Kiran Project

Chapter-1
1.1Introduction to study
The study is conducted in THE BHARATH CO-OPERATIVE BANK LTD. on the
concept Schemes of Loans and Advances in order to know the different schemes of Loans
available or provided by THE BHARATH CO-OPERATIVE BANK LTD. The main aim of the
study is to know about the conditions, eligibility and restrictions for provision of different kinds
of loans & advances and also to know about the formalities for repayment.
The study is made to analysis the various kinds of loans sanctioned and yield on loans,
interest margin, Branches for the assessment year and for preceding four years through Tables,
Graphs, & providing with suggestions to inspire them for their improvement.
By providing Loans & Advances people can draw as possible to their requirements. Similarly
repayment can by make whenever deserved during the period the interest is determined on the
basis of running amount actually utilized by the borrower and not on the sanctioned limit
However a minimum charge may be payable on the unutilized balance irrespective of the level of
borrowing for availing of the facility. This form of bank financing of loans & advances is highly
attractive to the borrowers because of fast delivery. It is flexible in that although borrowed funds
are repayable on demand. The borrower has the freedom to draw the amount actually
outstanding.
Granting Loans & Advances is very significant aspect in the management of
Co-operative Bank. Checking the level of granting & the recovery on those are required decision
relating to the managing of those or to maintain the liquidity position after granting the loans to
the productive purposes.
Granting of Loans & Advances is very helpful for the public in order to fulfill their financial
requirements & their needs like having own house, own vehicles, higher education in abroad etc.
provision of loans to different sectors like Agricultural Sector & Industrial Sector leads to
development of economy. Finally it also encourages the people to undertake trading activities.
A Study on schemes of Loans, [B] The Bharat Co-Op Bank.,
1.2TOPIC OF THE STUDY

A STUDY ON SCHEMES OF LOANS & ADVANCES WITH REFERENCE TO THE
BHARATH CO-OPERATIVE BANK
1.3Need for the study

To identify the role of The Bharath co-operative bank is providing assistance to the
borrower.
To assess the financial benefits derived by borrower with regards to the term loan .
To suggest strategies for improving return on investment towards the profitability of the
bank through term loan.
To assess the borrower loyalty towards The Bharath co-operative bank.
1.4STATEMENT OF PROBLEM
In the present scenario, we are having more number of banks. In each bank they have
their own deposit schemes and Loans & Advances schemes to attract & help more number of
customers. Most of the banks perform their functions smoothly by balancing the activities in
between these two functions. Since this lending of Loans & Advances is one of the main
functions of banks, it is felt very necessary to study the various schemes of Loans & Advances
adopted by The Bharath co-operative bank and what are the formalities or procedures or rules &
regulations & eligibility criteria are considered by this bank while lending loans & advances to
the public.
1.5OBJECTIVES OF THE STUDY

To assess the different schemes of Loans and Advances
To study the conditions, formalities for repayment of loans
To know about the models of payment and repayment periods
To know the performance of Bank in collecting loans
To identify the recovery of advances by the Bank and the problems there off
To study and understand the follow up, monitoring advances
To help the Bank to improve and achieve the objectives
To provide suggestions on the basis of findings
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1.6SCOPE OF THE STUDY

The study is limited to the area of The Bharath co-operative Bank on to that of four years
only
1.7Methodology
PRIMARY SOURCE: Direct Interview
I have selected direct interview with the Manager and Bank officials of
The Bharath co-operative bank through which I collected all the terms and conditions for getting
loans under various schemes. Data regarding amount of loan sanctioned, their interest rates,
formalities for repayment under different schemes.
I have tabulated amount of loan provided under each scheme and the amount of loan
provided out of Total Advances under various schemes.
I have converted the amount of loan sanctioned into percentages keeping 2012-13 as a base year
and it has been compared in deciding which loan scheme is performing well.
SECONDARY SOURCE:
I have also collected the data from secondary sources like Annual Reports,
Brochure of the Bank.
1.8LITERATURE REVIEW
Title: A STUDY ON LOAN MANAGEMENT WITH SPECIAL REFERENCE TO THE

BELGAUM INDUSTRIAL CO-OPERATIVE BANK LIMITED, BELGAUM.
Srinivas K T (2014) studied loans management with references to the Belgaum industrial co-
operative bank. From the study it is found that there is great improvement in performance of the
company year by year in lending and recovering loans and financial soundness of the bank is
also commendable. This result is due to growth in population and income level of the people,
had lead to demand for housing and other loans requirements for the people in that locality.
Title: A STUDY ON CO-OPREATIVE BANKS IN INDIA.
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Soyeliya Usha L (2013) studied some successful co-operative banks in Delhi, and found there is
an increase in deposits in co-operative banks as a result there is increase in loans and advances
offered by them. And they suggested that the bank should adopt the latest technology of the
banking like ATMs, internet / online banking, credit cards etc. so as to bring the bank at par with
the private sector banks.
Title: AN ANALYTICAL STUDY ON FINANCIAL PERFORMANCE OF BIJAPUR

DISTRICT CENTRAL CO-OPERATIVE BANK LTD., BIJAPUR, KARNATAKA STATE,
Bharati R. Hiremath and Mamata Bannur (2014) Analyzed financial performance of
BDCC Bank Ltd., Bijapur. The analyzed data reveals that there was significant growth in the
deposit mobilization, membership, loans and advances, working capital, reserves, owned funds,
total income, total expenditure and over dues. With reference to the bank
Title: BENEFITS AND CHALLENGES FACED BY THE CO-OPERATIVE BANKS

Preety, Dr. D.K. Maheshwari, Dr. Prabhat Kumar and Pushpendra Kr. Verma (2016) studied
some successful co-op banks in Uttar Pradesh (India). The paper of the banks performance along
with the lending practices provided to the customers is herewith undertaken. The customer has
taken more than one type of loan from the banks. Moreover they suggested that the bank should
adopt the latest technology of the banking like ATMs, internet / online banking, credit cards etc.
so as to bring the bank at par with the private sector banks.
Title: A COMPARATIVE ANALYSIS OF LOANS AND ADVANCES IN SELECTED

URBAN CO-OPERATIVE BANKS
Dr. K. Sudhakara Rao (2013) analyzed loans and advances, cash-deposit ratio, overdue of
selected urban co-operative banks of coastal region of Andhra Pradesh for 10 years. The
performance of the banks was satisfactory. And they suggested to give high rate of intrest to
deposits and to give loans and advances to non members of the banks to attract new customers.
Title: A STUDY ON CO-OPERATIVE BANKS IN INDIA WITH SPECIAL

REFERENCE TO LENDING PRACTICES
Jyoti Gupta, Suman Jain (2012) has undertaken a study on some successful co-op banks in Delhi.
With special reference to lending practices most of the customers taken more than one type of
loans from these banks and customers preferred to take loans in co-operative banks over
commercial banks. Moreover they suggested that the bank should adopt the latest technology of
the banking like ATMs, internet / online banking, credit cards etc. so as to bring the bank at par
with the private sector banks.
Title: A STUDY ON FINANCIAL PERFORMANCE OF LOANS AND ADVANCES OF

GODAVARICO-OPERATIVEBANKLTD.
Ratnaparkhe Gajanan, Dr. A.B. Adsule (2015) analyzed performance of the Godavari co-op bank
with regard to deposit mobilization, issue of loans and advances, recovery of loans, regarding the
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overall working output of the Bank. The study shows the C.D ratio of the bank shows that the
deposits of the bank not utilized properly .They also suggested to attract local depositors with
attractive rate of intrest and proper supervision on loan recovery management.
Title: SOME ISSUES IN CUSTOMERS SERVICES OF URBAN COOPERATIVE

BANKS: A CASE STUDY OF BEED DISTRICT
DR. VILAS BHIKAJI KHANDARE (2012) studied selected co operative banks in Beed district.
It is observed from the study the customers of these banks said loan procedure is complicated.
It is also observed that the maximum customers take loan for professional purposes. 63 percent
customers utilize demand draft service; 18 percent customers utilize locker facility. Overdraft
facility utilized by only 6 percent customers. It means locker and overdraft facility utilization is
very low in urban cooperative banks. It is found from the study the customers of urban
cooperative banks in Beed district expected from these banks to provide more modern facilities
to them.
Title: GROWTH OF LOANS AND ADVANCES AND RECOVERY PERFORMANCE OF

STATE AGRICULTURAL DEVELOPMENT BANKS IN PUNJAB
Rajni and Dr. Navkiranjit Kaur Dhaliwal (2013) studied state co-operative agricultural and rural
development bank in Punjab by applying Statistical tools, over a period of 12years.
The study revealed that although overall growth of loans of the Bank during the study period is
good, but growth of total loans is inconsistent, due to chronic over dues, Govt. waiver and big
and willful defaulters loans outstanding has increased. There is positive correlation between
recovery and loans disbursed and loans outstanding. So recovery position of bank is better as
loan outstanding increases recovery of over dues also increases.
Title: EMERGING ISSUES IN URBAN CO-OPERATIVE BANKS

Asmita H. Vyas (2015) studied emerging issues in urban co-op banks. Concluded that Instead of
pushing and helping economic activity some urban co-operative banks have affected economic
activities negatively, to the extent of siphoning off poor peoples money in some cases. Urban co-
operative banks have been exposed to problems including lack of viability, resource
mobilization, and monopolization of their resources by a small group of people that include
mainly relatives and friends of directors, lack of proper control and supervision, lack of
professionalism, and the lack of a techno savvy environment, among other things. Multiple
reporting and controlling authorities give rise to confusion and ineffective control. However, the
area-wise and population-wise penetration of co-operative banks is both significant and
praiseworthy, a fact meriting appreciation.
Title: A STUDY ON LENDING PRACTICES OF URBAN CO-OPERATIVE BANKS IN

PUNE
Janardan K. Pawar (2013) studied co-operative banks of Pune. Came to the conclusion at present
there are there are several cooperative banks which are performing multipurpose functions of
financial, administrative, supervisor and development in nature of expansion and development of
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cooperative credit system. The customer has taken more than one type of loan from the banks.
Moreover they suggested that the bank should adopt the latest technology of the banking like,
ATMs, internet / online banking credit cards etc.so as to bring the bank at par with the private
sector banks.
Title: THE EMERGING URBAN CO-OPERATIVE BANKS (UCBS) IN INDIA:

PROBLEMS AND PROSPECTS
Dr.K.V.S.N Jawahar Babu, B.Muniraja Selkhar (2012) studied UCBs in India with respect to
their problems and prospects and came to the conclusion that, it is required to take certain
measures like for strengthening the ucbs sector sustenance of its growth is attendant to
Professionalization of its management, inculcating good corporate governance, technology
absorption and scrupulous adherence to regulatory framework since banking is risky business. In
future the urban cooperative banks are ready to face many challenges in the competitive
environment of both Public and Private sector banks expansion activities both vertically and
horizontally.
Title: URBAN CO-OPERATIVE BANKS IN INDIA AN OVERVIEW

Dr. S. Mayilvaganan and E. Soundararajan (2013) studied an overview of urban co-operative
banks in India and came to the conclusion that the Urban Co-operative Banks (UCBs) too have
traditionally been an important channel of financial inclusion for the middle and low income
sections in the semi-urban and urban area. Recently, the UCBs have increasingly started adopting
the three-pronged financial inclusion strategies used by commercial banks Banking
Correspondents (BC), no-frill accounts and promoting microfinance activities. Once again,
their local nature gives them an advantage over their national rivals in executing these moves
better. UCBs enjoy an undeniable edge in the area of relationship banking.
Title: AN EMPIRICAL STUDY ON FINANCIAL PERFORMANCE OF ANANTAPUR

URBAN CO-OPERATIVE BANK
Dr. Padmaja, B., Dr. BhanuKiran, C. and Dr. Rama Prasada Rao, C. H. (2013) analyzed financial
performance of Anantapur Co-operative bank. The analyzed data reveals that there was
significant growth in the deposits mobilization, loans and advances, working capital, reserves
and owned funds. There is no significant growth in membership but there was significant growth
in share capital per member with CGR of 9.43.There was significant increase in the total cash
with the bank which is growing at CGR of 12.44.There was no significant growth in CDR.
Therefore the performance of AUCB was satisfactory.
Title: A STUDY ON URBAN COOPERATIVE BANKS TOWARDS ECONOMIC

PROGRESS THROUGH FINANCIAL INCLUSION
Prasanna Prakash (2016) conducted a study on financial inclusion of urban co-operative banks.
The study tries to understand the significance of UCBs towards economic development. Since
inception, the urban cooperative Banks have been playing a major role in the socio Economic
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development of the country by making available institutional credit at reasonable cost

particularly in the urban and semi urban areas. Financial inclusion is the process of ensuring
access to appropriate financial products and services needed by all sections of the society in
general and weaker sections in particular. A financial system which takes care of the needs of the
poor is to be developed on an urgent basis Urban cooperative banks, by their structure and nature
of clientele are well designed to cater to financial inclusion as the basis of cooperative structure
is mutual help and thrift.
1.9LIMITATIONS
The study is confined to only The Bharath co-operative Bank.

The time duration for conducting the study is limited.
The study is limited to only the study of Loans & Advances of some schemes for some
years i.e., from 2012-2015.
Some of the details are not provided by the Bank officials because of their confidentiality.
CHAPTER-2
2.1INDUSTRY PROFILE
MEANING OF BANK
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A bank is a financial institution, which deals in money. In other words, A bank is an

establishment which makes to individuals such advances of as may require and safely made and
to which individuals entrust money when not required. It accepts deposits from the public and
creates credit facilities with a view to lend or invest.
DEFINITION OF BANK
The term bank is derived from the Latin word BANCUS, Italian word BANCO and
the French word BANQUE Which means a BENCH in English.
HISTORY OF BANKING
The bank has got history right from the middle ages. As early as 2000 B.C Europeans
[Babylonians] were the earlier people who have developed a systemized banking system. The
temples of Babylon were used as banks and as such the spread of irreligious act soon destroyed
money and valuables in temples and the priest were no longer acting as financial agents.
However the open of civilization, growing necessities forced the issue in the middle of 12 th
century and banks collapse of public confidence. Whenever the priest on solidarity was
threatened the spread of banking was affected entirely. However, after the revives of civilization
and with the development of social and economic institutions, money transitions were also
revived.
Banking in one form or the other, was in existence even in ancient times. The writings of
Manu and Kautilya contain references to banking.
However, modern banking is of recent origin. It came into existence only after the
industrial revolution. The industrial revolution led to the growth of industry of industry and
commerce. In order to meet the rapid growth of financial requirement of industry and commerce,
joint stock banks came into existence. So, joint stock banks or modern banks are of recent
development.
The origin of modern banking may be traced to money dealers in Florence who received
money in the form of deposits lend it to the business people. As the time, Florence was the centre
of money market in Europe. In England, money changing becomes an important function of
bankers during the reign of Edward III.
The bank of England started its business in 1984 with a view of finance the government to
carry on its work with France. The growth of banking in England in 19 th century paved the way
for the establishment of systemized banking system in the world.
INDIAN BANKING INDUSTRY

The Indian Banking Industry, which is governed by the banking regulations act of India,
1949 defines the term Banking Company as any company which transacts the business of
banking in India. Indian Banking Industry can be broadly classified into two major categories-
schedule bank and non-schedule bank. Schedule bank comprises of commercial banks and co-
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operative banks. In terms of ownership, commercial banks can be further classified into
nationalized banks, the state bank group, regional rural banks and private sector banks.
The financial reforms resulted in nationalization of 14 major banks in 1969 and resulted in
a swift from the class banking to mass banking. This in turn resulted in a significant growth in
the geographical coverage of banks. Everyone had to earmark a minimum percentage of their
loan portfolio to sectors identified as priority sectors. The manufacturing sector also grew
during the 1970s in protected environment and banking sector was critical sources.
The next wave of reforms saw the nationalization of 6 more commercial bank in 1980.
Since then the number of schedules of commercial banks have increased by four-fold and the
number of banks increased by eight-fold.
DEFINITION OF BANKING BUSINESS

Banking business is not clearly defined anywhere. But Banking regulation act, 1949 lay
down under section 5(b), what banks have to do. According to this section, banks have to
Collect deposits from the public
Lend the money so collected from the public or invest the same in securities or doing
both.
TYPES OF BANKS
The Economic conditions and Financial conditions varies country to country or nation to
nation and therefore rigid classification is not possible. Hence, banks are classified as follows:-
Commercial banks
Investment or industrial banks
Agricultural banks
Exchange banks
Savings banks
Co-operative banks
Central banks
Commercial Banks:
Commercial banks accept deposits from the public and provide credit facilities to
commerce and industry. Since most of the deposits are repayable on demand or after a fixed
period, they do not grant long-term loans. They confine themselves to short and medium-term
loans. In addition to these primary functions of accepting deposits and lending funds, modern
banks perform a number of agency and general utility functions. The real significance of the
commercial banks lies in the fact that they are not merely dealers in money but they are also
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Manufacturers of money as they lend many times larger than the deposits. A large part of the
money in circulation is in the form of bank money. This helps the economic activities of a
country.
Investment/Industrial Banks:
Industrial banks are those banks which provide long-term finance to industries. They are also
called Investment banks, as they invest their funds in subscribing to shares and debentures of
industrial concerns. Industrial banks are not found in all the countries of the world. In India there
are no industrial banks. Instead, special industrial finance corporations have been set up for
providing long term finance to industries.
Agricultural Banks:
Agricultural banks are banks which provide finance to agriculture. These banks are
organized on co-operative basis. They extend loans to members at a relatively reasonable rate of
interest. Agricultural banks in India are of two types
a) Agricultural co-operative societies
b) Land development banks
Agricultural co-operative societies provide short-term loans to the agriculturists for the
purchase of fertilizers, pesticides, seeds, payment of wages etc.
Land development banks provide long-term finance to farmers for the purchase of
agricultural equipments, tractors, construction of wells, making permanent improvement of
lands, etc.
Exchange Banks:
Exchange banks specialize in financing the foreign trade. They supply the necessary
foreign exchange for the importers and the exporters. In many countries, commercial banks
themselves undertake foreign exchange business.
Savings Banks:
Savings banks are specialized financial institutions which induce people to save
something out of their income. They pool the small savings of poor and middle income sections
of the societies. In India, the savings banks business is performed by commercial banks and post
offices.
Co-operative Banks:
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According to HENNERY WOLLS Co-operative banking is an agency with in a position

to deal with a small means on its own terms, accepting the security he has and without drawing
the protection of rich.
Devine defines A mutual society formed, composed and governed by working people
themselves for encouraging regular saving and generation of miniature loans easy terms of
interest and repayment .
Co-operative banks are prompted to meet the banking requirement of customers not only
in urban areas, but also in rural areas. They provide short and medium term loans. They are more
service oriented than profit. They are also supported by Reserve bank of India. Anywhere around
50% to 60% of the working capital of the co-operative banks is contributed by the reserve bank
Features of co-operative banks

They are organized and managed on the principle of co-operation and mutual help. They
function with the rule one member one vote.
They perform all the main banking function of deposit mobilization, supply of credit and
provision remittance facilities.
They are perhaps the first government supported agency in India.
A co-operative bank belongs to the money market as well as capital market.
Types of co-operative banks
1. Primary credit society:

A co-operative credit society can be started with 10 or more persons. Normally belonging
to a village, the value of each share is generally nominal, so as to enable even the poorest to
become a member. Loans are given for short periods, normally for one harvest season, for
carrying on agricultural operations.
2. State co-operative bank:

A state co-operative bank is at the top of co-operative structure. It is also known as apex
bank. Its members are co-operative societies. It rediscounts the bill of district central co-
operative banks. The state co-operative banks apart from functioning as a commercial bank,
accepts deposits, giving loans and advance on the securities, fixed receipts etc.
3. Central co-operative bank:
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These are federations of primary credit societies in a district. 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
the societies.
Urban co-operative bank:
The term urban co-operative banks (UCBs), though not formally defined, refer to the
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. These banks were traditionally
centered on communities, localities, work place, groups. It provides loans only to its members on
the security of life insurance policies, fixed deposit receipts on personal guarantee and bank
accept savings, fixed deposits and current deposits.
Central Banks:
Central bank is a special institution which regulates the entire banking structure and
monetary stability. It regulates the note issue. It functions in close co-operation with the
government. It maintains internal and external values of currency. In short, central bank is the
apex bank of the country. The monetary policy of a country is formatted and enforced by the
central bank. These banks are responsible for the stability in the country. Every country has a
central bank. It is called as reserve bank of India in India and Bank of England in Great Britain.
When the reserve bank of India was established it took over the functions of currency
from the imperial bank of India. The reserve bank was nationalized in the year 1948. The reserve
bank of India has been given a power to inspect the commercial banks under section-35 of the
Banking regulation act.
The reserve bank of India, which brings entire banking unified, control and regulated. In
fact, the central bank is the main source of an efficient banking system in the country.
2.2PROFILE OF THE BANK
BRIEF HISTORY
The Bharat co-operative bank was started on 21.08.1974 by SHAKARA RATHNA B.L
LAKKEGOWDA who was the founder of this bank.
On 03.01.1975 this bank got the permission by Reserve Bank of India (RBI) and started its
transaction and proceedings on 27.03.1975.
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This bank served for 41years and is stepping to towards its 42th year.
This bank was graded A by RBI for providing quality services and facilities to its member.
The Bharat Co-operative Bank aims at becoming scheduled bank in future.
In the year 2015-16 it earned net profit 142.43 lakhs
SALIENT FEACTURE OF THE BHARAT CO-OPERATIVE BANK
1. Most convenient bank timings (split hours during morning $ evening)

2. Fully computerized services in all branches.
3. Safe deposit locker facility available.
4. Deposit up to 100000\- covered under DICGC.
5. Higher rate of interest of 11% on term deposit for senior citizen,
6. Immovable property loan for construction, purchase of property, purchase of site\house\flat,
marriage, repayments of debt, higher education and business.
7. Vehicle lone, gold lone, government security loan, 75% value.
8. Direct clearing facility.
2.3VISION, MISSION AND QUALITY POLICY
Accepting deposits for the purposes of promoting saving habits in the minds of the public
and members.
Providing various types of loan facilities to members and associates members.
Quality policy: to render good customer service.
VISION
To mobilize deposits of Rs.1000 crores, to raise advances portfolio in the next 5 years
and to increase the network of banking to 25 branches from the present 7 branches
MISSION
To meet the growing aspiration of the customers of the bank in the changing
environment.
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To promote the effectiveness of credit and to reduce the risk in granting a credit through
careful and continuous supervision.
To bring total customer satisfaction by providing quality service.
To meet the economic and career aspirations of the employees of the bank.
To promote socio-economic development and employment as national and social
objective.
2.4NATURE OF BUSINESS
The operation of the bank is throughout Bangalore city. They offer all types of banking
services to the customers like deposits, loans, demand draft (DD) pay order, bank guarantees,
cheque collection facility, insurance products, etc.
OTHER SERVIES:
A. (RTGS System for instant transfer of funds:
Real Time Gross Settlement (RTGS) is a technology based initiative for improvement of
payment & Settlement System linked to the funds management. RTGS is a gross settlement of
funds transfer instructions take place continuously i.e. in real time and transfer are settled
individually against the clearing system. RTGS settles payments on a transaction basis instead of
on net settlement basis adopted presently at clearing housing. The funds transfer through RTGS
is instant, final and irrevocable.
B .Electronic fund transfer (EFT) SYSTEM:
The EFT system works on the principle of NEXT DAY AVAILABILITY OF FUNDS i.e. the
funds credited to his account on the very next day, within 24 hours. This is a big boon customer
service since under the paper based cheque payment system, a customer depositing on
outstation cheque for collecting receives credit to his account after 1-2 weeks time, depending
upon the destination.
C .National Electronic Fund Transfer (NEFT) System:
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National Electronic Funds Transfer is a nationwide transfer of funds from bank branch to any
other banks branch. The beneficiary gets the credit on the same day or the next day depending on
the time of settlement
2.5AREA OF OPERATION
The Bharath co-operative bank has well established branches in various major areas in
Bangalore. This is done to establish a well networked customer relation. The banks head office
is located in Jayanagar. Bank has 7 branches. Their operation takes place in
Jayanagar H.O
Mathikere
Vijayanagar
Indiranagar
Kengeri
Yelahanka
B.E.S college Jayanagar
The Bharath co-operative Bank H.O
THE BHARAT CO-OPERATIVE BANK BRANCHES DETAILS
SR. NAME OF NO. and date DATE OF NAME OF Name of Date of

NO BRANCH of licence OPENIN locality area city/town computerize
. G d
1. ADMISTRARIV ACD MY 27.03.197 Jayanagar Bangalore 1.07.1994
E OFFICE & 50P 5 -11
MAIN BRANCH 03.01.1975
2. Mathikere branch UBD-BL- 27.11.198 Mathikere Bangalore 27.11.2003
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1987 7 -54
3. Vijayanagar UBD-BG- 14.06.199 Vijayanagar Bangalore 05.01.2005
branch BL 6243 6 40
Dt.5.06 1996
4. Indiranagar UBD-BG- 13.03.199 Indiranagar Bangalore 07.06.2005
branch BL- 1452 7 -38
Dt.25.11.199
6
5 Kengeri branch UBD-BG- 14.05.199 Kengeri Bangalore 21.10.2005
BL-196 7 - 60
Dt.29.08.199
7
6. Yelahanka UBD-BG- 31.07.199 Yelahanka Bangalore 25.10.2005

branch BL- 3151 8 -64
Dt.09.02.199
8
7. B.E.S College UBD 03.04.200 Jayanagar Bangalore 08.10.2005
branch (BL)3358/07 9 -11
02./- 09
2.6OWNERSHIP
The bank is completely controlled by the founder, president, vice president and the
Directors. Only the RBI can interfere in the rules and regulations of the bank. The bank consists
of a president, a vice president and 13directors.
M. VEERAPPA PRESIDENT
DR. JAGATH MC VICE PRESIDENT
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NAME OF DIRECTORS
GANGADHAR A GOWDA K.L

PILLABYRAPPA A
NARASIMHA MURTHY P
JAYAPRAKASH H.J.M
NANJUNDE GOWDA K.S
LOKESH B.N
RAJASHEKAR A REDDY M
LAKSHMIDEVAMMA K.L
SREENIVASI AH.V
RAMAKRISHN M
GANGADHAR V.L
SUDIAKAR K.S
CHANDRASHEKAR.S
2.7COMPETITORS INFORMATION:
For any organization there are many numbers of competitors who themselves emerge with
innovative products and service to compete with other industries. Likewise Bharath co-operative
bank is also having its competitors. The bank is facing stiff completion from nationalized and
private banks .the other co-operative banks are
The National co-operative bank Ltd: was founded in the year 1975 by late Sri T
Rhamanna one of the prominent political figure and late Sri Y V Keshava Murthy veteran
co-operator.the bank is one of the top 50 co-operative bank in India. It has 13 branches in
Karnataka. Its net profit for 2015 is 770 lakhs.
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Sir M Visveshwarayya co-operative bank: Established in the year 1979.has a

operation over 11 branches in bengaluru. Has a net profit of 12.5 crores in the year
2015.Its share capital is nearly 32 crores.
THE MALLESWARAM CO- OPERATIVE BANK LTD: headed by Late Sri V

Aiyaswamy Iyer, on 04-07 -1920 conducted the first Board of Directors meeting which
dawned a new movement in co- operative sector. the bank serves with a 6 branch in
bengaluru and the net profit for 2015 is 2.18 crores
The Karnataka State co-operative Apex Bank Ltd: The Bank was registered on
10th November 1915 under the name and style of The Mysore Provincial Cooperative
Bank Limited, under the Mysore Co-operative Societies Act of 1905. The bank has 42
branches across Karnataka and profit of 30 crores in the year2015.
The Bangalore City Co-operative Bank Limited: was founded by Sri. K.

Ramaswamaiah and other Co-operators during the beginning of the Co-operative
movement in our country, Initially the bank started as a Credit co-operative Society in
the year 1905 and later converted as Urban Co-operative Bank on 06-04-1907.Today
the total business. Of the bank has crossed Rs. 1300.00 crores and now it is placed as
Top Urban Co-operative bank of the State of Karnataka.
2.8 SWOT ANALYSIS
The SWOT analysis provides information that is helpful in matching the firms
resources and capabilities to the competitive environment in which it operate. As such, it is
instrument in strategy formulation and selection.
THE SWOT analysis of Bharath co-operative bank is as follows:-
STRENGTHS
The Bharath co-operative bank Ltd was established in 1975, 42years of good customer
service, hence a strong customer base in Bangalore.
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The Bharath co-operative bank Ltd is based on strong co-operative principal and efficient
business policy
The customer services window in a day is split into two (2) sessions i.e. morning and
evening session.
Adapted the latest technology in serving the customer, hence providing better customer
services.
Strong work-force towards recovery of the overdue loan accounts.
Day to day use of information system accessing NPA.
The bank is financially strong.
WEAKNESS:
Large amount of NPAs under doubtful assets which are very chronic.
Lack of managerial and function skill in the manpower.
OPPORTUNITIES:
With RBI deregularizing the rate of interest both on loans and deposit. The bank
is in a process of tapping new customer base in both loans and deposits by
offering some competitive interest rate to its customer
Opening of new branches, there by covering more geographical area.
Financing more into the housing sector.
Efficient communications with customer will lead the organization towards
success.
Bank involves in creating public relation that increases the profitability of the
bank.
THREATS:
In the present competitive world, this bank is poised with stiff competition not
only from co-operative sectors but also from other financial institutions that is
stronger than it.
Banks like other industry are exposed to credit risk and operational risk.
Government policies may go strict more it makes the company follow the rules
which ultimately affect the company reserves.
2.9ACHIEVEMENTS AND AWARDS:
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Deposit crossed 150 corers in the year 2011.

Net profit of the bank as on 31/3/2011 Rs. 2.095 corers.
A audit classification continuously since 1981-82.
Classification as A category bank by the commissioner of co-operative banks.
RBI inspection guide.
Major improvement have been carried on the batch/online performance of the
core banking software resulting in improved availability of the system to the
users.
Introduction of protected home loans.
2.10 FUTURE GROWTH AND PROSPECTS:
To achieve 21% year to year growth in business.

Extension of area of operation of the bank to entire Karnataka state.
To reach 100-150 branch network by 2025.
To increase credit off take under retail lending scheme, priority sector particularly
agriculture credit etc will receive greater focus especially in potential regions.
To set-up online trading portal to provide stock trading facility to its customers.
To increase the number of ATMs to 100 by 2025.
To encourage usage of internet banking facility by the customer to optimize the
benefits of core banking solution.
To launch mobile banking, to offer value added services like E-Ticketing, utility
payment, tele-banking services.
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2.11 FINANCIAL STATEMENT
BALANCE SHEET AS ON 31-03-2016
Liabilities Amount Assets Amount

Share capital 53205225 Cash and balance with 67998658.04
RBI/APEX
Reserves and surplus 27270801.87 Balance with other Bank 72735326.78
Profit and loss a/c 14243376.36 Investments 1427710558
Deposits 3312373481.70 Loans and Advances 2089204244.41
Interest payable on 22466822 Premises 12127220

deposits
suspense account 14314315 Furniture and Fixture 13924646
Other liabilities 12482163.80 Other assets 18092748.50
Overdue intrest payable 27793085 Overdue intrest payable on 27793085

on NPAs A/C NPAs A/C
3729586486.73 3729586486.73
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PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDING31/3/ 2016

Expenditure Amount Income Amount
Intrest on deposits 254648328 Intrest on Loans and 272691962.11

advances
Management 90378978.05 Interest on investments 97125481.78
expenses
Income tax 8380561.43 Bank charges 1553392.71
Depreciation 5126529 Miscellaneous receipts 797429.66
Provisions 2100286 Penal intrest 547301

Amortization 1577464 Share and Admin.fees 823596
charges on
investment
Net profit 14243376.36 Locker rent 1470926

Commission 557130
Current A/C minimum 17572.04
balance charges
Current A/C folio charges 58432.54

Execution charges 560280
recovered
Commission from general 249889
insurance company
Income tax refund 2014-15 2130
Total 376455522.84 Total 376455522.84
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CHAPTER-3
THEORETICAL BACKGROUND
INTRODUCTION TO LOANS AND ADVANCES
In order to do banking transactions, it should involve with Lending of Loans & Advances and
accepting deposits. So lending of loans constitutes the main business of every Banks. The
major portion of the funds of Banks is employed by way of advances, as advances form the
chief source of profits for banks.
Loan is a provision made by Bank to its customers for their requirements and intern Bank
gets profits in terms of interest.
A loan is generally sanctioned for a period from one year to ten-twelve years.
Accordingly, it has been classified as: -
Short-term loans
Medium-term loans
Long-term loans
Short term loan will be for one year and medium-term loan will be from one year to six
years and when advance beyond six or seven years it may be long-term loan or simply called
Term-Loan.
A loan is granted either against collateral securities or against the personal security of the
borrower. In the case of a loan interest is charged on the whole amount of the loan sanctioned
irrespective of the amount actually withdrawn by the borrower at quarterly or half year intervals.
But the rate of interest charged on a loan is slightly lower that that charged on the overdraft and a
cash credit. Generally a Banker prefers to make an advance in the form of a loan for two
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reasons. First he can collect interest on the loan are generally done a lump sum. But the
borrower doesnt prefer this type of advance as he is required to pay interest on the full amount
of the loan is sanctioned to him irrespective of the amount actually withdrawn by him.
Loans, not only brings income to the institution but also create deposits. By the way
when Bank advances or loan made by the bank to the businessmen, creates a deposit in the name
of the borrower, he is permitted to draw on this deposit to pay off his creditors. In the same way,
when a bank makes short period loans to speculators and brokers in the money market it credits
the loan amount to the amounts of speculators. They could use the deposits to pay off their
creditors.
As Lending of funds is the main function of every Bank, it lend funds to the public by
way of
Loans
Overdrafts
Cash Credits
Discounting of Bills
LOANS:
A Loan is a financial arrangement under which an advance is granted by a bank to borrower

on a separate account called the Loan Account. When a loan is sanctioned to the borrower
the entire amount of loan is debited to the loan account of the borrower and is paid to the
borrower at once in a lump sum whether in cash or by transfer to the credit of his current
account, if any. Just as the disbursement of the loan is made in one lump sum or repayment of
loan in permitted in installments also
OVERDRAFT:
An Overdraft is a financial arrangement under which the bank permits a current account
holder overdrew his account, i.e., is to draw more than the amount standing to this credit up
to an agreed limit. In case of Overdraft interest is charges interest only on the amount
actually overdrawn by a customer he is required to keep at the disposal of the borrower the
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full amount of the overdraft sectioned. Therefore, to protect the interest of the banker
generally there is a provision for charging commitment charges on the utilized portion of the
credit limit.
CASH CREDIT:
A Cash Credit is a financial arrangement under which a borrower is allowed an advance

under which a borrower is allowed an advance limit. As it is a separate account by itself it does
not require the existence or opening of a current account in the case of a credit the borrower need
not withdrew the whole amount at once in one lump sum. He can withdraw the amount in
installment as and when he needs. Further he can put back into account any surplus amount,
which he has in his hands.
DISCOUNTING OF BILLS OF EXCHANGE:
Discounting of bill of exchange is an arrangement under which a bank takes a bill of

exchange maturing within a short period of 60 days or 90 days from an approved customer and
pays him or credits his customer account immediately the present value of the bill. Then on the
due date of the Bank receives the face value of the bill from the acceptor of the bill.
In case the acceptor dishonors the bill the bank recovers the amount from the customer
who has discounted the bill. This type of accommodation is generally granted up to an agreed
limit. The bill discounted may be a documentary bill or a clean bill.
FUNDS FOR LENDING

A study of Balance Sheet reveals that the main sources are available for lending & for
investment is:
Paid up Capital
Reserves
Deposits and other accounts
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Borrowings
Undistributed Profit
Participation Certificates
Refinance loan from the Industrial Development Bank, Agricultural Refinance and
Development Corporation etc
PRINCIPLES OF SOUND LENDING
While lending his funds, a banker is required to observe certain principles of sound or good
lending. The main principles followed by Banks while lending to its customers are as
follows:
1. LIQUIDITY:
Liquidity means the ready convertibility of advances into cash to meet the customers
demand across the counter, this does not mean that they should hold all the deposits they receive
in the form of cash, only a portion is held to meet the demand and major portion is lent. While
making such loan, the banker should bear in mind that it is easily convertible into cash without
loss. Hence, he should make loans of short-term nature. The secret of banking consists in
knowing the difference between a mortgage and a bill of exchange advance given by way of
discounting a bill of exchange. This statement implies the need for maintenance of the liquidity
of advances. The banker should ensure that the collateral securities, which he accepts, are
realizable easily without much loss in the event of default of the borrowers in the repayment of
their advances.
2. PROFITABILITY:
Profitability means earning profits on the assets acquired. An asset here refers to the bank
loans and advances, so it should employ its funds profitability to earn sufficient earning to meet
its expenses and to pay dividend shareholders. In the process of making profit banks cannot
employ all the funds in earning assets. They have to keep some funds to meet the liquidity, while
employing the funds the bank should keep in mind the fair and steady returns on the earning
assets.
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3. PURPOSE OR OBJECT:
The purpose for which advances are given ensure the repayment of the advances, if
advances are given by a banker for productive purposes such as industry, agriculture or trade the
fund will come back quickly and without any difficulty and chances of failure are remote.
On the other hand, if advances are given to unproductive purposes like, consumer credit,
speculation etc., the repayment of loan may be delayed and recovery will be slow.
4. SECURITY:
Another guiding factor in bank advances is security when the banker advances without
security he will run the risk of losing the money in case of default or repayment of advances by
the borrowers. Therefore, it is essential that the banker should have substantial security for his
advances. The collateral securities offered by the customer must be acceptable and adequate and
sufficient margin should be kept by the banker as to cover interest and other charges and fall in
the price of securities.
5. SAFETY:
If the bank funds are not safely employed, bank cannot survive, whatever be the advances
made by the banker should come back to the banker within the stipulated time without resorting
to legal action. Hence, advance should be given to people of honesty and sincerity but not the
insincere and dishonest people. Then only the bank funds will be safe.
6. DIVERSIFICATION OR SPREAD:
Another important principle to be followed by the banker is to see that loans are spread to
different categories. This means advances not be concentrated only in some sectors. Hence, a
banker should be able to spread the risks involved in lending and thereby improve the safety of
his advances.
7. PUBLIC POLICY OR NATIONAL INTEREST:
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The banking industry has a significant role to play in the economic development of a
country. Therefore, a banker should identify his lending business with national policies leading
to economic development and growth of a country. This principle is well considered only after
nationalization of major commercial banks.
LENDING POLICY
The principle of loan policy is to arrive at tradeoff between return and risk within the banks
broader framework of the strategy plan of the bank. In fact, loan policy should be such as to
maximize return while minimizing risk. In order to ensure capital growth the bank has to
encourage substantially non-funded business.
A. PORTFOLIO CONSIDERATION:
Aggregate deployment of funds has to be done in such a manner that the sudden
change in environment should not affect the funds adversely. The object of any bank is to
maximize safety of funds and yield there on in the process reach acceptable standard for
deployment of funds keeping the long-range view.
B. MARKETING OF FUNDS:
Any approach to lending has to be looked from the point of view of achieving
desirable ends after deciding on new activities, area and type of borrowers.
C. TERMS AND CONDITIONS:

The terms and conditions should create a sense of confidence between the borrower
and the lender. The terms and conditions have to be acceptable and advantageous, encompassing
the duties of the lender and the obligation of the borrower. Disclosing the financial informations
of borrowers. And information must be distracted towards end use of funds that is utilization of
borrowed funds for the purpose for which it is obtained.
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D. FUND POSITION:
The lending policy of a bank depends on the market conditions, which reflects on the
funds deployment opportunities available to the bank besides lending over a period of time and
deposit mobilization possibilities during that period.
E. USE OF FUNDS BY BORROWERS AND SECURITY AVAILABLE:

Mostly lending is done against the security of some sort in the form of tangible assets
provided by the borrower.
CREDIT CONTROL TECHNIQUES
The term Credit Control does not implies a mere restriction of the volume of quantity of
credit created by Commercial Banks, other financial institutions and business enterprises.
The different instrument, weapons or methods of credit control available to a Central

Bank can be broadly classified into two categories.
I. QUANTITATIVE TECHNIQUE:
Quantitative methods of Credit Control are those, which control only the total quantity,
volume or size of credit in the country. They regulate the volume & the cost of credit without any
reference to the purpose for which it is used. They are called Quantitative Weapons, as they
control only the quantity of credit and not the uses of credit. They are called General methods as
they effect indiscriminately all the sections of the economy. They are indirect in effect.
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The important Quantitative Methods are:
Bank Rate Policy
Open Market Operations
Variable Cash Reserve Ratio (CRR)
Variable of Statutory Liquidity Ratio (SLR)
II.QUALITATIVE TECHNIQUE:
Qualitative or Selective Credit Controls are controls, which control the quality or
the uses of credit. They are called Qualitative Controls as they control the quality
or the uses of credit. They are selective controls as they select only the essential
uses for credit expansion and non-essential uses for credit contraction.
Qualitative Methods of Credit Control are
Regulation of margin requirements
Regulation of Consumers Credit
Control through directives
Rationing of Credit
Moral Suasion
Direct Action
Publicity
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VARIOUS LOANS SCHEMES OF BHARAT CO-OPERATIVE BANK
1. Unsecured / secured loans:
1. Processing charges/bank charges Rs. 250
2. Additional shares @5% of the loan amount.
3. Share fee @8% on the additional shares amount is charged.
4. Section 34 should be furnished
Period of repayment: - maximum 50 months
Rate of interest: - 14% p.a.
Maximum permissible: - Rs.50000/- with one surety $ Rs.100000/-with two sureties.
Documentation:
1) Government/ semi government/ public limited/public undertakings.
2) Rental agreements/ proof of business/ income affidavit/ pension certificate should be

furnished for non-salaried member and latest salary certificate and pay slip for salaried should be
furnished.
3) Passport size photograph of both application and surety should be affixes on the card along
with the application.
4) Copy of address proof of applicant and co-obliging should be furnished and original should be
brought for verification.
5) All columns should be filled up. Dot, strike, into will not be considered as an answer.
Incomplete application will be rejected.
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6) Section 34 should be furnished.
7) Application should have saving bank account in the bank.
8) Period of repayment: - maximum 509 months.
2. Vehicle loan
o Purpose: for purchase of 4- wheeler and 2-wheeler by individuals.

o Documentation:
(a) Pre-sanction (along with vehicle loan application)
Salaried Non - Salaried
1) latest salary certificate and pay slip along 1) Proof of business

earlier 2 months pay slip
2) Performa invoice
2) Address proof.
3) Family expenditure statement (specimen
3) Performa invoice. available in the bank)
4) Family expenditure statement (specimen 4) Certified financial statements for latest 2

available in the bank) years and I.T assessment order for loan above
Rs. 5 lakhs.
5) 2 photos
5) 2 photos
6) Driving licence
6) Driving license
7) Bank pass sheets- last 3 months
7) Bank pass sheets- last 3 months
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(b) After sanction (applicable to salaried non-salaried)
(1) Form no. 20,26,29,30 and 35 (RTO forms)
(2) Section 34
(3) Agreement of hypothecation of vehicle.
(4) Vehicle loan processing charges / bank charges Rs. 500 for two wheelers, Rs1000/- for 3 and
4 wheelers and Rs 1500/- for commercial vehicles.
(5) Additional shares @ 2.5%
(6) Share fee@ 8% on the additional shares amount is charged
(7) Refundable securities deposit Rs 1000/- for two wheelers Rs. 2000/- for 3 and 4 wheelers.
(8) Document to be furnished for refund of security deposit
R.C book original

Comprehensive insurance policy in favour of the bank.
(1) Duplicate Key
(2) Receipt from vehicle dealer.
(a)Period of repayment - Maximum 50 months for 2and3 wheelers and 60 months for wheelers
(b) Rate 10% p.a.
(c) 75% of cost of vehicle is granted subject to maximum of Rs 5 lakhs without I.T assessment
order. Favouring the dealer for the total cost of the vehicle
(d) Vehicle insurance policy to be submitted every year 1 week before expiry of the policy by
debiting the loans a\c.
(e) Vehicle should be produced for inspection once in 6 months.
3. Jewel loans:
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Purpose: jewel loans \over draft for any business\ personal credit requirement.
1) 1% the value of jewel as appraised by the jewel appraiser is collected as bank charges.
2) 0.25% of the sanctioned loan amount is charged as appraisal charges.
3) Scale of finance Rs 800 per gram or 75% of the appraiser value whichever is less.
4) Maximum permissible - Rs 5 lakhs.
Rate of interest - 11% p.a.-up to 2lakhs

-12%p.a.-above 2 lakhs
Period of repayment - unto Rs. 1 lakhs 12 months

Above Rs. 1 lakhs 24 months
4. Immovable property
1)Legal and technical fees Rs. 2000/- services tax as mentioned in 1 general 12 above should
be paid at the time of submission of loan application.
In case legal opinion is not favourable only Rs1000/- is refundable out of Rs. 2000/- no other
charges are refundable.
2) Processing charges/ bank charges---- 1% of the sanctioned loan amount or Rs. 5000
whichever is less.
3) Additional shares @ 2.5% of the sanctioned loan amount should be paid.
4) Share fee@ 8% on the additional share amount is charged.
5) 1.70% subject to a minimum of Rs.225/- per lakhs to be paid towards fire policy with bank
clause on building for 5 years and it should be renewed till closure of loan, if not bank will have
the right to renew the same by debiting of security deposit.
6) In case of IP loan
(a) For purchase of site/ house Rs.10000/- is collected as security deposit
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Document to be furnished for refund of security deposit
Registered sale deed

Registered mortgage deed
E.C in banks favour.
Fire policy bond with bank with in case of purchase of house.
Katha certificate
(b) For house construction loans Rs 5000/- is collected a refunded after building completion
certificate is received from technical appraiser.
(7) Sanction period for IP loan may take about 15 to 20 days if legal opinion is received
favourable without calling for any documents.
(8) Annual inspection of the property by the bank officials will be conducted and the charges will
be debited to the loan account.
(9) Annual tax paid receipt should be submitted.
Period of repayment - maximum 180 months

Rate of interest now existing:
For months: purchase of house/site/construction.
Up to 50 lakhs - 11%
50 to 70 lakhs - 12%
5. Overdraft
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(1) Legal and technical fees Rs.2000/-+ service tax should be paid at the time of submission of
loan application. In case legal opinion is not favourable only Rs1000/- is refundable out of
Rs.2000/- No other charges are refundable.
(2) Processing charges / bank charges----1% of the sanctioned loan amount or Rs 5000
whichever is less.
(3) Additional shares@ 2.5% of the loan amount should be paid.
(4) Share fee @ 8% on the additional share amount is charged.
(5) 1.70% subject to a minimum of Rs 255/- per to be paid towards fire policy on buildings for 5
years and it should be renewed till closure of loan, if not bank will have the right to renew the
same by debiting borrowers account.
(6) Shop insurance policy-fire insurance policy for the stock in trade/ plant and machinery
/vehicles.
Period of repayment - 12 months

Rate of return - 13% p.a.
Maximum permissible - Rs.1 crore
6. Education loan
Purpose: To nature your ambitions and aspirations for higher education needs in India or
abroad.
Eligibility: Any student who is a major representing himself or a minor student
represented by parent or guardian of Indian nationality. Must have secured admission on
the basis of merit to.
Professional / technical other course through entrance test/selection process. Must have
secured admission foreign university institution (for studies abroad).
Security:
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1) Up to Rs.4 lakhs No security

2) Above Rs 4 lakhs and upto Rs. 7.50 Collateral in form of satisfactory third party
lakhs guarantee acceptance to the bank shall be
obtained.
3) Above Rs.7.50 lakhs Collateral security with 25% margin covering
the loan amount and assignment of the student
for payment of loan installments.
Note: In all the above case, parent/ guardian shall join the transaction as co-borrower
Rate of interest:
Loans up to Rs. 5 lacs-10.5%
Loans above Rs, 5 lacs-11.5%
Repayment: Course period plus 1 year or 6 months after getting job, which is earlier.
7. Mortgage Loans (I.P)
Purpose: purchase of house plot approved by housing boards/ development authority of

town/city or metro and other genuine credit requirements.
Eligibility: Bona fide owners of residential/ commercial property.
Quantum:
60 months gross salary (clubbing of income from other sources/ income of close
relatives permitted for computing the quantum of eligible loan amount) or 5 times of
annual agriculture income subject to maximum of Rs. 50 lakhs (Rs.25 lakhs as ODMS or
Rs .50 lakhs as loan)
Loan quantum is to be decided as per repayment capacity.
For non-agriculture/ non- salaried five times of annual income on the basic of ITAO/
average of last 3 years income as per ITAO (for loans up to Rs. 5 lakhs , ITAO will not be
insisted upon.)
Repayment: 7 years
Guarantor: suitable third party guarantee acceptable to the bank
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8. BUSINESS LOAN:
Quantum of loan:
Maximum amount up to 3 crores
Rate of interest:
The rate of interest of business loan is
Loans up toRS.1 crore-13%p.a
Loans above RS.1 crore-14%p.a.
Duration:
The period of loan is 50 months.
Purpose:
Bank provides this loan to its customers for the objective to ease their business
transactions.
Features:
This loan is provided for small businesses.
This loan encourages the self- employment of the people.
9. LOANS ON DEPOSITS:
Quantum of overdraft:
It is purely given on deposit basis; up to 85% loan is eligible.
Rate of interest:
Deposit rate is 13%.
Purpose:
To meet the personal needs of the customers.
To develop a cordial relation between the customer and the bank.
Eligibility:
An account holder should submit the original deposit bond.
He should have a sound record of transaction and maintain the good
balance.
Permission:
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An account holder should approach the manager in respective

department head.
The management will decide whether to allow or not, based on the
record of the holder.
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WORK FLOW MODEL OF ADVANCES IN BCB
Interview with manager
Know your customer
Evaluation of project
Section of loan
Documentation
Transfer to his S/B account
Repayment of interest
This is the work flow model followed by the bank at the time of giving advances to their
customers. This involves the following series of steps.
Interview with manager:
He has to sanction is in his power. He has to concern his higher authority. In any party requiring
funds through bank first has to talk with the respective manager of a branch of his area. One
thing the manager has to see that the amount of loan this stage the process of negotiation rate of
interest between party and banker take place.
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Know your customer:
The important duty of a manager is to know his customer there are many systematically
techniques and process to know the real identification of the customer.
Evaluation of project:
The purpose of loan to be sanctioned should be clearly understood either by evaluating blue print
of his project or balance sheet or performance proof of his existing business. This is mainly done
to make sure that repayment of the amount is ensured and party wont become bankrupt.
Sanctioning:
Sanctioning is not actual giving of loan that is amount to be paid is promised. The party in need
of it is capable of withdrawing the amount not more than the amount sanctioned to him.
Documentation:
The documentation deals with filling of forms that are in contractual form and most of the
documentation process could be seen in all the stages. It also deals with submission of security of
their loan and its formation
Transfer to his account:
The party which is borrowing loan from bank need to have an account in the bank if not the
banker will create an account for this purpose. And most of time the loan amount is transferred to
his account and rarely they give it in their hand, either in the form of DD cheque or cash it
depends upon the banker and the party.
Repayment:
After the purpose of the loan is served, the party is obliged to repay the amount incarnating PLR
and other bank charges or according the agreement.
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THE METHODS FOLLOWED FOR RECOVERY OF LOANS @ BCB
1. Introduction:
The debt collection policy of the bank is built around dignity and respect to customer. Bank
will not follow policies that are unduly coercive in collection of dues. The policy is built on
courtesy, fair treatment and persuasion. The Bank believes in following practices with regard
to collection of dues and repossession of securities and thereby fostering customer
confidence and long term relationship.
Banks Securities Repossession Policy aims at recovery of dues in the event of default and is
not aimed at whimsical deprivation of property. The policy reorganizes fairness and
transparency in repossession, valuation and realization of securities. All the practices adopted
by the bank for follow up and recovery of dues and repossession of securities will be in
consonance with the law. In the case of hypothec after exhausting all possible modes like
personal contacts, reminder over phone etc a notice of minimum 24 hours duration will be
sent about repossession.
2. General Guidelines:
I. The customer would be contacted ordinarily at the place of his/her choice and in
the absence of any specified place, the place of his/her residence and if unviable at
his/ser resident, at the place of business/occupation.
II. Identity and authority of persons authorized to represent bank for follow up and
recovery of dues would be made known to be borrowers at the first instance. The
bank staff or any person authorized to represent the bank in collection of dues or/
and security repossession will identify himself/herself and display the authority
letter issued by the bank upon request.
III. The bank would respect would privacy of its borrowers.
IV. The bank is committed to ensure that all written and verbal communication with its
borrowers will be in simple business language and bank would adopt civil manners
for interaction with borrowers.
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V. Normally the banks representatives will contract the borrower between 7.00 hrs
19.00 hrs, unless the special circumstance of his/her business occupation require
the bank to contact at a different time.
VI. Borrowers request to avoid calls at a particular time at a particular place would be
honored as far as possible. The bank will document the efforts made for the
recovery of dues and the copies of communication sent customer, if any will be
kept on record.
VII. All assessment will be given to resolve disputes or differences regarding dues in a
mutually accepts and in an orderly manner.
VIII. Inappropriate occasions such as bereavement in the family or such other
calamitous occasions will be avoided for making calls/visits to collect dues.
3. Giving notice to borrowers
While written communications, Telephonic reminders or visits by the banks representatives

to the borrowers place or residence will be as loan follow up measures, the bank will not
imitate any legal or other recovery measures including repossession of the security without
giving due notice in writing, bank will follow all such procedures as required under law for
recovery/ repossession of security.
In the case of Hypnotize a written notice will be sent by Registered Post:
AD or courier Post or Certificate of posting giving a minimum of 24 hours notice
4. Repossession of Security
Repossession of security is aimed at recovery of dues and not deprives the borrower of the
property. The recovery process through repossession of security will involve repossession,
valuation of securities and realization of security through appropriate means. All these would
be carried out in a fair and transparent manner. Repossession will be done only after issuing
the notice as detailed above. Due process of law will be formed while taking repossession of
the property. The bank will take all reasonable care for ensuring the safety and securities of
the property after taking custody, in the ordinary coerces of the business.
BNMIT Page 44
5. Valuation and sale of Property
Valuation and scale of property repossession by the bank will be carried out as per law and in
a fair and transparent manner. In case of hypothecate after taking possession if no payment is
forthcoming a scale notice of 7 days duration will be sent with date, venue and time of sale.
The bank will have right to recovery from the balance due if any after sale of property.
Excess amount if any, obtained on sale of property will be returned to the borrower after
meeting all the related expenses provided, if bank is not having any other claims against the
customer.
6. Opportunity for the borrower to take back the security
As indicated earlier in the policy document the bank will resort repossession of security only
for the purpose of realization of its dues as the last resort and not with intension of depriving
the borrowers property. Accordingly the bank will be willing to consider handing over
possession of property to the borrower any time after repossession and before concluding
sale transaction of the property provided the bank dues are cleared in full. If satisfied with the
genuineness of borrowers inability to pay the loan installments as per the schedule with
resulted in the repossession of the security the bank may consider handing over the property
after receiving the installments in arrears. However this would be subject to the bank being
convened of the arrangements made by the borrower to ensure timely repayment of
repayment of remaining installments in future. If the amount/ dues are repaid either as
stipulated by the Bank or to the possession will be returned will be returned to borrower
within seven days after permission from the competent/ sanctioning authority or the court /
DRT concerned in respect of accounts where recovery proceedings are filed and pending.
BNMIT Page 45
In case of default for repayment of loan the following action will be taken.
Default for repayment Short term loans I.P loans
One month ------------- Demand notice
Two months Demand notice Reminder
Three months Reminder Final notice
Four months Final notice To file suits
Five months To file suits repossession/auction etc., repossession/auction etc.,
BNMIT Page 46
CHAPTER -4
ANALYSIS AND INTERPRETATION
Table No.4.1 (a)

% Increase / Decrease of jewel Loan
(Rs. in lakhs)
Jewel loan %of the base Increase/decrease in

Year
amount year2013 %
2013 339.1 100% -
2014 383.7 113% 13%
2015 351.6 104% 04%
2016 315.4 93% -7%
Graph No.4.1 (b)
BNMIT Page 47
Graph showing %of jewel loan for the base year
jewel loan
120%
100%
80% Column1
113% 104%
60% 100% 93%
40%
20%
0%
2013 2014 2015 2016
Analysis and interpretation:
The above table and graph shows the outstanding amount on jewel loan. It is seen that the
amount of jewel loan outstanding in the year2013 is 339.1 lakhs it gone up to 383.7 lakhs in
2014 ,then started declining in the coming years i.e.,351.6 lakhs in 2015and315.4lakhs in
2016.There is a fluctuating trend in jewel loan outstanding.
BNMIT Page 48
Table No. 4.2(b)

% Increase / Decrease of Jewel Loan out of Total Advances
(Rs. In lakhs)
YEA Total Jewel % of Jewel loan to total Increase or decrease
R advance loan advances in %
2013 11,344.8 339.1 2.98% -
2014 15,751.1 383.7 2.43% -0.55%
2015 19,213.7 351.6 1.82% -1.16%
2016 20,892.0 315.4 1.50% -1.48%
Chart no.4.2 (b)
BNMIT Page 49
%of jewel loans out of total loans
%of jewel loan out of total loan

3.00%
2.50%
2.00% Series 1
2.98%
1.50% 2.43%
1.82%
1.00% 1.50%
0.50%
0.00%
2013 2014 2015 2016
Analysis and interpretation: The above table shows there is a decreasing trend in jewel loan
outstanding over total advances sanctioned. It is declining from the year2013 to 2016.from
2.98% (2013) to 1.50% (2016).It is seen only fewer part is invested on Jewel loan.
Table No.4.3 (a)

% Increase / Decrease of over drafts
(Rs. in lakhs)
Overdraft %of the base Increase/decrease in

Year
amount year2013 %
2013 42.53 100% -
2014 56.1 132% 32%
2015 61.3 144% 44%
2016 31.1 74% -26%
Chart No.4.3 (b)
Graph showing %of over drafts for the base year
BNMIT Page 50
over drafts
150%
100%
132% 144%
100%
50% 74%
0%
2013 2014 2015 2016
Above table and graph shows there is an increase trend in overdrafts sanctioned till 2015and then
it declined in 2016. It is observed highest in 2015 i.e., 61.3 lakhs and lowest in 2016 i.e., 31.1
lakhs. In the years 2013 it is 42.53 lakhs outstanding and in the year 2014 56.1 lakhs outstanding.
Table No. 4.4 (a)

% Increase / Decrease of overdrafts out of Total Advances
(Rs. In lakhs)
YEA Total overdraft % of overdrafts to total Increase or decrease
R advance s advances in %
2013 11,344.8 42.53 0.374% -
2014 15,751.1 56.1 0.356% -0.018%
2015 19,213.7 61.3 0.319% -0.055%
2016 20,892.0 31.1 0.148% -0.226%
Chart no.4.4 (b)
BNMIT Page 51
Graph showing %of overdrafts out of total loans
ovedrafts out of total loans

0.40%
0.30%
Column1
0.37% 0.36%
0.20% 0.32%
0.10% 0.15%
0.00%
2013 2014 2015 2016
From the above table and graph it is seen only a small portion of overdrafts are sanctioned out of
total advance. It is recorded highest OD out of total advance in the year 2013 i.e., 0.37%and
lowest in the year 2016 i.e., 0.15%. In the years 2014, 2015 it is 0.36%and0.32% respectively.
Table No.4.5 (a)
% Increase / Decrease of secured loans

(Rs. in lakhs)
Secured loans %of the base Increase/decrease

Year
amount year2013 in%
2013 11.46 100% -
2014 8.18 71% -29%
2015 6.63 58% -42%
BNMIT Page 52
2016 6.89 60% -40%
Chart No.4.5 (b)
Graph showing %of secured loans for the base year
secured loans
100%
80%
60% 100% 71% 58% 60%

40%
20%
0%
2013 2014 2015 2016
Analysis and interference:
From the above table and at chart it is seen that the secured loans outstanding is highest in the
year 2013 i.e. 11.46 lakhs and lowest in the year 2015 i.e.6.63 lakhs. In the years 2014 and2016
it is noted those 8.18 lakhs and 6.89 lakhs respectively.
Table No. 4.6 (a)

% Increase / Decrease of secured loans out of Total Advances
(Rs. In lakhs)
BNMIT Page 53
% of secured
YEA Total Secured Increase or
loans to total
R advance loans decrease in %
advances
2013 11,344.8 11.46 0.1% -
2014 15,751.1 8.18 0.05% -0.05%
2015 19,213.7 6.63 0.03% -0.07%
2016 20,892.0 6.89 0.032% -0.068%
Chart no.4.6 (b)
Graph showing %of secured loan out of total loans
secured loans out of total loans

0.10%
0.08% secured loans out of
0.06% 0.10% total loans
0.04% 0.05%
0.02% 0.03% 0.03%
0.00%
2013 2014 2015 2016
Analysis and interference:
From the above graph and table it is seen that the outstanding of secured loan out of total loans is
lower due to high documentation. It is highest in the year 2013 i.e.0.10% and lowest in the year
2015 i.e.0.03%.in the years 2014 and 2016 it is noted that 0.05% and 0.032% respectively.
BNMIT Page 54
Table No.4.7 (a)
% Increase / Decrease of vehicle loans
(Rs. in lakhs)
vehicle loans %of the base Increase/decrease

Year
amount year2013 in%
2013 262.9 100% -
2014 233.3 89% -11%
2015 168.4 64% -36%
2016 129.7 49% -51%
Chart No.4.7 (b)
Graph showing %of vehicle loans for the base year
vehicle loan
100%
80%
vehicle loan
60% 100% 89% 64% 49%
40%
20%
0%
2013 2014 2015 2016
BNMIT Page 55
From the above table and chart it is seen that there is decline in the vehicle loan. The highest is
recorded in the year 2013 i.e.269.9 lakhs and lowest in the year 2016 i.e.129.7 lakhs. In the year
2014 and2015 it is recorded233.3 lakhs and168.4 lakhs respectively.
Table No. 4.8 (a)

% Increase / Decrease of vehicle loan out of Total Advances
(Rs. In lakhs)
YEA Total vehicle % of vehicle loans to Increase or
R advance loans total advances decrease in %
2013 11,344.8 262.9 2.31% ----
2014 15,751.1 233.3 1.48% -0.83%
2015 19,213.7 168.4 0.87% -1.44%
2016 20,892.0 129.7 0.62% -1.69%
Chart no.4.8 (b)
Graph showing %of vehicle loan out of total loans
vehicle loan out of total loans

2.50%
2.00% 2.31%
vehicle loan out of total
1.50% loans
1.48%
1.00%
0.87%
0.50% 0.62%
0.00%
2013 2014 2015 2016
BNMIT Page 56
From the above table it seen that vehicle loan out of total loans is declining. It is recorded highest
in the year 2013 i.e.2.31% and lowest in the year 2016 i.e.0.62%.in the years 2014 and 2015 it is
recorded 1.48% and 0.87% respectively.
Table No.4.9 (a)
% Increase / Decrease of Unsecured loans
(Rs. in lakhs)
Unsecured %of the base Increase/decrease

Year
loans amount year2013 in%
2013 387.7 100% -
2014 361.9 93% -7%
2015 306.8 79% -21%
2016 285.8 73% -27%
Chart No.4.9 (b)
Graph showing %of unsecured loans for the base year
unsecured loans
100%
80% unsecured loans
60% 100% 93% 79% 73%
40%
20%
0%
2013 2014 2015 2016
BNMIT Page 57
From the above table and graph it is seen that there is a decreasing trend in unsecured loans. In
the year 2013 it is recorded highest i.e.387.7 lakhs and in the year 2016 it is recorded lowest
i.e.285.8 lakhs. In the years 2014 and 2015 it is recorded 361.9 lakhs and306.3 lakhs
respectively.
Table No. 4.10 (a)

% Increase / Decrease of unsecured loan out of Total Advances
(Rs. In lakhs)
% of unsecured Increase or
YEA Total Unsecured
loans to total decrease in
R advance loans
advances %
2013 11,344.8 387.7 2.41% ----
2014 15,751.1 361.9 2.29% -0.12%
2015 19,213.7 306.3 1.59% -0.82%
2016 20,892.0 285.8 1.36% -1.05%
Chart no.4.10 (b)
Graph showing %of unsecured loan out of total loans
unsecured loan out of total loans

3.00%
2.50%
2.00%
1.50%
2.41% 2.29%
1.00%
1.59% 1.36%
0.50%
0.00%
2013 2014 2015 2016
BNMIT Page 58
From the above table and chart it is observed that there is a decreasing trend in unsecured loan
out of total loans. It is recorded highest in the year 2013 i.e.2.41% and lowest in the year 2016
i.e.1.36%.in the years 2014 and 2015 it is recorded 2.29% and 1.59% respectively.
Table No.4.11 (a)
% Increase / Decrease of loans on deposits
(Rs. in lakhs)
Loans on
%of the base Increase/decrease
Year deposit
year2013 in%
amount
2013 137.8 100% -
2014 229.8 166% 66%
2015 280.7 203% 103%
2016 355.3 257% 157%
Chart No.4.11 (b)
Graph showing %of loans on deposit for the base year
loans on deposiots
300%
loans on deposiots
200%
257%
166% 203%
100%
100%
0%
2013 2014 2015 2016
BNMIT Page 59
From the above table and graph it is observed that the loans on deposits are increasing every
year. It is recorded highest in the year 2016 i.e.355.3lakhsand lowest in the year 2013 i.e.137.8
lakhs. In the years 2014 and 2015 it is observed 229.8 lakhs and280.7 lakhs respectively.
Table No. 4.12 (a)

% Increase / Decrease of loans on deposits out of Total Advances
(Rs. In lakhs)
Loans on % of loans on Increase or

YEA Total
deposits deposits to total decrease in
R advance
loans advances %
2013 11,344.8 137.8 1.21% ----
2014 15,751.1 229.8 1.45% 0.24%
2015 19,213.7 280.7 1.46% 0.25%
2016 20,892.0 355.3 1.70% 0.49%
Chart no.4.12 (b)
Graph showing %of loans on deposits out of total loans
loans on deposits out of total loans

2.00%
1.00% 1.45% 1.46% 1.70%

1.21%
0.00%
2013 2014 2015 2016
From the above table and chart is observed that there is slightly increase of loans on deposits out
of total loans and advances. In the year 2016 it is observed highest i.e.1.70% in the year 2013 it
BNMIT Page 60
is observed lowest i.e.1.21%. In the years 2014and 2015 it is observed 1.45% and 1.46 %
respectively.
Table No.4.13 (a)
% Increase / Decrease of Mortgage (I.P) loans
(Rs. in lakhs)
I.P. loan %of the base Increase/decrease

Year
amount year2013 in%
2013 9,807 100% -
2014 14,093.9 143% 43%
2015 17,587.7 179% 79%
2016 19,233.2 196% 96%
Chart No.4.13 (b)
Graph showing %of Mortgage (I.P) loan for the base year
I.P.loan
200%
150% 196%
179%
100% 143%
100%
50%
0%
2013 2014 2015 2016
BNMIT Page 61
From the above table and graph it is observed that increase in intangible property loans. It is
observed highest in the year 2016 i.e.19, 233.2 lakhs and lowest in the year 2013 i.e.9807 lakhs.
In the years 2014 and 2015 it is observed those 14,093.9 lakhs and 17,587.2 lakhs respectively.
Table No. 4.14 (a)

% Increase / Decrease of Mortgage (I.P) loans out of Total Advances
(Rs. In lakhs)
YEA Total I.P. % of I.P. loans to Increase or
2013 11,344.8 9,807 86% ----
14.,093.
2014 15,751.1 89% 3%
9
2015 19,213.7 17,587.7 91% 5%
2016 20,892.0 19,233.2 92% 6%
Chart no.4.14 (b)
Graph showing %of Mortgage (I.P) loans out of total loans
I.P loan out of total loan
92%
90%
88% 91% 92%
89%
86% 86%
84%
82%
2013 2014 2015 2016
BNMIT Page 62
From the above table and chart it is observed that major portion of total loans is invested on
intangible property loan. The highest I.P loan outstanding is in the year 2016 i.e.92% and lowest
in the year 2013 i.e.86%. In the years 2014 and 2015 it is 89% and 91% respectively.
Table No.4.15 (a)
% Increase / Decrease of staff loans
(Rs. in lakhs)
Staff loan %of the base Increase/decrease

Year
amount year2013 in%
2013 356.1 100% -
2014 383.9 107% 7%
2015 450.8 126% 26%
2016 534.3 150% 50%
Chart No.4.15 (b)
Graph showing %of staff loan for the base year
staff loan
150%
100%
50%
0%
100%
2013 107%
2014 126%
2015 150%
2016
BNMIT Page 63
From the above table and graph it is observed that loans to staff are increasing every year. In the
year 2016 it is observed highest i.e.534.3 lakhs and in the year 2013 it is observed lowest
i.e.356.1 lakhs .in the years 2014 and 2015 it is observed that 383.9 and 450.8 lakhs respectively.
Table No. 4.16 (a)

% Increase / Decrease of staff loans out of Total Advances
(Rs. In lakhs)
YEA Total Staff % of staff loans to Increase or
2013 11,344.8 356.1 3.13% ----
2014 15,751.1 383.9 2.43% -0.7%
2015 19,213.7 450.8 2.34% -0.79%
2016 20,892.0 534.3 2.55% -0.58%
Chart no.4.16 (b)
Graph showing %of staff loans out of total loans
staff loan out of total loans

4.00%
3.00%
2.00%
3.13%
2.43% 2.34% 2.55%
1.00%
0.00%
2013 2014 2015 2016
BNMIT Page 64
From the above table and graph we can observe that staff loan outstanding out of total loan
outstanding is decreasing gradually. It was highest in the year 2013 i.e.3.13% and lowest in the
year 2.34%. In the years 2014 and 2016 it is observed 2.43% and 2.55% respectively.
CHAPTER-5
Findings
The important findings of the study are as follows:

Allotting of loans has been increased in 2015-2016 when compared to the financial year
2014-2015, 2013-2014, and 2012-2013.
Interest rates on short term loans specifically overdraft on current account is
comparatively higher than the long term loans like housing loans.
During the project process, I found that bank officials and staffs were co-operative while
dealing with customers.
With the help of computerization, it has enabled the banks staffs to perform their task
efficiently.
Staff work cabins are not separated in a systematic and modern manner to enhance the
promptness and concentration of performing tasks.
The bank branches are limited to the Bangalore city only.
Findings of the study, it is noticed that interest rates of different types of loan will be
fluctuating.
Small enterprises are providing loans are under business loan category. This is a sign of
competitive threat under this category.
Bank focuses mostly on the customers of middle class and lower middle class group of
people.
Bank does not have a website and online banking facility.
The Net profit in the bank is decreasing every year.
The mortgage loan (I.P. loan) is outstanding is more out of total loans outstanding.
BNMIT Page 65
Suggestions
The suggestions for The Bharath co-operative Bank based on the analysis done to improve further
are as follows:
The bank should try to increase their deposits by opening branches in business areas, improve
services to their clients, introduce different types of deposit schemes and offer competitive rates
of interest.
The BCB must try to increase the ATM facility throughout the city so the services rendered to the
customers will have a better impact on the bank.
The bank must maintain adequate liquid resources, margin, properly scrutiny of loans and should
try to qualitative improvement to the staff.
In this modern world, in order to increase the speed and quality of providence of service to the
target customers, they should build up their own website and the facility of internet banking.
Accountability and transparency need to be brought in the implantation of the schemes.
A favourable marketing campaign is essential for the bank to increase the number of its members.
It is advisable for refreshing and improving the staffs by offering them short term courses in order
to build a cohesive work force.
The profit position will be improved by reducing the rate of interest of loans.
The bank should ensure the customers satisfaction by providing them convenient
facilities and offering them new products and services.
The Bank should try to increase its non-funded business by improving on its
Commission income, Brokerage income.
CONCLUSION
BNMIT Page 66
The study on the schemes of loans and advances conducted at Bharat Co-operative Bank
at Jayanagar was successful. The banks overall performance regarding personal loan is gradually
increasing. Bharat Co-operative Bank is one of the leading Co-operative banks in the Bangalore
urban co-operative banks.
Now a days people are satisfied with the bank. They are depositing more money and also saving
money with the bank. The Bharat Co-operative bank through its wide network has maintained
preferred financer status in the market. The Bharat Co-operative bank gives the promise to
customer with their hard earned money. The bank has a variety of schemes under personal fianc
to satisfy varying needs of the public it, also offers various new schemes with attractive interest
rates to the customers. The bank has played a significant role to the development of the country
(India) and the world in large. Therefore the entire staff member are actively supporting and
coordinating the activities of the bank.
Bibliography
Articles:
BNMIT Page 67
http://raijmr.com/wp-content/uploads/2013/11/6_26-30-Soyeliya-Usha-L..pdf
http://www.abhinavjournal.com/images/Commerce_&_Management/Oct13/2.pdf
http://www.ijsrp.org/research-paper-1012/ijsrp-p1039.pdf
http://www.aarmssjournals.com/wp-content/uploads/2016/01/31-34_ijmssr_vol1_2_dec15.pdf
http://indianresearchjournals.com/pdf/IJSSIR/2012/October/11.pdf
http://www.iosrjournals.org/iosr-jbm/papers/vol2-issue5/A0250105.pdf?id=5501
http://journal.unom.ac.in/uploads/fulljournals/Article%2002_20150817051812_8418.pdf
http://aygrt.isrj.org/UploadedData/6862.pdf
http://www.journalcra.com/sites/default/files/Download%203490.pdf
http://worldwidejournals.com/paripex/file.php?val=August_2013_1376660835_f9d4f_14.pdf
http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.410.1252&rep=rep1&type=pdf
Sai Om Journal of Commerce & Management
Volume 1, Issue2 (February, 2014) Online ISSN-2347-7571
BOOKS:
Cost and Management Accounting- Jain & Narang
Banking Theory and Practice- Reddy and Appanniah
Cost and Management Accounting- M.N. Arora
Banking Theory and Practice- Dr. P.K. Srivastava
Websites visited:
www.google.com
www.yahoo.com
www.scribd.com
www.rbi.org.in
BNMIT Page 68
APPENDICES AND ANNEXURE

BALANCE SHEET OF BHARAT CO-OPERATIVE BANK
ASSETS AND PROPERTY
Gender ledger 2012-13 2013-14 2014-15 2015-16

1.Cash in 17581413 66264281.35 98184134.11 67998658.04
hand
2. Balance with 55016426.76 13211485.31 31681113.88 72735326.78
other bank
3. Investment in 706355036 648076322 657008858 745052394
Govt. Security
4. F.D & other 273600881 569999119 482600881 682658164
Investment
5. Loans and 1134486912.34 1575116460 1921372409.85 2089204244.41
Advance
6. Building/site a/c 14804755 13816735 12927517 12127220
7. Furniture 6858585 6354743 5832167 13924646

& Fixtures
8. Other Assets 11473703.63 3430105.50 13343981.50 18092748.50

9. Other charges on 881923 00 00 00
Loan
10. Interest 779065 293859 276060 00
receivable
11. Interest 16501835 14749771 17145702 27793085
receivable on NPA
loan a/c
Total 2238340536.44 2476314644.61 3240372824.34 3729586486.73
Capital and Liability
BNMIT Page 69
Gender ledger 2012-13 2013-14 2014-15 2015-16

1.Share capital 51331850 47778950 45032425 53205225
2. Reserve and 255797213.23 2634544012.15 265550585.33 272708017.87
other reserves
3. Deposits 1846388638.93 2072363148.05 2859121327.97 3312373481.70
4.Interest 15160669.13 18249641.13 22428336 22466822
payable
5.Other 269261986.3 41579755.1 19028345.5 26796478.8
liabilities
6. Interest 779065 293859 276060 00
Receivable
7. Interest 16501835 14749771 17145702 27793085
Receivable on
NPA loan A/Cs
8.Profit- 20095555.92 17845508.18 11790042.54 14243376.36
current year
Total 2238340536.4 2476314644.61 3240372824.34 3729586486.7
4 3
BNMIT Page 70
Details of loans & advances:
Loans and advances 2012-13 2013-14 2014-15 2015-16
Jewel loan 33911562 38372415 35164252 31544910
Overdrafts 4253205.35 5617942.85 6132670.85 3117318.41
Secured loans 1146957 818360 663306 689033
Vehicle loans 26298622 23338282 16848352 12972536
Unsecured loans 38773745 36199776 30636480 28587738
Loan on FD 7663413 16815544 18116180 24802908
Loan on UBD 5920578 5822737 9432299 9798700
Loan on CD 201172 350282 524561 933798
I.P. loans 980700741 1409390436 1758773386 1923320149
Staff loans 35616917 38390686 45080923 53437154
Total 1134486912.3 1575116460.8 1921372409.8 2089204244.4

5 5 5 1
BNMIT Page 71

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Chapter-1

1.2TOPIC OF THE STUDY

1.3Need for the study

1.5OBJECTIVES OF THE STUDY

1.6SCOPE OF THE STUDY

PRIMARY SOURCE: Direct Interview

Title: A STUDY ON LOAN MANAGEMENT WITH SPECIAL REFERENCE TO THE

Title: A STUDY ON CO-OPREATIVE BANKS IN INDIA.

Title: AN ANALYTICAL STUDY ON FINANCIAL PERFORMANCE OF BIJAPUR

Title: BENEFITS AND CHALLENGES FACED BY THE CO-OPERATIVE BANKS

Title: A COMPARATIVE ANALYSIS OF LOANS AND ADVANCES IN SELECTED

Title: A STUDY ON CO-OPERATIVE BANKS IN INDIA WITH SPECIAL

Title: A STUDY ON FINANCIAL PERFORMANCE OF LOANS AND ADVANCES OF

Title: SOME ISSUES IN CUSTOMERS SERVICES OF URBAN COOPERATIVE

Title: GROWTH OF LOANS AND ADVANCES AND RECOVERY PERFORMANCE OF

Title: EMERGING ISSUES IN URBAN CO-OPERATIVE BANKS

Title: A STUDY ON LENDING PRACTICES OF URBAN CO-OPERATIVE BANKS IN

Title: THE EMERGING URBAN CO-OPERATIVE BANKS (UCBS) IN INDIA:

Title: URBAN CO-OPERATIVE BANKS IN INDIA AN OVERVIEW

Title: AN EMPIRICAL STUDY ON FINANCIAL PERFORMANCE OF ANANTAPUR

Title: A STUDY ON URBAN COOPERATIVE BANKS TOWARDS ECONOMIC

development of the country by making available institutional credit at reasonable cost

The study is confined to only The Bharath co-operative Bank.

A bank is a financial institution, which deals in money. In other words, A bank is an

INDIAN BANKING INDUSTRY

DEFINITION OF BANKING BUSINESS

According to HENNERY WOLLS Co-operative banking is an agency with in a position

Features of co-operative banks

Types of co-operative banks

1. Primary credit society:

2. State co-operative bank:

3. Central co-operative bank:

Urban co-operative bank:

2.2PROFILE OF THE BANK

The Bharat Co-operative Bank aims at becoming scheduled bank in future.

In the year 2015-16 it earned net profit 142.43 lakhs

SALIENT FEACTURE OF THE BHARAT CO-OPERATIVE BANK

1. Most convenient bank timings (split hours during morning $ evening)

7. Vehicle lone, gold lone, government security loan, 75% value.

8. Direct clearing facility.

2.3VISION, MISSION AND QUALITY POLICY

A. (RTGS System for instant transfer of funds:

B .Electronic fund transfer (EFT) SYSTEM:

C .National Electronic Fund Transfer (NEFT) System:

The Bharath co-operative Bank H.O

THE BHARAT CO-OPERATIVE BANK BRANCHES DETAILS

SR. NAME OF NO. and date DATE OF NAME OF Name of Date of

6. Yelahanka UBD-BG- 31.07.199 Yelahanka Bangalore 25.10.2005

DR. JAGATH MC VICE PRESIDENT

GANGADHAR A GOWDA K.L

Sir M Visveshwarayya co-operative bank: Established in the year 1979.has a

THE MALLESWARAM CO- OPERATIVE BANK LTD: headed by Late Sri V

The Bangalore City Co-operative Bank Limited: was founded by Sri. K.

2.8 SWOT ANALYSIS

THE SWOT analysis of Bharath co-operative bank is as follows:-

2.9ACHIEVEMENTS AND AWARDS:

Deposit crossed 150 corers in the year 2011.

2.10 FUTURE GROWTH AND PROSPECTS:

To achieve 21% year to year growth in business.

2.11 FINANCIAL STATEMENT

BALANCE SHEET AS ON 31-03-2016

Liabilities Amount Assets Amount

Profit and loss a/c 14243376.36 Investments 1427710558

Deposits 3312373481.70 Loans and Advances 2089204244.41