Sources of finance in RDCC Bank Sindhanur 584128 CHAPTER
-IIntroduction:- Finance is essential for all organization in order
to carry out its day to day activities & to achieve the target
of the enterprise. The business cannot run without adequate
finance. That is why finance is called life of blood of
business.Meaning of sources of finance:- A source of finance means
the agencies from which the funds are obtained or called, method of
raising finance and period for which funds are requiredObjectives
of the study To know from which source bank can get finance. To
know about the company policies regarding utilization of financial
sources. To know about the adoptness of any other new source to the
bank. To know about the to which sources bankers are give the most
preference, whether short term or long term finance. To know about
the which source of finance is very helpful to bank. To know the
effective utilization of sources of finance in bank. To know the
how many sources are used to collect the finance. To know the why
bankers are give importance to specified source. To know the
receipt of interest, brokerage & others as a source.
Advantages of the study Get the information regarding important
financial source. We can get the idea which financial sources have
high interest & which financial sources have low interest. We
can get idea regarding how much interest bank has accept. We can
get the information regarding which sources are suitable to
bank.
Disadvantages of the study We cannot get the information
regarding entire financial sources. It is difficult to
understand.
Statement of problem: Finance is very important to every
business and companies. By getting finance they are approved to
financial sources. But many bank and institutions are not used all
financial sources to get the finance that wise I chosen this topic
(sources of finances) by analyze why they are not use all the
financial sources.
Need of the study:- In the field of business world the finance
has been renowned as the life blood of every business concern. The
financial sources are the most & very essential to run the
bank, without finance nobody cannot do anything in society. So we
need to understand the how they are utilizing financial sources in
bank. And to know which sources are very essential in bank. Scope
of the study:- This study is covers the co-operative bank located
in sindhanur city. For this purpose I have chosen RDCC (Raichur
Distic Center Cooperative ltd) bank manager & staff to collect
the information regarding for the completion of the project.
METHODOLOGY:- The methodology adopted towards study is
descriptive in nature. This covers theoretical aspects relating
towards the sources of finance.Source of data:- The data furnished
in this report has been collected from two sources they are:
Primary sources Secondary sources Primary sources:- The data
furnished in this project has been collected from direct
communication, questioner.Secondary sources:- The Secondary Sources
of data as follows: Internet Books Article Journal Bank
Manuals.
Limitations of the study: The study of finance is restricted to
RDCC bank. The analysis of project is based on the information
given by the bank only. The time confined is very limited. Lack of
sources.
Chapter scheme Chapter- IThe introduction of sources of finance,
History and present scenario of Indian banking system.Chapter IIThe
various objectives, statement of problem, need for the study,
limitations and methodology used are stated.Chapter III The over
all company profile of RDCC bank.Chapter IVThe interpretation data
analyzed and collected are stated. Chapter VThe suggestions are
given in related in related to findings of data analysis and
interrelated.
CHAPTER-II Introduction A bank is an institution which deals in
money. It means that bank receives money in the form of deposits
from public and lends money to the developments of trade and
commerce several economists have defined the term Banking in
various ways. Growth is in bank an outline of money says that the
present day banker has three ancestors merchant, money lender and
goldsmith. a modern bank is something of each of there ,it is said
that money has a properties, it is flat that it can be field up it
is round that it can circulate the progeny of the money lender are
concerned with sound money, circulating money ,cash this definition
shows the origin of banking. A bank performs to important functions
one is accepting the deposits; the other is lending the deposits to
the need people the purpose of accepting deposits is to lend. As
such a suitable definition of a bank should include one more very
important function, namely creation of credit, accordingly bank is
defined as an institution, which deals money and credit .thus a
bank barrows money, lends money and credit. In other words, bank
buys the credit from it customers sell it own credit to them.
Organization HistoryA Bank is a business which provides
financial services for profit. Transactional Banking Services
include receiving deposits of money, lending money and processing
transactions. Bank plays a premier role in the financial system of
a country. The Banking activities include acceptance of deposits
repayment of the same on demand, lending the surplus funds to earn
profits by way of interest, Commission, brokerage etc.Origin of
Bank The word bank or banking is derived from the Italian word
banque which means a bench used by the money-changers and money
lenders in ancient and medieval items. In Italy, Greece, England
and other European countries, the basic function of money lender
was the money lending & the money changing. In England the
origin of banking can be traged to the gold smiths, who used to
perform the functions of lending and changing money. The goldsmiths
used to accept deposits of gold or money from the rich people for
safe custody and issue receipts for the same. In course of time,
because of lack of confidence in goldsmiths, independent banking
institutions were set up to finance, commerce, trade &
industry. By 1830, big bank formed as joint stock companies under
the regulation of government came in to existence in England and
later in other countries.
History of Banking in India The Indian banking can be broadly
categorized into nationalized private banks and specialized banking
institutions. The reserve bank of India acts a centralized body
monitoring any discrepancies and short coming in the system. Since
the nationalization of banks in1969, the public sector banks or the
nationalized banks have acquired a place of prominence and has
since then seen tremendous progress. The need to become highly
customer focused has forced the slow moving public sector Banks to
fast track approach. The unleashing of products and services
through the net has galvanized players at all levels of banking
financial institution market grid to look a new at their existing
portfolio offering. Conservative Banking practice allowed Indian
Banks to be insulted partially from the Asian currency crisis.
Indian Banks are now quoting at higher valuation when compared to
Banks in other Asian countries that have major problems linked to
huge Non-performing Assets and payment default. Co-operative Banks
are nimble footed in approached and armed with efficient branch
network focus primarily on the high revenue niche retail segments.
Meeting the multifarious requirements of the large customers base.
Private have been fast on the uptake and are reorienting their
strategies using the internet and as a medium the interest as
emergency as the new and challenging frontier of marketing with the
conventional physical world tenets being just applicable like in
any other marketing medium.
Structure of Indian banking system
RESERVE BANK OF INDIA
Non-scheduled banks Development banks
State co-operative bankCommercial banks
Commercial banksCentral co-ope. Banks & primary credit
societies
Foreign banksIndian banks
Private sector banksPublic sector banks
New banks (8)Old banks (22)Other nationalized banks(19)SBI &
associated banks (07)
Without a sound and effective banking system in India it cannot
have a healthy economy. The banking system of India should not only
be hassle free but it should be able to meet new challenges posed
by the technology and any other external and internal factors.For
the past three decades India's banking system has several
outstanding achievements to its credit. The most striking is its
extensive reach. It is no longer confined to only metropolitans or
cosmopolitans in India. In fact, Indian banking system has reached
even to the remote corners of the country. This is one of the main
reasons of India's growth process.
The government's regular policy for Indian bank since 1969 has
paid rich dividends with the nationalization of 14 major private
banks of India.
Meaning and Definition of BankMeaning: A bank is an institution,
which deals in money and provides credit. It borrows money from
those who have surplus money & lends the same to those who are
in need of it. It is a dealer financial systemDefinition: According
to h p Sheldons, the function of receiving money from his customer
& repaying it by honoring their cheques as & when required
is the function above all other functions which distinguish a
banking business from any other kind of business.Kinds of banks1.
Central bank2. Indigenous bankers3. Regional rural bank4.
Co-operative bank
1) Meaning of Central Bank:- Most countries have a central bank
which issues the countrys currency and hold the reserve deposits of
other banks in that country. It also either initiates or carries
out the countrys monitory policy, including keeping tabs on the
money supply. 2) Indigenous Bank :- The indigenous bankers who
belonged to different communities lend money on the security of
jewels and also on promissory notes.3) Regional Rural Bank:- A
rural bank is a financial institution that helps rationalize the
developing regions or developing country to finance their needs
specially the projects regarding agricultural progress4)
Introduction of Co-operative Bank
The Co operative banks in India started functioning almost 100
years ago.The Cooperative bank is an important constituent of the
Indian Financial System
, judging by the role assigned to co operative, the expectations
the co operative is supposed to fulfill, their number, and the
number of offices the cooperative bank operate. Though the co
operative movement originated in the West, but the importance of
such banks have assumed in India is rarely paralleled anywhere else
in the world. The cooperative banks in India play an important role
even today in rural financing. The businesses of cooperative bank
in the urban areas also have increased phenomenally in recent years
due to the sharp increase in the number of primary co-operative
banks. Co operative Banks in India are registered under the
Co-operative Societies Act. The cooperative bank is also regulated
by the RBI. They are governed by the Regulations Act 1949 and
Banking Laws (Co-operative Societies) Act,1965. Cooperative banks
in India finance rural areas under: Farming Cattle Milk Hatchery
Personal finance Cooperative banks in India finance urban areas
under: Self-employment Industries Small scale units Home finance
Consumer finance Personal finance
Meaning of cooperative bank: Co-operative bank is an autonomous
association of persons united voluntarily to meet their member's
financial (loans, deposits, other services), economic, social, and
cultural needs and aspirations through a democratically controlled
way.Definition of co-operative bank:Cooperative bank Member-owned
organization n, similar to a mutual savings and loan association
that makes loans and pays interest on pooled deposits. Cooperatives
in the United States are credit unions Federal Intermediate Credit
Banks, and Banks for Cooperatives in the Farm Credit System (FCS) ,
and state chartered savings associations in several New England
states.Some facts about Cooperative banks in India Some cooperative
banks in India are more forward than many of the state and private
sector banks. According to NAFCUB the total deposits & lendings
of Cooperative Banks in India is much more than Old Private Sector
Banks & also the New Private Sector Banks This exponential
growth of Co operative Banks in India is attributed mainly to their
much better local reach, personal interaction with customers, and
their ability to catch the nerve of the local clientele. There are
two main categories of the co-operative banks: Short term lending
oriented co-operative Banks within this category there are three
sub categories of banks vise state co-operative banks, District
co-operative banks and Primary Agricultural co-operative societies.
Long term lending oriented co-operative Banks within the second
category there are land development banks at three levels state
level, district level and village level. Features of Cooperative
Banks: Co-operative Banks are organized and managed on the
principal of co-operation, self-help, and mutual help. They
function with the rule of one member, one vote. Function on no
profit, no loss basis. Co-operative banks, as a principle, do not
pursue the goal of profit maximization. Co-operative bank performs
all the main banking functions of deposit mobilization, supply of
credit and provision of remittance facilities. Co-operative Banks
provide limited banking products and are functionally specialists
in agriculture related products. However, co-operative banks now
provide housing loans also.UCBs provide working capital loans and
term loan as well.The State Co-operative Banks (SCBs), Central
Co-operative Banks (CCBs) and Urban Co-operative Banks (UCBs) can
normally extend housing loans up to Rs 1 lakh to an individual. The
scheduled UCBs, however, can lend up to Rs 3 lakh for housing
purposes.The UCBs can provide advances against shares and
debentures also. Co-operative bank do banking business mainly in
the agriculture and rural sector. However, UCBs, SCBs, and CCBs
operate in semi urban, urban, and metropolitan areas alsBrief
History of Urban Cooperative Banks in India : The term Urban
Co-operative Banks (Cubs), though not formally defined, refers to
primary cooperative banks located in urban and semi-urban areas.
These banks, till 1996, were allowed to lend money only for
non-agricultural purposes. This distinction does not hold today.
These banks were traditionally centered around communities,
localities work place groups. They essentially lent to small
borrowers and businesses. Today, their scope of operations has
widened considerably.The origins of the urban cooperative banking
movement in India can be traced to the close of nineteenth century
when, inspired by the success of the experiments related to the
cooperative movement in Britain and the cooperative credit movement
in Germany such societies were set up in India. Cooperative
societies are based on the principles of cooperation, - mutual
help, democratic decision making and open membership. Cooperatives
represented a new and alternative approach to organization as
against proprietary firms, partnership firms and joint stock
companies which represent the dominant form of commercial
organization.The Beginnings: The first known mutual aid society in
India was probably the Anyonya Sahakari Mandali organized in the
erstwhile princely State of Baroda in 1889 under the guidance of
Vithal Laxman also known as Bhausaheb Kavthekar. Urban co-operative
credit societies, in their formative phase came to be organized on
a community basis to meet the consumption oriented credit needs of
their members. Salary earners societies inculcating habits of
thrift and self help played a significant role in popularizing the
movement, especially amongst the middle class as well as organized
labour. From its origins then to today, the thrust of UCBs,
historically, has been to mobilize savings from the middle and low
income urban groups and purvey credit to their members - many of
which belonged to weaker sections.The enactment of Cooperative
Credit Societies Act, 1904, however, gave the real impetus to the
movement. The first urban cooperative credit society was registered
in Canjeevaram (Kanjivaram) in the erstwhile Madras province in
October, 1904. Amongst the prominent credit societies were the
Pioneer Urban in Bombay (November 11, 1905), the No.1 Military
Accounts Mutual Help Co-operative Credit Society in Poona (January
9, 1906). Cosmos in Poona (January 18, 1906), Gokak Urban (February
15, 1906) and Belgaum Pioneer (February 23, 1906) in the Belgaum
district, the Kanakavli-Math Co-operative Credit Society and the
Varavade Weavers Urban Credit Society (March 13, 1906) in the South
Ratnagiri (now Sindhudurg) district. The most prominent amongst the
early credit societies was the Bombay Urban Co-operative Credit
Society, sponsored by Vithaldas Thackersey and Lallubhai Samaldas
established on January 23, 1906.The Cooperative Credit Societies
Act, 1904 was amended in 1912, with a view to broad basing it to
enable organization of non-credit societies. The Maclagan Committee
of 1915 was appointed to review their performance and suggest
measures for strengthening them. The committee observed that such
institutions were eminently suited to cater to the needs of the
lower and middle income strata of society and would inculcate the
principles of banking amongst the middle classes. The committee
also felt that the urban cooperative credit movement was more
viable than agricultural credit societies. The recommendations of
the Committee went a long way in establishing the urban cooperative
credit movement in its own right.In the present day context, it is
of interest to recall that during the banking crisis of 1913-14,
when no fewer than 57 joint stock banks collapsed, there was a
there was a flight of deposits from joint stock banks to
cooperative urban banks. Maclagan Committee chronicled this event
thus:As a matter of fact, the crisis had a contrary effect, and in
most provinces, there was a movement to withdraw deposits from
non-cooperatives and place them in cooperative institutions, the
distinction between two classes of security being well appreciated
and a preference being given to the latter owing partly to the
local character and publicity of cooperative institutions but
mainly, we think, to the connection of Government with Cooperative
movement.Under State Purview: The constitutional reforms which led
to the passing of the Government of India Act in 1919 transferred
the subject of Cooperation from Government of India to the
Provincial Governments. The Government of Bombay passed the first
State Cooperative Societies Act in 1925 which not only gave the
movement its size and shape but was a pace setter of cooperative
activities and stressed the basic concept of thrift, self help and
mutual aid. Other States followed. This marked the beginning of the
second phase in the history of Cooperative Credit
Institutions.There was the general realization that urban banks
have an important role to play in economic construction. This was
asserted by a host of committees. The Indian Central Banking
Enquiry Committee (1931) felt that urban banks have a duty to help
the small business and middle class people. The Mehta-Bhansali
Committee (1939), recommended that those societies which had
fulfilled the criteria of banking should be allowed to work as
banks and recommended an Association for these banks. The
Co-operative Planning Committee (1946) went on record to say that
urban banks have been the best agencies for small people in whom
Joint stock banks are not generally interested. The Rural Banking
Enquiry Committee (1950), impressed by the low cost of
Establishment and operations recommended the establishment of such
banks even in places smaller than taluka towns.The first study of
Urban Co-operative Banks was taken up by RBI in the year 1958-59.
The Report published in 1961 acknowledged the widespread and
Financially sound framework of urban co-operative banks; emphasized
the need to establish primary urban cooperative banks in new
centers and suggested that State Governments lend active support to
their development. In 1963, Varde Committee recommended that such
banks should be organized at all Urban Centres with a population of
1 lakh or more and not by any single community or caste. The
committee introduced the concept of minimum capital requirement and
the criteria of population for defining the urban centre where UCBs
were incorporated.Duality of ControlHowever, concerns regarding the
professionalism of urban cooperative banks gave rise to the view
that they should be better regulated. Large cooperative banks with
paid-up share capital and reserves of Rs.1 lakh were brought under
the perview of the Banking Regulation Act 1949 with effect from 1st
March, 1966 and within the ambit of the Reserve Banks supervision.
This marked the beginning of an era of duality of control over
these banks. Banking related functions (viz. licensing, area of
operations, interest rates etc.) were to be governed by RBI and
registration, management, audit and liquidation, etc. governed by
State Governments as per the provisions of respective State Acts.
In 1968, UCBS were extended the benefits of Deposit
Insurance.Towards the late 1960s there was much debate regarding
the promotion of the small scale industries. UCBs came to be seen
as important players in this context. The Working Group on
Industrial Financing through Co-operative Banks, (1968 known as
Damry Group) attempted to broaden the scope of activities of urban
co-operative banks by recommending that these banks should finance
the small and cottage industries. This was reiterated by the
Banking Commission (1969)The Madhavdas Committee (1979) evaluated
the role played by urban co-operative banks in greater details and
drew a roadmap for their futurerolerecommending support from RBI
and Government in the establishment of such banks in backward areas
and prescribing viability standards.The Hate Working Group (1981)
desired better utilization of banks' surplus funds and that the
percentage of the Cash Reserve Ratio (CRR) & the Statutory
Liquidity Ratio (SLR) of these banks should be brought at par with
commercial banks, in a phased manner. While the Marathe Committee
(1992) redefined the viability norms and ushered in the era of
liberalization, the Madhava Rao Committee (1999) focused on
consolidation, control of sickness, better professional standards
in urban co-operative banks and sought to align the urban banking
movement with commercial banks.A feature of the urban banking
movement has been its heterogeneous character and its uneven
geographical spread with most banks concentrated in the states of
Gujarat, Karnataka, Maharashtra, and Tamil Nadu. While most banks
are unit banks without any branch network, some of the large banks
have established their presence in many states when at their behest
multi-state banking was allowed in 1985. Some of these banks are
also Authorized Dealers in Foreign ExchangeRecent DevelopmentOver
the years, primary (urban) cooperative banks have registered a
significant growth in number, size and volume of business handled.
As on 31st March, 2003 there were 2,104 UCBs of which 56 were
scheduled banks. About 79 percent of these are located in five
stateFunctions of district center of co-operative bank in India
These are the principal co-operative societies in the districts, in
a state, the primary object of which is functioning other
co-operatives, particularly the PACBs in the district. The DCCBs
came in to existence after the passing of co-operative societies
Act, 1912. These institutions also undertake banking business.These
institutions act as balancing centers of finance at the district
level. They purvey the short term & medium term credit to the
agriculturists. They also supervise the PACBs in the districts.
Meaning of sources of finance:- A source of finance means the
agencies from which the funds are obtained or called, method of
raising finance and period for which funds are required.The finance
requirements can be classified into two categories: Fixed capital (
long term financial requirements ) Working capital ( short term
financial requirements )Fixed capital:- Long term funds are
required to meet the capital expenditures such as purchase of Land
and Building, Plant and Machinery, furniture etc.Working capital:-
Short term funds are required to meet out day to day expanses such
as purchases of row material, payments of salaries and wages
etc.Classification of sources of finance:- The sources from which a
business meets its financial requirements can be classified as
follows:1. on the bases of period 2. on the bases of ownership3. on
the bases of sources of generation
On the bases of period:-On the bases of period, the sources of
finance can be classified as follows: long term source:E.g. shares,
debentures and long term loan. Short term sources:E.g. loans from
commercial banks, public deposits, trade credit etc.On the bases of
ownership:- On the bases of ownership, the sources of finance can
be classified as follows: Own capital: E.g. share capital, retained
earnings, reserves and surplus. Borrowed capital:E.g. debenture,
public deposits, loans etc.On the bases of source of generation:-
On the bases of sources of ownership, the source of finance can be
classified as follows: Internal sources:E.g. retained earnings,
depreciation fund etc. External sources: E.g. shares, debentures
and loan
Classification of Sources of Finance
Short term Long & medium term
1. indigenous bankers Issue of shares 2. customers advance Issue
of debentures 3. trade credit plugging back of profit4. bank credit
public deposits5. factoring loans from financial institutions6.
accruals7. differed incomes8. commercial paper9. installments
credit
Short term finance:- Meaning of short term finance:- It is a
fund required to meet the short term needs of working capital for a
period of 12 months or less than 12 months. It is used for office
equipment, furniture, loose tools, payment of salaries & wages,
purchase of row materials etc.1. Indigenous bankers:- Private money
lenders are called indigenous bankers. They charge very high rate
of interest. Business enterprises obtain the loan from indigenous
bankers to meet their requirements of working capital.2. Customers
advances:- Companies may take advance from their customers for
meeting out their short term financial requirements. 3. Trade
credit:- It is a credit granted by seller to the buyer for a short
period. It is made available to companies who have sufficient
financial reputation and goodwill. Trade is granted on an open
account bases I.e. the supplier sends the goods to the buyer for
the payment to be received in future as per the term of sales
invoice.
4. Bank credit:- Commercial banks provide the short term finance
to business concerns by way of: Cash credit Overdraft Bill
discounted and purchased5. Cash credit:- It is a short term loan
given by the banker to customer, against a tangible security or
promissory note signed by at least two parties.Over draft:- It is a
temporary loan given by the banker to customer against the current
account. Usually such loan is repayable within 90 days. Overdraft
means the current account holder can withdraw the amount more than
the balance maintained in the account. Interest is charged on the
actual amount withdrawn. Over draft accounts can be secured or
unsecured but usually secured.Bill discounted and purchased:- Bill
discounted means taking the bills of exchange receivable by a
customer and paying him the amount of bill before maturity after
deducting their discount charges.
5. Factoring:- Factoring is a method by which a businessman
obtains cash for invoice that he sends to his customers in respect
of goods and service to them. Factoring is also called invoice
discounting. Factoring is a method of financing under which a
business enterprise obtains cash by selling or accounts receivable.
The outright sale of accounts receivable by a business concern
against cash is called factoring Factoring may render the service
on the bases of recourse or non-recourse1. Recurring bases:- It
means risk and bad debts by the client.2. Non-recourse basis:- It
means risk of credit is borne by the factory6. Accruals:- Companies
postpone the accrued expenses in respect of which payment are due.
This delay in payments of accrued expenses helps the company to use
such amount for meeting their short term financial requirements of
expenses like Accrued expenses, wages, salaries, interest and
taxes, but delay in payment may reduce the credit worthiness &
goodwill of the company.
7. Deferred incomes:- There are the incomes received in advance
before supplying the liquidity of a firm.8. Commercial incomes:-
Commercial paper represents unsecured promissory notes issued by
firms to raise the short term funds. It may be issued event at a
discount. The maturity period of commercial paper in India mostly
ranges from 91 to 180 days.9. Installment credit:- Purchase of any
durable or capital goods like plant & machinery, furniture
etc.Paying the cash price by way of installment including interest
over a pre-determined period of time. In this system, buyer becomes
owner immediately & has to take the possession of goods.
Usually interest is charged on unpaid balance.
Long term finance:- It is a fund required to meet the long term
needs of working capital for more than 12 month1. Issue of shares:-
Meaning of shares:- The total capital of the company is dividend
into small units of small denominations. Each unit is called share.
Meaning of stock:- The bundle of fully paid up share is called
stock. In another wards, the aggregate of fully paid up share is
called stock.Equity shares:- These are shares which do not carry
preferential right in respect of payment of dividend or payment of
capital. Equity share are called ordinary shares or common shares.
Equity share capital is ownership capital in a company. Equity
shareholders are called owners of a joint stock company. These
shareholders have control over the working of the company. Equity
shareholders are paid dividend after paying the dividend to
preference shareholders. That is why they are called residual
claimants the rate of dividend payable on equity shares depends
upon the profits of the company. These shareholders take more risk
in dividend & return of capital.
Preference shares:- Preference share are those which enjoy two
preferential rights over equity share:A. Preference as to payment
of dividend at a fixed rate.B. Preference as to the return of
capital when the company winds up. Whenever the company has
distributable profits, the dividend is first paid on preference
capital. Afterwards the remaining profit is distributed as a
dividend to other shareholders.2. Issue of debentures:- It is a
long term borrowed of capital. A debenture is an acknowledgement in
writing of debt taken by a company Meaning:- The word debenture is
derived from the Latin word debar which means to owe. Therefore
debenture is an acknowledgement give by a company of a debt in the
form of certificate: Definition:- Section 2 (12) of the companies
Act, debenture includes debenture stock, bonds & any other
securities of a company whether constituting a charge on the assets
of the company or not
3. Plugging bank of profits:- Part of the profits is retained or
reinvested in the company. This process of retaining profits year
after year & their utilization in the business is also known as
ploughing back of profits or self financing or Internal financing
or Internal Financing.4. Public deposits:- Company may invite the
general public to deposit their savings with the company at a
specified rate of interest for a specified period which may range
from 1 year to 6 years. The total amount of such deposits should
not exceed 25% of the aggregate paid-up capital & free reserves
of the company. In order to help the repayment of deposits maturing
during a year, a part of the assets of the company shall, before
the 30th day of April of each year, deposit or interest, a sum
which shall not be less than 10% of the deposits maturing during
the year ending on 31st march next following, in a scheduled bank
or government securities5. Loans from finance institution:- These
institutions are set up by the government with the objective of
stimulating industrial development in the country by financing the
industries.
Chapter- IIIIndustrial profile Co-operation is a form of
organization wherein persons voluntarily associate together on the
basis of equality for the promotion of their economic interest
under this system people with limited means are benefited much.
Each for all and for each is the philosophy and principle of
co-operation.The history of co-operative movement in India began at
the end of 19th century. Several credit cooperative societies were
established in the states of the Punjab and Uttar Pradesh. During
that period the madras government sent Sir Fredric Nicholson to
Germany to study the co-operative movement taking place there.
Nicholson submitted his report in 1895 and suggested to establish
raiffiesen model societies in our country. In 1901 the Famine
commission also recommended for the establishment of these
societies. Based on this, the government passed Co-operative
societies act in 1904. This act laid the foundation for
co-operative movement in India. The co-operative societys act 1904
gave opportunity for the establishment of raiffiesen model societys
rural areas and Schultz doltish societies in cities. However, there
were some defects in this act this act did not provide opportunity
for credit societies and the distinction between cities and rural
areas was not made on scientific basis therefore, in order to
remove these defects the New co-operative societies act was passed
in 1912 In 1919 the government promulgated another co-operative act
and co-operation was entrusted to the state authority this act has
given right to the states either to follow the 1912 co-operative
societies act or to enact there own law. As a Result, the states
have established co-operative societies according to regional
requirements the great depression of the world gave a big blow to
co-operative movement but during the Second World War co-operative
movement again started flourishing
AFTER INDEPENDENCE: - After independence co-operative movement
received good encouragement from the government. Co-operative
movement has become the basic principle of planned development
during the five year plans. During the plan period different
co-operative societies were established. Co-operative movement has
achieved rapid progress in the states of Karnataka, U P,
Maharashtra, Tamil Nadu, Gujarat, Punjab, Hariyana etc.
co-operative movement has spread all over the country .
Co-operative societies are especially suitable for the development
of small and cottage industries. Therefore co-operative societies
were established in every corner of the economy.PROGRESS OF
CO-OPERATIVE MOVEMENT Co-operative sector in India is the largest
in the world. In 1950-51 the total number of agriculture primary
credit societies was 1.05 lakhs with 44lakh members. They had Rs
37.25 crore as working capital and had advanced credit to the tune
of Rs 23 crore. In 1998-99 there were 91720 agricultural primary
societies with 8.12 crore members. During this period their total
working capital was Rs 10718 crore. During the same period 2970
primary land development banks and 7460 primary agricultural
marketing societies were functioning with a total membership of 48
lakh. in 1998-99 the total number of all types of societies were
3.95 lakh and the total membership was 18.96 crore. They had Rs
118700crore as share capital.
Board of directors: 1. Mr.vishvanath patil (president)2.
Mr.manjunath siddapoor (vice-president)3. Mr.C.ningaraj 4.
Mr.halappa achar (director)5. Mr.mnohara maski (director)6.
Sharanagoud bayyapoora (director)7. Mr.ramesha vaidya (director)8.
Mr.rajashekar nayaka (directer)9. Mr.K.sharanappa(directer)10.
Mr.pampanagoud badarli (directorss)11. Mr.anantaraddy halli
(director)12. Mr.appanagouda kalakanagouda (director)13.
Mr.muniyappa hubli(director)14. Mr.hanumanagouda patil
(director)15. Mr.timmayya shetty (director)16. Mr.jabbar beg 17.
Mr.narayana raju (special invite director)18.
Mr.B.mahadevayya(special invite director)
Values of co-operative bank1. self responsibility2. democracy3.
solidityIn tradition of their founders, co-operative members
believe in the ethical values of honesty, openness, social
responsibility & caring of other.Principles of co-operative
bank; 1. Voluntary & open membership only for co-operative
societies which are working in raichur district only.2. Democratic
member control.3. Member economic participation.4. Autonomy &
independence.5. Education, training & information.6.
Co-operation among co-operators.7. Concern for community.
Branches of RDCC bank 1. Head office Raichur2. Gunj branch
Raichur3. City talkies road Raichur4. Gajgarpet Raichur5.
Nijalingappa colony Raichur6. Station area Raichur7. IDSMT layout
Raichur8. Manvi9. Sindhanur10. Gangavati11. Koppala12. Yalburga13.
Kukunoor14. Kushtagi15. Hanumasagara16. Lingasugur17. Devadurga 18.
Kavital19. Koppals station area
RESARVE BANK OF INDIA THE CO-OPERATIVE STRUCTURE
NATIONAL BANK FOR AGRICULTURAL AND RURAL DEVELOPMENT
CO-OPERATIVE CREDIT SOCIETIES OTHER CO-OPERATIVE SOCIETIES
NON-AGICULRAL CREDIT SOCIETIES AGRICULTURAL CREDIT SOCIETIES
LONG TERM AGRICREDIT SOCIETIES SHORT TERM AGRI CREDIT SOOCIETIES
Urbanco-opebank Employeesco-ope Credit Societies Primary credit
societies Central co-operative banks State co-operative banks
Primary credit societies Primary land devpt banks Central land
devpt bank Company ProfileIntroduction: - The RDCC (Raichur
District Commercial Co-operative Bank) was been established in the
year in the year 1919. In between the Krishna & Tungabhadra
River middle place Raichur and koppal district has its 18 branches
and 215 VSSBN agencies (Vyavasaya Seva Sahakari Bank Niyamita). The
RDCC bank has a huge working capital of Rs 28283.53 lakhs and has
lent loans of Rs 17209.22lakhs already and has gained satisfaction
of the customers through the effective service. The branch of
sindhanur has been started in the year 1921.It is the one of the
major branch of RDCC bank and has the highest record as compare to
the others of Raichur district. The sindhanur branch has landed the
loans of Rs 50 crore among which 35 crore in agriculture loan
remaining in non agriculture. The RDCC bank not only a lending bank
but it also has the facility of different accounts like savings
A/c, current A/c and also the fixed deposit A/c. Apart from this
the bank offers a special scheme called as YASHASHVINI health
insurance scheme for the members of the VSSBN, with just an annual
fee of Rs150 for each person which can be extended to is whole
family. And also offers a special card called KISAN CREDIT CARD for
the farmers who taken loan under this card the loan amount will be
transferred and the interest will be charged only to the amount
withdrawn. This is one of the unique services of this bank.
The interests for the rate for the different accounts are shown
below:Interest of bank in 01 July 2011:SAVING ACCOUNT INTREST :
4.00 (IN %) INTREST OF FIXED DEPOSIT:FIXED DEPOSIT A/CINTREST (IN
%)
15DAYS TO 30DAYS4.00
31DAYS TO 45DAYS4.50
46DAYS TO 90DAYS5.50
91DAYS TO 120DAYS6.75
121DAYS TO 180DAYS7.50
181DAYS TO 1YEAR8.50
1YEAR TO 2YEAR9.50
ABOW 2 YEARS9.25
BANKING MEMBERS:-COLLECTING OF FUND IN
MEMBERSSL.NOSUMMERY31-03-201031-03-2012
01COMEETIES804828
02GOVT001001
TOTAL805829
SHARE CAPITAL:-THE BANK COLLECTING OF SHARE
CAPITALSL.NOSUMMERY31-03-201131-03-2012
01FROM COMEETIES908.031004.99
02FROM GOVT381.87381.87
TOTAL1289.901386.86
FUND:-SUMMERY OF VARIES FUND IN BANK ON 31-03-2011
PARTICULERS31-03-201131-03-2012
RESARVE FUND FREE RESARVE289.39301.34
OTHERS FUND746.73754.25
TOTAL1036.121055.59
Depositers:-SUMMERY OF VERIES DEPOSITS CONSERN WITH THE BANK ON
31-03-2011 Summery31-03-201031-03-2011
1.Organisation DEPOSITS8487.568511.61
2.PERSONAL DEPOSITS8509.259266.64
3.COMEENITY DEPOSITS2237.562417.87
TOTAL19234.3720195.94
BORROWING LOANS:-SL.NOSUMMERRY31-03-2010BALANCE2010-11BORROWING
LOAN2010-11REPAYBLE31-03-2011BALANCE
1SHARTE-TERM LOAN9091.878258.589291.878058.58
2MEDIUM-TERM LOAN222.56_62.08160.48
3LONG-TERM LOAN0.76__0.76
TOTAL9315.198258.589353.958219.82
WORKING CAPITAL:-WORKING CAPITAL IN ORGANISATION 31-03-2011 IN
RS.3173.14 IN LACK END OF THE YEAR REPORT SHOWING WORKING CAPITAL
RS.3227.21 LA
Loans and advances:-
SL.NOPARTICULERS31/03/201031/03/2011
1SHORT-TRM AGRICULTUR13833.7915542.67
2MEDIUM-TRM AGRICUTUR520.58728.57
3MEDIUM-TRM (IN %)24.6311.82
4LONG-TRM AGRICULTUR886.90593.94
5NON- AGRICULTUR (S)4374.744081.69
6NON-AGRICULTUR (M)1151.451535.78
7NON-AGRICULTUR (L)238.08407.97
8EVALUATION COMEETY BALANCE29.1631.95
TOTAL21059.3322934.39
RS.24282027.27 PROFIT TRASACTION SUMMARY THE YEAR OF 2011
SL.NOPARTICULERS%AMOUT(IN RUPEE)
1RESARVE FUND25%6070507.00
2EDUCATION FUND2%364230.00
3DISTRUBUTE DEVIDEND6.50%9014615.00
4AGRICULTURAL CREDIT STABILISATION FUND25%2208169.00
5BAD&DOUTFULL DEBTS FUND25%1656127.00
6INVESTMENT FLACTUVATION FUND10%496838.00
7CONSTRACTION FUND60%2682925.00
8SPECIAL MEMBERS FUND5%89431.00
9ORGANISATION FUND5%84959.00
10DEVIDEND EQULISATION FUND5%80711.00
11YASHASVINI FUND3%46005.00
12NON-DISTRIBUT AMOUNT1487510.00
Promoters:- The RDCC bank is a state government bank which deals
as per the instructions of RBI. The bank does not have any other
promoters but the bank collects funds from the NABARD bank. Trough
the help of APEX bank. The sindhanur branch has the following chair
persons.1} Mr. Pampana Gouda badarli [VSSBN]2} Mr. Amare Gouda
Virpapur [Urban bank]3} Mr. VenkanGouda Malkapur [TAPCMC]Company
mile stone Minimum NPAs only just 3 %. Highest growth rate of 22%.
2008-09 maximum recovery (93%) and good service Award. Bank had
created goodwill among the common people.
Objectives of the bank To help the common peoples by providing
loans in less interest. Develop the common peoples life in
economically Help to formers by providing agricultural loan.
Vision of the bank: To protect collected money. Provide better
service. Mission statement of bank: While working on co-operative
principles provide resources and provide loans to all borrowers
with more forecast on micro finance and non form sector ( NFS ) as
also to provide modern banking services has to bring about economic
development along with social welfare of its members and to achieve
its own violate. Different services of RDCC bank : - Providing
loans in to categories agricultural loan Non agricultural loan Crop
loan, irrigation loan , forestry loan , pond loan , godown loan,
tractor loan etc Gold loan , SME loan , home loan , etc Kisan
credit card for the formers. Yashsvini health insurance for the
members of the VSSBN Low rate interest rates & safe-deposit
locker facility etc Different Accounts facilities
Savings A/c Current A/c Recurring deposit A/c Fixed deposit
A/c
Organizational structure:
Branch manger
Assistant manager
Supervisor
CashierAccountants
Junior assistant
Clarks
Attainders
BALANCE SHEET AS ON 31-03-2009 :Liabilities Amount
Assets Amount
Fixed Deposit Societies64036745Bank account 6293649.38
Fixed Deposit Individuals18315944Investment with PGB snd
12340214
Fixed Deposit Institutions6958680Syndicate bank 10240
Reserve Fund Of Societies11630599.84Loans & advances 0
Jeevan Jyothi Deposit Societies12347486S T loans big farmers
18016
Jeevan Jyothi Deposit Individuals1946004S T loans small farmers
58494
Jeevan Jyothi Deposit Institution70141.4K C C big farmers
149959725
Special Deposit Scheme If Any 14400K C C small farmers
125654883
Recurring Deposit Individual & Inst321935M T form sector
16800705.4
Kamadenu Deposit A/c 76338.5S T other crops 1500000
Saving Societies24777843.86M T non form society 481390.1
Savings Individuals11399058.7S T liquidated society425069
Saving Institutions18402270.01M T O loans liquidated 47400
Current Societies4999588.73Non agri S T loans85769
Current Individuals390643.88L T loan land development
23756685
Unclaimed Deposits380674.12Rural godown construction
11506123
Conditional S B A/C (GFA)839625b)housing to general 2506135
Other Liabilities0C C employees societies C C 113520348
Suspense Liabilities1944198.74C C Tapepsts fishery production
610000
Individual & Institution502598.6C C clean A/c 0
Clearing Suspense liabilities 32154S T Marketing
Crop56509870
Interest Payable On Deposits3056614.5Salary Earners
Loan3538119.4
Others payable Pay Order A/C972175Petty Traders0
Head Office Account241662353.7Over Drafts5297095
NET PROFIT15616371.18S H G Loan4849282
Loan On FD/RD/Contribution3823199
Loan On NSC113296
Other Assets0
Bills Receivable Form GOI792191
Trading Account/Sale Of Forms60883
Furniture & Fixture26446
440694443.78440694443.78
Profit & Loss a/c for the Year Ending
31-3-2010ExpenditureAmountIncomesAmount
To interest paid on Deposits & Borrowings11,538,626.98By
interest & discount52,299,155.34
To Rent, Taxes, Insurance, Lighting etc.133,409.00By commission,
Exchange & brokerage52,240.00
To stationary, Printing, & Advertisement charges11,632.00By
interest on investment & deposits37,282.00
To other Expenditure & contingencies284,172.33By locker
rent19,700.00
By miscellaneous incomes936,064.56
Balance of profit before tax41,376,601.59
Total expenditure53,344,441.90Total income53,344,441.90
Balance sheet as on
31-3-2010Liabilities31-3-2010assets31-3-2010
Statutory Reserve fund220.00Cash in hand4464377.00
Fixed deposit individual31307412.12Current a/c in
India11843254.11
Fixed deposit other societies91693167.24Other
investment10,332,468.00
Saving bank deposit individual14613082.63Other tangible
securities ST Agri loan & non Agri loan415360653.50
Saving bank deposit other societies61325151.88Jewel
loans7454385.00
Current deposit individual545788.88Cash credit
loans17438984.00
Current deposit other societies14640643.46MT Agri & non-Agri
loans40790621.78
Head office account 350,490,397.14Housing loans3561095.00
Suspense liability1,726,133.54Long term loans60972034.00
Interest payable3,892,538.50Amount due from the individual &
societies545577773.28
Over due interest reserve as per contra116,236,917.29Amount over
due48318000.00
DD & pay order payable143,55.00Bill receivable from
GOL673,610.00
Service tax payable195.00Interest receivable on loan as per
contra116,236,917.29
Subsidy for self help groups2,513,200.00
Total liabilities689128399.68Total assets689128399.68
Profit and loss A/C for the year ending
31-03-2011:expenditureAmount Incomes Amounts
Interest paid on deposits12126143.50Interest received on
investment924395
EstablishmentCharge1927997Interest received on non-agri
loans156699315.35
Medical Allowances
4500Interest received on agri loans30762090
P,F. contributionBy bank118079Commission &Brokerage
49750
T.A. to staff13435Locker rent received 20288
Office rent82500Miscellaneousincomes 1259768.79
ElectricityCharge54656
Postage &Telephone10830.5
Stationary for office use10497
Subscription toPeriodicals1142
National festivalExpenditure1078
Petrol charge64558
Hire charge54000
Contribution towards PAIS5541
MiscellaneousExpenditure157624.53
Clearing house rent9000
Interest paid onHEAD OFFICE A/C24970916.19
Profit during the year9124770.42
total48715607.1448715607.14
BALANCE SHEET AS ON 31-03-2011LIABILITIESAMOUNTASSETSAMOUNT
Statutory reserve fund51820Cash on hand5200420
Fixed deposits129881532.84Bank balance26242371.06
Societies56367781Investment on STD with national bank4245836
Individuals34779178Short term loans76510
Institution 4208070KCCF BF156670899
Reserve fund societies15417250.54KCCS SF21588151
Jeevana jyothiInstitution17857Medium termAgri33254482.40
Jeevan jyothiIndividuals3066140Long term loan Agri24994498
Jeevan jyothiSocieties15468041Short term loan
(non-agri)85769
Recovering deposits557215Cash credit loan23645680
Demand deposits90475782.03M T non agri 1880947.10
SB A/C societies12216119.73SHG loans11888732
SB A/CIndividuals16816931.37S T marketing35354231
SB A/CInstitutions23370171.87L T rural go down24920004
Contribution SB A/C (GFA)1162625Salary earner loan5169137.61
Current societies36129609.60Petty traders109216.50
Current individuals389571.88Gold loan16576532
UnclaimedDeposits390753.12Loan on deposits4041752
SuspenseLiabilities1374666.46House BLDG (gen)4171644
Pay order 174213Short term loans325069
Reserve fundSubsidy (RRG&SHG)3428200Medium term
regular47400
Service tax payable29312Other assets601566
Over due interest on loans95742467.68Over due interest on
loans95742467.68
Interest receivable on loans21071247.32Interest receivable on
loans 21071247.32
Interest payableOn deposits3716171
Head office a/c351834379.92
Profit for the year 2010-20119124770042
Total706904562.67706904562.67
Some scheme provided by bank to customersSwarozgar credit cards
for the small business mens.The RDCC bank offers a special scheme
called Swarozgar credit card scheme under this scheme the person
who have got the credit has a option like as the use so the intrest
. It means is that the loan amount will be transferred in that
credit card the intrest will be charged only the amount withdrawn
by the user of that card. This organization wants to help the
government by the providing loans to people & removal of
unemployment problem. The RDCC also has a scheme like swasahayaka
gumpu yojane. Under this scheme the bank give loan to the youths
usually the members of SJSRY (swarna jayanti swarozgar yojane).
From that they will earn something return to the bank if they wont
earn also bank wont allow intrest on the such loan. After earning
again that earned amount is lended to others from that they recover
and distribute among the members of such group
Jivan jyothi term deposit scheme and locker Facility. This is a
term deposit scheme offered by the RDCC bank in this scheme the
interest rate will be given at 6% per annum. They offer compound
intrest for the for this scheme. Example if person invested Rs
100000 after one year he will get 106000 Rs if he will invest for 2
years he will get intrest on the whole amount means including the
intrest. Locker facilities:- The RDCC offers safe deposit locker
facility also at all the branches. Of the district this is one of
other feature of this bank. YASHASVINI YOJANE SCHEMEThe RDCC bank
offers a special scheme called as yashasvini yojane scheme under
this the members of VSSBN (vyavayasaya seva sahakari bank niyamita)
has to pay 150 Rs annually and they will get benefit of medical
fees while in case of claims. This scheme was promoted by the
government of India to protect the farmers against the diseases.
The farmers of Raichur district will get benefit of medical
facility in the following hospitals i. Rajiv Gandhi hospital
Raichur (OPEC)ii. Annadaneshvari hospital Sindhanur iii. R G patil
eye hospital Sindhanur. Etc.
Products of bankThere are mainly 3 products are there they are1)
Saving account2) Current account3) Term deposit
Saving account Meaning:- An account used to deposit money at a
bank or credit union and earn interest on the account over time.
Money can be added or removed from the account by visiting the
bank. Usually you can add or withdraw funds at any time; there is
no cost to do so. Banks may require a minimum to open or to
maintain the account.
PROCIDURE OF OPEINING SAVINGS A/C 1) They must submit election
id (Xerox) to bank 2) Ration card need to submit 3) 2 Photos with
filled form 4) Signature existed A/c holder of that bank 5) Nominee
name compulsory.6) SB account with out cheque facility Rs .2507) SB
account with cheque facility Rs.5008) Interest rate is 3.50%
Current account Meaning:- The account balance is defined by the
some of the value of imports and services plus net returns on
investments abroad, minus the value of goods and services, where
all these elements are measured in the domestic currency. The
Account opening charge is 5000 Rs Term deposit: Meaning:- A deposit
held at a financial institution that has a fixed term. These are
generally short term with maturities range in anywhere from a month
to a few years. Than a term deposit is purchased, the lender or the
customer understands that the money can only be withdrawn after the
term has ended or by giving a predetermined number of days
notice
RDCC bank provided 2 types of loans they are:1. agricultural
loan2. non agricultural loanAgriculture loansAgricultural loans are
provided by the RDCC bank The agricultural loans includes the
followings1) Short-term loans 2) Medium-term loans3) Long-term
loans
1) Short-term loans:- These loans refer to the loans which are
landed for the period of one year these loans includes the
following categories. Kisan credit card Crop loan Cattle loans
Tractor loan Kisan credit card:- Its a type of credit card offered
by the RDCC bank to the Farmer who took loan called Kisan credit
card loan,
Feature of Kinas credit card This card is only for the Farmer
who took loan In this card only the loan amount is credited. The
interest is charged only on the amount withdrawal from credit card
Crop loan :- The crop loan is given to the Farmer on the security
of land to purchase the seeds & to incure the expenditure on
production of crop.Cattle loans :- The cattle are a special loan
lended by the RDCC bank which is helpful to the Farmer to purchase
cattles like bullocks etc. Tractor loan : - The RDCC bank provides
financial support in purchase of the tractor for the Farmer at a
lower interest rate. Its intention is to help Farmer to develop
their yielding.2) Medium-term loans:- These loans refer to the
loans which have been landed for the period above 1 year to below
10 years. These categories of loans include the following. Pond
construction loan Pump set loan etc
3) Long-term loans:- These are the loans which are landed for
the period of more then 10 years are to be called as long term
loans. Godown construction loan Agriculture implements loan Rural
development scheme etc. Irrigation loans
Interest rates for the agriculture loans The RDCC bank is an a
government organization which offers the different agriculture
loans, the interest rate for the agriculture loan is 11% but the
government itself pay 8% to the bank and remaining 3% only the
interest charged by the bank on loans. Non-agricultural loansApart
from the agriculture loans the RDCC offers non agriculture loans
like the followings 1. House loan2. Small term marketing loan 3.
Educational loan 4. Gold loan5. Vehicle loan
1) House loan:- The RDCC bank offers the house loan at lower
interest rates, the barrower of the loan must have to pledge the
documents of the house. Procedure for getting house loan Account
open in the bank Surety of a existing account holder in the same
Bank Security (Land documents) The house loan will be sanctioned
The interest rate for the loan 11.502) Small term marketing loan:-
These are the loans provided by the bank to the small scale
businessmans to develop their business. Procedure for getting ST
marketing loan The account should be opened in RDCC bank. They need
to submit 3years balance sheet as well as profit& loss A/c
Surety of an existing account holder in that bank. And the loan
will be sanctioned within 5-10 days The rate of interest for this
loan is 10.50%.3) Educational loan:- The RDCC bank also offers the
educational to the students, the educational loan limit up to 5
lakes rupees. The intention before providing educational is to help
the students of the rural areas is the motive of this loan.
Procedure for getting educational loan :- The loan taker must have
an account in the RDCC bank He need to submit his Marks cards to
the bank Surety can also be needed , and also the security The
interest rate charged for education loan is 13.00%
4) Gold loan:- The bank offers the gold loan also in order to
fulfill the needs of the customers. The bank charge interest at
12.00% for gold loan.5) Vehicle loan:- The RDCC bank help the
people who desire to own a vehicle by providing them financial help
through the vehicle loan. These are the various loan schemes
offered by RDCC bank under the category of Agriculture loan.Social
responsibilityThis bank not only gives importance to co-operative
sector but also gives importance to education, health & social
programs & also encourages them. Without any discrimination it
helps people according to their qualification. It helps the
patients suffering from kidney problem, cancer & other
diseases.
Chapter-IVANALYSIS AND INTERPRETATION
1. What are the various sources of finance? Sources of finance
are reserves, deposits, borrowing from higher financing agencies
etc.
Table 4.1Sources of finance20102011
Reserves4%0.4%
Deposits 26%38%
Higher financing agencies70%62%
Graph 4.1
INTERPERATATION: This table shows that various sources of
finance used in RDCC bank. Those financial sources are changed
their position year to year.
2. By reaching the bank goal which financial sources bank will
selected, why? Deposited collected from the customers is the source
to reach the bank goal
Table 4.2
Deposits20102011
Fixed deposit60%59%
Saving a/c37%36%
Current a/c03%08%
Graph 4.2
INTERPRETATION:- This table shows that collection of finance
from different sources to reach the bank goal. Collection of
finance is changing from year to year, in the year 2009 fixed
deposit 60%, saving a/c 37% and current a/c is 03%, but in the year
of 2010 fixed deposit 59%, saving a/c 36% and current a/c 08%.
3. How many types of deposits in rdcc bank ? Deposited collected
from the customers is the source to reach the bank goals
Table 4.3Deposits20102011
Fixed deposit60%59%
Saving a/c37%36%
Current a/c03%08%
Graph 4.3
INTERPRETATION:- This table shows that collection of finance
from different sources to reach the bank goal. Collection of
finance is changing from year to year, in the year 2009 fixed
deposit 60%, saving a/c 37% and current a/c is 03%, but in the year
of 2010 fixed deposit 59%, saving a/c 36% and current a/c 08%.
4. Explain the sources of medium term. Medium term deposit for
public and higher agencies in firm of borrowings
Table 4.4
Sources20102011
Public deposit29%28%
Higher agencies52%52%
borrowings09%10%
Graph-4.4
INTERPRETATION:- This table shows that sources of medium term
financial sources in bank. In the year of 2010 public deposit 29%,
higher agencies 52% and borrowings 09%, in the year of 2011public
deposit 28%, higher agencies 52% and borrowings 10%.
5. What are the short term financial sources? Short term
financial sources are short term agriculture and non-agriculture
loan, jewel loans and cash credit loan.
Table 4.5
Sources20102011
St agri & non-agri loan12%95%
Jewel loan02%
Cash credit loan90%05%
Graph 4.5
INTERPRETATION:- This table shows that short term financial
sources in bank. Short term financial sources are changing from
year to year , in the year of 2010s t agri & non-agri loan 12%,
jewel loan is nil, and cash credit loan is 90%, in the year of 2011
s t agri &
6. What are the long term financial sources? Long term land
development, rural godown are the long term financial sources in
our bank.
Table no: 4.6
Sources20102011
Long term loan development68%56%
Rural goon34%46%
Graph-4.6
INTERPRETATION:- This table shows that long term financial
sources in the bank. This long term financial sources are changing
the position from year to year, in the year of 2010 long term loan
development 68% and rural godown 34%, in the year of 2011 long term
loan development 56% and rural godown is 46%.
CHAPTER-V
Findings and suggestions:1. The financial source is very
essential in every company to run the institution.2. Here I find
that RDCC bank has given the most preference to agricultural
sector.3. Here I find that how to divide the financial sources in
bank.4. Here I find that long term financial sources are very
essential in bank.5. Here I find that how much interest will charge
by proving loan to customers.6. Here I find that to reach the bank
goal deposits from customers is useful to bank.7. Here I find that
what are the short term, medium term, and long term financial
source in bank.8. Here I find that criteria aspects for selecting
the best among the long term sources of finance.9. Here I find that
bank main aim is develop the common people life in economically.10.
Co-ordination among employees is very good
Suggestions1. They are not utilizing much financial sources in
bank so they need to utilize all financial sources in bank.2. The
bank is giving more importance to the agricultural sector, in the
same way they have to give importance to small scale industries.3.
Bank should try to innovate new financial sources in bank.4. They
have to concentrate on other loans, like home loan, vehicle loan
etc.
Conclusion Financial sources are very essential in every
organization to accept the deposits and lending the money to
customers. Without financial sources banks are cannot run their
financial activities in bank. By accepting the finance from
financial sources bank financial position will increase, when it is
increase they should try to develop their customers life in
economically by providing loans in less interest. Sindhanur branch
will give most preference to agricultural sector, because this area
peoples depends on agriculture, and bank should charge some percent
interest on that loan by accepting that interest they can improve
their financial position. Finally financial sources are very needed
in every institution and person to do any activities in
society.
Bibliography Materials Financial statement of past two years.
RDCC bank booklets.
Text bookFinancial managementAuthor: - M.Y.KHAN I.M.PANDAY
ANNEXURE1) Which financial sources used to the RDCC bank?A)
Public deposit. B) Customer advances.C) Loans from financial
institution D) issue of shares
2.) For which sources bank will give the most preference?A)
Short term financial sources. B) Long term financial sources.
3) How bank will improve bank financial position? A) By issuing
shares B) call for public to deposit in bank. C) By issuing
debenture. D) Approved to commercial banks.
4) From which source bank will get more finance? A) By providing
cash credit to customer B) By providing overdraft to customers C)
By providing bill discount D)
5) Private money lenders are charged more interest compare to
other sources A) Yes B) No 6) To run the RDCC bank use more than
one financial sources A) Yes B) No 7) According to RDCC bank which
source charges less interest? A) Public deposit B) Installment
credit C) Issue of shares D) Loans from financial institution
8) According to RDCC bank in which source bank was used
effectively in bank? A) Government deposit B) Public deposit 9)
RDCC bank have any idea to innovate new sources in bank? A) Yes B)
No 10) By using the financial sources, RDCC bank follows the rules
and regulation of RBI? A) Yes B) No
Page 57Department of commerce p. g centre Raichur