Major Project (Akhil.k)

A STUDY ON LOANS AND DEPOSITS IN CHERPALCHERY
SERVICE CO-OPERATIVE BANK LIMITED,

CHERPALCHERY
MAJOR PROJECT REPORT
Submitted to
UNIVERSITY OF CALICUT
In partial fulfillment of the requirement for the award of degree of

MASTER OF BUSINESS ADMINISTRATION (MBA)
Submitted by
AKHIL K
4th semester MBA
(REG. NO. LCANMBA 013)
Under the guidance of

Dr. JESSY GEORGE
ASSOCIATE PROFESSOR
LEAD COLLEGE OF MANAGEMENT
(Affiliated to University of Calicut)
Dhoni, Palakkad
JUNE 2015
DECLARATION
I Akhil. K, hereby declare that this dissertation entitled A STUDY ON LOANS AND
DEPOSITS IN CHERPALCHERY SERVICE CO-OPERATIVE BANK LIMITED,
CHERPALCHERY submitted in partial Fulfillment of Master in Business Administration of
Calicut University is a record of independent research work carried out by me under the guidance
of Dr. Jessy George, Associate Professor, Lead College of Management, Dhoni, Palakkad.
I also declare that this dissertation is a result of my own effort and has not been submitted earlier
for the award of any degree/diploma from Calicut University or any other university.
Date:
AKHIL.K
Place: Palakkad
Reg No: LCANMBA013
ACKNOWLEDGEMENT
This project work would not have been completed without expressing hearted gratitude
to all of them.
I wish to express my deep sense of gratitude to Dr. Jessy George, Associate Professor
at LEAD COLLEGE OF MANAGEMENT for her kind support, advice and encouragement from
the beginning of the project work till the completion of the project report and she has been very
co-operative and without her valuable advices and suggestions this report would not have been
successful.
My most sincere thanks to Mr. Muraleedaran, Secretary of Cherpalchery Service Cooperative Bank, Palakkad, for their kind hearted co-operation, direction and assistance in spite of
their busy schedule which has helped me a lot in completing this report successfully.
My hearty thanks to our director Dr. K.V UNNINARAYANAN and all teaching and
non-teaching staffs for providing me with all the facilities in completing this report.
Finally, I am highly grateful to my beloved Parents, Friends and foremost, thanks to
God for helping me in successfully completing the project work and throughout my life.
AKHIL.K
LCANMBA013
CONTENT
CHAPTER
1
TITLE
1.1 INTRODUCTION
PAGE NO
1
1.2 INDUSTRY PROFILE
2-10
1.3 COMPANY PROFILE
11-21
1.4 STATEMENT OF THE PROBLEM
21
1.5 OBJECTIVES OF THE STUDY
21
1.6 RESEARCH METHODOLOGY
21
1.6.1 RESEARCH DESIGN
21
1.6.2 SOURCE OF DATA
22
1.6.3 TOOLS AND TECHNIQUES USED FOR DATA

ANALYSIS
22
1.7 SCOPE OF THE STUDY
22
1.8 LIMITATION OF THE STUDY
22
LITERATURE REVIEW AND THEORETICAL

FRAME WORK
23-36
DATA ANALYSIS AND INTERPRETATION
37-80
4.1 SUMMARY
81
4.2 FINDINGS
82-86
4.3 SUGGESTIONS
86
4.4 CONCLUSION
87-88
BIBLIOGRAPHY
89-92
APPENDIX
93-102
LIST OF TABLES
TABLE NO.
PARTICULARS
PAGE NO.
3.1
CREDIT DEPOSIT RATIO
40
3.2
TOTAL LOANS TO TOTAL ASSET RATIO
41
3.3
TOTAL BORROWINGS TO TOTAL DEPOSITS
42
RATIO
3.4
LIQUID ASSETS TO DEMAND AND TIME
43
LIABILITIES RATIO
3.5
DEPOSITS TO WORKING CAPITAL RATIO
44
3.6
TOTAL LOANS TO WORKING CAPITAL RATIO
45
3.7
DEMAND DEPOSIT TO TERM DEPOSIT RATIO
46
3.8
CASH DEPOSIT RATIO
47
3.9
COMPOSITION OF TOTAL LOAN
48
3.10
COMPOSITION OF SHORT TERM LOAN
49
3.11
COMPOSITION OF MEDIUM TERM LOAN
50
3.12
COMPOSITION OF ORDINARY TERM LOAN
51
3.13
TREND ANALYSIS OF TOTAL LOANS
52
DISBURSED BY CSCB
3.14
TREND ANALYSIS OF SHORT TERM LOANS
53
3.15
TREND ANALYSIS OF MEDIUM TERM LOANS
54
3.16
TREND ANALYSIS OF ORDINARY LOANS
55
3.17
TREND ANALYSIS OF GOLD LOAN
56
3.18
TREND ANALYSIS OF KISSAN CREDIT CARD
57
3.19
TREND ANALYSIS OF INTEREST FREE PADDY
58
LOAN
3.20
TREND ANALYSIS OF KUDUMBASREE

AGRICULTURE LOAN
59
3.21
60
3.22
TREND ANALYSIS OF KUDUMBASREE BUSINESS

LOAN
TREND ANALYSIS OF BUSINESS LOAN
3.23
TREND ANALYSIS OF OTHER LOAN
62
3.24
TREND ANALYSIS OF PDCB NAMT
63
3.25
TREND ANALYSIS OF NAMT
64
3.26
TREND ANALYSIS OF CASH CREDIT LOAN
65
3.27
TREND ANALYSIS OF DEPOSIT LOAN
66
3.28
COMPOSITION OF DEPOSITS
67
3.29
TREND ANALYSIS OF TOTAL DEPOSITS
68
3.30
TREND ANALYSIS OF FIXED DEPOSIT
69
3.31
TREND ANALYSIS OF SAVINGS DEPOSIT
70
3.32
TREND ANALYSIS OF CURRENT DEPOSIT
71
3.33
TREND ANALYSIS OF RECCURING DEPOSIT
72
3.34
TREND ANALYSIS OF SEASON DEPOSIT
73
3.35
TREND ANALYSIS OF ATHULYA DEPOSIT
74
3.36
COMPARATIVE ANALYSIS OF LOANS AND
75
61
DEPOSIT IN THE YEAR 2009-10

3.37
76

3.38
77

3.39
78

3.40

79
LIST OF CHARTS
CHART NO.
PARTICULARS
PAGE NO.
3.1
3.2
40
3.3
TOTAL BORROWINGS TO TOTAL DEPOSITS
41
RATIO
3.4
LIQUID ASSETS TO DEMAND AND TIME
42
LIABILITIES RATIO
3.5
43
3.6
44
3.7
45
3.8
CASH DEPOSIT RATIO
46
3.13
TREND ANALYSIS OF TOTAL LOANS
52
DISBURSED BY CSCB
3.14
53
3.15
54
3.16
55
3.17
56
3.18
57
3.19
TREND ANALYSIS OF INTEREST FREE PADDY
58
LOAN
3.20
TREND ANALYSIS OF KUDUMBASREE
59
AGRICULTURE LOAN
3.21
60
3.22
TREND ANALYSIS OF KUDUMBASREE BUSINESS

LOAN
3.23
62
61
3.24
63
3.25
64
3.26
65
3.27
66
3.29
68
3.30
69
3.31
70
3.32
71
3.33
72
3.34
73
3.35
74
CHAPTER 1
INTRODUCTION
1.1 INTRODUCTION
The project entitled A Study on Loans and Deposit in Cherpalchery Service Co-operative
Bank Ltd (CSCB), Cherpalchery is focusing on the study of loans and deposits in
Cherpalchery Service Co-operative Bank Ltd. The areas of operation of the bank is confined
to the village of Karalmanna, Vellinezhy, Veeramangalam and Trikkaderi and also extending
better services to its members as well as to its customers. The bank was registered as a Cooperative Society under Act VI Of 1932 (Madras Co-operative Society Act 1932) on 20th
November-1967. The promoters of the society were mainly agriculturists and business people.
The term loan may be regarded as credit granted where the money is disbursed and its
recovery is made on a later date. It is the debt for the borrower. While granting loans, credit
is given for a definite purpose and for a predetermined period. Interest is charged on the loan
at an agreed rate and intervals of payment. Bank deposits are made to deposit accounts at a
banking institution, such as savings accounts, checking accounts and money market accounts.
The account holder has the right to withdraw any deposited funds, as set forth in the terms and
conditions of the account. One of the primary functions of the bank is lending through
lending banks meet their objective of making profits. The deposits collected from the public
cannot be kept idle. It has to be utilized in order to derive benefits out of it. The bank collects
deposits with the objective of lending and makes profit out of the interest received and paid.
In this project the researcher will be focusing on the deposits (fixed deposit, saving deposit,
current deposits, athulya deposit, recurring deposits and season deposit) and loans (short term
loan, medium term loan, ordinary loan and gold loan) of CSCB. Partly descriptive and partly
analytical research design will be used to achieve the objectives of the study. The study is
entirely based on the secondary data. The study is based on past five year financial data
collected from loans and deposit schedule issued by the Cherpalchery Service Co-operative
Bank Ltd.
10
1.2
INDUSTRIAL PROFILE
HISTORY OF CO-OPERATIVE BANKS IN INDIA

The History of Banking begins with the first prototype banks of merchants of the ancient
world, which made grain loans to farmers and traders who carried goods between cities. This
began around 2000 BC Assyria and Babylonia. Later, in ancient Greece and during the Roman
Empire, lenders based in temples made loans and added two important innovations they
accepted deposits and changed money. Archaeology from this period in ancient China and
India also shows evidence of money lending activity.
Banking, in the modern sense of the word, can be traced to medieval and early Renaissance
Italy, to the rich cities in the north such as Florence, Venice and Genoa. The Bardi and Peruzzi
families dominated banking in 14th century Florence, established branches in many parts of
Europe. Perhaps the most famous Italian Bank was the Medici bank, established by Giovanni
Medici in 1397. The development of banking spread from northern Italy through Europe and
a number of important innovations took place in Amsterdam during the Dutch in the 16th
century and in London in the 17th century. During the 20th century developments in the field
of telecommunications and computing caused major changes to banks operations and let banks
to dramatically increase in size and geographic spread.
Definition of Co-operative bank
Devine defines a Co-operative Bank as, a mutual society formed composed and governed
by the working people themselves for encouraging regular savings and granting small loans
on easy terms of interest and repayment
FEATURES OF CO-OPERATIVE BANK
They are organized and managed on the principles of Co-operation-self-help and

mutual help.
They function on no profit no loss basis.
Co-operative Bank performs all main banking functions of deposit mobilization,

supply of credit and provisions of remittance facilities.
11
Co-operative Bank does banking business mainly in the agricultural and rural
sector.
Co-operative Banks belongs to money market as well as capital market.
The sources of their funds are:

o Central and State Government.
o The RBI and NABARD.
o Other Co-operative Institution.
o Ownership funds.
o Deposits and debenture issues.
Co-operative Banks have federal structure of three tier linkage.
Some Co-operative Banks are Scheduled Banks and while other non-Scheduled
Banks.
Co-operative Banks accept current saving and fixed or time deposits from
individuals and institution.
PRINCIPLES OF CO-OPERATIVE BANK
The basic principles followed by cooperative banks are as follows
Voluntary and open membership
Democratic member control
Self-help through mutual help
Member economic participation
Autonomy and independence
principle of unity
Education, training and information
Concern for community development
STRUCTURE OF CO-OPERATIVE BANKS IN INDIA

Indias co-operative banking structure consists of two main segments, viz., agricultural and
non-agricultural credit. There are two separate structures in the case of agricultural credit: One for short and medium term credit and the other for long term credit. The co-operative
credit structure for short and medium terms its a three tier one with primary agricultural credit
12
societies at the base level, the central co-operative bank at the district level and state cooperative bank at the apex level.
Over and above these institutions, grain banks are actively functioning as primary societies in
certain states. Though the organization of central and state co-operative banks was mainly for
the benefit of the agricultural credit sector, they serve non-agricultural societies too.
CO-OPERATIVE BANKS IN INDIA
The co-operative banks are small-sized units which operate both in urban and non-urban
centers. They finance small borrowers in industrial and trade sectors besides professional and
salary classes. Regulated by the Reserve Bank of India, they are governed by the Banking
Regulations Act 1949 and banking laws (co-operative societies) act, 1965. The co-operative
banking structure in India is divided into following 5 components:
1. Primary Co-operative Credit Society
The primary co-operative credit society is an association of borrowers and non-borrowers
residing in a particular locality. The funds of the society are derived from the share capital
and deposits of members and loans from central co-operative banks. The borrowing powers
of the members as well as of the society are fixed. The loans are given to members for the
purchase of cattle, fodder, fertilizers, pesticides, etc.
Example :- The Federation of Andhra Pradesh Cooperative Urban Banks & Credit Societies
Ltd, All India Dr. Babasaheb Ambedkar Cooperative Banks and Credit Societies Federation
Ltd., Nashik, Coop. Banks and Credit Societies Ltd., Nasik, Maharashtra etc.
2. Central co-operative banks
These are the federations of primary credit societies in a district and are of two types- those
having a membership of primary societies only and those having a membership of societies
as well as individuals. The funds of the bank consist of share capital, deposits, loans and
overdrafts from state co-operative banks and joint stocks. These banks provide finance to
member societies within the limits of the borrowing capacity of societies. They also conduct
all the business of a joint stock bank.
13
Example: - The Adilabad District Central Co-operative Bank Ltd,. The Anantapur District
Central Co-operative Bank Ltd., Nalgaonda District Co-operative Central Bank Ltd. etc.
3. State co-operative banks
The state co-operative bank is a federation of central co-operative bank and acts as a watchdog
of the co-operative banking structure in the state. Its funds are obtained from share capital,
deposits, loans and overdrafts from the Reserve Bank of India. The state co- operative banks
lend money to central co-operative banks and primary societies and not directly to the farmers.
Example: - The Andaman and Nicobar State Co-operative Bank Ltd., The Arunachal Pradesh
State Co-operative Apex Bank Ltd., Kerala State Co-Operative Bank Ltd. etc.
4. Land development banks
The Land development banks are organized in 3 tiers namely; state, central, and primary level
and they meet the long term credit requirements of the farmers for developmental purposes.
The state land development banks oversee, the primary land development banks situated in
the districts and tehsil areas in the state. They are governed both by the state government and
Reserve Bank of India. Recently, the supervision of land development banks has been
assumed by National Bank for Agriculture and Rural development (NABARD). The sources
of funds for these banks are the debentures subscribed by both central and state government.
These banks do not accept deposits from the general public.
5. Urban Co-operative Banks
Definition of Urban Co-Operative Banks
The term Urban Co-operative Banks (UCBs), though not formally defined, refers to primary
co-operative banks located in urban and semi-urban areas. These banks, till 1996, were
allowed to lend money only for non-agricultural purposes. This distinction does not hold
today. These banks were traditionally centered on communities, localities, work place groups.
They essentially lend to small borrowers and businesses. Today, their scope of operations has
widened considerably.
The origins of the urban co-operative banking movement in India can be traced to the close
of nineteenth century. Inspired by the success of the experiments related to the co- operative
14
movement in Britain and the co-operative credit movement in Germany, such societies were
set up in India. Co-operative societies are based on the principles of cooperation, mutual help,
democratic decision making, and open membership. Co- operatives represented a new and
alternative approach to organization as against proprietary firms, partnership firms, and joint
stock companies which represent the dominant form of commercial organization. They mainly
rely upon deposits from members and non-members and in case of need, they get finance from
either the district central co-operative bank to which they are affiliated or from the apex cooperative bank if they work in big cities where the apex bank has its Head Office. They
provide credit to small scale industrialists, salaried employees, and other urban and semiurban residents.
Example: - Mehsana Urban Co-Op Bank, Goa Urban Co-operative Bank, Karad Urban Cooperative Bank, Nagar Urban Co-operative Bank etc.
6. Rural Co-operative Banks
Rural Cooperative Banking and Credit Institutions play an important role in meeting the
growing credit needs of rural India. The volume of credit flowing through these institutions
has increased. The performance of these institutions, however (apparent in the share of total
institutional credit and the indicators of their financial health), has been less than satisfactory
and is deteriorating rapidly. Of late, a number of Committees have gone into the reasons for
this situation and suggested remedial measures, but there has been little progress in
implementing their recommendations.
The rural cooperatives are further divided into short-term and long-term structures. The shortterm cooperative banks are three tiered operating in different states. These are1. State Cooperative Banks- They operate at the apex level in states
2. District Central Cooperative Banks-They operate at the district levels
3. Primary Agricultural Credit Societies-They operate at the village or grass-root level.
Likewise, the long-term structures are further divided into
1. State Cooperative Agriculture and Rural Development Banks (SCARDS) - These
operate at state-level.
15
2. Primary Cooperative Agriculture and Rural Development Banks (PCARDBS)-They

operate at district/block level.
The rural banking cooperatives have a complex monitoring structure as they have a dual
control which has led to many problems. A Forum called State Level Task Force on
Cooperative Urban Banks (TAFCUB) has been set-up to look into issues related to duality in
control.
1. All banking activities are regulated by a shared arrangement between RBI and
NABARD.
2. All management and registration activities are managed by RCS.
CO-OPERATIVE BANKS IN KERALA

AGRICULTURE CREDIT SOCIETIES
1. Primary Credit Societies
The organization of primary agricultural credit societies dates back to 1904 when the Indian
Co-operative societys Act was passed. These societies were formed to provide cheap credit
to the agriculturists with a view to make them free from the clutches of moneylenders. The
primary agricultural credit society is the foundation stone on which the whole co-operative
edifice is built. These societies were intended to promote the economic interests of its
members especially, the poor in accordance with co-operative principles. It has to achieve its
aim by promoting savings among members, providing loans, supplying agricultural
implements and certain essential domestic requirements and arranging for the marketing of
their agricultural products. These societies are also called Rural Banks. As on March 2006,
there were 1587 primary agricultural credit societies in Kerala out of which 1565 are
functional, 22 are dormant and 26 are under liquidation. Out of 1565 functional PACS 828
societies were on loss and 721 were on profit.
Example: - The Neyyattinkara Primary Co-operative Agrl. Devp. Bank Ltd Neyyattinkara,
Thiruvananthapuram, Thonnakkal Agricultural Credit Co-operative Society Ltd, Thonnakkal,
Thiruvananthapuram etc.
16
2. Central Co-operative Banks

The Central Co-operative banks were set up as a link between Primary Co-operative Societies
and the State Co-operative Bank. For providing medium term agricultural credit, the Central
Co-operative Bank plays a vital role. All India Rural Credit Survey Committee recommended
that there should be only one Central Bank in a district, so it is also called District Co-operative
Banks (DCB).At the end of March 2005 there were 365 Central Co-operative Banks in India
whereas in Kerala there were 14 Central Co-operatives Banks.16
Membership of a Central
Co-operative Bank generally consists of primary co-operative credit societies and other types
of primary societies working in the area of its operation. The government may also become
member of a Central Co-operative Bank by taking shares.
Example: - Alappuzha District Co-operative Central Bank Ltd., Ernakulam District Cooperative Central Bank Ltd., Malappuram District Co-operative Central Bank Ltd., Palakkad
District Co-operative Central Bank Ltd., etc.
3. State Co-operative Bank
The State Co-operative Bank stand at the top of the co-operative credit structure in the state.
It is an apex co-operative society. The State Co-operative Bank is expected to co-ordinate and
control the working of the District Co- operative Banks in the state. It is a financing bank of
the Central co-operative Banks in the state and stands for the overall development of the cooperative credit movement in the state. The state co-operative bank is a connecting link
between NABARD and the co-operative credit institutions in the state. It is also a connecting
link between the state government and the co-operative credit movement.
At the end of March 2005 there were 31 State Co-operative Banks in India 17. In kerala, this
bank was originally registered as Trivandrum Central Co- operative Bank in 1915 under the
Travancore Central Co-operative Societies Act 1914.It was converted in to Kerala State cooperative Bank and functions as the Apex Bank with effect from 1st January 1956.The
membership of a state Co- operative Bank is open to all Central Co-operative Banks, and State
Government. State level co-operative federations may also be admitted as members.
17
4. Primary Co-operative Agricultural and Rural Development Banks. (PCARDB)

(Land Development Banks)
A Primary Agricultural and Rural Development Bank is a co-operative institution advancing
long term loans to the agriculturists who were members, on the security of landed assets.
Before 1963 they were known as Land mortgage banks. It has a two-tier structure - Primary
Land Development Banks in each subdivision and State Co-operative Land Development
Bank at the State level. In Kerala, they are called Primary Co-operative Agricultural and Rural
Development Bank (PCARDB) and State Co-operative Agricultural and Rural Development
Bank (SCARDB) respectively.
In Kerala, there are 46 Primary Agricultural and Rural Development Banks at the end March
2005. The duration of long term loan is usually 5 to 15 years. The long term loans are granted
for making permanent improvement of land. The purpose of long term loans includes
reclamation of land, purchase of agricultural machinery etc.
5. Kerala State Co-operative Agricultural and Rural Development Bank (SCARDB).
(Central Land Development Bank)
The Kerala State Co-operative Agricultural and Rural Development Bank is a federation of
agricultural development banks in the state. It is an Apex Bank and also the financing bank of
the Primary Development Banks. The main aim of the bank is to raise long term funds by the
issue of debentures and to finance Primary Agricultural Development Banks affiliated to it
.The policy of the government is to establish one State Agricultural Development Bank for
every state. The area of operation of the bank extends to the whole of the state. The
membership of the bank is open to all Primary Agricultural Development Banks in the state.
Apart from these, the State Government and the Kerala State Electricity Board have also
become members in the bank.
NON-AGRICULTURAL CREDIT SOCIETIES
Credit is needed not only by rural agriculturists, but also by all urban poor also. They may be
labourers or workers having fixed income. For meeting their financial requirements, Cooperative Non-agricultural Credit Societies are formed. Co-operative Urban Banks and
Employees Credit Societies come under non- agricultural credit societies.
18
1. Urban Co-operative Banks

Urban Co-operative Banks are primary credit societies working in the urban areas. Nonagriculturists such as small merchants, traders, artisans, wage earners and professionals are
admitted as members. An Urban Bank provides short term and medium term loans to its
members for non-agricultural purposes. They also accept deposits of various types and work
in the style of commercial banks. The Reserve Bank has the right to inspect and supervise
these banks as they come under the purview of the Banking Regulation Act of 1949. The
area of operation of an Urban Bank will be specified in the bye-laws of the bank. Usually the
area is restricted to a town, municipality, corporation or Taluk.
Example: - Adoor co-operative urban bank ltd., Calicut co-operative urban bank ltd.,
Cherpalcheri co-operative urban bank ltd, Guruvayur co-operative urban bank ltd., Urban coop. bank ltd. no.1758, Perintalmanna. Etc.
2. Employees Co-operative Credit Societies
Employees Co-operative Credit Societies also belong to the category of non- agricultural
credit societies. They are organized among the salaried employees of government departments
and semi-government institutions. Separate employees credit societies are organized for
separate categories of workers. Thus, there are credit societies for railway workers, post and
telegram employees, bank employees, teachers, and so on. The main object of such societies
is to promote thrift and savings among employees and to provide credit to the members. The
loans advanced to the members are deducted from their monthly salary. Hence there is no
problem of over dues in these type societies. Most of the employees credit societies are
financially sound and well managed. They are able to raise sizeable amount of deposits from
the members and non-members.
Example: - Accountant General Office Employees Co-operative Credit Society Ltd No. T 291,
Thiruvananthapuram, PWD Irrigation Dept. Employees Co-operative Society Ltd No. T 638,
Thiruvananthapuram, Ph: 325529, The Trivandrum District Co-operative Bank Employees
Co-operative Society Ltd No. T 327, Thiruvananthapuram. Etc.
19
1.3 COMPANY POFILE

The Cherpalchery service Co-operative Bank Ltd.P.No.589 was registered as a Co-operative
Society under Act VI Of 1932 (Madras Co-operative Society Act 1932) on 20th November1967.Its address shall be Cherpalchery post in the taluk of Ottapalam in the Palakkad district.
The promoters of the society were mainly agriculturists and business people. The bank has
made substantial contribution in the socio-economic development of its members. Almost all
the sections of the bank are now computerized and have core banking facilities.
The bank will start in 1945, in the form of PCC society (Producers Cum Consumers Cooperative Society) the work of PCC society is collecting paddy from farmers and agents and
sells to consumers. In 1956 the PCC society is changed in the form bank with two persons.
The first secretary was the Late Kizhapattu Rajagopalamenoen, first president was the Late
Panangat Kumaramenon. The bank has also opened branches within its areas of operations
for extending better services to its members, when its activities get enlarged with the sanction
of the co-operative registrar. This bank has really made substantial contribution in the socioeconomic development of its members. Almost all the sections of the bank are now
computerized.
The bank is situated very near to the Cherpalchery bus stand. It is housed in its own
double stored building. It has a moderately furnished sitting room which is great relief to the
customers. The bank has continuously been working profitably for the last 42 years. The
meritorious work and commendable service performed in the past made it possible for the
bank to win a most prestigious national award for the year 2004.
Management
General body is the ultimate authority and elects the board of directors consisting 13 members
of which on seat is reserved for SC/ST and one for women.
Authorised share capital

Authorised share capital of the bank is Rs. 107, 76, 23,932.16
A class members:-23329
20
B class members:-95035
Here A class includes the members and shareholders of the bank. B class includes government
and nominal members of the bank.
Objectives of the bank

1. To improve the breeds of the domestic animals breeding bulls, breeding go puts, breeding
cows.
2. To do everything for implementing in part or in full any or all the above projects.
3. To borrow funds from members or others to be utilised for giving loans to members for
useful purpose.
4. To procure and the supply agricultural requirements like seeds, manure, implements and
cattle feed etc.
5. To arrange for the sale of agricultural products of members to the best advantage.
6. To own or hire processing planed like rice hullers, flow milks, oil crushers, decanters, gins
etc. And improved machinery like tractors, mechanized plough etc., for the benefit of the
members.
7. To undertake collection of bills cheques on behalf of members and to discount cheques
and bills of approved members subject to the provision of bylaw 54C.
8. To owner hire go downs to provide facilities to members to store their products for sale at
advantage process.
9. To construct repair and maintain lift irrigation of any kind in the area of the bank as
contemplated in public work department (irrigation) notification no IR49673/57 P.W.D
dated 18/09/1957.
10. To sell the agricultural products and industrial products of the members in a beneficial
way through marketing societies or otherwise.
11. To frame agricultural plans for the members and to implement them end verify the details.
21
12. To render assistance a co-operation to the members for the purpose of producing kind of
seeds.
13. To give help to members, individually or collectively for the undertaking steps for growing
green leafs manure and mixtures and composed.
Functions of Cherpalchery Service Co-Operative Bank

The banks performs banking as well as non-banking functions is just like a commercial bank,
the primary functions of the bank is receiving deposits and giving advances to meet the
growing requirements of the public. The deposits received from the members is the main
source of working capital. The various deposits received by the bank includes fixed deposits,
recurring deposits, current deposits, savings deposits etc. The bank provides loans and
advances of short period, medium term, long term and gold loans to members and nonmembers.
Second important banking functions is the collection of cheques and discounting of bills. The
banks should prepare and maintain a list of banks approved for this purpose. The cheques
drawn by which alone can be discounted. A list approved members whose cheques alone can
be discounted should be maintained by the banks and revised from time to time. For this the
bank may charge a sum as commission. If the value of the cheque has not been realized by the
bank within 15 days suitable actions should be taken for the immediate recovery of the amount
paid from the person concerned. The bank is also extending safe deposits locker facilities to
its members and non-members.
Non-Banking Functions:Besides the banking function the bank also performs some trading activities. These
includes the sale of fertilizers, seeds, and cashew procurement and Onam market and vishu
market. One of the main trading activity of the bank is the sale of improved varieties of seeds,
fertilizers, pesticides and insecticides. The bank purchases fertilizers mainly from FACT and
Marketing Federations. The bank also provides ware housing facilities to the agriculturists at
reasonable rent. One person is employed in the bank for the sale of fertilizers.
22
Distribution of consumer goods is another important trading activity. The bank

undertakes seasonal business of cashew procurement with the prior sanction from the
government.
Onam and vishu market is also a seasonal business of the bank. The society opens its onam
market 10 days prior to thiruvonam and vishu.
Deposits
One of the service rendered by the co-operative banks are accepting deposits. They accept
deposits from every class and every source. To attract serving from people the bank maintains
different types of deposits accounts.
The bank accepts deposits from members and non-members at any type at prescribed rates of
interests which varies from time to time. Major deposits accepted by the bank are:a) Savings Deposits
This is just like the Savings Bank Account in other banks. Amount can be deposited and
withdrawn as and when required subject to the terms and conditions of the bank. A Pass Book
will be issued to the depositor. Interest is calculated monthly on the minimum amount retained
in the account during the month. These accounts are mean for middle and low income group.
The current rate of interest is 4%. This deposit is suitable for all categories of people.
b) Fixed deposit
Under this, a fixed amount of money can be deposited for a fixed period beginning from 15
days. It can be withdraw after the expiry date. The interest given to fixed deposit is higher
than other types of deposits.
c) Current Deposit
This is suitable for business for men. Current account holders should keep a minimum balance
of Rs. 500/- to keep th account running. Amount can be deposited and withdrawn without any
restrictions as in the case of other banks. They are permitted to overdraw his account if he has
entered into a special arrangement with the bank in these respects. A Pass Book will be issued
to the depositor. Interest is calculated monthly on the minimum balance kept in the account
during the month.
23
d) Day Deposit
Day deposit is collected through agents. An amount of Rs.10/- or its multiples can be deposited
daily for a period of 6 months. A Pass Book will be issued to the depositor. In case of default
in payment or closure before the term, the amount at credit can be repaid after deducting a
penalty at a rate of 5%.
e) Recurring deposit
This is also called Monthly Saving Scheme. An amount of Rs. 10/- or its multiples can be
deposited monthly for a period of 8 years. The depositors have paid at least 10 installments
without failure, it can be loan up to 75% of the amount at credit. This is suitable for persons
having regular income on monthly basis.
f) Home safe deposit account
This is other type of deposit account to encourage the saving habits of the people. Under this
scheme a small pot or box with an opening is supplied to the depositor. The depositor can
save the amount in the box. Periodically this box is taken to the bank and the amount in it is
credited with his or her deposit account.
Making Loans and Advances
Lending of money is the other major important function of the co-operative bank. After
keeping certain percentage of deposits as cash reserve the balance is given as loans and
advances. Co-operative banks gives loans and advances to the needy persons against personal
security of borrower or the security of movable and immovable properties.
Loans
A loan is granted by the banker in a separate account known as loan account. The amount
sanctioned is either paid or credited in the account of the customer. The interest is charged on
the whole amount of loan. The loan can be repaired in installments or in maturity.The main
utilization of fund by the bank is for providing loans to its members. The bank provides
various types of loans:-
24
a) Non Agricultural Medium Term loans (NAMT)

NAMT loans are given for education purposes, repayment of sundry debts and such other
purpose as the registrar may declare from time to time. The maximum amount payable at a
time per member is Rs.25lakhs. The rate of interest in NAMT loan is 14.5%.
b) Gold Loans
Gold loan facility is enjoyed by the A class and C class members, maximum amount
payable is Rs.500000/- or 70% of the market value of the gold pledge whichever is less. The
amount should be repaid within 7 months. The rate of interest in gold loan is 12%.
c) Kissan Credit Card loans (KCC)
Kissan Credit Card scheme aims at providing need based timely credit support to the farmers
for their cultivation needs. The bank provides KCC up to 3 years at maximum amount of 1
lakh at 7% interest
d) Housing Loans to Employees
The bank may also provide housing loans to its employees having a continuous service of 5
years or more subject to a maximum of Rs.5 lakhs per employee as per the terms and
conditions insisted by the board of Directors and registrar.
e) Loan on Fixed Deposit
Loan up to 90% of the amount deposited with the bank as fixed deposit by a member or nonmember can be given as loan to such depositor
f) Vehicle loan
Loan up to 90% of the market value of the vehicle.
Overdraft
Under the facility the depositors are allowed to withdraw money more than their deposits. It
granted against collateral securities or on the personal security of the borrower. Interest is
charged on the amount which is over drawn by the depositor.
Departmentalization
The main aim of a co-operative bank is to provide service or assistance to their members and
not to maximize profit for providing better service to their customers bank delegate their
function in to various departments. Each service of co-operative bank is performed by each
department. They are shown below;
25
a) Loan department
The main source of income of every bank is from the loan. Likewise co-operative bank
maintain loan department in their bank. 8 staff working in this department. Their main
functions are;
Analyse the details of borrower who reached the bank for loan with their collateral security.
After completing all the formalities for issuing loan to the borrower opened an account in the
borrowers name and interest is charged monthly. They are keeping the account very efficiently
till the account is closed, from the enquiry we can understand that compared to national banks
the formalities of co-operative bank is very simple related with issuing loan. Loan department
also provide facility for overdraft. But the customers are rarely used the overdraft facility.
They are providing loan mainly for agricultural purpose, small scale industries, housing loans
etc., and also charged less interest rate. The bank have some amount of non-performing asset
but they are sincerely trying to reduce it and find success.
b) Cash or deposit department
The existence of a bank is depends upon the efficiency of this department. Because the bank
provide loans from the certain percentage of deposits. So the main function of this department
is deposit mobilization. Co-operative banks are generally localized therefore they provide high
rate of interest as compared to national banks. It help to attract more people. They provide
various deposit schemes to general public. These are;
Fixed deposit account
Current deposit
Saving deposit
Recurring deposit
Home safe deposit
Athulya deposit
Niravu deposits
Janatha deposits etc.
26
c) Other services
This department performs some general utility services for their customers. The functions of
this department are;
Locker facility
A co-operative bank generally equipped with specially constructed strong rooms. A person
can hire a locker to keep his valuables. He should pay a small charge for this service to
the bank.
Deals foreign exchange
Bank buying and selling foreign exchange on behalf of the customer.
Fund transfer
To facilitate transfer of fund from one place to another, the bank issue bank drafts, cheques
etc.
Organization
There is six tier organizational structure for the bank as a whole and four tier organizational
structure for carrying out the functions of the bank. At the six tier structure, the general body
considered to be the ultimate authority stood first in the hierarchical positions. They delegate
some of their powers to the Board of Directors who stood at second in the hierarchy. Board
delegates their powers to the president and president to secretary. This process goes on till the
level of clerks and peons who really get the functions at be operative level.
In the four tier organizational structure, the secretary who is the chief executive of the
bank stood at first in the hierarchy. The assistant secretaries are second in the hierarchical
position, after secretary. The accountants are third in the hierarchical position. At the
operational level, there are 3 posts of supporting personnel i.e., senior clerks, junior clerks and
peon. They represent the last tier.
27
SWOT analysis
Every organization has its own strength and weakness. Likewise the strength and weakness,
opportunities and threats of Service Co-operative Bank are as follows.
Strength
1. Service Co-operative Banks (SCBs) are self-reliant in financial with less risk in
operations.
2. Service Co-operative Banks (SCBs) account for nearly 10% of the resources of the entire
banking sector in India.
3. They have been filling the credit gap in the urban, sub urban and semi urban areas.
4. One hundred years of existence.
5. Service Co-operative Banks (SCBs) have responsibility for the economic up liftmen of the
weaker section of the community.
6. Nondiscrimination against cast, class, creed, religion and gender.
7. The principle of member participation has resulted in unique system share capital linked
to borrowing in Service Co-operative Banks (SCBs) s.
8. Democratic management is the principle of co-operative sector.
9. The deposits in Service Co-operative Banks (SCBs) are protected by the Deposit Insurance
and Credit Guarantee Corporation of India (DICGC).
10. There were 55 scheduled urban co-operative banks in India as on 31 march 2004.
Weaknesses
1. Staff recruitment is not done properly in Service Co-operative Banks (SCBs). There is a
shortage of manpower.
2. A good number of miss fits and unfits are found occupying the chairs of administration.
Their inadequate knowledge leads to inefficiency.
3. The process of computerization of Service Co-operative Banks (SCBs) is rather slow
through computers have been installed, trained staff is not available.
4. Lack of professional management
5. Regional imbalance in the distribution and development of Service Co-operative Banks
(SCBs).
28
6. Restrictions from the RBl and government is affected the autonomy power of Service Cooperative Banks (SCBs).
7. Annual General Meeting (AGM) are not convened periodically and effectively.
8. Political factors play an adverse role and hamper the smooth functioning of banks.
Therefore, organizing loan means and campaigning for waiver of loans in the same breath.
9. In effective supervision over branches and poor inspections.
10. The dual control is creating a lot of confusion in the operation of Service Co-operative
Banks (SCBs).
Opportunities
1. Service Co-operative Banks (SCBs) are integrated into their local environment and their
role goes beyond that of provider of financial services.
2. On account of their proximity to their members and their firms Service Co-operative
Banks (SCBs) have a good scope for enlarging the membership.
3. Service Co-operative Banks (SCBs) are pioneers in the field of micro finance.
4. Collective efforts not only enhance the chances of success but also increase the economy
of scale by reducing the per capita coast operation and increase productivity.
5. Setting up of Service Bank Department (SBD) by the RBI recognition of this sector as an
important part of the banking system in 1984.
6. Registration of SCBs with institute presence under the Multi state co-operative societies
Act, 4/8/2002.
7. Permission granted by RBI to the financially strong scheduled Service Co-operative Banks
(SCBs) having minimum net worth of Rs. 100 crores to enter into insurance business from
4.8.2013.
8. The notification of the government of India no. S.O.E 105(e) (28th January 2003) that has
made applicable the provision of the Securitization and Reconstruction of Financial Assets
and Enforcement of Security Act to Service Co-operative Banks (SCBs).
Threats
1. The bank is focusing cut throat competition in the market with other banks.
2. Increasing incidence of fraud and misappropriation.
29
3. Tightening of income recognition and asset classification norms had a direct bearing on
the balance sheet of the Service Co-operative Banks (SCBs).
4. The Service Co-operative Banks (SCBs) are facing higher cost of management especially
for interest on deposit and establishment cost.
5. Failure of the government to honor its guarantees when invoked.
6. Increasing litigation between management and employees.
1.3
RESEARCH PROBLEM STATEMENT
The study is basically aimed to know the loans and deposits of Cherpalchery service cooperative bank. The study will help the bank to identify the loans and deposits which are
generating more income to the bank. The findings of the study will help the management of
Cherpalchery service co-operative bank to improve their performance and the proportion of
loans and deposits.
1.5 OBJECTIVES OF THE STUDY

1.5.1 Primary objective
To study different types of loans and deposits provided by Cherpalchery Service Cooperative Banks (CSCB).
1.5.2 Secondary objectives
To study the growth in loans and deposits of Cherpalchery Service Co-operative Banks
(CSCB).
To suggest measures based on the findings to improve the performance of

Cherpalchery Service Co-operative Banks (CSCB).
1.6 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It explains the
various steps that are generally adopted by a researcher in studying the research problem.
1.6.1 Research design

The research is partially analytical and partially descriptive in nature.
30
1.6 2 Source of data

Secondary source of data will be used for study purpose. The secondary data will be collected
from the loans and deposits schedule, bank records, journals, annual reports, audit report,
websites of the company.
1.6.3 Tools & techniques used for data analysis
Trend analysis
Ratio analysis
1.7 SCOPE OF THE STUDY

The scope of the study is limited to the information obtained from the loans and deposits
schedules provided by the bank. The study is conducted to know the loans issued and deposit
accepted by the Cherpalchery Service Co-operative Bank by using various ratios and trend
analysis. The study will helps to identify various types of loans and deposits generating more
income to the bank. The study will also help the bank in framing new policies related with
loans and deposits in the future.
1.8 LIMITATIONS OF THE STUDY
The study is limited to the period of five year data hence very difficult to get a clear picture
of the bank.
The study reveals the finding for the present situation and it will not reflect the future.
Some data related with study was difficult to access due to confidential in nature.
The study is based on published information provided by the bank hence accuracy and
reliability of the data is suspected.
In this chapter the researcher has given an introduction about the industry profile and the
organization in which the study will be undertaken, objectives of the study has been discussed
followed by the research methodology to be used scope of the study and limitations related
with the study has been discussed in this chapter. The next chapter will be focusing on the
review of the literature and theoretical concepts used in the study.
31
CHAPTER 2
REVIEW LITERATURE AND THEORETICAL
FRAMEWORK
32
In this chapter the researcher is highlighting the studies done by various scholars regarding
the topic Loans and Deposits. In this chapter an attempt has been made to provide an
overview about loans and deposit in various banks. This chapter will also discussing the
theoretical concept used in the study.
2.1 REVIEW OF LITERATURE

The Banking Commission (1972)1 viewed that proximity of institutions to the depositor and
availability of varying schemes tailored to suit the liquidity and other considerations, which
weigh with the depositors, the return on deposits appeared to be of some significance. The
effects of administered interest rates on bank deposits need to be studied carefully and a well
thought out comprehensive approach to the question of the structure of interest rates on
deposits has to be worked out. It is necessary for banks to take into account the motivation for
savings to attain a larger measure of success in deposit mobilization from small persons. While
the efforts that the banks have been taking to mobilize deposits have to continued, it is
important to see that the standard of services for the existing depositors is also maintained at
a high level. The availability of ancillary banking services also influence the choice of the
depositors, particularly in smaller towns. The Commission further stated that efficient service
and courteous and personalized attention have been found to be among the most important
considerations in depositor's choice of a bank and recommended waiting time of customers at
the cash counters be reduced by procedural adjustments and introduction of teller system.
C.L.Khemani and K.V.Balakrishnan (1981)2 in their study on the importance of
consumption credit to weaker sections stated that the target group under the sponsored
schemes should be granted consumption loans for their specific needs. While granting the
consumption loans, the capacity of the borrowers to repay the loans should be considered.
They also remark that the very objective of priority sector lending cannot be said to be
achieved if the beneficiaries under the sponsored schemes are approaching the money lenders
for their consumption credit.
K Dinkar Rao (1982)3 conducted a study on Lead Bank Scheme and stated that extension of
credit to priority sector is a social obligation. It is to be shared between the agencies, including
the government departments and the financial agencies who are involved in the
33
implementation of the schemes for development of agriculture and other priority sectors. The
Lead Bank Scheme is the best alternative for sharing responsibility at the grass root level on
a mutual bass. The lead role is not merely confined to the Lead Bank shouldering the major
responsibility in branch expansion and credit extension. The stress is laid on the lead bank's
liaison role in integrating credit with complimentary inputs and services. The priority sector
lending involves considerable extension efforts. The credit agencies or the government
departments or both have to ensure the critical integration of credit with inputs and services.
This would require co-ordination among financial institutions and in many cases collective
action by them. These tasks would become immensely complex if individual agencies act
independently. In the short run the Lead Bank Scheme can only facilitate the flow of a given
quantum of credit to the priority sector, but may not be able to increase this quantum. The
Lead Bank Scheme can only be expected to reflect the local needs and genuine regional
grievances, the influence of which could be felt only in the long run.
Subha Rao (1982)4 A survey of two towns and ten villages in East Godavari and West
Godawari districts of Andhrapradesh to find out the influence of different forms of
advertisement and personal selling on deposit mobilization of banks. It was observed that
different media advertisements have limited influence on customers in opening current
account. Similarly personal selling was somewhat less powerful than advertisement in
motivating urban customers to open current accounts. But in rural areas personal selling was
more effective than advertisement fixed depositors in urban and rural areas are mostly
motivated by personal selling and advertising was not effective in mobilizing fixed deposits
from urban and rural areas. It was also found that among urban customers, their friends and
relatives had more influence than bank staff whereas rural customers were mostly induced by
branch managers and other staff of the bank. Illiteracy, ignorance and unawareness about
various deposits schemes on the part of small savers and their psychological inertia are
problems of deposit mobilization. Personal selling or contact is the best way of educating the
rural people.
A.R. Patel (1984)5 conducted a study on the performance of the public sector banks in lending
under the differential rate of interest scheme. The study revealed the banking progress in
lending to SC and ST borrowers under the scheme. The number of SC and ST borrowers and
34
the amount advanced increased remarkably. But compared to the number of borrowers and
their demand for fund, the allocation by the banks under the scheme is very limited. Therefore
the banks are unable to finance all the eligible beneficiaries under the Differential Rate of
Interest Scheme (DRI). The study has thrown a light to the fact that a number of eligible
borrowers could not avail loan under the DRI scheme but at the same time a number of well
settled influential persons availed loans under the scheme.
American Bankers Association's (1984)6 the study revealed that though banks were by far
still the most popular financial service provider, particularly for traditional accounts like
checking, savings accounts and loans, brokers are often the preferred vendors of "newer" more
profitable services. The study highlighted a growing perpetual blurring of financial
institutions, with all institutions more likely to be perceived to offer "any service", compared
to the previous years. 62 percent customers were found confident of the safety of their own
money in banks.
Chakravarthy Committee (1985)7 While commenting on the operational efficiency of banks
the committee expressed their view that the concept of operational efficiency of commercial
banks in India is associated with such diverse aspects of its operations as cost effectiveness,
profitability, customer services, priority sector lending, mobilization of deposits and
deployment of credit. Operational efficiency in banks has attained a wider connotation. The
committee again observed that there is a need to introduce some element of price competition
among banks. The 'controlled competition' was recommended by the committee in this regard.
IR.N. Malhotra (1986)8 conducted a study on the role of banking in Rural Development and
opines that banks should actively participate in rural credit. They should provide financial
assistance against viable projects and exercise effective control over credit utilization. The
responsibility of the banks does not end with the disbursement of loans. They should see that
the borrower utilizes the amount of loan for the purpose for which it has been sanctioned.
Credit institutions with such responsibility alone can contribute to the rural development.
S.B.Dangat, S.R,Radkar and M.P.Dhongada (1986)9 conducted a micro level study on the
utilization of fund borrowed under medium and long terms loans. In the study they stated that
most of the borrowers use the medium and long term loans for their personal and unproductive
purposes. The funds are mainly used by the borrowers for conducting marriages and other
35
functions, construction of buildings for residential purposes, repayment of earlier debts, etc.
Proper appraisal, guidance and supervision by the bank personnel are essential to ensure that
the borrowers utilize the amount borrowed by them for productive purposes.
B. Ramachandra Rao (1987)10 conducted a study on the evaluation and monitoring of
priority sector advances. In the study he suggested that the priority sector advances should be
given at low rate of interest only to the deserving people. The object of the scheme cannot be
achieved if such loans are provided to the financially sound persons. Better monitoring and
supervision by the banks will be required to ensure that the funds are disbursed to the right
persons and it is utilized for the right purpose. This will in turn increase the profitability of
the banks.
Economic Research Department of the State Bank of India, Central Office, Bombay
(1987)11 conducted a study on the impact of bank credit on the weaker sections in Kerala. The
study reveals that the financial assistance from the banks has helped many poor and efficient
workers to start self-employed business units. The study also reveal that the bank loans help
to generate employment opportunities and income of the people thereby increase the standard
of living of the poor.
Avadhani (1987)12 studied the factors influencing deposit mobilization in rural areas in
different states. They came out with the opinion that there existed sufficient relationship
between the deposits of a rural branch and its age. The growth of deposits is at a faster rate in
the first six years and tapers off subsequently. The growth rate in deposits of commercial
banks cannot be explained in terms of price differentials as co-operatives offer high rates of
interest. Therefore product differentials would offer a better explanation of the disparate
growth rates in deposits. This relates to difference in customer services, liquidity, attitude of
the manager and the bank staff and their local involvement. It is to be noted that there was no
special schemes for deposit mobilization or any incentives given to bank staff. Yet each branch
management had evolved its own strategy to mobilize deposits in order to achieve the targets
fixed by the Head office.
Raddon Financial Ciroup in America (1987)13 in a nationwide survey conducted on
importance of quality of service criteria, consumers were asked to rate on a scale of 1 to 5 the
relative importance of numerous service quality criteria. It was found that generally pricing
36
criteria formed the most important group of factors in consumer ratings. This category
included competitive deposit rates, loan rates and minimum balance requirements. Image was
the second criterion, which takes in to account stability, progressiveness, conservativeness
and management of the institution. 43 percent of consumers surveyed opined that they
considered switching financial institutions when a problem went unresolved. Over 42 percent
said that they have changed financial institutions because of service problems. The study
suggested that by understanding that service strategy is a low-cost profit strategy, financial
institutions should install a quality service orientation throughout the organization.
H C. Malhotra and Kulshrestha (1987)14 opined that bank loans will not improve the quality
of life of the poor unless the borrower utilizes the fund for productive purposes. To ensure
utilization of fund for productive purposes, proper monitoring and supervision by the lending
banks are essential. They suggest co-ordination between the lending agencies and minimizing
competition to improve the better utilization of fund by the borrowers.
P.D.Ojha (1987)15 the then Deputy Governor of RBI, made a comment on the Banking and
Economic Development in India while inaugurating a seminar at Sukhadai University,
Udaipur. He remarked the borrowers default in repayment of loans by the beneficiary is a
common feature of the bank loans under sponsored schemes like DRI, SSI. Self-employment
and other priority sector advances. The accumulation of such default affects the efficient
working of the banking system. Banks find it difficult in recycling the credit and they are
discouraged in lending under sponsored schemes. He requests the banks to make necessary
appraisal of the proposal and grant loans only against viable projects and that banks should
have effective supervision and control over the utilization of fund disbursed.
C.Rangarajan (1988)16 remarked that diversion of bank credit for productive purposes is
essential for economic development. Banks are more rigid in lending activities and therefore
the deserving and needy people are not getting financial assistance. New measures are
essential to ensure that the bank loans reach the deserving hands.
Muhammad Yunus (1988)17 opined that financial assistance provided by the banks to the
poor is not charity hence the banks should ensure that the loans granted to the weaker sections
are repaid in time. He adds that loans without strict control will lead to misutilization of fund
37
and the result will be default in repayment of the loans for which the lending institution is
responsible and not the borrower.
R Munira] (1988)18 suggested that before granting loans, the beneficiaries should be properly
motivated to use the credit, adopt improved technology, keep up credit discipline, etc. They
should be inculcated to banking habits. Inadequate or lack of supervision and follow-up as
well as lack of inter- personal relationship between banker and borrowers - are the major
causes for the misutilization and diversion of loans, which lead to low income, low savings
and non-repayment If these factors are taken into consideration, the overdues can be
minimized to the extent of 60 to 70 per cent.
Archana Mathur (1988)19 in her study on the position of customer service of State Bank of
India and State Bank of Bikaner and Jaipur found that majority of the customers were taking
advantage of savings bank account. Nearly 57 percent respondents were dissatisfied regarding
passbook entries. The general environment of the banks were satisfying to the respondents.
More than 80 percent of the customers interviewed held the view that there was need for
improvement in bank services. The degree of consciousness about bank services among the
customers were as high as 57 percent and the behavior of the bank staff was found satisfactory.
Malayadri (1988)20 The overall reactions of customers towards the Syndicate Bank's dealing
with credit in Nellore district of AndraPradesh was examined and assessed the attitude of
customers towards bank credit in raising their living standards. It was revealed that majority
of the borrowers were satisfied with the bank personnel in understanding and helping to solve
their problems, providing advice and assisting in proper utilization of credit. But disbursal of
loan within reasonable time and supervising the field were lacking. Sixty-six percent of the
respondents were unable to follow bank rules and procedures and fifty four percent found the
working time unsuitable and suggested change of working hours. Forty percent of customers
considered bank credit as a risk in future and a few of them stated that taking loans eroded
their social prestige.
U.K. Sarma (1989)21 conducted a study on the role of bank in rural development and stated
that bank loans for the development of rural areas will increase the rural indebtedness unless
such loans are utilized for productive purposes. Banks should be more careful in dealing with
rural credit and they should ensure that loans are sanctioned against viable projects and
38
amount is disbursed in time. Adequate and timely credit may help increased productivity and
profitability He added that loans utilized for productive purpose will be repaid on time.
Joseph (1990)22 in his study on Lead Bank Scheme in Kerala, analyzed the mobilization of
bank deposits in Kerala by commercial Banks since the introduction of lead bank scheme. He
observed that competition from co-operative and other institutions was the main obstacles to
achieving the deposit mobilization target. The popularity of private financial institutions was
due to their personal relations with local people. 56.4 percent of the customers (self-employed)
surveyed had their first percentage dealing with banks for taking loans. Irrespective of the
borrowers income and education level, majority of the customers opined that their first dealing
with the bank was to take advances, 44 percent of self-employed borrowers reported that it
took 76 to 181 days for getting advances and bank officials rarely conducted inspection. The
study pointed out the need for adopting adequate marketing techniques to inform the rural
masses about the different schemes of the banks.
Nag and Shivaswamy (1990)23 observed that there was a distinct preference of bank
customers to bank with foreign banks notwithstanding the fact that foreign banks stipulate
relatively high levels of minimum amounts to be maintained as deposits and charge relatively
high interest rates and service costs. In respect of deposit supplies, their strategy had been to
procure from a segmented part of the total supplies of deposits of large size from a relatively
small number of depositors. Large accretion of non-resident deposits with foreign banks was
mainly because of the familiarity of the names of foreign banks operating in India to banks
abroad. Many foreign banks have assiduously built up the reputation of being sensitive to the
needs of non-resident. Indians by quick response to their queries through modem
communication systems. The study underlined the quality of customer service required for
mobilizing deposits of non-resident Indians.
Manmohah Singh Gill (1990)24 conducted a study on the problems of the borrowers in
obtaining bank loans and impact of bank loans on their economic and social status. The study
revealed that most of the loans under the sponsored schemes are sanctioned on the
recommendations of the political leaders and officials and the beneficiaries give bribe to these
leaders and officials for obtaining loans. The study also reveals that though there is no much
39
progress in the social status, the loans have helped the beneficiaries to improve their income
status.
The Committee on Consortium Lending (1993)25 recognized the need to shift to market
driven banking from the present practices. The recommendations of the committee have
therefore been to ensure financial discipline on the part of borrowers together with
improvement in the services offered by banking system in the inter- report till the system
completely switches over to market driven banking. So they recommended the introduction
of syndication together with continuation of the existing consortium arrangement with
substantial modifications. In order to usher in market driven banking the committee
recommended enhancement of threshold limit to Rs. 25 crores for mandatory formation of
consortium when a borrower enjoys fund based credit limits from more than one bank.
Raju (1993)26 studied the levels of savings and the manner of their distribution among
different physical and financial assets of household sector in Kerala and identified the factors
influencing their savings behavior. He found that major portions of the savings of households
in Kerala was in the form of financial savings and that too in the form of bank deposits. Banks
still have an upper hand in mobilising the savings of households especially in the matter of
foreign remittances. Personal selling and exchange of ideas with friends and relatives were
the major influencing factors in spreading the information about financial savings schemes
among the households. He observed that the rate of growth in bank deposits did not match
with the rate of growth in domestic savings. The surplus generated in the economy was being
diverted to other forms of savings, some of which were non- productive. The study
recommended that the banks should chalk out suitable deposit promotion strategies to educate
and motivate different categories of households.
Subramanyam (1993)27 made by an empirical analysis on dis-intermediation from the
household sectors portfolio preferences point of view based on demand model of five assets
including bank deposits. The study revealed that the household sectors preferences between
bank deposits and lending to private corporate sector tended to be in favour of the latter and
against the former. Similarly, if investments in life insurance and pension funds were to
become more attractive in terms of new schemes, concessions etc., then these investments
were most likely to cut in to bank intermediation and deposit growth. The study suggested
40
that bank's ability to market service oriented deposit accounts will have to be boosted to target
the urban salaried and business population for meeting their structured needs in the process of
which new deposit expansion opportunities are created.
Srivastava (1994)28 made an attempt to find out the extent of satisfaction with customer
service offered by four premier nationalized banks from northern and southern regions. The
study brought out some of the critical areas of customer dissatisfaction. He found that 32 part
of the respondents were unhappy and 16 percent respondents were neutrals after a visit to
their bank. The most frequently faced problems by depositors were categorized into
behavioral problems and procedural problems. Majority of customers surveyed opined that
the bank were not opening at the proper time and too much delay in opening accounts and
other transactions. The study strongly recommended marketing approach in the functioning
of these banks.
Rajagopala Nair (1994)29 studied the rural bank marketing in Kerala and evaluated the
products or services offered by banks in rural areas. He has also tried to examine the
diversified needs of rural customers in the state through a field survey of 250 rural bank
customers in Ernakulam district. The study showed that proximity, quick loan facility and
better services were the three major variables influencing the rural customer for selecting the
banks. Interest rate on deposit was not a criteria for rural depositors and they give preference
to security and liquidity. He observed that delay in sanctioning loans and inconvenience in
rural commercial banks have paved the way of flourishing business of money lenders.
Commercial banks in rural areas have not adopted any novel method to promote banking
activities in their operational areas. 89 percent of the customers were totally unaware of the
interest rate on any of the bank deposit schemes and 64 percent were unaware of rate of interest
on lending schemes. The faith of rural customers in nationalised bank was comparatively high.
So they should impart better services to improve their image. Personal selling was suggested
as the best marketing technique for rural branches.
Nalini (1996)30 studied the impact of mutual funds on the deposit mobilisation of commercial
banks, the researcher examined the awareness level and adoption level of mutual funds among
household investors in Thiruvananthaparam District and found that the advent of mutual funds
has brought in expected changes in the growth of bank deposits and their ownership pattern,
41
but the changes were not of a significant magnitude. New capital issues and UTI units were
found influencing bank deposits adversely. The low interest on bank deposits and the
competition from other investments avenues like capital market and real estate created
difficulty for banks in their deposit mobilisation. The study revealed that a major portion of
the financial savings of the household sector was held in the form of provident fund, LIC and
Post office savings schemes. The location of residence influenced significantly the investors
preference to banks and mutual funds. The occupation of investors also exerted influence on
their decision of investment in mutual funds. The study recommended the introduction of
new deposit schemes tailored to suit the needs of household investors.
Das (2001)31 conducted a study titled, A Study on the Repayment Behaviour of Sample
Borrowers of Arunachal Pradesh State Co-operative Apex Bank Limited, examined the
repayment behaviour of loans, covering a period of 1994-95 to 1998-99. On the basis of
primary data collected, researcher concluded that incidence of default was highest among
borrowers for agriculture allied activities loans. Agriculture loans, horticulture loans, small
business loans and service sector loans were ranked 2nd, 3rd, 4th and 5th in a descending
order on the basis of percentage of defaulters. The study further revealed that the number of
defaulter loans were highest in government sponsored schemes.
Singh and Singh (2006)32 in their study titled, Funds Management in Central Co- operative
BanksAnalysis of Financial Margin made an attempt to estimate the impact of identified
variables on the financial margin of the central co-operative banks in Punjab with the help of
correlation and multiple step-wise regression approach. The ratio of own funds to working
funds and the ratio of recovery to demand were observed to be having positive significant
influence on financial margin, whereas overdues to total loans were found to be negatively
associated with the concerned parameter. A high percentage of own funds and timely recovery
of previous loans outstanding, as a source of funding new loans by the bank, increased the
financial margin in these bank.
42
2.2 THEORETICAL FRAMEWORK

RATIO ANALYSIS
Ratio analysis involves an analysis of the inter relationships between various items in the
profit and loss account and balance sheet. It is a very useful tool in measuring the financial
performance and financial strength of any business organization. Comparison of financial
ratios of a concern for a given period with that of the past or with that of the other firms, or
with its own prescribed standards will not only measure its comparative financial position and
financial strength, but will also pin-point areas which require corrective measures. The
different ratios used by the researcher are as follows.
1. CREDIT TO DEPOSIT RATIO
Credit-Deposit ratio is proportion of loan created by banks from their deposits. Credit-Deposit
ratio measures the efficiency and ability of the banks management in converting the deposits
available with the banks into loans. The loan may be get high or low earnings depends up on
the head of the loan. This ratio commonly used as a statistic for assessing a bank's sit by
dividing the banks total loans by its total deposits. This ratio is also known as the Loan to
Deposit ratio, high ratio indicates that the banks might not have enough liquidity to cover any
unforeseen fund requirement, and the low ratio indicates that the banks may not be earnings
as much as they could be.
TOTAL LOANS
CREDIT TO DEPOSIT RATIO
*100
TOTAL DEPOSITS
2. TOTAL LOANS TO TOTAL ASSET RATIO

This is the ratio of the total loans credited by bank to total asset. This ratio indicates banks
aggressiveness in lending which ultimately results in better profitability. Higher ratio indicates
that loans to the total asset are high and the low ratio indicates that loans to the total asset are
low. The value of the total asset is excluding the revolution of all the assets.
43
TOTAL LOANS
TOTAL LOANS TO TOTAL ASSET RATIO =
*100
TOTAL ASSETS
3. TOTAL BORROWINGS TO TOTAL DEPOSITS RATIO

The ratio is used for analysing profitability is of the bank. The borrowings to deposits ratio is;
BORROWINGS
BORROWINGS TO TOTAL DEPOSITS RATIO =
*100
TOTAL DEPOSITS
4. LIQUID ASSETS TO DEMAND AND TIME LIABILITIES RATIO

Liquid assets (cash in hand, cash at bank and money at call and short notice) to demand and
time liabilities (fixed deposit account, savings bank account, current account and money at
call and short notice account) ratio shows the liquidity position of the bank. The ratio is;
LIQUID ASSETS
LIQUID ASSETS TO DTL RATIO =
*100
DEMAND AND TIME LIABILITIES
5. DEPOSITS TO WORKING CAPITAL RATIO

The ratio shows that the relationship between deposits and working capital of the bank. The
ratio is;
44
TOTAL DEPOSITS
DEPOSITS TO WORKING CAPITAL RATIO =
*100
WORKING CAPITAL
6. LOANS TO WORKING CAPITAL RATIO

This ratio shows the relationship between loans and advances to working capital of the bank.
The ratio is;
TOTAL LOANS
LOANS TO WORKING CAPITAL RATIO =
*100
WORKING CAPITAL
7. DEMAND DEPOSITS TO TERM DEPOSITS RATIO

The ratio shows the relationship between demand deposits and term deposits. In demand
deposit includes savings and current deposit and term deposit includes fixed deposit of the
bank. The ratio is;
DEMAND DEPOSITS
DEMAND DEPOSITS TO TERM DEPOSITS RATIO =
*100
TERM DEPOSITS
8. CASH DEPOSIT RATIO

The ratio shows the relationship between cash and bank balances and total deposits of the
bank. The ratio is;
45
CASH AND BANK BALANCE

CASH DEPOSIT RATIO =
*100
TOTAL DEPOSITS
TREND ANALYSIS
Trend analysis is the presentation of amounts as a percentage of a base year. Trend simply
means general tendency, analysis of these general tendency is called trend analysis. In the
context of financial analysis, trend analysis means analyzing general tendency of each item in
the financial statement on the basis of the base year data. In short, comparing the past data
over a period time with the base year called trend analysis.
Trend analysis is one of the tools for the analysis of the companys monetary statements for
the investment purposes. Investors use this analysis tool a lot in order to determine the
financial position of the business. In a trend analysis, the financial statements of the company
are compared with each other for the several years after converting them in the percentage.
METHOD OF TREND ANALYSIS
1. Trend percentage
2. Trend ratio
3. Graphic method
STEPS IN COMPUTATION OF TREND ANALYSIS
1. Select base year, generally first year of the study is taken as base year.
2. Take figure of base year as 100.
3. Calculate trend percentage in relation with base year, each year figure divided with
base year.
This chapter highlighted the reviews of different authors and theoretical concepts. The next
chapter will be focusing on the analysis of the data collected from the bank by using financial
tools.
46
CHAPTER 3
DATA ANALYSIS AND INTERPRETATION
47
This chapter is focusing on the analysis of loans and deposit issued by Cherpalchery Service
Co-operative Bank. The analysis will be done through loans schedule and annual reports of
the bank, semi descriptive and semi analytical research design was used for the study. The
ratios used for the analysis are as follows.
1. CREDIT TO DEPOSIT RATIO
TOTAL LOANS
CREDIT TO DEPOSIT RATIO
*100
TOTAL DEPOSITS
2. TOTAL LOANS TO TOTAL ASSET RATIO
TOTAL LOANS
TOTAL LOANS TO TOTAL ASSET RATIO =
*100
TOTAL ASSETS
3. TOTAL BORROWINGS TO TOTAL DEPOSITS RATIO

BORROWINGS
BORROWINGS TO TOTAL DEPOSITS RATIO =
*100
TOTAL DEPOSITS
4. LIQUID ASSETS TO DEMAND AND TIME LIABILITIES RATIO
LIQUID ASSETS
LIQUID ASSETS TO DTL RATIO =
*100
DEMAND AND TIME LIABILITIES
48
5. DEPOSITS TO WORKING CAPITAL RATIO
TOTAL DEPOSITS
DEPOSITS TO WORKING CAPITAL RATIO =
*100
WORKING CAPITAL
6. LOANS TO WORKING CAPITAL RATIO
TOTAL LOANS
LOANS TO WORKING CAPITAL RATIO =
*100
WORKING CAPITAL
7. DEMAND DEPOSITS TO TERM DEPOSITS RATIO
DEMAND DEPOSITS
DEMAND DEPOSITS TO TERM DEPOSITS RATIO =
*100
TERM DEPOSITS
8. CASH DEPOSIT RATIO
CASH AND BANK BALANCE

CASH DEPOSIT RATIO =
*100
TOTAL DEPOSITS
49
DATA COLLECTION
The data were collected from the following documents.
Loan Schedules
1. Loan schedule of Cherpalchery Service Co-operative Bank 2009-10 (Refer annexure 1)
Annual Reports
1. Annual report of Cherpalchery Service Co-operative Bank 2009-10 (Refer annexure 6
and 7 )
and 7 )
and 7 )
and 7 )
and 7 )
50
RATIO ANALYSIS
TABLE 3.1
CREDIT DEPOSIT
TOTAL LOANS
TOTAL DEPOSITS
(Amount in crores)
(Amount in crores)
2009-2010
505175709
591448414
85.41
2010-2011
690268693
705365172
97.85
2011-2012
752831639
859416515
87.59
2012-2013
865702295
968041022
89.42
2013-2014
891520217
1118300494
79.72
YEAR
RATIO (In
Percentage)
Source: - Annual report of CSCB

CHART 3.1
120
100
80
60
40
20
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
INTERPRETATION:
The above table and chart has shown the relationship between the loans and deposit in each
year from 2009-10 to 2013-14. 2010-11 has shown a high ratio (97.85%) and 2013-14 shows
the least ratio (79.72%) compared to other years. High ratio indicates that more amount is
utilized from the deposits for loan purpose. The analysis revealed that the bank is using
borrowers fund for the asset creation/income generation and for the effective function of the
bank. The bank having good amount of deposits which is used for the loan purpose.
51
TABLE 3.2
YEAR
TOTAL LOANS
TOTAL ASSETS
(Amount in crores)
(Amount in crores)
TOTAL LOANS TO
TOTAL ASSET
RATIO (In Percentage)
2009-2010
505175709
685525527
73.69
2010-2011
690268693
811194359
85.09
2011-2012
752831639
999775608
75.30
2012-2013
865702295
1141132327
75.86
2013-2014
891520217
1299026344
68.62

CHART 3.2
90
80
70
60
50
40
30
20
10
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
INTERPRETATION:
The above table and chart shows the total loans to total asset ratio. In the year 2009-10 and
2010-11 ratio was 73.69% and 85.09%, in the next two years ratio was nearly constant to
75.30% and 75.86% respectively, while in the year 2013-14 it has decreased to 68.62%. The
analysis also revealed higher the ratio, the more risky for the banks to have higher defaults.
52
TABLE 3.3
TOTAL BORROWINGS TO TOTAL DEPOSITS RATIO
TOTAL
TOTAL
BORROWINGS
YEAR
(Amount in crores)
TOTAL DEPOSITS
BORROWINGS TO
(Amount in crores)
TOTAL DEPOSITS
2009-2010
16150000
591448414
2010-2011
8057535
705365172
2011-2012
18452630
859416515
2012-2013
12629992
968041022
2013-2014
9000
1118300494
2.7305
1.1423
2.1471
1.3046
0.0008

CHART 3.3
TOTAL BORROWINGS TO TOTAL DEPOSITS RATIO
3
2.5
2
1.5
1
0.5
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
INTERPRETATION:
The above table and chart revealed that regarding total borrowings to total deposits ratio, the
highest percentage was seen during the period of 2009-10 and the lowest percentage during
the period of 2013-14. The decline in the ratio shows increase in the volume of deposits of
the bank. The analysis concluded that the bank is accepting more fund from the customers
than borrowings from the other financial institutions.
53
TABLE 3.4
LIQUID ASSETS TO DEMAND AND TIME LIABILITIES RATIO
YEAR
TOTAL LIQUID
DEMAND AND TIME
ASSET (Amount in
LIABILITIES
crores)
(Amount in crores)
2009-2010
129218834
569380626
2010-2011
63357432
676777264
2011-2012
150809245
781495913
2012-2013
166534269
869906679
2013-2014
276594044
938877284
LIQUID ASSET TO
DEMAND AND TIME
LIABILITIES RATIO
(In Percentage)
22.69
9.36
19.30
19.14
29.46

CHART 3.4
LIQUID ASSETS TO DEMAND AND TIME LIABILITIES RATIO
35.00
30.00
25.00
20.00
15.00
10.00
5.00
0.00
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
INTERPRETATION:
Table 3.4 points out that during the study period bank had maintained excess demand and time
liabilities which is more profitable. The lowest percentage is 9.36% in 2010-11. It is more
favorable to the bank and the highest percentage was in the year 2013-14, which will adversary
affect the profitability. It analysis indicates that the bank have to take necessary steps to reduce
the quantum of liquid assets maintained.
54
TABLE 3.5
TOTAL DEPOSITS
YEAR
(Amount in crores)
TOTAL WORKING
DEPOSITS TO
CAPITAL (Amount in
WORKING CAPITAL
crores)
2009-2010
591448414
599865741
2010-2011
705365172
731829731
2011-2012
859416515
899124292
2012-2013
968041022
991383535
2013-2014
1118300494
1131895848
98.60
96.38
95.58
97.65
98.80

CHART 3.5
100.00
99.00
98.00
97.00
96.00
95.00
94.00
93.00
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
INTERPRETATION:
Table 3.5 showed that during the period 2009-10 to 2013-14, the ratio has increased
considerably every year. The highest ratio was 98.80% in the year 2013-14, the lowest ratio
was 95.58% in the year 2011-12. The general increase in the ratio of the bank may be
attributed to their success in deposit mobilization policy.
55
TABLE 3.6
TOTAL LOANS
YEAR
(Amount in crores)
TOTAL WORKING
TOTAL LOANS TO
CAPITAL (Amount in
WORKING CAPITAL
crores)
2009-2010
505175709
599865741
2010-2011
690268693
731829731
2011-2012
752831639
899124292
2012-2013
865702295
991383535
2013-2014
891520217
1131895848
84.21
94.32
83.73
87.32
78.76

CHART 3.6
100.00
95.00
90.00
85.00
80.00
75.00
70.00
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
INTERPRETATION:
The analysis revealed that total loans to working capital ratio during the period of 2009-10
to 2013-14. The magnitude of this ratio was highest during the period of 2010-11. The
lowest percentage of ratio was in the year of 2013-14. The ratio of total loans to working
capital has declined in all years except 2010-11. The position of the bank was satisfactory,
loans constituted a major part in the working capital.
56
TABLE 3.7
TOTAL DEMAND
TOTAL TERM
DEMAND DEPOSIT
DEPOSIT (Amount in
DEPOSIT (Amount in
TO TERM DEPOSIT
crores)
crores)
2009-2010
86673982
482706644
2010-2011
88732136
588045128
2011-2012
108883937
672611976
2012-2013
120454366
749452313
2013-2014
129163664
809713620
YEAR
17.94
15.09
16.18
16.07
15.94

CHART 3.7
18.50
18.00
17.50
17.00
16.50
16.00
15.50
15.00
14.50
14.00
13.50
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
INTERPRETATION:
The analysis revealed that the ratio of demand deposits (savings and current deposits) to
term deposits (fixed deposit) of CSCB shown a general decline trend during this period.
The highest ratio was during the period of 2009-2010 and the lowest ratio was in the year
of 2010-11. The general decline of this ratio in CSCB was due to the introduction of new
schemes in fixed deposit and the higher rate of interest for this deposit. It revealed that the
demand deposit of the bank has shown a declining trend. Compared with fixed deposit
amounts in demand deposits is very less.
57
TABLE 3.8
CASH DEPOSIT RATIO
TOTAL CASH
YEAR
BALANCE (Amount in
crores)
TOTAL DEPOSIT
(Amount in crores)
2009-2010
129218834
591448414
2010-2011
35562599
705365172
2011-2012
150809245
859416515
2012-2013
166534269
968041022
2013-2014
276594044
1118300494
CASH DEPOSIT
RATIO
(In Percentage)
21.85
5.04
17.55
17.20
24.73

CHART 3.8
CASH DEPOSIT RATIO
30.00
25.00
20.00
15.00
10.00
5.00
0.00
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
INTERPRETATION:
The above table and chart revealed the cash deposits ratio, the highest percentage was seen
during the period of 2013-14 and the lowest percentage during the period of 2010-11. The
decline in the ratio shown that the bank has less amount of liquid asset for meeting the
requirements of deposit holders.
58
LOANS
TABLE 3.9
COMPOSITION OF TOTAL LOANS
Year
2009-10
2010-11
2011-12
2012-13
2013-14
Average
Short
Medium
Ordinary
Term
Term
Loans
Loans
Loans
6349734
140494500
(0.80%)
(1.8%)
7053319
15307000
301421427
750645230
1074426976
(0.6%)
(1.4%)
(28%)
(70%)
(100%)
7443706
7961660
283895577
1065129200
1364430143
(20.8%)
(78%)
(100%)
(0.55%)
(0.65%)
229993082
(29.4%)
Gold Loans
Total
540995406
791387672
(68%)
(100%)
5597905
7862400
461404902
1393899595
1868764802
(0.3%)
(0.4%)
(24.3%)
(75%)
(100%)
5643800
7663080
379147156
1392139128
1784593164
(0.6%)
(21%)
(0.4%)
(78%)
(100%)
6417692.8
10568718
331172428.8
1028561712
1376720551
(0.5%)
(0.8%)
(24%)
(74.7%)
(100%)
Source: - Loan statement of CSCB

INTERPRETATION:
Table 3.9, it shows the total loan provided by the CSCB the bank has granted above 70%
of the fund contributed to gold loan. But in the case of short term loan below 1% in every
year. The highest amount was granted during the period of 2012-13, it was 186.87 crore.
The lowest amount granted 79.13 crore in 2009-10. The bank is mainly focusing on gold
loan scheme. The customers are preferring gold loan because of it is easy and convenient to
take loan from the bank by keeping their gold ornaments.
59
TABLE 3.10
COMPOSITION OF SHORT TERM LOAN
Year
2009-10
2010-11
2011-12
2012-13
2013-14
Average
Kissan
Interest
Self-Help
Total
Credit
Free Paddy
Group Loan
Card
Loan
6239734
110000
6349734
(98.2%)
(1.8%)
(100%)
6923319
130000
7053319
(98%)
(2%)
(100%)
7393706
50000
7443706
(99.3%)
(0.7%)
(100%)
5587905
10000
5597905
(99.8%)
(0.2%)
(100%)
5643800
5643800
(100%)
(100%)
6357692.8
60000
6417692.8
(99%)
(1%)
(100%)

INTERPRETATION:
Table 3.10 disclosed the composition of short term loans granted by CSCB. Loans for
Kissan Credit Card claimed the major portion of total loans granted which accounted to 100
percentage in 2013-14 and 98 percentage in 2010-11, it is the lowest. Major portion of the
short term loan provided as Kissan Credit Card. Rest of the small percentage of short term
loans contributed to interest free paddy loan and has not granted any amount for self-help
group loan. Most of the farmers take Kissan Credit Card loan from the bank because of less
loan security and procedure of Kissan Credit Card loan is very simple. There is no demand
for self-help group loan because of high demand for kudumbasree agricultural and business
loans.
60
TABLE 3.11
COMPOSITION OF MEDIUM TERM LOAN
Year
Kudumbasree
Business
Kudumbasree
Other
Agricultural
loan
Business
Loans
Loan
Total
Loan
1564109
6823021
2116427
4950821
(10%)
(44%)
(14%)
(32%)
2821166
6335672
3174846
3877954
(17%)
(39%)
(20%)
(24%)
3741075
6373605
4430806
2691285
(22%)
(37%)
(25%)
(16%)
2353680
5153903
4752890
1910937
(18%)
(36%)
(33%)
(13%)
1820667
4788668
5253809
1307352
(14%)
(36%)
(40%)
(10%)
13170496
(100%)
2460139
5894974
3945756
2947670
15248539
(16%)
(39%)
(26%)
(19%)
(100%)
2009-10
2010-11
2011-12
2012-13
2013-14
Average
15454378
(100%)
16209638
(100%)
17236771
(100%)
14171410
(100%)

INTERPRETATION:
The table 3.11 presented in composition medium term loans of CSCB. It is clear from the
table that the total amount of medium term loans granted business loan and kudumbasree
business loan. Business loan is having maximum share as 44 percent in 2009-10 and 40
percent in 2013-14. Self-employment is the main reason for increasing the demand for the
business loans.
61
TABLE 3.12
COMPOSITION OF ORDINARY TERM LOAN
Year
PDCB
NAMT
Cash Credit
Deposit
Loan
Loan
NAMT
2009-10
57827350
(28%)
103772000
(49%)
14149921
(7%)
34250310
(16%)
2010-11
64322450
(22%)
164730000
(57%)
23822060
(8%)
36855172
(13%)
2011-12
57440500
(22%)
96487000
(36%)
50123775
(19%)
60148828
(23%)
2012-13
59694950
(14%)
144630000
(32%)
57066290
(13%)
184814111
(41%)
2013-14
54378000
(15%)
169975000
(46%)
82876246
(23%)
56782729
(16%)
45607658.4
(14%)
74570230
(24%)
58732650
135918800
(19%)
(43%)
Average
Total
209999581
(100%)
289729682
(100%)
264200103
(100%)
446205351
(100%)
364011975
(100%)
314829338.4
(100%)
INTERPRETATION:
As per Table 3.12 ordinary loans granted by CSCB for NAMT recorded the maximum
amount of total loans. Of the total loans granted, NAMT accounted the maximum amount
in all the five years. The highest figure is 57 per cent in 2010-11 and the lowest figure 32
was per cent in 2012-13. In the ordinary loans, PDCB NAMT and deposit loans are next
maximum generating income to the bank. This bank has granted minimum amount of loan
for cash credit loan. The main reason for increasing NAMT loan is that the demand for the
customers for marriage purpose, land acquisition, other business purposes etc.
62
TREND ANALYSIS
TABLE 3.13
TREND ANALYSIS OF TOTAL LOANS DISBURSED BY CSCB
TOTAL LOANS
YEAR
DISBURSED
TREND
(Amount in crore)
2009-2010
79.13
100
2010-2011
107.44
136
2011-2012
136.44
172
2012-2013
186.87
236
2013-2014
178.45
225

CHART 3.13
TREND ANALYSIS OF TOTAL LOANS DISBURSED BY CSCB
250
200
150
100
50
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
INTERPRETATION:
The table and chart revealed the loans disbursed by CSCB. It is showing an upward trend, but
in the last year it shows a decreasing trend. By taking 2009-10 as the base year the highest
amount disbursed was 186.87 crore rupees in the year 2012-13 which is double than the 79.13
crore rupees in the base year. From this analysis it can be concluded that the demand for the
loan is shown an increasing trend. The reason for the increase of loan is due to the popularity
of various schemes issued by the bank.
63
TABLE 3.14
SHORT TERM
YEAR
LOANS DISBURSED
TREND
(Amount in crore)
2009-2010
0.634
100
2010-2011
0.705
111.19
2011-2012
0.744
117.35
2012-2013
0.559
88.17
2013-2014
0.564
88.95

CHART 3.14
140
120
100
80
60
40
20
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
INTERPRETATION:
From the study it has been found that the short term loan has increase till 2011-2012, after
that it declined. The above trend line shows fluctuating trend. There is a decrease in the
overdue in the year 2012-2013. But in the year 2012-2013 and 2013-2014 there is a slight
increase in the distribution of short term loan. The highest trend is in the year 2011-2012,
which was 117.35 percentage. The reason for decline of demand of short term loan is due
to lack of cultivation in rural areas.
64
TABLE 3.15
MEDIUM TERM
YEAR
LOANS DISBURSED
TREND
(Amount in crore)
2009-2010
1.404
100
2010-2011
1.530
108.974359
2011-2012
0.796
56.6951567
2012-2013
0.786
55.98290598
2013-2014
0.766
54.55840456

CHART 3.15
120
100
80
60
40
20
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
INTERPRETATION:
The above table and chart shows that the disbursement of medium term loans. An increase
has been seen up to 2010-2011after that it declined. Then in the year 2010-2011 it come
down. The main reason for decreasing the medium term loan is due to less demand of
kudumbasree loans by womens for getting this loan they need to have atleast ten people
in a group which they are finding very difficult to get.
65
TABLE 3.16
ORDINARY TERM
YEAR
LOANS DISBURSED
TREND
(Amount in crore)
2009-2010
22.99
100
2010-2011
30.14
131.100
2011-2012
28.38
123.44
2012-2013
46.14
200.69
2013-2014
37.91
164.89

CHART 3.16
250
200
150
100
50
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
INTERPRETATION:
From the above table and chart it was found the ordinary loan disbursed by the bank is
increasing trend. From the year 2009-2010 to 2011-2012 the trend is slight constant. Then
in the year 2011-2012 it increased to a point of 123.44, and in 2012-2013 there is a high
increase in the ordinary loan that is 200.69 percentage. The ordinary loan is mainly utilized
for marriage purpose, land acquisition, building construction etc. due to this reason it is in
high demand in the bank.
66
TABLE 3.17
GOLD LOANS
YEAR
DISBURSED
TREND
(Amount in crore)
2009-2010
54.09
100
2010-2011
75.06
138.76
2011-2012
106.51
196.91
2012-2013
139.38
257.68
2013-2014
139.21
257.36

CHART 3.17
300
250
200
150
100
50
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
INTERPRETATION:
The above table and chart is showing the disbursement of gold loan in the CSCB. The trend
is showing constant increase from 2009 to 2012. Then in the year 2012-2013 it shows a
slight decreasing trend in 2013-14. The highest trend is in the year 2012-2013, it was
257.68% and in the year 2013-2014 the trend is 257.36%. The lowest trend was 138.76 in
the year 2010-11.
67
TABLE 3.18
KCC
YEAR
DISBURSED
TREND
(Amount in crore)
2009-2010
0.623
100
2010-2011
0.692
111.07
2011-2012
0.739
118.61
2012-2013
0.558
89.56
2013-2014
0.564
90.52

CHART 3.18
140
120
100
80
60
40
20
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
INTERPRETATION:
From the study it has been found that KCC loan has increased till 2011-2012, after that it
declined. The above trend line show fluctuating trend. There is a decrease in the overdue
in the year 2012-2013. But in the year 2012-2013 and 2013-2014 there is like in the
distribution of KCC. The highest trend is in the year 2011-2012, which is 118.61%.
68
TABLE 3.19
TREND ANALYSIS OF INTEREST FREE PADDY LOAN
INTEREST FREE
PADDY LOAN
YEAR
TREND
DISBURSED
(Amount in crore)
2009-2010
0.011
100
2010-2011
0.013
118.18
2011-2012
0.005
45.45
2012-2013
0.001
9.09
2013-2014

CHART 3.19
TREND ANALYSIS OF INTEREST FREE PADDY LOAN
140
120
100
80
60
40
20
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
INTERPRETATION:
From the above table and chart revealed that the disbursement of interest free paddy loan
has shown an increase in the year 2010-2011. Then in the year 2010-2011 onwards it
decreased drastically, the main reason for the decrease in the loan is lack of cultivation in
the rural areas. Then in the year 2013-2014 it became zero. From this analysis it can be
concluded that the lack of cultivation led to decline of the loan. After 2013-14 the bank
stopped providing interest free paddy loan.
69
TABLE 3.20
TREND ANALYSIS OF KUDUMBASREE AGRICULTURE LOAN
KUDUMBASREE
YEAR
AGL DISBURSED
TREND
(Amount in crore)
2009-2010
0.345
100
2010-2011
0.487
141.15
2011-2012
0.140
40.57
2012-2013
0.176
51.01
2013-2014
0.130
37.68

CHART 3.20
TREND ANALYSIS OF KUDUMBASREE AGRICULTURE LOAN
160
140
120
100
80
60
40
20
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
INTERPRETATION:
From the analysis of table and chart it is found in the year 2010-11 bank disbursed highest
amount of kudumbasree agricultural loan. It showed an increasing and decreasing trend.
During the period of 2011 to 2014 it was constant. The main reason for decreasing the loan
was agricultural problems faced by the kudumbasree units.
70
TABLE 3.21
TREND ANALYSIS OF KUDUMBASREE BUSINESS LOAN
KUDUMBASREE
YEAR
BL DISBURSED
TREND
(Amount in crore)
2009-2010
0.295
2010-2011
0.432
2011-2012
0.260
2012-2013
0.317
2013-2014
0.295
100
146.44
88.13
107.45
100

CHART 3.21
TREND ANALYSIS OF KUDUMBASREE BUSINESS LOAN
160
140
120
100
80
60
40
20
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
INTERPRETATION:
From the above table and chart revealed that the disbursement of kudumbasree business
loan, it shows that increase and decrease trend. In the year 2010-2011 is the highest trend
which is 146.44.Then in the year 2010-2011 onwards it started decreasing drastically, the
main reason for the decrease in the loan is due to lack of support from the public and
internal problems faced by the kudumbasree business units.
71
TABLE 3.22
BUSINESS LOAN
YEAR
DISBURSED
TREND
(Amount in crore)
2009-2010
0.548
100
2010-2011
0.496
90.51
2011-2012
0.333
60.76
2012-2013
0.215
39.23
2013-2014
0.276
50.36

CHART 3.22
120
100
80
60
40
20
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
INTERPRETATION:
From the above chart it has been found that the disbursement of business loan is
fluctuating trend. There is a decline in the business loan from the year 2009-2013. During
the year 2010 to 2012 the trend shows an increasing trend. After 2013-14 the bank stop
for providing business loan due to recovery problems in business loan.
72
TABLE 3.23
OTHER LOAN
YEAR
DISBURSED
TREND
(Amount in crore)
2009-2010
0.210
2010-2011
0.110
2011-2012
0.056
2012-2013
0.076
2013-2014
0.037
100
52.38
26.66
36.19
17.61

CHART 3.23
120
100
80
60
40
20
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
INTERPRETATION:
From the above table and chart shows that the disbursement of other loans. The graph is
showing a decreasing trend in every year except 2012-13. In the year 2013 - 2014 the
trend shows very least amount was disbursed. The highest amount disbursed during the
period of 2009-10 which is 0.210 crore. The other loans shows highly declining trend. The
main reason for declining other loans is the bank charged maximum 14.5 % interest to the
other loan categories.
73
TABLE 3.24
PDCB NAMT
YEAR
DISBURSED
TREND
(Amount in crore)
2009-2010
5.78
100
2010-2011
10.80
186.85
2011-2012
5.74
99.30
2012-2013
5.96
103.11
2013-2014
5.43
93.94

CHART 3.24
200
180
160
140
120
100
80
60
40
20
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
INTERPRETATION:
The above table and chart shows that the disbursement of PDCB NAMT loans. It shows
fluctuating trend in every year. The highest trend was in the year of 2010-11 it started to
declined very badly from 2011-12 onwards. In the year 2011 to 2014 the trend shows there
is a constant level of the trend point. The highest amount disbursed during the period of
2011-12 which is 10.80 crore. The PDCB NAMT is having limit of two lakhs while the
employees are more interested to go with NAMT loans due to high limit.
74
TABLE 3.25
NAMT DISBURSED
YEAR
(Amount in crore)
2009-2010
10.37
2010-2011
16.47
2011-2012
9.68
2012-2013
14.46
2013-2014
16.99
TREND
100
158.82
93.34
139.44
163.83

CHART 3.25
180
160
140
120
100
80
60
40
20
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
INTERPRETATION:
The above table and chart is showing the fluctuating trend of NAMT in CSCB. The highest
trend was in the year of 2013-14. While the lowest trend was in the year of 2011-12.In NAMT
loan limit is above Rs. 200, 000. Hence many of the customers are preferring this product.
75
TABLE 3.26
CASH CREDIT
YEAR
LOAN DISBURSED
TREND
(Amount in crore)
2009-2010
1.41
2010-2011
2.38
2011-2012
5.01
2012-2013
5.70
2013-2014
8.28
100
168.79
355.31
404.25
587.23

CHART 3.26
700
600
500
400
300
200
100
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
INTERPRETATION:
The above table and chart is showing rising trend of cash credit loan of CSCB from 2009-14.
The highest trend was in the year of 2013-14. While the lowest trend was in the year of 201011. The main customers of the cash credit loan is business man, traders etc., through the cash
credit loan account the customers can withdraw amount according to their requirement. Which
made the product highly popular in the bank.
76
TABLE 3.27
DEPOSIT LOAN
YEAR
DISBURSED
TREND
(Amount in crore)
2009-2010
3.42
2010-2011
3.68
2011-2012
6.01
2012-2013
18.48
2013-2014
5.67
100
107.60
175.73
540.35
165.78

CHART 3.27
600
500
400
300
200
100
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
INTERPRETATION:
Deposit loan are loans issued to the customers based on their fixed deposit. The above table
and chart is showing trend of deposit loan of CSCB from 2009-14. The highest disbursement
amount was in the year of 2012-13. The reason behind declining deposit loans is due to lack
of interest of the customers is taking loan on their deposit. Customers are investing money to
get more return.
77
DEPOSITS
TABLE 3.28
COMPOSITION OF DEPOSITS
Deposits
2009-10
Fixed
482706644 588045128 672611976 749452313 809713620
deposit
Savings
(81%)
77974109
(83%)
85849941
deposit
(13%)
(12%)
(12%)
(13%)
Current
8699873
(2%)
2882195
(0.40%)
3869666
(0.5%)
3442990
(0.4%)
(12.19%)
4442069
(0.405%)
16529230
(3%)
19217880
(3%)
23551090
(3%)
16624380
(1.4%)
17196540
(1.7%)
50000
(0.008%)
4475200
(0.60%)
39112990
(5%)
37616747
(4%)
37121862
(3.7%)
5442760
(0.992%)
4849030
(1%)
2791830
(0.3%)
1676050
(0.2%)
55550
(0.005%)
deposit
Recurring
deposit
Season
deposit
Athulya
deposit
2010-11
2011-12
2012-13
2013-14
(79.2%)
(81%)
(82%)
105014271 117011376 124721595
Total
591402616 705319374 846951823 925823856 993251236

(100%)
(100%)
(100%)
(100%)
(100%)
Average
660505936
(81%)
102114258
(12.6%)
4667358.6
(0.57%)
18623824
(2.3%)
23675359.8
(3%)
2963044
(0.53%)
135424964
(100%)
INTERPRETATION:
Table 3.15 revealed the composition of deposit in CSCB from the year 2009-14. The fixed
deposits recorded the major portion of total deposits which increased from 48.27 crore in
2009-10 to 80.97 crore in 2013-14. Savings deposit has increased but it kept same level of
per cent every year. Season deposit increased rapidly it was 3.91 crore in 2011-12. Athulya
deposit decreased drastically from Rs. 54.42 lakh to Rs. 55550. Current and recurring
deposit are showing a fluctuating trends.
78
TABLE 3.29
TOTAL DEPOSITS
YEAR
PERCENTAGE
TREND
(Amount in crore)
INCREASE OR
DECREASE
2009-2010
59.14
100
--
2010-2011
70.53
119.25
19.25
2011-2012
85.94
145.31
21.84
2012-2013
96.80
163.67
12.63
2013-2014
111.83
189.09
15.52

CHART 3.29
TREND
200
180
160
140
120
100
80
60
40
20
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
YEAR
INTERPRETATION:
The above table and graph has shown that in the year 2009-10 onwards the total deposit of
the bank is showing continuously increasing. In the year 2012-13 and 2013-14 shown has a
high increase trend than the preceding years. The bank has provided special schemes to senior
citizen attracting more customers to this deposit.
79
TABLE 3.30
PERCENTAGE
FIXED DEPOSIT
YEAR
TREND
INCREASE OR
(Amount in crore)
DECREASE
2009-2010
48.27
100
--
2010-2011
58.80
121.81
21.81
2011-2012
67.26
139.34
14.38
2012-2013
74.94
155.25
11.418
2013-2014
80.97
167.74
8.04

CHART 3.30
180
160
140
TREND
120
100
80
60
40
20
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
YEAR
INTERPRETATION:
The above table and graph details that in the year 2009-10 onwards the fixed deposit has
shown a regular increase till the year 2013-14. In the year 2012-13 and 2013-14 shown has a
high increase than the preceding years. The highest trend was 167.74 during the period of
2013-14. The rising trend was due to rising high rate of interest to the fixed deposits.
80
TABLE 3.31
SAVINGS DEPOSIT
YEAR
PERCENTAGE
TREND
INCREASE OR
(Amount in crore)
DECREASE
2009-2010
7.79
100
2010-2011
8.58
110.14
10.14
2011-2012
10.50
134.78
22.37
2012-2013
11.70
150.19
11.42
2013-2014
12.47
160.07
6.58
--

CHART 3.31
180
160
140
TREND
120
100
80
60
40
20
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
YEAR
INTERPRETATION:
The above table and chart shows that saving deposit is increasing every year. The chart is
showing an upward trend from 2009-2014. The increase in deposits is due to promotional
activities under taken by the bank to motivate the customers to save more.
81
TABLE 3.32
CURRENT DEPOSIT
YEAR
PERCENTAGE
TREND
INCREASE OR
(Amount in crore)
DECREASE
2009-2010
0.869
100
--
2010-2011
0.288
33.14
-66.85
2011-2012
0.386
44.41
34.02
2012-2013
0.344
39.58
-10.88
2013-2014
0.444
51.09
29.06

CHART 3.32
100
90
80
TREND
70
60
50
40
30
20
10
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
YEAR
INTERPRETATION:
From the above table and chart the current deposit trend is showing an upward trend. The bank
received highest current deposit is Rs. 0.869 crore during the period of 2009-10 and the lowest
deposit of Rs. 0.288 in the period of 2010-11.
82
TABLE 3.33
RECCURING
YEAR
PERCENTAGE
TREND
DEPOSIT
INCREASE OR
DECREASE
(Amount in crore)
2009-2010
1.65
100
2010-2011
1.92
116.36
16.36
2011-2012
2.35
142.42
22.39
2012-2013
1.66
100.60
-29.36
2013-2014
1.71
103.63
3.01

CHART 3.33
TREND ANALYSIS OF RECURRING DEPOSIT
160
140
TREND
120
100
80
60
40
20
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
YEAR
INTERPRETATION:
The above table and chart shows that recurring deposit has increased year to year till 201112. But after a decrease has found in the year 2012-13. In 2013-14 has shown a slight increase
i.e. from 1.66 to 1.71 crores, i.e. 103.63%.
83
TABLE 3.34
SEASON DEPOSIT
YEAR
PERCENTAGE
TREND
INCREASE OR
(Amount in crore)
DECREASE
2009-2010
0.005
100
--
2010-2011
0.447
8940
8840
2011-2012
3.911
78220
774.94
2012-2013
3.761
75220
-3.83
2013-2014
3.712
74240
-1.30

CHART 3.34
80000
70000
TREND
60000
50000
40000
30000
20000
10000
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
YEAR
INTERPRETATION:
From the above table and chart is showing the trend of season deposit. From 2009-2014 it
continuously increase. The highest amount in season deposit is Rs. 3.911crore and after that
it has shown a slight decrease.
84
TABLE 3.35
ATHULYA DEPOSIT
YEAR
PERCENTAGE
TREND
(Amount in crore)
INCREASE OR
DECREASE
2009-2010
0.544
100
--
2010-2011
0.484
88.97
-11.02
2011-2012
0.279
51.28
-42.35
2012-2013
0.167
30.69
-40.14
2013-2014
0.005
0.91
-97.00
Source: - Annual report of CSC

CHART 3.35
100
90
80
TREND
70
60
50
40
30
20
10
0
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
YEAR
INTERPRETATION:
The above table and chart has revealed the trend of athulya deposits. It is showing a decreasing
trend. It is a type of recurring deposits. In 2013-14 bank was not accepting athulya deposits
due to high rate of interest.
85
COMPARATIVE ANALYSIS OF LOANS AND DEPOSIT FROM THE

YEAR 2009-10 TO 2013-14
TABLE 3.36
COMPARATIVE ANALYSIS OF LOANS AND DEPOSIT IN THE YEAR 2009-10
Particular
Fixed
deposit
Savings
deposit
Current
deposit
Recurring
deposit
Season
deposit
Chaithanya
deposit
Athulya
deposit
TOTAL
DEPOSIT
Amount
(in lakh)
Percentage
4827.07
81.62
779.74
13.18
87.00
1.47
165.29
2.79
0.50
0.01
0.38
0.01
54.43
0.92
5914.4
100
Particular
Short term
loans
Medium term
loans
Ordinary loans
Gold loans
LOANS
Amount
(in lakh)
Percentage
63.66
1.26
165.71
3.28
2492.93
49.35
2329.46
46.11
5051.76
100

INTERPRETATION:
The above table shows that the fixed deposit is contributing 81.61% to total deposit. The
remaining deposits are having a share of 18.39% to total deposit. In the case of loans bank is
providing 46.11% and 49.35% to Gold loan and Ordinary loan respectively. The maturity
period of both the account is short term nature. The bank is accepting more amount of deposits
compared to loans provided.
86
TABLE 3.37
Particular
Fixed
deposit
DEPOSIT
Amount
Percentage
Particular
(in lakh)
5880.451
Short term
loans
83.36
Savings
deposit
858.849
Current
deposit
28.821
Recurring
deposit
192.178
Season
deposit
Chaithanya
deposit
Athulya
deposit
44.752
LOANS
Amount
(in lakh)
68.00
Medium term
loans
173.93
Ordinary loans
3515.49
12.18
Percentage
0.99
2.52
50.93
0.41
Gold loans
3145.25
45.57
2.72
0.63
0.379
48.490
0.01
0.69
7053.92
TOTAL
6902.7
100
100

INTERPRETATION:
The above table shows that deposit collected in the year 2010-11 was 7053.92 lakh as deposit
and 6902.7 lakh as loan. 83.36% of deposit is contributed from the fixed deposit and the
remaining deposits having a proportion of 16.6%. The 50.93% loan has been given as ordinary
loan and the gold loan is 45.57%. Rest of the loan provided were short term and medium term
loans.
87
TABLE 3.38
Particular
Fixed
deposit
Savings
deposit
Current
deposit
Recurring
deposit
Season
deposit
Chaithanya
deposit
Athulya
deposit
Niravu
deposit
DEPOSIT
Amount
(in lakh)
6726.12
1050.14
38.70
235.51
391.13
0.38
27.92
124.19
Percentage
78.26
12.22
Percentage
Short term
loans
Medium term
loans
Ordinary loans
0.45
Gold loan
2.74
LOANS
Amount
(in lakh)
68.86
142.80
3674.07
3642.58
Percentage
0.91
1.90
48.80
48.39
4.55
0.00
0.32
1.45
TOTAL
8594.08
100.00
7528.31
100.00
INTERPRETATION:
The table shows that in the year 2011-12 bank has disbursed 7528.31 lakh as loan and 8594.08
lakh as deposits. Savings deposit, current deposit, recurring deposit, season deposit, athulya
deposit and niravu deposit has contributed 12.22%, 0.45%, 2.74%, 4.55%, 0.32% and 1.45%
respectively to the total deposit and both the gold loan and ordinary loan having the 48.39%
and 48.80% of total loan. It shows a high security to the bank asset and it funding a high rate
of return to the bank.
88
TABLE 3.39
Particular
Fixed
deposit
Savings
deposit
Current
deposit
Recurring
deposit
Season
deposit
Chaithanya
deposit
Athulya
deposit
Niravu
deposit
DEPOSIT
Amount
(in lakh)
Percentage
7494.52
1170.11
34.43
166.24
376.17
0.38
16.76
421.71
77.42
12.09
Percentage
Short term
loans
Medium term
loans
Ordinary loans
0.36
Gold loan
1.72
LOANS
Amount
(in lakh)
68.46
132.21
3979.26
4477.09
Percentage
0.79
1.53
45.97
51.72
3.89
0.00
0.17
4.36
TOTAL
8657.02
9680.33
100.00
100.00
INTERPRETATION:
The above table is showing that the fixed deposit has contributed 7494.52 lakh i.e. 77.42
percent of total deposit. The remaining deposits are contributed the 22.58 percent to total
deposit. In the case of loans bank has provided 4477.09 and 3979.26 lakhs as Gold loan and
Ordinary loan respectively, which is 97.68 percent of total loan. In this year bank has accepted
9680.33 lakh amount of deposits.
89
TABLE 3.40
Particular
Fixed
deposit
Savings
deposit
Current
deposit
Recurring
deposit
Season
deposit
Chaithanya
deposit
Athulya
deposit
Niravu
deposit
TOTAL
DEPOSIT
Amount
Percentage
8097.14
72.41
1247.22
11.15
44.42
0.40
171.97
1.54
371.22
3.32
0.38
0.00
0.56
0.00
1250.03
11.18
11182.92
100.00
Particular
Short term
loans
Medium term
loans
LOANS
Amount
(in lakh)
Percentage
60.243
0.68
115.404
1.29
Ordinary loans
4639.48
52.04
Gold loans
4100.08
45.99
8915.2
100.00

INTERPRETATION:
The table shows that fixed deposit has contributed 72.41% amount of fund to total deposit,
niravu deposits are created 11.18% of total deposit, savings deposit contribute 11.15% of total
deposits. Contribution from other deposits are 0.40%, 1.54%, 3.32 (current, recurring and
season deposits). During the year the demand of athulya deposit has decreased. In the case of
loan 52.04% of the loan was contributed from ordinary loans and 45.99% from the gold loans.
Rest of the loan contributed from the short term and medium term loans was is 0.68% and
1.29% respectively. During the year bank has provided 8915.2 lakh amount of loan, but the
acceptance is more than granted that is 11182.92 lakh. It shows that the bank is in profitable
stage.
90
In this chapter the researcher has gone through loans and deposit analysis using ratios and
trend analysis. Total loans to total asset ratio, credit deposit ratio, liquid asset to demand and
time liabilities ratio, deposit to working capital ratio, loans to working capital ratio,
borrowings to deposit ratio, demand deposit to term deposit ratio, and cash deposit ratio were
used for ratio analysis. Data were summarized in tables, according to table and chart the
interpretation are given, from the analysis the researcher has got an overall picture about the
loans provided and deposit accepted by the CSCB bank. The fixed deposit and the ordinary
and gold loans are more popular products and generating more income to the bank. The next
chapter is focusing on the summary, findings, suggestions and conclusion about the study.
91
CHAPTER 4
SUMMARY, FINDINGS, SUGGESTIONS AND
CONCLUSION
92
In this chapter researcher will detail the summary of the project followed by findings
suggestions and conclusion about the study. In the summary part shows the overall description
about the project except chapter four. In findings and suggestions is based on the data analysis
conducted by the researcher and conclusion is focusing on the concluding part of the study.
4.1 SUMMARY
The first chapter dealt with industry profile, company profile, objectives of the study and
research methodology, the industry profile included the details related with co-operative
banking structure in India. The co-operative banking structure in India mainly classified into
urban and rural co-operative banks. The company profile dealt with the details about the
Cherpalchery Service Co-operative Bank. The research methodology part discussed about
statement of problem, research tools, scope and significance of study and limitations of the
study. Chapter two dealt with the review of literature and theoretical concept that has been
used in this study. It shows the viewpoints of different authors and institutions about the topic
and in the theoretical concept shows that different tools used for analysing the data. In chapter
three the researcher has gone through loans and deposit analysis using tools like trend analysis
and ratio analysis and data representation tables like composition tables and comparative
tables. Total loans to total asset ratio, credit deposit ratio, deposit to working capital ratio,
loans to working capital ratio, borrowings to total deposit ratio, liquid asset to demand and
time liabilities ratio, demand deposit to term deposit ratio and cash deposit ratio were used for
ratio analysis. Data were summarised in tables, according to table and chart the interpretation
are given from the analysis the researcher has got an overall picture about the loans provided
and deposit accepted by in the CSCB bank. The fixed deposit and the gold loans are more
popular and generating more income to the bank from the loans and deposit respectively. In
the year 2013-14 the board of directors of the bank decided to stop some type of deposits and
loans due to the high rate of interest and recovery problems faced in some loans.
93
4.2 FINDINGS
1. The credit deposit ratio analysis from the year 2009-10 to 2013-14 revealed that total
deposit by the bank is more compared to the total loan provided. The analysis is revealed
that the bank is using borrowers fund for the asset creation/income generation and for the
effective function of the bank. The bank having a good amount of deposits which is used
for the loan purpose. (Refer table & chart no: 3.1)
2. The loans to total asset shows that the maximum assets are hold in the form of loans. It
revealed that higher the ratio is more risky for the bank. The bank has maintain between
75 to 85 percent as total loan to total deposit ratio. (Refer table & chart no: 3.2)
3. The borrowings to total deposit ratio shows that the ratio in which borrowings are made
from other institution. The analysis reveals that the ratio is declining shows increasing the
volume of deposits. (Refer table & chart no: 3.3)
4. The liquid asset to demand and time liabilities ratio shows the relationship with liquid
asset and deposits. It revealed that the lowest percentage of ratio is more favorable to the
bank. It indicates that the bank has taken necessary steps to reduce the quantum of liquid
assets. (Refer table & chart no: 3.4)
5. The deposit to working capital ratio shows that the relationship between total deposit and
working capital. The general increase in this ratio of the bank may be attributed to their
success in deposit mobilization policy. If the percentage of the ratio is high it is more
favorable to the bank. The bank has maintained high rate of deposit working capital ratio.
(Refer table & chart no: 3.5)
6. The study reveals that relationship between loans to working capital ratio. The position of
the bank was satisfactory, loans constituted a major part of the working capital. (Refer
table & chart no: 3.6)
7. The analysis revealed that the ratio of demand deposits (savings and current deposits)
to term deposits (fixed deposit) of CSCB shown a general decline trend during this
period. The general decline of this ratio in CSCB was due to the introduction of new
schemes in fixed deposit and the higher rate of interest for this deposit. It revealed that
the demand deposit of the bank shows declining trend. Compare with fixed deposit
amounts in demand deposits is very less. (Refer table & chart no: 3.7)
94
8. Cash deposits ratio revealed that the bank has maintained less amount of liquid asset
for meeting the immediate requirements of its deposit holders. (Refer table & chart no:
3.8)
9. The composition of total loans shows that customers are preferring gold loan because of
it is more convenient to take loan from the bank by keeping their gold ornaments. Gold
loan is the major source for income of the bank. In the case of short term loan there is a
less demand and utilization of this loan is very less. (Refer table no: 3.9)
10. In the short term loan Kissan Credit Card is major portion of the short term loan. In 201314 the interest free paddy loan become zero. The main reason for the decline the demand
of interest free paddy loan is lack of cultivation and in 2013-14 the bank stopped for
providing this loan. (Refer table no: 3.10)
11. In medium term loans the bank is contributing major portion of the amount to the business
purposes that is Business loan and Kudumbasree Business loans. But in each year shows
that fluctuation trend in business loans. Self-employment is the main reason for increase
in the demand for business loans. (Refer table & chart no: 3.11)
12. In ordinary loans major portion of the loan is provided to NAMT and next is PDCB
NAMT. The main reason for increasing the NAMT loans is majority of the employees are
choosing this loan because of the loan is used for personal purpose. (Refer table no: 3.12)
13. It was found from the analysis that in each year the demand for personal loan in
Cherpalcherry service co-operative bank is increasing drastically. The reason for
increasing the loan due to popularity of various schemes issued by the bank. (Refer table
& chart no: 3.13)
14. The disbursement of Short term loan is fluctuating every year due to lower interest rate
than other loans. The main reason for decline in the short term loan is due to lack of
cultivation interest in rural areas. (Refer table & chart no: 3.14)
15. In medium term loans shows that a highly decreasing trend. The main reason for
decreasing medium term loan is due to the internal problems faced by kudumbasree units
and lack of recovery in business loans. (Refer table & chart no: 3.15)
16. In ordinary loans shows that fluctuation in the last five years. The ordinary loans mainly
utilized for marriage purpose, land acquisition, building construction and other business
95
purposes etc., helps to increase the demand of ordinary loans. The ordinary loans is a type
of mortgage loans. (Refer table & chart no: 3.16)
17. Gold loan disbursement has increased rapidly due high demand. Customers prefer gold
loan, because it is more convenient for the customers for getting loan from the bank and
it has a very less credit risk. (Refer table & chart no: 3.17)
18. It was found that due to the lower interest rate than other loans, the disbursement of Kissan
Credit Card loan is fluctuating every year. The main reason for declining Kissan Credit
Card loan is lack of cultivation and agricultural problems of farmers. (Refer table & chart
no: 3.18)
19. Interest free paddy loan has shown a decreasing trend. The demand for this loan in 201314 was zero. The main reason for decrease in the demand is due to lack of cultivation. In
2013-14 the director board of the bank decided to stop the loan because of less demand.
(Refer table no & chart no: 3.19)
20. From the study it was found that the demand for kudumbasree agricultural loan has
decreased. The reason is because of agricultural problems faced by kudumbasree units.
(Refer table & chart no: 3.20)
21. From this study it was found that the demand for kudumbasree business loan also declined
in each year. The main reason for decreasing this loan is the problems of faced by women
entrepreneurship and lack of support from the public. (Refer table & chart no: 3.21).
22. From the analysis the main reason for declining the business loan is its less demand. But
in 2013-14 it has shown an increasing trend. In 2013-14 bank stopped providing business
loans because of the recovery problems. (Refer table & chart no: 3.22)
23. From the study it is clear that in other loan category the interest rate is maximum 14.5
percent, hence this is the main reason for decline the demand for this loan. (Refer table &
chart no: 3.23)
24. The PDCB NAMT loan shows a fluctuation trend. The availability of NAMT loan is the
main reason for declining the demand of PDCB NAMT loan. (Refer table & chart no:
3.24)
25. The major portion of the medium term loan is NAMT. The demand for this loan has
increased, because the majority of employees are preferring NAMT loans. In NAMT loan
96
limit is above Rs. 200000. Many of them are preferring it for the purpose of marriage, land
acquisition etc. (Refer table & chart no: 3.25)
26. From the study it is clear that the demand for cash credit loan has increased in each year.
The main customers of the cash credit loan is business people, traders etc., through the
cash credit loan account the customers can withdraw amount according to their
requirements. (Refer table & chart no: 3.26)
27. The deposit loan of the bank has decreased during the last year. The deposit loan are loans
issued to the customers based on their fixed deposits. The reason behind the declining
deposit loan is due to lack of interest of the customers is taking loan on their deposits.
Customers are investing money to get more income. (Refer table & chart no: 3.27)
28. In the composition table of deposit it is revealed that majority of the customers are
selecting fixed deposit scheme. Because it have high rate of interest compared to other
deposits. (Refer table no: 3.28)
29. From the study it is revealed that the total deposit of the bank has increased each year. The
bank has better public image in the society. (Refer table & chart no: 3.29)
30. From this study it is clear that the fixed deposit of the bank is increasing each year.
Because of the high interest provided to fixed deposit holders and special scheme to senior
citizens. (Refer table & chart no: 3.30)
31. The savings deposit of the bank has shown an upward trend. It revealed that the bank is
providing better customer services. (Refer table & chart no: 3.31)
32. The current deposit of the bank shows decreasing trend, because of lack of demand of the
deposit. The main reason for fluctuating current deposit is due to the profitability position
of the business customers. (Refer table & chart no: 3.32)
33. From the study it is revealed that the recurring deposit of the bank is showing a fluctuating
trend in each year. The main reason for fluctuation is changing the saving habit of the
customers. (Refer table & chart no: 3.33)
34. From the study it was found that the season deposit has shown huge increasing trend
compared to 2009-10. The main reason for increasing season deposit is high rate of
interest. But in 2013-14 the bank stopped providing season deposit because of high rate of
interest on the deposit. (Refer table & chart no: 3.34)
97
35. A five year deposit scheme named athulya was started by the bank to mobilize more
deposit. In the year 2013-14 bank stopped this scheme due to maturity period and high
rate of interest. (Refer table & chart no: 3.35)
4.3 SUGGESTIONS
Short term suggestions
1. The bank should try to minimize and simplify the formalities related with loans
disbursal for the convenience of the customers especially illiterate customers.
2. The bank should conduct seminar related with agricultural loans and its worthiness. It
will create awareness among the public about the agricultural loans granted by the bank.
3. The bank should participate in different industrial programs like INDEXPO,
HOMEXPO etc., to educate the general public about the services provided by the bank.
4. The bank should conduct mega events like mega loan melas, deposit mobilization
programs etc., to capture more customers.
5. The bank should try to minimize and simplify the loan procedures related with
kudumbasree units which will helps to attract more womens to this field.
Long term suggestions
1. The demand for gold loan is higher than compared with other loans. It is advised that the
bank should add new schemes under gold loans to attract new customers.
2. The bank is advised to provide priority sector lending at lower rate of interest to deserving
people. But better monitoring and supervision by the bank will be required to ensure the
fund will be disbursed to the right person and it utilized for the right purpose, which will
turn to increase the profitability of the bank.
3. The service co-operative bank can implement the electronic services of nationalized
banks like mobile message services, mobile banking, core-banking services etc., to help
its customers.
4. The bank should start the ATM facility, which will create more customers from the
public.
98
4.4 CONCLUSION
The project entitled A Study on Loans and Deposit in Cherpalchery Service Co-operative
Bank Ltd (CSC Bank), Cherpalchery is focusing on the analysis of loans and deposits in
Cherpalchery Service Co-operative Bank Ltd. The bank was registered as a Co-operative
Society under Act VI Of 1932 (Madras Co-operative Society Act 1932) on 20th November1967.The study has a primary objective with two secondary objectives. The primary objective
of the study was to study different types of loans and deposits provided by Cherpalchery
Service Co-operative Banks (CSCB). Secondary objectives was to study the growth in loans
and deposits and suggest some measures based on the findings to improve the performance of
the bank. Under the research methodology part researcher has mentioned about the research
problem discussed in the study, the research design used to solve the problem by using
secondary source of data of source followed by certain limitations. Major limitation faced
during the study was non-availability of confidential information and the limitations of the
secondary data.
Review of literature consisted of various authors study regarding the topic. Review of
literature is mainly dealt with the research conducted on various loans and deposits provided
by different financial institutions. In the third chapter the researcher has gone through loans
and deposit analysis using ratios and trend analysis. Total loans to total asset ratio, credit
deposit ratio, liquid asset to demand and time liabilities ratio, deposit to working capital ratio,
loans to working capital ratio, borrowings to deposit ratio, demand deposit to term deposit
ratio, and cash deposit ratio were used for ratio analysis. Data were summarized in tables,
according to table and chart the interpretation are given, from the analysis the researcher has
got an overall picture about the loans provided and deposit accepted by the CSCB bank. The
fixed deposit and the ordinary and gold loans are more popular products and generating more
income to the bank. The next chapter is focusing on the summary, findings, suggestions and
conclusion about the study.
To conclude, it can be stated that CHERPALCHERY SERVICE CO-OPERATIVE BANK has
been following well-established systems, policies, and procedures with respect to accepting
deposit and lending loans. The bank has collected and invested in a systematic manner,
99
disbursement of loan and acceptance of deposit. However, as suggested, the bank should
consider some additional strategies and policies to face challenges of the competitors in future,
to improve the new deposit schemes and provide good lending facility to customers.
The fixed deposit and the gold loans are more popular and generating more income to the
bank. The researcher would like to conclude that the bank has to take proper policies and steps
to increase the income with low risk, so that the bank can grow and expand its business
efficiently. The bank should improve the deposit schemes and more lending facility, so that
they can increase the profit.
It was a wonderful experience and worthwhile to be a part of CHERPALCHERY SERVICE COOPERATIVE BANK LIMITED for the project work. The study highlighted some suggestions
to improve bank performance and helpful for the Board of directors and top level managers
to frame good policies related with loans and deposits of the bank. A study on the loans and
deposits in the bank is also useful for the public as they can judge whether the institution is
able to fulfil its social responsibilities or not and will help them to make decision about
investing in this bank or not. The limitations associated with study can be made useful as
another study topic by another interested person. Hope that Co-operative bank will flourish to
new heights better utilizations of the available resources and innovative management. The
organization will be benefited from this study and from the suggestions given by the
researcher to the organization. It can improve its profit performance furthermore and the
overall satisfaction level at the organization and its performance level will increase by good
deposit and loans policies.
100
BIBLIOGRAPHY
101
BIBLIOGRAPHY
COMPANY RECORDS
1. Annual reports of CSCB
a. Annual report of Cherpalchery Service Co-operative Bank 2009-10 (Refer annexure
6 and 7 )
b. Annual report of Cherpalchery Service Co-operative Bank 2010-11 (Refer annexure
6 and 7 )
c. Annual report of Cherpalchery Service Co-operative Bank 2011-12 (Refer annexure
6 and 7 )
d. Annual report of Cherpalchery Service Co-operative Bank 2012-13 (Refer annexure
6 and 7 )
e. Annual report of Cherpalchery Service Co-operative Bank 2013-14 (Refer annexure
6 and 7 )
2. Loan statements of CSCB
a. Loan schedule of Cherpalchery Service Co-operative Bank 2009-10 (Refer

annexure 1)
b. Loan schedule of Cherpalchery Service Co-operative Bank 2010-11 (Refer
annexure 2)
c. Loan schedule of Cherpalchery Service Co-operative Bank 2011-12 (Refer
annexure 3)
d. Loan schedule of Cherpalchery Service Co-operative Bank 2012-13 (Refer
annexure 4)
e. Loan schedule of Cherpalchery Service Co-operative Bank 2013-14 (Refer
annexure 5)
102
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12. Avadhani V.H, Motwani and Angatli V.B., Mobilization of Rural savings Banking
Experience, R.B.I. Occasional Papers .VoI. X, 1987 pp 101 - 107.
103
13. Gary. H. Raddon, Quality service, a low cost profit strategy, Bank Marketing, September
1987 pp-10-12.
14. Malhotra, H C. and Kulshrestha, D K. "Banking for Weaker Sections.' Agricultural
Banker. Vol X (4). October-December 1987, pp. 22-27.
15. Ojha, P. D. "Banking and Economic Development in India. Problems and Prospects,''
Reserve Bank of India Bulletin. Vol. XLI (I), January 1987.
16. Rangarajan, C. "Central Banking and Economic Development Indian Experience,"
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17. Muhammad Yunus 'The Poor as the Engine of Development" Economic Impact, NO 63,
1999. pp 27-31.
18. Muniraj. R. "Improving Recovery Performance through Effective Financing of
Agriculture," Agricultural Banker, Vol. XI (2) April-June 1988, pp. 12-20.
19. Archana Mathur, Customer Service in Public Sector banks, A comparitive study, Indian
Journal of Marketing, Vol. XVIII No. 3-10 April - June 1988, p.39.
20. Malyadri. P., Commercial Banks in the customer service - A study Banking finance,
June 1988, pp. 10-12.
21. Sarma, U K., "Role of Banks in Rural Development," Reserve Bank of India Bulletin.
Vol XLIII (I), January 1989, pp. 33136.
22. Babu Joseph, Evaluation of the working of Lead Banks in Kerala, Doctoral Thesis,
University of Kerala, 1990 - (unpublished).
23. Nag A.K. and Shiva swamy. K., Foreign Banks in India, Recent Performance, R.B.J.
occasional papers, Vol. II No.4, December 1990, pp-296-300.
24. Manmohan Singh Gill, "Weaker Sections and Credit Facilities: An Analysis of Delivery
System." Prajnan, Vol. XIX (4), October- December 1990, pp. 395-432.
25. Shetty. J. V. Report of the committee on consortium Lending Reserve Bank of India,
Bombay, 1993.
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University of Kerala, 1993 (Un published).
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Indian Institute of Bankers, VoI.64, NO.2 April - June 1993 -pp 70-74.
104
28. Srivastava .4.K., Customer Service in banks, Need for Marketing Approach , Marketing
of Services, Edited by Bidhi Chand, Rawat Publications, Jaipur, 1994 pp. 25-49.
29. Rajagopala Nair, Rural Bank Marketing in Kerala, Doctral Thesis, Univesity of Kerala,
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30. Nalini J., Impact of Mutual Fund Schemes on the Deposit Mobilisation of Commercial
Banks in Kerala, Doctoral Thesis - University of Kerala - 1996 (Unpublished).
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Arunachal Pradesh State Co-operative Apex Bank Limited, Indian Co-operative Review,
Vol. XXX No.2 (Oct.), New Delhi.
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Volume 5, Issue 3, Hyderabad.
WEB SITES
http://shodhganga.inflibnet.ac.in:8080/jspui/bitstream/10603/4270/9/09_chapter%
202.pdf
http://dyuthi.cusat.ac.in/xmlui/bitstream/handle/purl/1628/DyuthiT0113.pdf?sequence=11
http://shodhganga.inflibnet.ac.in/bitstream/10603/544/9/09_chapter2.pdf
http://shodhganga.inflibnet.ac.in:8080/jspui/bitstream/10603/6359/10/10_chapter
%202.pdf
http://www.owngoldandsilver.com/article/deposit-and-loan-banking.html
http://bankersupdate.blogspot.in/2014/12/the-co-operative-banks-are-smallsized.html
http://bankersupdate.blogspot.in/2014/12/the-co-operative-banks-are-smallsized.html
http://shodhganga.inflibnet.ac.in:8080/jspui/bitstream/10603/7058/13/13_chapter
%203.pdf
105
ANNEXURE
106
LOAN SCHEDULE OF CHERPALCHERY SERVICE CO-OPERATIVE BANK

2009-10
Annexure 1
Balance
opening
Issue
Receipt
Amount (In
rupees)
Amount (In
rupees)
Amount (In
rupees)
Amount (In
rupees)
Short term
loans
61228430
6349734
6112252
6365912
Medium term
loans
17287262
14049450
14389451
16947260
Ordinary
loans
167396550
229993082
148472831
248916801
Gold loan
173738412
540995406
481788028
232945790
Total loans
364550655
791387672
650762563
505175764
KCC
6080430
6239734
6021012
6299152
Interest free
paddy loan
Self-help
group loan
Kudumbasree
AGL
Kudumbasree
BL
48000
110000
91240
66760
1564109
3455000
2197943
2821166
2116427
2958000
1897581
3174846
Business loan
6823021
5482000
5969349
6335672
Other loans
4950821
2103050
3175917
3877954
PDCB NAMT
99657066
57827350
49478987
108005429
NAMT
48274503
103772000
38300032
113746470
Cash credit
loan
2237542
14149921
11884218
4503245
Deposit loan
11811100
34250310
34151601
11909809
Loan
107

2010-11
Annexure 2
Balance
opening
Issue
Receipt
Amount (In
rupees)
Amount (In
rupees)
Amount (In
rupees)
Amount (In
rupees)
Short term
loans
6365912
7053319
6618739
6800492
Medium term
loans
16947260
15307000
14861043
17393217
Ordinary
loans
248916801
301421427
198788702
351549526
Gold loan
232945790
750645230
669065508
314525512
Total loans
505175764
1074426976
889333992
690268748
KCC
6299152
6923319
6481979
6740492
Interest free
paddy loan
Self-help
group loan
Kudumbasree
AGL
Kudumbasree
BL
66760
130000
136760
60000
2821166
4870000
3950091
3741075
3174846
4320000
3064040
4430806
Business loan
6335672
496000
4922067
6373605
Other loans
3877954
1107050
2293719
2691285
PDCB NAMT
108005429
64322450
52876221
119451658
NAMT
113746470
164730000
79835642
198640827
Cash credit
loan
4503245
23822060
19689020
8636285
Deposit loan
11909809
36855172
34935731
13829250
Loan
108

2011-12
Annexure 3
Balance
opening
Issue
Receipt
Amount (In
rupees)
Amount (In
rupees)
Amount (In
rupees)
Amount (In
rupees)
Short term
loans
6800492
7443706
7358104
6886094
Medium term
loans
17393217
7961660
11082472
14272405
Ordinary
loans
351549526
283895577
268030151
367414952
Gold loan
314525512
1065129200
1015396470
364258242
Total loans
690268748
1364430143
1301867197
752831694
KCC
6740492
7393706
7276104
6858094
Interest free
paddy loan
Self-help
group loan
Kudumbasree
AGL
Kudumbasree
BL
60000
50000
82000
28000
3741075
1400000
2787395
2353680
4430806
2600000
2277916
4752890
Business loan
6373605
3330000
4549702
5153903
Other loans
2691285
561660
1342007
1910937
PDCB NAMT
119451658
57440500
53765498
123126659
NAMT
198640827
96847000
89610266
205877560
Cash credit
loan
8636285
50123775
46060624
12699436
Deposit loan
13829250
60148828
58202601
15775476
Loan
109

2012-13
Annexure 4
Balance
opening
Issue
Receipt
Amount (In
rupees)
Amount (In
rupees)
Amount (In
rupees)
Amount (In
rupees)
Short term
loans
6886094
5597905
5637997
6846002
Medium term
loans
14272405
7862400
8918569
13216236
Ordinary
loans
367414952
461404902
430888788
397931065
Gold loan
364258242
1393899595
1310448791
447709046
Total loans
752831694
1868764802
1755894146
865702350
KCC
6858094
5587905
5609997
6836002
Interest free
paddy loan
Self-help
group loan
Kudumbasree
AGL
Kudumbasree
BL
28000
10000
28000
10000
2353680
1760000
2293013
1820667
4752890
3175000
2674081
5253809
Business loan
5153903
2150000
2515235
4788668
Other loans
1910937
762400
1365985
1307352
PDCB NAMT
123126659
59694950
55827809
126993800
NAMT
205877560
144630000
120441282
230066278
Cash credit
loan
12699436
57066290
54745187
15020539
Deposit loan
15775476
184814111
184639079
15950508
Loan
110

2013-14
Annexure 5
Balance
opening
Issue
Receipt
Amount (In
rupees)
Amount (In
rupees)
Amount (In
rupees)
Amount (In
rupees)
Short term
loans
6846002
5643800
6465410
6024392
Medium term
loans
13216236
7663080
9343895
11535420
Ordinary
loans
397931065
379147156
313125565
463952657
Gold loan
447709046
1392139128
1429840371
410007803
Total loans
865702350
1784593164
1758775242
891520272
KCC
6836002
5643800
6465410
6014392
Interest free
paddy loan
Self-help
group loan
Kudumbasree
AGL
Kudumbasree
BL
10000
10000
1820667
1300000
1933469
1187198
5253809
2950000
3324460
4879349
Business loan
4788668
2766000
3258507
4296160
Other loans
1307352
377080
626386
1058046
PDCB NAMT
126993800
54378000
51941049
129430750
NAMT
230066278
169975000
107253470
292787807
Cash credit
loan
15020539
82876246
81483265
16413520
Deposit loan
15950508
56782729
55137107
17596130
Loan
111
DEPOSITS OF CHERPALCHERY SERVICE CO-OPERATIVE BANK

Annexure 6
DEPOSITS
Total
2009-10
2010-11
2011-12
2012-13
2013-14
Amount (In
Amount (In
Amount (In
Amount (In
Amount (In
rupees)
rupees)
rupees)
rupees)
rupees)
591448414
705365172
859416515
968041022
1118300494
482706644
588045128
672611976
749452313
809713620
77974109
85849941
105014271
117011376
124721595
8699873
2882195
3869666
3442990
4442069
16529230
19217880
23551090
16624380
17196540
50000
4475200
39112990
37616747
37121862
5442760
4849030
2791830
1676050
55550
37932
37932
37932
37932
37932
12418894
42171368
125003460
deposits
Fixed
deposits
Savings
deposits
Current
deposits
Recurring
deposits
Season
deposits
Athulya
deposits
Chaithanya
deposits
Niravu
deposits
112
PROGRESS CHART
Annexure 7
2009-10
2010-11
2011-12
2012-13
2013-14
Amount
Amount (In
Amount (In
Amount (In
Amount (In
(In rupees)
rupees)
rupees)
rupees)
rupees)
599865741
731829731
899124292
991383535
1131895848
Borrowings
16150000
8057535
18452630
12629992
9000
Cash
11027632
6317642
12373902
17566303
8574363
118191202
57039789
138435343
148967966
268019680
685525527
811194359
999775608
1141132327
1299026344
Working
capital
balance
Bank
balance
Total asset
113
CO-OPERATIVE BANKS IN KERALA

Figure 1
Co-operative Credit Societies in Kerala
Agriculture credit Societies
Short term
Non agriculture credit societies
Medium term Long term
State co-operative
Bank
Central Land
Urban bank
Development Bank
Societies
District co-operative Primary Land Development

Bank
Employees Co-operative
Banks
Village co-operative
Societies
114
Figure 2
Co-operative institution in Kerala
(Short and medium- term credit)
(Long- term credit)
1. Primary Credit Societies in villages
1. Primary Land Development Bank in

each subdivision
2. Central Co-operative Banks in each
2. Sate Co-operative Land Development
districts
Bank in each state
3. State Co-operative Bank in each state
115
ORGANISATION STRUCTURE
Figure 3
BOARD OF DIRECTORS
PRESIDENT
VICE PRESIDENT
SECRETARY
ASSISTANT SECRETARY
ACCOUNTANT
Assistant secretary
SENIOR CLERK
JUNIOR CLERK
ATTENDER
Junior clerk
PEON
116

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Major Project (Akhil.k)

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A STUDY ON LOANS AND DEPOSITS IN CHERPALCHERY

SERVICE CO-OPERATIVE BANK LIMITED,

In partial fulfillment of the requirement for the award of degree of

Under the guidance of

Reg No: LCANMBA013

1.2 INDUSTRY PROFILE

1.3 COMPANY PROFILE

1.4 STATEMENT OF THE PROBLEM

1.5 OBJECTIVES OF THE STUDY

1.6 RESEARCH METHODOLOGY

1.6.1 RESEARCH DESIGN

1.6.2 SOURCE OF DATA

1.6.3 TOOLS AND TECHNIQUES USED FOR DATA

1.7 SCOPE OF THE STUDY

1.8 LIMITATION OF THE STUDY

LITERATURE REVIEW AND THEORETICAL

DATA ANALYSIS AND INTERPRETATION

CREDIT DEPOSIT RATIO

TOTAL LOANS TO TOTAL ASSET RATIO

TOTAL BORROWINGS TO TOTAL DEPOSITS

LIQUID ASSETS TO DEMAND AND TIME

DEPOSITS TO WORKING CAPITAL RATIO

TOTAL LOANS TO WORKING CAPITAL RATIO

DEMAND DEPOSIT TO TERM DEPOSIT RATIO

CASH DEPOSIT RATIO

COMPOSITION OF TOTAL LOAN

COMPOSITION OF SHORT TERM LOAN

COMPOSITION OF MEDIUM TERM LOAN

COMPOSITION OF ORDINARY TERM LOAN

TREND ANALYSIS OF TOTAL LOANS

TREND ANALYSIS OF SHORT TERM LOANS

TREND ANALYSIS OF MEDIUM TERM LOANS

TREND ANALYSIS OF ORDINARY LOANS

TREND ANALYSIS OF GOLD LOAN

TREND ANALYSIS OF KISSAN CREDIT CARD

TREND ANALYSIS OF INTEREST FREE PADDY

TREND ANALYSIS OF KUDUMBASREE

TREND ANALYSIS OF KUDUMBASREE BUSINESS

TREND ANALYSIS OF OTHER LOAN

TREND ANALYSIS OF PDCB NAMT

TREND ANALYSIS OF NAMT

TREND ANALYSIS OF CASH CREDIT LOAN

TREND ANALYSIS OF DEPOSIT LOAN

TREND ANALYSIS OF TOTAL DEPOSITS

TREND ANALYSIS OF FIXED DEPOSIT

TREND ANALYSIS OF SAVINGS DEPOSIT

TREND ANALYSIS OF CURRENT DEPOSIT

TREND ANALYSIS OF RECCURING DEPOSIT

TREND ANALYSIS OF SEASON DEPOSIT

TREND ANALYSIS OF ATHULYA DEPOSIT

COMPARATIVE ANALYSIS OF LOANS AND

DEPOSIT IN THE YEAR 2009-10

COMPARATIVE ANALYSIS OF LOANS AND

DEPOSIT IN THE YEAR 2010-11

COMPARATIVE ANALYSIS OF LOANS AND

DEPOSIT IN THE YEAR 2011-12

COMPARATIVE ANALYSIS OF LOANS AND

DEPOSIT IN THE YEAR 2012-13

COMPARATIVE ANALYSIS OF LOANS AND

CREDIT DEPOSIT RATIO

TOTAL LOANS TO TOTAL ASSET RATIO

TOTAL BORROWINGS TO TOTAL DEPOSITS

LIQUID ASSETS TO DEMAND AND TIME

DEPOSITS TO WORKING CAPITAL RATIO