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SUMMER INTERNSHIP PROJECT

AT

JAMNAGAR PEOPLES CO.OP. BANK LTD.

ON

CUSTOMERS & EMPLOYEES PERSPECTIVE

SUBMITTED BY:

UPADHAYAY KASHYAP S.

MBA SEM III

Enroll no. 1380105920

GUIDED BY:

MISS. SUNIL POONIA

ACADEMIC YEAR

2013-15

SUBMITTED TO

PARAM INSTITUTE OF MANAGEMENT & RESEARCH

JAMNAGAR

AFFILIATED TO

GUJARAT TECHNOLOGICAL UNIVERSITY

AHMEDABAD

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DECLARATION

I undersigned UPADHAYAY KASHYAP a student of MBA declares that I

have prepared this project report on ORGANISATION STUDY OF THEJAMNAGAR PEOPLES CO-OPERATIVE BANK LTD. Under MR. NITIN H.

MEHTA at Grain Market Branch. I am also guided by Miss. Sunil Poonia of

Param Institute of Management & Research Jamnagar.

I also declare that this project report is my own preparation and not copied

from anywhere else.

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PREFACE

It gives me great pleasure to write about this company which especially

prepared with the aim to make the learning process complete with practicalknowledge in the educational program.

I had visited the Jamnagar Peoples Cooperative Bank Ltd. This project has

covered the main point which felt necessary. So from this project all can get

raw idea about the Jamnagar Peoples Cooperative Bank LTD.

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ACKNOWLEDGEMENT

It is my personal belief that no report is the result of only its authors efforts.

There are many people who contribute something or the other for achievingits purpose.

I am very much thankful to Mr. Girishbhai Mehta who has given me such a

nice opportunity to undergo the training at The Jamnagar Peoples Co-

operative Bank Ltd. and for giving me his valuable suggestions and

guidance throughout the training period. I would like to thank whole staff for

helping me in training and solving the queries.

It gives me pleasure to acknowledge Miss.Sunil Poonia of Param Institute ofManagement & Research Jamnagar, my project guide for his support and

would like to thank all my faculty members who have helped me in project. I

would like to thank my parents and friends for supporting me in everyway.

UPADHAYAY KASHYAP

(MBA SEM III)

Enroll no. 138010592034

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CONTENTS

Chapter PARTICULARS Pg. No

No.

1 Objective of study 6

2 Executive Summary 7

3 Introduction 8

(a) Company Details 11

(b) Competitors Details 19

(c ) Regulatory environment details 25

4 Organizational study 35

(i) Marketing department study 37 (ii) Human Resource Development 49

(iii ) Operation department study 56

(iv) Financial department study 61

5 Literature review 74

6 Research Study 79

(i) Data analysis and Interpretation 86

7 Future Plans 104

8 List of Charts and tables 105

9 Recommendations 106

10 Abbreviations 107

11 Bibliography 108

12 Annexure 109

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OBJ ECTIVE OF THE STUDY

The present era is of rapid growth of Economy. All sectors related with the

economy like Service, agriculture and industry are developing rapidly. In

economy the supply of money is due to the banking sector is heart of

economical development. Without under performance of bank sector in

economy no one country can continue their growth story longer. At this point

of time the other sector also play major role in development.

As government merges many regional and other banks in the SBI, it results

in the high development of SBI. The policy of banks shows the future

development of country. One example is stock of India. In 2007, banking

policy was so industry friendly that was reflects in stock exchange by

reaching at 21000 points.

I choose co-operative bank for study because of their advantages, like they

are combination of banking and co-operative activity. As their area of

operation is limited for only city so I can properly observe their work and

activity. In this highly competitive era The Jamnagar Peoples Co-operative

Bank Ltd. is on the bank has 0% NPA from last 5 years. It is the bestexample of effective management. Co-operative sector is one of the good

performers sector. It also give exposure to industry.

The M.B.A. program leads to practical performance of person and every

sector of economy is connected with the banking sector so in future every

stage we will have to depend on banking sector.

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EXECUTIVE SUMMARY

The growth in the Indian banking industry has been more qualitative than

quantitative and it is expected to remain the same in the coming years.Based on the projection made in the Indian vision 2020 prepared by the

planning commission and the draft 10 th plan, the report forecast that the

pace of expansion in the balance sheet of banks is likely to decelerate.

Present banking is different from the banking of 1980s. The future banking is

going to be still more dynamic and technology based. Bankers with

traditional qualification alone like degree in commerce, science, etc. will be

enable to cope with the fast developed surroundings. Techno savvy,energetic and young bankers are now required to cope with the situation.

The Co-operative banks have a history of almost 100 years. The co-op

banks are an important constituent of the Indian Financial System. Judging

by the role assigned to

them, the expectations they are supposed to fulfils, their numbers and the

number of offices they operate. The co-operative movement originated in the

West, but the importance that such banks have assumed in India is rarely

paralleled anywhere else in the world.

Their role in rural financing continues to be important even today, and their

business in the urban areas also has increased phenomenally in recent years

mainly due to the sharp increase in the number of primary co-op banks.

Jamnagar Peoples Co-Operative Bank is one of the best Co-operative

Banks in Jamnagar which provides highly sophisticated services. Well-

establish premises with 50 employees in 2010, the bank is now proud to

possess 3 branches (all computerised) around 50 devotes employees. Bank

got LAN system fully air -conditioned and computerized before 13 years.

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INTRODUCTION

There is no universally accepted definition of a co-operative. In general, acooperative is a business owned and democratically controlled by the people

who use its services and whose benefits are derived and distributed

equitably on the basis of use. The use-owners are called members. They

benefit in two ways from the co-operative, in proportion to the use they make

of it. First, the more they use the cooperative, the more service they receive.

Second, earning is allocated to members based on the amount of business

they do with the co-operative.

In many ways, co-operative resemble other businesses. They have similar

physical facilities, perform similar functions and must follow sound business

practices. They are usually incorporated under state law by filling articles of

incorporation, granting them the right to do business. The organisers draw

up bylaws and other necessary legal papers. Members elect a board of

directors. The board sets policy and hires run the day-to-day operations.

The Bank was formed in 1872 as the loan and Deposit Department of

Manchesters Co -operative Wholesale Society, becoming the CWS Bank four

years later. However, the bank did not become a registered company until 1971.

In 1975, the bank became the first new member of the Committee of London

Clearing Banks for 40 years and thus able to issue its own cheques.

Over the years the Bank has gained a reputation for introducing innovations

later adopted by the rest of the industry. Since 1974 the Co-operative Bank

has consistently offered free banking for personal customers who remain in

credit. It was also the first Clearing Bank to offer an interest bearing chequeaccount called Cheque & Save, in 1982. In 1991 the Bank shook the credit

card market when it introduced a guaranteed free for life Gold Visa card.

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Cooperative Principles

Various writers over the past century have analyzed and observed the

application of cooperative principles. Although slight differences in

terminology appear on the various lists, three principles emerge as being

widely recognised and practiced.

These principles are more than just good practices, policies or common

sense. They distinguish a co-operative from other kinds of business. They

are also recognised in state and federal statutes and regulations as criteria

for a business to qualify as a cooperative.

The User-Benefits Principle

Members unite in a cooperative to get services otherwise not available, toget quality supplies at the right time, to have access to markets or for other

mutually beneficial reasons. Acting together gives members the advantage

of economics of size and bargaining power. They benefit from having these

services available, in proportion to the use they make of them.

Members also benefit by sharing the earnings on business conducted on a

cooperative basis. When cooperatives generate margins from efficient

operations and add value to products, these earnings are returned to

members in proportion to their use of the cooperative. Without the

cooperative, these funds would go to other middlemen or processors.

The User-Owner Principle

The people who use a cooperative own it. As they own the assets, the

members have the obligation to provide financing in accordance with use to

keep the cooperative in business and permit it to grow. Accumulating

adequate equity is a major challenge facing many cooperatives. How thistask is accomplished is discussed later.

The User-Control Principle

As owners, a cooperatives members control its activities. This control is

exercised through voting at annual and other membership meetings, and

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indirectly through those members elected to the board of directors.

Members, in the most instances, have one vote regardless of the amount of

equity they own or how much they patronize the organization.

In some instances, high volume users may receive one or more additional

votes based on their patronage. Equitable voting is assured, often by limiting

the number of additional votes any one member can cast.

Related Practices

Certain business practices have developed that implement and facilitate

these basic principles. They further differentiate a cooperative from other

forms of doing business.

Cooperative Among Cooperative

Many cooperatives, especially local associations, are too small to gather the

resources needed to provide all the services their members want. By

working with other cooperatives through federated cooperatives, joint

ventures, marketing agencies in common and informal networks they pool

personnel and other assets to provide such services and programs on a

collaborative basis at lower cost.

These principles and practices have survived and flourished through 150 years

of continuous evolution in the business world. They remain the foundation that

supports the distinctive cooperative method of doing business.

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COMPA NY DETA IL S

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CONTENT OF COMPANY DETAILS

1. Profile of JPBL

2. History of JPBL

3. Organizational Structure

4. Vision and Mission

5. SWOT Analysis

6. Management Committees

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PROFILE OF THE JAMNAGAR PEOPLES CO-OPERATIVE BANK

J.P. BANK, AAPNI BANK

Name of the Bank : The Jamnagar peoples Co- operative Bank

Ltd.

No. Of Date of Registration : C-1916, 22nd feb, 1984

Date of Issue of Licence : 19 th Dec 1984

Area of Operation : 15 km. around, from the respective

branch

No. & Name of Branches : 1. Grain Market Branch

2. Mandvi tower Branch

3. Bedi gate Branch

4. G.I.D.C. Branch

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HISTORY OF THE JA MNAGA R PEOPLES COOPERATIVE BA NK LTD.

Due to success of Commercial Cooperative Bank by seeing the capital

requirements of SSI for the development of it and need of bank in Grain

market area, keeping as a base in the mind and efforts of Chamanlal

Raychand Sanghvi (establishment chairman) and their subordinate Nirbhay

B. Bardanwala they decided to start a new co-operative bank in the area of

Grain market, called the Jamnagar Peoples Cooperative Bank Ltd.

However , with many difficulties the bank got registered on 22 nd Feb. 1984

and Manager had received the RBI license.

There was a tremendous change within 3 to 4 years in the banks deposits,

loans and profitability. He created synergy among banks Directors, workers,

customers and shareholders. Many times the directors without any

expectations of remunerations worked united and supported for the

development of the bank. Since then the bank had never looked back and

gradually establish its position as a prominent bank of Jamnagar.

From the 1980, it has been growing. High and Quicker customer services

and the Developments of the city are the two key objectives of the bank.

Gradually they opened 3 branches in different areas of the Jamnagar; all of

them were centrally computerised and air- conditioned. In todays

Fast moving era all the branches of the bank are linked by LAN system.

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ORGANISATIONAL STRUCTURE

To understand something completely, it is necessary to include each and

every aspect required. There must be some very simple, plain method to

represent it. As a structure, organisation means an enterprise being run to

achieve predetermined goals. The method followed in the project is

Graphical Representation.

Organisational graphics also provide information based on specific functions

or departments in detail. Graphs can be expressed in the vertical or

horizontal or circular form. Jamnagar Peoples Bank ha s Line Organisation.

Organisational Graph of the bank is the vertical one and is as follows:

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CHART

HIERARCHY OF JA MNAGA R PEOPLES COOPERATIVE BANK

Board of Directors

Chairman

Vice Chairman

Managing Director

Joint Managing Director

Chief General Manager

General Manager

_______________________

Main Branch Other Branch

Manager Manager

Clerk Clerk

Sub Staff Sub Staff

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Board of Directors

Shri Pramodbhai Kothari Chairman

Rajendrakumar V. Shah Vice-Chairman

Shri Vinubhai G. Tanna Managing Director

Pranlalbhai C. Doshi Director

Nishant B. Kothari Prof. Director

Liladharbhai L. Haria Director

Bhailalbhai P. Mehta Director

Purankumar J. Ahuja Director

Damodardas M. Tanna Director

Nirubhai H. Kotecha Director

Kantibhai H. Badiyani Director

Bhagwanjibhai K. Patel Director

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S.W.O.T. Analy sis

STRENGTH

1. Motivated as well as committed and coordinate leadership and staff.

2. Transparency in operation.

3. Good Management and Well Accounting System establishment

4. Ability to bring new capabilities in human and

technology WEAKNESS

1. Having limited area for operation.

2. No branches except in Jamnagar which might be much helpful.

3. Insufficient capabilities for deposits mobilization and servicing

4. Advances are less compared to

deposits OPPORTUNITIES

1. Positive response from public, financial institution SIDBI, etc.

2. Starting of Bank assurance.

3. Development of new application for existing products.

4. More number of schemes for advances.

5. Technological innovation.

THREATS

1. Multinational and Private banks are established with huge facilities

and professional approach.

2. JPBL will be affected by HDFC, ICICI, Centurion etc banks which are

having huge capital.

3. A shifts in the consumers taste.

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COMPETITIORS

DETAILS

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CONTENTS OF COMPETITER

1. Co-operative Banks

2. Nationalized Banks

3. Private Sector Banks

4. Foreign Banks

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There are so many competitors of Jamnagar peoples Co-operative Bank Ltd.

These competitors can classified under four main group. These are as under:-

1) Co-op erative Banks

This class consists of the others co-operative banks of the Jamnagar city.These are the main and very close competitors of this bank because all that

are doing the same business as this bank is doing and providing the same

facilities as the Jamnagar peoples Bank is providing. The lists of these

banks are as under:-

$ Co. Co. Bank

$ Nawanagar Bank

$ G.I.C. Bank

$ J.D. Co. Bank

$ Jamnagar Mahila Sahakari Bank Ltd.

$ The Vardhman Co-operative Bank Ltd.

Among the above mentioned banks, the main competitors are Co. Co. Bank

and J.D. Co. Bank.

@ Commercial Co-operative Bank Ltd. (Co. Co. Bank) :

The facilities and the product those are provided by the Jamnagar peoples

Bank and this bank are almost same. As it is the very close near competitor

to the Jamnagar peoples Bank, it has to offer the same facilities and at the

rate of it. The difference is only the coverage of the area. As it has four

branches, it can cover more area for its business as compared to Jamnagar

peoples Bank.

@ Jamnagar District Co-operative Bank Ltd. (J.D. Co. Bank)

The second next close competitor is the J.D. Co. Bank. As the name

suggests, the geographical area of this bank is very wide as compared to the

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Jamnagar peoples Bank because J.D. Co. Bank is offering its services to the

rural area of the Jamnagar district.

2) National ised Banks :

The second main classification of the competitors of the Jamnagar peoplesBank is the Nationalized Banks. In this class, the Banks which are undertaken

by the Government are come. They are competitors which providing the

services throughout the country and so that become the dominant players in the

industry. In this class the below mentioned banks are come.

$ Uco Bank

$ Bank of Baroda

$ State Bank of India

$ Central Bank

$ Dena Bank

$ Vijaya Bank

$ Indian Bank

$ Bank of India

$ Corporation Bank

$ Union Bank

Among the above banks, the main competitors of the JPBL are Uco Bank

and Bank of Baroda.

@ Bank of Baroda

This is also nearest competitors to the JPBL. It also providing the same

facility as the Uco Bank is providing and moreover it has the branches in the

foreign also. So it can give the money transfer facility. It has also ATMs

facility and is giving the facility to withdraw money from any of its branch of

India as it has adopted Core Banking Solution

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@ Uco Bank

UCO Bank, with years of dedicated service to the Nation through active

financial participation in all segments of the economy - Agriculture, industry,

Trade & Commerce, service sector, Infrastructure sector etc., is keeping

pace with the changing enviornment.

3) Private Sector Banks :

The third main classification of the competitors is the private banks . This is

consists of those banks which banks holding power is in the hand of the

shareholder who has the shares more than controlling power. In this class,

the below mentioned banks are come.

$ HDFC Bank

$ ICICI Bank

$ Centurion Bank of Punjab

$ IndusInd Bank

From the above banks, the main players are HDFC Bank and ICICI Bank.

@ HDFC Bank

HDFC Bank LTD is known for its technical expertise. It maintains product

quality. Moreover it also offers products and services: Accounts & Deposits

saving, current & fixed deposits, loans, debit cards- credit cards, also

prepaid cards, Investment & Insurance, Internet banking etc.

@ ICICI Bank

ICICI Bank is spread across the country. It offers banking service like retail

banking and investment banking, life insurance and non-life insurance, etc.

To serve more to the world it strengthens its operation internationally.

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4.Foreign Banks :-

The last is foreign banks. The banks in the foreign are as follows:-

$ HSBC Bank

$ Citi Bank

$ Standard Chartered Bank

$ Duetch Bank etc.

From the above banks, the main players are HSBC Bank and Citi Bank.

@ HSBC Bank

HSBC keeps itself updated with the technology and also provides internetbanking services to the clients. It also provides services like International

accounting services, Visa cards, financial planning services, NRI services,

etc.

@ Citi Bank

Citi bank provides services like loans, citibusiness, banking-insurance

services, credit cards, investment, online services, NRI services, etc.

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REGULATORY

ENVIORNMENT

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CONTENTS OF REGULATORY ENVIORNMENT

1. Banking Regulation Act, 1949 by RBI

2. Gujarat Sahakari Mandali Act, 1961

i) RBI guideline

ii) Guideline on mergers/amalgamation UCBs

iii) Major issues face by UCBs

iv) Remedial measures initiated

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REGULA TORY ENVIORNMENT

Banks can be classified into various kinds on the basis of the specific

activities that they perform. Such as Commercial banks, Industrial banks,Exchange banks, Post Office Savings banks, Co-operative banks, etc.

Cooperative banks are set up and managed from various categories like

farmers, traders, artisans, factory-owners, etc. On the cooperative basis

these banks are given certain special concession by the government and

RBI. State Cooperative banks, District Cooperative banks, Primary

cooperative societies, Urban Cooperative banks, etc. Are examples of the

Cooperative banks in India . A separate cooperative legislation is in

existence for the efficient administration of the Co-operative banks.

Jamnagar Cooperative Bank falls under the head Co-

operative banks, and therefore, the name of the bank is Jamnagar peoples

Cooperative Bank Ltd. It is controlled by:-

1. Banking regulation Act, 1949 by RBI

2. Gujarat Sahakari Mandali Act, 1961

1. THE BANK ING REGULATION A CT, 1949:

The Banking Regulation Act, 1949, which had come into force from 1 st

march 1966, has vested the Reserve Bank with various statutory powers

of control and supervision over the cooperative banks. The power in

regard to incorporation, management, etc., of these banks, however,

continue to vest in the Registrar of Cooperative Societies of the State

concerned.

Some of the important Sections of the Act and Rules area as follows:-

The primary objective or principal business of the primary cooperatives bank

in the transaction of the banking business.

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The paid-up share capital and reserve of which are not less than 1 lakh

Rupees.

The bye-law of which do not permit admission of any other Co-operative

society as a member.

-Sec. 5

A Cooperative Bank cannot undertake trading activities.

-Sec. 8

As per the instruction of RBI the total investment of Cooperative bank in the

share of cooperative institution should not exceed 5% of subscribed capital

of the institution.

-Sec. 19

This section prohibits sanction of loans and advances on the security of its

own shares and also unsecured loans and advances to directors or the firms

or private companies in which they are interested.

-Sec. 20

The primary Cooperative banks area required to obtain prior permission of

the RBI for opening of new branches.

-Sec. 23

Every bank is required to submit to the RBI a return in the prescribed form

and manner showing its assets and liabilities as at the close of the business

on the last Friday of every month

-Sec. 27

This section gives protection to the cooperative bank in respect of any claim

made by article, made by any person other than the person who placed the

article in safe custody with it

-Sec. 45 ZD

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This section enables an individual locker holder to nominate person to

whom, in the event of his death, the cooperative bank may give access to

the locker and liberty to the remove and contents of the locker.

-Sec. 45 ZE

If any provision of this act is contravened or if any default is made in

complying with any requirements of this act or any order, or direction made

or condition imposed there under, by any person, such person shall be

punishable with fine which may extent to Rs. 50000 or twice the amount

involved in such contravention or default, where such amount is quantifiable,

wherever is more, and where a contravention or default is continuing one,

with a further fine which may extent to Rs. 2500 for everyday, during which a

contravention or default continues.

-Sec. 46(4)

2. GUJARA T SAHAK ARI MANDAL I ACT, 1966:-

The Nawanagar Cooperative bank falls within the category of the non-

scheduled urban primary cooperative banks so specific rules and regulations

for Non-scheduled primary cooperative banks are as under:

Cash Reserve Ratio:-

Every primary cooperative bank is required to maintain on a daily basis cash

reserve, the amount of which shall not less than 3% of its NDTL i.e. Its Net

Demand and Time Liability as obtaining on the last Friday of the second

preceding fortnight.

Statutory Liquidity Ratio:-

Every bank required maintaining, on daily basis, liquid assets, the amount of

which shall not less than 25% on their total NDTL in India.

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Period of Preservation of Records

To be preserved for a period not less than 10 years preceding the current

calendar year.

Ledgers and Registers

1. Cheque Book Registers

2. Delivery Order Registers

3. Demand Liabilities Registers

4. Demand Remittance Dispatched Registers

5. Demand Remittance Received RegistersRecords other than Registers

1. Telegraphic Transfer Confirmations

2. Telegrams and Telegram Confirmation

3. To be preserved for a period not less than eight years preceding the

Current calendar year.

Ledger and Registers

1. All personal Ledgers

2. Loans and Advances Registers or Ledgers

3. Call, short or fixed Deposit Registers

4. F.D. Register

5. Draft, TT and Mail Transfer Register6. Remittance Register

7. Bills Register

8. Clearing Register

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RBI GUIDELINES

The RBI issued a Vision Document for the Urban Cooperative banks.

Cooperative banks have to contribute voluntarily to a funding agency that willfinance the weak urban cooperative banks. The regulation of the sector and

consolidation in the Vision Document prepared by its on Urban Cooperative

Banks.

Urban cooperative banks and Insurance business:-

The RBI had permitted financially strong scheduled primary cooperative

banks (urban) having a minimum net worth of Rs. 100 crore as per the latest

RBI inspection report and complying with certain others norms to undertakeinsurance business as a corporate agent without risk participation in the

month August. After revealing the situation, the RBI has further decide to

allow scheduled primary (urban) cooperative banks having a minimum net

worth of Rs.50 crores instead of Rs.100 crores as at present, to undertake

insurance agency business without obtaining prior permission of RBI.

All primary (Urban) Cooperative Banks can undertake insurance business on

a referral basis, without any risk participation so network of branches. Under

the referral arrangement , banks provide physical infrastructure within there

network of branches and also to their selected branch premises to insurance

companies for selling the insurance products to the banks customers with

adequate disclosure transparency and in turn earn referral fees on the basis

of premier collected. The banks need not obtain prior approval of RBI to

undertake referral business.

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GUIDELINES ON MERGERS/AMA LGA MATION FOR UCBs

According to the guidelines, the RBI will consider proposal for merger and

amalgamation in the urban bank sector under following circumstances:-

Application for merger having the proposed scheme has to be submitted by

the banks, concerned with the Registrar of Cooperative societies/ Central

Registrar of Cooperative Societies (RCS/CRCS). The acquirer banks also

has to forward a copy of the scheme to the RBI along with the draft scheme,

valuation report and other information relevant for consideration of the

scheme of merger.

The RBI will examine the scheme with reference to the financial aspects andthe interest of the depositors based on the criteria/factors and convey its

decisions to the concerned states RCS and in case the acquirer is the multi -

state cooperative bank it conveys its decision to the CRCS and RCS of the

state in which the acquired bank is situated. The Registrars to comply with

the due process prescribed in the Statues before they seek its approval, as

they are the authorities vested with the responsibilities of administering the

acts. They would also ensure compliance with the statutory procedures for

notifying the amalgamation after obtaining the sanction of the RBI.

THE MAJOR ISSUES FACED BY UCB s

Problems relating to share capital are unique to the cooperative banks due

to their nature/restrictions laid down by law, which includes:-

1. Limit on individual share holding

2. Shares of urban cooperative banks cannot be traded in the stock

market.

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3. Shareholders can demand banks to repurchase their shares at any

time.

REMEDIAL MEA SURES INITIATED BY RBI

In order to address the issues of dual control, deficiencies in governance,

lack of professionalism, low technology levels and related issues, the

Reserve Bank adopted a multi Formulation of Vision Document.

The Reserve Bank formulated a draft vision document, placed it in public

March 2005 and finalized it thereafter, with the following objectives:-

1. To rationalize the existing regulatory and supervisory approach

keeping in view the heterogeneous character of entities in the sector.

2. To facilitate a focused and continuous system of supervision through

enhanced use of technology.

3. To enhance professionalism and improve the quality of governance in

UCBs by providing training for skill up gradation as also by including

large depositors in the decision making process/management of banks.

4. To put in place a mechanism that addresses the problem of dualcontrol, given the present legal framework, and the time consuming

process in bringing requisite legislative changes.

5. To put in place a consultative arrangement for identifying weak but

potentially viable entities in the sector and provide a framework for

their being nurtured back to health including, if necessary, through a

process of consolidation.

6. To identify the unviable entities in the sector and provide an exit path

for such entities.

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ORGANISATIONAL

STUDY

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CONTENTS OF ORGANISATIONAL STUDY

1. Marketing department

2. H.R. department

3. Operation department

4. Finance department

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MARKETING

DEPARTMENT

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CONTENTS OF MARKETING DEPARTMENT

1. Introduction

2. Marketing scenario-segmentation

3. Targeted market and position

4. Product detail and product performance

5. Pricing policy

6. Price in bank and product costing

7. Pricing policy of bank

8. Promotional tools

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INTRODUCTION

Marketing is societal process by which individuals and groups obtain what

they need and want through creating, offering, and freely exchangingproducts and services of value with others.

JPB is service sector firm providing satisfactory services to its customers since

last 25 years. Being a J.P. BANK, AAPNI BANK it has created a positive

impression in the minds of people. By the name itself people doesnt ask any

other question and willingly ready to do the transaction with the bank.

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MARK ETING SCENARIO SEGMENTATION

Marketing segmentation is essentially a classification task done on the basis

of some variables i.e. differences in the preferences, characteristics orresponses to marketing mix offers. The major bases for the classification are

geographic segmentation, demographic segmentation, behavioural

segmentation, volume segmentation, etc.

For the Jamnagar peoples Cooperative bank ltd, the segmentation is based

on the basis of the demographic basis which includes age, gender, family,

size, income, social level, occupation, education, professional, etc.

Example.

On the basis of the deposits, JPBL provides as under:-

For earning regular income recurring is provided

For earning compounded interest reinvestment is provided.

Target Market An d Posi t ion ing

One of the main concept of whole marketing is known as TARGET

MARKET. The concept is derived from the need of identifying the real

customer. With target marketing a marketer can easily sell his product and

thus result in to decreasing rates of losses and time consumption.

Positioning is the act of designing the companys offering and image to

occupy a distinctive place in the target markets mind.

The target market for different products is different in case of JPBL. For different

products of deposits the target customers are also different such as:-

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Salaried income earners are target customers for recurring deposits.

Targeted customers for the deposits like Reinvestment and fixed

deposits are the persons who are having free money with them forlonger period of time. If they dont require. Money for long time then

they can get compound interest in Reinvestment Deposits at thesame rate as fixed deposits.

For the current deposits the target market is merchants andbusinessmen. Thus the target market for deposits is also different.

PRODUCTS DETAILS AND PRODUCT PORTFOLIO

A Product is anything that can be offered to a market to satisfy a want or

need. Products that are marketed include physical goods, services,

experiences, events , persons, places, properties, organisation, information

and ideas. Marketers have traditionally classified products on the basis of

characteristics like durability, tangibility, and use. Each product type has an

appropriate marketing-mix strategy.

The JPBL provides many services to different people who either want finance or

give deposits etc. The main services that any bank is to accept deposits and

lending and giving loans and advance. They pay certain interests to deposits

holders and they charge higher interest from loan takers. The difference

between both the interest rates is the gross profits of the bank.

The JPBL provides following kinds of services in different ways to different

people which are as under:-

1. Acceptance of deposits:-

There are different kinds of deposits which bank accept and pay interest at

different rates. The rates are decided by time or period of deposits, and the

purpose of deposits.

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In the following way JPBL accepts deposits and has respective interest rates:-

Current deposits NIL

Savings deposits 3.5%

Term deposits 5 to 9%

Minimum amount for 30 days to 90 days. In the above term deposits different

term deposits schemes are there and so interest rates itself are different

i) Current deposits

A current deposit is a running and actives account that may be operated

upon any number of times during a working day. There is no restriction on

the number and the amount of withdrawals from a current account. Currentaccounts suit the requirements of big businessmen, joint stock companies,

institutions, public authorities and public corporations, etc. Whose banking

transactions happen to be numerous on every working day.

ii) Saving deposits

A savings bank account is meant for the households of the lower and

middle classes who wish to save a part of their current incomes to meet

their future needs and also intend to earn an income from their savings.

The rate of interest payable by the banks on deposits maintained in

savings accounts is prescribed by the Reserve Bank. With the wide

extension of banking facilities during the last few decades and the growth

of banking habit amongst the people, the savings deposits of all the

scheduled commercial banks have gone up substantially.

iii) Term deposits

It is based on the income of the person for e.g. Recurring Deposits are

generally for fixed salaried persons, term deposits like reinvestment deposits

and fixed deposits are based on time basis for e.g. from 3 months to 39

months. So these deposits do not have specific target customers.

a) Fixed deposit:-

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This is the deposit in which the investor can withdraw interest at the end

of the each month. We can also say it as monthly income deposit. In this

deposit, the investors are getting only simple interest. This is mostly used

by the customers who require regular income.

b) Reinvestment deposit:-

This is the deposit which is decided to invest for the predetermined

certain period. On this deposit the investors are getting the interest on the

compounding basis. In this kind of deposit the investors cannot withdraw

any amount before the maturity date or they have to bear the loss of

some interest.

c) Double Deposit:-

It is a fixed deposit whose maturity time is the time equal to getting it

double. The investors cannot get flexibility for the time period to invest.

This is preferred by the customers who are having money on hand in idle

condition for long time or want to have a double amount as a purpose of

saving as long term investors.

d) Recurring deposit:-

This is the deposit in the investors have to invest at the end each month. Inthis type of deposit also they are getting the interest on the compounding

basis on the increasing amount as it is increasing at each month. This kind

of deposit is preferred by the investors who cannot make the huge

investment at the same time but can invest on the monthly basis.

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Term Deposits interest

...Periodfrom ...Periodto General Sr. Citizen

30 Days 90 days.... 4.50% --------

91 Days 180 days.... 5.50% --------

181 Days 1 Year 6.50% --------

Above 1 Year 2 Year 7.00% 7.50%

Above 2 Year 3 Year 7.25% 7.75%

Above 3 Year --------- 7.50% ---------

Saving Deposit --------- 3.50% ---------

Table no. 1

Senior citizen 60 year and above

Single deposit of Rs 15.00 lakhs & above 0.50% extra

Single deposit of Rs 15.00 lakhs & senior citizen only one benefit.

Deposits and loans and advances have a different segmentation as

described. Thus bank has proper market strategy for different segments.

2. Other Facilities:-

Issuing drafts, cheque collection of bill, issuing a letter of credit guarantee etc.

Bills Purchase/Bills Discount:

This is also providing the facility to encash outstanding bills before the

maturity of the bills. They are doing this in two ways, firstly bills purchase as

they are purchasing the bills from the Traders and take the responsibility toget payment from the counter party. And secondly they discounting the bills,

means they are giving the money in against of bills of the traders and get it

back at the time of payment from the counter party.

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JPBL has a kind of contract with other banks, which are in other cities.

If the cheques of outstation are received then they have to go as per

contract. Cheques of the cities in which it has contract will definitely be

cleared within 10 days. It sends cheque through courier services in cities it

has a contract and other cities through Registered A.D. post. It deductscommission from the amount as its charge. Collection of bills procedures are

also collected as the same way.

3. Loans and Advances

1. Cash Credit

CC against stock and book debt is generally given to themerchants, sole-proprietors, partnership firms and companies.

- Every year renewal is compulsory.

- Up to Rs 10, 00,000 interest @ 12.5%

- Above Rs 10, 00,000 interest @ 12%

- Maximum limit is Rs 40, 00,000

2. Housing Loan/ Property Purchase Loan/ Commercial Property Loan:

This loan is given to the general public for purchasing the property.

- 70% of contract of purchased property is given to the person by

the bank

- Interest rate on housing loan 11%

- Loan amount should not exceed 20 times of monthly income of

the person.

3. Commercial Vehicle:

This loan is given to person concerned in the

Occupation of transportation. It is also given to the

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general public.

- Interest @ 12%

- Repayment Period 36 months

4. Special Loans for Professional Persons:-

This loans is given to professional persons for purchasing consumer

goods etc. It is also called consumer loan.

- Interest @ 13%

5. Loan Against Govt. Security:

The persons who are the holder of LIC, NSC, KVP or any govt.

Security can get loan against govt. Securities.

- Interest @ 12%

6. General Consumer Loan:-

This loan is provided to the person if the director or the other well

known provides the partys reference.

- Interest @ 10.5% (for members)

- Interest @ 12% (for others)

7. Loan against Clean Overdrafts:

This loan is provided without any submission of security by the

shareholders.

- Interest @ 15%

8. Bajpai/ Bankable scheme:

This type of loan is given for special purpose and it is given as

bankable loan.

- Interest rate @ 16%

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Pricing Policy

Price is the marketing-mix element that produces revenue. Price is also one

of the most flexible elements that can be changed quickly, unlike product

features and channel commitments. Price is set independent of the rest of

the marketing mix rather than as an intrinsic element of the marketing-

positioning strategy.

The organisations would select a pricing method that includes one or more

of the three Cs the customers demand, the cost function and the

competitors price .

Pr ic ing in the bank and produc t cos t ing

During last few years, banking worldwide has undergone a tremendous

change particularly; in India it has witnessed lots of change in the recent

past with the beginning of the Globalisation and Liberalisation. In the

Wake of fierce competition, the banks have to take into account the

techniques, which aims at providing the best services at the lowest prices

to the customers to withstand competition.

Pricing polic y in the bank

After liberalization and deregulation, in the banking industry, all the banks

and financial institutions are now free to quote their own rates and prices for

their products, subject to however certain caps imposed by regulatory body,

i.e. the RBI. For pricing the various products, the banks have to take into

consideration the rate of interests being charged be their competitors.

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Promot iona l Tools

The marketing communication mix consists of five major models of

promotional tools. They are as under:-

1. Sales Promotion :-

A variety of short-term incentives to encourage trial or purchase of a

product or services.

2. Public Relations and Publicity :-

A variety of programs designed to promote or protect a companys

image or its individual products.

3. Personal Selling:-

Face to face interaction with one or more prospective purchasers for

purchase of making presentations, answering questions and

procuring orders.

J.P. Bank is very powerful in providing proper services to the customers and

so does not need aggressive advertising as it has enough customers and

deposit holders. The main drawback of the JPBL is that it does not have

branches outside Jamnagar. Thus, JPBL does limited advertisement in thefollowing ways:-

J.P. Bank advertises through some social or religious programs by

distributing pamphlets or rather sponsors part or the whole programmers like

seminars, functions, etc. It distributes yearly calendars to the shareholders

and directors. It sometimes advertises through local newspapers and cable

channels.

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HUMA N RESOURCE

DEPARTMENT

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In t roduc t ion

An organisation is made up of four resources, namely men, materials,

money and machinery. Of these, the first one is living one, i.e. human andthe other three are non-living i.e. non-human. It is the human/people are the

most significant resources in an organisation. Human resources are

heterogeneous in the sense that they differ in personality, perception,

emotions, values, attitudes, motives, and modes of thoughts.

Human Resource Management can be defined as a process of procuring,

developing and maintaining competent human resources in the organisation so

that the goals of an organisation are achieved in an effective and efficient

manner. In short, HRM is an art of managing people at work in such a manner

that they give their best to the organisation for achieving its set goals.

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Recrui tment and Select ion

Recruitment is understood as the process of searching for and obtaining

applicants for jobs, from among whom the right people can be selected.Recruitment represents the first contact that a company makes with potential

employees. It is through recruitment that many individuals will come to know

a company, and eventually decide whether they wish to work for it.

Recruitment can be defin ed as the process of finding and attracting capable

applicants for employment. The process begins when new recruits are

sought and ends when their applicants are submitted. The result is a pool of

applicants from which new employees are selected.

The process of recruitment and selection is a longer one so it is not done

frequently, while in JPBL. In JPBL, there is no recruitment process is done since

long time. JPBLs staff is well -experienced and work oriented so there is no

change in staff persons and also there is no any person leaving the JPBL since

very long time. In short, JPBL do the recruitment process very rarely.

Training

Successful candidates placed on the jobs need training to perform their

duties effectively. Training refers to the process of imparting specific skills.

Training is any attempt to improve current or future employees performance

by increasing an employees ability to perform through learning, usually by

changing the employees attitude or increasing his or her skil ls and

knowledge.

The training programme of JPBL is as follows:

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There are specific rule to provide training to the employees. General Manager

decides the employees who require training and he will be sent for it.

Mainly there are 3 training centers where the employees of the Jamnagar

peoples Co-operative Bank Ltd. are sent. They are as under:

1. Uday Bhanshiji Cooperative Management Gandhinagar

2. National Institute of Cooperative Management Gandhinagar

3. RBI Pune

Performance Appraisal

Performance Appraisal is an objective assessment of an individuals

performance against well defined benchmarks. It can be defined as the

systematic evaluation of the individual with respect to his or her performance

on the job and his or her potential for development.

In the performance appraisal generally regularity of the attendance, initiation,loyalty, area of interest, accuracy of work, leadership abilities, cooperation,

judgement, versatility, supervision, dependability, initiative, job knowledge,

quality and quantity of output, etc. Is evaluated.

The performance appraisal at the JPBL is as follows:-

General Manager is the person who does performance appraisal of the

officers of all the branches and Performance appraisal of General Manager

is done by the Managing Director/ Chairman. But the appraisal is done only

once in a year.

By Performance appraisal, the person is motivated and also be promoted.

Thus, this is the most important part of the Human Resource Management in

any type of the organisation.

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Promot ions , Demot ions A nd Transfers

A promotion means an improvement in pay, prestige, position and

responsibilities of an employee within his/her organization. A mere shifting of anemployee to a different job which has better working hours, better location and

more pleasant working hours, better location and more pleasant working

conditions does not amount to promotion. The new job is a promotion for the

employee only when it carries increased responsibilities and enhanced pay.

Promotion means: - One step high in salary, in status, in responsibility, etc.

Demotion is nothing but totally opposite of Promotion.

Transfers involve a change in the job without change in position, pay or responsibilities. Transfers are frequent but not promotions. Thus transfer if

Shifting of person from one location to another.

The Promotion, Demotion and Transfer done at Jamnagar Peoples

cooperative bank Ltd. is as follows:-

Generally the authority to promote or demote the employees is with

staff committee. At present there are 7 members in the committee. They are

:-Chairman, Vice-Chairman, Managing Director, Joint Managing Directorsand other three directors. So they are the deciders of the Promotion and

Demotion of the employees.

Authority of transfers of employees and officers are with the Chairman,

Vice-chairman, Managing Director and Joint Director, out of these four, two

takes decision of the transfers.

Thus, Board of Directors of the Jamnagar Peoples Cooperative Bank

Ltd. decides about the Transfers, Promotions and Demotions.

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Detai ls A bou t The H.R. Of The Jamnagar Peoples Coo perat ive

Bank

Timings : 10.00 a.m. to 2.30 a.m.

03.15 p.m. to 5.30 p.m.

Break Time : Between 2.30 p.m. to 3.15 p.m.

The staff of bank has to come at bank before 9.30 a.m. And have a clear the

pending work first, if any before 10.00 a.m. The office is open from 10.00

a.m. to 7.00 a.m.

The staff of bank has been divided into 3 categories, which are as follows

with their numbers.

Sr. No. Category Numbers

1. Officer & Manager 9+4

2. Clerk 27

3. Sub-staff 10

Total 50

The bank provides for its staff a conductive work culture and high level of

motivation to its valued employees. The bank endeavours to recruit a high

calibre people through a tough recruitment process. It is noteworthy that all

employees (except peon) are graduates and post graduates in commerce.

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OPERATIONS

DEPARTMENT

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Introduction:-

An operation by formal definition is a process of changing inputs into

outputs, with the creation or adding of value to some entity. The growth of

service industry has brought with it the term operation management

Location details:-

Location is the place where the bank is actually situated. The Jamnagar

peoples co-operative bank is located in Jamnagar and operates at 15kms,

around from the respective branches. The head office of the Jamnagar

peoples co-operative bank is at grain market.

The main reason behind the success of the bank is its location.It covers almost all the well known areas of Jamnagar. No matter

wherever the customer lives in Jamnagar.

There are 4 branches of JBPL. They are:-

*Grain market branch (Main branch)

* Mandavi tower branch

* Bedi gate branch

* G.I.D.C. Phase-2 branch

Layout Details

Layout refers to a plan of an optimum arrangement of facilities

including personnel, operating equipment, storage space, material handling

equipment and all other supporting services along with the design of the best

structure to contain all these facilities. This aspect is more relevant to themanufacturing sector than the banking sector.

The main work carried to in the bank is related to cash receipts, cash

payments, deposits, loan and advances, investments and clearing. Among

these, the departments of cash receipts, cash payments, clearing and

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deposits are located at ground floor in the main branch i.e. grain market

branch.

The other department like loans and advances, Investment, Fund

management, Electronic Data Processing (EDP) departments are located at

the first floor of the bank where direct public dealing is less. The directors

room is also situated at the first floor where important meetings are held.

The most important work of the JBPL i.e. of controlling of all the branches of

JBPL is done in EDP department at the main branch.

Production Planning And Control (PPC)

PPC is one of the most important tools in the Operation

management. In this concept, planning and controlling of the product

is done. Planning is deciding in advance on from past experience and

future predictions.

Production planning and control function is the nerve centre or

heart of the production/operations management function. It co-

ordinates all the phases of the production/operation system. An

efficient production planning and control functions results in higher

quality, better utilization of resources, better customer services, lower

capital investment and higher customer satisfaction.

In banking sector, products mean deposits and loans and

advances. Planning of such products is done jointly by the Board of

directors and General Manager of the bank under the rules and

regulations described by regulatory authorities like RBI and Co-

operative society and Banking Regulation Act.

There is proper and adequate control on it in JPBL. Banking

operations runs smoothly and the ratio of loose and wastages

decreases due to it. So, this performs an important role in the banking

sector. The control of all the branches as well as of the head office is

done by the EDP department which is located at the main branch i.e.

Grain market Branch.

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Maintenance

Record keeping and maintenance plays an adequate role in the

bank. If the data is maintained adequately than it will be helpful at the right

time. Hard work will not be fruitful until proper records are maintained than it

creates threats of:-

Data Redundancy

Misplacement of data

Theft of the data

Misuse of data

For the protection of above threats proper maintenance of the data arerequired. In the Jamnagar peoples Co-operative Bank Ltd., data are backed

up and interchanged among various branches for proper maintenance.

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FINANCE

DEPARTMENT

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Contents Of Finance Department

1. Introduction

2. Acquisition

3. Utilisation of Funds

4. Financial Statement

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In t roduc t ion

The general meaning of financial management is to manager for raising

fund. This has undergone change while evolution has taken place. Inbroader sense it is treated as to procure fund and to use it effectively.

Financial management relates to relation between finance and economics

and accounting decision making for financial operations, its objectives and

functions.

Its detailed analysis includes financial analysis, risk analysis, capital

structure and measurement of cost of capital, merger, and acquisition,

working capital financing, management of cash and market securities.

In JPBL, separate finance department is there under which various financial

activities are carried out. The bifurcations of activities that are carried in

finance department of JPBL are as follows:

Preparing of annual accounts

Reconciliation of branch account with head

office. Government securities back office work.

Dealing with other banks

Licensing with RBI

Auditing

Audit compliances to statutory auditors and with

RBI To decide accounting policy

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Acquis i t ion Of Funds

Financing is an important function of any business undertaking. It deals with

the acquisition of funds and its effective utilization. So, acquisition of funds is

the first and foremost requirement of any business.

The main aim of finance is to access the financial needs of an enterprise and

then finding out suitable sources for raising them. The sources should

commensurate with the needs of the business.

As bank is a financial institution, here at Jamnagar Peoples Co-operative

Bank, the main source of the procurement of funds is Deposits. There are

many types of deposits in the Jamnagar Peoples Cooperative Bank. Details

of it are as follows:-

1. Opening Of Deposits Account

The JPBL opens the account according to the rules of RBI. Complete

address of the depositors is recorded in the books as well as in the

forms for the opening the account, so parties could be traced without

difficulty in case of need. There have been instances of opening

deposits account with vague or fictitious addresses, indicative of

deposits held in benami or fictitious names, with a view to escapefrom the provision of the income tax have been found.

Banks are also advised by the RBI to incorporate a certificate in the

account opening forms to be given by the introducer conforming the

identity, occupation and address of the person when he open the

account.

In terms of the instructions issued by the RBI, banks are, require

treating introduction as not merely a formality but a measure of safeguard against opening of accounts by the undesirable persons or

opening of account in the fictitious names. The bank is required to

obtain the photographs of account holders authorised to operate the

accounts and get there address verified independently.

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Besides the bank is required to keep a close watch on the operation

and monitor cash deposit /withdrawals for rs 10 lakhs and above in all

the deposits and other operative accounts

2. Calculation of demand and time liabilities

a) Time liabilities:

Time liabilities are for the long term period and are to be return during

the maturity period. Average of the monthly balances at the end of the

month shall be treated as time liabilities.

Items included in the time liabilities:

Fixed deposit

Re investment deposit

Recurring deposit

Double deposit

b) Demand liabilities

Demand liabilities are for the short term period. The concept of the

demand liabilities suggests that deposits are given to the

depositors when it is demanded that is to maintain the liquidity of

such deposits.

Items included in demand

liabilities: Current deposit

Over due deposit

Nominal deposit

Payable account

All co-operative banks can work out at the end of March and

September each year, the amount of the time liability and demand

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liability as stated above, average of forthrightly saving deposits in next

six months.

Thus acquisition of funds is very important and in JPBL the fund is

procured in above ways.

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Uti l isa t ion of funds

Finance management means to procure finance, to make proper use of

finance and to make proper distribution of it. Though raising of funds is

important but their effective utilization is more important. The funds should

be used in such a way that maximum benefits are derived from them. The

returns from there use should be more than their cost. It should be ensured

that funds do not ideal at any point of time. The funds committed to various

operations should be effectively utilized

The JPBL utilizes its funds as follows:

1. Through investments

2. By giving lone advances

1. Investment:

i) Classification of investment:

Banks are required to classify the entire investment portfolio as on

31 st-march under three categories.

a. Held to maturity

b. Held to trading

c. Available for sale

A. Held to maturity:

Securities acquired by the bank with the intention to hold them

up to maturity will be classified under held to maturity

B. Held to trading:

Securities acquired by the banks with the intention to trade

by taking advantage of short term price. Interest rate

movement will be classified under held for trading.

C. Available for sale:

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based on total time and demand liabilities and instead fixed prudential

exposure limits based on capita funds as indicated below.

a. Ceilings:

The exposure limits shall not exceed 20% of capital funds incase of individual borrower and 50% in case of group borrower.

b. Exposure:

Exposure shall include funded and non funded credit limits and

underwriting and similar commitments. The sanction limit or out

standing which ever are higher shall be reckoned for arriving at

exposure limit. However in respect of non funded credit limit

only 50% of such limits or outstanding, which ever is higher,need be taken into account for the purpose.

Maximum limits for loans and advances

Sr no. Type of loan Margin % Maximum limit in

rs

1. Cash credit 30 to 45 40 lakhs against stock

2. Personal housing 30 10 lakhs

loan

3. Loan to industrial 30 to 50 10 lakhs

units for godown

4. Loan to trader for 30 10 lakhs

shop or fixed

assets 5. Loan to industry 30 40 lakhs

units for

machinery,

vehicles etc

6. Consumer loan to:

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Share holder

Nominal share 30 1 lakhs

holders

Sub limit: 30 50 thousand

Television Motorcycle 30 15 thousand

Other consumer 30 40 thousand

loan

furniture

30 50 thousand

30 50 thousand

7. Loans for goods 30 70 thousand

rickshaw

8. Clean cheque 1 lakh

purchase

9. Documentary bills 15lakh

payable or

discount

10. Clean over draft 20 thousand

11. Bank draft and No limit

cheque of gov

dept, public corp.

Table no. 2

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Financial s tatements

A financial statement is a collection of data organised according to the

logical and consistent accounting procedures. Its purpose is to convey and

understanding of some financial aspects of a business firm.

Thus the term financial statement generally refers to the two statements:

1. The position statement or the balance sheet

2. The income statement or profit or loss account

Balance sheet and Profit and loss account are shown in annexure is

in page no 112

First the statement is presented below in the form of table showingresult of last 5 years starting from 2005-2006 to 2009-2010

Particular 07-08 08-09 09-10 10-11 11-12

Paid up 65,39,000 70,39,000 80,30,000 100.29,000 102,83,000

capital

Reserves 11,27,60,000 11,46,89,000 11,83,39,000 1225,25,000 945,10,000

Deposits 34,92,96,000 38,62,95,000 44,97,47,000 4414,43,000 4535,49,000

Loan and 15,86,77,000 17,10,01,000 19,69,25,000 2605,75,000 2638,70,000

advances

Net profits 29,52,000 34,73,000 37,10,000 NIL 17,74,000

Audit class A A A A A

Performance of last f ive year Table No.3

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Distribution of profit of the JPBL

Every organization mainly gives priorities to these three works:

1. Procurement of funds

2. Maximum utilization of funds

3. Distribution of profit

Distribution of profit of 2014

No. particular %of profit amount Amount

Net profit 40,91,520

1 Reserve fund 25 10,22,880

2 dividend 12 14,75,103

3 Education fund 1 40,915

4 Charity fund 1 40,915 2579813

1511707

5 Urban banking equity funds 15 134697

6 Bad debt reserve 15 613728

7 Other liabilities fund 12 1475103 8 Co-op. Marketing fund 10 76329

35

9 Building fund 35 267149

10 Members welfare fund 20 152656

11 Staff welfare fund 10 76328

12 Dividend equalization fund 10 76328

13 Investment dep. fund 15 114492 1511707

Nil

Table no.4

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Branch wise details

branches Deposits Advances

Main office 2557.18 1076.93

G.I.D.C. branch 555.42 360.31

Bedi gate branch 537.10 140.22

Mandvi tower 207.92 127.21

Table no.5

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Literature review

1.Ravindra Ch it tur i

Lehigh University, Bethlehem, PA, USA with first publication rights granted to the International Journal of Design Published August 31, 2009.

In a society that offers abundant choices among products, the ability of the

consumer to make the right tradeoffs is critical to accomplishing the short-

term objectives of satisfactory task performance. The ability to make the

right tradeoffs is also critical to the long-term goals of fulfilling overall

consumption experience. Here, satisfaction with the completed task depends

on the tradeoff that maximizes the probability of fulfilling your task related

objective. Further, fulfilling emotional experience depends on the overall

emotional content of the consumption experience. However, it has been

shown that the emotional content of the consumption experience is

determined not only by the consumption of the product but also by the

knowledge about the forgone product alternative. This is especially the case

when consumption of the chosen product does not fulfill customers goals

resulting in a set of negative post-consumption emotions

2.Chieng Fayrene Y.L.,

Curtin University of Technology, Malaysia,

Goi Ch ai Lee,

Curtin University of Technology, Malaysia

International Refereed Research Journal, Research world Journal of

Arts and Science. Vol. II, Issue 1,January 2011.

The concept of customer value is becoming increasingly used in strategy and

marketing literature in recent years. Customer value is considered central to

competitive advantage and long-term success of business organizations.

Consequently, a great importance attached to this concept. This paper attempts

to build an integrative configuration of the concept of customer value

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that reflects its richness and complexity. It reviews, synthesizes and extends

the literature on the subject. The configuration includes three complementary

models, namely: customer value in exchange, customer value build-up, and

customer value dynamics. Thinking about customer value in this way is

helpful in the designing of and studying service offerings.

3.Sue Holt, Cranfield Uni versit y, Cranfield1, Australian Marketing journal

Volume 7 no.1.

This working paper outlines a doctoral research2 project on customer value

determination in business markets. In long-term business relationships,

relationship managers are a key component in delivering customer value.

The paper presents a literature review and proposes a conceptual

framework for the determination of customer-perceived value of relationship

managers in long-term business-to-business relationships.

4.Choon-Chiang Leong, (2008) "Service performance measurement:

Developing customer perspective calculators for the hotel industry", ,

Vol. Advances in Hospitality and Leisure Iss: 4, pp.101 - 120

The purpose of this research was an attempt to improve the applicability of thebalance scorecard, in particular the customer perspective, in the hospitality

industry. The objective of the study was to investigate a more structured

customer-centric performance measurement framework customized for the hotel

industry. Hence, this paper presents the Customer Calculator which had been

developed based on the Customer Equity model proposed by Rust et al.

(2000a). Qualitative examinations by interviewing hotel management were

conducted to test the applicability of the customer-centric measurement

framework. The customer scores facilitate hotel decision-makers who canpinpoint the important drivers of customer relations, which are in need of further

action and improvement. The framework can also be employed by the

stakeholders to assess hotel performance in general.

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5.Linda Honold, (President of Empowerment Systems and is based at

Milwaukee, Wisconsin, USA), MCB UP Ltd

Employee empowerment as a term is frequently used in management

circles. In practice, however, it is a daunting effort to find an exact definition

of it. There are hundreds of articles on the topic. Some attempt their own

definition; others expect that the reader already knows what the concept

means. What is employee empowerment? What are its roots? What do the

various theoretical voices have to say about the concept? An exploration of

these questions is the content of this article.

6.Paul M. Muchinsky, Iowa State University

USA Published by Elsevier Inc . Journal of Vocational Behavior

The purpose of this paper is to review the literature on employee

absenteeism as a form of withdrawal behavior apart from turnover. Studies

examining the psychometric properties of absence measures are reviewed,

along with the relationship between absenteeism and personal, attitudinal,

and organizational variables. Studies exploring the relationship between

absenteeism and turnover are examined according to the unit of analysis

studied in the research. Programmatic efforts to reduce employeeabsenteeism are also reviewed. Throughout the paper emphasis is placed

on the indices used by investigators to measure absenteeism, and the

problems that have arisen in the literature through the use of multiple

indicators of absenteeism. The review concludes with suggestions for

research that are of both theoretical and practical concern.

7.Philip M.; MacKenzie, Scott B.; Lee, Jeong-Yeon; Podsakoff, Nathan

P. Journal of Applied Psychology, Vol 88(5), Oct 2003, 2011 American

Psychological Association | PDF documents require Adobe Acrobat

Reader. Common method biases in behavioral research: A critical

review of the literature and recommended remedies.

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Interest in the problem of method biases has a long history in the behavioral

sciences. Despite this, a comprehensive summary of the potential sources of

method biases and how to control for them does not exist. Therefore, the

purpose of this article is to examine the extent to which method biases

influence behavioral research results, identify potential sources of methodbiases, discuss the cognitive processes through which method biases

influence responses to measures, evaluate the many different procedural

and statistical techniques that can be used to control method biases, and

provide recommendations for how to select appropriate procedural and

statistical remedies for different types of research settings.

8.Andy Neely, Mike Gregory, Ken Platts publisher Emerald Group

Publishing Limited

Purpose To review the academic literature on customer relationship

management (CRM), provide a comprehensive bibliography and propose a

method of classifying that literature.

Design/methodology/approach A range of online databases were searched

to provide a comprehensive listing of journal articles on CRM. Six hundred

articles were identified and reviewed for their direct relevance to CRM. Two

hundred and five articles were subsequently selected. Each of these articleswas further reviewed and classified. The review and classification process

was independently verified. All papers were allocated to the main and sub-

categories based on the major focus of each paper.

Findings Papers and research on CRM falls into five broad categories (CRM

General, Marketing, Sales, Service and Support, and IT and IS) and a

further 34 sub-categories. The most popular areas covered by the papers lay

in the sub-category of CRM management, planning and strategy; and CRMgeneral, concept, and study followed by papers in software, tools and

systems; data mining, knowledge management, and e-commerce.

Originality/value This is the first identifiable academic literature review of

CRM research. The bibliography provides an academic database of the

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literature between 1992 and 2002 covering 89 journals. The classification

approach provides a means to conceptualise the coverage of CRM and the

relative popularity of CRM topic areas.

9.Richard Petty, James Guthrie 2011 Social Science Electronic

Publishing, Inc

The rise of the new economy, one principally driven by information and

knowledge, is attributed to the increased prominence of intellectual capital (IC)

as a business and research topic. Intellectual capital is implicated in recent

economic, managerial, technological, and sociological developments in a

manner previously unknown and largely unforeseen. Whether these

developments are viewed through the filter of the information society, the

knowledge-based economy, the network society, or innovation, there is much tosupport the assertion that IC is instrumental in the determination of enterprise

value and national economic performance. First, we seek to review some of the

most significant extant literature on intellectual capital and its developed path.

The emphasis is on important theoretical and empirical contributions relating to

the measurement and reporting of intellectual capital. The second part of this

paper identifies possible future research issues into the nature, impact and

value of intellectual management and reporting.

10.Stacy E. McManus and Joyce E. A. Russell

Department of Management, The University of Tennessee Academic

Press .

Journal of Vocational Behavior

This article describes literature from several domains in organizational

psychology and vocational behavior in an attempt to advance theory buildingand research in the area of mentoring in organizations. Relevant research

from leader member exchange theory, organizational citizenship behavior,

social support, and socialization is reviewed in order to understand the

theoretical nomological network of mentoring. Propositions for future

research on the topic of mentoring are provided.

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RESEA RCH STUDY

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RESEARCH METHODOLOGY

The term Research is used to describe an entire collection of information

about a particular subject. Research is defined as human activity based on

intellectual application in the investigation of matter. The primary purpose for

applied research is discovering, interpreting, and the development of methods

and systems for the advancement of human knowledge on a wide variety of

scientific matters of our world and the universe.

Basic research (also called fundamental or pure research) has as its

primary objective the advancement of knowledge and the theoretical

understanding of the relations among variables. It is exploratory and often

driven by the researchers curiosity, interest, and intuition. Therefore, it is

sometimes conducted without any practical end in mind, although it may

have confounding variables (unexpected results) pointing to practical

applications. The terms basic or fundamental indicate that, through theory

generation, basic research provides the foundation for further, sometimes

applied research. As there is no guarantee of short-term practical gain,

researchers may find it difficult to obtain funding for basic research

Research is composed of two wordsre and search, which means to

search again, or to search for new facts or to modify older ones in anybranch of knowledge. Research is directed towards the solution of a

problem. It may attempt to answer a question or to determine the relation

between two or more variables.

Research is based upon observable experience or empirical evidence. It

demands accurate observation and description. Research strives to be

objective and logical, applying every possible test to validate the procedure

employed, the data collected, and the collection reached.

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RESEARCH TYPE

The different types of research are:

Mainly the type of research is broadly divided into three types and the

research done by here is a Descriptive type of research. Descriptive

research is used to obtain information concerning the current status of the

phenomena to describe "what exists" with respect to variables or conditions

in a situation. The methods involved range from the survey which describes

the status quo, the correlation study which investigates the relationship

between variables, to developmental studies which seek to determine

changes over time.

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Research Ob ject ive

The purpose of the research is to discover answers to questions through the

applications of scientific procedures. The main aim of research is to find out

the truth which is hidden and which has not been discovered as yet. The

primary objectives of these research is to study the perceptions of the

individual towards the co-op banks where as the secondary objectives of the

study are;

1) To find out whether the age of individual affects the decision of selecting a

bank.

2) To find out whether the occupation affects the perceptions of an individual

3) To check the percentage of the individual preferring co-op banks.

4) To identify which services of private bank of superior to co-op banks.

5) Find out the factors which the customers keep in mind while measuring

the reputation of the bank.

6) To identify the criteria which an individual keeps in mind while selecting a

bank.

7) To find out whether the response of the staff of co-op banks are better

than other banks or not.

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DATA COL LECTION METHOD .

Type of data collection method:-

1 Interview

2 Questionnaires

3 Observations

4 Experimentation

1. Interview : - The interview method of collecting data involves presentation

of oral-verbal stimuli and reply in terms of oral-verbal responses. This

method can be used through personal interviews and, possible, through

telephone interviews.

2. Questionnaires : - This method of data collection is quite popular,

particularly in case of big enquires. It is being adopted by private individuals,

research workers, private and public organisations and even by

governments. A Questionnaire consists of a number of questions printed or

typed in a definite order on a form or set of forms.

3. Observation : - The observation method is most commonly used method

especially in studies relating to behavioural sciences. Under the observation

method, the information is sought by the way of investigators own direct

observation without asking from respondent.

4. Experimentation : - This method helps us to have a proper answer of the

events done. To find the reason of the any problem the experiment is done.

Therefore the experimentation method is very useful for the data collection.

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Basic Concepts In The Context Of Testing Of Hypothesis

Basic concepts in the context of testing of hypotheses need to be

explained:-

(i) Null Hypothesis and alternative hypothesis :-

The null hypothesis is generally symbolized as Ho and the alternative

hypothesis as Ha. The null hypothesis and the alternative hypothesis are

chosen before the sample is drawn. In the null hypothesis, the following

considerations are usually kept in view:-

(a) Alternative hypothesis is usually the one which one wishes to prove

and the null hypothesis is the one which one wishes to disprove.

Thus, a null hypothesis represents the hypothesis we are trying toreject, the alternative hypothesis represents all other possilibities.

(b) If the rejection of a certain hypothesis when it is actually true

involves great risk, it is taken as null hypothesis because then the

probability it when it is true is alpha (the level of significance)

which is chosen very small.

(c) Null hypothesis should always be specified hypothesis i