Co Operative Bank3

8/3/2019 Co Operative Bank3

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A REPORT ON

VERAVAL MERCATILE

CO OPERATIVE

BANK

PREPARED BY :- PRANAV R CHAUHAN

COLLEGE :- T.N.RAO COLLEGE OF MANAGEMENT

ACADEMIC YEAR :- 2008-2009

CLASS :- S.Y.B.B.A

ROLL NO :- 14 SEAT NO :-

SUBMITTED TO :- SAURASTRA UNIVERSITY

GUIDED BY :- MS. ANVI KAKKAD


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G E N E R A LI N F O R M A T I O N

INTRODUCTION


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It may be said that banking in its most simple form, is an old as

authentic history as early as 2000 B.C.BADY LONIANS were the people todevelop system of bank. In ancient GREECE and ROME we practice of granting

credit was widely prevalent.

The word bank was originated from the BANCO or BANQUE.

Both the words are of Italian language. During the early periods although the

banking business was mostly done by private individuals, many countries

established public bank either for the purpose of facilities.

Bank is institution that deals in money and also deals in those matters

which are related to money. Just as a shopkeeper buy and sales money. Bank

buys savings from the people. It accept or in other word creates money by accept

the deposits. In this same way, it lands money to those who need it. When bank

accept money, the bank pays interest and when it lands money it charger higher

interest and there by bank creates its income. Therefore, workings of bank like, a

shop in that it accepts money with interest and gives there money at higher rate

of interest.

TYPE OF BANKING

The following is a type of banking

COMMERCIAL BANK

INDUSTRIAL BANK

EXCHANGE BANK

AGRICULTURAL BANK

CO-OPERATIVE BANK

THE CENTAL BANK

FUNCTION OF MORDAN CO-OP. BANK

According to section 6th business may be under taken by a bank.


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1. The borrowing, raising or taking of money.

2. The lending or advancing of money either against security or without

security.

3. The drawing, making, accepting, discounting, buying, selling, collecting &

dealing in bills of exchange, handles promissory notes, coupons, drafts, bills of

lending, railways receipts, warrants, debentures, certificates scripts & other

instruments and securities whether transferable or not.

4. The granting and issuing the letter of credit, travelers cheques and circular

notes.

5. The acquiring, holding on commission under writing and clearing in stock,

funds, shares, debentures, bounds, obligation securities and investments of allkinds.

6. The purchasing and selling of bounds, scripts and other forms of securities on

behalf of contribution or others.

7. The negotiation of loans and advances.

8. The collecting and transmitting of money and securities.

9. It may act as on agent of the government, local authority or person and can

curry on agency business but cannot act as security treasurer of a company.

10. It may curry on and transact every kind of guarantee and indemnity business.

11. It may manager, sell and realize any property which may come into its

possession.

12. It may undertake and execute trusts.

13. It may acquire, construct and maintain any building for its own.

14. It may do all such things are incidental or conductive to the promotion of

advancement of the business of the company

HISTORY


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The VERAVAL MERCANTILE CO-OP. BANK LTD.In India started functioning almost 35years ago. The VERAVAL

MERCANTILE CO-OP. BANK is an important constituent of the Indian

financial system, judging by the role assigned to VERAVAL MERCANTILECO-OP.BANK operates. Though the co-op. originated in the west, but the

importance of such banks have assumed in India is rarely paralleled any where

else in the world. The VERAVAL MERCANTILE CO-OP. BANK in India

plays an important role even to day in rural financing. The businesses of

VERAVAL MERCANTILE CO-OP. BANK urban areas also have increased

phenomenally in the number of primary VERAVAL MERCANTILE CO-OP.

BANK LTD.

VERAVAL MERCANTILE CO-OP. BANK LTD in

India is registered under the bank act. The V.M.C. BANK also regulated by the

RBI. These are governed by the banking regulated act 1949 and banking laws.

MISSION ;-


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Survive to the common man.

Enhance the value of share holders.

Emerge as a symbol of public trust & confidence by creating a

positive image.

Maintain excellence in operation & management by bringing in

transparency & integrity.

Develop & motivate human resource there by cultivating

professional culture in the banking operation.

Ensure speedy & satisfactory customer services through

continuous product innovation & aggressive marketing strategies.

And the last but not least that is

.

To assist the weaker section of the society Is the primary motto

of the Raj Bank.

THE EXECUTIVE COMMITTEE


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1. DR.KUMUDCHANDRA PHICHADIYA CHAIR MAN

2. MUKESHKUMAR SHAH MANAGING DIRECTOR

3. NAVINBHAI SHAH JOINT MANAGING DIRECTOR

4. PRACIPBHAI SHAH DIRECTOR

5. JITENDRAKUMAR HEMANI DIRECTOR

6. ASHOKKUMAR MATHIYA DIRECTOR

7. PRAKASHCHNDRA PAREKH DIRECTOR

8. MANISHBHAI SHAH DIRECTOR

9. KARSHANBHAI SOLANKI DIRECTOR

10. KETANBHAI CHANDRANI DIRECTOR

11. MAHENDRABHAI DOSHI DIRECTOR

12. JITENDRAKUMAR PAREKH DIRECTOR

13. JESHINGBHAI BARAD DIRECTOR

14. NRENDRAKUMAR SAVSANI DIRECTOR

15. VIRENBHAI KOTHARI PROFESSIONAL DIRECTOR

16. MAHENDRABHAI SHAH PROFESSIONAL DIRECTOR

BRANCH NETWORK


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1. MAIN BRANCH

SUVIDHA, SUBHAS ROADVERAVAL -362 265PHONE;- (02876) 243388

2. REYON BRANCHSUVAS, JUNAGADH ROAD

VERAVAL

PHONE ;- (02876) 220229

3. ADMINISTRATIVE OFFICESUVIDHA, SECOND FLOOR,

SUBHASH ROAD

VERAVAL-362 265

PHONE ;- (02876) 223427

FAX :- 243429

4. UNA BRANCH RIDHI SIDHI COMPLEX, FIRST FLOOR

OPPOSITE VEGETABLE MARKET

UNA 362 960

PHONE :- (02875) 221725

FAX :- 221725

5. SUTRAPADA BRANCHSUVAS, NEAR BUS STAND

SUTRAPADA 362 275

PHONE :- (02876) 263354

6. JUNAGADH BRANCHSUVIDHA, MAHERSHI ARVIND ROAD

NEAR TALAV GATE

JUNAGADH 362 001

PHONE :- (0285) 26522392


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7. RAJKOT BRANCHKALAKRUTI, COMPLEX

SAURASHTRA UNIVERSITY ROAD,

RAJKOT -360 005

PHONE :- (0281) 2589235

FAX :- 2573067

8. KESHOD BRANCHCHANDRA NIVAS,

JALARAM TEMPLE ROAD AMBAVADI

KESHOD 362 220

PHONE :- (02871) 234357

9. MANAVDAR BRANCH SUVIDHA, FIRST FLOOR

NEAR GIRL SCHOOL

MANAVDAR 362 360

PHONE :- (02874) 222003

FAX :- 222003


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S E R V I C ED E P A R T M E N T


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SAVINGS ACCOUNT

MEANING:-


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As we know that saving means to save something same way word

saving regarding bank means to sane money. In all bank the departmental is

therefore providing this services of saving to our society, Saving deposit account

is meant for the people of lower & middle class people who wish to save a par of

their current incomes to meet their future needs and also intend to earn income

from their savings. The banks therefore impose certain restrictions on their savinga\c and also offer reasonable rate of interest. The need of keeping cash reserves

against such deposit is comparatively larger than fixed deposits but smaller as

against the deposit, because of the restrictions on the number of with drawers.

PROSEDURE FOR OPENING OF AN ACCOUNT:-

The following items are required for opening of an a\c.

1. Two photographs.

2. Residential proof :-

a Reshan card

b Electricity bills

c Driving License

d Issue any identity with any institution

3. Pan card

4. Identification of any person who open an a\c in bank.

5. youre a\c will be open with 500 rs. For simple and 1000rs with

Cheques facility

DEPOSITING METHOD:-In saving a\c only one method are used. This method is

very simple. In this method you are fill up red color slip for deposited rupees in

a\c. Then you give the slip to clerk for making scroll. Then you go to cash

window and give the slip to cashier then give rupees. Then cashier accepting

rupees and give to counter.

WITHDRAWAL METHOD:-

They are two method of withdrawal of cash.


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(1) Withdrawal forms:-

This is a first method of withdrawal of cash in our a\c.

In this method you taking a withdrawal form and fill up this form and this form

gives to clerk for the scrolling then you give this form to cashier for withdrawthe cash then cashier accept this form and give cash what ever you written in

withdrawal form.

(2) CHEQUES:-

This is second method of withdrawal of cash in our a\c. In this

method you issue a cheque book and written this cheque and give to clerk for

making necessary entries and making a scroll .Then receive a token then receive

cheque and go to cash counter and give both are give to cashier then cashier

accept this both instrument and give the rupees to you .

PAYMENT OF INTEREST:-

In saving account the interest paid for six month on your account

closing balance. In this account the interest rate is 3.5% on your account closing

balance.

RESTRICTION ON WITHDRAWALS:-

They are two methods for restriction of withdrawals of cash.

(1) Minimum balance:-

In this a\c the minimum balance maintain are require. The limit of

this a\c is 500rs. and you issue the cheque book then the limit is 1000rs. you

across this limit then the officer restricted for withdrawal of cash.

(2) Withdrawal without cheque:-

In this case you issue a cheque book then you are not

withdrawal cash with withdrawal forms. You withdraw cash with withdrawal

form then the office are restricted for withdrawal of cash.


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CLOSING OF ACCOUNT:-

You want to closing of an account then you collect the

account closing forms and fill up this forms then this form give to officers thenthe officer making necessary procedure and you collect your rupees and your

account will be closed.


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CURRENT

ACCOUNT

MEANING:-


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A current deposit account and which may be operated upon any

number of times during a working day. As the banker is in the obligation to

repay this deposit on demand they are called demand liability of the banker. To

meet such liability the banker keeps sufficient cash reserves against suchdeposits. Current account suit the requirements if big businessman joint stock

companies , institutions , public authorities and public corporation etc, whose

banking transactions, happen to be numerous or on every working.

PROCEDURE OF OPENING OF AN ACCOUNT:-

EILIGIBILITY:-

A person who wants to open an account must be able for this.

(1) Major can open the account.

(2) Minors, insolvent i.e. incompetent persons are not allowed.

(3) Company, partnership firm, body of government, corporations, trusts, clubs

etc. can open the current bank account.

OPENING OF AN ACCOUNT:-

Any person may apply for opening of a current account in his

name but the banker reserves the right to do on being satisfied about the identity

of the customer. Any one who wants to open an account furnish.

1. Passport sized photo

2. Copy of the identifications of resident i.e. driving license

3. Pan card

APPLICATION FORM:-

Bank provides separate application form for opening this account

for individual and companies. The application form contains name of applicant.

(1)Full address of the applicant

(2)Operational instructions.

(3)Name & specimen signature of applicant.

(4)Introducers details.

(5)Particulars regarding first issue cheque book.

(6)Initials of bank officials.(7) The limited companies are liable to fill up the back side of the form.


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SPECIMAN SIGNATURE CARD:-

It contains following.(1) Name of applicant.

(2) Account number.

(3) Address & phone number.

(4) Specimen signature of application/s

(5) Operational instructions.

(6) Name of introduce.

(7) Number of account & type of account of introducer

(8) Date & place

(9) Officers signature.

The other side of the card is made for firm/partnership firm/company.

The applicant requires giving specimen signature on a prescribed form, generally

a card for the purpose of the banks record. This signature card are preserved by

the banker and the signature of the account holder on the instrument is compared

with his specimen signature.

PAPER REQUIRED:-

(1) A copy of the partnership deed(in case of partnership)

(2) Certification of incorporation, certificate of commencement of business,

necessary resolution etc. should be obtained. (in case of company)

(3) Copy of trust deed and copy of resolution (in case of corporation forms)

(4)In case of government and semi government bodies/agencies necessary

operational mandates are to be obtained.

(5)In case of limited companies either pan or proof of application of pan is to be

obtained.

OPENING OF ACCOUNT:-


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After the above formalities are over, the banker opens the

account in the name of the applicant. Generally, the minimum to be deposited is

rs.2500.the banker thereafter provides the customers with a pay in slip and a

cheque book and he is authorized to operate the account.

OPERATING OF THE ACCOUNT:

The special features of banking business are that each and

every transaction of money with customer is supported by a separated slip or

document. The customer is therefore required to make use of pay in slips and

cheques for depositing in and withdrawing money from the bank respectively

DEPOSITING METHOD:-

(1) The applicant should deposit rs.2500 minimum and the limit of minimum

balance is rs.2500.

(2) The deposited money will be credited in the depositors account.

(3) Filling paying in slip.

(4) Scrolling of the paying in slip.

(5) Paying in slip with cash.

a. The scrolled voucher should be presented with money to cashier.

b. Then cashier will verify the slip and give the necessary entry in the

computer.

c. When all is right then he will take the money.

d. After taking he will collect the token

e. When the government currency notes are taking the total shall be

checked.

f. If form correct then cashier will receive the money.

g. The counter foil shall be handed over the slip to the department to the

depositor

(6) Paying in slip with cheque.


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a.When deposited cheque is of same bank and branch then transfer

voucher to be prepared.

b. Such vouchers should be scrolled

c. Then first the debit effect is to be given.

d. And as per the credit voucher beneficiarys account is to be credited.

(7) Paying in slip with cheque of the other local bank.

At here clearing procedure is to be done.

CHEQUE BOOK:-

It contains forms of chouse which are used as instrument to withdraw moneyfrom banks. In case of these accounts a cheque book is provided to those

customers who undertake to maintain minimum balance of rs.3000 their credit.

CLOSING OF AN ACCOUNT:-

The right and obligations of a banker in regard of closing of his accounts are as

follows.

(1) If a customer directs give to the banker in writing to close his account the

banker is bound to comply with such direction.

(2) If an account remains in operated for a very long period the banker may

request the customer to withdraw the money.

(3) The banker is also competent to terminate his relationship with the customer.

If he finds that the later is no more a desirable a customer.

(4) On receipt of the notice of death of customer, the banker must stop operation

of his account.


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RECURRING

ACCOUNT


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To encourage regular saving habits in the depositing public the bankin the country provide an opportunity to them to save regularly. According to their

capacity and need and earn more than what saving deposit accounts offers to them.

The following are the main features of the recurring deposits.

The deposits are made every month of fixed amount say Rs.

5,10,15,25 and so on.

The deposit is made for fixed period say 6, 12,24,36,48,60,72,84,

months and so on.

The account can be transfer from one bank to another in the country on

request by customer.

This account can be opened by every one competent to enter in to

contract including the minor one.

A passbook is supplied to the customer and entry is made there in every

month after every deposit.

The account attract higher rate of interest.

The customer is allowed to raise loan against his recurring deposit

account to the maximum limit of 75% of the deposit he has made till the date of

raising the loan.

As far as concerned with recurring deposits at the VERAVAL MERCATILE CO-

OPERATIVE BANK, than these are the features are the provided to the recurring

deposit holders.

Easy and simple account opening procedure.

Speedy and timely services.

Account can be opened with any convenient amount,

Attractive rate or interest and special rate for senior citizenship.


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FIXED DEPOSIT


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MEANING:-

All those deposit, which are deposited with the bank for a fixedperiod specified in advance, such deposits are called Fixed deposits or Term

deposit . Foxed deposit or is repayable on the expiry of specified period,

chosen by the depositer suit his purpose and enable him to get back the money

as and when he needs it. As date of repayment of the fixed deposit is

determined in advance the banker need not keep more profitable. The banker

therefore, offers higher rates of interest on such deposit have grow in

importance and popularity in India during recent years. These deposits constitue

more than half of the total bank deposits.

OPENING OF AN ACCOUNT:-

For opening a fixed deposit account a depositer account a deposit

is require to fill in an application form. Where he may to mention the period for

which deposit to be made. He also give his specimen signature. Fixed deposit

receipt is there after issued to depositor. The account holder should provide

following to banker.

A passport sized photograph

A copy of the ration card or telephone bill or electric energy bill.

Pan card or fill up form number 60

Introduction of the present account holder or account no.

OPERATING OF AN ACCOUNT:-

Acknowledging the receipt of the sum of money specified there

in o be repaid at the expiry of the period mention there in along with interest at

the rate mentioned. The specimen of fixed deposit receipt contains then name of

depositors, period, amount, rate of interest, majority rate, amount of maturity,

etc.

APPLICATION FORM:-

It contains the following.

Names of applicant/s in full

Specimen signature

Birth dates, in case of minor

Full address of applicant

Incase of company, trust, club, or association a copy of resolution/by law

etc. Operational instructions in case of joint accounts.


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Interest to be paid monthly/quarterly/yearly/by cash/by pay order, by

crediting to saving bank account number/current number.

Particulars regarding the introducer amount of deposit, T.D.S. code

number on maturity time, sign of a clerk and office/manager.

Information about nominee information about renewals.

Space for photograph.

PROCEDURE FOR DEPOSITING:-

Paying in slip should be fill up

Scrolling of paying in slip

The minimum deposit of rs.1500 and maximum has no limit.

Tendering of cash.

Counting of cash.

Opening of account.

Preparing a fixed deposit receipt.

Issuing a fixed deposit receipt to the account operator.

PAYMENT OF INTEREST:-

Though interest is payable at the stipulated rate the

maturity of the fixed deposit receipt, banks usually pay interest quarterly or half

yearly also at the request of the depositors who is required to present the receipt

for the purpose of necessary entry regarding payment of interest on the back thereof. Withdrawal interest or the principal amount is limited up to rs.20000 in cash.

Otherwise by clearing or transfer in their account in the same bank.

RATE OF INEREST:-

1. FROM 15 DAYS TO 30 DAYS 3.00%





6. FROM 366 DAYS TO 2 YEARS 9.75%

7. 3 YEAR ABOVE TO 10 YEARS 9.50%

PAYMENT BEFORE DUE DATE:-

Bank also follows the practice of enchasing the fixed deposit

receipt even before the due date, if the depositor desired. But according to the

directive of the RBI, if any deposit is repaid before the expiry of such deposit

agreed upon at time of deposit the interest payable on such deposit shall as

follows.


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Where the deposit was made prior to 23rd July, 1974 at least 2% below the

rate applicable, and

In other cases for the entire period of deposit at least 1% less than the rate of

interest for which the deposit has remain with the bank.

LOSS OF FIXED DEPOSIT:-

Sometime the depositor report to the bank for the loss of a fixed

deposit receipt & request to issue a duplicate one. A fixed deposit receipt is not

transferable and negotiable one. Therefore, any person cannot claim for the

payment of the amount covered by the receipt. However, customers request to

banker duly discharged must be surrendered for its repayment. The banker should

take following steps in this regard.

A letter signed by the informing banker about the loss of the receipt andrequesting it to issue duplicate should be obtained.

A duly stamped letter of indemnity must be obtained from the depositors to

safe guard its own interest.

A note to this effect should be made in the fix deposit ledger for future

guidance.

PAYMENT OF F.D.R :-

o Generally the payment of an FDR is done on after the due date.

o However, on case of a request form depositors the same may from a

depositor the same may be prepaid at an applicable rate of interest less one per

cent.

o For obtaining of an FDR the presenting of the FDR is a must, duly discharge

operational instructions.

o However in case of prepayment all the joint account holders shall be requiredto discharge the FDR on the bank, as per specimen signature/s.

o As per RBI directives the payment of an FDR beyond Rs. 20000 shall be

done by a crossed order cheque.

o FDR, being not transferable, shall not be paid to the third party on due date,

unless there is a specific authority of the account holder.

o In case of payment to a blind depositor the cash shall be handed over to

him/her in presence of a bank official and a representative of the account holder.


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CLEARING

DPARTMENT


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INTRODUCTION:-

Clearing is process, by which bankers exchange cheque drawn

against each other, which is received by them for collection or clearance from

their customers. In other words, clearing means to get the cheques cleared and

receive the payments.

The book is in its normal business hour receives every day

various cheque for collection drawn on other banks. The cheques of other banks

brought over our clients cannot be directly credited to their account by they

should first be cleared though the clearing house for which in bank clearing

department should be maintained for overcoming such difficulty and also for over

coming the work the work of internal clearing which would if it is handled onsumming and tedious job. Therefore, to copy up with if it is handed separated by

each banker and such clearing house facility provided.

If clearing house facility were not applicable than each banker

would obliged maintain a very large cash balance since all the cheque drawn upon

it would be honored immediately.

Clearing means to get cheque and receive then payment for the

same clearing and is process by which banker exchanges the cheque drawn

against each other which are received by him for collection of clearance from

there receives the payments for the same.

WHY CLEARING IS NECESSARY:-

The clear the cheque of customer drawn on banks and remove the

difficulty of going and presenting the cheque to one bank and to other bank and

get its payment.

SET UP A CLEARING HOUSE:-

A clearing house is a selected is a place by the RBI or NYBANK /SBI/SBS

etc. who functioning of a clearing house.

The manager of the bank who conducts the house is nominated as the

president of the house.

All the participating banks are required to become the member of the

clearing house. If any bank is not accepted as a direct member than such bank

may become sub-member of bank.


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The bank conducting the house needs to provide place and staff for running

the house.

For conducting the house the conducting bank meets with administrative as

well as miscellaneous expenses which are required to be shared equally amongst

member banks at regular interval

FUNCTION OF CLEARING HOUSE:-

All the banks met at the clearing house at a stipulated time in the morning.

It is @ 12:45 to 1:15p.m. in the afternoon at Rajkot. This is known as first

clearing.

Here all member banks exchange their listed instrument with each otherthrough their representatives/clerks.

All the bank representatives bring their instruments duly summarized,

which they have received.

From the copy of the summery of each bank the bank which conducts the

house, give effect of net debit/credit balance of each banks account with name.

Again at noon the house meets to exchange those instruments of which

payments could not be affected. This is known as second clearing. It is arranged at

about 2:45 to 3:15p.m.

Here also from the summery of each bank the difference of debit/credit is

affected in the particular account by the bank that keeps accounts of all banks andconducts the house.

CLEARING HOUSE MEETING:-

o General body meeting should have been convened once in a year.

o A working committee should have been formed amongst participating

member banks.o A working committee meeting should have been convened once in quarter.

o In case of exigencies the working committee should convened with short

notice for immediate action to be taken for smooth running of the house.

o The president who convenes the meeting shall preside over the meeting

and shall advise the decision taken during the meeting to all the member bank vide

circulars.

OUTWARD CLEARING:-


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1. Accepting of instruments

The banks accept/collects all the negotiable instruments from our

clients who have either deposit accounts or loan accounts or want to purchase

demand drafts.

Such collected instruments are required to be separated into two

divisions. (i) Drawn on local bank branches and (ii) Drawn on outstation bank

branches.

2. Instruments drawn on local banks:-

Only those instruments which are drawn on local bank branches

shall be taken for exchange in the house as outward clearing.

The instrument drawn on outstation bank branches shall be sent asoutward bills for collection.

3. computerizing of instrument:-

Instruments drawn on local bank branches shall be computerized

along with the vouchers/paying in slip etc.

The particulars of the instruments and the particulars on the

vouchers i.e. name of the payee, amount in words and figures etc. must tally.

4. Stamping of instruments:-

All the instruments to be presented in outward clearing are to be

stamped with banks clearing stamps of the instrument.

All the vouchers/paying slips also shall be stamp stamped with

clearing stamp on the front side.

Wherever necessary the bank shall give suitable certificates on the

back of the instruments.

5. Sorting of instruments:-

The computerized instrument shall be sorted out bank wise, first.

For this a box with many small boxes is utilized for sorting instruments.

Each small box is given a banks name.

The instruments are then sorted and kept in the bank wise boxes.

Such bank wise instruments are sorted out branches wise of that

bank

6. Listing of instruments:-


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Sorted out instruments are listed first as branch wise on computer.

Such branch wise listing is totaled and a bank wise listing is

prepared.

7. Preparing of house summery:-

From the bank wise listing the house summery is prepared for

outward clearing.

The vouchers are arranged department wise and when the total of

the vouchers gets tallied with the total of the summery the outward clearing is

considered all right arithmetically.

8. Presenting of instruments in the houses:-

The clerk shall carry with him all outward clearing instruments andattend the house in time.

He shall start putting bank wise instruments in the individual boxes

arranged for each bank in the house.

OUTWARD CLEARING REGISTER:-

A list/register of all vouchers of outward clearing in document is taken out,head wise and vouchers shall be called out for being checked before releasing

or effecting credits. An outward clearing final summery is prepared.

INWARD CLEARING:-

1. Accepting instrument in house:-

Each bank in the house shall put in the individual boxes theinstruments drawn on each one with listings.

The representatives of each bank shall take out such instruments,

presented to them, from boxes and write down them in the summery boxes.

2. House summary first clearing:-

The bank representative shall prepare bank wise listing and then

strike out the difference of the outward clearing and inward clearing.

The original top of the summary shall be handed over to the

officer in- charge of the house as per the rule of the house.


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The account of each bank shall debited/credited as per the

differences arrived at by each banks representative as per days summery.

3. Sorting of inward clearing:-

Instruments drawn on bank and received in inward clearing are

brought to the bank.

All the instrument are computerized bank wise branch wise and

department wise.

The total of all the instruments is tallied with summary/inward

clearing register.

The instruments of each department are rebased for being

debiting.

4. Debiting of accounts:-

On receipt of instruments each department starts punching for

debiting the accounts as appearing on the instruments on computer.

Care is taken that each instrument is in order i.e.(The all reasons

regarding returning of cheque.)

Those instruments which could be debited are then passed b the

head of the concern department and the particulars are verified on the

computer.

Those instruments which could not be returned for want of

sufficient balances the accounts shall be debited with returning charges per

instrument. It is rs.20 debited by VMCB at present.

An inward clearing final summary is prepared in document.

SECOND CLEARING RETURN CLEARING:-

1. Return outward :-

Each bank again prepares summary on strength of instruments

which were received in first clearing but are required to be returned along

with returning memos duly noted in out ward return register.

Each bank representative then puts the returned instruments in the

small boxes at pertaining to the concerned bank.

2. Use summary :-

Thus instrument are exchanged by each member bank.

Each bank representative shall take out the instruments return by

other banks from the small boxes shall write down the figures in the summery

book for second clearing.


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The difference shall be stricken out and copy of the summery shall

be handed over to the officer in charge of the house for affecting the

difference for credit /debit in the banks account.

3. Return inward:-

Some of the instruments presented to other bank in first clearing

may be returned along with returning memo in second clearing.

Such returned instruments brought from the house shall be

returned to the clients/account holders debiting their accounts with the

amounts of instruments, under advise to the clients.

All such return instruments are noted in the cheque return register

with full particulars and the reasons for returning.

Where phone numbers are available with the bank the information

of such return are advised to them immediately on phone. All such instruments received as returned instruments are noted in

a pen delivery book and handed over to the presenter/client against their

sign/acknowledgement.

RETURN ON REGISTER:-

Sometimes it happens that an instrument through received in first

clearing could not be returned in second clearing.

Such an instrument can be returned on computer with due counterwith due consultation of bank branch to whom it is to be returned.

The receiving bank branch shall issue a pay order of the same

amount to the presenting banker.

In case the receiving banker advises to include the same in next

days first clearing then there is no need to return the instrument on the

counter.


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LOANS &

ADVANCESDEPARTMENT


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MEANING:-

Lending of funds to the constituents, mainly traders, business,industrial enterprise, constitutes the main business of a banking company. The

major portion of a banks fund employed by the way of loans and advances,

which is the most profitable employment of its fund. The major apart of a banks

income is earned from interest and discounts on the funds so lend. The business

of lending never the less is not without certain inherent risk. Largely depending

on the borrowed funds a banker cannot afford take undue risk in lending.

FORMS OF ADVANCES:-

The following are the main forms of advances granted by

commercial banks.

a. Loans

b. Overdraft

c. Cash Credit.

d. Pledge

e. Hypothecation

(a) LOANS:-

In this form of advance, the fixed sum is granted to a borrower. The

advance is given in lump some and in certain the loan amount is paid in

installments. The amount of loan may be repaid at one time or in agreed

installment. No cheque book is issued to the borrower.

A loan is ordinarily granted against any of the following types of

securities.

Banks own deposit receipts

Government securities and shares of companies.

Life insurance policy.

Silver bullion and gold.

Goods and machinery.

Immovable properties.


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(b) OVERDRAFT:-

Under and overdraft facility, bank permits the customer to overdrew this current account to the certain limit. The borrower is allowed to drew

in excess of the amount he deposits by specified amount.

In case of the loan account, credit entries normally represent

repayment of advance and once the account in to credit, it does not run in to

debit. But in respect of an overdraft account credit entries generally represent he

sale proceeds or business incomes of the borrower and the balance in the

fluctuates according to the amount withdrawn and deposited. An overdraft is

grant against any or more of securities mentioned under loan except against

good and immovable properties.

(c) CASH CREDIT:-

Cash credit is a form of advance to meet the demand of trade,

industry, agriculture and commerce. Operation cash credit is conducted similar

to the overdraft. Te difference is that in the case of overdraft existence of a

current account is implied. A limit is stipulated funds granting this type of

advance and the borrower are permitted to draw funds up to this amount. Cashcredit is granted against security of god or produce. Cash credit limit is renewed

for every year. In cash credit there is pledge and hypothecation.

(d) PLEDGE:-

Pledge is the bailment of goods as security for payment of a dept or

performance of a promise. Bailment is the delivery of good by one person to

another for some purpose. In other words pledge is delivery of goods by personto another with an intention of creating security for payment of a debt, or

performance of a premise. The transfer of possession is the essence of and the

banker to whom these are delivered is called pledge. Goods, shares, government

securities and documents of title to goods can be pledged to the bank. In case of

default, the banker can either file a suit on the borrower the pledge good or sell

the security after giving proper notice to the borrower.

(e) HYPOTHECATION:-


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In the case of hypothecation both the possession and the ownership

of the goods continue to be with the borrower. It is an equitable charge created

in favor of the banker. Document that is normally executed convert this facility

in to pledge. Goods machinery, commercial vehicles, standing crops, etc. are

hypothecated to the bank.

LOAN AGAINST F.D.R.:-

The bank, at its description, grant loan or an over draft to the tune of maximum

95% of the principal amount of an FDR.

On strength of an application of loan/overdraft duly sanction and the FDR duly

discharged the department shall verify the account and or the back of the FDR.

On due date of the FDR department shall pass necessary entries.


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BILLS

DEPARTMENT


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MEANING:-

Outstanding demand bill department mean outward demand

bills for collection. Which are going outside the bank for collection. These

cheque are known as OBC. The relationship between banker and customer in

case of OBC is that of the customer only.

Bank receives various cheque drawn on other bank situated in

different cities. Such cheque cant be cleared in local clearing house, such

chouse are sent to the branches and are there is no branch, in that particular

town or city then they are directly sent to the particular bank for collection.

Generally there are two types of bills of exchange.

Inward bills for collection

Outward bills for collection

OUTWARD BILLS FOR COLLECTION:-

Procedure for collection of OBC:-

First of all bank receive the cheque with pay in slip, then we

have to stamp put ward bills for collection number on the cheque is and we

have also to put banks cosign stamp. If the cheque is in order then it should be

stamped with payees account will be credit on realization.

All the cheque are given outward bill for collection number

strictly they are entered in outward register as under.

Date of voucher, number of OBC, number of cheque, from

who received, where drawn, name of the drawee, to whom sent for collection.

OBC register is very important for us to keep full details of the

cheque sent for collection and it will be useful when the cheque are realized.

This is one type of service of the bank rendered to the

customer. Therefore bank charges commission. The rate of commission is

generally 15%. In short the procedure of the OBC is as follows.

o Tendering with paying in slip.

o Computerizing particulars.

o Stamping the instruments.

o Separating the instruments.

o Forwarding the schedules.

o Dispatching the schedules.


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Realization of bills:-

o Bills when realize shall be noted in OBC register. When the proceeds of

the OBC are realized the bank receives drafts from the drawees/drawee banksgenerally drawn/payable on local branches.

o The department takes out the concern vouchers from the files and the same

is attached with the draft etc received towards realization.

o The draft along with the voucher is then sent to the clearing department for

being presented to the drawee bank branch.

o On realization the parties account shall be collection charges shall be

debited.

o A pair of transfer voucher shall be prepaid credited OBC and debiting

OBC with the days total of realized OBC.

o The pairs of voucher then shall be scrolled and released for the days bookwriting.

Delayed realization:-

o As per the RBI directives the proceeds of the outstation collection should

be got collected and credited to the partys account with in 14 days from the

date of receipt of the collection.

o In case the realization gets delayed for more then 14 days, for whatsoever

reason, the bank has to pay interest not than saving bank account rate of

interest from the 15th days till the day before the date of realization/crediting

to partys account.

o Therefore, the department has to remain very vigilant & follow-up action

should be taken to get the realization in time. Reminders in from should have

been sent periodically, followed by personal letter of there is no response.

Return of bills:-

o It may be that a bill may be returned to us for any financial or technical

reason by the outstation bank branch/agency.

o The returned bill shall be along with the returning memo stating the reason

thereof.o The department shall therefore, be required to the concerned collection to

the payee. And the same shall be done after nothing in the return inward

register.

o Such instrument shall be returned along with clear acknowledgement, duly

nothing in the peon book.

o The department is authorized to charge nominal commission and postage

charge, incurred by the bank, to the payees account with the bank under

advises to him.

o However, if the collection is received bank is not authorized it charge any

thing ethically towards returning charges or commission. On the country the

bank shall be liable to pay over due interest, if demanded.


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INWARD BILLS FOR COLLECTION:-

MEANING:-

Documentary bill and clean bills, cheque are received by this

dept.

Documentary bill are accompanied by railway receipt, lorry

receipt, motor transport receipt and bill of landing is known as documentary

bills.

Documentary bills first of all are entered in the register.Customers are intimated by intimation card. This card contains all the terms

and condition decided by drawee i.e. rate of interest, commission, etc.

payment can be made either by cash or by cheque. All necessary documents

are stamped which are handed to the party and the receiving branch precedes

the amount of bill for issuing branch. Thus, transaction is completed. If

customer retired bill after expiry of time commission as interest charged by

bank as decided by the drawee.

In short the procedure of IBC is as the follows.

o Receiving of bills

o Bills drawn on us

o Bills drawn on other drawees

Realization of bills:-

o Bills drawn on us

o Bills drawn on other local bank branches

o Bills drawn on other drawees

Remaining of proceeds:-

o Proceeds shall be remitted either demand drafts or cheque drawn by the

bank on other banks with whom mutual arrangements have been maintains

sufficient balance in the current accounts

o Along with each remittance a forwarding letter shall be sent advising the

reference number towards which proceeds are being sent.


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o Such proceeds shall be sent either by registered posts or by prominent

courier services.

DEMAND DRAFT

DEPARTMENT


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MEANING:-

For remitting money from once place to another, banks issues Bank

Draft or Demand Draft on their branches at the place of destination.

The purchaser sends the draft to the payee at destination for the

purpose of encashment at the drawees branches of the bank. The issuing

banker charges a commission for rendering such services, the amount to be

remitted. Rate of commission are given bellow.

It is to be noted that bank extend this service to public in general. It is

not necessary that purchaser of the draft must be a customer of the bank.

STOP PAYMENT OF DEMAND DRAFT:-

The banker should not comply with stop payment instruction of thepurchaser of draft as readily as that of the drawer of cheque. If the demand

draft is passed on to the payee, the latter acquires a right in the instrument,

which cannot be set aside by the stop payment order issued by the purchaser.

If the payee has endorsed the draft in good faith and for value to a third party

the latter acquires rights enforceable against the banker.

LOSS OF DRAFT:-

In case the draft is lost by the purchaser before it is handed over to

the payee. If the purchaser reports to the issuing banker the loss of the draft

without any endorsements, the banker may safely refuse for payment of the

same because any endorsement and the title of the holder would not be a

considered good. The drawees branch should note the loss. If the draft

presented by someone, the banker should return the draft with remark draft

reported to be lost, payees endorsement require verification.


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MAIL TRANSFER:-

Mail transfer is an additional facility by aback to its customer.

Particularly, when the parties are having by accounts with once and the same

bank but the bank different branches, they can avail of this facility, the

customer instructs the bank to transfer from his/her account, a specific and

credit the same to a specific account of another branch, bank accordingly

transfer amount from once account to another.

With this the risk arising out of each transfers or but of potable

misdelivered for misappropriation of the draft sent, is avoided. Thus this

facility provided for more security and convenience. Of course, this ispossible for branches of one and the same bank.


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CASH

DEPARTMENT


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MEANING:-

Cash transaction i.e. cash receipts and cash payments of all thedepartment of the bank is to be enrooted for proper control and calculations.

The manager, cashiers and cash peons are responsible in running the department

smoothly.

RECIEPT OF CASH:-

I. Paying in slip/voucher:-

Any one who is the bank and wants to deposit money in his a\cshall come to the bank and fill in the necessary voucher of the department. The

duly filled in voucher \paying in slip shall be tendered for getting scrolled.

II. Scrolling the voucher:-

The scroll department shall feed in the computer as stated in the

voucher \paying in slip and finds that particulars in the voucher are tallying with

the computerized data. On tallying the particulars the scroll department shall

give scroll number to each voucher/paying in slip, chronologically.

III. Tendering cash:-

The customer shall now approach the receiving cashier along

with the scrolled voucher /paying in slip. The receiving cashier shall check all

the particulars of the voucher/paying in slip in the computer and then accept the

cash.

IV. Counting the cash:-

The cash shall be counted, denomination wise, as stated in the

voucher. On finding OK the receiving cashier shall affix the stamp received

cash of the date with green ink on both the parts of the paying in slip.

V. Receipt of cash:-

The counter foil of the paying in slip shall be signed and

returned to the cash tendered. While the main part of the paying in slip shall be

signed and released for routine dealings after computerizing necessaryparticulars. The receiving cashier shall be held responsible for take notes or


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excess or shortage of cash in the receipts found and could not be traced out, at

the end of the day.

VI. Tallying cash:-

After cash hours the receiving cashier shall tally the totalreceipts with the total cash. On finding OK

it shall be tallied with scroll. And thereafter it shall be handed over to the head

cashier under joint signatures. All packets prepared by the receiving cashier are

to be checked by the other cashier or the accountant and both of them have to

out their initials on such packets. At the end of the day cash receipt scroll shall

be taken out in doc. No. (R CH 04)

PAYMENT OF CASH:-

I. Scrolling of vouchers:-

Every cash payment vouchers are first require to be scrolled as

per scrolling vouchers procedures. Such duly scrolled payments or vouchers

shall be dated with the concerned departments, and shall be passed for payments

duly authenticated by the heads of the concerned departments.

II. Issuing tokens:-

Such passed payments shall bear token nos. issued by the

concerned departments. The payments shall be no written in voucher transit

book and brought to the head of the department for being verified the specimen

signatures of the drawers of the cheque and withdrawal forms.

III. Passing of vouchers:-

The head of the departments shall pass the vouchers for payment

duly authenticating the vouchers and voucher transit books. Voucher transit

books with the voucher shall be brought to the paying cashier, who shall verify

the scroll with the vouchers and release the scroll by putting initials against each

entry in the voucher transit book.


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IV. Payment of cash:-

The paying cashier shall now call one by one as per serial of tokensissued as stated on the back of each voucher. The paying cashier shall ask to

return the token and verify the token number as per cash payment voucher. He

shall ask the cash receiver to sign once again on the back of the voucher, as it

was done while accepting the token. On satisfying that the person who obtained

the token and who returns the token are and the same, on strength of both the

signatures, the payment of the voucher shall be released. The cash receiver has

to get satisfied about the cash received by counting the same immediately and

discrepancy, if any, is found the same should be brought before the paying

cashier before leaving cash window. Because once the paying cashiers window

is left the cahier shall not be held responsible for any shortage found afterwards.

At the end of the day cash payment scroll be taken out in doc. no. (R CH 05)

REMITANCE OF CASH:-

As far as possible every remittance should accompany either with

a watchman or a peon or a clerk along with the cashier. To minimize the risk the

same Rickshaw /taxi should not be hired every time. While remitting the cash,

inward or outward, the bag should have been locked properly and the bagshould be tied with a chair with some sturdy bar of the vehicle. The bank should

arrange for transit insurance.

CASH VERIFICATION:-

Before keeping the cash in the cash safe on hand cash and

cash in safe shall be checked by the HOD on daily basis. However, a

surprised verification shall be done once in a month by an officer, other than

hooding rotation. The officer who does surprise cash verification shall sign with

date on the cash in the morning as opening balance or in the evening as closing

balance. A report shall be submitted in doc. No. (F CH 01) incorporating full

details of any discrepancy are found.


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MISCELLANEOUSSERVICES.


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The bank also provides some additional small services which are as follows.

Bank can stop the payment of cheque of any type of account on the request

of the account holder.

Banks also provide the facility of traveling cheque.

On the request of the account holder of the saving department banker can

also provide the duplicate pass-book.

Bank also collects the electrics bills and also of telephones.

Bank gives monthly statement of the transaction done by the customer for

their convenience.

Bank also provides the required information to their customer to which is

useful for their business.

Thus, bank has to perform number of miscellaneous services to their customers.


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A N C I L E A R YS E R V I C E S


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SAFE DEPOSIT VAULTS:-

Lending banks provided safe vaults to the public at their selected

branches. For this purpose the banks arrange strong room. Preferable under

the ground floor, equipped with the safe deposit locker. These lockers of

different size and are hired to the public at reasonable rent, e.g. rs. 20, 25, 50,

or 100p.a. the procedure followed as regards safe deposit vaults transaction is

as follows.

A locker may be hired by anybody, but banks insist that the intending hirermust have a saving account with the where in a minimum balance, say R s. 100 are

always maintained.

The person intending to hire a locker is required to execute a lease

agreement which contents all the terms and condition on which the locker is hired.

In fact, the relationship between the banker and customer is that f a lesser and

lessee. The lessee promises to pay the annual rental charges in advances and

authorizes the banker to debit his saving account with such rental charges.

A locker may be hired in the joint name of two or more persons. In such

cases, the banker must take clear instruction from all the hires and subsequent

modification in same, if may, must be made with the consent of all of them.

The banker maintain a safe deposit register, where in record of all dealing

in respect of locker hired to particular customer is made a separate page. The

banker takes a specimen signature of the hirer with his full name and address. The

hirer is also required to choose and communication to bank a code word or

password. As this code word is not only to the hirer, it acts as an additional safeguard identifying the hirer and his signature.

Each locker can be opened by the application if double key. One of hirer

and the other of the banker it self as a master key.

The banker does not known the content in the locker. He maintains the

records of the visits of the hirer for the opening his locker and the lotteries every

time he/she visits the bank for this purposes.


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H.R.DEPARTMENT


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INTRODUCTION

Human resources in any organization, be it public private of Co-Operative

constitute perhaps the most vital assets of that organization. An organization will

fail if its human resources are not competent to execute the work assigned tothem. There is no getting away from fact that human resources represent a

subsystem which dominates all other sub system to the organization.

Moreover, people are the only assets of an organization that appreciate over

a period of time while all the other assets depreciate. The more an organization

is investing in human resources, the greater the return from the investment is

likely to be and it has been rightly pointed to in one of the books of inter nationalCo-Operative alliance The gains accruing out of structural reforms can be best

capitalized only it the personnel maintained by the Co-Operative institution are

in a position to execute the policies effectively. This implies the need and

necessity of proficient and capable human resources which is on of the primary

aims of human resource management.

According to national institute of personnel management of india Personnelmanagement is that part of management concerned with people at work and with

their relationship within the organization it seeks to bring together men and

women who make u an enterprise enabling each to make his own best

contribution to its success both as an individual as a working group.


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H. R. POLICY AND PROGRAMMES

A sound foundation for selection of the right kind of human resources is

laid with the formulation of sound human resources policies. According to

William R. Spiegel a human resources policy can be defined as, A body of

principles and rules of conduct that governs the enterprises in its relationship

with its employees. Thus the sound personnel policies set the tome for proper

administration of the personnel programmers, So as to achieve the objective ofthe organization.

As THE VERAVAL MERCANTILE CO-OP BANK LTD .is one of theleading Co-Operative bank in the Co-Operative sector, though its performance is

very good but than also such policies for human resources they can not make by

their own. It has to follow the rules of policies given by the government and RBI

so in the matter of the personnel policies THE VERAVAL MERCANTILE CO-

OPBANK LTD is restricted to some level. Than also the bank have adopted a

policy of recruiting only CA and MBA for their management level for bettermanagement. So, by this way where they get chance they are making or improving

personnel policies at THE VERAVAL MERCANTILE CO-OP BANK LTD.

The next important stage in the selection process is the human resource

planning. Planning applied in the field of personnel it is the comprehensive

and on going process. Broadly conceive human resource planning as Thomas H

Patten Jr. states, Human resource planning is process by which an organization

ensures that it has right no. and kinds of people in the right place at the right time

doing the things which they are economically most useful.

In the VERAVAL MERCANTILE CO-OPBANK LTD there is a veryeducated staff as it is concerned with the human resource planning recently they

has adopted policy of selection only C.A. & M.B.A. For their human resource

has as far as concerned with the human resource planning. There is no long term

planning but at a time or requirement of staff they used to recruit staff either out

side or from with in the firm through transfer or promotion


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RECRUITMENT

Among the function of human resource manager, one man

function is to procure best people for their organization, means search of

prospective employees to suit the job recruitment. A firm has to pass through

well and good recruitment process for having best human resource this

recruitment can be possible through many sources. A firm can recruit proper

candidate mainly through two success recruitment sources these are as under.

Recruitment Sources

Internal sources External sources

1) Transfer 1) Advertisement

2) Promotion 2) Education institutes

3) Relative & friends 3) Placement agencies

4) Labours contractor

In case of THE VERAVAL MERCANTILE CO-OPBANK LTD, the main

source or recruitment is daily news paper advertisement. They also recruit

employees by transfer and promotion. Generally as per the recruitment of the job

they give advertisement in newspaper and collect the pool of application.

SELECTION

Managing people is not easy but it can be made easier if you

make sure that you have selected the right people in the first place. And also it

said that selection of people is easy but selection of right people is difficult

task. The selection procedure is concerned with securing relevant information

about an applicant is secured. The objective of selection process is to determine

whether the applicant meets the qualification for a specific job and to choose the

applicant who is most likely to perform well in that job.


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Thus an effective selection program is a non random process

because those selected had been choose on the basis of the assumption that they

are likely to be better employees then those who have been rejected. Selection process or activities typically follow a standard pattern being with an initial

screening of applicant, interview and concluding with final employment

decision. The selection procedure of THE VERAVAL MERCANTILE CO-

OPBANK LTD is quit simple. The stages of including in the selection process

are as follows.

New paper advertisement

Receipt of application

Screening

Arrangement and interview

Selection

Placement and confirmation

ORIENTATION

After the selection of employee, management of the firm has topass through such process. So new employee can be aware of the atmosphere of

the firm and also can be familiar with the other employee. This process is called

orientation or induction. In any organization this process performs very vital role

because this is the only process which can create better environment in the

organization and a new comer can be aware about his working condition, his

area of responsibility and everything about organization. Proper orientation

process can be beneficial to both, a new comer as well as organization.


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PLACEMENT

Once an employee has been selected he should be placed on a

suitable job. Putting the right man at the right job is as important as hiring the

right person. Placement is a process of assigning a specific job to each one of the

selected candidates. It involves assigning a specific rank of and responsibilities

of an individual. It implies matching requirement of a job with the qualification

of a candidate.

In other words, placement is the determination of the job which anaccepted candidate is to be assigned and his assignment to the job. As THE

VERAVAL MERCANTILE CO-OPBANK LTD is very careful about thisprocess. And one thing is that, at the time of requirement only they hire new

employees. So hire it is specified that for which job they are recruiting. After the

final selection, they have been marking the job of the new employee.


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MARKETING

DEPARTMENT


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INTRODUCTION

Today, marketing is spread in every field of like hospitals, services,

goods even politics and many more. In banking sector too the importance of

marketing also can not measurable, still it has not developed in public sector it is

only limited to foreign banks and private sector. The reason for success of

foreign in India is only best marketing efforts. Today in banking sector there is a

cutthroat competition among public sector, private sector and foreign bank.

Marketing is a human activity directs at satisfying the needs and wants of

customers, there are five stages of bank marketing firstly marketing g is

advertising, sales promotion and publicity, secondly marketing is smiling and

Co-friendly atmosphere, thirdly marketing is innovation like the ATMs or

cheques with drawls on fixed deposits, fourthly marketing is positioning. When

all banks advertise and innovate, they look alike so, they should try to position

themselves differently, even through symbols, logos or aggressive advertising so

that the customer can distinguee between one bank and another and finally

marketing is analyzing, planning and control.

At THE VERAVAL MERCANTILE CO-OPBANK LTDthough there is

no specific marketing department. for marketing of different services but

providing vest services to their customers and getting good customer

satisfaction, and doing such efforts of marketing like promotion activities they

are in directly getting benefits of the marketing. Today they are also planning for

such continuous marketing efforts. And with in the few years they will have

aggressive marketing department.


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PROMOTIONAL ACTIVITIES

Promotion tools are also essential in the banks

marketing mix. We need personal selling in customer contact, development,

personal service. And so on. Similarly, bank marketing program need

advertising as mass communication tool. The bank is a sponsor. It sends a

message to prospective buyers (the audience) by means of a medium (The carrier

of the message). An advertisement in bank marketing is a promise a promise of

satisfaction to prospects who buy or use the service offered by the bank or who

are willing to patronize the bank. Banks are using all media of advertisementsuch as newspaper, radio television, magazines etc., for advertising their services

and for getting the business. Bank marketing also uses sales promotion devices

such as point of purchase materials, advertising specialties (ball pens, calendars,

diaries, notes pads etc.) brochures and booklets describing bank services, etc. a

bank has also to use public relation as mode of promotion to build up and

maintain its bright image in the community.

As far as it is concerned with promotion activity thanTHE VERAVAL MERCANTILE CO-OPBANK LTDis not doing any personalselling but bank is believe in very strong goodwill and also best customer

satisfaction they are using advertising they are giving their advertisement in

news paper like Sandesh, Gujarat samachar etc.


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MARKETING RESEARCH AND INFORMATION

Good marketing decisions are not made in a vacuum. Hence, even in bank

marketing. We need marketing research and information to enable bank

executive to make sound decisions. The increase in the use of marketing

research in bank marketing is due to two forces:

competition pressures to be right, and Customer orientation in

marketing planning and program. Banks are now establishing a separatemarketing organization. Conduction marketing research, setting up sales training

program and adopting sales promotion divides promotion devices to attach

customer we have special bank advertisement through radio. T.V. and

newspapers. Marketing research may be defines as The scientific and controlled

process of gathering of none routing, marketing information, helping

management to solve marketing problems.

As far as it concerned with the marketing research process at THEVERAVAL MERCANTILE CO-OPBANK LTD. They have been continuously

doing such research from beginning. But one positive point for marketing

research is that they not doing any big expenses for marketing research and for

executives. Banks staff member themselves goes to market and gathers requited

information or data. Such information or data they are collection from direct RBI

or other banks. So, by this way they are getting benefits by using marketing

research process.


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FINANCE

DEPARTMENT


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INTRODUCTION

Finance is the fuel of administration. Without adequate financing no business

enterprise can raise its potentials for growth and success. And it would be worthwhile

to recall what Henry Ford once remarked Money is an arm or leg. You either use it

or lose it. This statement though apparently simple and quite meaningful, it brings

home the significance of money or finance. In the modern money oriented economy

finance is one of the basic foundations of all kind of economic activities.

Finance management is indeed the key to successful business operations.

Without proper administration and effective utilization of finance, no business

enterprise can utilize its potentials for growth and expansion. Organization and

control of these function is important for all types of business units. Specially in

public undertaking massive investment has so far been much less productive, it is

necessary to organize the finance functioning such a manner that should help the

business in achieving its basic objective with minimum cost.

According to Hoagland Financial management is concerned mainly with such

matter as how of business corporation raises its finance and how it make use of that.


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FINANCIAL PLANNING

. Planning means deciding in advance what is to be done for eachfunctional area of management. The planning of each area should link to the

objectives of the organization. Financial planning means Planning is very necessary

for the smooth running of the business can not be carried on without planning

deciding in advance the financial activities to be carried on to organization. So, the

basic purpose of financial planning is to make sure that adequate funds are raised at

minimum cost and they are used widely. A proper planning of the business on one

hand and to allow a fair return to their contribution on the other.

Thus financial planning includes the following

1) Determination of financial objectives.

2) Formation of financial policy.

3) Development of financial procedure.

In THE VERAVAL MERCANTILE CO-OP. BANK LTD, the financial

planning has been done through proper management in various areas like liquidity

planning, investment planning, profit planning, cash management etc.

CAPITAL STRUCTURE

Capital structure decision is yet another important area under financial

management. Capital structure refers to the mix or proportion of firms permanent

long term financing represented by debt preference must ensure the maximization of

wealth of shareholders so even the capital structure decision must be taken in the light

of wealth maximization objectives. That particular mix of debt and equity whichmaximizes the value of the firm is known as optimum capital structure in simple

word capital structure refers to the composition of capital.

Capital structure = Long term debts + Preference share capital + Equity

share capital + Reserves.


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CAPITALIZATION

Capital plays an important role in any business at the time of corporation of the

business, it is the first problem before promotes to decide how much capital is to be

required and in what form. It is not an easy task. A financial plan is to be preparedform the purpose of explaining the abort term and long term needs of finance to the

company. Sever consideration would be kept in mind such as cost of capital fair return

to the contributors of capita risk involved flexibility etc. while taking decision in this

regard it required proper capitalization.

Proper capitalization reveres to the total amount of capital required in the long

run to run the business smoothly capitalization uses in its quantities aspect and reveres

to the amount at which a companys business can be valued most of the traditional

authors define the terms in this sense the sum total of the par value of all share. After

definition of capitalization are being reproduces below in order to understand the term

well.

E.F. Lincoin, The amount of capital at any time should not excepted none

should it be less than the amount required in both situation it there firm will be loser.

These conditions are called under capitalization and for capitalization. In case the

amount is hiring than it is required the company his have to pay more interest on the

surplus capital are they rescuing the proper of the concern of the total capitalize not

sufficient to discharge the function of the business the concern with not be in a

position of even reasonable profits due to lack of funds it is there fore, necessary to

have proper capitalization.

CASH MANAGEMENT

Cash is the medium of exchange which allows management to carry on the

various activities of the business on day to day basis. And management of cash is one

of the most important answers of over all working capital management due to the fare

there cash is the most liquid type of current assets. As such it is the responsibility of

the finance function to see that the various functional areas of the business have

sufficient cash were ever they require the same at the same time if has also it be

ensured that funds are not blocked in the form of idle cash as the cash remaining idlealso involves cost in the form of interest cost and opportunity cost as such the

management of cash have to kind a mean between these two extremes of shortage of

cash as well as idle cash.

The basic objectives of cash management of are to reduce the operating cash

balance requirement to maintain possible extent without affecting the routine

transaction. For the management of cash flow statement is the most important tool

cash low statement provided information about the cash ratio and payment of a firm

for again period. It provides important information that compliments the profit and

loss account and balance sheet.


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RATIO ANALYSES

Financial analyses of an organization depend to a large extent on the

use of ratios. The technique is commonly known as financial ratio analyses. Ratio

analyses is a very powerful analytical tool useful for measuring performance of an

organization the ratio analysis helps the management to analyses the past performance

of the firm and to make further projection. Ratio analysis is a process of comparison

of on figure against the calculation of ratio relatively easy and simple task but the

proper analyses and interpretation of the ratio can be made only be the skilled

analysis.

The ratio of THE VERAVAL MERCANTILE CO-OP. BANK LTD of the last

year is as under.


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FINANCIAL INFORMATION

The liberalization of the financial sector is the key for the over all

liberalization process. Gradually, the structure of the financial market itself has begun

to change, in the changing Financial MarketTHE VERAVAL MERCANTILE CO-OP. BANK LTD. has market the progressive growth and profitability both the

financial year 2006-2007 which is reflected in the following Financing since

inception:

(Rs. In Lacs)

Particulars 31-3-06 31-03-07

Members 15,276 15,868

Share Capital Rs. 219.74 Rs. 247.91

Deposit Rs. 8526.14 Rs. 9176.46

Advances Rs. 4330.86 Rs. 5261.44

Net Profit Rs. 33.00 Rs. 36.00

Working Capital Rs. 10807.54 Rs12469.60


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F U T U R E P L A N S


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To maintain excellence in operation & management by bringing I transparency

& integrity.

To emerge as symbol of public trust & confidence by creating a positive

image.

To ensure speedy & satisfactory customer services through continuous product

innovation & aggressive, marketing strategies.

To adopt policy for technological up gradation& advancement to boost up total

computerization & inter branch connectivity for all the branches.

To develop & motivate human resources there by cultivating processional

culture in the banking operations.

To strive for continuous growth & profitability through branch expansion &

modernization.

To introduce more ATM centers & various plastic products for better

customer services.


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To maintain the asset quality at the optimum level by continuous efforts for

credit risk management.

To provide multi dimensional services to customers by incorporating various

modern service areas like insurance, bill collection and providing one door

service to clients

To explore more non-fund based business like latter of credit, bank guarantee,

custodial services to increase banks non interest income.

To continue to maintain the NET NPA at ZERO level.

To plan Banks balance sheet with judicious ALM.

S U G G E S T I O N S


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As improvement is a constant requirement for every one and if we try

to learn from a little things also. Than every minute we will improve ourselves.

And for constant improvement in organization management should keep their

eye on every concern, during my visit at bank I have tried to cover everything

and according to my knowledge I am trying to give suggestion to THE

VERAVAL MERCANTILE CO-OPERATIVE BANK and I am sure that it

surely will be helpful in progress of the bank.

First and foremost suggestion for THE VERAVAL MERCANTILE CO-

OPERATIVE BANK is that, yet they are not using such marketing tools in the

area of cutthroat competition in banking sector. Each bank should try for better

and different marketing. THE VERAVAL MERCANTILE CO-OPERATIVE

BANK should make one group of executive, who can help to the management

and can provide different services like collection from home only and they

should use such slogan for innovative products like only one call can make

your life better. This slogan can be sued for assets product. So by using not

only simple advertisement but also strategic marketing tool bank can improve a

lot in the market.


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C O N C L U S I O N


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After having all the required information for preparing my report, I have

tried to analyze each and every function of THE VERAVAL MERCATILE CO-

OPERATIVE BANK. During my report all the staff member of the THEVERAVAL MERCATILE CO-OPERATIVE BANK had well co-operate me.

And also I have found that the, there is a very good level of commitment in all

the staff members. During my report I have tried to cover each functional area of

the bank and after having clear idea about everything in the bank, I can conclude

that THE VERAVAL MERCATILE CO-OPERATIVE BANK is one of the

leading firm in the bank, I can conclude that THE VERAVAL MERCATILE

CO-OPERATIVE BANK is one of the leading firm in the co-operative sector,

and with advanced technologies and educated staff to trying to positioning in the

banking market. But than also due to such weaknesses of co-operative sector

THE VERAVAL MERCATILE CO-OPERATIVE BANK is also suffering from

such limits.

For, better future a great success my all good wishes always

with THE VERAVAL MERCATILE CO-OPERATIVE BANK. I wish them for

better achievement


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B I B L I O G R A P H Y


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Books ::-

Human Resource Management &

Personnel Management

By :- K. Aswatthappa

Publication :- Tata Mc-Graw Hill

Marketing Management

By :- S. A. Sherlekar

Publication :- Himalaya Publication House

Finance Management


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By :- B. S. Shah

Publication :- S. B. Shah on Behalf of B. S. Shah

Annual Report Of The Veraval mercantileco-operarive bank

Co Operative Bank3

Documents