A STUDY ON DEPOSITS AND LOANS OF

VELLIKULANGARA SERVICE CO-OPERATIVE BANK

CLIPTHAM NO.425

PROJECT REPORT SUBMITTED TO THE

UNIVERSITY OF CALICUT

In Partial fulfilment of the requirement for the

Award of the degree of

BACHELOR OF COMMERCE

By

HARITHA.P.H

Reg.No. PGAQBS0071

UNDER THE SUPERVISION OF

UNIVERSITY OF CALICUT

KERALA
 DECLARATION

I HARITHA.P.H (Reg.No.PGAQBS0071) do hereby declare that project

report entitled “An Analysis on Deposits and Loans of Vellikulangara Service
Co-operative Bank”submitted to Calicut University is a partial fulfilment of the
requirement for the award of the degree of the Bachelor of Commerce is a
record of original project work done by me during the academic year 2017-
2018 under supervision and guidance of as…..

Place:

Date: HAIRTHA.P.H
 CONTENTS

CHAPTER NO. TITLES PAGE.NO.

1. Introduction
A. Industry Profile
B. Research
Methodology
2. Review of
Literature
3. Data Analysis
4. Finding, Conclusion
and Suggestions
5. Bibliography
6. Appendix
 LIST OF TABLES

TABLE NO. CONTENT PAGE NO.

Table showing Saving
1
Deposit
Table showing Fixed
2
Deposit
Table showing Recurring
3
Deposit
Table showing Daily
4
Deposit
Table showing Total
5
Deposits
6 Table showing Gold Loan
Table showing Ordinary
7
Loan
Table showing MT
8
Mortgage
Table showing Business
9
Overdraft
Table showing Deposit
10
Loan
Table showing Total
11
Loans
 PROJECT ACKNOWLEDGEMENT

Reg No. of the student

Name of the student
Programme Name
Title of the Project
Date of receipt
Total No. of pages including appendix

Signature of the student Name and Signature of the Co-ordinator(with Seal)

Name of the Project Receiving Centre

CHAPTER – 1
 INTRODUCTION
HISTORY OF CO-OPERATIVE MOVEMENT IN INDIA
The experience of British government with India’s peasent society on
occasions of famine, scarcity gives the idea of providing some financial
assistance to the village peaople. It was also found that Indian peasentry
slways suffered from lack of funds required for the development of farm
produce. The striking factor is that the jagirdars and jamindars always
exploited the when the latter failed to deposit the land tax in time. Even they
required money for their subsistence if there was a famine. Realisation of land
tax was the first objective of the colonial rule. This prompted the British
government to establish credit co-operative societies in the villages. The first
Co-oerative credit societies Act was passed in 1912. The movement has now
made rapid strides. The governement before fostering and supporting it
wanted to be sure if it was developing on right lines. Therefore, it appionted
Maclagan Committee in 1914 which suggested certain improvements in its
functioning, such as better procedure of audit, emphasis on teachings to
members and to have steady progress of the movement. However, in spite of
warning given by the committee, the number of societies continued to
increase rapidly. The cooperative movement got a boost during the war
period. Various post-war plans were drawn up in the country and they all
emphasised the increasing role of co-operative movement. As a result, a Co-
operative Planning Committee was appointed by the Government of India in
1945.
HISTORY OF CO-OPERATIVE MOVEMENT IN KERALA

The Co-operative movement started in Kerala long before the

attainment of independence. In 1946 there were 1669 co-operative societies
with a total working capital 92.21 lakhs of rupees. There are at present about
14,000 co-operative soscieties under the Registrar of Co-operative Societies. Of
these 10,503 societies function satisfactorily. They include the apex institutions
like the State Co-operative Bank, the State Agricultural and Rural Development
Bank, 14 District Co-operative Banks, 60 Urban Banks, 48 Primary Agricultur al
and Rural Development Banks, and 1602 primary Lending Societies. The total
deposit in the co-operative secto is 40,000 crores. About 75% of this is
distributed as loans. Co-operative institutions were developed in Kerala as a
result of mass struggles and peoples’ participation. Compared to the mo
vements in other States, the co-operative movement in Kerala is more
comprehensive and creative. Land reforms have played a great role in Kerala’s
development. The co-operative sector in Kerala is a wide spread one. It plays
its role in the traditional, money lending, marketing, consumer, housing,
women’s welfare,educational, health and constructon sectors. The functioning
of these institutions help to provide the people services of various kinds of low
cost. The State Government is intervening effectively to take the co-operative
sector forward and extend its service to the people. The co-operative sector
has been playing a distinct and significant role in the process of socio-economic
developmet of the state with special focus on rural population and livelihood.
Through sustained efforts, co-operatives have made impressive progress in
various segments of Indian economy particularly in agriculture credit
disbursement, fertilizer distribution, procurement aabd distribution of
agricultural commodities, promotion of consumer activities, health,diary,
fisheries.handloom,coir etc. The co-operative movement in Kerala has a solid
foundation and impressive track record in terms of financial stability and sound
infrastructure to generate adequate funds.
 COMPANY PROFILE

Name & Address : Vellikulangara Service Co-operative Bank Ltd.No.425.

Vellikulangara P.O

Chalakkudy Taluk

Thrissur District.

Area of Operation : Vellikulangara Service Co-operative Bank

Head Office : Vellikulangara

Branch : Kodaly

Extension Counter : Vellikulangara

Liability : Limited

Members : 13520

Deposit : (115.68 Cr)

Loans : 89.37 Cr. Co.

Audit : Concurrent

Audit Classification : A Class

I.b. INDUSTRY PROFILE

Vellikulangara Service Co-operative Bank Ltd.No.425, P.O. Vellikulangara

(Chalakkudy taluk) Vellikulangara panchayath in Thrissur District. Its area of operation
consist of Vellikulangara panchayath. The bank was established in 1921 with the motive of
operation among farmers in the early stage, the bank was engaged in textile trade. Due to
huge losses, these were stopped later. The main banking activities of the bank are
accepting deposits and advancing loans. Moreover subsidiary functions of the banks
includes working as an agent of RUBCO and providing facilities like Neethi Medicals stores of
fertilizer, Kizhakkupunjappadam lift irrigation scheme is an important activity of the bank.

The head office and main branch of the bank are functioning at Elanad. Apart from
the main branch, there is a branch at potta. At present, the bank has developed into a full-
fledged banking institution with an authorized capital of Rs.100 lakhs, paid-up capital of
Rs.90 lakhs and there are 13898 members.

I.c. FUNCTIONS OF THE BANK

The functions of Pazhayannur Farmer’s Service Co-operative Bank may be enlisted as

follows:

1. The bank is organized and managed on the principle of Co-operation, self-help, and
mutual help.
2. The bank works on the basis of “No Profit, No loss” profit maximization is not their
goal.
3. They do banking business mainly in the agriculture and rural sector.
4. To collect movable and immovable properties for the activities of the bank.
5. To provide short term, medium term, long term loan to members.
6. To give loan to members for self-employment.

LIABILITY

The liability of the bank is limited which means that the members will be
liable only for the unpaid amount of shares in the event of winding up of the
bank.

ADMINISTRATION AND MANAGEMENT

 The ultimate of the bank is vested in the hands of general body. Day to
day management of the bank is done by the Board of Directors, consisting of
eleven members shall be elected by the General Body. Two seats are reserved
for the SC/ST, another for women. The term of the office of the committee is
five years. The committee shall elect the President, Vice President and office
bearers accounting to the bye-laws. The service of the Directors are honorary.
The Secretary is the Chief Executive of the Society and is appointed by the
committee with the approval of the Registrar. The bye-laws will clearly state
the duties responsibilities of all the members.

VISION OF THE BANK

Following are the vision of the bank.

1. To encourage the standard of living, self dependency and mutual help.

2. To contribute toward national economic development by participating in
the growing financial service section.

MISSION OF THE BANK

To retain performance on the Parameter, banks are committed to

excellence satisfaction and to play a leading role in expanding and diversifying
financial service sector, which continuing emphasis on its development
banking role.

MEMBERSHIP

The bank has three types of shares namely, A,B and C, the ‘A’ class
shares is given to the person we reside permanently under the area of
operation of the bank should be aged above 18years. He should be a sound
minded person. The ‘B’ class shares is Rs.100, for enrolling in kuries, make gold
loan and enrolling in left irrigation. The bank provides ‘C’ classes shares by
paying Rs. Five as fee. The bank following the rules of Kerala Co-operative
Societies Act 1969, for the admission and removal of membership.
ORGANISATION STRUCTURE
Secretary

Assistant Secretary

Chief Accountant

Manager

Internal Auditor

Accountant

Senior Clerk

Junior Clerk

Attender

Peon
DEPOSITS

Deposits are life blood of banking industry accounting for about 98% of
bank liabilities and other activities of the bank are chiefly dependent upon
deposits. The various deposits schemes provided by Pazhayannur Service Co-
operative Bank includes saving deposit, fixed deposit, recurring deposit and
daily deposits.

The co-operative bank offer different types of deposits they are:

a. SAVING BANK DEPOSITS:

Saving Bank accounts are mainly meant for non-trading customers. It is

generally preferred by middle and low income group who can deposit
only small sums. Salaries classes of lower and middle income group,
farmers or small traders mainly open such accounts. Commercial bank
accept saving deposits. It is mainly done encourage the saving habit of
the people. These accounts are meant for middle and low income
groups. It can be opened with a minimum account of Rs.5. there is
variations in the minimum account to be kept by different banks. The
minimum balance is Rs.500 for saving accounts with cheque facility in
urban centres and metro cities branches State Bank of India. Proper
satisfactory introduction is required for opening saving bank accounts.
The rate of interest paid is less than the rate of interest paid on fixed
deposits.

b. FIXED DEPOSITS:

The fixed deposit means deposits repayable after the expiry of a certain
period, which ordinarily varies from three months to five year. They also
known as time deposit. Customers usually offer
 c. MORTAGE LOAN

A mortgage is the transfer of an interest in specific a movable property

for the purpose of securing the payment of money advanced or to be
advance by way of loan existing or future debt or the performance of an
engagement with may give rise to a transferee a mortgage. The
principle money and the interest of which payment is secured for the
time being are called the mortgage money and the instrument by which
the transfer is affected is called the mortgage deed. The term
immovable property includes land, building and similar other assets.

d. DEPOSIT LOAN

These loans are given to the members who have fixed deposit in the
same bank. Loans are provided on the security of fixed deposit receipt. 80
percent of the deposit amount can be taken as a loan from the bank and
interest on this loan will be two percent more than the rate of interest on
deposit. The loan amount should be repaid before the expiry of the deposit.
 RESEARCH METHODOLOGY
It is essentially a systematic enquiry seeking facts through objective
variable method in order to discover the relationship among them.

A. OBJECTIVE OF THE STUDY

 To study and analysis the various types of deposits and loans.
 To understand the procedure of different deposits schemes
 To make suggestions and recommendation based on the finding of
the study.
 To analyse the saving habits of customers.

B. SOURCES OF DATA
Data collection is a process of gathering and measuring information on
variables of interest, in an established systematic fashion that enables one to
answer stated that enables one to answer stated research questions. Test
hypothesis and evaluate outcomes. In the project data is manually collected
from primary and secondary sources. Secondary data refers to the data which
is already published, Books, Journals, etc... are same of the examples of
secondary data. For this study, previous reports of the organisation, reference
books etc..have been used. Primary data those which are collected by
investigator himself for the first time and they are original in character. For
convenience I have selected secondary data for this study.

C. METHOD OF DATA COLLECTION

There are two methods :-

1. Census method
2. Sample method

The census method involves a complete enumeration of all units of the

population or universe. Census method enables to yield correct factual
data. The type enquiry involves great deal of time, money and energy.
Although the census method gives correct factual information it may be in
complete, inadequate and inaccurate. When the universe is small it is
better to adopt sample method for collection of information. For this
purpose of study I have selected 5 years data only.

D. TOOLS AND TECHNIQUES

There are various tools for the analysis of study. They are interview,
graph, schedule, percentage, Ratios, comparative statements, balance
sheet analysis, trend analysis, working capital analysis, questionnaire
and all the statistical percentage and graph.

E. SAMPLING DESIGN
Sampling design is a design, or a working plan that specifies the
population frame, sample size, sample selection and estimation method
in detail. A sample design is a definite plan for obtaining a sample from a
given population, it refers to the techniques or the procedure the
researcher would adopt in selecting items for sample. I have selected 5
year data for the purpose of study.

F. LIMITATION OF THE STUDY

The major limitation of the study include ;
 Busy time schedule of employee create a problem to get the
responses.
 Time is a constraint
 Money is a constraint
 For the purpose of study I have selected 5 year data only.
 The period of the study was limited.
 CHAPTER 2
REVIEW OF LITERATURE
REVIEW OF LITERATURE
1. The literature relating to sources of credit and credit utilization,
repayment and overdues, factors influencing overdues and various
aspects, issues of this study through the review of existing literature
have been discussed below.

2. BRUCE.C.COHEN and GEORGE.G.EAUFMAN (2007) in their study on

“factors determining bank deposit growth by state” found that, bank
deposit are one of many forms in which liquid wealth may be held. As a
medium of exchange, demand deposit are an alternative to currency,
particularly for individual and small business firms.

3. MAYA.R.KRISHNAN (2002) in this study on “working the Kerala State Co-

operative Bank” stated that while granting loan and advances, the bank
should give preference to small scale sector. This leads to give more
employment opportunity mainly in rural areas and takes strict measures
for collection of the outstanding loans in time.

4. BHATIA (1975) revealed that per farm borrowing was higher on the large
farms but per hectare borrowing was higher in small farms. Borrowed
fund accounted for 46.6% of the total investment on the small farms and
20.9 percent in large farms. Overall, the investment per hectare of
operated land was active and provided 40 percent of the credit to both
types of farms. However, the commercial bank concentrated on large
farms only.

5. GHAR and GANGWAR (1975) have made a study in two blocks (Guargaon
and Palad) of Gurgaon District of Haryana. They found that on an
average, in the two blocks understudy, 54.31 percent of the short term
credit was used for unproductive purpose whereas it worked out to
20.37 percent in respect of medium and long term credit. Thus short
term credit was more misutilised then medium and long term credit by
the small farmers.
6. SING (1975) studies the role of credit institutions in meeting the need of
the rural poor and also the participation of different institutions in
providing rural institution in providing rural credit in Muzzafarpur
District of North Bihar. The major share in total agricultural credit
advanced by organised credit institutions during the period 1972-75 was
accounted by LDB (50%) followed by co-operatives 22 percent,
commercial banks 20% and Government 8% among the different sources
of credit in unorganized sector the money lenders finance
predominated, accounting for about 90% of the borrowing per
household on an average.

7. DEO (1976) in this study on problems of agricultural credit allocation,

emphasized that the problem of credit allocation in agricultural was
immense and required adequate attention. He was suggested that the
financial expert, social scientists and team of bank personnel have to
work together and have to make micro level planning for expansion of
credit.

8. SWIDHA and CHAND (1981) , an analysing the pattern of credit

distribution and overdues,, have found that there was inverse
relationship, between the overdues and credit advanced to different
farm categories. They have further found that most of the small farmers
were non-willful defaulters whereas most of the medium and large
farmers were wilful defaulters. They have suggested thatin order reduce
the overdue of small farmers, their income should be increased through
additional investment by way of adoption of improved method of
cultivation while the overdue of large farm could be reduced by taking
strict action agaist term.

9. A.R.VISWANATH has made an attempt to analysis the performance of

agriculture credit co-operative and their overdues problems in India in
2001. Initially, an attempt is made to assess the overall performance of
agricultural credit co-operatives, by using the development index. It is
followed by an analysis relating to the nature and extent of overdues
 problems by using correlation co-efficient technique. Finally, it
highlights the main factors causing mounting overdues and suggests
remedies to mitigate the same in the coming years. They are:

(a) The seasonality in disbursement andrecovery of loans should be strictly

adhered to by credit co-operatives.
(b) In order to minimize the problem of overdues, urgent steps must be
taken to create recovery call in each district headed by a district judge.

10. KADRIA.P and CHADAI .SS (2006) in this study on “Performance pf rural
credit delivery system of scheduled commercial bank’s revealed that
there is no denial to scheduled commercial banks especially in the past
economic reforms period, but there is an urgent need to have fresh
thinking on equity and adequacy of credit.

11. SATHISH.O and BALA BARATHI Y(2005-2006) In their study on “Indian

banking coming of age-suggestted that management of a bank takes
initials decisions depending on its risk perception. The rate of total
advances to deposits indicates the ability of a bank in converting its
deposits into higher earning advances.

12. CHRIS O UDOKA (2015) In his study on “Bank Loan and advances:
Antidote for restructuring the agricultural in Nigeria, 1985-2012- noted
that there was a significant relationship between bank’s loans and
advances and agricultural growth in Nigeria.

This chapter dealt with review of literature both conceptual and

empirical. The next chapter deals with the percentage growth analysis of
deposits and loans over past five years.
End Notes

2ndBruie C Cohen and George G Kaufman, “factors determining Bank deposit

growth by state”. The ICF journal of bank, Management March 2007, volume
20,ppp 21-25.

3rd Maya R Krishna, “working of the Kerala State Co-operative Bank”. Hzdian
banking today and tomorrow, April 2002, volume 35, pp 80-85.

4thBhatia.J.p, “Problems of small farmimg – A case study of Tribals (UP)”.

Indian Journal of Agricultural Economic, 1975, P.240.

5thGhar R.K. and Gangwar A.C “Small farmers and utilization of SFDA credit in
District Gurgaon (Haryana) Financing agriculture, 1975.

6th Singh R.P. “Study of rural credit structure in Muzaffarpur District, Bihar
“Financing agriculture, 1975.

7th DEO.S. “Problems of Agricultural credit a allocation: Rura India 1976.

8thSwidha D.S and Chand R “Distribution of agricultural credit and

concentration of overdues in Punchab.Financing of Agriculture, 1981.

9th A.R. Viswanath (2001) An analysis of the performance of agricultural credit

co-operative and their overdues problems in India, Indian co-operative Review,
July.

10thP.Katania and SS Chadal. “Performance of rural credit delivery system of

scheduled commercial bank”. Southern Economist, Volume 45(11), 2016.

11thD.Sathish and Y.BalaBharathu.“Indian Banking coming of Age” Indian

banking 2005-2006, Oct 2006.

12thG.Christ O Udoka , Bank Loan and advances: Antidote for restructuring the
agricultural in Nigeria, 1985-2012”, International journal of Research studies
and management, volume 2, March 2015, pp 9-18.
 CHAPTER - 3
DATA ANALYSIS AND INTERPRETATIONS
SAVING DEPOSITS

3.1 Table showing saving deposits

YEAR AMOUNT % OF GROWTH

2012-2013 983.47 15.9
2013-2014 1282.72 30.47
2014-2015 1665.40 29.83
2015-2016 1529.46 -8.16
2016-2017 1792.82 17.21
(Source: Compiled from annual reports)

The above table shows that the savings deposit has undergone the fluctuating
trend. During the upcoming years, the amount of savings deposit is increased
except the financial year 2016-2917. It shows the lowest growth rate of -8.16%
The financial years 2013 to 2014 shows the highest growth rate of 30.47%.

DAIGRAM 3.1

Percentage growth of saving deposit.

35
30
25
20
15
10
5
0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017
-5
-10
-15

The diagram shows that percentage growth of saving deposit is facing a

fluctuating trend. The graph shows the increasing growth rate up to the year
2011-2015 and decrease in trend from the year 2015-2016. The highest
growth rate is 30.47% in the year 2013-2014 and the lowest growth rate is -
8.16 in the year 2015-2016.
FIXED DEPOSIT

3.2 Table showing Fixed Deposit.

YEAR AMOUNT PERCENTAGE

2012-2013 12104.01 41.63
2013-2014 15508.62 28.13
2014-2015 19810.30 27.74
2015-2016 25798.19 30.23
2016-2017 32676.13 26.66
(Source: Compiled from annual reports)

From the above table, it is clear that the fixed deposits of the bank shows an
increasing trend. The financial year 2012-2013 shows that the amount of fixed
deposits is Rs.12104.01 lakh, but, it reached to Rs.32676.13 lakh in 2016-2017
with a growth rate of 26.60 percent.

DIAGRAM 3.2

Percentage growth of Fixed Deposits.

45
40
35
30
25
20
15
10
5
0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

The diagram shows the percentage growth rate of fixed deposits for five year.
The highest growth rate is 30.23 percent in the 2015-2016 and the lowest
growth rate is 26.66 percent in the year 2016-2017.
RECURRING DEPOSITS

3.3 Table showing Recurring Deposit.

YEAR AMOUNT PERCENTAGE

2012-2013 85.32 -11.01
2013-2014 101.58 19.06
2014-2015 107.90 6.22
2015-2016 99.17 -8.09
2016-2017 122.77 23.79
(Source: Complied from annual reposits)

The above table shows that during the year 2012-2013, the recurring deposit
was Rs.85.32 lakhs. The financial year 2013-2014 shows the lowest growth
rate of -11.01 percent. In short, the recurring deposit has undergone a
fluctuating trend.

DIAGRAM 3.3

Percentage Growth of Recurring Deposits.

30
25
20
15
10
5
0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017
-5
-10
-15

The diagram shows a decreasing trend in the percentage growth rate of

recurring deposits except in the year 2013-2014. In the year 2016-2017 it
reaches to the highest growth rate of 23.79 percent.
DAILY DEPOSITS

3.4 Table showing Daily Deposits.

YEAR AMOUNT PERCENTAGE

2012-2013 45.95 -12.18
2013-2014 110.92 141.39
2014-2015 148.30 33.70
2015-2016 158.38 6.80
2016-2017 141.71 -10.52
(Source: Complied from Annual reports)

The above table shows a increasing trend in the amount of daily deposits
except the period 2012-2013. The amount of daily deposits has increased from
Rs.45.95 lakhs in 2012-2013 to Rs.141.7 lakh in 2016-2017. The highest growth
rate is -12.18 percent in 2012-2013.

DAIGRAM 3.4

Percentage Growth of Daily Deposits.

160

140

120

100

80

60

40

20

0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017
-20

The above diagram shows a fluctuation trend in the percentage growth of daily
deposits for five years. The highest growth rate if 14.139 percent in the year
2013-2014 and the lowest growth rate if -12.18 percent in the year 2012-2013.
The growth rate of the latest year 2016-2017 is -10.54 percent.
TOTAL DEPOSITS

Table 3.5
DEPOSIT SCHEMES
2012-2013 to 2016-2017
(Rs. In lakhs)

ITEMS 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 TOTAL

Saving
983.14 1282.72 1665.40 1529.46 1792.82 7253.54
Deposits
Fixed
12104.01 15508.62 19810.30 25798.19 32676.13 105897.25
Deposits
Recurring
85.32 101.58 107.90 99.17 122.77 516.74
Deposits
Daily
45.95 110.92 148.30 158.38 141.71 605.26
Deposits
Total 13218.45 17003.84 21731.90 27585 34733.43 114272.79
(Source: Compiled from Annual reports)

The table shows the different deposits for the past five years. From the above
data we can the amount of fixed deposits is more than the other deposits.

3.2 ADVANCES

Lending one of the primary functions of the bank. Loan is a major item
on the asset side of the balance sheet and is major contribution revenue or
profit of a bank which in turn is necessary for the survival. The various loan
schemes provided by Karuvannur Service Co-operative Bank include Gold Loan,
Mortgage Loan, deposit, Ordinary Loan and business overdraft.
GOLD LOAN

3.6 Table showing Gold Loan.

YEAR AMOUNT PERCENTAGE

2012-2013 2610.32 35.05
2013-2014 3927.53 50.46
2014-2015 3532.86 -10.05
2015-2016 3509.95 -0.65
2016-2017 2779.30 20.81
(Source: Completed from Annual reports)

From the above data, we can say that there is a fluctuating trend in the
amount of gold loans. The above table shows in increasing trend in the
amount of Gold loans in 2012-2017. The amount of Gold loan has increased
from Rs.2610.32 lakh in the year 2012-2013 to Rs.3927.53 lakh in 2013-2014.
The current growth rate is 50.46.

DIAGRAM 3.6

Percentage Growth of Gold Loan.

60

50

40

30

20

10

0
2012-2013 2013-2014 2014-2015 2015-2016
-10

-20

The above diagram clearly shows a fluctuation trend in the percentage growth
of gold loan. The highest growth rate of gold loan in 50.46 percent in the year
2013-2014. The lowest growth rate is -10.05 percent in the year 2014-2015.
ORDINARY LOAN

3.7 Table showing Ordinary Loan.

YEAR AMOUNT PERCENTAGE OF GROWTH

2012-2013 53.18 1.18
2013-2014 88.13 65.72
2014-2015 102.90 16.76
2015-2016 140.32 36.37
2016-2017 160.12 14.11
( Source: Complied from Annual reports)

The above table shows an increasing trend in the amount of ordinary loans of
the financial years 2012-2017. The amount of ordinary loans has increased
from Rs.53.18 lakh in the year 2012-2013 to Rs.160.12 lakh in 2016-2017. The
current growth rate is 14.11 percent.

DIAGRAM 3.7

Percentage Growth of Ordinary Loans.

70

60

50

40

30

20

10

0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

The above diagram clearly shows a fluctuating trend of growth rates in

ordinary loans. The highest growth rate of ordinary loans is 65.72 percent in
the year 2013-2014. The lowest growth rate is 1.18 percent in the year 2012-
2013. The growth rate of the latest year is 14.11 percent.
MT MORTAGE

3.8 Table showing MT Mortgage.

YEAR AMOUNT PERCENTAGE OF GROWTH

2012-2013 2463.21 74.42
2013-2014 5113.04 107.58
2014-2015 7760.61 51.78
2015-2016 10307.87 32.82
2016-2017 16757.78 62.57
(Source: Completed from Annual reports)

The table clearly shows a increasing trend in the amount of MR mortgages

where the amounts are increasing in a decreasing manner. The amounts have
increased from Rs.2463.21 lakh in 2012-2013 to Rs.16757.78 lakh in 2016-
2017. The highest growth rate is 107.58 percent in 2013-2014.

DIAGRAM 3.8

Percentage Growth of MT Mortgage

120

100

80

60

40

20

0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

The diagram shows that the percentage growth of MT mortgage have a

fluctuating trend among the five year. The highest growth rate is 107.58
percent in the financial year 2013-2014. The financial year 2015-2016 shows
the lowest rate of 32.82 percent.
BUSINESS OVERDRAFT

3.9 Table showing Business Overdraft.

YEAR AMOUNT PERCENTAGE OF GROWTH

2012-2013 4771.91 17.84
2013-2014 4632.55 -2.92
2014-2015 5993.84 29.39
2015-2016 9741.14 65.52
2016-2017 9982.61 -2.47
(Source: Compiled from Annual reports)

The above table shows an increasing trend of business overdraft except in the
financial year 2013-2014. It has increased from Rs.4632.55 lakh in these five
years. In short, it can observe that there is an increasing growth rate in
business overdraft over the past five years.

DIAGRAM 3.9

Percentage Growth of Business Overdraft

70

60

50

40

30

20

10

0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017
-10

The above diagram shows an increasing trend in the percentage growth rate of
business overdrafts except in the year 2016-2017. The highest growth rate is
62.52 percent in the year 2015-2016 which is also the current year’s growth
rate. The lowest growth rate is 84.62 percent in the year 2016-2017.
DEPOSIT LOAN

3.10 Table showing Deposit Loan

YEAR AMOUNT PERCENTAGE OF GROWTH

2012-2013 381.66 79.02
2013-2014 411.14 7.72
2014-2015 497.22 20.94
2015-2016 604.85 21.65
2016-2017 733.27 21.23
(Source: Compiled from Annual reports)

The above table shows an increasing trend in the amount of deposit of the
financial years 2012-2017. The amount of deposit loan has increased from
Rs.381.66 lakh in the year 2012-2013 to Rs.733.27 lakh in the year 2016-2017.
The highest growth rate is 79.02 percent in the year 2012-2013.

DIAGRAM 3.10

Percentage Growth of Deposit Loan

90
80
70
60
50
40
30
20
10
0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

The above diagram clearly shows a fluctuation trend growth rate of

deposit loan. The highest growth rate of deposit loan is 79.02 percent in the
year 2012-2014. The growth rate of the latest year is 21.23 percent.
TOTAL DEPOSITS

Table 3.11

LOANS SCHEMES

2012-2013 to 2016-2017

(Rs.In lakhs)

ITEMS 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 TOTAL

Gold
Loans
2610.32 3927.53 3532.86 3509.95 2779.30 16359.96
Ordinary
Loans
53.18 88.13 102.90 140.32 160.12 1031.75
MT
Mortgage 2463.21 5113.04 7760.61 10307.87 16757.78 42402.51
Loan
Business
Overdraft
4771.91 4632.55 5993.84 9741.14 9982.61 35122.05
Deposit
Loan
381.66 411.14 497.22 604.85 733.27 2628.14
Total 10580.28 14172.39 17887.43 24304.13 30413.08 107244.41

The above table shows the different loans for the past five years. It is
seen that the amount of MT mortgage loan is more than the other loans. The
second largest portion is contributed by the business overdraft as compared to
the rest.
 FINDING, CONCLUSION AND SUGGESTIONS

1. The percentage growth of saving deposits shows a fluctuating trend.

During the financial year 2015-2016 it shows the lowest growth rate of -
8.16 percent.
2. The percentage growth of fixed deposit shows the highest growth rate
of 41.63 percent in the year 2012-2013.
3. The recurring deposits of the bank shows a fluctuating trend except in
the year 2016.2017 with the growth rate of 23.79.
4. The percentage growth of daily deposits shows on increasing trend in
the year 2015-16 it shows the highest growth rate of 158.38 percent.
5. The percentage growth of changes in total deposits having a fluctuating
trend.
6. The major portion of total deposits is contribution by fixed deposits.
7. The percentage growth of gold loan shows a fluctuating trend and the
highest growth rate of 50.46 percent in the year 2013-2014.
8. The highest growth rate of ordinary loan is 65.72 percent in the year
2013-2014.
9. From the analysis of percentage growth of MT mortgage shows a
increasing trend and current year recording a growth rate of 62.57
percent.
10.The analysis of business overdraft lead to the conclusion that is shows
on fluctuating trend except in the year 2013-2014 with the rate of -2.92
percent.
11.The analysis of the deposits loan shows a fluctuating trend and the
highest growth rate is 79.02 percent in the year 2012-2013.
12.From the analysis of percentage growth of changes in total loans it sows
a fluctuating trend.
13.From the analysis of total loans for the all the five years business
overdraft and MT mortgage are the major advance area of the bank.
SUGGESTIONS

1. The bank should assess the repaying capacity of the borrower before
lending loans.
2. The bank should be vigilant in the recovery of loan amount.
3. Adequate information about new schemes should be provided to the
public.
4. To bring out more innovative products of deposit and non-schemes.
5. Strengthen the internal check system.
6. The bank should exercise adequate on the utilization of loans.
7. The bank can give effective advertisements on its products.
CONCLUSION
A co-operative bank is a socio-economic institution that plays an
important role for the development of its members Vellikulangara Service Co-
operative Bank also aimed at promoting the economic interest of its members
by complying with co-operative principles and provisions of bye-law. The
major function of the bank is to accept deposits and lending loans to its
members. Loans are issued in proportion to the deposits. The deposit of the
bank is sufficient to meet its requirement. The bank is facing certain problems
in the recovery of loans. This is the major problem to be remedied.

From the study it is able to find out that the resource of the bank is
effectively utilized for providing loans. The bank of different type of deposits
for increasing the saving habits of members. The bank provide financial
assistance to farmers & traders, co-operative banks can performs better by
mobilizing surplus resources or funds from the Urban and rural people and
meet the most urgent task of financing agricultural and small industries.

From this study it was clear that company gives much importance their
deposit mobilization & grant loans & advances to farmers & small farmers.
However attempts should be taken to promote the further developments of
the bank by bringing more innovative products of deposits and loan schemes.
BIBLIOGRAPHY
A: BOOKS

 Vasudevan.S.V, “Theory of Banking”, New Delhi:S.Chand and company

Ltd.,2002.
 VasantPesai, “Fundamentals of the Indian financial system new
challenger, New initiatives” New Delhi :Himalayal Publishing Housse,
1998.

B: JOURNALS

 Maya R Krishnan, “Working of the Kerala State Co-operative Bank”,

Indian banking today and tomorrow, April 2002 volume 35, pp 80-85.
 Geetha Sharma and Ganesh Kawadia, “Efficiency or Urban Co-operative
Bank of Maharashtra”, The ICF Journal of bank management, Nov.2006,
Volume 5, pp 15-18.
 Sathish D and Balabarathi Y; “Indian Banking coming of Age” Indian
Banking 2005-2006, Oct.2006,Volume 12, pp 8-13.
 Katania P and Chandal S.S “Performance of rural credit delivery system
of scheduled commercial banks”. Southern economist, Volume 45(ii),
2006,pp 9-12.
 Chris O Octoka, “Bank Loan and advances: Antidote for restructuring the
agricultural in Nigeria, 1958-2012”, International Journal of Research
studies and management, volume 2, March 2015, pp9-18.

C. WEBSITES

www.wiki pedia.com

www.google.in

www.kscb112.com