Project on Banking

BBA-VISEM

BANKING PROJECT (DELHI STATE CO-OPERATIVE BANK)

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DECLARATION

This is to certify that I have completed a Project titled " To Study the Financial Instruments of

BANKING.” under the guidance of MS. SURINDER KAUR WALIA in the partial fulfilment

of the requirement for the award of Bachelors of Business Administration of Bharti Vidyapeeth

University, New Delhi. Special Thanks to MR. AMARJEET R. DESHMUKH. This is an

original piece of work & I have not submitted it earlier elsewhere.

NEHA(pks)

PREFACE

It is designed in such a way that student can grasp maximum knowledge and can get practical

exposure to the corporate world in minimum possible time. Business schools of today realize the

importance of practical knowledge over the theoretical base. The research report is necessary as

it provides an opportunity to the researcher in understanding the industry with special emphasis

on the development of skills in analyzing and interpreting practical problems through the

application of management theories and techniques. It is a new platform of learning through

practical experience.

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ACKNOWLEDGEMENT

This project is a result of dedicated effort. It gives us immense pleasure to prepare this project

report on “BANK .”. We would like to thank our project guide To Study the Financial

Instruments of BANKING.” under the guidance of MS. SURINDER KAUR WALIA , for

consultative help and constructive suggestions on the matter on this project. Special Thanks to

MR. AMARJEET R. DESHMUKH. We would like to thanks our Bank manager and

colleagues who have helped us in making this project a successful one.

Name of the student

Neha (pks)

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CONTENTS

CHAPTER PAGE NO.

Chapter 1: Introduction to Company 05-381.1 About the Company 05-341.2 Environment Scanning 35-361.3 Porter five forces model of competition 36-371.4 My work areas in bank 38

Chapter 2: Research Methodology 39-562.1 Statement of problem 392.2 objectives and scope of study 39-532.3 Managerial usefulnesss of study 532.4 Types of research and research design 53-552.5 Data collection methods 552.6 Limitation of study 56

Chapter 3: Conceptual discussion 57-693.1 Review of literature 57-60 3.2 Current issue 61-643.3 History and development 64-673.4 New development of company 68-69

Chapter 4: Data analysis 70-814.1 Methods and Techniques of data analysis 70-784.2 Primary data analysis 79-814.3 Secondary data analysis 82-85

Chapter 5: Findings 86

Chapter 6: Conclusions and Suggestions 87

ANNEXURE 88-89

BIBLIOGRAPHY 90

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CHAPTER 1

INTRODUCTION TO THE COMPANY

1.1 About the Company

Cooperative movement in India owes its origin to agriculture and allied sectors. Cooperative

movement which originated in the west, but the importance that such banks have assumed in

India, is rarely paralleled anywhere else in the world. In rural areas the supply of credit

particularly institutional credit was inadequate and farmers for their financial requirements

depend upon money lenders which in return charge a very high rate of interest. Agriculturists had

no securities to offer for the guarantee of loan so they remain uncared by the banking world.

They had no credit because they were poor and they remain poor because they had no credit.

Then the need was felt

for an agency which could attract funds from towns and employ them safely and profitably in

villages. Then cooperative banks came in existence to provide short term and long term credit at

reasonable rates of interest. The beginning of cooperative banking in India dates back to about

1904 when official efforts were initiated to create a new institution based on the principles of

cooperation which were considered to be suitable for solving the problems related to Indian

agricultural conditions. The role of cooperative banks in rural financing continues to be important

today and their role has also increases in urban areas in the recent years. When national economic

planning started in independent India then cooperative banks were given an important role. With

the advent of planning process, cooperatives became an integral part of the five year plans.

Cooperative Banks are Government sponsored, government supported and government

subsidized financial agency in India. They get financial and other help from Reserve Bank of

India, National Bank for

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Agriculture and Rural Development (NABARD), Central Government and State Governments.

Cooperative Banks are subject to control and 348 audit under the Cooperative Societies Act of

the state and by the Reserve Bank of India (RBI) under the Banking Regulation Act. RBI and the

State Government lay down the rules for the investment and loans policies of cooperative banks.

Cooperative banks have played a pivotal role in the development of short term and long term

rural

credit structure in India. Cooperative banking structure in India comprises Urban Cooperative

Banks and Rural Cooperative credit institutions. Urban Cooperative Banks consist of a single tier

i.e. primary cooperative bank referred as Urban Cooperative Banks (UCB). The rural cooperative

credit structure has been divided into short term and long term. Short term cooperative credit

institutions have a three tier structure consisting of a large number of Primary Agricultural Credit

Societies (PACS) at the grass root level, Central Cooperative Banks (CCB) at the district level

and State Cooperative Banks (SCB) at the state level. The smaller states and Union Territories

have a two tier structure i.e. SCB directly meeting the needs of PACS. The long term rural

cooperative structure has two tiers i.e. State Cooperative Agriculture and Rural Development

Banks (SCARDB) at the state level and Primary Cooperative Agriculture and Rural Development

Banks (PCARDB) at the Tehsil level. Some states have a unitary structure with the SCARDB

operating through their own branches.

GROWTH AND REGULATORY FRAMEWORK OF COOPERATIVE BANKS IN INDIA

Cooperative banks as component of Indian Banking System originated in India with the

enactment of Cooperative Credit Societies Act of 1904. Cooperative movement has been initiated

and supported by the Government but in other countries cooperative movement grew on the

strength of peoples own will. During 107 years of the existence, Cooperative movement passed

through various stages. The movement up to 1947 can be broadly divided into four stages. The

first stage covered the period of 1904-1912. In 1904, Cooperative Credit Societies Act was

passed and the passage of the Act was the first landmark in the Cooperative Movement in India.

It was a new experiment and people were full of enthusiasm for it. The Act of 1904 provided for

the organization of primary credit societies and stress was on the promotion of agricultural credit

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only. The condition of societies however, could not said to be good. Loans were generally

marked by insufficiency and delay. Recoveries were far from satisfactory and loan system was

defective. The working of societies formed under the Act of 1904 showed a number of

deficiencies, viz., it did not give legal protection to cooperative societies for purposes other than

credit. In the second stage (1912-1919) a new Act was passed in 1912 to remove the deficiencies

of the previous Act. The important provisions of the Act were that the Act provided for the

registration of non credit societies also. The Act of 1912 gave a great stimulus to the cooperative

movement. There was a rapid expansion in the registration of cooperatives in the country, but

without any tangible results. Under 351the reforms of 1919, cooperation was made a provincial

transferred subject, in each state in the third stage (1919-1939). Some provinces enacted special

legislation to suit their local requirements. After cooperation became a transferred subject, the

movement made very rapid progress and all seemed to be going very well. Its success was,

however, more quantitative rather than qualitative in nature. The rapid growth of the movement

during 1919-1930 was characterized by Mr. RamdasPantulu as the period of unplanned

expansion. The world wide economic depression in 1929 gave a severe blow to the cooperative

movement in India which was still in infancy. As a result of slump in the market, prices of

agricultural commodities came down, overdues mounted up; liquidation of societies had to be

resorted to in a few cases. The creation of Reserve Bank of India in 1934, and setting up of rural

credit department in the bank gave a new life and vitality to the cooperative movement. The

provincial autonomy in 1937 further strengthened the cooperative movement. The abnormal

conditions created by the World War II led to some far reaching developments in the cooperative

movement. As a result of high prices most of the over dues were cleared off. Thus during the

war, the societies gained in strength and vigour. An important landmark of fourth stage (1939-

1947) was the setting up of Cooperative Planning Committee, which drew up plans for the

development of cooperative movement in various spheres. The attainment of independence in

1947 and the consequent establishment of National Government in the country came in as a

fountain of inspiration for the movement. It was during the Five Year Plans that cooperative

credit was assigned to play significant role in the economic development of the rural areas. The

First Five Year Plan (1951-56) emphasized the need for expanding the cooperative credit system

so as to bring 50 per cent of the villages and 30 per cent of the rural population in the ambit of

primary societies with in ten years. The progress of cooperative movement in the First Plan was

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mixed. By 352 1955-56, 70 per cent of the villages of the country were covered by Primary

Agricultural Credit Societies against the target of covering 50 per cent of the villages. As against

the target of Rs. 100 crore to be disbursed as short term credit, fresh advances increased from

Rs.24.21 crore in 1951-52 to Rs. 49.62 crore in 1955-56. The short term loans outstanding

increased from Rs. 33.66 crore to Rs. 59.84 crore and the medium term loans advanced amounted

to Rs. 15 crore in 1955-56 as against the target of Rs. 25 crore. Second Five Year Plan (1956-61)

observed that “the building up of a co-operative sector as part of the scheme of planned

development is, one of the central aims of national policy”. The plan aimed that Credit is only the

beginning of co-operation. From credit, co-operation has to extend to a number of other activities

in the village, including cooperative farming. Short term loan advanced were Rs. 182.82 crore in

1960-61 against the target of Rs. 150 crore and medium term loan given was Rs. 19.93 crore in

1960-61 which was less than the target of Rs. 50 crore. In the Third Five Year Plan (1961-66) the

cooperatives were assigned a vital role in implementing the programmes of agricultural

production. There was shortfall in achievement of short term and medium term loans. With the

nationalization of the major 14 commercial banks in July, 1969 more or less the monopolistic

position held by the cooperatives in dispensation of agricultural credit came to an end. The loans

advanced increased from Rs. 203 crore in 1960-61 to Rs. 342 crore in 1965-66 as against the

target of Rs. 530 crore. The Fourth Five Year Plan (1969-1974) gave high priority to the re-

organization of cooperatives to make cooperative short-term and medium-term structure viable.

No increase in the number of societies was envisaged but an additional increase in membership

so as to cover about 60% of agricultural families was provided. As against the target of

disbursing short term and medium term loans of Rs. 750 crore, the PACS issued loans of Rs. 763

crore in 1973-74. 353 In the strategy of cooperative development in the Fifth Five Year Plan

(1974-79), structural reformation receives special attention. A major objective of credit policies

in the Fifth Five Year Plan was to ensure a substantial increase in the flow of institutional credit

to the small farmers, marginal farmers, tenants and share croppers. It has also been decided that

concessional finance provided by the Reserve Bank will also be available to the non- agriculturist

and agricultural labourers who are members of primary credit societies for purchase of milch

cattle and poultry farming activities. The Fifth Five Year Plan

took note of the high level of over-dues. The Sixth Five Year Plan (1979-85) document stated

that while all round progress has been made in the field of credit by cooperatives, the rate of

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growth of agricultural credit advanced by the cooperatives has lately slowed down. The National

Bank for Agriculture and Rural Development (NABARD) Act was passed in 1981 and

NABARD was set up to provide re-finance support to Cooperative Banks to enhance credit flow

to the agriculture and rural sector. The Seventh Five Year Plan (1985-1990) pointed out that

while there had been all round progress in credit, poor recovery of loans and high level of

overdues were matters of

concern. The Plan recommended the development of Primary Agricultural Credit Societies as

multiple viable units. The opening up of the economy in 1990, and the liberalized economic

policies followed by the government since then, led to increasing pressures for various

governments, state and central, to bring about changes that would provide cooperatives a level

playing field to compete with the private sector. The Eighth Five Year Plan (1992-97) laid

emphasis on building up the cooperative movement as a self-managed, self-regulated and self-

reliant institutional set-up, by giving it more autonomy and democratizing the movement. It also

spoke of enhancing the capability of cooperatives for improving economic activity and creating

employment opportunities for small farmers and training of cooperative functionaries in

professional management. Under the 354 Ninth Five Year Plan (1997-2002), the Government

adopted the Kisan Credit Card (KCC) Scheme formulated by NABARD which aims at provision

of adequate and timely credit support to the farmers for their cultivation needs including purchase

of inputs in a flexible and cost effective manner. The scheme was being implemented through the

district central cooperative banks and the primary agricultural cooperative banks. From the Ninth

Plan onwards, there has been no specific mention about cooperatives as a part of the Plan. A total

of 249.07 lacs KCCs had been issued till 30 June 2002. In the Tenth Five Year Plan (2002-07),

the recapitalization and revamping of the cooperative credit institutions is being considered.

Credit growth by the cooperatives to the agriculture sector has gradually picked up during the

course of the Tenth Five Year Plan. The number of loan accounts however, declined from 224.6

lacs in 2004–05 to 192.8 lacs in 2005–06. Continued emphasis will be placed on progressive

institutionalization for providing timely and adequate credit support to farmers with particular

focus on small / marginal farmers and weaker

sections of society to enable them to adopt modern technology and improved practices for increasing agriculture production and productivity. Eleventh Five Year Plan (2007-12) envisaged the

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revitalization of the co-operative credit structure in order to transform them into vibrant and

viable democratic financial institutions. It was, therefore, extremely important, that the

restructuring of co-operative credit now in progress are implemented speedily and rigorously.

(b)REGULATION AND CONTROL

The regulation and control of cooperative banking rests with the Reserve Bank of India (RBI)

and the State Government. The State Government controls it under the Cooperative Societies Act

through the Department of Cooperation. Department of Cooperation is headed by the Registrar,

Cooperative Societies. Registrar has been entrusted with the duties of promoting, sustaining as

well as guiding the Cooperative Societies in the state. Cooperative banks are registered 355 under

the Cooperative Societies Act of the states by the Registrar of Cooperative Societies and are

governed by the Acts and rules of the State Government. In terms of the Cooperative Societies

Act of the State, the Registrar of Cooperative Societies have jurisdiction over the incorporation,

registration, management, amalgamation, merger and liquidation. The RBI exercises a

promotional and regulatory control over cooperative banking under the Banking Laws

(Application to Cooperative Societies) Act, 1965; extending the provisions of RBI Act, 1934;

and Banking Regulation Act, 1949. The Banking Laws Act, 1965, in addition to the regulatory

powers of the RBI, has extended its statutory control to cooperative banks. The Act came into

force on March 1, 1966. It extends to State Cooperative Banks, Central Cooperative Banks and

PACSs. With the State Governments

committed to a policy of positive support to cooperative banks, it was felt that the impact of

cooperative credit institutions on the monetary and credit policy was going to become more and

more significant. Hence, the RBI felt that it was a regulatory necessity to bring the banking

institutions operating in the cooperative sector within the statutory control of RBI. After

prolonged deliberations on the need for RBI to have control over cooperative societies carrying

on banking business, the Banking Laws (Application to Cooperative Societies) Bill was passed

by the Parliament. It received the assent of the President in September 1965 and the Act came

into force from 1 March, 1966. With amendments in the Banking Regulation Act, certain

provisions of the Banking Regulation Act became applicable to cooperative banks carrying on

banking business. The Reserve Bank is now the regulator and supervisor of banking activities

carried on by cooperative societies. The Registrar of Cooperative Societies of the concerned state

continues to be the regulator and supervisor of cooperative institutions.

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DEPOSIT MOBILIZATION: Central Cooperative Banks in Delhi have been successful in

deposit mobilization. Deposits of Central Cooperative Banks in Punjab increased from Rs.

177243.32 lac in 1997-98 to Rs. 751261.51 lac in 2009-10 listing an exponential 357 growth rate

of 11.92 per cent during the period under study. The share of fixed deposits in total deposits

decreased from 56.94 per cent to 49.40 per cent and the share of savings deposits increased from

39.19 per cent in 1997-98 to 47.28 per cent in 2009-10. The share of current deposits remained

almost the same. Savings deposits recorded the highest exponential growth rate of 14.92 per cent

whereas fixed

deposits recorded the lowest exponential growth rate of 9.33 per cent. At the end of the year

2009-10, Central Cooperative Bank contributed maximum Rs. 91478.56 lac to the total deposits

(12.18 per cent of total deposits) and the contribution of Central Cooperative Bank to total

deposit was minimum Rs. 10770.26 lac (1.43 per cent). Coefficient of concentration ranged from

25 to 30 per cent. The data of coefficient of concentration shows that there was no concentration

of deposits in few districts. The degree of variation in the growth of deposits was highest for

Mansa Central Cooperative Bank (C.V. = 54.37) and the consistency in the growth of deposits

was highest in Jalandhar Central Cooperative Bank (C.V. = 34.04).

CREDIT DEPLOYMENT: The Central Cooperative Banks in Delhi have shown a

considerable success in the growth of advances. Advances of Central Cooperative Banks in

DELHI increased from Rs.232396.10 lac in 1997-98 to Rs. 1126892.49 lac in 2009-10 with an

exponential growth rate of 12.71 per cent. There is about five-fold increase in loans. The growth

rate of advances is more than the growth rate of deposits during the period under study. The share

of short-term advances increased from 61.17 per cent to 86.40 per cent during the study period.

The share of medium term advances decreased from 30.45 per cent to 7.95 per cent while the

share of long term advances decreased from 8.38 per cent to 5.65 per cent. The highest

exponential growth rate in loans deployment was recorded by Central Cooperative Bank,

whereas the lowest for Central Cooperative Bank. Sangrur Central Cooperative Bank had the

maximum average advances while Mansa Central 358 Cooperative Bank had the minimum

average advances. The variation in the growth of loans advanced was lowest in N.Shahr Central

Cooperative Bank (C.V =32.36) and the variation was highest in Fatehgarh Sahib Central

Cooperative Bank (C.V =62.93). The Coefficient of concentration of loans advanced of all the

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Central Cooperative Bank operating in Delhi ranges from 14 to 22 per cent during the period

under study. The coefficient of concentration shows that there is no concentration of loans

advanced in few districts.

VOLUME OF BUSINESSThe volume of business presents the total of deposits and advances.

The volume of business of Central Cooperative Banks operating in Delhi increased from Rs.

409639.40 lac in 1997-98 to Rs. 1878154.01 lac in 2009-10 and indicated exponential growth

rate of 12.39 per cent during the period covered under study. Fatehgarh Sahib Central

Cooperative Bank recorded the highest exponential growth rate, while Jalandhar Central

Cooperative Bank recorded the lowest exponential growth rate in volume of business. Average

volume of business was maximum in case of Jalandhar Central Cooperative Bank and the

minimum for Mansa Central Cooperative Bank. Throughout the period of study, Jalandhar

Central Cooperative Bank contributed maximum in total Volume of Business. Coefficient of

concentration of volume of business ranged from 16 to 22 per cent during the study period. The

data of coefficient of concentration shows that there is no concentration of Volume of Business

in few districts. The variations in the growth of volume of business was lowest in Jalandhar

Central Cooperative Bank (C.V =32.82), and was highest in Fatehgarh Sahib Central Cooperative

Bank (C.V =58.87).

WORKING FUNDS: The working funds of Central Cooperative Banks operating in Delhi

have increased from Rs. 277573.83 lac in 1997-98 to Rs. 1195956.11 lac in 2009-10 listing an

exponential growth rate of 12.84 per cent. Patiala Central Cooperative Bank recorded the highest

exponential growth rate 16.45 per cent and Ferozpur Central 359 Cooperative Bank registered the

lowest exponential growth rate of 9.96 per cent. The overall coefficient of concentration ranges

from 17 to 20 per cent and the data of coefficient of concentration show that there is no

concentration of working funds in few districts. The highest average working funds were

observed in the case of Jalandhar Central Cooperative Bank and the lowest in Faridkot Central

Cooperative Bank. The variation in the growth of working funds was lowest in Tarn Taran

Central Cooperative Bank (C.V =38.32) and was highest in Patiala Central Cooperative Bank

(C.V = 55.50) during the study

period.

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OWNED FUNDS: Owned funds of the bank represent share capital and reserve funds. Owned

funds are an indication of internal financial soundness of the organization. The amount of owned

funds increased from Rs. 20747.63 lac in 1997-98 to Rs. 107020.17 lacs in 2009-10 at an

exponential growth rate of 15.11 per cent. Central Cooperative Bank recorded the highest

exponential growth rate of 21.90 per cent while Ferozpur Central Cooperative Bank recorded the

lowest growth rate of 5.94 per cent. Average owned funds were found maximum in case of N.

Shahr Central Cooperative Bank whereas minimum for Mansa Central Cooperative Bank. The

variation in the growth of owned funds was lowest in Ferozepur Central Cooperative Bank (C.V

=22.32) and was highest in Amritsar Central Cooperative Bank (C.V =67.24) during the study

period. . The overall coefficient of concentration ranges from 22 per cent to 27 per cent during

the study period. The data of coefficient of concentration shows that there is no concentration of

owned funds in few districts.

MANPOWER: The effectiveness of an organization depends largely on the quality of the

manpower especially in service industry like banking. The number of staff members of Central

Cooperative Banks in Delhi decreased during the study period. There is decline in the number of

staff members in each Central Cooperative Bank. The exponential growth rate is negative for all

the Central Cooperative 360 Banks. At the end of March 2010 Jalandhar Central Cooperative

Bank has the maximum number of staff members, i.e., 444 (11.75 per cent of the total staff

members) and Muktsar Central Cooperative Bank has the lowest number of staff members. The

average staff members were highest in Jalandhar Central Cooperative Bank and were lowest in

Mansa Central Cooperative Bank during the period of study.

NON PERFORMING ASSETS (NPA) AS PERCENTAGE TO TOTAL ADVANCES: Average non performing assets as percentage to advances of all the Central Cooperative Banks in

Delhi is 6.53 per cent. The highest average percentage of NPA to total advances pertained to

Central Cooperative Bank that is, 15.75 per cent during the same period. The top rank in NPA as

percentage to total advances pertained to N.Shahr Central Cooperative Bank while Gurdaspur

Central Cooperative Bank appeared at the bottom.

RECOVERY AS PERCENTAGE TO DEMAND: The recovery performance of Central

Cooperative Banks in Delhi was quite satisfactory, as the percentage of recovery against demand

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ranged from 85 per cent to 90 per cent. Average recovery performance of all the Central

Cooperative Banks in Punjab during the study period was 87.37 per cent. The top rank in average

recovery performance was in case of Jalandhar Central Cooperative Bank and the lowest rank

was for Gurdaspur Central Cooperative Bank.

PROFITABILITY AND PRODUCTIVITY PERFORMANCE

(a) PROFITABILITY ANALYSIS(i) STRUCTURE OF INCOMEThe main sources of income of Central Cooperative Banks are interest and discount income,

commission, exchange and brokerage and other receipts. Interest and discount income accounted

for 98.45 per cent to 99.57 per cent of the total income, while non-interest income constituted a

very marginal portion. At the end of the study 361 period, Jalandhar Central Cooperative Bank

contributed the highest share in total income (10.85 per cent) and Mansa Central Cooperative

Bank had the lowest share in total income (2.12 per cent). Total income of all the Central

Cooperative Banks recorded an exponential growth rate of 8.65 per cent. The highest exponential

growth rate in

total income was observed in the case of Patiala Central Cooperative Bank (11.77 per cent) and

the lowest in Tarn Taran Central Cooperative Bank (4.49 per cent). Patiala Central Cooperative

Bank had the highest exponential growth rate in interest income (11.76 percent) and the

exponential growth rate was lowest for Tarn Taran Central Cooperative Bank (4.32 per cent). At

the end of the study period Jalandhar Central Cooperative Bank contributed maximum share in

interest income (10.87 per cent) while minimum share in interest income pertained to Mansa

Central Cooperative Bank (2.13per cent). Income from other receipts grew at an exponential

growth rate of 13.07 per cent during the period of study. Gurdaspur Central Cooperative Bank

had the highest share in other income (12.42 percent) whereas Mansa Central Cooperative Bank

had the lowest share

in other income (0.95 per cent).

(ii) STRUCTURE OF EXPENDITUREInterest paid on deposits and borrowings, manpower expenses, i.e., establishment cost and other

expenses constituted the three main Components of total expenditure of all the Central

Cooperative Banks in Delhi. Total expenditure of all the Central Cooperative Banks recorded an

exponential growth rate of 8.27 per cent. The highest exponential growth rate in total expenditure

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was for Patiala Central Cooperative Bank (10.94 per cent) and lowest for Tarn Taran Central

Cooperative Bank (4.63 per cent). At the end of March 2010, Jalandhar Central Cooperative

Bank had the highest share in total expenditure (11.18 per cent) and the lowest share pertained to

Muktsar Central Cooperative Bank (1.98 per cent). Interest paid contributed 63 per cent to 71 per

cent of the total expenditure of all 362 the Central Cooperative Banks in Punjab. At the end of

the study period, the contribution to interest paid was maximum for JalandharCentral

Cooperative Bank (10.83 percent) and minimum for Muktsar Central Cooperative Bank (2.12 per

cent). The exponential growth rate in interest expanded was 8.27 per cent over the study period.

Patiala Central Cooperative Bank had the highest exponential growth rate (12.40 per cent) and

lowest exponential growth rate pertained to Tarn Taran Central Cooperative Bank (3.23 per

cent). Establishment cost which includes cost of management, i.e., salaries, allowances, bonus to

staff, etc. contributed 21 per cent to 23 per cent to the total expenditure of all the Central

Cooperative Banks. At the end of the study period Jalandhar Central Cooperative Bank had

maximum share in establishment cost (10.93 per cent) while minimum share was observed in the

case of Muktsar Central Cooperative Bank (1.15per cent). Kapurthala Central Cooperative Bank

recorded the highest exponential growth rate (10.93 per cent) and the lowest was shown by

Muktsar Central Cooperative Bank (3.73 per cent).The third component of total expenditure is

other expenditure which includes stationery, printing, taxes, etc. The share of other expenses in

total expenses was 4 per cent to 7 per cent during the period of study. The highest percentage to

total other expenses pertained to Jalandhar Central Cooperative Bank (16.24 per cent) while the

lowest was shown by Mansa Central Cooperative Bank (2.05 per cent).

(iii) TREND IN NET PROFIT/LOSSESThe total profits of all the Central Cooperative Banks in Delhi exhibited an exponential decline of 2.75 per cent over the study period. At the end of the study period N.Shahr Central CooperativeBank contributed the most, i.e., Rs. 882.24 lac (40.07 per cent share in total net profit) followed

by Central Cooperative Bank withRs. 508.98 lac (23.12 per cent share in total net profit).Faridkot

Central Cooperative Bank and Mansa Central Cooperative Bank showed losses at the end of

study period. The highest exponential 363 growth rate in case of net profit was recorded by

Fatehgarh Sahib Central Cooperative Bank (13.58 per cent) followed by Patiala Central

Cooperative Bank with exponential growth rate of 11.89 per cent. The analysis of coefficient of

concentration brings out that at the end of study period there was concentration of net profit in

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few districts. At the end of study period, only two banks, viz. Jalandhar Central Cooperative

Bank and N. Shahr Central Cooperative Bank contributed about 63 per cent of the total profits of

all the Central Cooperative Banks.

(iv) PROFITABILITY RATIOSThe highest overall interest earned ratio and interest paid ratio pertained to Tarn Taran Central

Cooperative Bank, whereas the lowest interest earned ratio and interest paid ratio were observed

in the case of Mansa Central Cooperative Bank and Ludhiana Central Cooperative Bank

respectively. There is no clear cut trend in the ratio of non interest income to working funds. The

special feature of non interest income to working fund ratio was its very small magnitude during

the period of study. The ratio was highest for Central Cooperative Bank and lowest for N.Shahr

Central Cooperative Bank. The movement of establishment cost to working fund ratio showed no

set trend. At the end of March 2010, Amritsar Central Cooperative Bank recorded the highest

ratio followed by Faridkot Central Cooperative Bank. However, the lowest ratio was recorded by

Muktsar

Central Cooperative Bank at the end of study period.Moga Central Cooperative Bank had the

highest average other expense to working fund ratio, while Kapurthala Central Cooperative Bank

had the lowest ratio. Total income ratio and total expense ratio did not indicate any clear cut

trend in their movement throughout the period of study. The highest total income ratio was

observed in the case of Kapurthala Central Cooperative Bank, whereas the lowest in Mansa

Central Cooperative Bank. At the end of March 2010, Faridkot Central Cooperative Bank

recorded the highest total expense ratio while the 364 lowest in Muktsar Central Cooperative

Bank. The ratio between total spread to working fund of all the Central Cooperative Banks in

Punjab taken together during the study period showed no set trend. The average total spread to

working fund ratio was the highest for Ludhiana Central Cooperative Bank, while Mansa Central

Cooperative Bank recorded the lowest ratio. The ratio between total burden to working fund was

the highest for Amritsar Central Cooperative Bank followed by Faridkot Central Cooperative

Bank, and the lowest was recorded by Muktsar Central Cooperative Bank. The behaviour of net

profit/losses to working funds ratio indicated no set trend. The ratio was positive for all the

Central Cooperative Banks in Punjab during the years 1998-99 and 2000-01 to 2005-06, but at

the state level the ratio was positive throughout the period of study. The highest ratio was

recorded by N.Shahr Central Cooperative Bank, while Amritsar Central Cooperative Bank

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showed the lowest ratio. All the Central Cooperative Banks in Punjab except Amritsar Central

Cooperative Bank showed a positive average ratio between net profit/losses to working fund

during the study period.

Key work of Delhi state co operative bank

Basic or primary functions of a bank are very important in nature. These functions provide t base of the whole operation of the bank. The basic functions of a bank are as under

1. Accepting deposits:

Accepting deposits is the most important function of all commercial banks. Deposit is the basis of commercial banks' activities. In order to attract The general public to deposit their surplus money in the bank, the bank offers to deposit money in any of the following accounts:

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Current or Demand Account:

Current or demand account is one where the amount can be withdrawn at any time by the depositor. This type of account is operated by businessmen. Withdrawals are freely allowed. No interest is paid. In fact, there are service charges. The account holders can get the benefit of overdraft facility.

Saving Account:

Saving account is suitable for non-trading and small income earners. Saving account helps in mobilization of the saving of low income people. The commercial banks pay interest on this type cf deposits. This type of deposits encourages saving habit among the public. The rate of interest is low. At present it is about 4% p.a. Withdrawals of deposits are allowed subject to certain restrictions. This account is suitable to salary and wage earners. This account can be opened in single name or in joint names.

Fixed Deposit Account or Term Deposit Account:

Fixed deposit account is the account in which amounts are deposited for a certain fixed period of time. The deposits cannot be withdrawn before the expiry of this fixed period. The longer the period of deposits, the higher is the rate of profit.Lump sum amount is deposited at one time for a specific period. Higher rate of interest is paid, which varies with the period of deposit. Withdrawals are not allowed before the expiry of the period. Those who have surplus funds go for fixed deposit.

 Foreign Currency Account:

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Foreign currency account is opened only in authorized branches. A foreign currency account may be a foreign currency saving account or foreign currency term deposit account. Foreign currency account in Pakistan can be opened in USA Dollar, UK Pound, German Mark, Japanese Yen, etc. This account is exempted from all taxes and deduction. No income tax or Zakat is deducted from this account.

Advancing Loans:

The second important function of commercial bank is advancing loans to the individuals, businessmen and government bodies. The loans are granted out of deposited money. Generally, a commercial bank grants short-term loans.

Banks grant loan in any of the following forms:

Overdraft: Overdraft is a short-term loan granted by commercial banks to their account holders. Under this type of loan, the customers are allowed to draw more than what they have in their current account up to a certain limit. The excess amount overdrawn is called overdraft. This type of advances are given to current account holders. No separate account is maintained. All entries are made in the current account. A certain amount is sanctioned as overdraft which can be withdrawn within a certain period of time say three months or so. Interest is charged on actual

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amount withdrawn. An overdraft facility is granted against a collateral security. It is sanctioned to businessman and firms.

3.2.2. Cash Credit:

Cash credit is a very common form of loan granted by commercial banks to businessmen and industrial units against the security of goods. The loan granted under this head is credited to current account opened in the name of borrower. The borrower can withdraw money through cheques according to his requirement. The interest is charged on the amount actually withdrawn by the borrower. The client is allowed cash credit upto a specific limit fixed in advance. It can be given to current account holders as well as to others who do not have an account with bank. Separate cash credit account is maintained. Interest is charged on the amount withdrawn in excess of limit. The cash credit is given against the security of tangible assets and / or guarantees. The advance is given for a longer period and a larger amount of loan is sanctioned than that of overdraft.

 Loans:

Commercial banks grant loans for short and medium-term to individuals and traders against the security of movable and immovable property. The amount of loan is credited to the borrower's account. Interest is charged on the entire loan sanctioned.It is normally for short term say a period ofone year or medium term say a period of five years. Now-a-days, banks do lend money for long term. Repayment of money can be in the form of installments spread over a period of time or in a lumpsum amount. Interest is charged on the actual amount sanctioned, whether withdrawn or not. The rate of interest may be slightly lower than what is charged on overdrafts and cash credits. Loans are normally secured against tangible assets of the company.

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Discounting bills of exchange:

Banks provide short term lean to the businessmen by discounting bills of exchange. Discounting the bills of exchange means the arrangements of making payments before maturity of bills of exchange. The payment made by the bank to the holder of bill of exchange before its maturity is the amount of loan. The discount charged is the earning of the bank.

The bank can advance money by discounting or by purchasing bills of exchange both domestic and foreign bills. The bank pays the bill amount to the drawer or the beneficiary of the bill by deducting usual discount charges. On maturity, the bill is presented to the drawee or acceptor of the bill and the amount is collected.

Secondary Functions Of Bank:The secondary functions of bank can be classified under the following heads.

1. Agency functions

2. General utility functions

3. Miscellaneous functions

1. Agency Functions:The banks render important services as agent on behalf of their customers in return for a small commission. When banks act as agent, law of agency applies. The agency functions or services of bank are as follows:

1. Collection of Cheques:

Commercial banks collect the cheques, bills of exchange, etc, on behalf of their customers. Banks collect local and outstation cheques and bills of exchange through clearing house facilities provided by the central bank,The bank collects the money of the cheques through clearing section of its customers. The bank also collects money of the bills of exchange

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1.2. Collection of Income:

The commercial banks collect dividends, interest on investment, pension and rent of property due to the customers. When any income is collected by the bank, a credit voucher is sent to the customer for information.

1.3. Payment of expenses:

The banks make payment of insurance premiums, rent, trade subscription, school fee and other obligation of the customers. When any expense is paid by the bank, a debit voucher is sent to the customer for information.

1.4. Dealer in securities:

The banks carry out purchase and sale of securities on behalf of their customers. Banks do it well because they are aware of the market conditions.

1.5. Acts as trustee:

The banks act as trustee to manage trust property as per instructions of property owners. Banks are required to follow the terms and conditions of trust deed.

1.6. Acts as an agent:

Commercial bank sometimes acts as an agent on behalf of its customers at home or abroad in dealing with other banks or financial institutions.

1.7. Obeys standing instructions:

Sometimes, customer may order his bank to do something on his behalf regarding the conduct of his account. This written order is called standing instruction. The bank being the agent of its customer obeys the standing instructions.

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1.8. Acts as tax consultant:

Commercial bank acts as tax consultant to its client. The commercial bank prepares general sales tax return, income tax return, etc. Tiles the same with tax authorities.

Periodic Payments

On standing instructions of the client, the bank makes periodic payments in respect of electricity bills, rent, etc.

Portfolio Management

The banks also undertakes to purchase and sell the shares and debentures on behalf of the clients and accordingly debits or credits the account. This facility is called portfolio management.

Periodic Collections

The bank collects salary, pension, dividend and such other periodic collections on behalf of the client.

Other Agency Functions

They act as trustees, executors, advisers and administrators on behalf of its clients. They act as representatives of clients to deal with other banks and institutions.

2. General Utility Functions:Bank performs different utility functions for their customers. When bank performs utility functions, it does not act as an agent of the customers. The general utility functions are as follows:

2.1. Provides lockers facilities:

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Commercial banks provide lockers facilities to its customers for safe custody of Jewelery, shares, securities and other valuables. This has minimized the risk of losing due to theft.

2.2. Issue of traveler's cheque:

Bank issues traveler's cheques to the customers for traveling in and outside the country.

Banks issue drafts for transferring money from one place to another. It also issues letter of credit, especially in case of, import trade. It also issues travellers' cheques.

2.3. Foreign exchange:

Commercial banks deal in foreign exchange. This enables the individuals and businessmen to obtain foreign currency in exchange of their home currency. For dealing in foreign exchange, commercial banks have to obtain permission from the central bank.

Transfer of money:

Banks provide facilities for the transfer of money to any place within and outside the country. The funds are transferred by means of draft, telephonic transfer, electronic transfer etc.

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 Finances foreign trade:

A Bank finances foreign trade by accepting foreign bills of exchange. Bank also issues letter of credit on behalf of its customers to facilitate foreign trade. According to Sir John Poget: "The issuing of letters of credit is the basic function of a bank."

2.6. Trade information:

Banks collect and provide trade information and tender advice to its customers about financial mafters. Issues credit cards: Banks issue credit cards to their trustworthy and valued customers. This facilitates the customers to pay for their necessities of life.

2.7. Modaraba Company:

The Banks act as Modaraba and leasing companies under the provisions of Modaraba Companies Ordinance, 1980.

2.8. Purchase PTCs:

Banks underwrite or purchase Participation Term Certificate (PTCs), Term Finance Certificates (TFCs) and Modaraba Certificates. This helps the companies to raise their capital.

2.9. Financial standing:

Banks answer reference letters regarding the financial standing and business reputation of customers. Banks provide this information with great care and utmost secrecy.

3. Miscellaneous Functions:Banks perform the following miscellaneous functions:

1. Collection of utility bills:

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Commercial banks provide facilities for the collection of utility bills from general public on behalf of government bodies. This facilitates the public to pay utility bills in time.

2. Zakat Collection:

Commercial banks collect Zakat from their account holders and deposit the same into Central Zakat Fund, according to Zakat and Usher ordinance - 1980.

3. Hajj services:

The commercial banks provide free Hajj sendees to the intending pilgrims. Banks receive Hajj applications. Banks also facilitate to form Hajj groups. Banks make necessary arrangements for the training of intending pilgrims,

4. Qarz-e-Hasna:

The commercial banks provide Qarz-e-Hasna to deserving patients for medical treatment and to students for higher studies within the country and abroad. The Qarz-e-Hasna is refund Ale in easy installments,

5. Electronic banking and E-banking:

Electronic banking is offering improved services to the customers as fellows:

· ATM Cards

· Credit Cards

· Electronic transfer of money

Potential Of Insurance Industry In India :

· Only ONE out of FIVE insurable population in India have insurance coverage.

· In terms of Insurance premium per capita and premium per GDP, India ranks as one of the lowest

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in the world.

· Life insurance premium constitutes only 9% of domestic savings.

· By 2010, hundred million elderly look to planning for old age pension and annuities.

· More than 325 million labor forces have no social security.

With an annual growth rate of 15-20% and the largest number of life insurance policies in force,

the potential of the Indian insurance industry is huge. Total value of the Indian insurance market

(2004-05) is estimated at Rs. 450 billion (US$10 billion). According to government sources, the

insurance and banking services' contribution to the country's gross domestic product (GDP) is 7%

out of which the gross premium collection forms a significant part. The funds available with the

state-owned Life Insurance Corporation for investments are 8% of GDP.

Till date, only 20% of the total insurable population of India is covered under various life

insurance schemes, the penetration rates of health and other non-life insurances in India is also

well below the international level. These facts indicate the of immense growth potential of the

insurance sector.

The year 1999 saw a revolution in the Indian insurance sector, as major structural changes took

place with the ending of government monopoly and the passage of the Insurance Regulatory and

Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing

foreign players to enter the market with some limits on direct foreign ownership.

Though, the existing rule says that a foreign partner can hold 26% equity in an insurance

company, a proposal to increase this limit to 49% is pending with the government. Since opening

up of the insurance sector in 1999, foreign investments of Rs. 8.7 billion have poured into the

Indian market and 21 private companies have been granted licenses.

Innovative products, smart marketing, and aggressive distribution have enabled fledgling private

insurance companies to sign up Indian customers faster than anyone expected. Indians, who had

always seen life insurance as a tax saving device, are now suddenly turning to the private sector

and snapping up the new innovative products on offer.

The life insurance industry in India grew by an impressive 36%, with premium income from new

business at Rs. 253.43 billion during the fiscal year 2004-2005, braving stiff competition from

private insurers. Though the total volume of LIC's business increased in the last fiscal year

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(2004-2005) compared to the previous one, its market share came down from 87.04 to 78.07%.

The 14 private insurers increased their market share from about 13% to about 22% in a year's

time. The figures for the first two months of the fiscal year 2005-06 also speak of the growing

share of the private insurers. The share of LIC for this period has further come down to 75

percent, while the private players have grabbed over 24 percent.

There are presently 12 general insurance companies with four public sector companies and eight

private insurers. According to estimates, private insurance companies collectively have a 10%

share of the non-life insurance market.

The Insurance Regulatory and Development Authority Reforms in the Insurance sector were

initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its

incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing

regulations and registering the private sector insurance companies.

The other decisions taken simultaneously to provide the supporting systems to the insurance

sector and in particular the life insurance companies were the launch of the IRDA’s online

service for issue and renewal of licenses to agents

Protection Plans

a. Life guard

b. Investshield life

c. Investshield cash

d. Investshield gold

e. Premier life

f. Life Time & Life Time II

g. SecurePlus

h. CashPlus

i. CashBak

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Child Plans

a. SmartKid regular premium

b. SmartKid unit-linked regular premium

c. SmartKid unit-linked regular premium II

New Product will be launched soon.

Retirement Plans

a. Golden Years

b. InvestShield Pension

c. LifeTime Pension II

d. LifeLink Pension II

e. SecurePlus Pension

f. Forever Life

g. General Insurance

h. TERM PLANS

Term insurance protects your family's future and ensures that they lead their lives comfortably

without any financial worries, even in your absence. By offering these plans at competitive rates,

term insurance provides an opportunity to enjoy insurance cover at affordable prices.

COMPITERS OF D.S.C.D IN LIFE INSURANCE

Name of organization Market share

ICICI PRUDENTIAL 72%

LIC 88%

BAJAJ ALLIANZ 2.8%

HDFC SLIC 3.2%

TATA AIG 1.3%

BIRLA SUN LIFE 2.3%

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SBI LIFE 2.2%

MAX NEW YORK 0.9%

1.

2. LIFE INSURANCE CORPORATION (LIC) The Life Insurance Corporation of India (LIC), a public sector enterprise, is the insurance

company in India, selling insurance products and related services.

LIC had a variety of insurance plans to cater to various categories of people and their diverse

needs. The company offered life insurance and group insurance. It also provided social security

schemes and pension schemes. Each of its business products offered a variety of different plans

to suit different customers and situations.

Investment in LIC was considered by a majority of its customers to be reliable and secure.

Housing loans were granted through its subsidiary and LIC sold its market savings and

investment products through its mutual fund subsidiary, LIC Mutual Fund Ltd. To serve its 140

million policyholders (2001 end), the insurance giant had 1.25 lakh employees and 6.51 lakh

agents across the country.

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The company, which was based in Mumbai, had seven zonal offices, 100 divisional offices, and

2,048 branch offices that spanned the country. LIC's penetration in rural areas was very high;

18% of its total business came from rural areas.

Since LIC enjoyed monopoly status for over four decades, it emerged as one of the key public

fundraisers in India. However, things began changing in the mid-1990s, when the Government of

India decided to privatize the insurance sector. The Malhotra committee's (formed to explore the

possibility/feasibility? of privatizing the Indian insurance industry) recommendations in 1994

brought about a sea change in the industry.LIC found itself in a difficult situation when the newly

formed Insurance Regulatory Development Authority (IRDA) issued licenses to many private

insurance companies (starting November 2000)

3. TATA AIGFounded by Jamsedji Tata in the 1860s, the Tata Group's early years were inspired by the spirit

of nationalism. The Tata Group pioneered several firsts in Indian industry: India's first private

sector steel mill, first private sector power utility, first luxury hotel chain and first international

airline, amongst others.

In more recent times, the Tata Group's pioneering spirit continues to be showcased by companies

like Tata Consultancy Services (TCS), today Asia's largest software and services company, and

Tata Motors, the first car maker in a developing country to design and produce a car from the

ground up.

The Tata Group is India's best-known industrial group with an estimated turnover of around US $

14.25 billion (equivalent to 2.6 % of India's GDP). Known for its adherence to business ethics, it

is India's most respected private business group. With more than 220,000 employees across 91

major companies, it is also India's largest employer in the private sector

THE AIG GROUP

Tata AIG Life Insurance Company Ltd. and Tata AIG General Insurance Company Ltd.

(collectively "Tata AIG") are joint venture companies, formed from the Tata Group and

American International Group, Inc. (AIG). Tata AIG combines the strength and integrity of the

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Tata Group with AIG's international expertise and financial strength. The Tata Group holds 74

per cent stake in the two insurance ventures while AIG holds the balance 26 per cent stake.

Tata AIG Life Insurance Company Ltd. provides insurance solutions to individuals and

corporates. Tata AIG Life Insurance Company was licensed to operate in India on February 12,

2001 and started operations on April 1, 2001. Tata AIG Life offers a broad array of life insurance

coverage to both individuals and groups, with various types of add-ons and options available on

basic life products to give consumers flexibility and choice.

American International Group, Inc. (AIG) is the world's leading international insurance and

financial services organization, with operations in approximately 130 countries and jurisdictions.

AIG member companies serve commercial, institutional and individual customers through the

most extensive worldwide property-casualty and life insurance networks of any insurer.

4. BIRLA SUN LIFE

Birla Sun Life Insurance is the coming together of the Aditya Birla group and Sun Life

Financialof Canada to enter the Indian insurance sector. The Aditya Birla Group, a multinational

conglomerate has over 75 business units in India and overseas with operations in Canada, USA,

UK, Thailand, Indonesia, Philippines, Malaysia and Egypt to name a few.

Birla Sun Life Insurance Company Limited is a joint venture between The Aditya Birla Group,

one of the largest business houses in India and Sun Life Financial Inc., a leading international

financial services organization. The local knowledge of the Aditya Birla Group, coupled with the

expertise of Sun Life Financial Inc., offers a formidable for your future.

The Aditya Birla Group has a turnover close to Rs. 33000 crores with a market capitalisation of

Rs. 30500 crores (as on 31st March 2005). It has over 72000 employees across all its units

worldwide. It is led by its Chairman - Mr. Kumar Mangalam Birla. Some of the key

organisations within the group are Hindalco, Grasim, Indian Rayon.

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Aditya Birla Group

The Aditya Birla Group is India's first truly multinational corporation. Global in vision, rooted in

Indian values, the Group is driven by a performance ethic pegged on value creation for its

multiple stakeholders.

A US$ 7.59 billion conglomerate, with a market capitalization of US$ 7 billion, it is anchored by

an extraordinary force of 72,000 employees belonging to over 20 different nationalities. Over 30

per cent of its revenues flow from its operations across the world. A premium conglomerate, the

Aditya Birla Group is a dominant player in all of the sectors in which it operates. Such as viscose

staple fibre, non-ferrous metals, cement, viscose filament yarn, branded apparel, carbon black,

chemicals, fertilisers, sponge iron, insulators and financial services. It is:

§ The world's largest single location palm oil producer

§ A globally competitive, fast-growing copper produce

§ The world's eighth largest producer of cement, and the largest in a single geography

§ India's premier branded garments player

§ Among India's most energy efficient private sector fertilizer plants

§ The no. 2 private sector insurance company, and the fourth largest asset management company in

India

Mission

To help our customers achieve financial prosperity and peace of mind.

Vision

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To distinguish Prudential as an admired multinational financial services leader, trusted partner,

and provider of innovative solutions for growing and protecting wealth.

Core Value

Our core values are the principles that guide us daily in

helping our customers achieve financial prosperity and

peace of mind. At all times, we strive to distinguish

Prudential as an admired multinational financial services

leader and trusted brand that is differentiated by top talent

and innovative solutions for all stages of life.

Worthy of Trust: We keep our promises and are committed to doing business the right way.

Customer Focused: We provide quality products and services that meet our customers' needs.

ROLES & RESPONSIBILITIES OF THE ORGANISATION

As a life insurance advisor with Delhi State Co operative bank, you would be the primary

connect between customers and Bank. Your main function would be to solicit life insurance

business on behalf of the Company. At the same time, you need to gain trust of the prospects and

advise them suitably, keeping their insurance needs in mind. As an advisor you would be

required to play the unique role, whereby, you would be trusted by the customer as well as the

Insurer.

Ø You would be required to interact with individuals and

families to.

Ø Understand their insurance protection and investment needs.

Ø Identify and recommend solutions that best fit their

requirements.

Ø Offer the prospect or existing customer a complete product

portfolio.

Ø Complete the formalities necessary to get the policy issued.

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1.2 Environment Scanning

ENVIRONMENT SCANNING OF D.S.C.B (PEST)

Political Environment

Endorsing the fact that RBI plays a vital role in proceeding of Delhi State cooperative bank and

Foreign and penetrating rules to the whole Indian banking sector. Hence, the RBI's 1919

monetary policy control system accrued the efficiency, competitiveness and productivity between

the banking sectors. However, with accordance to the Banana banking skims 2010 survey the

political interference accounted as the major risk for banking sector.

Ø Economic Environment

Economic fluctuations reflect fragile and lucrative effect to the banking sector financial system.

Considering the "India vision 2020" belayed by planning commission of Indian government in

order to ideate the banking sector future.

The commission seeks to raise the india's ranking from 11th to 4th in world development report

from GDP ratio perspective and transform in india from low income nation to upper middle

income nation. To implement the vision, priorities and striving to increase the annual GDP

growth from 8.5% to 9 % in next 7 years and Indian vision seeks to mitigate the agriculture share

from 2.8% to 6% which could be prove to SBI term of investment in infrastructure, technology

and operation.

Ø Social Environment

According to 1950-2050 demographic studies India’s fruition rate is waiting from 5.91% to

2.76% today and is expected to decrease more to 1.8%. Furthermore, India’s demise rate is

mitigating from 22.5% 1950-55 to 8.5 % now and will reach lowest rate 7.9% in 2020-25. The

mentioned

statistics indicate

the

sign

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of longer income of customer to the state bank of india group and the transition of customer

target to the younger customers as india will be entitled as the youngest nation during 2010-2025.

Ø Technology Environment

The term information technology has remained a revitalize factor for the success of banking

sector operation . Thus, the foreign banking sectorsector entered the indian market with asserting

the tecnological based approach while processing new technological innovation . Hence the SBI

is required to respond to such approach in order to rebound their market share , as the bank has

been staggering from loss of market share due to being

un responsiveness to technological changes.

1.3 PORTER’S 5 FORCES MODEL

Porter’s model is, applied microeconomic principles to

business strategy and analyzed the strategic

requirements of industrial sectors, not just specific

companies. The five forces are competitive factors which determine industry competition and

include: suppliers, rivalry within an industry, substitute products, customers or buyers, and new

entrants.

1. Threat of New Entrants. The average person can't come along and start up a bank, but there are services, such as internet bill payment, on which entrepreneurs can capitalize. Banks are fearful of being squeezed out of the payments business, because it is a good source of fee-based revenue. Another trend that poses a threat is companies offering other financial services. What would it take for an insurance company to start offering mortgage and loan services? Not much. Also, when analyzing a regional bank, remember that the possibility of a mega bank entering into the market poses a real threat.

2. Power of Suppliers. The suppliers of capital might not pose a big threat, but the threat of suppliers luring away human capital does. If a talented individual is working in a smaller regional bank, there is the chance that person will be enticed away by bigger banks, investment firms, etc.

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3. Power of Buyers. The individual doesn't pose much of a threat to the banking industry, but one major factor affecting the power of buyers is relatively high switching cost. If a person has a mortgage, car loan, credit card, checking account and mutual funds with one particular bank, it can be extremely tough for that person to switch to another bank. In an attempt to lure in customers, banks try to lower the price of switching, but many people would still rather stick with their current bank.

4. Availability of Substitutes. As you can probably imagine, there are plenty of substitutes in the banking industry. Banks offer a suite of services over and above taking deposits and lending money, but whether it is insurance, mutual funds or fixed income securities, chances are there is a non-banking financial services company that can offer similar services.

5. Competitive Rivalry. The banking industry is highly competitive. The financial services industry has been around for hundreds of years, and just about everyone who needs banking services already has them. Because of this, banks must attempt to lure clients away from competitor banks. They do this by offering lower financing, preferred rates and investment services.

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1.4 My workplace in bank

In my bank i was looking the query desk counter on which my main work was to deal and solve

the query of customer who doesn’t know where to go and on which counter for particular work. I

used to suggest them on which counter they need to go. I was also doing financial transaction like

, NEFT , RTGS, Transer of cheques etc. I was also dealing in cash counter , if any customer

mainly in our bank old age customer come for get his pension so there on large number of

customer used to come to me for cash withdrawn. i was also providing them statement of them

accounts. And if any customer having his passbook so i updated them , I was also helped in bank

operation work .So I learned so many things about banking and finance

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CHAPTER 2

RESEARCH METHODOLOGY

2.1 Statement of problem

The top 4 challenges facing banks and financial institutions

1. Not making enough money. Despite all of the headlines about banking profitability, banks and financial institutions still are not making enough return on investment, or the return on equity, that shareholders require.

2. Consumer expectations. These days it’s all about the customer experience, and many banks are feeling pressure because they are not delivering the level of service that consumers are demanding, especially in regards to technology.

3. Increasing competition from financial technology companies. Financial technology (FinTech) companies are usually start-up companies based on using software to provide financial services. The increasing popularity of FinTech companies is disrupting the way traditional banking has been done. This creates a big challenge for traditional banks because they are not able to adjust quickly to the changes – not just in technology, but also in operations, culture, and other facets of the industry.

4. Regulatory pressure. Regulatory requirements continue to increase, and banks need to spend a large part of their discretionary budget on being compliant, and on building systems and processes to keep up with the escalating requirements.

These challenges continue to escalate, so traditional banks need to constantly evaluate and improve their operations in order to keep up with the fast pace of change in the banking and financial industry today.

2.2 objectives and scope of study

To stave off the threat from alternative financial services providers and retain their place as consumers' trusted providers of choice, banks must learn from the very non-bank competitors that seek to disinter mediate them.

While some of these non-bank competitors cater to customer segments not served by traditional banks — with payday lending and check cashing services, for instance — many target banks' existing customers. And while some undoubtedly are flashes in the pan and others potential partners, many pose a very real threat to banks.

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The competitor most likely to instill fear in banks today is San Jose, Calif.-based PayPal. HP's (Palo Alto, Calif.) chief technologist for financial services, Ross Feldman, calls PayPal "the poster child of new technology," adding, "They are the No. 1 scary emerging player in the eyes of bankers." Noting that PayPal's capabilities continue to evolve, Nicole Sturgill, research director for CEB TowerGroup (Arlington, Va.), says the payments company is "a massive competitor" for banks.

· Bank of America Executive Places Importance on Risk Management as New Banking Technologies Emerge

· The Pursuit of New Revenue Generators: How Banks Can Monetize New Digital Technologies

· 6 Steps for Building the Next-Gen Bank IT Workforce

For bankers, the key is not only to determine if alternative financial services providers such as PayPal are friends or foes, but to study what these companies do well (and not so well) and apply that knowledge to raise the level of service provided by their own institutions. Think of the quarterback who watches hours of video of the opposing team's defense — it's critical that the quarterback study the defense's strengths and exploit its weaknesses to make the big plays.

Similarly, for banks to beat non-bank competitors, they need to exploit their opponents' strengths and weaknesses. Here are five key plays for banks that intend to win:

1. Rethink the Branch ModelEven though most non-bank competitors — sans Walmart and a few others — eschew brick and mortar for online and mobile delivery channels, banks can advantageously use branches if they rethink the branch model, according to Bob Meara, a senior analyst with Boston-based Celent. As banks continue to migrate customer transactions to less-costly self-service channels, they should evolve their branch networks into an efficient and effective sales channel simultaneously, he explains.

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5 WINNING PLAYS FOR BANKS

1. Rethink the branch model.2. Watch payments closely.3. Mine data to improve customer.4. Keep it 'simple.'5. Get over regulations.

ATMs present a similar opportunity, Meara adds. "Walmart won't have its own ATM fleet anytime soon, since it's an expensive channel," he says. "Banks have an opportunity to leverage ATMs beyond just updating them for Americans With Disability Act (ADA) requirements."The RHB Banking Group, the fourth-largest financial services firm in Malaysia, recently launched Easy, a branch network that comprises mini-branches as well as kiosks located in supermarkets, light rail stations and post offices that cost 85 percent to 90 percent less than ordinary branches. RHB designed the branches to attract Malaysia's mass market, an underserved market that other banks in the country deem unprofitable. "With Easy, RHB turned branch economics on its ear and massively increased its footprint," says Meara.

[Are You Making It Easier or Harder for Customers to Do Business With You?   ]Another bank successfully using branches is London-based Metro Bank, the U.K.'s first new high-street bank in more than 100 years. According to reports, customers line up outside when new branches open. The bank markets its "unparalleled levels of service and convenience," including non-traditional branch hours and the ability to open an account and receive a debit card in a single visit. The bank opened four "stores" in 2010 and projects 40 by 2014 and 200 by 2020.

RHB's Easy and Metro Bank have changed branch economics, says Meara. In contrast, he questions JPMorgan Chase's strategy of building 5,000-square-foot branches in the southeastern U.S. "How can those branches be a good financial decision?" he asks.

While physical branches have a place in their physical communities, banks also can leverage bricks and mortar to create virtual communities, says TowerGroup'sSturgill. Post a Facebook page or encourage branch managers to tweet information not only about financial products but happenings in the community, she advises. "By leveraging social media, the branch can serve as a point of reference for the local community." As an example, the PNC Virtual Wallet has won "rabid customer fans" by creating a virtual community to share information, Sturgill says.

2. Watch Payments CloselyMany non-bank competitors are focused on the payments space, explains BITS president Paul Smocer. For BITS, the technology division of the Financial Services Roundtable, payments is a

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likely "game-changer," and disintermediation of banks in the payments stream remains a concern, Smocer says. Payments is not as well established as other banking infrastructures, he notes, but it's still questionable whether a non-bank competitor can successfully create a new, widely adopted payments infrastructure.

No matter what payments technology non-bank competitors unleash, however, banks still have a trump card: Their strong and long-standing relationships with their customers, says Smocer. HP's Feldman adds, "Trust is very important, and customers are most comfortable with banks due to security, stability and history. Banks are good at moving money and need to leverage that expertise."

3. Mine Data to Improve Customer Service

Banks have access to a ton of customer data to shape new products and services, notes Feldman. "Because banks have scale with millions of customers, they are able to move trends quickly," he says. "Emerging upstarts take more time to move markets."

Non-bank competitors, however, have a very real opportunity to steal away customers disenfranchised with banks or those customers just looking for a different financial experience. "Players such as Amazon and Google have the ability to bring technology to market quickly and leverage their extensive customer bases," Feldman warns.

TowerGroup'sSturgill argues that banks have lost trust due to customer service issues. One way to repair trust, she suggests, is to improve customer service.

4. Keep it 'Simple'A payments competitor that should be on banks' radar for its innovative business model is Simple, which promises a full-service banking experience using a smartphone, according to David Albertazzi, senior analyst with Boston-based Aite Group. A quick visit to Simple.com imparts a very easy-to-understand message: Replace your bank. Simple provides the customer interface and mobile technology, and Bancorp Bank, a $3 billion asset bank headquartered in Wilmington, Del., processes and holds the FDIC-insured accounts.

In the physical world, Simple's business model is akin to a one-stop financial products store that gives consumers access to products from many banks, similar to a department store carrying shoes and clothing from many designers. Simple serves as the storefront and provides the consumer service, and Bancorp (and likely other banks as well) supplies the financial products,

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according to TowerGroup'sSturgill. Not yet launched, Simple is available by invitation only and has a wait list numbering about 200,000, she says.

Movenbank, another new entrant, headquartered in New York and incorporated in Delaware, is a mobile and web-based-only bank. But unlike Simple, it follows the model of direct banks such as ING Direct, explains Sturgill. Movenbank, expected to open its virtual doors late in 2012, is also invitation-only and touts, "We're building a better banking experience, and we want you along for the ride."

5. Get Over RegulationsOf course, non-bank competitors have enjoyed a less-onerous regulatory burden than banks. Banks, meanwhile, must contend with what Martin Cole, president and CEO of Ohio- based Andover Bank ($330 million in assets), called "cost discrimination against banks" in testimony before the U.S. House Financial Institutions and Consumer Credit Subcommittee in April. To make his point, Cole cited the example that banks pay for examinations under the Consumer Financial Protection Bureau (CFPB) while the Federal Reserve pays those fees for non-banks.

Although a definite headwind, regulations can spur bank innovation, believes HP's Feldman. "I don't think regulations will make banks a secondary player," he says. "Banks are good at leveraging the right technology partners to meet regulatory and security challenges." Since regulations cut into profit margins, however, banks will be forced to be creative, he predicts.

BITS is looking at the intersection of regulation and innovation, according to the organization's Smocer, who says BITS tries to educate consumers that although non-bank players may appear attractive, the difference between technology firms and banks is that banks have built-in consumer protections. "Banks have the right controls and risk mitigation in place before they roll out a new channel or product, and we want customers to understand that," he says.

Yes, banks may feel the pressure from non-bank competitors. But these competitors can teach banks a few things about customer service, employing emerging technology and building communities. If you can't beat them, join them

With Monday as the deadline for applications for niche banking licence, several are queuing to apply. Airtel, Oxigen, ItzCash, MobiKwik   and FINO PayTech   and private sector lenders ICICI Bank and Kotak Mahindra Bank, among others, have evinced interest to apply or partner for one. However, concerns around increased competition and profitability   remain.

The Reserve Bank of India (RBI) had released the final guidelines for payment banks   in

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November last year, allowing telecom companies, retail chains, and corporate houses to apply. Even government-owned entities such as India Post.

Non-resident individuals (NRIs) have also been allowed to apply for the niche banking licence, provided they plan to return to India. The central bank has allowed interested parties to form an alliance with a lender for setting up a payment bank.

Considering payment banks are not allowed to lend, the concern on profitability is key. The major source of revenue would be from fees and income from treasury operations. As a result, it is unlikely they will be able to offer above a four per cent interest rate on savings bank accounts, similar to what is offered by most existing lenders. Therefore, attracting deposits might not be easy.

However, players believe the ease and convenience offered to customers could help them tide over the similarity in interest rates offered by other lenders.

In the final guidelines, the regulator has expanded the scope of services of these players, providing for additional revenue streams. For instance, they can now provide third-party products such as mutual funds and insurance. Banks have also been allowed to function as a business correspondent (BC) of another bank and do international remittance.

Despite this, financial viability is a pressing issue. “We will have to focus on technology and volume. This business is that of high-volume and low individual value and, therefore, one will have to achieve cost efficiency and economy of scale in order to be profitable,” said Dipak Gupta, joint managing director, Kotak Mahindra Bank.

Airtel   M Commerce Services, a wholly-owned subsidiary of BhartiAirtel, is applying for a licence and Kotak Mahindra Bank will acquire 19.9 per cent stake in it.

AmanBhargava, director (financial services advisory) at Grant Thornton India, said the focus for every player will have to be leveraging on technology to control cost for breaking even faster.

Experts believe payment banks might take at least three years for break-even. RBI’s idea behind having these niche banks is to deepen financial inclusion. As a result, payment banks need to have at least 25 per cent of physical access points, including BCs, in rural centres.

“Initially, players will have to incur higher costs in setting up the infrastructure in rural areas and this will require large investments. Though one can tie up with some existing players like retailers for cash-out, the majority of investments needs to be done by the banks,” said Sunil Kulkarni, deputy managing director, Oxigen.  However, since the area of operations will not be limited to the hinterland applicants see an opportunity in tapping even the urban unbanked

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population.

“Even after having 25 per cent in rural areas, there is still a significant opportunity in the urban areas,” added Kulkarni.

Another challenge is from the large number of potential customers already covered under the Jan DhanYojana. However, those applying for a licence are trying to see a silver lining in the cloud.

“People in urban areas also have more than two accounts and the same can happen here, too. Individuals who have already opened an account under Jan Dhan can keep that for direct benefits transfer and the other account for personal use. It is a possibility, as a lot will depend on the services and the convenience that payment banks might be able to offer,” said Rishi Gupta, chief operating officer and executive director at FINO PayTech, which has also applied for a licence.

Gupta explains another initial challenge is in brand building and educating of consumers. Since niche bank operations will be different from the existing lenders, acceptance by consumers might be another hurdle.

Payment banks can accept deposits up to Rs 1 lakh and can offer current and savings account deposits. They can also issue debit cards and internet banking.

Both cash-in and cash-out services are allowed through various channels such as branches, automated teller machines and BCs. Cash-in could be made through mobile banking and cash-out via point-of-sale terminals. Payment banks have been allowed to serve as BCs for other lenders as well.

However, payment banks are barred from taking deposits from NRIs.

In-bound remittances into accounts maintained by residents with a payment bank   will be treated as deposits.

The minimum capital requirement for setting up a payment bank has been pegged at Rs 100 crore.

The final deadline for  applications was earlier January 16, now revised to February 2.

NEED FOR FINANCIAL INCLUSIONAccording to the NSSO 59th Round Survey results

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• 51.4% of farmer households are financially excluded from both formal and informal sources

• Of the total farmer households, only 27% access formal sources of credit; one-third of this group also borrowed from non-formal sources

• Overall, 73% of farmer households have no access to formal sources of credit

PAYMENT BANKS’ SCOPE OF ACTIVITIES

Do’s

* Has to use the word ‘Payments Bank’ in its name to differentiate from other banks

* Accept demand deposits, i.e., current deposits, and savings bank deposits from individuals, small businesses and other entities

* To hold a maximum balance of Rs 1 lakh per individual customer

* Will be allowed to set up branches, ATMs, business correspondents

* Allowed to issue debit cards also offer internet banking

* Can accept a large pool of money to be remitted but at the end of the day the balance should not exceed Rs 1 lakh

* Can accept remittances to be sent to or receive remittances from multiple banks

* Permitted to handle cross-border remittance transactions in the nature of personal payments / remittances on the current account

* Allowed to distribute mutual fund products, insurance products and pension products

* Bank can also undertake utility bill payments

Don’ts

* No NRI deposits should be accepted

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* Cannot issue credit cards

* Not allowed to set up subsidiaries to undertake non-banking financial services activities

* Other financial and non-financial services activities of the promoters should not be mingled with the working of payment banks

OBJECTIVES OF BANKS

1. SOCIAL WELFARE: It was the need of the hour to direct the funds for the needy and required sector of the Indian economy. Sector such as agriculture small and village industries were in need of funds for their expansion and further economic development.

2. Controlling private monopolies: prior to nationalization many banks were controlled by private business houses and corporate families. It was necessary to check these monopolies in order to ensure a smooth supply of credit to socially desirable sections.

3. Expansion of banking: In a large country like india the numbers of banks existing those days were certainly inadequate .It was necessary to spread banking across the country.It could be done through expanding banking network in the un banked areas.

4. Reducing regional imbalance : In a country like india where we have a urban rural divide; it was necessary for banks to go in the rural areas where the banking facilities were not available.In order to reduce this regional imbalance nationalization was justified.

5. Priority sector lending: In a country like india where we have a urban rural divide, it was necessary for banks to go in the rural areas where the banking facilities were not available .In order to reduce this regional imbalance nationalization was justified.

5. Priority sector lending: In India , the agriculture sector and its allied activites were the largest contributor to the national income. Thus these were labeled as the priority sector .But unfortunately they were deprived of their due share in the credit.Nationalisatgion was urgently needed for catering funds to them.

6. Developing banking habits: In India more than 70% population used to stay in rural areas.It was necessary to develop the banking habit among such a large population.

VISION & MISSION STATEMENT

CORPORATE VISION OF THE BANK

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We envision to emerge as a strong vibrant Bank through synchronization of human, financial and technological resources.

THE MISSION STATEMENT OF THE BANK

To put in place the effective Risk Management and Internal Control System.

To adopt and operationalise high – level technology standards.

To strive to achieve excellence in Customer Service.

To achieve the highest standards of transparency and accountability in the conduct of banking business.

To adopt professional approach in effectively managing financial as well as nonfinancial risks.

To maximize profitability and profits of the Bank with due compliance of prudential guidelines.

To maximize competitive risk adjusted return on capital, through planned reduction in the average cost of funds, increased yield on advances and investments besides reduction in cost of operations.

YOUR RIGHTS AS A CUSTOMER OF OUR BANK

As our valued customer, you enjoy the following rights from our Branches network through out the country:

1. TIME SCHEDULE

1. Receipt of Cash 10-15 Minutes

2. Encashment of Cheques 10-15 Minutes

3. Issue of Cheque-Book/DDs/Pos 15-20 Minutes

4. Opening of an Account 15-20 Minutes

5. Payment of DDs/Pos 10-20 Minutes

6. Payment/Renewal of FDRs 20-25 Minutes

7. Retirement of Bills 20-30 Minutes

8. Updation of Pass Book/ Issue of Account Statement 05-10 Minutes

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9. Statement of Account to be On every 5th issued regularly of the Month.

10. Collection of Cheques Local : 2-4 days

Outstation: 10-14 days

2. COMMON PRACTICES FOLLOWED BY OUR BRANCHES FOR YOUR CONVENIENCE

1. Display of business hours.

2. Attend to all customers present in the banking hall at the close of business hours and rendering of courteous service.

3. Provide separate ‘Enquiry’ or ‘May I Help You’ at large Branches.

4. Offer nomination facility to all deposit accounts (i.e. account opened in individual capacity) and all safe deposit hirers (i.e. individual hirers).

5. Display interest rates for various deposit schemes from time to time.

6. Notify change in interest rates on advances.

7. Display of Service Charges on issue of Demand Drafts, Pay Orders, Duplicate Drafts, Cancellation of Drafts, Collection of Documents, etc.

8. Display Time – Norms for various Banking Transactions.

9. Pay interest for delayed credit of outstation cheques, as advised by Reserve Bank of India (RBI) from time to time.

10. Display of availability of Locker facility at the Branch.

11. Display of Tax Collection facility at the Branch.

12. Accord immediate credit in respect of outstation and local chequesupto a specified limit subject to certain conditions, as advised by RBI from time to time.

13. Provide complaint/suggestion box in the Branch premises.

14. Display address of Zonal & Head Offices, as well as Nodal Officer dealing with customer grievances/complaints.

15. Name and address of the concerned banking ombudsman.

16. Corruption free service to all customers.

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17. We have extended business hours in our fully computerized branches in Delhi

CHEQUE COLLECTION SERVICE

1. Policy on collection of cheques payable locally

The customer’s account shall be credited in respect of local cheques latest on third working day from the date of acceptance of cheques at the counters / dropped in drop boxes within the time indicated for local clearing on the same day (each branch would specify its own cut-off time depending upon its working hours and distance from the clearing house) and on fourth working day if deposited beyond the timings indicated on drop boxes / Notice Board.

2.OutstationCheques

(i) Time frame for affording customer’s Account

Cheques to be collected at major Metropolitan centers in 10 days and at other centers in 14 days.

(ii) Policy of compensation on Delayed collection

The bank will pay interest to its customers on delayed collection as applicable on saving bank deposit for the delayed period beyond the prescribed period i.e 10/14 days as the case may be . Such interest shall be paid without demand from the customers in all types of accounts.

Facility of Immediate credit of cheques sent for collection local and outstation.

The instant credit of outstation / local cheques are permitted only up to Rs. 5000/-, subject to usual safeguards and Bank is satisfied about the proper conduct of the account of customer.

The Bank will extend the facility to all individual depositors without making a distinction about their status i.e Saving Bank , Current or Cash credit.

If cheques / instrument for which immediate credit has been afforded is returned unpaid bank shall recover interest at clean overdraft rate for the period bank remained out of funds and recover prescribed cheque returned charges subject to the following:

1) No interest will be charged to the customer for the period between the date of credit of the outstation cheque lodged and its return.

2) Bank will charge interest from the date of return of the cheque till reimbursement of money to the bank.

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3) Where the cheque is credited to a Saving Bank Account ,no interest will be payable on the amount so credited if the cheque is returned..

4) If the proceeds are credited in overdraft / Loan account , interest would be recovered at applicable rate on the amount of returned cheque / instrument .

CREDIT CARD / ATM CARD FACILITIES

Some of the special features of this card are as under. • Maximum Interest Free Credit period: Buy Now and Conveniently Pay Latter and get the Maximum Interest Free Period on your Gold and Silver card upto 52 days and 50 days respectively. • Revolving Credit Facility: Pay Just 5% of your Credit Card bill and continue to use card, Manage expenses conveniently. • Free Insurance benefits: Get covered with Accident Insurance, Hospitalization Insurance and much more for free. • Powerful Rewards Programme: • Purchase Protection Any thing you buy is insured against damage or loss due to fire or theft. Get purchase protection uptoRs. 40000/- and Rs. 20000/- on your Gold and Silver Credit Card respectively. • Limited Lost Card Liability: • Global Acceptance The card is accepted at over 1,25,000 merchant establishment in India and Nepal and over 25 million MasterCard accepting establishments worldwide. No need to carry cash whenever your travel. • Balance Transfer: Transfer the outstanding balance of your other Bankcard to your Punjab & Sind Bank Credit Card and pay lower interest. • ATM facility: • Comprehensive Travel Benefits: • 24 Hour Customer Care Centre:

MARKETING & INSURANCE PRODUCTS

(i) Non Life Products: We are agent of M/s Bajaj Allianz General Insurance Company and sell all their non-life products through our network of branches across the country.

(ii) Life Products: Our bank has tie up arrangement of Life Insurance business with M/s Aviva Life Insurance Company India Pvt. Ltd. We are offering their following three products:

(a) Life Bonds

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(b) Easy Life Plus

(c) Pension Plus The Customers may consult our branches for more details

FAIR BANKING PRACTICES

We request you as our customers to please note the following duties to enable us to serve you better.

1. Ensure safe custody of cheque book and pass book.

2. Preferably use reverse carbon while writing a cheque.

3. Issue crossed/account payee cheques as far as possible.

4. Check the details of the cheque, namely, date, amount in words and figures, crossing, etc., before issuing it. As far as possible, issue cheques are rounding off the amount to nearest rupee.

5. Not to issue cheque without adequate balance, maintain minimum balance as specified by the Bank.

6. Send cheques and other financial instruments by Registered Post or by courier.

7. Bring pass book while withdrawing cash from Saving Bank account through withdrawal slip. Get pass book updated from time to time.

8. Use nomination facility in all deposits accounts & locker facility.

9.Note down account numbers, details of

10.FDR, locker numbers, etc., separately.

11. Inform loss of demand draft, fixed deposit receipt, cheque leave(s) /book, key of locker, etc., immediately to the Branch.

12. Avail standing instructions facility to repeat transactions.

13. Provide feedback on our service.

14. Pay interest, installments, locker rent and other dues on time.

15. Avail services such as ATM, EFT, etc., if offered by the branch.

16. Bring any deficiency in services to the notice of the Branch Manager.

17. Not to sign blank cheque(s). So also do not record your specimen signature either on pass book or on cheque book.

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18. Not to introduce any person, who is not personally known to you for the purpose of opening account.

19. Not to bribe any staff member, to avail corruption free service.

2.3 Managerial usefulness of study

The main motive of this project is to focus on the banking industry how they work in this competitive environment. By the help of this we can easily identify our work culture in banking industry .It is very tough competition in marketing in banking industry. Because there are so many branches are coming which is new in marketing. They are new in technology and also they have good educated employee and also work dedicated. They have more technology and knowledge about how to deal with customer. By the help of this I know few things about the banking how to talk with the customer, how to acquire new customers, how to deal with irate customer and how to act with them so they will not leave banking with us. 2.4 Types of research and research design

SWOT ANALYSIS OF D.S.C.B

Strengths of D.S.C.B

D.S.C.B is the second largest in terms of total assets and market share

Total assets of D.S.C.B is Rs. 4062.34 Billion and recorded a maximum profit after tax of Rs.

51.51 billion and located in 19 countries

One of the major strength of D.S.C.B bank according to financial analysts is its strong and

transparent balance sheet

D.S.C.B bank has first mover advantage in many of the banking and financial services. D.S.C.B

bank is in India to introduce complete mobile banking

solutions and  jewelry card

ICICI bank has the longest working hours and additional

services offering at ATM’s which attracts customers

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Marketing and advertising strategies of D.S.C.B have good reach compared to other banks in

India

Weaknesses of D.S.C.B

Customer support of D.S.C.B section is not performing well in terms of resolving complaints

There are lots of consumer complaints filed against D.S.C.B

TheD.S.C.B bank has the most stringent policies in terms of recovering the debts and loans, and

credit payments. They employ third party agency to handle recovery management

There are also complaints of customer assault and abuse while recovering and the credit payment

reminders are sent even before the deadlines which annoys the customers

The employees of D.S.C.B are bank in maximum stress because of the aggressive policies of the

management to win ahead in the race. This may result in less productivity in future years

Opportunities of D.S.C.B

Banking sector is expected to grow at a rate of 17% in the next three years

The concept of saving in banks and investing in financial products is increasing in rural areas as

more than 62% percentage of India’s population is still in rural areas.

As per 2010 data in TOI, the total number b-schools in India are more than 1500. This can ensure

regular supply of trained human power in financial products and banking services

Within next four years D.S.C.B bank is planning to open Lots of new branches

Small and non performing banks can be acquired by D.S.C.B because of its financial strength

D.S.C.B bank is expected to have 20% credit growth in the coming years.

D.S.C.B bank has the minimum amount of nonperforming assets

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Threats of D.S.C.B

RBI allowed foreign banks to invest up to 74% in Indian banking

Government sector banks are in urge of modernizing the capacities to ensure the customers

switching to new age banks are minimized

HDFC,ICICI ,AXIS is the major competitor for D.S.C.B, and other upcoming banks like City

Bank , HSBC impose a major threat In rural areas the micro financing groups hold a major share

Though customer acquisition is high on one side, the unsatisfied customers are increasing and

make them to switch to other banks.

2.5 Data collection methodsThe choice of method is influenced by the data collection strategy, the type of variable, the accuracy required, the collection point and the skill of the enumerator. Links between a variable, its source and practical methods for its collection can help in choosing appropriate methods. The main data collection methods are:

· Registration: registers and licences are particularly valuable for complete enumeration, but are limited to variables that change slowly, such as numbers of fishing vessels and their characteristics.

· Questionnaires: forms which are completed and returned by respondents. An inexpensive method that is useful where literacy rates are high and respondents are co-operative.

· Interviews: forms which are completed through an interview with the respondent. More expensive than questionnaires, but they are better for more complex questions, low literacy or less co-operation.

· Direct observations: making direct measurements is the most accurate method for many variables, such as catch, but is often expensive. Many methods, such as observer programmes, are limited to industrial fisheries.

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· Reporting: the main alternative to making direct measurements is to require fishers and others to report their activities. Reporting requires literacy and co-operation, but can be backed up by a legal requirement and direct measurements.

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2.6 Limitation of study

Although there is much remains to be done, our work generates important findings in the field of

international banks competitiveness in the foreign exchange market. in other words having

acknowledged the limitations of this study. Although the present study has yielded some

preliminary findings, its design is not without flaws. A number of caveats need to be noted

regarding the present study.

The main limitations are expressed as follows:

The first limitations concerns the factors of competitiveness of international banks in the foreign

exchange market.To put it in another way there might be some relevant factors , which

significantly influence on the competitiveness of international banks in the foreign exchange

market. However the discussion of other relevant factors of competitiveness of international

banks in the foreign exchange market is beyond the scope of this paper.It is not within the scope

of this paper to provide an extended discussion of the ongoing debates. Factors of

competitiveness of international banks in the foreign exchange market are still tentative , subject

to confirmation and modification through further investigation and examination. Future research

would have been more convincing if the research have related more factors to competitiveness of

international banks in the foreign exchange market. The question is one that deserves empirical

scrutiny.

CHAPTER-3

CONCEPTUAL DISCUSSION

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3.1 Review of literature

CONCEPTUAL DISCUSSION

Q1. What is CASA?

CASA stand for current account and saving account. Primary functions of Bank are to take

deposit from customer and give loan to them. Bank can take these deposits from customer only.

Now question is who is our customer? Customer is that who is having bank account with us is

called customer. In current account we doesn’t provide any interest to customer but in saving

account we does provide interest to customer , that is minimal. So it’s easy for bank to give that

interest and earn profit .

Q2. What is insurance?

Insurance is the business of providing protection against financial aspects of risk, such as those

to property, life, health and legal liability. It is one method of the overall concept known as risk

management.

In insurance, the insured makes payments called "premiums" to an insurer, and in return is able

to claim a payment from the insurer if the insured suffers a defined type of loss. This relationship

is usually drawn up in a formal legal contract, also known as a policy. The contract will set out

in detail the exact circumstances under which a benefit payment will be made and the amount of

the premiums.

Q3. Why should you take insurance?

Life is unpredictable. But in face of adversity, our responsibilities towards our parents, children and loved

ones need not be compromised. Insurance planning equips you to smooth out the

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uncertainties and adversities that life might send your way, so that the best that life has to offer, secure in

the knowledge that your beloved ones are well provided for.

Q4. Who provides Insurance?

Insurance companies may be classified as

· Life insurance companies, who sell life insurance, annuities and pensions products.

· Non-life or general insurance companies, who sell other types of insurance.

In most countries, life and non-life insurers are subject to different regulations, tax and

accounting rules. The main reason for the distinction between the two types of company is that

life business is very long term in nature - coverage for life assurance or a pension can cover risks

over many decades. By contrast, non-life insurance cover usually covers shorter periods, such as

one year.

Companies may sell both life and non life insurance, in which case they are sometimes known as

composite insurance companies.

Insurance companies are also often classified as either mutual or stock companies. This is more

of a traditional distinction as true mutual companies are becoming rare. Mutual companies are

owned by the policyholders, while stockholders, (who may or may not own policies) own stock

insurance companies.

Reinsurance companies sell insurance cover to other insurance companies. This helps insurance

companies to spread their risks, and protects them from very large losses. The reinsurance market

is dominated by a few very large companies, with huge reserves. .

Q5. What are the alternatives to insurance?

These days, when everyone seems to be suing everyone else, insurance premiums continue to

soar. Yet some insurance companies, fearing that the possibility of such lawsuits is too great,

actually refuse to make certain types of insurance available to businesses. So in most cases you

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have insurance you can barely afford, and in some cases you can't even get insurance. What's a

small business owner to do?

Self-insurance. With self-insurance you simply set aside money — some businesses choose to set

aside what they would be paying in premiums if they had purchased insurance — and use that

money when an unfortunate event occurs. For a small business, the best place to think about self-

insuring is with property insurance rather than liability insurance because the risks are more

manageable.

But even if you can't totally self-insure, you may be able to self-insure a little by purchasing

policies with higher deductibles. Suppose, for example that you maintain fire, theft, and collision

protection on a vehicle, but agree to be responsible for the first $1,000 of any damage to the

vehicle rather than the first $250 as is standard in many policies. Postal Life Insurance

Q6. What are the benefits of insurance?

The benefits are:

1) Superior to any other savings plan.

2) Encourages & forces thrift.

3) Easy settlement & protection against creditors.

4) Administering the legacy of beneficiaries.

5) Ready marketability and suitability for quick borrowing.

6) Disability benefits.

3.2 Current issues of banks

Top Ten Issues Facing Banks Today

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The banking industry has main problem is to how to satisfy the customer so he will maintain his

banking with us. Other then this the other problem of banking is to how to improve his NPV rate

so the cost of bank will come reduce . Shrinking fees and regulatory compliance have altered

profit expectations. Customers are likely to have financial relationships with multiple providers.

And emerging technology and increased use of mobile technology is providing for less customer

interaction and more opportunity for upstarts in the business, exploiting areas of customer

dissatisfaction. Other problem is facing by customer is less time also, because now banking hour

is approx. For 9 hours but business hours is very less .

In today’s world, we measure every experience by every other experience we have. We don’t

limit our thinking to one category. Our retail experiences inform every business and banking

experience. Here’s a look at some of the major trends facing banking today, gleaned from the best

research in the industry, and how these trends relate to the retail environment.

• Personalization. Customers expect a good financial solution to their needs, just like our

Starbucks experience. Each of us has our own personal standard for banking ,Some one wants to

go bank for every work some one wants to work on mobile banking and internet banking. Banks

have digital databases that can be leveraged to personalize the experience and empower

customers to make the right decisions. In fact, we believe asking the right questions of customers

is the first step in assisting customers reach their financial destination.

• Going the extra mile. Problem resolution is a huge problem for banks. One-third of customers

reported having a problem in the last 12 months for which they contacted their financial service

provider. How their problem is resolved becomes the seminal experience driving advocacy. Some

45% will discourage others from using their bank after a bad experience. A problem artfully

solved can turn a disgruntled customer into a loyal customer. Just ask the Nordstrom employee

who made a house call to exchange a pair of shoes. How about the blouse that was returned and

refunded when it was clearly from another store? And then there’s the one about Nordstrom

splitting two pairs of shoes in order to fit the man with different sized feet. The Nordstrom stories

are part of their pride and culture and represent their commitment to solving a customer’s

problems.

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• Loyalty. Wealthier customers in the U.S. give lower loyalty scores to banks than those of more

modest means. Affluent customers generally insist on premium service and tailored, expert

advice. They actually want a personal experience. Moving affluent or mass-affluent customers

from a detractor to a promoter is worth roughly five times the economic value of turning mass-

market customers into promoters. That’s a lesson that Lexus knows well. Early on, Lexus

achieved a remarkable 63% repurchase rate among first-time buyers because they knew their

buyers were attracted to comfort, long-term value, and reliability.   They relied on loyal customer

recommendations and provided them with special services to instill that loyalty. Today, Lexus is

highest among luxury brands for customer satisfaction with dealer service.

• Customer Experience Culture. More than three-fourths of executives say that the customer

experience has improved at banks while 2/3 of consumers say they have seen no change in the

experience. This gap between internal effort and external experience needs a foundational change

in culture and language. Customers want to feel cared for and valued. Ritz Carlton Gold

Standards are the foundation of their company. Their motto “We are Ladies and Gentlemen

serving Ladies and Gentlemen” is legendary, but their credo is even more admirable because it

says the Ritz-Carlton experience enlivens the senses, instills well-being and fulfills even the

unexpressed wishes and needs of our guests.

• Trust. Some 66% of Americans are still angry at big banks for the financial crisis. There is an

issue of trust. As many as 31% of megabank customers say they don’t trust their bank. Integrity

in banking is of critical importance now. Hampton Inns were recently named one of the most

trusted brands in the country along with perennial winners Apple and Amazon. Hampton Inns did

something disruptive in their category. They made a decision to wash the duvet covers after every

visit to decrease the spread of germs and bedbugs. To drive the point home with clients, Hampton

Inn puts a handwritten note on the bedframe to let guests know the linens have been laundered.

It’s just a small measure of trust and authenticity.

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• Memorable Experiences. Bank customers experience 60% more memorable experiences that

involve some form of human touch than from good rates or low fees. Disney wrote the book on

memorable experiences. Who can put a price on your child’s hug from Mickey and Minnie? They

use the phrase, “the Magic of Disney” to help describe the experience that they create for their

guests. They are constantly “imagineering” new ways to delight their customers.

• Cross-sell. Research shows that 41% of US adults are interested in keeping all of their financial

products and accounts with a single firm, but banks have struggled with cross-selling. They need

a new mindset of customer cultivation that includes growing their relationships from simple

accounts to loans, investments and business banking. Apple has built a unique type of loyalty

based on interconnected systems and products. Mac users are typically all in – a Mac computer

or Laptop, an Apple phone full of apps downloaded from an iTunes account, an iPad, the iCloud

and an Apple TV device. The pain of moving to an Android is too hard for those with such an

interconnected world.

• Mobile Banking Challenges. Mobile banking is fast becoming a given in the industry. One in

three bank customers use mobile anking, primarily those aged 25-45, and 61% of internet users

bank online. With fewer visits to a branch, it is important to tailor services for customers without

regard to the channel. Three out of five banking customers say they want the option of

researching products on their own rather than asking bank employees. When actual human

interactions happen on phone, in person or in chat, there is more importance on the quality of the

experience. The omni-channel consumer expects everything to be readily available at his or her

fingertips and expects the overall brand experience to be similarly accessible. Macy’s now refers

to itself as an “omni-channel retail organization operating stores and websites.”

• Small Business. For most small businesses, the bank relationship starts with setting up their

operating accounts and over time establishing credit, but these products barely scratch the surface

of the customer’s overall financial needs. To maximize the mutual value of the relationship,

banks need to go for the trifecta: the small business relationship, the personal relationship and the

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wealth management relationship. Certainly something that Visa has perfected over the years with

their consumer and business products – and with their relationship with the Triple Crown of

horse racing. 

• Customer Behavior and Segmentation. Banks are slowly evolving to customer segmentation to

get to know their customers better. Retailers have used segmentation well for many years. Target

is an example. They are providing fashionable differentiated merchandise at discount prices.

Why? Target customers are likely to be college educated, with a median income of $64,000 a

year, and brand conscious. They are smart shoppers, savvy to trends and like a retailer that gives

back to the community. We know that how people relate to each other is as important as customer

segmentation so investing in the knowledge of learning your personal behavioral style and that of

your customer is just as important as segmentation.

3.3 History and development

Delhi State Coop Bank to open 5 more branchesDelhi State Cooperative bank is soon going to open 5 more branches as its turn over is showing signs of unprecedented growth for last 5 years. Set up in 1921 the bank could get license from RBI only last year. Earlier, the cooperative used to appoint Managing Director of Bank but now in order to introduce more professionalism in the working of the Bank, NABARD appoints the MD.

Present Managing Director Mr. R S Dahiya is quite upbeat on the success of bank after he joined as MD on in 2005. He claims that when he joined the bank the turn over was Rs 80 crores but has risen to 160 crores in a short period of 5 years. While the net profit gravitated towards 10% in 2005 it has almost trebled to 32% in 2009.Not a mean achievement indeed!

Mr. Dahiya has the ambition of converting Delhi State Cooperative Bank into core banking and he is also working seriously on the project. He is readying software by in-house sources for this purpose .A net saving of Rs 4 crores was achieved by involving in-house staff, claims Mr. Dahiya.

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For any Bank to be successful it is essential that its loan recovery rate is high. Delhi State Coop Bank has a loan recovery rate of 87%.Bank is preparing for its next AGM which is scheduled in August and in which Chief Minister of Delhi Sheila Dixit may participate.

Co operative Bank in Delhi

Delhi

Sl. No Bank Name Address details

1 CITIZEN'S CO-OP. BANK LTD. (NEW DELHI)

8703\XV, 2nd FLOOR, DESHBANDHU GUPTA ROAD, NEAR SHEILA CINEMA, NEW DELHI-110055

2 DELHI NAGRIK SAHKARI BANK LTD.,

732-733,IInd FLOOR,Ganapati House, Gali NO.23, FAIZ ROAD KAROL BAGH, NEW DELHI-110007

3 DELHI STATE CO-OPERATIVE BANK LTD.,

31, NETAJI SUBHASH MARG, DARYA GANJ, NEW DELHI-110002

4 INDRAPRASTHA SAHAKARI BANK LTD., A 101, WAZIRPUR GROUP, INDUSTRIAL AREA, DELHI-110052

5INNOVATIVE CO-OPERATIVE URBAN BANK LTD.,

C-2/2, FIRST FLOOR, MAIN ROAD, WAZIRPUR INDUSTRIAL AREA, ( NEAR DHARAMKANTHA) DELHI-110052

6 JAIN CO-OPERATIVE BANK LTD., 80, DARYA GANJ, NEW DELHI-110002

7 JAMIA CO-OP BANK LTD. 334-E, BATLA HOUSE, JAMIA NAGAR, NEWIDELHI-110025

8 JANATA CO-OPERATIVE URBAN BANK LTD.DELHI Karwan House ,1521-24, PataudiHouse,DaryaGanj, New Delhi -110002

9 KANGRA CO-OPERATIVE BANK LTD., 1916, CHUNA MANDI, PAHAR GANJ, NEW DELHI-110055

10 KESHAV SEHKARI BANK LTD.

6428-29, BLOCK NO.8, DEVNAGAR, KAROL BAGH, .NEW DELHI-110005

11 KHATTRI CO-OPERATIVE URBAN BANK LTD.,

KHATTRI BHAVAN, 24, ANSARI ROAD, DARYA GANJ, DELHI.-110002

12 NATIONAL URBAN CO OP BANK LTD

C-3/84 NEW-KONDIL, MAYUR VIHAR PHASE - III, DELHI-110 096

13 RAMGARHIA CO-OPERATIVE BANK LTD.

1/4, DESH BANDHU GUPTA ROAD, PAHAR GANJ, NEW DELHI-110055

14VAISH CO-OPERATIVE NO.3, NETAJI SUBHASH MARG, DARYA GANJ, NEW ADARSH BANK LTD.,

DELHI.-110002

15 VAISH CO-OPERATIVE COMMERCIAL BANK LTD., 881/882, 2nd FLOOR, NAI SARAK, DELHI-110006

16 VAISH CO-OPERATIVE NEW RAGHUNATH SADAN, 7B, NETAJI SUBHASH MARG, DARYA

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BANK LTD., GANJ, NEW DELHI- 110002

in earlier time there was less branches of this bank but the now time grow and they are developing so many branches in city.the main motive is to maintain customer relationship and provide good services so they will do banking with us and we will be primary banker for him.We are providing him door step banking as well phone banking and mobile banking for easy access of banking. By the help of this banking we can access easily.

3.4 New development of company

These are the few development happened in banking so it made easy for ccustomer :

CREDIT CARD / ATM CARD FACILITIES

Some of the special features of this card are as under. • Maximum Interest Free Credit period: Buy Now and Conveniently Pay Latter and get the Maximum Interest Free Period on your Gold and Silver card upto 52 days and 50 days respectively. • Revolving Credit Facility: Pay Just 5% of your Credit Card bill and continue to use card, Manage expenses conveniently. • Free Insurance benefits: Get covered with Accident Insurance, Hospitalization Insurance and much more for free. • Powerful Rewards Programme: • Purchase Protection Any thing you buy is insured against damage or loss due to fire or theft. Get purchase protection uptoRs. 40000/- and Rs. 20000/- on your Gold and Silver Credit Card respectively.

• Limited Lost Card Liability: • Global Acceptance The card is accepted at over 1,25,000 merchant establishment in India and Nepal and over 25 million MasterCard accepting establishments worldwide. No need to carry cash whenever your travel. • Balance Transfer: Transfer the outstanding balance of your other Bankcard to your Punjab & Sind Bank Credit Card and pay lower interest. • ATM facility: • Comprehensive Travel Benefits:

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• 24 Hour Customer Care Centre:

INSURANCE PRODUCTS

(iii) Non Life Products: We are agent of M/s Bajaj Allianz General Insurance Company and sell all their non-life products through our network of branches across the country.

(iv) Life Products: Our bank has tie up arrangement of Life Insurance business with M/s Aviva Life Insurance Company India Pvt. Ltd. We are offering their following three products:

(a) Life Bonds

(b) Easy Life Plus

(c) Pension Plus The Customers may consult our branches for more details

GOOD BANKING PRACTICES

We request you as our customers to please note the following duties to enable us to serve you better.

1. Ensure safe custody of cheque book and pass book.

2. Preferably use reverse carbon while writing a cheque.

3. Issue crossed/account payee cheques as far as possible

. 4. Check the details of the cheque, namely, date, amount in words and figures, crossing, etc., before issuing it. As far as possible, issue cheques are rounding off the amount to nearest rupee

. 5. Not to issue cheque without adequate balance, maintain minimum balance as specified by the Bank

. 6. Send cheques and other financial instruments by Registered Post or by courier.

7. Bring pass book while withdrawing cash from Saving Bank account through withdrawal slip. Get pass book updated from time to time.

8. Use nomination facility in all deposits accounts & locker facility.

9.Note down account numbers, details of

10.FDR, locker numbers, etc., separately.

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11. Inform loss of demand draft, fixed deposit receipt, cheque leave(s) /book, key of locker, etc., immediately to the Branch.

12. Avail standing instructions facility to repeat transactions.

13. Provide feedback on our service.

14. Pay interest, installments, locker rent and other dues on time.

15. Avail services such as ATM, EFT, etc., if offered by the branch.

16. Bring any deficiency in services to the notice of the Branch Manager.

17. Not to sign blank cheque(s). So also do not record your specimen signature either on pass book or on cheque book

. 18.Not to introduce any person, who is not personally known to you for the purpose of opening account.

CHAPTER 4 DATA ANALYSIS

4.1 Methods and Techniques of data analysis

QUESTIONNARE

1. GENDER

Gender

Males Females

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INTERPRETAION:

According to this we can say that 20% are Females and 90% are Male.

2 AGE

Age

20-30 yrs.30-40 yrs.40-50 yrs.above 50yrs.

Interpretation: According to this we can say 60% people are from 20-30 yrs. Age

group,20% people are from 30-40 yrs. Age group, 15% people are from 40-50 yrs. Age

group and 5% people are from above 50 yrs. Age group.

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3. Customer Status

Customer status

Sat.Dis.

Interpretation:Accordingto this we can say that 80% people are Satisfied and 20% are

unsatisfied .

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4. Occupation

Occupation

Business Job Student House wife

Interpretation:According to this we can say that 35% people do Business, 45% people do

Job, 10% people are students and 10% are House wife.

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5. DO YOU LIKE OUR SERVICES?

· Yes

· No

According to our survey from 30 people, the graphical representation is

Do you like to use our product?

Interpretation:In this survey almost 90% people said Yes and 10% said No.

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6. WHICH PRODUCTS YOU LIKE TO USE?

Ø SAVING ACCOUNT

Ø CURRENT ACCOUNT

Ø LOAN

Ø INSURANCE

According to our survey from 30 people, the graphical representation is

Which product you like to use?

SBCALOANINS

Interpretation:In this survey, 55% people said they SB Account 20% said Current account,

20% Loan and 5% Insurance.

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7. WHICH BANK’S PRODUCTS YOU PREFER THE MOST?

Ø DSCBOI

Ø INDIAN BANK

Ø OBC

Ø ANY OTHER

According to our survey from 30 people, the graphical representation is

Which company's product do you prefer the most?

INDIAN BANKDSCBIOBCany other

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8. ARE YOU HAPPY WITH THE QUALITY OF THE OUR PRODUCTS?

Ø YES

Ø NO

According to our survey from 30 people, the graphical representation is

Are you happy with the quality of the Our product?

yesno

Interpretation :In this survey , 95% people said Yes and 5% people said No.

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9. ARE YOU HAPPY WITH THE SERVICES PROVIDED BY BANKERS?

Ø YES

Ø NO

According to our survey from 30 people , the graphical representation is

Are you happy with the services provided by the retailers?

Interpretation: In this survey , 80% people said yes and 20% people said no.

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4.2 Primary data analysis

Government agencies collecting and maintaining raw data series

Lists of Links by Country to Central Banks, Finance Ministries, Government Data Collection Agencies, etc.Economics Departments, Institutes and Research Centers (EDIRC) Comprehensive list of statistical offices, central banks, and university research centers by country. Both secondary and primary sources are listed. Searchable data base. Maintained by Christian Zimmermann, at the Center for Research on Economic Fluctuations and Employment (CREFE) at University of Quebec at Montreal.

Primary data is the data collected by the researcher themselves, i.e.:

1. Interview

2. Observation

3. Action research

4. Case studies

5. Life histories

6. Questionnaires

7. Ethnographic research

8. Longitudinal studies

Other Primary Data Sources

Board of Governors of the Federal Reserve System

Primary data source for commercial paper, selected interest and foreign exchange rates, reserves of depository institutions, money supply, consumer credit, commercial bank assets and liabilities, industrial production and capacity utilization, Flow of Funds, etc.

U.S. Department of Labor, Bureau of Labor Statistics (BLS)

Primary data source for national and regional employment/unemployment, national and regional employment cost indexes, national and regional consumer price indexes, national producer price indexes, import and export price indexes, productivity and costs.

U.S. Department of Commerce, Bureau of the Census (Census) — primary data source for:

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1) Manufacturing and trade data, including: manufacturers shipments, inventories, and orders (SIO), preliminary report for all manufacturing as well as advance report on durable goods; Wholesale trade sales and inventories; Retail trade and food services sales; and Manufacturing and trade inventories and sales.

2) Housing and construction-related data, including new residential construction (housing starts and building permits, national and regional), new residential (single-family home) sales [national and regional, issued jointly with U.S. Department of Housing and Urban Development (HUD)], and construction spending (value of construction put in place).

National Association of Realtors: primary data source for existing single-family home sales(monthly for the nation and four major regions, quarterly for states).

News releases

Data U.S. Department of Commerce, Bureau of Economic Analysis (BEA)

Primary data source for Gross Domestic Product (GDP) and related data from the National Income and Product Accounts (NIPA); Gross State Product (GSP); personal income (national, state, and local areas); international balance of payments and related data (including U.S. current account); and monthly international trade (joint with U.S. Bureau of the Census).

The Conference Board

Primary data source for composite indexes (leading, coincident, and lagging), consumer confidence, help-wanted index.

Institute for Supply Management's Reports on Business

Primary data source for national purchasing managers' index for manufacturing and business activity index for non-manufacturing.

Selected regional purchasing managers' reports: primary data sources for purchasing managers indexes for manufacturing activity in areas covered by the Seventh Federal Reserve District.

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Here are sites we have vetted for accuracy, timeliness, and accessibility. Practically all the information is free, and most of it comes from one of the many government agencies that track economic trends. The sources we recommend are as follows:

Bureau of Economic Analysis (BEA)

A division of the U.S. Department of Commerce, BEA provides data on the various economic components of the nation’s gross domestic product (GDP). The data is used by the White House and Congress to prepare budget estimates and projections, and by the Federal Reserve to set monetary policy. All information is free.

Decision Analyst Economic Index

Decision Analyst conducts a monthly Internet survey of more than 5,000 households balanced by gender, age, and geography. The survey reports on business activity where respondents work, as well as personal financial data and trends, to provide a snapshot of current economic activity. The Economic Index is calculated from nine different economic measurements using a sophisticated econometric model. The Index is used by government decision-makers, business managers, marketing specialists, the news media, and others.

DismalScientist

Another site provided by Moody’s, this one offers various domestic and international economic indicators. It also provides a calendar of economic reports and up-to-date business news. All information is free.

Economagic

This site offers a comprehensive site of free, easily available, economic time-series data useful for economic research, in particular economic forecasting. The site offers more than 200,000 time series for which data and custom charts can be retrieved. The majority of the data is domestic. The core data sets involve U.S. macroeconomic data, but the bulk of the data is employment data by local area—state, county, MSA, and many cities and towns.

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4.3 Secondary data analysis

Secondary Sources: Government and private sites culling data from primary sources for presentation with analysis, graphs, or for export to statistical packages. Secondary sources usually

offer standardized definitions across many countries for the purpose of comparison.

Researchers need to consider the sources on which to base and confirm their research and

findings. They have a choice between primary data and secondary sources and the use of both, which is termed triangulation, or dual methodology.

Secondary sources are data that already exists1. Previous research

2. Official statistics

3. Mass media products

4. Diaries

5. Letters

6. Government reports

7. Web information

8. Historical data and information

Here are sites we have vetted for accuracy, timeliness, and accessibility. Practically all the information is free, and most of it comes from one of the many government agencies that track economic trends. The sources we recommend are as follows:

1. Bureau of Economic Analysis (BEA)

A division of the U.S. Department of Commerce, BEA provides data on the various economic components of the nation’s gross domestic product (GDP). The data is used by the White House and Congress to prepare budget estimates and projections, and by the Federal Reserve to set monetary policy. All information is free.

2. Decision Analyst Economic Index

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Decision Analyst conducts a monthly Internet survey of more than 5,000 households balanced by gender, age, and geography. The survey reports on business activity where respondents work, as well as personal financial data and trends, to provide a snapshot of current economic activity. The Economic Index is calculated from nine different economic measurements using a sophisticated econometric model. The Index is used by government decision-makers, business managers, marketing specialists, the news media, and others.

3. Dismal Scientist

Another site provided by Moody’s, this one offers various domestic and international economic indicators. It also provides a calendar of economic reports and up-to-date business news. All information is free.

4. Economagic

This site offers a comprehensive site of free, easily available, economic time-series data useful for economic research, in particular economic forecasting. The site offers more than 200,000 time series for which data and custom charts can be retrieved. The majority of the data is domestic. The core data sets involve U.S. macroeconomic data, but the bulk of the data is employment data by local area—state, county, MSA, and many cities and towns.

5. Economic Research Service (ERS)

This is a division of the U.S. Department of Agriculture that provides state-by-state economic data. Information includes population trends, employment figures, income levels, farm characteristics, farm financial indicators, top commodities, exports, and counties for each state.

6. Federal Reserve Board (FRB)

The Federal Reserve Board compiles economic research and data for the regional banks that comprise the Federal Reserve network. This information provides a credible assessment of economic conditions by region. The banks are located in Chicago, Atlanta, Cleveland, Kansas City, Boston, Minneapolis, New York, Philadelphia, Dallas, Richmond, St. Louis, and San Francisco.

7. FreeLunch.com

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Freelunch.com is a service provided by Moody’s Economy, an independent provider of economic, financial, country, and industry research. The site’s databases contain more than 165 million economic, financial and demographic time series covering more than 180 countries and their sub-regions. The company regularly runs data accuracy routines to verify the integrity of its databases.

8. International Economic Statistics (IES)

Provided by the Federal Reserve Bank of St. Louis, IES is a database that simplifies the search for worldwide economic indicators. The database provides links to individual indicators (such as GDP and CPI) for each country, as well as a detailed description of the data. Descriptions are searchable by title, country, subject, and keyword. The links are checked regularly to maintain accuracy and indicators are continually added. IES also publishes the Liberty Economic Information Newsletter, which comes out nine times a year. It offers economic information, articles, data, and websites compiled by the librarians of the Federal Reserve Bank of St. Louis Research Library. All IES data and the newsletter are free.

9. Monetary Trends

Monetary Trends is published monthly by the Federal Reserve Bank of St. Louis. The district’s Research Division, which publishes Monetary Trends, monitors the economic and financial literature and produces research in the areas of money and banking, macroeconomics, and international and regional economics. Topics addressed by the publication include short-term credit flows, interest rates, inflation indicators, futures contracts, inflation-indexed securities, etc.

10. U.S. Bureau of Labor Statistics (BLS)

This government agency is the principal fact-finding agency for the federal government in the field of labor economics and statistics. BLS data must satisfy a number of criteria, including relevance to current social and economic issues, timeliness in reflecting today’s rapidly changing economic conditions, accuracy and consistently high statistical quality, and impartiality in both subject matter and presentation. Statistics are available on topics such as employment, inflation, pay and benefits, productivity, and other economic concerns. A great deal of the information is broken down by industry and regions of the country. It is all free.

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11. U.S. Census Bureau: Business & Industry

Some of the best free economic data is provided online by the Census Bureau. Updated regularly, the information relates primarily to these industries: construction, manufacturing, retail, services, wholesale trade, international trade, and governments.

U.S. Census Bureau Economic Indicators

Offered by the Census Bureau, this site offers a wide assortment of economic data, including housing vacancies and ownership patterns; building permits; manufacturing and trade inventories and sales; international trade in goods and services; construction spending; and a quarterly financial report on manufacturing, mining and trade. The extensive archives have information going back as far as 1958.

12. United Nations Statistics Division

The UN provides a global center for data relating to international trade, national accounts, energy, industry, environment, transport, and demographic and social statistics gathered from many national and international sources. The Division regularly publishes data updates, including the Statistical Yearbook and World Statistics Pocketbook, and books and reports on statistics and statistical methods. Many of the division's databases are available on this site as CD-ROMs, diskettes, and magnetic tapes, or as printed publications.

FINDINGS

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This project is about the Delhi state cooperative bank which holds a big Customer marketing the

Delhi. This project reveals that how Delhi state cooperative bank achieves its objectives and the

different characteristics of the values adopted by Delhi state cooperative bank.

This report reveals that In order to be competitive in the Banking market and sustaining the

image in this era of Banking how Bank is practicing the rules and what values adopted and the

procedure while recruiting staff and how it acquires the right and skilled people from diverse

culture.

This report also gives a deep insight that how it realize the need of training for the employees and

how give them the right type of training. This report also reveals that how it manage diversity in

the environment and how the staff of it works in team work while have a different types of

customer and from different background, how it resolve the conflicts between the employees and

different types of customer. Team work is directly related to the success of organization when

company operates in diverse culture with diverse work force then there are more chance of

conflicts so the recruitment policies are designed according to the requirement so that the staff

they hire must be supportive and motivated and can work in team work all these things discussed

in the report in detail. This reports presents that the staff of Delhi state cooperative bank is the

key strength for the success of the company and this report reveals that it keep its performance up

to the level by recruiting right people, by providing them right type of training, keeping the

motivation level high and by providing the right type of leadership which always make sure that

a diverse work force work together and involve the employees by giving them the sense of

importance. The leadership makes it ensure that each and every individual of our bank is

contributing in the success and excellence of organization and achieving its goals and objectives.

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CHAPTER 6

CONCLUSION AND SUGGESTIONS

CONCLUSION

The power of Banking is extraordinary, from its function as an incredibly important cultural

identifier to its ability to communicate with the customer. People use banking and tools reflect

their ancient values, evolving lifestyles and contact with outsiders. Whether this he can contact

with various types of customer in various location by taking NEFT and RTGS Services. It

provides services to different environment people and entity and it gives loan to various

departments without any hassle. It has a creative work of culture, and enables individuals to

communicate with the spirits in a manner critical to their survival. In RETURN it earns profit

themselves by giving good services to the customer.

SUGGESTIONS

Ø There are still efforts are needed to make people aware about his branches and services provided

by them.

Ø Delhi state cooperative bank must provide after sale service to their customers.

Ø Employee should be more careful and more knowledgeable about the product and services

offered by them.

Companies shall introduce or increase the range of their product in respect of verities so that a

lower middle class people may also afford to have Delhi state cooperative bank relationship.

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ANNEXURE

PERSONAL DETAILS

Name : ____________________________________________

Address : _______________________________________________

Sex : M F

Tel no. : ______________________________________________

EMail : ______________________________________________

Q1. What is your profession?

Private Employee

Businessman

Doctor

Others

Q2. What age group you fall into?

18-25 25-35 35-50 ABOVE 50

Q3. Which income group you fall into?

< 2 Lac 2 – 2.5 Lac 2.5 – 3.5 Lac more than that

Q4. Do you know about DELHI STATE CO-OPERATIVE BANK?

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Yes No

Q5. Do you have Bank account with D.S.C.B?

Yes No

Q6.Which of the following you prefer?

Single premium policies

Regular premium policies

Q7. What is your objective of insurance?

Protection Savings Investment Others

Pension Taxation Education

Q8. For what term do you generally invest?

less than 10 yrs. 10-15 yrs more than 15 yrs

Q9. What type of unit linked plans do you invest in?

Children plan Endowment Pension

Q10. What benefits you look for before purchasing insurance policies/plans?

Withdrawal Switching funds Inc/Dec of premiums

BIBLIOGRAPHY

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,,,

0

1). WEBSITES REFFERED:

· www.ndtvprofit.com

2). SEARCH ENGINES

WWW.GOOGLE.COM

WWW.WIKIPEDIA.COM

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