCHEME

Beneficiary Individual and member of Coop. Housing societies

Purpose Purchase of built up house, construction of new house, Repairs/renovation and addition of existing houe in rural areas

Loan AmountMaximum amount up to Rs. 15.00 lac


Margin 15%


Collateral Security Agricultural land for the value of 100% of the loan amountbesides the mortgage of house to be financed by bank


8. COOPERATIVE EDUCATIONLOAN SCHEME CHILDREN OFPOOR FARMERS, DALITS, BC ETC

Beneficiary Children of poor farmers, Dalits, BC and other poor sections

Purpose To provide financial assistance to deserving and meritoriousstudents for pursuing higher studies in India or abroad

Loan Amount Maximum amount up to Rs. 10.00 lac

Rate of Interest 7.25%Margin No margin required

Repayment Period The installment will start after completion of courseMaximum 5 years

Collateral Security Mortgage of landed property value of 100% of the loan amount


9. LOAN AGAINST PROPERTY

Beneficiary Any individual

Purpose To offer instant solutions relating to ocio-economic needs andbusiness Needs such as childrens higher education, Travel,daughters marriage Medical emergencies etc

Loan Amount Maximum amount up to Rs.25.00 Lac


Margin No margin required



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Collateral Security


10. LOAN SCHEMES FOR EARNEST MONEY

Beneficiary Any individual

Purpose To meet financial requirement towards earnest money depositto book residential plot/built house of flat by Govt. Approved

Agency

Loan Amount As per Scheme of the Agency

Rate of Interest As fixed by the bank

Margin No margin required

Repayment Period On receipt of refund from housing board

Collateral Security No immovable Security is required. Only two post dated Cheque

RequiredInstallment

11. EDUCATION LOAN

Beneficiary Salaried employees of Coop. banks, Punjab Govt/ ChandigarhAdministration and its boards and Corporation

Purpose To provide financial assistance to deserving and meritoriousstudents for pursuing higher studies in India or abroad

Loan Amount Maximum up to Rs. 10.00 Lac

Rate of Interest 9%Margin No margin required

Repayment Period The installment will start after completion of course.Maximum 5 years

Collateral Security Mortgage of landed property value of 150% of the loan amount.

Installment Rs.2002.00 for 5 years


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TARGET FOR LOANS FOR THE FINANCIAL YEAR APRIL 2013-MARCH 2014(Figure in Lakhs)

INTEREST RATES ON LOANS WITH EFFECT FROM 01.07.2011

SR NO. SCHEMES RATE OFINTEREST

RATE OFINTEREST(Sr.citizen)

1. Personal Loan Scheme 15.00% 15.00%

2. Consumer Durable Loan 15.00% 15.00%

3. Vehicle Loan Scheme 13.00% up toRs.3.00 lac and13.50% above that

11.00%

4. Urban Housing Scheme 10.50% 10.50%

5. Cash credit Facility toTraders

13.00% 13.00%

6. Two Wheeler Loans to Farmers 11.50% 11.50%

7. Rural Housing Scheme to Farmers 10.00% 10.00%

8. Cooperative Education Loan 7.25% 7.25%

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

CONSUMER

LOAN

PERSONAL

LOAN

HOUSING

LOAN

VEHICLE

LOAN

EDUCATION

LOAN

PSCB- MM

PSCB-TOTAL


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9. Loan against Property 14.00% 14.00%

10. Loan Scheme for earnest money

11. Education Loan 9.00% 9.00%

FINACLE SOFTWARE

Finacle core banking solutions is a comprehensive, integrated, yet modular and agilebusiness solution, addressing all the core needs of banks, in easy-to-configuremodules. Finacle provides all building blocks of business functionality, enabling users toconfigure products and processes flexibly in order to adapt to a dynamic environment.With a 360 degree single source view into customer accounts, banks can empowercustomers with relevant information and delight them with the right offerings, presentedat the right time through the right channel.

Finacle is centralized, multi-currency, multi lingual, functionally rich solution thataddresses the retail and corporate banking requirements.

TYPES OF USER GROUPS IN FINACLE

GENERAL USERThis user group performs the regular banking and front officefunctions. ExampleOpening of accounts, creation and verification of financialitems.SYSTEM OPERATORSThis group is in charge of executing system relatedfunctions such as data backup and data restore.DATA BASE ADMINISTRATORThese are responsible for up keeping and

maintaining database. They prepare various reports for the use of general users.INSPECTION AUDITThis group performs routine audit in banks

These user groups have been divided on the basis of kind of banking operations theyperform. In order to use the software the user groups are required to login through theirunique Ids and passwords.


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FINACLE USES


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PSCB MANIMAJRA

Pscb- Manimajra was formed in 1994 and is located in centre of Motor Market

Manimajra, near Fun Republic and is easily accessible to all the business and Serviceclass working in the Manimajra township.

PSCB-MM (ORGANISATION STRUCTURE)

1 Branch Manager, 1 Assistant Manager, 1 Head Cashier, 3 Sub-ordinatestaff, 1 Clerk, 1 Security Guard

SERVICE COUNTERS AT PSCB- MANIMAJRA

Savings and Current AccountsCounterFixed DepositsLoans CounterCash Deposit and WithdrawalClearing of ChequesIssue of Cheque Books

PSCB-MANIMAJRA, TOTAL NUMBER OF ACCOUNTS

0

1000

2000

3000

4000

5000

6000

7000

2010 2011 2012

DEPOSITS

LOANS


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PSCB-MANIMAJRA, AVEREAGE CASH IN HAND (FIGURES IN LAKHS)

0

1

2

3

4

5

6

7

8

31/03/2010 31/03/2011 31/03/2012

AVERAGE CASH IN HAND

AVERAGE CASH IN HAND


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PSCB-MANIMAJRA, AVEREAGE DEPOSITS (FIGURES IN LAKHS)

PSCB-MANIMAJRA, AVERAGE LOANS AND ADVANCES

0

100

200

300

400

500

600

700

2010 2011 2012

Savings Deposit

Term Deposit

Current Deposit

0

100

200

300

400

500

600

2010 2011 2012

AVERAGE LOANS AND ADVANCES

AVERAGE LOANS AND

ADVANCES


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PROJECT DETAILS

In todays competitive environment where corporates are constantly searching for ways

to keep a float and sustain the market share, they have to find newer and better ways tosatisfy customer needs. To run any organization successfully the management needs tothink always for the betterment of their service and product.

Banking business is now expanding three folds and is facing tough competition. ThePrivate sector along with the public sector is performing high on scale and ruling themarkets. Adding to the glory, there are foreign banks that have also captured acommendable market share.

Considering this, the State Cooperative Banks need to take such steps which assistthem in marching ahead in the race and survival of the fittest. This has always been the

motto of Cooperative Banks and in order to achieve this, we are hereby analyzing thelevel of satisfaction of PSCB customers and their expectations.

RATIONALE OF STUDY

The Object here is to enhance my knowledge in Banking Industry. The proposed projectis a window giving me a view into gigantic and comprehensive Banking Industry. ThePSCB Schemes are chosen as the Project Topic because the Banks Cooperative creditand deposits business is expanding day by day, and it contributes maximum in theRural Banking Industry. Apart from its pertinence and performance, the cooperativebanking measures to solutions and roads to its advancement will be discussed in this

project.

OBJECTIVES OF STUDY

Market trends in the field of Deposits and Credit Financing.

Market Potential of Punjab State Co-operative Banks.

To Study some of the Schemes of Punjab State Co-operative Bank in detail and idea of

types of Schemes available.

To conduct a Comparative Study of PSCB Schemes and other Banks.

To find out main obstacles while availing different schemes under PSCB.


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Brief idea about the benefits available to Punjab State Co-operative Societies

Employees and customers.

Recent Development in Market and Punjab State Co-operative Bank in the field of

deposits and credit

NEED OF THE STUDY

To study the different facilities offered by the Punjab state cooperative bank.

It provides empirical data for policy makers that are assisted towards formulating

appropriate policy environment for the operations of Punjab State Cooperative Bank.

The study is also of significance to future researchers as literature review, and furtherprovoked research in the area of lending and portfolio management.

RESEARCH METHODOLOGY

RESEARCH PROBLEM

Measuring the level of satisfaction prevailing among customers and their expectations incontext with PSCBs schemes.

RESEARCH DESIGN

Research deign is exploratory and descriptive which helps me to explore the factorsinfluencing the perception of customers.

SAMPLING DESIGN

SAMPLE SIZEThe sample size is 20 that include local customers that

regularly visit the bank.

SAMPLING TECHNIQUESimple Random Sampling has been followed.

DATA COLLECTION


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Both primary and secondary data have been collected for meeting the objectives ofcurrent study.

For the purpose of collection of primary data, personal interview of the respondents

was conducted. An unbiased, undisguised structured questionnaire was prepared whichwas administered to respondants for the purpose of getting the information. Thequestionnaire consist questions covering both deposits and loan schemes.

For the purpose of secondary data, secondary sources of information like magazines,newspapers, journals, studies conducted in past, have been referred. The main sourcesof secondary data in the study are:

1. Banks Detail Books2. Banks website

RESEARCH INSTRUMENT

Questionnaires permit us to gather information that cannot be found elsewhere in anysecondary sources like books, newspapers and internet resources. Hence,questionnaire survey was the best method to collect data for this study.

ANALYSIS TECHNIQUE

The questionnaire is having alternative choices. Analysis has been done with help ofcharts, bar graphs, pie charts, likert scaling and co-relation.

SCOPE OF STUDY

The scope of study is limited to customers visiting Punjab State Cooperative Bank,Manimajra. Present study has been restricted to time period from June 2013 to July2013.


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LITERATURE REVIEW

The Cooperative Sector has been playing a significant role in the area of disbursing

agricultural credit, providing market support to farmers, distribution of agricultural inputsand imparting cooperative education and training etc. The basic objective of theCooperation Division is to design long term and short term strategies for reducingeconomic disparities between the downtrodden rural people and the rural rich as well asregional imbalances including rural and urban differences.

It much is admitted that though co-operative movement in India has not indeedsucceeded in curing all the economic and social evils, yet it has no doubt, led to somebeneficial results.

BENEFICIAL RESULTS:

1) Spread of banking Habit:

With the progress of co-operation the banking habit is slowly but steadily developing in

rural and urban areas.

2) Social benefit:

Co operation constitutes an admirable means of popular social improvement. It tends to

check the petty quarrels and bitterness of village life and binds together men into

friendly relationship.

3) Growth of self Reliance:

Co operative societies have created the spirit of selfreliance among the village poor.

The individual farmer who is not able to start a new venture alone due to limited farmer

who is not able to start a new venture alone due to limited resources, can have a

chance to do the same through co-operation.

4) Welfare Activities:

Some societies have made liberal contribution towards various charitable and pubic

purposes. It has also provided scholarships and aids for higher studies, research works.In this way the co-operative societies have promoted welfare activities.

DEFINITION OF LOAN

An arrangement in which a lender gives money or property to a borrower, and

the borrower agrees to return the property or repay the money, usually along with


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interest, at some future point(s) in time. Usually, there is a predetermined time forrepaying a loan, and generally the lender has to bear the risk that the borrower may notrepay a loan (though modern markets have developed many ways of managing thisrisk).

IMPORTANCE OF LOANS IN TODAY'S LIFE

Everyone needs money at every stage of their life. Sometimes it so happens that theyhave keen desire to purchase their favorite stuff but they are incapable to purchase dueto shortage of money. Here lies a question that a person who does not have a goodamount of money at particular time has no right to see dreams? Is he not authorized tofulfill his desires on time? Should he stop dreaming? No, because there is solution forthese queries. Loans are available for these purposes only. Loans are provided topeople for such critical circumstances which may occur at anytime. In anyone's life asituation may come when all of sudden you require cash. A moment when you do not

want to borrow cash from your relatives. There may occur any kind of emergency whenyou need huge amount of money. There are various types of loans like home loans,personal loans, student loan, business loan etc. You can take any type of loan youneed. For each and every kind of need, loans are available. Home loans are availablefor general home purposes like buying a luxurious car, going for a holiday trip,educational purpose, home improvement etc. Many of your desires can be fulfilled bythis loan. Personal loans are available for personal requirements likewedding ceremony, purchasing a home etc. Student loan as it itself suggest is that it isprovided basically to students for higher education. Students who want to study morebut cannot afford can get apply for such loans and continue their studies. To start a newbusiness you require a huge amount of money. A person willing to setup a business

may not have that much cash which can meet out his requirements. For this businessloans are available. You can get business loans to start and well establish anew business in market. Whatever may be the kind of loan, all have fullfledged facilities. All kind of loans have their own importance. Above all, need of moneyexplains the importance of loan. Appling for loan is very easy. Apply for that loanwhichever is needed to you. But before applying you should go through differentlender's policies and apply for that lender which is beneficial for you. Different lendershave different policies. If you get loan for long term with low rate of interest then it isbeneficial for you. Due to competition, lenders are trying their best to attract people byproviding different schemes which in turn is good for people. And cooperative bank isalso one of them.

WHAT IS A PROCEDURE?

A procedureis a specified series of actions or operations which have to be executed inthe same manner in order to always obtain the same result under the samecircumstances (for example, emergency procedures). Less precisely speaking, thisword can indicate a sequence of tasks, steps, decisions, calculations andprocesses,
http://en.wikipedia.org/wiki/Process_(science)http://en.wikipedia.org/wiki/Process_(science)


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that when undertaken in the sequence laid down produces the described result, productor outcome. A procedure usually induces a change.

IMPORTANCE OF PROCEDURE MANUALS

One of the worst case scenarios of office problems involves a very important job thatcannot be completed by the support of staff because of a lack of information onprocedures. Nearly every company prepares job descriptions, but most neglect efficient,exact and up-to-date procedures manuals. A job description entails. A proceduresmanual gives a detailed and informative guide to how the job is done and enablessomeone to do the job in an emergency. Henrik Ibsen once said, "A community is like aship; everyone ought to be prepared to take the helm." Likewise, an office - peopleshould be able to pitch in and get the job done. This is possible only if they areprovided with the proper instructions and materials. Every job entails a certainsequence of paperwork, routine tasks and contacts. For example, someone might be in

charge of travel arrangements. A job description would state that the job entails makingboth domestic and foreign travel arrangements and processing invoices for this. Aprocedures manual would give the names and phone numbers of various travelagencies used for the firm, the best people to contact, how to process the invoices byexplaining the forms and what department handles them. If the person in charge oftravel arrangements is out of the office, someone else can open the procedures manualand follow the directions to do the job. Managers should see that every support staffemployee in his or her department prepares a procedures manual for each job. At thebeginning, the manager should meet with each employee individually and discuss thepreparation of the manual so that its function is fully understood. An outline of what isexpected should be prepared and given to each employee to follow.

1. What - A description of the task.2. When - How often it is done.3. Who - What people are involved in completing the task.4. How To- Sequence of steps to complete the job. Phone numbers, addresses, chainof command, forms or materials needed (and where they are kept), potential problemsand solutions based on experience. If office machines are involved (computersor word processors), a description of how they are operated for this particular job(i.e. if disks are used, where information is stored, how to retrieve the information,

electronic mail, etc.). If a computer sequence is followed to complete forms or reportsfor the task, copies of each screen used should be made and placed in the proceduresmanual in the proper order. A "dummy" of each page should be filled out so that it can

be easily followed.


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ELIGIBILITY CRITERIA FOR AVAILING LOANS IN PUNJAB STATE COOPERATIVEBANK

Class Salaried Employees of Punjab Govt. PSUs, Boards, Corporations,

Public Sector Banks, Aided Schools/colleges, Universities, GeneralInsurance Companies, District Central Cooperative Banks, CooperativOrganizations in the State of Punjab.

Age Minimum 21 years and maximum 57 years.

Service Tenure 1 Year after the confirmation/ regularization.

Loan Limit 15 Months Gross Salary or Rs.4.00 Lac (Whichever is less).

Rate of Interest As decided by the Bank from time to time with quarterly rests.

Payment OfLoan

Loan is repayable in equated monthly installments in the form of post-dated cheques. The 1

stinstallment will start after one month.

Security No collateral security is required, only two guarantors known to theBank (of the same institution as of the borrower).

General No employees will be given this loan facility who has defaulted inrepayment of loan in any other scheme.

DOCUMENTS REQUIRED TO GET A LOANPRE-SANCTION

Application FormLatest PhotographsBank account statementsProof of IncomeEmployer certificate of identity Proof of continuity of current Job.Proof of Residence

NOMINAL MEMBERSHIP NUMBERPOST SANCTION

Demand Pronote

Agreement (NJ Stamp Paper for Rs.15/-)Signature verification (By Branch Manager)Post Dated ChequesTwo guarantors (NJ Stamp Paper for Rs.15 in each case)


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DEFINATION OF DEPOSITS

In deposit terminology, the term- Bank Deposit refers to an amount of money in cash orcheck form or sent via wire transfer that is placed into a bank account. The target

account for the Bank deposit can be any kind of account that accepts deposits.

Bank Deposit Example:

For example, a Bank Deposit is generally made when opening an account or in thecourse of routine business or personal transactions that involve placing funds with thebank for future use. Bank deposits can be made in a number of different ways. Themost direct way is to walk into a bank or a bank branch in which you hold an account.You are then usually required to fill in a Bank Deposit slip with the particulars of youraccount and the amount of money you wish to deposit. In addition, Bank Deposits can

be made via wire transfer, as well as through a direct deposit plan from employers inmany cases.

SCHEMES OFFERED BY PUNJAB STATE COOPERATIVE BANK (MANIMAJRA)Savings AccountCurrent AccountLong Term Deposit AccountFixed Deposit AccountRecurring Deposit AccountNo Frill Account

DOCUMENTS REQUIRED FOR OPENING DEPOSIT ACCOUNT IN PSCBResidence ProofPAN Card2 Latest PhotographsOne Identity Proof.


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CHAPTERISATION

CHAPTER 1INTRODUCTION

A. Introduction to Banking IndustryB. Company BackgroundC. Project Detail

CHAPTER 2Research Methodology & Research Design

CHAPTER 3Data Analysis & Interpretation

CHATER 4CONCLUSION

A. LimitationsB. RecommendationsC. Recommendations

CHAPTER 5ANNEXURESA. QuestionnaireB. Comparison of loan Interest Rates of different BanksC. Comparison of Deposit Interest Rates


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ANALYSIS AND INTERPRETATION

DEMOGRAPHIC ANALYSIS BASED ON GENDER, MONTHLY INCOMEAND OCCUPATION

ANALYSIS AND INTERPRETATION:

Out of the 20 respondants, 15 are Individuals holding self operated Accounts.5 accounts are Jointly operated by owners of firm. These are usually customersof Current Accounts.Though not included in Sample but it was observed that PSCB schemes areopen to all categories of persons viz. Individual Joint Holders

Minors Illiterate Blind Joint Hindu Family Cooperative Societies, Clubs and Associations.

Gender Classification

0

2

4

6

8

10

MALEFEMALE

FIRMS

GENDER CLASSIFICATION

Gender Classification


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MONTHLY INCOME


Out of the Female Group, 2 respondants had nil income because one of them isa housewife and the other is student.The male respondants are maximum in high income group that is betweenRs.30,000 to 40,000.Maximum firms fall in high income group.PSCB deposit schemes are also available to those who have poor or nil income.The primary purpose of this class people is to save whatever money they canafford to and earn good amount of interests on that.

FEMALE

MALE

FIRMS

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

FEMALE

MALE

FIRMS


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OCCUPATION


PSCB Loan Schemes are only available to Salaried employees of PunjabGovernment, PSUs, Boards Corporations, Universities, Public Sector Banks,Premier Medical Institutes, Punjab State Cooperative Bank, District CentralCooperative Banks and other co-operative organizations in state of Punjab.Hence all the respondants who are also customers of Credit schemes aresalaried employees and are working in the above mentioned institutes only.On the other hand, there is no such condition in Deposit schemes. Out of 10 respondants of deposits schemes, 50% are business men and left 50%are employees with various public and private institutions.

0

1

2

3

4

5

6

7

8

9

10

Loans Borrowers Depositors

Business

Employement


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ANALYSIS OF KNOWLEDGE AND AWARENESS AMONGCUSTOMERS

TYPES OF ACCOUNTS


In loan Schemes, personal loan and consumer loan are more prevalent inManimajra branch.In Deposits, customers of two schemes have been covered that is Savings

Account and Current Account.

Apart from above mentioned deposit schemes- Recurring Deposits , SavingsNo frill and Fixed Deposits accounts are also available with the bank.

0

1

2

3

4

5

6

7

8

Loans Deposits

Personal LoanConsumer loan

Savings Account

Current Account


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HOW DO CUSTOMERS COME TO KNOW ABOUT THE SCHEMES ANDSERVICES OF THIS BANK?


Most of Customers come to know about the bank by visiting them personally.Cooperative Banks are lacking in the field of marketing and have no as suchestablished marketing infrastructure.It does not pay much heed to advertisement.The employees of bank are very co-operative. They explain the various schemesto customers and their explanation is conducive to the need of customers.Word of mouth is also a source of information.

NO. OF CUSTOMERS

Personal Visit

Advertisement

Word Of Mouth

Other


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WHAT WAS THE PURPOSE BEHIND AVAILMENT OF SCHEMES?


The sole purpose behind investments in Deposits is Savings.Personal Loans have been taken for personal reasons such as education ofchildren, their marriage etc.However the trend shows that there is huge investment in property out of theloan amount. The PSCB customers consider this investment to be safe andreliable.Purchase of consumer goods is a special purpose loan scheme available.10% of customers from the sample have taken benefit from this scheme.

0

2

4

6

8

10

12

Purchase ofProperty

Purchase ofConsumer

goods

Education ofchildren

Marriage ofchildren

Savings

No. Of Customers

No. Of Custom


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WHAT ARE THE REASONS FOR TRANSACTING WITH PSCB?


Around 50% of customers from both deposits and loan schemes believe that

bank has a very fast processing rate.Following with the conclusion that Banks customer dealing is quiet effective andefficient.30% got attracted with the Interest rates offered by bank.It was observed that the interest rate of Personal Loan scheme wascomparatively less than some private banks.The bank as such has no Brand image like other public and private banks in themarket, but the bank is famous among the rural folks and is rightly called as theSAHKARI BANK.The bank does offer some margin amount in its schemes which again works infavor of the bank and customers.

0

1

2

3

4

5

6

Faster

Processing

Interest Rates Brand Image Margin Amount Others

Loans

Deposits


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COR-RELATION ANALYSIS

Correlation analysis attempts to determine the degree and direction of relationshipbetween the two variables. If two or more variables vary in sympathy so that themovements in one variable tend to be accompanied by corresponding movement in theother, then they are said to be correlated.

Framework for the projected study is set as follows:

INDEPENDENT VARIABLES

EMPLOYEE BEHAVIOR: Employees are key stakeholders in the value deliveryand brand/supplier success. It is believed that employee commitment andadvocacy behavior have a direct and profound relationship with the customerloyalty and corporate sales and profitability.

SERVICE QUALITY: The banks need to understand that the customers will be

loyal only if they receive greater value then competitors. This variable is widelyused to evaluate the performance of employees.

RATE OF INTERESTS:An interest rate is the rate at whichinterest is paid byborrowers for the use of money that they borrow from alender.

DEPENDENTVARIABLE

(CUSTOMERSATISFACTIO

N)

INDEPENDENTVARIABLE

(EMPLOYEEBEHAVIOUR)

INDEPENDENTVARIABLE(QUALITY

SERVICES)

INDEPENDENTVARIABLE (RATEOF INTEREST)
http://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Lenderhttp://en.wikipedia.org/wiki/Lenderhttp://en.wikipedia.org/wiki/Interest


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DEPENDENT VARIABLE

CUSTOMER SATISFACTION:Customer satisfaction, a term frequently used

inmarketing,is a measure of how products and services supplied by a companymeet or surpass customer expectation. Customer satisfaction is defined as "thenumber of customers, or percentage of total customers, whose reportedexperience with a firm, its products, or its services (ratings) exceedsspecifiedsatisfaction goals.

RESEARCH QUESTIONS

Q1. Does service quality effect customer satisfaction in the context of PSCB?Q2. Does employee behavior affect the satisfaction level?Q3. Do the interest rates motivate customers to transact with PSCB?

In the questionnaire, the respondants were asked to score the variables out of five.These scores were taken to be the quantitative values of variables for the purpose ofcalculation of correlation coefficient.


According to the Spearman correlation coefficient the relation between the customesatisfaction and other three variables is 0.24 which shows moderate degree of positivecorrelation.
https://en.wikipedia.org/wiki/Marketinghttps://en.wikipedia.org/wiki/Satisfactionhttps://en.wikipedia.org/wiki/Satisfactionhttps://en.wikipedia.org/wiki/Marketing


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EXPECTATIONS OF CUSTOMERS

E-BANKING


60% of customers believe that the bank needs now to activate internet banking.20% say they are comfortable in manual transactions20% are not aware of the concept.The customers of PSCB are not regular users of e- banking, and it might becomedifficult for few non users of technology to cope up with the change if it isintroduced.

124

4

No Of Customers

YES

NO

CANT SAY


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APPRECIATION FOR BEING A GOOD CUSTOMER


The bank does not provide any special facilities to its regular visitors and loyal

customers.However, this practice can prove to be fatal in wake of the uprising competition.

No of Customers

YES

NO


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COMPARISON OF PROFITS OF PSCB- MANIMAJRA, HEAD OFFICEAND SUM TOTAL OF ALL BRANCHES (FIGURES IN LAKHS)


The Manimajra branch is suffering losses from past three years.This condition has mainly occurred because of lack of updated products in thebranch.

The branch has limited schemes.The market in which branch is located, is not that much advanced andestablished. Therefore, its local customers do not bring huge deposits on dailybasis.Being a co-operative bank, it is still not providing farm loans, as most of the partof agricultural farming is delegated to another subsidiary bank of CooperativeSocieties.

-100

0

100

200

300

400

500

600

700

800

2009-10 2010-11 2011-12

MM Branch

Head Office

Pscb total


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LIMITATIONS

The findings of the study are based on the expressed opinion of the respondents.Some respondents were hesitant in providing complete information.

Difficulty was faced in getting the responses to various questions because the

customers could not devote enough time.

There was communication problem also as some of the customers belong to

rural class so they could not understand the questionnaire easily.

This study only relates to one organization, so conclusions drawn may not be

finding its utility in all the other banks.

Even the employees of the bank were hesitated to give the complete and

accurate data.

CONCLUSION

The project was undertaken to analyze and measure the level of satisfaction prevailingamong customers and the expectations in context with Punjab State Co-operativeBanks schemes.

The study concludes that the dealing of bank with the customers is quite effective andefficient which is the most important element of marketing in todays scenario.

As per the study it was observed that the bank has very and efficient processing system

in relation to its both loan and deposit schemes.

Most of the customers get attracted with the PSCB as the interest rates offered by thebank is comparatively more in relation to other public and private banks.

Also the bank offers some margin amount in its schemes which again works in favor ofcustomers as well as the bank.

As such the bank has no brand image like other public and private banks in the market,but the PSCB is famous among the rural folks and is rightly called as SAHAKARIBANK.


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RECOMMENDATIONS

In todays world most of the banks provides ATM facility. So to meet the

competition in the market Punjab State Co-operative Bank should also providethe ATM facility.

Bank should refocus on its interest rate as responded by people. Periodic Review

of the interest rate should be done.

There should be computerized system in the bank as it will reduce the time

wastage of manual work and will lead to the better performance of the bank.

Training of the employees should be there to meet the needs of the time.

More mass awareness campaigns should be organized in order to enhance

market share of bank. So bank should concentrate on its advertisement itself.

Rate of interest should be re viewed periodically.

If the interest rate has been reduced or has become non- favorable to thecustomer, the bank should inform him/her.

There should be complaint boxes installed in the banks that should be opened

weekly and proper redressal of complaints should done.

Maximum practical exposure should be provided to the job trainees so that they

may handle the various enquiries of customer efficiency.

Communication gap within the bank and with the head office should be reduced.

Better infrastructure facilities should be provided to the Manimajra branch of

PSCB.

Banks are advised to have proper internal control measures for monitoring itsfunctions and transactions.

PSCB should open new branches in the rural and urban areas to achieve the

targets.


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BIBLIOGRAPHY

Banking & InsuranceR.K.Sharma & Shashi.K.Gupta

Auditors Report, Balance Sheet & Profit/loss account Of PSCB as on31.03.2010



PSCBDirectory

PSCBLoan Schemes

http://www.punjabcooperation.gov.in/html/aboutus.html

http://pscb.in/welcome.htm

http://www.sify.com/finance/compare_interest_rates/
http://www.punjabcooperation.gov.in/html/aboutus.htmlhttp://www.punjabcooperation.gov.in/html/aboutus.htmlhttp://pscb.in/welcome.htmhttp://pscb.in/welcome.htmhttp://www.sify.com/finance/compare_interest_rates/http://www.sify.com/finance/compare_interest_rates/http://www.sify.com/finance/compare_interest_rates/http://pscb.in/welcome.htmhttp://www.punjabcooperation.gov.in/html/aboutus.html

Documents

Punjab State Cooperative Bank 1 (Repaired)