Project report on DCC Bank, APMC Yard, Shimoga Chapter-1 1.1 Introduction: Co-Operative banks in India are more than 100 years old. these banks came into existence with the enactment of the agricultural credit co-operative societies act in 1904. co-operative banks from an integral part of the banking system in India. These bank operate mainly for the benefit of rural areas, particularly the agricultural sector. They are the main source of institutional credit to the formers. Co-operative banks are chiefly responsible for banking the monopoly of moneylenders in providing credit to the agriculturist. They have also been an important instrument for various development schemes. Particularly subsidy based programmes for poor. Co- operative banks operate for non-agricultural sector also but, their role is small. Co-operative banks in India are registered under co-operative societies Act. The co-operative bank is also regulated by the RBI. They are governed by the banking Institute of Management Studies and research, Shankaraghatta, Shimoga. Page 1
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Project report on DCC Bank, APMC Yard, Shimoga
Chapter-1
1.1 Introduction:
Co-Operative banks in India are more than 100 years old. these banks came into
existence with the enactment of the agricultural credit co-operative societies act in 1904. co-
operative banks from an integral part of the banking system in India. These bank operate
mainly for the benefit of rural areas, particularly the agricultural sector. They are the main
source of institutional credit to the formers. Co-operative banks are chiefly responsible for
banking the monopoly of moneylenders in providing credit to the agriculturist. They have
also been an important instrument for various development schemes. Particularly subsidy
based programmes for poor. Co-operative banks operate for non-agricultural sector also but,
their role is small.
Co-operative banks in India are registered under co-operative societies Act. The co-
operative bank is also regulated by the RBI. They are governed by the banking regulation
Act 1949 and banking laws (co-operative societies) Act, 1965.
Though the co operative movement originated in the West, the importance such banks
have assumed in India is really parallel anywhere else in the world. The co-operative banks in
India play an vital role even today in rural financing. The business of co-operative bank in the
urban areas also has increased phenomenally in recent years due to the sharp increase in the
number of primary co-operative banks.
These banks operate mainly for the benefit of rural areas, particularly the agricultural sector
they mobilize deposits and purvey agricultural and rural credit with a wider outreach. They
are main source of institutional credit to the farmers.
Institute of Management Studies and research, Shankaraghatta, Shimoga. Page 1
Project report on DCC Bank, APMC Yard, Shimoga
Though much smaller as compared to scheduled commercial banks, co-operative
banks constitute an important segment of the Indian banking system. They have an extensive
branch network and reach out to people in remote areas. They have traditionally played an
important role in creating banking habits among the lower and middle-income groups and in
strengthening rural credit delivery system.
The cooperative movement in India owes its origin to agriculture and allied sectors.
Towards the end of the 19th century, the problems of rural indebtedness and the consequent
conditions of farmers created an environment for the chit funds and cooperative societies.
The farmers generally found the cooperative movement an attractive mechanism for pooling
their meager resources for solving common problems relating to credit, supplies of inputs
and marketing of agricultural produce. The experience gained in the working of cooperatives
led to the enactment of cooperative credit Societies Act, 1904. Subsequently, a more
comprehensive legislation called the Cooperative Societies Act was enacted. This Act, inter
alia, provided for the creation of the post of registrar of cooperative societies and registration
of cooperative societies for various purposes and audit. Under the Montague-Chelmsford
Reforms of 1919, cooperation became a provincial subject and provinces were authorized to
make their own cooperative laws. Under the Government of India Act 1935, cooperatives
were treated as a provincial subject. The item “Cooperative Societies “is a State Subject
under entry No 32 of the State List of Constitution of India.
1.2 Statement of Problem:
The present study is directed towards understanding performance of Shimoga district
co-operative central Bank.
The DCCBs form an integral part of the rural banking system in performing their
activities on co-operative principles. These banks function as the central agency between
SCBs and PACS in the district. The effective credit delivery requires equally efficient and
Institute of Management Studies and research, Shankaraghatta, Shimoga. Page 2
Project report on DCC Bank, APMC Yard, Shimoga
effective mobilization of resources. Therefore, the analysis and appraisal of efficiency of the
vital functions of the DCCBs i.e., mobilization of resources and deployment of credit receives
more attention of all especially in the context of management planning and decision-making.
And there by helps in enhancing the public faith, confidence assurance and guarantee on the
worked flow of bank while performing the banking activities.
1.3 Need for the study:
The DCCBs play a decisive role in the development of both agriculture sector of the
economy. With the passage of time, DCCBs developed in their growth, nature of the their
operation and scope of their activities. In the process of expansion certain problems and
difficulties cropped up in the various areas of their operation. In such a situation,
management of finances is one of the activities, where DCCBs have to perform more
efficiently. In this connection, DCCBs have to perform more efficiently and have to mobilize
recourses. So, as to enhance their confidence and faith in the public. Therefore, DCCBs
expect to widen their lending base more effectively in order to survive in the changed
liberalized era. Hence, an evaluation of the performance of SDCCB is examined under the
ambit of changed economic scenario.
1.4 Objective of the study:
1. The study the performance of district co-operative central banking activities.
2. To analyze the extent of recovery and over dues of Shimoga district co-operative
central bank, APMC branch.
3. To examine the performance of Shimoga district co-operative central bank in the light
of pre and post economic reforms.
4. To offer suggestions for improving the performance of Shimoga district co-operative
central bank.
5. To study about loans and advances provide by the bank.
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Project report on DCC Bank, APMC Yard, Shimoga
1.5 FUNCTION:
1. As per the policy of the RBI, the establishment of cooperative banks in the
district is mainly to fulfill the needs of the farms though PACS.
2. The Shimoga DCC bank accepting deposits from the public’s in the form of
savings bank account, fixed deposit account, and other types of deposits to raise
the resources. The bank is refinanced from Apex Bank, NABARD, Government
and other financial agencies.
1.6 Scope of the study:
The present study made an attempt to study the performance and problems of
SDCCB. The study covered the origin of co-operative movement, growth of credit structure,
place and status of DCCBs. In resource mobilization, loans recovery and overdue of the
banks.
1.7 Sources of data:
The data is collected from primary as well as secondary source.
Primary Data
Primary data gathered through interactions and discussions with the Manager and staff
members of the bank.
Secondary Data
The secondary data extracted from bank’s annual reports, and gathered from the
published sources in the academic libraries and the study also had planned to use different
source through internet.
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Project report on DCC Bank, APMC Yard, Shimoga
1.8 Limitation of the study:
The present study is being conducted from the performance of co-operative central
bank. it is not free from limitation.
1. The study is restricted only to the limits of APMC branch Shimoga district.
2. Time limit is also one limitation of the study.
3. The most agriculturists are illiterate and they don’t have any idea about the
study.
4. The bank doesn’t have much online transaction and information.
5. The bank doesn’t have ATM facility.
1.9 Chapter Schemes:
The present study is divided in to following chapter.
1st chapter:
This chapter is an introductory chapter of the study it covers introduction, statement
of problem, objective of the study, need for the study , scope and limitation of the study and
chapterization.
2nd chapter:
Profile of the Bank. It cover brief profile of the district bank, Membership of SDCC
Bank, branch profile and Organizational Structure.
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Project report on DCC Bank, APMC Yard, Shimoga
3rd chapter:
Profile of the schemes, deposit schemes, loan schemes, agricultural other service of
SDCC Bank, funds of district co-operative bank, Management of district Co-Operative
Banks, functions of D.C.B, CRR, SRR
4th chapter:
This chapter is including Financing Strategy, Human Resource Management strategy,
Recruitment Policy and Marketing Strategy
5th chapter:
Findings, Suggestions, and Conclusion.
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Chapter-2
2.1Profile of the Bank:
The co-operative movement was started in India in 1904 with objective of providing
finance to agriculturists for productive purposes at lower rate of interest and there by a large
number of agricultural credits societies was setup in village under the co-operative societies
act of 1912. This act contributed to the establishment of central co-operative bank and state
co-operative bank to provide are finance to primary agriculture credit societies.
Up to 1949 co-operative banks were not came under Banking Regulation Act. The
government of India made banking regulation act applicable to co-operative societies in 1949
by enacting banking regulation act 1949.
The Shimoga District Co-operative Central Bank Ltd. Shimoga came into existence as
“Central Financing Agency” of Co-operative Societies in the District in 1953 with its Head
Office at Shimoga vide, Register No: ARS/1041/18-10-1953 under all India Co-operative
Societies Act 1912 to cater to the needs of the co-operative institutions and render valuable
services to the general public in the banking field.
Initially it was started with Rs.30,000 as a share capital having single branch, at
present this bank is operating with a own capital of Rs.3711.83 lakh and is having 21
branches across the district.
The District Central Co-operative Bank are the federations of Primary Agricultural
Credit Societies operating in specified area, normally extending to a district. The Head
Offices are established at district headquarters.
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Project report on DCC Bank, APMC Yard, Shimoga
Membership of SDCC Bank:
The membership of the bank is restricted to co-operative societies. Which have
registered with in the area of operation referred in law 1(IV) the state government is eligible
for admission. Any individual residing in the year of operation of the bank over 18 years of
age and of sound mind shall be eligible for admission as a nominal member. When applying
for admission, a societies shall submit along with its application a resolution of the board,
may from time to time prescribe both a form and amount for the purpose of becoming
member and may sanction or refuse the application at its discretion. Every member shall hold
more share than the number of shares. Which shell be represent one fifth of the paid-up share
capital of the bank.
The total member of the bank stood at 613 of which 160 are PACS, 22 marketing and
processing societies, 86 urban banks and urban societies and 345 are other types of societies
Branch Profile:
DCC bank APMC yard branch shimoga was established in the year 2001. It is the sub
branch of shimoga city. It is located in APMC yard sagar road, in this place many small scale
firms, arecanut market and gowdens.
As the bank it is helpful for the business persons, agriculture people and for a common man
with limited by this bank.
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Project report on DCC Bank, APMC Yard, Shimoga
Bank Name: DCC Bank.
Branch Name: APMC yard.
Director: Dr. R.M. Manjunath.
Assistant director: Vijaidev
Branch Manager: Mr.Umesh
No.Of employees: 7
Deposit Account holders: 5,000
Loan account holders: 701
Under S.H.Groups: 28
Total loan lending Amount: 13, 62, 68, 000
Address: DCC bank APMC Branch
1st Flore RMC building.
Near RMC police station
APMC yard Shimoga: 577 201
City: Shimoga.
State: Karnataka.
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Project report on DCC Bank, APMC Yard, Shimoga
Organizational Structure:
President (director)
Managing director
Assistant director
General Manager
Manager
Cashier
Clerk Clerk Clerk
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Project report on DCC Bank, APMC Yard, Shimoga
Chapter 3
Profile of the scheme
In DCC bank there are different types of deposit schemes, loan scheme and other schemes,
they are:-
Deposit schemes:
Account types No. of accounts
Saving account 2500
Current account 50
Fixed deposit 200
Recurring deposit 50
S.C deposit 2200
Loan schemes:
Security for Loan
For crop loan following securities are accepted Land Crop 1 or 2 sureties
For Medium Term Loan: Normally level is accepted as security from concerned member of PACS. In case of default agriculture income and land are attached till the amount is recovered.
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Project report on DCC Bank, APMC Yard, Shimoga
Maximum Limit for Crop Loan: Maximum amount of loan granted to the members. Following is the details of loan that can be sanctioned for different crops under kiss and credit loan for 1 care of land
Agricultural Schemes and Other Services of SDDC bank:
Self Help Group.
Kisan Credit Card Scheme .
Gramin Bhandaran Yojana(GBY) .
Scheme for cattle farming and dairy farming.
Kisan Chakra Scheme .
Establishment of Bio-Fertilizer Units.
Produce Marketing Loan (PML) .
Self Help Group:
Institute of Management Studies and research, Shankaraghatta, Shimoga. Page 12
Types of loan No.of beneficiar Total loan amount Rate of interest
Self-help Group has been promoted to reach the un-reached rural poor. The bank had
taken several steps to promote and to credit link the Shimoga. In the year 1999 bank has
started promoting Shimoga in the district. To promote the SHGS, bank has taken assistance
from NGOS, government department, PACS along with the bank staff. At present bank has
promoted 4819 SHGS in the district, distributed the savings and linkage with bank and
PACS.
The APMC branch also providing loan for Self-help group in the last year the bank
was distribute the loan for Rs 2,50,000 @12% interest for 28 Self-help groups. The state
government give the 8% subsidy SHG.
Kisan credit card:
The government of India has directed the commercial/co-operative/RRBS to
introduce kisan credit card scheme for enabling formers to meet their production credit
requirement in a cost effective and flexible manner. our bank caters to the credit requirement
of about 71,300 former. At present bank has issued 64865 kisan credit card and 63583
member are covered under PAIS. So for, 71 formers are benefited under the scheme to the
tune of Rs 31.50lakhs. out of the beneficiaries 56 formers are disabled.
This bank has to provide 7,18,000 kisan credit card loan for the former.
Which formers are taking a kisan credit card loan up to 1 lakh there is no interest, 1
lakh to 3 lakh 1% interest and 3lakh and above 12% interest.
Medium Term Schematic:
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Project report on DCC Bank, APMC Yard, Shimoga
Bank had disbursed medium term schematic loans to the formers during the year
2011-12 to the tune of Rs 64.96 lakhs for 43 members. The major finance is involved in
pump sets, drip irrigation, pipelines and areca dryers.
Funds of district Co-operative Banks:
The funds of district co-operative banks consists of share capital reserve fund.
Deposits from members and the general public and loans from the reserve banks of India, the
state Govt. and commercial Banks, however, loans and advances from the reserve Banks
constitute the major part of their funds.
Management of district Co-Operative Banks:
The district co-operative Banks are managed by board of management constituted by
the representative of district co-operative banks and the individual shareholders, however,
district co-operative banks have majority representation in the board of management.
Functions of district co-Operative Bank:
The functions of district co-operative banks are as follows.
1. The main function of district co-operative bank is to lend fund to the central co-
operative banks, which in term advance loan the primary credit societies.
2. They serve as the balancing centers between district central co-operative banks they
attract the surplus funds of some district central co-operative banks and make them
available to the needs central co-operative banks.
3. They borrow funds from the RBI and lend the same to the central co-operative banks
to be used for financing the primary credit societies. So, they act as a link between the
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Project report on DCC Bank, APMC Yard, Shimoga
RBI on the one hand. And the central co-operative banks and the primary. credit
societies on the other hand.
4. They accept deposits from the general public in eh urban areas and make them
available for rural credit. Thus, they help the transfer of funds from urban areas to the
rural areas.
5. They exercise general supervision and central over the activities of he central co-
operative banks.
6. They help not only co-operative credit institution but also promote other co-operative
societies.
Cash Reserve Ratio:
CRR is the percentage bank reserve to deposits and notes. The cash reserve ratio also
known as the cash asset ratio. Central bank ordered commercial banks to hold a larger
share of deposits in cash, and raised a key short term lending rate in a bid to high inflation
that has stoked fears of overheating.
Calculation of CRR formula:
Actually maintained-Required to be maintained= surplus/deficit
124043 - 124043 = 36254
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Project report on DCC Bank, APMC Yard, Shimoga
Statutory Liquid Ratio:
This is infact to protect us, RBI demands that there should be certain amount that bank
needs to keep in the form of cash, gold or government approved securities and the
remaining is only they have to give it customers either as credit in any form, as loan,
mortgage or something.
This will really help to RBI to control the expansion of bank credits.
Reserve Ratio Of SDCC Bank, Cash Reserve Ratio is 9% and statutory liquid Ratio is
25%.
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Project report on DCC Bank, APMC Yard, Shimoga
THE SHIMOGA DISTRICT COOPERATIVE CENTRAL BANK LTD, SHIMOGA
APPENDIX - I
Name of the Bank: The Shimoga District Co-op. Central Bank Ltd., Shimoga
Monthly Statement showing the daily position of maintenance of Cash Reserveunder Section 18 of the Banking Regulation Act 1949 (as Applicable to Co-op.Societies ) during the month of February - 2012
(Rs rounded off to the nearest thousand)Date Amount of Cash Reserve
Required to be Actually Deficit Surplus Remarksmaintained maintained
01-02-2012 87789 124043 -- 36254 --
02-02-2012 87789 111125 -- 23336 --
03-02-2012 87789 136654 -- 48865 --
04-02-2012 87789 107562 -- 19773 --
05-02-2012 87789 99640 -- 11851 --
06-02-2012 87789 99640 -- 11851 --
07-02-2012 87789 117529 -- 29740 --
08-02-2012 87789 128390 -- 40601 --
09-02-2012 87789 122848 -- 35059 --
10-02-2012 87789 126855 -- 39066 --
11-02-2012 87789 125215 -- 37426 --
12-02-2012 87756 126711 -- 38955 --
13-02-2012 87756 126711 -- 38955 --
14-02-2012 87756 126053 -- 38297 --
15-02-2012 87756 126436 -- 38680 --
16-02-2012 87756 126436 -- 38680 --
17-02-2012 87756 130870 -- 43114 --
18-02-2012 87756 133525 -- 45769 --
19-02-2012 87756 151296 -- 63540 --
20-02-2012 87756 151296 -- 63540 --
21-02-2012 87756 126651 -- 38895 --
22-02-2012 87756 139257 -- 51501 --
23-02-2012 87756 153330 -- 65574 --
24-02-2012 87756 148075 -- 60319 --
25-02-2012 87756 130734 -- 42978 --
26-02-2012 88158 114956 -- 26798 --
27-02-2012 88158 114956 -- 26798 --
28-02-2012 88158 125897 -- 37739 --
-- 0 --
-- 0 ---- 0 --
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Project report on DCC Bank, APMC Yard, Shimoga
THE SHIMOGA DISTRICT COOPERATIVE CENTRAL BANK LTD, SHIMOGA
APPENDIX - II
Name of the Bank: The Shimoga District Co-op. Central Bank Ltd., Shimoga
Monthly Statement showing the daily position of maintenance of Liquid Assetsunder Section 24 of the Banking Regulation Act 1949 (as Applicable to Co-op.Societies ) during the month of February - 2012
(Rs rounded off to the nearest thousand)Date Amount of Liquid Assets
Required to be Actually Deficit Surplus Remarksmaintained maintained
01-02-2012 731574 787254 -- 55680 --
02-02-2012 731574 774336 -- 42762 --
03-02-2012 731574 799865 -- 68291 --
04-02-2012 731574 770773 -- 39199 --
05-02-2012 731574 762851 -- 31277 --
06-02-2012 731574 762851 -- 31277 --
07-02-2012 731574 780740 -- 49166 --
08-02-2012 731574 791601 -- 60027 --
09-02-2012 731574 786059 -- 54485 --
10-02-2012 731574 790066 -- 58492 --
11-02-2012 731574 788426 -- 56852 --
12-02-2012 731303 789955 -- 58652 --
13-02-2012 731303 789955 -- 58652 --
14-02-2012 731303 789297 -- 57994 --
15-02-2012 731303 789680 -- 58377 --
16-02-2012 731303 789680 -- 58377 --
17-02-2012 731303 794114 -- 62811 --
18-02-2012 731303 796769 -- 65466 --
19-02-2012 731303 814540 -- 83237 --
20-02-2012 731303 814540 -- 83237 --
21-02-2012 731303 789895 -- 58592 --
22-02-2012 731303 802501 -- 71198 --
23-02-2012 731303 816574 -- 85271 --
24-02-2012 731303 811319 -- 80016 --
25-02-2012 731303 803978 -- 72675 --
26-02-2012 734652 787798 -- 53146 --
27-02-2012 734652 787798 -- 53146 --
28-02-2012 734652 798739 -- 64087 --
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Project report on DCC Bank, APMC Yard, Shimoga
Chapter 4
Financing Strategy:
Providing kisan credit card facility.
Providing loan facility to farmers and commercial business.
Lending loan to purchasing agriculture machines and tools to eligible
account holders.
Providing loan to farmers up to 1lakh there is interest for craft loan .
Human Resource Management strategy:
The DCC bank APMC yard branch in Shimoga district. The working staffs of this bank are
very effective because human resource strategy.
In this branch 7 human resource members working in place, one manager, one cashier,3
clerks are there.
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Project report on DCC Bank, APMC Yard, Shimoga
Recruitment Policy:
They have recruiting the required staff through conducting written test and oral test through
the issued by the government and they have some recruitment prociger.
Any candidate can applied the application for job.
Eligible candidate are the selected the job.
Transfer will be made with in the district not other district banks.
Employees are get the equal rights.
Employees get the promotion after 5 year’s experience.
Increment also considering based on experiance.
Marketing Strategy of APMC Branch Bank:
Advertising through newspaper.
Three field officers in DCC bank.
DCC bank has own website and doing promotional activities
through the website.
Arranging press conference for special issue.
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Project report on DCC Bank, APMC Yard, Shimoga
Chapter – 5
Findings:
The administration of the head office is very systematic
ATM Center facility is not there in DCC Bank.
The DCC Bank is a focusing on full utilization of the available source of without
keeping any assets idle. The deposits of the bank are raised over the year and the
advance also moving upward
DCC Bank has good HR strategies to develop the Human resources.
Maximum customers have a savings bank account in the bank.
Suggestion:
a) The resources of the co-operative banks should be improved. Their dependence on
outside resources mush be reduced considerably.
b) The liability of the members of the primary co-operatives should be make limited.
c) Loans should be given not on the basis of the assets of the member but on the basis of
estimated values of production.
d) There is a need of ATM centers.
e) Insurance facilities should be extended for all crop.
f) More employment opportunity provided by the bank to meet the excess work load.
g) The bank has to adopt E-banking system. It reduces the time as well as quick service
to the customer.
h) reduces the time as well as quick service to the customer.
i) The APMC branch is need for good building and internal structure.
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Conclusion:
Courtesy of the employee is found excellent which reveals the fact that bank has made a
unique place for itself in the mind of customers. Staff members will interact immediately when
customers approach them, as the result a good customer relationship is built. And also Co-operative
societies suffer from various weaknesses and their performance has been far from
satisfactorily in certain respects. The heavy over dues of co-operative societies are a cause
for concern. The bank should increase the loan facility to the former at reasonable or lower interest
rate. The bank should provide E- Banking facility and ATM facility for the customer.
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Bibliography
Bank:
DCC Bank main branch Shimoga.
DCC Bank, APMC yard branch Shimoga.
Website:
www.karnatakaapex.com
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