raj bank
TRANSCRIPT
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)
(LIMBASHIYA CHIRAG G.)
(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)
(LIMBASHIYA CHIRAG G.)
(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
( RBI Licence No. UBD. AH/96 Dt : 09-08-1994)
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.
At Your Service From : 16-01-1996
( RBI Licence No. UBD. AH/94 Dt : 09-08-1994)
Mr. M. K. Sheth Dy. Manager
Mr. V. K. Siddhpara Asst. Manager
7 Upleta Branch
Raj Marg, Upleta – 360 490
Phone : (02826) 222955.
At Your Service From : 15-01-1999
( RBI Licence No. UBD. AH/334 Dt : 19-06-1997)
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.
( RBI Licence No. UBD. AH/348 Dt : 25-09-1997)
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
At Your Service From : 26-01-2002.
( RBI Licence No. UBD. AH/610 Dt : 10-08-2001)
Mr. K. R. Viradia Dy. Manager
10 Raiya Raod Branch
Omkar Towers, Opp. Nirmala School.
Rajkot -7. Phone : (0281) 2589494.
At Your Service From : 27-01-2002.
( RBI Licence No. UBD. AH/608 Dt : 10-08-2001)
Mr. D. V. Maheta Manager
11 Junaghar Branch (With ATM)
“Sardar Bhavan” Maharshi Arvind Marg,
Junaghar – 362 001. Phone : (0285) 2621313
At Your Service From : 31-10-2003.
( RBI Licence No. UBD. AH/642 Dt : 28-05-2003)
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%.
As a security a person has to mortgage any fixed
assets whose reliable market value is enough in
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.
A person has to give reference of two people who
are depositor in the Raj Bank as guarantors.
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%.
As a security a person has to mortgage any fixed
assets whose reliable market value is enough in
proportion of over draft.
A person has to give reference of two people who
are depositor in the Raj Bank as guarantors.
(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%.
As a security a person has to mortgage any fixed
assets whose reliable market value is enough in
proportion of over draft.
A person has to give reference of two people who
are depositor in the Raj Bank as guarantors.
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.
Bank grants this type of loan Rs. 10,000 to
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.
A person has to give reference of two people who
are depositor in the Raj Bank as guarantors.
Loan repayment period is 3 years to 5 years.
(66)
VEHICLE LOAN
Any kind of traders, businessmen, personally,
professional or any person can get this type of
loan.
Bank grants personal loan for the purpose of
purchase old or new vehicle for personal or
business use.
Bank grants this type of loan Rs. 15,000 to
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%.
Applicants need to make such documents of
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.
Loan repayment period is 3 years to 7 years.
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, other documents specified in the
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.
Bank grants personal loan for the purpose of
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%.
Applicants need to make such documents of
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.
Loan repayment period is 3 years to 15 years.
Application form, other documents specified in the
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)