INTRODUCTION The word ‘co-operative’ is derived from the Latin word ‘co-operation’ which means working together. Generally it implies living, thinking and working together. It signifies the spirit of human civilization. It is the basis of the social life of human civilization. Co-operation is the backbone of economic activities and social progress. International Co-operative Alliance defines “co-operative society is an autonomous association of persons united voluntarily to meet their common economic, social and cultural, democratically controlled enterprise. Co-operative movement first originated in England. Later on, it has been introduced in Germany, Russia, China, USA, Japan, India, Israel etc. It is from these countries that the movement spread almost all over the world. In India co-operative movement was started y the passing of the first co-operative societies Act in 1904. By the end of these century, it has 1
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INTRODUCTION
The word ‘co-operative’ is derived from the Latin word ‘co-
operation’ which means working together. Generally it implies
living, thinking and working together. It signifies the spirit of
human civilization. It is the basis of the social life of human
civilization.
Co-operation is the backbone of economic activities and
social progress. International Co-operative Alliance defines “co-
operative society is an autonomous association of persons united
voluntarily to meet their common economic, social and cultural,
democratically controlled enterprise.
Co-operative movement first originated in England. Later on,
it has been introduced in Germany, Russia, China, USA, Japan,
India, Israel etc. It is from these countries that the movement
spread almost all over the world. In India co-operative movement
was started y the passing of the first co-operative societies Act in
1904. By the end of these century, it has covered almost all
villages and major portion of rural and urban population.
Co-operative institutions have been accepted as a
significant instrumentof socio-economic transformation in rural and
urban area. In India co-operation has its origin in the field of credit
at present of stretches. Its aims to areas such as production,
marketing, processing, public health and consumer sector etc.
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In Kerala, the first legal legislation was passed in 1913. The
first co-operative society was Edvanakkad Service Co-operative
Bank. After the formation of Kerala State, a new legislation was
enacted I 1969, Kerala Co-operative Societies Act. A service Co-
operative Bank access saving Bank deposits, current deposits,
Fixed deposits and Recurring deposits. It gives short and medium
term loans.
SCOPE OF THE STUDY
The Chengala Service Co-operative Bank Ltd. No.S 66 is
one of the leading banks meeting he financial requirements of the
members. The study is designed to cover the analysis of the
general working of the bank for the last seven years. The study is
done mainly on the basis of the figures reported in the financial
statements. For the purpose of the analysis of the problem of the
bank a seven year period from 2003-04 to 2009-10 is selected.
OBJECTIVES OF THE STUDY
The main objectives of the study are to get analysed the financial
performance of the Chengala Service co-operative Bank Ltd. No.S.66. The
objectives of the study are
1. To study the organization and working of the Bank.
2. To study the working capital CSCB Ltd.
3. To analyse the lending and deposit policy.
4. To review the growth of the bank during the years.
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5. To analyse the profitability of the bank.
6. To make recommendations based on findings of the study.
7. To extends short term and medium term to agriculturists.
8. To study the different ratios of CSCB Ltd.
METHODOLOGY
This study is based on a single unit and have case study
approach is accepted as a general methodology. Accepted
statistical tools and techniques have been used for the purpose of
analysising the data. Graphic representation of data have also
made to find out the trend behaviour in each year and also to know
the relationship between them.
SOURCES OF DATA
For this study, both primary and secondary data are used.
Primary data are collected by interviews and discussions with the
secretary, president, staffs, customers and shareholders of the
bank.
Secondary data are collected from published accounts,
annual reports and other publications.
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PERIOD OF THE STUDY
The study attempts to analyse the financial analysis of
C.S.C.Bank, for a period of seven years from 2003-04 to 2009-
2010.
LIMITATIONS OF THE STUDY
The study has the following limitations.
1. It is a study related with single unit. Hence conclusion may
be valid for unit concerned. Generalization of conclusion has their
own limitations.
2. Owing to the constrains of time and money a detailed and
elaborate study could not be attempted.
3. Inter-branch comparison of C.S.C.B. Ltd. could not be made,
owing to the shortage of money.
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INTRODUCTION
Banks are the most important institutions that help business
activities. The success of trade and commercial activities to a
large extent, depends on the availability of finance. Different types
of banks facilitate varied financial requirements of business
community. Banks also aim at collecting tiny saving of investing
public bank are the inevitable part of the economy. Banks have
played a decisive role in the economic well being of the nations
throughout the world. Banks have been established with the simple
objective of keeping the surplus of the society and repaying it
whenever demanded. Through the objective are simple, banks
have grown beyond that and have become the indivisible and
inevitable part of the economy.
In a Society, a section of people to keep for future use, while
others are in need of money either for meeting some contingency
or for making some investment. Banks play an important role by
acting as an intermediary between them. They are the chief
service providers in a country. Banks play a significant role in the
economic development by mobilizing savings of the public and
diverting it into productive activities. They facilitate the production
of different capital and consumer goods and its distribution to the
customers through wholesalers and retailers. By providing
consumer loans, they also help the consumers to acquire costly
consumer durable goods. A part from the above, they render
many kinds of services to their customers.
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Now banks offer access to even a common man and their
activities extend to areas with untouched. A part from their
traditionally business oriented functions, they have now come out
to fulfill national responsibilities. Banks later to the needs of
agriculturists, industrialists, traders and to all the other sections of
the society.
MEANING AND DEFINITION
According to kinly “a bank is an establishment which makes
to individuals such advances of money as may be required can
safely mode and to which individuals entrust money when not
required by them for use.
Section 5(1)(b) of banking regulation Act,1949, defines
banking as “Accepting for the purpose of lending or investment, of
deposits of money from the public, repayable on demand or
otherwise and withdrawable by cheque, draft or otherwise”.
Section 5(b) of Banking Regulation Act, defines banking
company as “a company which transacts the business of banking
in India”.
According to Herbert L. hart “the banker is a person or
company carrying on the business of receiving money and
collecting draft for customers subject to the obligation of honoring
the cheques draw upon him from time to time by customers upto
the amount available on their customers account.
Jop Pager defines “a bank is an institution which takes
deposit current account issues and pays cheques and collects
cheques of the customers is not specially include”.
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A bank is an institution, which is primarily engaged in
receiving money from the public by way of deposits and provides
the same to those who are in need of it as loans and advances.
Hence, they are the buyers and sellers of money. Banks offer
interest on deposits and collect a higher rate on loans. The
difference in rates of interest represents the margin received by
them.
EVOLUTION OF BANKS
Banking industry is an old as authentic history. As an
industry, it has been in existence for very long period. Writers on
banking are divided in their opinion regarding the origin of the word
‘Bank’. According to some writers, the word ‘bank’ was derived
from the French word ‘Banque’, or from the Italian word ‘Banco’ or
from the Latin word ‘Bancus’, all of which means a bench upon
which the medieval European money lenders used to display their
coins. These benches were placed in the market place and they
used to transact their business of money lending and money
changing on benches. In short, the writers concluded that the
word ‘Bank’ was originated from the word ‘Bench’.
There is supposed to be another derivation of the word
‘Bank’. In the year 1171, the state of Venice was involved in a
serious financial difficulty. To tide over this difficulty the ‘Great
Council’ decided to take a forced loan from the citizen at an
interest of 5% per annum. The name for such a loan in Italian
languages is ‘monte’ which means a ‘joint stock fund’ or a
‘common fund’. At this period, the Germans were the masters of a
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greater part of Italy. Hence the German equivalent term ‘Bank
became popular to mean ‘joint stock fund’. The German version
was Italianised into ‘Banco’ Frenchised into ‘Banque’ and, finally,
anglicized into ‘Bank’. Hence it is evident from this etimology that
the word ‘Bank’ denotes a practice of collecting a common fund
from the public.
Gradually several banks were established in different parts of
Italy with the specific intention of collecting joint stock fund or
common fund. The Bank of Milan, the Bank of Florence, the Bank
of St. George at Genoa etcf. were some of them.
HISTORY OF BANKING IN INDIA
The First Bank in India, through conservative was
established in 1786. From 1786 till today the journey of Indian
Banking system can be segregated into three distinct stages.
They are mentioned below.
Early stage from 1786 to 1969 of Indian banks.
Nationalization of Indian Banks upto 1991 prior to India Banking
sector reforms.
New stage of Indian Banking system with the adverty of Indian
Financial and Banking sector reforms after 1991.
Stage-I
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During the first phase the growth was very slow and Banks also
experienced periodic failures between 1913 and 1948.
Reserve Bank of India came in 1935, under the Act of reserve
Bank of India, 1934.
Stage - II
Government took major steps in Indian Banking sector reforms
after independence. In 1955, it nationalized … Imperial Bank of
India; the General Bank of India was set up in the year 1987. Next
came, “Bank of Hindustan” and “Bengal Bank”. The East India
company established “Bank of Bengal” (1809), “Bank of Bombay”
(1840) and “Bank of Madras” (1843) as independent units and
called it as presidency Banks. These three Banks were
amalgamated in 1920 and imperial Bank of India was established
which started as private with extensive Banking facilities. On a
large scale especially in rural and semi-urban areas.
Seven Banks forming subsidiary of State Bank of India was
nationalized in 1960. On 19th July, 1969 major process of
nationalization was carried out and 14 major commercial Banks in
the country was nationalized (Central Bank of India, Indian
Overseas Bank, Bank of Baroda, Bank of Maharastra, Dena Bank,
Union Bank, Punjab National, Allahabad Bank, Syndicate Bank,
United Bank of India, Canara Bank, UCO Bank, Indian bank, Bank
of India).
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Second phase of nationalization was carried out in 1980 with
six more banks. (Andhra Bank, Punjab and Sindh Bank, Vijaya
Bank, Corporation Bank, New Bank of India, Oriental Bank of
Commerce).
Stage III
This stage has introduced many more products and facilities
in the Banking sector with its reforms measure in 1991, under the
chairmanship of M.Narasimham. A committee was set up in his
name, which worked for the liberalization of banking practices.
The country is now flooded with Foreign Banks and their
ATM stations with phone Banking and Net Banking. The entire
system became more convenient and swift.
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STRUCTURE OF THE ORGANIZED SECTOR IN INDIA
Scheduled Banks of India
Scheduled Commercial Banks
Scheduled Urban Co-operative Banks
Scheduled State Co-operative Banks
Public Sector Banks
Private Sector Banks
Foreign Banks
Regional Rural Banks
Nationalized Banks
State Bank of India and
associate Banks
Old Private Banks
New Private Banks
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INTRODUCTION
The importance of bank in the modern economy cannot be
neglected because they perform certain economic functions. A
banking institution is an indispensable part of the modern society.
They collect the savings of the people in the form of deposits and
lend the same of those who stand in need of money. In addition of
these a modern Bank performs a lot of other functions. These
functions are considerable utility to its customers and community in
general.
The organized Banking structure of India consists of
commercial Banks, (scheduled and non scheduled), foreign banks,
Rural Banks, and Co-operative Banks. They are all engaged in
accepting deposits and lending money to the different segment of
our country. The commercial and foreign banks with their
concentrated resources and net work of branches over industrial
commercial centers of the country. They provide credit mainly to
business and commercial establishments. The co-operative banks
on the other hand, have been providing banking facilities on widely
extended bases to the organized agriculture and cottage and small
scale industries of Indian economy.
In most of the developing countries of Asia including India
Co-operative credit and banking sector is the backbone of the co-
operative movement. In our country, co-operative sector has a
well knit structure covering almost all the villages and majority of
the towns and cities and may of the economic commercial and
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banking activities. Co-operation was started in India means for
raising funds and providing financial assistance to each other.
The joint family system, the grama saba etc. are different
system prevailed in India where people works together for there
betterment. Co-operative philosophy aims at equal distribution of
income and wealth by elimination conflicting interest between
employee and employers, producers and avoiding middlemen. In
a democratic sector, the tasks of government are to supplement
peoples efforts to mobilizing and make available the scarce
resources for securing economic equality and development. For
this co-operative especially co-operative credit institution have a
significant hole to play.
The co-operative bank has a history of almost 100 years.
The co-operative movement originative in the west, but the
importance that such bank have assumed in India is rarely paralled
any where else in the world. Their role in rural financing continues
to be important even today and their business in the urban area
also has increased phenomenally in receipt year mainly due to the
sharp increase in the number of primary co-operative bank.
These chapter deals with the profit of co-operative
movement and co-operative credit institutions in general and in
service co-operative banks.
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CO-OPERATIVE MOVEMENT IN WORLD
England is the considered is the homeland of co-operative
consumer movement. The industrial revolution and its results gave
birth to the origin of co-operative movement.
Great Britain is the birth place of Robert Owen who was the
father of co-operative movement. Dr. William king and Christian
socialist also contributed much for the development of co-operative
movement in Britain. Germany is considered the cradle of credit
co-operative in the world. The conditions prevailed in Germany in
the middle of 19 century were pitiable and disheartening. Under
these conditions co-operative movement originated on Germany
from where it spread throughout the world.
CO-OPERATIVE MOVEMENT IN INDIA
Co-operative Movement was introduced in India as a
government sponsored movement. In India the socio economic
conditions were mainly responsible for making the co-operative
movement a government sponsored movement.
In the early stages of the movement India was subjected to
foreign invasions. The foreign invaders in the past never wanted to
disturb the structure of Indian economy. But British becoming the
supreme power had brought about virus reforms. They had made
their own laws to disturb the calm and self sufficient villages life.
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Tax collection was in kind and was related to the yield from
the farms. There was no bearing on the field from the farms.
There was no bearing on the field. Even if the crop was lost, the
farmer has to pay the tax. The farmer has to depend entirely upon
the monsoon. Lack of transport facility forced the farmer to sell
their products in the farms in the harvesting season itself. On a
very low price. The outcome of the large industrial units of British
destroyed the Indian industries. During this time the village money
lenders had a free play. They charged abnormal rates of interest.
At this situations some relief were taken by the government. By
passing the deccan agriculture relief Act of 1879, the agricultural
loans Act of 1884 and the land improvement loan Act of 1885.
These aims to provide agricultural loans to the farmers directly
from the government. Now the government was deeply through
the co-operative movement.
CO-OPERATIVE MOVEMENT IN KERALA
The Kerala State was formed in the year 1956. At this time
two different laws were in existence, Travancore, Cochin Co-
operative Society Act and Madras Co-operative Societies Act. It
was in 1969, the Kerala government passed the first co-operative
Societies Act 1969 come into force on 15 May 1969.
The co-operative societies in Keralaare divided into two
groups. They are:-
1. Agricultural societies.
2. Non-agricultural societies.
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Agricultural societies are again divided into two types.
Agricultural credit societies and agricultural non credit societies.
Non agricultural societies may be non agricultural credit societies
and non agricultural non credit societies.
TYPES OF CO-OPERATIVE SOCIETIES IN KERALA
After the introduction of Kerala Co-operative societies Act
1969, co-operation became a provisional subject. Co-operative
forms of organization have entered into all the societies of
economy like Banking, marketing, Education, Hospital,
Transportation etc. The co-operative Banking structure in Kerala
State consists of agricultural credit societies. Initially the co-
operative banking in Kerala concentrated mainly in agricultural
sector. But now it is extended to activities of non-agricultural credit
sector also.
Agriculture Non-Agriculture
AgriculturalCredit Societies
AgriculturalNon Credit Societies
Non Agricultural Credit Societies
Non Agricultural Non Credit Societies
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EVOLUTION OF CO-OPERATIVE BANKING
Germany was the birth place of co-operative credit societies.
Mrs.Wraiffeisen and Heer Schulze were the pioneer of co-
operative banking in germany. According to them, co-operative
credit was the only way to eliminate the problems of poor people.
In schulze societies, membership was given to artisan’s industrial
workers and middle class people living in cities and town, liability
of the members was limited. It gave discounted bill.
In Raiffeisen societies, membership was given to rural
farmers and cultivators. Liability of members is unlimited. It gave
three types of loans, current account and property transfers.
ROLE OF CO-OPERATIVE INSTITUTION
Co-operative Banks play an important role in the
development of Kerala. It gives priority to the agricultural sector,
which is the backbone of our economy. It also gives loans to
subsidiary occupations like poultry, dairy, sericulture, pisciculture
etc. it also finances non-agricultural sector.
The co-operative Banks provide short term, medium terms
and long term loans. Co-operative credit structure in Kerala is as
follows.
Three tier pattern with state co-operative Bank at the upper
level, District Co-operative Bank at the District level and primary
co-operative Bank at the village level.
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Co-operative Bank can be defined as “A mutual society
formed, composed and governed by working people themselves
for encouraging regular savings and granting small loans on easy
terms of interest and repayment.
The statutory definition of co-operative Bank as section 2 of
the RBI ct as follows. A co-operative Bank means, a sate co-
operative Bank, Central co-operative Bank and primary Co-
operative Bank. “Primary co-operative Bank means a co-operative
society other than a primary agricultural credit society”.
ORIGIN AND GROWTH OF SERVICE CO-OPERATIVE
BANK IN INDIA
Co-operative credit societies aim at providing loan at a
reasonable rate of interest and getting bank loans. The primary
credit societies at villages level are known as Service Co-operative
Societies or Banks. The members of these societies are farmers
and their management is also related in them.
Since the inception of the service co-operative Bank in India,
the number of co-operative banks showed a steady growth rate.
Till 1949, the number of service co-operative banks in the country
were 815. During the period of 1948-60, it increased from 815 to
1242. In 1997 the number of co-operative Banks were 1350.
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FUNCTIONS OF SERVICE CO-OPERATIVE BANKS
The important functions of service co-operative banks are
listed as below:
1. To provide short term loans and medium term loans to
farmers.
2. To arrange for the supply of farm requirements such as
seeds, fertilizers etc.
3. To maintain and supply the farm equipments like tractors,
sprayers etc.
4. To mobile funds from members and non-members.
5. To arrange for the marketing.
HIERARCHIAL SET UP OF CO-OPERATIVE
DEPARTMENT
Co-operative Department
Registrar
District level Circle level
Additional Registrar
Joint Registrar (General)
Joint Registrar
(Audit)
Assistant Registrar
Inspectors or Auditors
Assistant Registrar (General)
Additional Registrar (General)
Additional Registrar
(Audit)
Additional Registrar (Credit)
Additional Registrar
(Consumer)
Additional Registrar
(ICDPAssistant Registrar
(Audit)
State level
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Registrar:
Registrar is the top level officer in the co-operative
department appointed by the government to the whole state of
Kerala. In Kerala Registrar of Co-operative department is
appointed by the government of Kerala as per section 3 of the
Kerala co-operative Societies Act 1969.
Additional Registrar:
Five additional Registrars appointed by the government in
the state leel under the control of Registrar. One Additional
Registrar for general administration of the co-operative department
and another one for audit using of co-operative department. Also
one additional Registrar each appointed to credit section,
consumer section and ICDP section of co-operative department
Joint Registrar:
Under the additional Registrars – 2 joint Registr ars
appointed for every district. In every district one joint Registrar for
general administration and another one for audit. Joint Registrar is
the district level officer.
Assistant Registrar:
Two assistant registrars are appointed in each circle.
Assistant Registrars (General) and Assistant Registrar (Audit)
working in every circle for and on behalf of the Registrar of co-
operative Societies. Assistant Registrar have the power to control
all the societies in the circle. Assistant Registrar is the taluk level
officer.
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Inspectors / Auditors:
Inspectors and auditors are working in the circle under the
control of Assistant Registrar. Inspectors conducting inspection
work and auditors conducting audit work in the co-operative
Societies / Bank for an on behalf of the Assistant Registrar.
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INTRODUCTION
The Chengala Service Co-operative bank is one of the
leading financial institute in our district. Chengala Service Co-
operative Bank Ltd. No.S.66 was registered service Co-operative
Bank on 3.2.1992 and started its working. It is situated in Cherkala
of Kasaragod District. It has two branches: 1) 4th Mile Branch 2)
Cherkala Evening Branch. Now the bank has completed 18 years
of its service.
AREA OF OPERATION
The Chengala Service Co-operative Bank operate in
Chengala Village of Chengala Panchayath.It was situated in
Cherkala.
MEMBERSHIP
Any person who is a resident of area with in the Chengala
villages and who has attained the age of majority is eligible for
admission as a member. He should take atleast one A class share
to admitted as a member.
The membership which was 3938 in 2003-04 rose to 8492 in
2009-2010. The given table shows the membership of Chengala
Service Co-operative Bank Ltd for the last seven years period from
2003-2004 to 2009-2010.
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Membership of CSCB Ltd. From 2003 to 2010.
YEARSNO. OF
MEMBERS
2003-04 3938
2004-05 4834
2005-06 5112
2006-07 6248
2007-08 7138
2008-09 7963
2009-10 8492
SHARE CAPITAL
The total authorized share capital bank of the Rs.1 crore
consisting A, B and C shares.
The ‘B’ class share issued only to state government, state
co-operative bank and district co-operative bank.
As per the bylaws of the Chengala Service Co-operative
bank the ‘C’ class member has only the right to take the loan or
pledge of tangible securities such as gold, silver etc.
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BOARD OF DIRECTORS
Subject to such resolution as the General Body may from
time to time pass the execute the management of the affairs of the
Bank shall vest in Board of Directors. The Board of directors
consists of 9 members. In which one person should belong to
SC/ST and one person should be a women.
The elected members of the Board of Directors shall hold the
office for 5 years. An elected director can be removed from office
by 2/3 votes of those present in the general body meeting. The
board of directors should be elected from among the general body
member in accordance with the rules from order Kerala co-
operative Societies Act 21 of 1969.
All the elected members of the board of directors shall
vacate their office on the expiry of 5 years. If any casual vacancy
arises among the elected directors, the vacancy will be filled up as
per the procedure laid down in rule. The members of the board of
directors shall be elected in advance, so as to enable the new
board of directors to take up the administration of the board of
directors to take up the administration of the board as and when
the term expires.
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Following are the present Board of Directors.
President : Balakrishna Vorkudlu
Vice President : Moideen Kunhi C.H.
Directors : Abdulla C.B.
Mohammed B.
James C.V.
Gopalan K.
Abdul Nazar
Vinod Kumar
Madhavi P.
ORGANISATIONAL STRUCTURE
The Chengala Service Co-operative Bank Ltd. Was
organized by promoting committee consist of members. Over all
control of the bank is visited in the hands of board of directors. In
order to meet the banking transaction, chief accountant, manager,
auditor, accountant, clerk and attender are working.
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Chart No. 4.1 Chart showing organization structure of
Chengala Co-operative Bank Ltd.
Secretary
Assistant Secretary
Chief Accountant
Manager
Internal auditor
Accountant
Senior Clerk
Prior Clerk
Attender
Peon
Watchman
The following are the current office bearer
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1 Secretary P. Giridharan
2. Assistant Secretary A. Anil Kumar
3. Internal Auditor/Branch
Manager
P. Savitha
4. Internal Auditor/Branch
Manager
M. Bhavani
5. Head Clerk/Accountant K.
Aravindakshan
6. Senior Clerk K.Balakrishnan
7. Junior Clerk K. Kanakam
8. Junior Clerk p. Radhamani
9. Junior Clerk P.Sathi
10. Junior Clerk P. Rashmi
11. Junior Clerk T. Pushpa
12. Junior Clerk K. Narayanan
13. Peon Anil Kumar
V.K.V.
14. Peon Mamatha C.H.
15. Attender Haseena C.
16. Salesman Manikantan L.
OBJECTIVES
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Following are the main objectives of Chengala Service Co -
Operative Bank Ltd.
1. To grant short term or medium term loans to the members of
bank.
2. To encourage among member of spirit of economy self
sufficiency and Co- Operation and to formulate implement shares
for the same.
3. To collect and distribute improved varieties of seeds,
manures and fertilizers, improved agriculture implements etc. for
agricultural purpose and necessary materials for home industries
and house hold use.
4. To sell out industrial products trough marketing societies or
other wise to the advantage of the member.
5. To formulate schemes of agricultural production for member
and implement them.
6. To give necessary help and Co- Operation to the member for
growing new types of seeds.
7. To arrange safe deposited locker facilities to member of the
bank.
8. To receive deposit from individuals, charitable institution,
trusts and than public institutions.
9. To receive grant on assistance from various government
agencies like NABARD.
10. To invest surplus funds of the Bank in Govt. promissory
notes, shares loan bonds of such Co- Operative Societies which
are guaranteed by the Government and other institution as
permitted under sec 15 of the Act.
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11. To collect funds require3d for carrying out these objects from
individuals and institutions.
12. To undertake collections and discounting of bills, cheques
and Drafts issued by reputed Banks and firms in favour of the
members and customers of the bank.
13. To receive various types of deposits from members general
public, charitable institutions/trusts and other public institutions.
14. To create funds for promotion of education of members
children subject to the limits prescribed by the board with the
approval of the Registrar of Co-operative Societies.
WORKINGS
During 2008- 2009 number of number of members in the Co-
Operative bank was 7963 and as at 2009- 2010 it is 8492.Each
year there is an increase in number of member and during the time
there was an increase in 529 member ship .
The share capital of the bank in 2003 -2004 is 39.38 lakes
and in 2009 -2010 was 84.92 lakes and increased
Highlights of Chengala service Co-Operative Bank Ltd
between Year 2003-2010
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Year No. of member Share Capital
2003-2004 3938 39.38
2004-2005 4834 48.34
2005-2006 5112 51.12
2006-2007 6248 62.48
2007-2008 7138 71.38
2008-2009 7963 79.63
2009-2010 8492 84.92
DEPOSITS
Various kinds of deposits are received from both members
and non-members. The deposit include savings Bank deposit,
Fixed deposit, Day deposit and other deposits. The interest rate is
varying on accounts and to the extent of the deposit.
LOANS
The Chengala Service Co-operative Bank issued various
loans to its members. On the basis of period the loans are
classified into short term and long term loans.
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INTRODUCTION
Deposit accounts are one of important source of banks fund.
In order to attract customers the banks offer attraction facilities to
different types deposit account holders. In order top avoid
unhealthy competition among different banks the Reserve Bank of
India has been given the power to fixed deposit interest rates. The
Reserve Bank for this purpose issues directive from time to time.
VARIOUS KINDS OF DEPOSITS ON CSC BANK LTD.
The Board of Directors may receive deposits from both
members and non members at any time and shall frame suitable
subsidiary rules in accordance with the directives issued by the
Registrar from time to time for handling each deposits and
implement the same with the approval of the joint Registrar of the
district.
In receiving deposits preference shall be given to members.
Mainly a kind of deposits may be accepted in the Bank. They are:
1. Fixed Deposit
2. Saving Bank Deposit
3. Current Account
4. Recurring Deposit
5. Day Deposit.
1. Fixed Deposit
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Fixed Deposits are accepted by banks for a fixed period.
They are normally, repayable after the expiry of the fixed period.
Fixed Deposits are made by people who expects a fixed and
steady income at regular intervals.
2. Saving Bank Deposit
Saving Bank Deposit meant for people of average means. It
aims at promoting the habit of savings among ordinary people.
Bank pay moderate rate of interest on saving Deposit.
3. Current Account
Current Deposit Account is intended for business people. No
restrictions are imposed on the operations of this account. Current
Deposit is repayable on demand and withdrawal by means of
cheques. People can invest money even for one day. No in
payable of current deposit.
4. Recurring Deposit
In recurring or cumulative deposit, a fixed amount is
deposited at regular intervals for an agreed period. At the end of
the agreed period, the deposit is repaid with interest accrued there
on.
5. Day Deposit
In day deposit the deposit amount collected by the collector
from the depositor daily for a period of one year. In this deposit
amount are collected daily Rs 10 each. The total annual amount
collected Rs 3650/- and interest is provided at the rate of 2.5%.
32
Table 5.1
The following table and graph depicts the position of the loan