Raj Bank

A REPORT ONA REPORT ON

THE CO-OPERATIVE BANK THE CO-OPERATIVE BANK

OF RAJKOT LTD.OF RAJKOT LTD.

(RAJ BANK)(RAJ BANK)

Submitted To :: -Submitted To :: -

SAURASHTRA UNIVERSITY

Submitted By :: -Submitted By :: -

LIMBASHIYA CHIRAG G.(S.Y. B.B.A)

Guidance :: -Guidance :: -

MR. NIRAJ PANDYA

Academic Year :: -Academic Year :: -

2005-2006

College :: -College :: -

R.P.BHALODIA COLLEGE RAJKOT.(1)

PREFACE

Practical training is the part of our study in B.B.A.

it is compulsory for each student to take training for 15

days in any service sector and prepare the project

report on that service sector.

The training has been undergone at “ THE CO-

OPERATIVE BANK OF RAJKOT LTD.” for the knowledge

of practical study of unit. This report contains the true

knowledge and all the aspect over gone in the practical.

It covers all the various department like marketing

department, financial department and personnel

department.

“ THE CO-OPERATIVE BANK OF RAJKOT LTD.”

“Sahkar Sarita” Panchanath Road, Rajkot – 360 001.

Phone : (0281) 2224120 / 2234733 / 2233155. Fax :

(0281) 2236682. E–mail : raj bank.

I have prepared the report of “ THE CO-OPERATIVE

BANK OF RAJKOT LTD.” on the basic of information,

which I collected from various department of the

company. I got all the information, which I wanted from

this company.

DATE :: - ___________

PLACE ::- ___________

(SIGNATURE) (2)

(LIMBASHIYA CHIRAG G.)

(3)

ACKNOWLEDGEMENT

The preparation of the report is my own work, but I

have taken help from many persons. I am thankful to all

those persons who helped me in activity out this work.

I express my deepest of gratitude the manager of

“ THE CO-OPERATIVE BANK OF RAJKOT LTD.” and all

the members who provided all the necessary

information.

He gives me grate pleasure in thanking Mr. NIRAJ

PANDYA who helped me out in my work. Without him

ever ready help, whole hearted guidance, never ending

encouragement and enthusiasm. It was difficult to bring

this report to its present form.

I would be failing my duty if I will not mention

thanks to family members, relatives and friends to

helping me throughout.

DATE :: - ___________

PLACE ::- ___________

(SIGNATURE)


(4)

DECLARATION

I, the undersigned LIMBASHIYA CHIRAG G. student

of S.Y.B.B.A. from the Shri R.P.BHALODIA COLLEGE of

Commerce & Business management & Computer

studies, declare that this project report is prepared by

me. I had taken a help of my college and professor for

the purpose of guidance only and to add that, myself

prepare this report.

DATE :: - ___________

PLACE ::- ___________

(SIGNATURE)


(5)

CONTENTS

Preface 2

Acknowledgement 3

Declaration 4

Banking Sector In India 9

General Information Of Co-Op. Banks 11 -

19

Introduction 12

Definition Of Co-Operative 13

Principles & Characteristics 14

Types Of Co-Operative Bank 16

Role Of Co-Operative Bank 18

Registration & Licensing 19

RAJ BANK At Glance 20 -

32

Introduction 21

Corporate Mission 22

The Executive Committee 23

(6)

Branch Network & Structure 24

Awards & Accolades 29

Corporate Governance & RAJ BANK 30

Relationship Management 32

(7)

Services At The RAJ BANK 34 -

52

Introduction 35

Depository Services 36 - 42

Current Deposit 36

Saving Deposit 38

Term Deposit 40

Recurring Deposit 41

Children Deposit 42

Advance Services 43 - 49

Business Loan 43

Medical Equipment Loan 44

Term Loan 44

Mortgage Loan 45

Secured Overdraft 45

Clean Overdraft 46

Personal Loan 46

Vehicle Loan 47

Loan against NSC / KVP / LIC. 48

Home Loan 49

Other Services 50 - 52

Safe Deposit Vault 50

(8)

Cash – Card Facility 51

ATM Facility 52

Cheques Depository Service 52

(9)

H. R. M. At The RAJ BANK 53 -

63

Introduction 54

Human Resource Policies & Program 55

Recruitment 57

Selection 58

Orientation & Placement 59

Employee Remuneration 60

Training & Development 62

Promotion & Transfer 63

Marketing At The RAJ BANK 65 - 68

Introduction 66

Promotional Activities 67

Marketing Research & Information 68

Finance Management At The RAJ BANK 69 - 81

Introduction 70

Financial Planning 71

Capital Structure Of The RAJ BANK 72

Capitalization 73

Cash Management 74

Ratio Analysis 75

Finance Information 76

Progress Report 77

NPA & Recovery Management 79

(10)

Risk Management 81

(11)

S. W. O. T. Analysis 83

Future Plan 86

Suggestion 88

Conclusion 90

Bibliography 92

(12)

Banki

ng

(13)

Secto

r

(14)

In

India

(15)

BANKING SECTOR

IN INDIA The importance of banking as the nerve sector of

economic development can not be over emphasized.

Banking industry has acquired a key position in

mobilizing resources for defense & for socio economic

development of the country. It is said that “Bank

which are that need of & great wealth of our

country have got to be kept very sacred. Just as

water is for irrigation, good banks are for the

country’s industry & trade.” Since the beginning of

planning in India banking industry has grown not only in

size but also in depth this industry has become one big

complex.

Today banks have become a part & parcel of our

life. Ti was the time when the dwellers of city alone

could enjoy their services. Now banks offer access to

even a common man & their activities extend to areas

hither to untouched & after the globalization &

liberalization policy of India, many foreign banks have

entered in Indian market with different services &

innovation technologies. Apart from their traditional

business oriented functions, they have now come out to

fulfill national responsibilities. Today’s banks cater to

the needs of agriculturists, industrialist, traders,

women, students & to all other sections of the society.

(16)

Thus they accelerate the economic growth of a country

& steer the wheel of the economy towards it’s goal of

“Self reliance in all fields.” Hence today banking

sector has become the lifeline of the economy.

In present age in India there are many banks

including foreign banks, public sector, private sector,

commercial banks & co-operative banks.

General

Informa

tion of

Co-(17)

Operati

ve

Banks

(18)

INTRODUCTION

Over the year the difference between co-operative

banks & commercial banks has blurred as they all have

come under a common law. All products & services are

offered by co-operative banks are on the par with

commercial banks, with a few exceptions related to

government business. In 1904 the co-operative

movement started in India with a view to provide

finance to the agriculturist at a low rate of interest. The

co-operative society has to take the place of the money

lenders & provide cheap loan to the farmers for

productive purposes. Even though many types of co-

operative societies have been started particularly for

the artisans & others, the most common form of such

societies deal in rural credits. And today co-operative

banks have started verities of services with different

technologies. Once the Mahatma Gandhiji has

remarked that “there is sweetness in co-operation;

there is no one who weak or strong among those

who co-operate. Each is equal to other.”

So, after having such easy government policy,

today many co-operative banks have started in India.

And they are catering to the all section of the society, &

also today co-operative sector has grown in all over the

world, with globalization of the world they have also

started to implement new technologies & various

(19)

management tools. Now, they are in same market with

all the other banks. So, by this way the co-operative

banks are in the key position in the economy.

(20)

DEFINITION OF

CO-OPERATION

Co-operation has been defines in slightly different

ways in various sciences & by various scholars. This is

due to its flexible nature which can lend itself to variety

of purpose & social system, in order to have a through

understanding of the concept some well known

definitions are discussed below.

“Co-operation is a form of organization where in

persons voluntarily associate together as human beings

on a basis of equality, for the promotion of economic

interests of them selves.”

-Hubert

Calvert

“Another protagonist is an association for the

purpose of joint trading, originating among the weak &

conducted always in an unselfish spirit, on such terms

that all who are prepared of assume the duties of

membership my share in it’s reward in proportion to the

degree in which they make use of there association.”

- C. R. FAY

(21)

PRINCIPLE &

CHARACTERISTICS

Careful analyses of the above definitions will

reveal the following principles & characteristics of co-

operative organization.

VOLUNTARY ASSOCIATION ::-

Co-operative organization is purely a voluntary

association if individual who join together for

betterment of their economic interest through

collective efforts. A member is at liberty to leave the

organization at any time & withdrawal his capital by

giving due notice. But it should be remembered that a

member is not allowed to transfer his shares to another

person as found in the company organization.

OPEN MEMBERSHIP ::-

Membership of co-operative organization is open

to all irrespective of religion caste, colour, creed,

political affiliations belief & status to which a person

belongs. The membership fees & the entrance fees are

kept relatively low so as to enable the economically

weak to become the members.

(22)

EQUAL VOTING RIGHTS ::-

Equality is the quintessence of co-operative

organization. Members have equal voice in the

management of it’s affairs with the underlying principle

“ ONE FOR ONE VOTE .“

SERVICE MOTIVE ::-

It is mainly intended to goods first to it’s members

& then to outsiders at profit the primary aim of any co-

operative organization is to render service to its

member. So these are the primary motive or principles.

There are other principles, co-operative organization

has to follow those principles like state control,

democratic organization etc.

(23)

TYPES OF

CO-OPERATIVE

BANKS

There are mainly three types of co-operative

banks in India.

State co-operative banks

Central co-operative banks

Urban co-operative banks

STATE CO-OPERATIVE BANKS ::-

These banks are also known as apex bank & are

registered under co-operative societies act – 1912. In

fact these banks are established to function as a

leading co-operative financial institution of the state

offer co-operative societies should grow. The “apex

banks “as they are called are they to render financial

help as & when the co-operative societies are in need

of their help.

CENTRAL CO-OPERATIVE

BANKS ::-

A district level of central co-operative banks is

functioning as a commercial bank & that too as an

independent unit. They are there in order to strengthen

the co-operative movement in the country. In fact these

(24)

banks are the key link between people & apex bank &

render valuable services to downtrodden & rural folk in

taking them out of the financial wood central co-

operative banks get funds from

(A) share capital (B) deposits (C) financial help from

state co-operative banks (D) state bank of india & (E)

commercial banks. Their working capital is usually

provided by state government.

(25)

URBAN CO-OPERATIVE BANKS ::-

Urban co-operative banks are organized &

established in towns on the pattern of joint – stock

banks but are established under co-operative societies

act – 1912. For funds these banks depend on their own

sources. However central co-operative banks are

helping them in financially viable. Central co-operative

banks are directly links with the state co-operative

banks. Urban primary co-operative banks provide funds

to rural folk in easy terms to help them in agriculture

work aid its development today they have started

playing a significant role in rural upliftment. They are in

tune with the government policies & program.

(26)

ROLE OF

CO-OPERATIVE

BANKS

Now-a-days co-operative banks are progressing

very fast then any commercial or nationalized banks.

The customer service lending services & other banking

facilities given to the society is being better than other

banks. So people are also being attracted & interested

in co-operative banks.

The main aim of the bank is to extend credit

facilities to the small traders, workers & other middle

class people. This bank derive their funds for working

partly through share capital contributed by the

members & partly through deposits collected from

members, general public & render usual banking

services. The liability of members is normally unlimited.

This enables the society to raise funds from outside

agencies & also encourages member to take keen

interest in working of the society.

(27)

REGISTRATION &

LICENSING

There should be co-ordination between the state

co-operative department & RBI for the registration &

licensing of urban banks. Urban banks should build up

their share capital & reserve to the revised minimum

level with in period of 3 year which can be extendedly

by the RBI to a further period of 2 years whenever

necessary.

For organization or urban co-operative bank in

each state there should jointly survey local areas &

identify the potential growth centers where urban

banks could be organized once such centers are located

prominent person of the locality might be contacted to

seek their assistance for registration of the urban

banks. New banks are to be organized in backward

areas or by weaker section of the community may not

be able to collect the initial minimum share capital

required for obtaining license. Government assistant in

the form of share capital contribution for such new

banks may be equal to that collected by members.

These banks derive their funds for working partly

through share capital contributed by the numbers &

partly through deposits collected from members & non-

members & renders usual banking services. The shares

(28)

are of higher value. But the liability of the member is

limited to the extent to the shares hold by them.

(29)

Raj

Bank

At A (30)

Glanc

e

(31)

INTRODUCTION

The co-operative bank of Rajkot ltd. popularly

known as Raj bank is established on 25 - 11 – 1980

under the strong, effective leader ship of one of the

national co-operative hero honor Shri Ramnikbhai

Dhami with the intention of survive the common man.

The local intensity of the bank in it’s customer

centric approach, hassle free execution of the decision

& technologies are their main difference from

commercial banks, also high level of commitment at all

levels of management & self committed ground level

staff makes them different from other commercial

banks.

At present Raj bank has achieved a key position in

the market of saurashtra. It has 11 branch in all over

Saurashtra including main branch with the advanced

technologies and educated staff, as it it said that “In

the emerging competitive business environment Co-

operative banks who adhere to strict Financial

discipline. Only will survive” On this basis at present Raj

bank is becoming more prestigious in the banking

sector.

(32)

CORPORATE MISSION

Survive to the common man.

Enhance the value of share holders.

Emerge as a symbol of public trust & confidence

by creating a positive image.

Maintain excellence in operation &

management by bringing in transparency &

integrity.

Develop & motivate human resource there by

cultivating professional culture in the banking

operation.

Ensure speedy & satisfactory customer services

through continuous product innovation &

aggressive marketing strategies.

And the last but not least that is….

“To assist the weaker section of the society” Is

the primary motto of the Raj Bank.

(33)

THE EXECUTIVE

COMMITTEE

Sr

.

Designati

onName

Occupat

ion

1 Chair Man Ramnikbhai Sejpal Industrialist

2 Vice Chair Man Bhanjibhai Patel Industrialist

3Managing

DirectorRamnicbhai Dhami Advocate

4Joint Managing

DirectorKamalbhai Dhami

------

5General

Manager

Satyaprakash

Khokhara------

6 Director Kiritbhai Kamdar Architect

7 Director Manubhai Nasit Industrialist

8 Director Manharbhai Shah Businessman

9 DirectorChandubhai

PampharCharted Eng.

10 Director Jamnadas Faldu Industrialist

(34)

11 DirectorChandrakantbhai

PatelIndustrialist

12 Director Govindbhai Khunt Businessman

13 DirectorDr. Vallabhbhai

HiraniDoctor

14 Director Gopalbhai Karia Businessman

15 DirectorShsikantbhai

MahetaBuilder

16 Director Shirishbhai Dhruv Engineer

17 DirectorMadhusudan

DongaIndustrialist

18 Director Muljibhai ChauhanGovt.

Contractor

19 DirectorBakulbhai

ZalavadiaC. A.

20 Director Lilaben Dhami Social Worker

21 DirectorArunaben

ChudasamaSocial Worker

(35)

BRANCH NETWORK &

STRUCTURE

1 Panchnath Road Branch ( With ATM)

“Sahkar Sarita” Panchnath Road Rajkot – 1.

Phone : 2233722, 2234454

At Your Service From : 25–11–1980

( RBI Licence No. ACD.Gj.219 Dt :- 12–08–1980)

Mr. D. M. Dave Manager

Mr. S. K. Makwana Dy. Manager

Mr. N. S. Patel Dy. Manager

Mr. S. M. Kalyani Asst. Manager

Mr. K. D. Dalsania Asst. Manager

2 Dhebarbhai Road Branch

Near Trikon Baug, Rajkot – 360 001.

Phone : (0281) 2236766, 2227948

At Your Service From : 10-04–1989

( RBI Licence No. UBD.BL 1937 Dt. 26–10–87)

Mr. B. P. Vekaria Manager

Mr. U.S. Padalia Asst. Manager

Mr. J. C. Solanki Asst. Manager

(36)

3 Saurashtra Uni. Road Branch (With ATM)

Saurashtra Uni. Road, Rajkot – 360005

Phone : (0281) 2573600, 2573601

At Your Service From : 05–04–1993.

( RBI Licence No. UBD. AH/4 Dt. 12–08–1994)

Mr. R. S. Boda Manager

Mr. V. N. Maheta Asst. Manager

Mr. N. R. Boda Asst. Manager

Mr. V. H. Chavda Asst. Manager

4 Jasdan Branch

Jeram Plot, Chitalia Kuva Road,

Jasdan – 360050. Phone : (02821) 220830.

At Your Service From : 16–01–1996.

( RBI Licence No. UBD. AH/95 Dt : 09-08-1994)

Mr. H. T. Joshi Asst. Manager

Mr. Z. P. Kalkani Asst. Manager

5 Morvi Branch

1, Kalika Plot, Ravapar Road,

Morvi – 363641, Phone : (02822) 230920.

At Your Service From : 05-06-1995


Mr. S. V. Patel Dy. Manager

Mr. M. C. Vadaviya Asst. Manager

(37)

6 Jetpur Branch (With ATM)

Kanakai Plot, Jetpur -360 370

Phone : (02823) 223151.



Mr. M. K. Sheth Dy. Manager

Mr. V. K. Siddhpara Asst. Manager

7 Upleta Branch

Raj Marg, Upleta – 360 490

Phone : (02826) 222955.



Mr. S. M. Virapara Asst. Manager

Mr. R. J. Lunagaria Asst. Manager

8 Gondal Branch

Kailash Complex, Kailash Baug,

Gondal – 360 311. Phone : (02825) 223143

At Your Service From : 15-01-1999.


Mr. H. J. Pipariya Asst. Manager

Mr. R. M. Chuhan Asst. Manager

(38)

9 Sahakar Society Area Branch

Hasan Wadi Main Road, Nr. Trishul Chowk,

Rajkot – 360 002. Phone : (0281) 2363536



Mr. K. R. Viradia Dy. Manager

10 Raiya Raod Branch

Omkar Towers, Opp. Nirmala School.

Rajkot -7. Phone : (0281) 2589494.



Mr. D. V. Maheta Manager

11 Junaghar Branch (With ATM)

“Sardar Bhavan” Maharshi Arvind Marg,

Junaghar – 362 001. Phone : (0285) 2621313



Mr. Sarfaraz Munshi Asst. Manager

(39)

AWARDS &

ACCOLADES

1) “Zero NPA” excellence bank award given by

Mr. Ghanshyambhai Amin

2) Sahkar Ratna award to managing director

Mr. Ramnikbhai Dhami given By

Mr. Jayrambhai patel & Mr. Vallabhbhai Kathiriya

3) From beginning Raj bank has been awarding

As Audit calls “A” By district register.

(40)

CORPORATE

GOVERNANCE & RAJ

BANK

As Co-operative banks come under common law

but then also the banks have to follow such guidelines

of the RBI. The prudential measures have been

stipulated by RBI for the urban co-operative banks

according to which the position of Raj Bank is as follow.

Prudential norms of RBIPrudential norms of RBI Raj Banks positionRaj Banks position

Capital adequacy ratio is to Raj Bank has maintain

this

Maintain at 9%. Ratio at more then 31%.

Prohibition on advance Raj Bank has never made

Being made to share booker. Such advances.

Prohibition on advance Raj Bank has never made

against shares & debentures. Such advances.

Maxi. 2% debt can be Raj Bank has never

borrowed

Obtain from call money any debt from call

money

Market (This 2% will be on market from the date of

the deposit of the P. Y.) incorporation.

(41)

Prohibition to keep fix deposit Raj Bank has never

maintain-

With other urban co-op. bank. Ed fix deposit with any

other

Urban co-op. bank.

It is compulsory for non- Raj Bank’s investment in

Scheduled co-op. bank such type of security is

To invest 15% of NDTL in more then 25%.

Govt. approved securities.

Scheduled co-op. banks Inspite of Raj Bank is

should compulsorily invest non-scheduled bank, it's

25% in govt. & other investment in such

approved govt. securities. Securities are more then

25%.

(42)

RELATION SHIP

MANAGEMENT

The importance of relationship can not be

measurable in our life. In our life we have to maintain

such relation, we can not across it. In earlier we use to

call it maintenance for relation but now a days it is

being called as relationship management. Without

maintaining relation, firm can not go further or can not

get development. Because without customer or

employee, who will give importance to the organization.

But an organization needs to keep its eye on every side

and need to manage every relation. For every

organization there are main three relations such as

customer relation, employee relation and social

relation.

EMPLOYEE RELATION

To provide best service to customer it would be

difficult task for Raj bank if there would not proper

human resource management. In success of any

organization, relationship between employee and

employee, employee and management employee and

labours etc. should be good. Raj bank takes care it’s

employee just like a family member. And not only looks

(43)

after their intelligence but also takes care of there

emotional and spiritual quotient. Bank has maintain

healthy relation with there employee, bank also tries to

satisfied there need.

(44)

SOCIAL RELATION

Bank has maintained health relation with society

also. Society consist of other bank, government,

businessman etc. bank has to maintain good relation

with societal factor. So by this way for Raj bank

relationship management is as important as other

management and as a result of good relationship

management, today bank has very strong market

position and goodwill in society.

CUSTOMER RELATION

Raj bank believes that customer satisfaction is it’s

best reward by providing best services so customer is a

king for Raj bank. Bank always tries to maintain healthy

relation with customer.

(45)

Servi

ce

(46)

Of

The

(47)

Raj

Bank

INTRODUCTION

It was a time when a function of the banks limited

to the collection saving from the public & lending to the

people who are in of money. But in modern age, now

it’s not like that , in modern time banks have become

the important part of colony due to the only expansion

(48)

in the function. One reason for development in banking

function is that the developing of the market means

today’s competition & to maintain position in the

market banks they have to develop their services. The

modern function or the services provided by the banks

are as follows.

To collect spare funds from people’s saving & pay

them interest.

To make these funds available to the businessman

& industrialist as loan & advance. They charge

interest from them.

They also help in assisting international trade by

arranging exchange of currency to another one.

Banks render services for the welfare &

development of weaker section of the society,

they help in setting up small industries, cottage

etc.

Banks help farmer to buy tractors & other

agricultural equipments, middle class people to

buy home appliances like T. V. & provide finance

for house.

In RAJ Bank out of these services most of services

are being served. Not only that but also they are

providing ATM facility, Cash card facility, Demand draft

facility & many other services.

(49)

CURRENT DEPOSIT

Current account refers to regularity of transecting

in account with in banking hours on all working day.

The banker’s liability in this regard is to honor all the

demand of the customer to the extent to which his

account shows a credit balance. It is because of this

obligation current account deposit is known as bankers

demand liability & in order to fulfill this liability they

keeps sufficient cash ready every moment.

A current account is an account which is generally

opened by businessmen, companies, institutes,

corporations, industrialists etc.

Who have huge working capital in their hand.

Who are interested in keeping money safe.

Who transect with their banker daily.

Who received and make payment usually through

cheques.

Who utilize the agency services of the banker

frequently

Who are engaged in large scale business activity,

social services and government activities.

At present in RAJ BANK the

condition of current account is as

under.

(50)

No. of

depositors total deposit amt.

% of total

deposit

10,748 30, 32, 78,368.52 10.59%

(51)

Features of the current account

And Facilities provided to the current

account holder.

Easy Procedures for account opening.

24 hours banking facility through their ATM centers.

Personalized services & special facility by the way of

telephonic inquiry.

Regular bank statement is provided at home through

post or E-mail.

Special facility of over draft cleans O.D. & secured

O.D.

(52)

SAVING DEPOSIT

Saving deposit account is an ideal account or

those who 2have money to save but who can not

advantageously invest them any where else as their

saving are not of much significance to the capital

market because their saving are too small. This amount

is therefore meant of smaller saver. The account is

therefore encourages small saving and tries to forge a

saving habit in the general public. The attitude to save

is important which this account tries to create and thus

mobilize such small savings for greater social good

saving deposits account is for that section of society

and put to fruitful utilization.

Features of the saving deposit Restriction on with drawl of amount.

Restriction on deposit of amount.

Payment of interest.

At present in RAJ BANK the

condition of saving deposit is as

follows.

(53)

No. of

depositors

total deposit

amt.

% of total

deposit

50,31471,23,43,463.

8324.87%

(54)

Extra features to the saving

account holder of the Raj Bank.Attractive Rate of interest (3.5%)

Easy procedure for account opening.

24 hours banking facility through their ATM

centers.

Personalized services & special facility by the way

of telephonic inquiry.

Regular bank statement is provided at home

through post or E-mail.

Attractive computerized passbook.

No charges for saving account holder.

(55)

TERM DEPOSIT

This account attracts those customers who have

money invest for a longer period but do not want to

take much of risk. Such person prefers to deposit with

commercial banks for a specified period at a specified

rate of interest. The interest rate varies from one period

to another. A deposit of 15 days attracts a smaller rate

of interest and deposits for 5 or more years. The

highest rate of interest. The period for which deposits

are to be made depends upon the depositor himself.

However, once a decision is taken by the depositor any

money deposit usually he is not allowed to withdrawal

the same before the interest earned till that date or

accepts a lower rate of interest than stipulated at the

time of deposits.

At present in RAJ BANK the condition of the term

deposits is as under.

No. of

depositors

total deposit

amt.

% of total

deposit

77,750182,84,67,000.

0063.84%

Interest rate structure on fixed

deposits.

(56)

Between

No. of

depositor

s

Total deposit

amt.

% of

total

deposit

6% to 8% 40,626 49,70,61,053.63 17.35%

8% to 10% 17,997 68,02,61,362.86 23.75%

10% to

12%15,365 50,57,25,251.47 17.66%

above 12% 3,755 14,54,19,938.10 5.08%

(57)

.

RECURRING DEPOSIT

To encourage regular saving habits in the

depositing public the bank in the country provide an

opportunity to them to save regularly. According to

their capacity and need and earn more than what

saving deposit accounts offers to them. The following

are the main features of the recurring deposits.

The deposits are made every month of fixed

amount say Rs. 5,10,15,25 and so on.

The deposit is made for fixed period say 6,

12,24,36,48,60,72,84, months and so on.

The account can be transfer from one bank to

another in the country on request by customer.

This account can be opened by every one

competent to enter in to contract including the

minor one.

A passbook is supplied to the customer and entry

is made there in every month after every deposit.

The account attract higher rate of interest.

The customer is allowed to raise loan against his

recurring deposit account to the maximum limit of

75% of the deposit he has made till the date of

raising the loan.

As far as concerned with recurring deposits at the

Raj Bank, than these are the features are the provided

to the recurring deposit holders.

(58)

Easy and simple account opening procedure.

Speedy and timely services.

Account can be opened with any convenient

amount,

Attractive rate or interest and special rate for

senior citizenship.

CHILDREN DEPOSIT

The main purpose of such account is to develop a

habit of saving in student community. The main

features of this account are as follows.

The student can deposit a minimum of paisa.

The bank’s branch is usually operated in the

school premises.

The student may withdrawal the money as and

when they choose to do so.

On a balance of Rs.5 and above interest at saving

deposit account rate is allowed.

Features of the children deposit

scheme at the Raj Bank.

A special scheme for school and college students.

Attractive rate of interest.

Special gift will be provided to them on extra

ordinary performance in academic and other

curriculum activities.

(59)

No withdrawal will be allowed from such account

point to maturity.

Attractive passbook will be provided with their

printed name on it.

(60)

BUSINESS LOAN

Any kind of traders, businessmen or a person, who

is going to start a new business, can get business loan.

Bank grants business loan for the purpose of fulfillment

or short term working capital need in the business.

Bank grants this type of loan Rs. 2 lacs to

maximum 25 lacs. Bank charges rate of interest as

under.

CREDIT RATING ROIPrime BLPR + 00.00%

AAA BLPR + 00.25%

AA BLPR + 01.25%

A BLPR + 02.25%

BPLR 10.75% w.e.g. 01-08-2004

A person who is gating business loan he has to

mortgage land, building or any other fixed assets.

Document of properties have to be given to the

bank by a person. Bank takes all these documents

as a security.

A person has to give reference of two people who

are depositor in the Raj Bank as guarantors.

NECESSARY DOCUMENTS ARE…

(61)

Application form, other documents specified in the

application form, if applicant want mortgage than he

need to submit the whole file of that assets valuation

report of that assets. Proof of guarantor’s income (one

time only).

MEDICAL

EQUIPMENT LOANAny registered medical practitioners whose age

should be 25 years to 55 years and should have at

least one year experience.

Purpose of this loan is to build a new clinic, to

purchase other medical equipments or any

property for clinic.

Bank grants this loan up to 3 crores.

Rate of interest charged on this loan is 10% to

11%.

As a security a person has to mortgage any fixed

assets whose reliable market value is enough in

proportion of loan.

Loan repayment period is maximum 6 years.

TERM LOANIt is one of the major sources of debt finance for a

long term project. Term loans are generally repayable

in more than a year but less than 10 years. These loans

are offered by all Indian financial institutions. Term

loans are generally secured through a first mortgage or

(62)

by way of deposit of title deeds of immovable

properties.

Any business operator for the purpose of purchase

necessary building, build a building or purchase a

new machinery.

For the purpose of this loan is to invest in long

term capital.

Bank grants these loan 2 lacs to 25 lacs.

Rate of interest charged on this loan is 10% to

13%.



proportion of loan.

MORTGAGE LOANAny kind or traders, businessmen or an

industrialist can get mortgage loan. Bank grants

mortgage loan for the any purpose.

Bank grants this type of loan Rs. 50,000 to

maximum 10 lacs. Bank charges rate of interest

on this loan is 12.5% to 13.5%.

A person who is gating mortgage loan he has to

mortgage land, building or any other fixed assets.

Document of properties have to be given to the

bank by a person.



Loan repayment period is 3 years to 7 years.

(63)

SECURED OVERDRAFTAny kind of traders, businessmen, personally,

professional & industrialist can get secured over

draft.

Bank grants secured overdraft for the purpose of

fulfillment or short term working capital need in

the business.

Bank grants this type of over draft Rs. 1 lacs to

maximum 100 lacs. Bank charged interest on this

over draft is 10.75% to 14%.



proportion of over draft.



(64)

CLEAN OVER DRAFT

Any kind of traders, businessmen, personally,

professional & industrialist can get clean over

draft.

Bank grants secured overdraft for the purpose of

fulfillment or short term working capital need in

the business.

Bank grants this type of over draft Rs.50, 000.

Bank charged interest on this over draft is 12%.



proportion of over draft.



PERSONAL LOAN

Any localize person can get this loan.

Bank grants personal loan for the purpose of

purchase fridge, T. V., washing machine or any

other thing which can be useful for home

management.


maximum 50,000 or 70% to 90% of the quotation

price of the product.

Bank charges rate of interest on this loan is 11%.

(65)

Applicants need to make such documents of

purchase products of purchased product in favor

of the bank as a security.




(66)

VEHICLE LOAN

Any kind of traders, businessmen, personally,

professional or any person can get this type of

loan.


purchase old or new vehicle for personal or

business use.


maximum 10, 00,000 or 70% to 90% of the

quotation price of the product.

Bank charges rate of interest on this loan is

11%.


purchased vehicle in favor of the bank & in RTO

applicant need to register as a hire purchased

vehicle as a security.

A person has to give reference of two people

who are depositor in the Raj Bank as guarantors.


Quotation of vehicle, proof of guarantor’s

income (one time only), RTO certificate & other

documents are required with the application form.

(67)

LOAN AGAINST

NSC, KVP, LIC.

Any person who should have share certificate on his

own name or any LIC policy holder.

Bank grants loan for any purpose.

Bank grants this type of loan 70% to 90% of the price

of the NSC, KVP, LIC.

Bank charges rate of interest on this loan is 11.50%.

Applicant need to give share certificate or LIC policy.

Applicant has to repayment this loan within the due

date of that certificate or policy.


application form and if an applicant has to give

Share certificate or policy than need to sign in

favor of the bank.

(68)

.

HOME LOAN

Any localize person can get this loan.


purchase or to build home.

Bank grants this type of loan Rs. 15,000 to maximum

15,00,000 or 70% to 90% of the price of the home.

Bank charges rate of interest on this loan is 11.50%.


purchased home in favor of the bank & bank takes

all the documents as a security.

A person has to give reference of two people who are

depositor in the Raj Bank as guarantors.



application form and if an applicant want to

mortgage any assets than he need to give whole

file of that assets and title report through

advocate approved by bank only proof of

guarantor’s income (one time only).

(69)

SAFE DEPOSIT VAULT

Safe Deposit Vault (locker

facility)

At Raj bank there is a proper locker department at

ground floor here locker facility has been providing to

the customer. Customer can keep all the ornaments,

important documents and many other papers and many

things. For every bank this facility is become just like

primary function and for providing best customer

service Raj bank is managing this service too.

Any shareholder or depositor can easily get their

personal locker of bank. There are mainly three types of

lockers at Raj bank Small size locker, Medium size

locker, and large size locker. And for to maintain best

services Raj bank has different department and enough

staff for locker department. Different charges and

deposits for different locker are as under.

Types of

locker Yearly rent Deposit

Small 200 5000

Medium 250 10000

Large 300 15000

(70)

And for the management of this

locker department they are mainly

follow these activities.

They have locker attendance register in which the

identification, address, full name and signature of

locker holder are being maintained.

Before any locker holder open his/her personal locker

the staff member has been verifying the signature

of that parson and than they allow him to open

locker.

They are also maintained time register in which the

entry time and exist time a locker holder is being

written. So this is very essential function for Raj

Bank.

CASH CARD FACILITY

Cash card facilities totally new and plastic product

is started by only Raj bank among the nation by cash

card any customer can every with drawl amount up to

Rs. 15000 from ATMs by cash card. There are no

charges for cash card and in also one silent feature is

(71)

there is no minimum balance require for cash card

system. It is a unique facility of Co-Operative bank of

Rajkot ltd. Cash card is given instead of token for the

payment of cheques.

(72)

ATM FACILITY

ATM has given a new dimension to banking by

giving rise to self service banking. Customer have long

been constrained by conventional banking services

which have been characterized generally by fixed

location and fixed timing on the other hand. Customers

not desiring to keep much money on them expect their

money to be available to them. Whenever and

wherever they need money, 24 hours banking services

is available for any time. ATM can be used for

withdrawal of cash. For Raj bank it is a matter of great

proud that it is pioneer in introducing ATM in the entire

Saurashtra region in Co-Operative banking sector. At

present Raj bank has four ATM. By this ATMs any

customer can easily withdrawal maximum 10000 per

day.

CHEQUE DEPOSITORY

SERVICE

For the purpose of providing best customer service

with advanced technologies to their customer, Raj bank

has also started Cheques depository service through

cheques depository machine. This service provided to

(73)

the customer 24 hours of 365 days. CDM facility started

on 17th July 2004 at main branch. Now any customer

can easily deposit cheques through CDM at any time

and any day without filling big slips and without

standing in big queue.

(74)

H. R.

M.

At

The(75)

Raj

BankINTRODUCTION

Human resources in any organization, be it public

private of Co-Operative constitute perhaps the most

vital assets of that organization. An organization will fail

if its human resources are not competent to execute

the work assigned to them. There is no getting away

from fact that human resources represent a subsystem

which dominates all other sub system to the

organization.

Moreover, people are the only assets of an

organization that appreciate over a period of time while

(76)

all the other assets depreciate. The more an

organization is investing in human resources, the

greater the return from the investment is likely to be

and it has been rightly pointed to in one of the books of

inter national Co-Operative alliance “The gains accruing

out of structural reforms can be best capitalized only it

the personnel maintained by the Co-Operative

institution are in a position to execute the policies

effectively”. This implies the need and necessity of

proficient and capable human resources which is on e

of the primary aims of ht human resource

management.

According to national institute of personnel

management of india “Personnel management is that

part of management concerned with people at work

and with their relationship within the organization it

seeks to bring together men and women who make u

an enterprise enabling each to make his own best

contribution to it’s success both as an individual as a

working group.”

(77)

H. R. POLICY AND

PROGRAMMES

A sound foundation for selection of the right kind

of human resources is laid with the formulation of

sound human resources policies. According to William

R. Spiegel a human resources policy can be defined as,

“A body of principles and rules of conduct that governs

the enterprises in it’s relationship with it’s employees.

Thus the sound personnel policies set the tome for

proper administration of the personnel programmers,

So as to achieve the objective of the organization.

As Raj Bank is one of the leading Co-Operative

bank in the Co-Operative sector, though its

performance is very good but than also such policies for

human resources they can not make by their own. It

has to follow the rules of policies given by the

government and RBI so in the matter of the personnel

policies Raj Bank is restricted to some level. Than also

the bank have adopted a policy of recruiting only CA

and MBA for their management level for better

management. So, by this way where they get chance

they are making or improving personnel policies at Raj

Bank.

(78)

The next important stage in the selection process

is the human resource planning. “Planning applied in

the field of personnel” it is the comprehensive and on

going process. Broadly conceive human resource

planning as Thomas H Patten Jr. states, “Human

resource planning is process by which an organization

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

right place at the right time doing the things which they

are economically most useful.”

In the Raj bank there is a very educated staff as it

is concerned with the human resource planning

recently they has adopted policy of selection only C.A.

& M.B.A. For their human resource has as far as

concerned with the human resource planning. There is

no long term planning but at a time or requirement of

staff they used to recruit staff either out side or from

with in the firm through transfer or promotion.

(79)

RECRUITMENT

Among the function of human resource manager,

one man function is to procure best people for their

organization, means search of prospective employees

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

well and good recruitment process for having best

human resource this recruitment can be possible

through many sources. A firm can recruit proper

candidate mainly through two success recruitment

sources these are as under.

Recruitment Sources

Internal sources External sources

1) Transfer 1) Advertisement

2) Promotion 2) Education institutes

3) Relative & friends 3) Placement agencies

4) Labours contractor

In case of Raj bank, the main source or

recruitment is daily news paper advertisement. They

also recruit employees by transfer and promotion.

Generally as per the recruitment of the job they give

advertisement in newspaper and collect the pool of

application.

(80)

SELECTIONManaging people is not easy but it can be made

easier if you make sure that you have selected the right

people in the first place. And also it said that “selection

of people is easy but selection of right people is difficult

task.” The selection procedure is concerned with

securing relevant information about an applicant is

secured. The objective of selection process is to

determine whether the applicant meets the

qualification for a specific job and to choose the

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

Thus an effective selection program is a non

random process because those selected had been

choose on the basis of the assumption that they are

likely to be “better” employees then those who have

been rejected. Selection process or activities typically

follow a standard pattern being with an initial screening

of applicant, interview and concluding with final

employment decision. The selection procedure of raj

bank is quit simple. The stages of including in the

selection process are as follows.

New paper advertisement

Receipt of application

Screening

Arrangement and interview

(81)

Selection

Placement and confirmation

(82)

ORIENTATIONAfter the selection of employee, management of

the firm has to pass through such process. So new

employee can be aware of the atmosphere of the firm

and also can be familiar with the other employee. This

process is called orientation or induction. In any

organization this process performs very vital role

because this is the only process which can create better

environment in the organization and a new comer can

be aware about his working condition, his area of

responsibility and everything about organization. Proper

orientation process can be beneficial to both, a new

comer as well as organization.

PLACEMENT

Once an employee has been selected he should be

placed on a suitable job. Putting the right man at the

right job is as important as hiring the right person.

Placement is a process of assigning a specific job to

each one of the selected candidates. It involves

assigning a specific rank of and responsibilities of an

individual. It implies matching requirement of a job with

the qualification of a candidate.

In other words, “placement is the determination of

the job which an accepted candidate is to be assigned

(83)

and his assignment to the job.” As Raj bank is very

careful about this process. And one thing is that, at the

time of requirement only they hire new employees. So

hire it is specified that for which job they are recruiting.

After the final selection, they have been marking the

job of the new employee.

EMPLOYEE

REMUNERATION

Remuneration is the compensation an employee

receives in return for his or her contribution to the

organization. Remuneration occupies an important

place in the life of an employee. Standard of living of

employee, states in the society, motivation, loyalty and

productivity depends upon the remuneration. For the

employee remuneration is significant because of its

contribution to the cost of production. For human

resource management, remuneration is the major

function. The HR specialist has a difficult task of fixing

wages and wage differentials acceptable to employee

and their leaders. There are mainly 3 three components

of employee remuneration. These are as follows…..

1) Wages and salary, 2) Incentives and 3) Non monitory

benefits.

As far as it is concerned with the Raj bank, there is

a specific policy of employee remuneration formed by

RBI and govt., and it self also. So and also for the

management of employee remuneration there is a

(84)

specific administration department which cares of

wages and salary and all things about remuneration.

WAGES & SALARY :: -

Wages represent Hourly rates of pay and, salary

refers to the monthly rate of pay irrespective of the

number of hours put by an employee. Wages and

salaries are subject to annual increments they differ

from employee to employee and depend upon the

nature of job seniority and merit.

INCENTIVES ::-

Incentives are also called ”payment by result” are

paid in addition to wages and salaries. Incentives

depend upon productivity, sales, profit or cost reduction

efforts there are.

1) Individual incentive schemes and

2) Group incentive program

Individual incentive are applicable to specific

employee are applicable to specific employee

performance. Where a given task demands group effort

for completion, incentives are paid to the group as a

whole. The amount is later divides among incentives

refer to variable rewards granted to the individual in

terms of changes in specific results in organizational

setting besides wages and salaries, employees are paid

incentives depending upon their performance.

Incentives payment is quite substantial and is paid as

regularly as wages and salaries. The primary advantage

(85)

of incentives is the inducement and motivation of

workers for higher efficiency and grater output. It

option schemes and the like perquisites are offered to

retain competent executives.

NON MONITORY BENEFITS

::-

These include challenging job responsibilities.

Recognition of merit, growth prospects, competent

supervision, comfortable working condition and job

sharing.

As far as Raj Bank is concerned that is specified

department who cares about employee remuneration.

Apart from salaries they are also provides bonus (one

month salary) also provides provident fund scheme and

gratuity and also VRS scheme, group insurance too.

(86)

TRAINING &

DEVELOPMENTTraining is the process of increasing the

knowledge and skills for doing a particular job. It is an

organized procedure by which people learn knowledge

and skills for a definite purpose. The purpose of training

is basically to bridge the gap between job requirement

and present competence of an employee. Training is

aimed at improving the behavior and performance of a

person. It is a never ending or continuous process. In

any organization their should be proper training

program to improve employee resources, as well as

organization development. Training involves helping an

individual learn how to perform his present job

satisfactorily.

On the other hand development is long term

education process utilizing a systematic and organized

procedure by which managerial personnel learn

conceptual and the critical knowledge for general

purpose. So in the any organization the importance of

the training and development is very vital, nobody can

ignore it. As far as it is a continuous process there. Raj

bank is working with advanced technologies. At every

step better training and development is required.

At present every employees of the firm are

getting trained by its own EDP department n advanced

computer technologies. They are also organizing

internal seminar for improvement of the firm and also

(87)

they are sending their employees outside like

Gandhinagar, Ahmnedabad,Delhi, Pune and Mumbai to

o\o for the better development. As it is banking firm

there is continuous training and development program

organized by other banking firm and association for

improvement of whole banking sector in India.

PROMOTION

AND TRANSFERMobility and flexibility in the workforce are

necessary to cope with the changing requirement of an

organization. Job changes provide necessary flexibility,

employees move from one job to another one through

transfer, promotion. So the importance of employee

movement in the organization in very important.

Promotion:: - Promotion refers to advancement of an employee

to a higher post carrying grater responsibilities higher

status and better salary. It is the upward movement of

an employee in the organization’s hierarchy to another

job commanding grated authority higher status and

better working condition when an employees is

assigned a higher level job with more pay and powers

he is said the promoted promotion may be temporary

or permanent depending upon the needs of the

organization so this is just like tool which can be useful

in two way one way it is a motivation second way it

(88)

becomes a source of recruitment from with in a

organization so the promotion in the organization is

who is present as other activities in case of the Raj

bank as it is Co-Operative sector they have to follow

promotion policy of government is merit cum seniority

in case of promotion they are not independent too.

(89)

Transfer::- A transfer refers to a horizontal or literal

movement of an employee from on a job to another in

the same or organization with out any significant

change in status any pay. It has defined as “ A literal

shift causing movement of individual from one position

to another. Usually without involving any marked

change in duties as responsibility will needed of

compensation. The need for transfer may grid due to

several reason transfer mane of which the following

objective.

To meet organizational need

To satisfy employee needs

To better utilize employees

To make the employee more versatile

To adjust the work force

To provide relief

To punish employees.

The transfer is beneficial in many ways the

benefits of the transfer is as under

Increase in productivity and effective need of the

organization.

Greater job satisfaction to employees

Stabilize fluctuation work needs

Improve employee skills

Remedy for faulty placemen

Develop employees for further promotions

Avoid monotony and boredom.

So, the transfer is also important as far as

concerned with Raj bank there is no specific transfer

(90)

policy but according to requirement and for

convenience of the employee they use to make

transfer.

(91)

Marke

ting

Depart

ment

(92)

At

Raj

Bank

(93)

INTRODUCTION

Today, marketing is spread in every field of like

hospitals, services, goods even politics and many more.

In banking sector too the importance of marketing also

can not measurable, still it has not developed in public

sector it is only limited to foreign banks and private

sector. The reason for success of foreign in India is only

best marketing efforts. Today in banking sector there is

a cutthroat competition among public sector, private

sector and foreign bank.

Marketing is a human activity directs at satisfying

the needs and wants of customers, there are five

stages of bank marketing firstly marketing g is

advertising, sales promotion and publicity, secondly

marketing is smiling and Co-friendly atmosphere,

thirdly marketing is innovation like the ATMs or cheques

with drawls on fixed deposits, fourthly marketing is

positioning. When all banks advertise and innovate,

they look alike so, they should try to position

themselves differently, even through symbols, logos or

aggressive advertising so that the customer can

distinguee between one bank and another and finally

marketing is analyzing, planning and control.

At Raj bank though there is no specific marketing

department. for marketing of different services but

providing vest services to their customers and getting

(94)

good customer satisfaction, and doing such efforts of

marketing like promotion activities they are in directly

getting benefits of the marketing. Today they are also

planning for such continuous marketing efforts. And

with in the few years they will have aggressive

marketing department.

(95)

PROMOTIONAL

ACTIVITIES

Promotion tools are also essential in the bank’s

marketing mix. We need personal selling in customer

contact, development, personal service. And so on.

Similarly, bank marketing program need advertising as

mass communication tool. The bank is a sponsor. It

sends a message to prospective buyers (the audience)

by means of a medium (The carrier of the message). An

advertisement in bank marketing is a promise3 a

promise of satisfaction to prospects who buy or use the

service offered by the bank or who are willing to

patronize the bank. Banks are using all media of

advertisement such as newspaper, radio television,

magazines etc., for advertising their services and for

getting the business. Bank marketing also uses sales

promotion devices such as point of purchase materials,

advertising specialties (ball pens, calendars, diaries,

notes pads etc.) brochures and booklets describing

bank services, etc. a bank has also to use public

relation as mode of promotion to build up and maintain

its bright image in the community.

As far as it is concerned with promotion activity

than Raj bank is not doing any personal selling but bank

is believe in very strong goodwill and also best

customer satisfaction they are using advertising they

are giving their advertisement in news paper like

Sandesh, Gujarat samachar etc. and also in banking

(96)

magazine and for publicity they are organizing such

shows like recently they have organized three bug

shows. First in Morvi and second and third in Rajkot

with Sunidhi Chauhan and Anu Malik and second with

great Andnd Murti Guruma. By this way be using very

simple and less expenses tools of marketing like

advertising and publicity. They are getting goods

response from society and for Raj bank work of work of

month is their best publicity.

(97)

MARKETING RESEARCH

AND INFORMATION

Good marketing decisions are not made in a

vacuum. Hence, even in bank marketing. We need

marketing research and information to enable bank

executive to make sound decisions. The increase in the

use of marketing research in bank marketing is due to

two forces:

competition pressures to be right, and Customer –

orientation in marketing planning and program. Banks

are now establishing a separate marketing

organization. Conduction marketing research, setting

up sales training program and adopting sales promotion

divides promotion devices to attach customer we have

special bank advertisement through radio. T.V. and

newspapers. Marketing research may be defines as

“The scientific and controlled process of gathering of

none routing, marketing information, helping

management to solve marketing problems.”

As far as it concerned with the marketing research

process at Raj bank. They have been continuously

doing such research from beginning. But one positive

point for marketing research is that they not doing any

big expenses for marketing research and for

executives. Bank’s staff member themselves goes to

market and gathers requited information or data. Such

information or data they are collection from direct RBI

(98)

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

benefits by using marketing research process.

(99)

Finan

ce Depart

ment(100)

At

Raj

Bank

(101)

INTRODUCTION

Finance is the fuel of administration. Without

adequate financing no business enterprise can raise its

potentials for growth and success. And it would be

worthwhile to recall what “Henry Ford” once remarked

“Money is an arm or leg. You either use it or lose it.”

This statement though apparently simple and quite

meaningful, it brings home the significance of money or

finance. In the modern money oriented economy

finance is one of the basic foundations of all kind of

economic activities.

Finance management is indeed the key to

successful business operations. Without proper

administration and effective utilization of finance, no

business enterprise can utilize it’s potentials for growth

and expansion. Organization and control of these

function is important for all types of business units.

Specially in public undertaking massive investment has

so far been much less productive, it is necessary to

organize the finance functioning such a manner that

should help the business in achieving it’s basic

objective with minimum cost.

According to Hoagland “Financial management is

concerned mainly with such matter as how of business

corporation raises it’s finance and how it make use of

that.”

(102)

FINANCIAL PLANNING

Planning is very necessary for the smooth running

of the business can not be carried on without planning.

Planning means deciding in advance what is to be done

for each functional area of management. The planning

of each area should link to the objectives of the

organization. Financial planning means deciding in

advance the financial activities to be carried on to

organization. So, the basic purpose of financial planning

is to make sure that adequate funds are raised at

minimum cost and they are used widely. A proper

planning of the business on one hand and to allow a fair

return to their contribution on the other.

Thus financial planning includes the

following…

1) Determination of financial objectives.

2) Formation of financial policy.

3) Development of financial procedure.

In Raj Bank, the financial planning has been done

through proper management in various areas like

liquidity planning, investment planning, profit planning,

cash management etc.

(103)

CAPITAL STRUCTURE

OF THE RAJ BANK

Capital structure decision is yet another important

area under financial management. Capital structure

refers to the mix or proportion of firm’s permanent long

term financing represented by debt preference must

ensure the maximization of wealth of shareholders so

even the capital structure decision must be taken in the

light of wealth maximization objectives. That particular

mix of debt and equity which maximizes the value of

the firm is known as optimum capital structure in

simple word capital structure refers to the composition

of capital.

Capital structure = Long term debts + Preference

share capital + Equity share

capital + Reserves.

1. Capital

Rs.

4,60,00,000.00

2. Reserves & surplus

Rs.

45,41,50,000.00

3. Deposit

Rs.

2,86,41,00,000.00

4. Borrowings Nil

5. Rs. (104)

provision 2,70,00,000.00

(105)

CAPITALIZATION

Capital plays an important role in any business at

the time of corporation of the business, it is the first

problem before promotes to decide how much capital is

to be required and in what form. It is not an easy task.

A financial plan is to be prepared form the purpose of

explaining the abort term and long term needs of

finance to the company. Sever consideration would be

kept in mind such as cost of capital fair return to the

contributors of capita risk involved flexibility etc. while

taking decision in this regard it required proper

capitalization.

Proper capitalization reveres to the total amount

of capital required in the long run to run the business

smoothly capitalization uses in its quantities aspect and

reveres to the amount at which a company’s business

can be valued most of the traditional authors define the

terms in this sense the sum total of the par value of all

share. After definition of capitalization are being

reproduces below in order to understand the term well.

E.F. Lincoin, The amount of capital at any time

should not excepted none should it be less than the

amount required in both situation it there firm will be

loser. These conditions are called under capitalization

and for capitalization. In case the amount is hiring than

it is required the company his have to pay more

(106)

interest on the surplus capital are they rescuing the

proper of the concern of the total capitalize not

sufficient to discharge the function of the business the

concern with not be in a position of even reasonable

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

have proper capitalization.

(107)

CASH MANAGEMENT

Cash is the medium of exchange which allows

management to carry on the various activities of the

business on day to day basis. And management of cash

is one of the most important answers of over all

working capital management due to the fare there cash

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

the responsibility of the finance function to see that the

various functional areas of the business have sufficient

cash were ever they require the same at the same time

if has also it be ensured that funds are not blocked in

the form of idle cash as the cash remaining idle also

involves cost in the form of interest cost and

opportunity cost as such the management of cash have

to kind a mean between these two extremes of

shortage of cash as well as idle cash.

The basic objectives of cash management of are to

reduce the operating cash balance requirement to

maintain possible extent without affecting the routine

transaction. For the management of cash flow

statement is the most important tool cash low

statement provided information about the cash ratio

and payment of a firm for again period. It provides

important information that compliments the profit and

loss account and balance sheet.

(108)

RATIO ANALYSES

Financial analyses of an organization depend to a

large extent on the use of ratios. The technique is

commonly known as financial ratio analyses. Ratio

analyses is a very powerful analytical tool useful for

measuring performance of an organization the ratio

analysis helps the management to analyses the past

performance of the firm and to make further projection.

Ratio analysis is a process of comparison of on figure

against the calculation of ratio relatively easy and

simple task but the proper analyses and interpretation

of the ratio can be made only be the skilled analysis.

The ratio of The Raj Bank of the last year is as under.

(109)

(110)

FINANCIAL

INFORMATION

The liberalization of the financial sector is the key

for the over all liberalization process. Gradually, the

structure of the financial market itself has begun to

change, in the changing Financial Market; The Co-

Operative Bank Of Rajkot Ltd. has market the

progressive growth and profitability both the financial

year 2004-2005 which is reflected in the following

Financing since inception:

(Rs. In Lacs)

Particulars 31-3-04 31-03-05

Members 27,400 29,100

Share Capital Rs. 475 Rs. 480

Deposit Rs. 2620 Rs. 2860

Advances Rs. 1120 Rs. 1420

Net Profit Rs. 805 Rs. 810

Working

CapitalRs. 28100 Rs. 32425

(111)

PROGRESS REEPORT

(112)

DEPOSITS

212262

286

0

100

200

300

2003 2004 2005

YEAR

AM

OU

NT

(R

s. I

n L

ac

s)

(113)

NPA & RECOVERY

MANAGEMENT

The core banking business is of mobilizing the

deposits and utilizing if leading to industry. Leading

business is generally encourages because it has the

effect of funds being transferred from the system to

products purposes which results into economic growth.

However leading also carries credit risk which arises

from the failure of borrower to fulfill its contractual

obligation.

Meaning of NPA ::-

An asset is classifies as non performing assets

(NPAs) if dues in the form of principle and invest are not

paid by the borrower for a period of 180 days however

with effect from march 2005 defaulters would be differs

to a borrower if dues are not paid for to days if any

advance or credit facilities arranged to that borrower is

non performing with out having any regard to the fact

that there may still exist certain advances credit

felicities having performing status.

(114)

As the Raj Bank is concerned than there is gross

NPA is “ZERO” since beginning and net NPA is also very

nearest to ZERO. Today the net NPA is 00.26%. And for

managing this NPA they constantly affording for the

best and also the have centralized department for

advances this is one of the result for having ZERO

NPAs. And before granting any loan they used to

concern the repay capacity of the applicant and for

granting the loan every branch head a power to grant

loan up to 2,00,000 lacs only.

But more tan that amount that loan only by a

permission of a main branch and management will

grant and for they used to make credit report of that

person in that report the name, history, business,

annual income and other information to be prepared by

C.A. of the bank or other staff members. And step by

step procedure takes place. And for recovery they have

very strong department. But according to them they

only care at a time of granting the loan so, they have

no need to very strong recovery and for recovery these

are the steps followed by the bank. First by the

telephone and that bank notice and than personal visit

and tan notice through advocate and lastly they do

government procedure through court.

(115)

RISK MANAGEMENT

Risk management is the strategic tool, which helps

I identifying, quantifying, monitoring and controlling

risk. Risk management protects an organization from

dying due to insolvency resulting from the adverse

effects of risk. Though universally relevant it is of

immense importance to a banking organization or

financial institution. In view of the same Risk

management is analysis here from the banking

perspective. However with large corporate house

establishing their own independent dealing rooms, risk

management systems are no longer limited to banking

organization.

Classification of Risks:-

Risk normally has to dimensions i.e. the quality of

risk and the quantity or risk. Quality of risk is essentially

the probability of the risk during into an actual loss.

Quantity of risk is the financial effect of the risk turning

into a loss. Both these dimension are extremely difficult

to measure, primarily because it is an estimation of the

future, which is highly uncertain. To understand risk

management it is extremely important to understand

the various types of risks, their characteristics and their

inter relationships.

(116)

Liquidity Risk:-

Liquidity risk is essentially a result of adverse

movements of other risks i.e. credit risk, interest rate

risk, foreign exchange risk. Small information in the

market about the liquidity problems faced by a bank

may result into withdrawal of enormous deposits,

thereby affricating the problem. Liquidity risk also

includes rising of funds at an abnormal cost to need its

commitments. Management of interest rate risk and

liquidity risk is together knows as assets liability

management. Thus asset liability management is a

subset of the whole gamut of risk management tools.

Credit Risk:-

Credit risk is the most fundamental risk faced by a

banking company. Credit risk is the risk of default by a

borrower of funds or decline in the credit standing of a

borrower. It is the most difficult to quantify due to the

large amount of subjectivity involved in it. Thus credit

risk management can assist in decision making; it can

not be a substitute to the judgmental decision of a

credit officer.

Market Risk:-

It is the risk of loss due to adverse movements in

the market rates during the compulsory holding period

having an impact on the portfolio held by market is also

important in constantly determining the true worth of a (117)

collateral security provided by the borrower. Foreign

exchange risk is often regarded as a part of the market

risk, but may be bifurcated for facilitating better

analysis.

S.

W.

O.

T.(118)

Analy

sis STRENGTHS ::-

Net NPA Zero since inception.

Professional management & Co-Operate team

spirit.

Strong Brand equity.

Fully computerization and Automation.

Respectable ranking and position in Gujarat’s top

Co-Operative banks.

Profitability and sound liquidity.

Branches in all most developed parts of

saurashtra.

WEAKNESS ::-

(119)

Lack of marketing expertise.

Lack of modern management concepts.

Sometimes communication gap is found which signs

lack of professionalism.

Lack of scheduled status which may affect expansion

of their business.

Lower volume of advances due to higher rate or

interest.

Strong need for a more disciplines, smooth and

sophisticated.

Environment for working and customer service.

(120)

OPPORTUNITIES ::-

General insurance business at higher level.

No. of branches can be increased in all overall state.

After getting scheduled status we may apply multi

state bank to expand their business.

Introduction of various retail services.

Tax consultancy can be provided by using the skills

of the professional personnel and experienced

seniors.

THREATS:-

Confidence crises in the co-operative banking sector

can disturb the bank’s progress.

Changes in govt. rules and regulation.

Cut throat competition and entry of new foreign bank

and its sound financial structure.

(121)

Futur

e

Plan

of(122)

Raj

Bank

(123)

VISION - 2010To maintain excellence in operation & management

by bringing I transparency & integrity.

To emerge as symbol of public trust & confidence by

creating a positive image.

To ensure speedy & satisfactory customer services

through continuous product innovation &

aggressive, marketing strategies.

To adopt policy for technological up gradation&

advancement to boost up total computerization &

inter branch connectivity for all the branches.

To develop & motivate human resources there by

cultivating processional culture in the banking

operations.

To strive for continuous growth & profitability

through branch expansion & modernization.

To introduce more ATM centers & various “plastic

products” for better customer services.

To maintain the asset quality at the optimum level by

continuous efforts for credit risk management.

To provide multi dimensional services to customers

by incorporating various modern service areas like

insurance, bill collection and providing one door

service to clients.

To explore more non-fund based business like latter

of credit, bank guarantee, custodial services to

increase bank’s non interest income.

To achieve business turnover of Rs.650 cores & net

worth of 80 cores by 2010.

(124)

To continue to maintain the NET NPA at ZERO level.

To plan Bank’s balance sheet with judicious ALM.

(125)

Sugge

stion

To

(126)

Raj

Bank

(127)

SUGGESTION

As improvement is a constant requirement for

every one and if we try to learn from a little things also.

Than every minute we will improve ourselves. And for

constant improvement in organization management

should keep their eye on every concern, during my visit

at bank I have tried to cover everything and according

to my knowledge I am trying to give suggestion to the

Raj bank and I am sure that it surely will be helpful in

progress of the bank.

First and foremost suggestion for Raj bank is that,

yet they are not using such marketing tools in the area

of cutthroat competition in banking sector. Each bank

should try for better and different marketing. Raj bank

should make one group of executive, who can help to

the management and can provide different services like

collection from home only and they should use such

slogan for innovative products like “only one call can

make your life better.” This slogan can be sued for

assets product. So by using not only simple

advertisement but also strategic marketing tool bank

can improve a lot in the market.

And last but not least that is there is need to

improve web site of Raj bank during my report work I

have found very poor contents in the web site of Raj

bank as Bank have their own EDP department with high

(128)

educated staff. And by creating attractive web site bank

surely will be able to create good image. And one thing

is also there should professionalism in management at

every level.

(129)

C O N C L U S I O

(130)

N

(131)

CONCLUSION

After having all the required information for

preparing my report, I have tried to analyze each and

every function of the Raj Bank. During my report all the

staff member of the Raj bank had well co-operate me.

And also I have found that the, there is a very good

level of commitment in all the staff members. During

my report I have tried to cover each functional area of

the bank and after having clear idea about everything

in the bank, I can conclude that the Raj bank is one of

the leading firm in the bank, I can conclude that the Raj

bank is one of the leading firm in the co-operative

sector, and with advanced technologies and educated

staff to trying to positioning in the banking market. But

than also due to such weaknesses of co-operative

sector Raj bank is also suffering from such limits.

So, at last we can conclude that the Raj bank is

being leader in the market and due to great leadership

of Mr. Ramnikbhai Dhami (Managing Director) bank is

getting great goodwill in the market and also great

goodwill of the other director helps director helps to the

bank in creating good image in the field of the bank.

For, better future a great success my all good

wishes always with the Raj bank. I wish them for better

achievement

(132)

(133)

B I B L I O G

R A P

(134)

H Y

(135)

BIBLIOGRAPHY

Books ::-

Human Resource Management &

Personnel Management

By :- K. Aswatthappa

Publication :- Tata Mc-Graw Hill

Marketing Management

By :- S. A. Sherlekar

Publication :- Himalaya Publication House

Finance Management

By :- B. S. Shah

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

Shah

Web Sites::- WWW.RAJBANK.NET

WWW.GOOGAL.COM

25th Annual Report Of The Raj

Bank (2004-2005)

(136)

http://www.googal.com/

http://WWW.RAJBANK.NET/

Raj Bank

Documents

share capital

public trust

human resource

regular bank

middle class

personalized

ensure speedy

apex bank