Study of Sindhudurg District Central Co-Operative Bank

A Project Report
On
A Study of Sindhudurg District Central

Co-Operative Bank Ltd., Sindhudurg.
Submitted by
Mr. Pralhad Mahanand Satvilkar.
Roll No. : 15, Exam. Seat No. :
M. Com. – Part II
Semester – III (2018-19)
Kankavli College - Kankavli,
Dist. : Sindhudurg, Maharashtra (416602)
Submitted to
The University of Mumbai
for M. Com. – Part II, Semester – III on Advanced Financial Accounting
Under the guidance of
Prof. Ms. M. S. Sawant

Kankavli College - Kankavli,
Dist. : Sindhudurg, Maharashtra (416602)
A Study of Sindhudurg District Central Co- Operative Bank Ltd., Sindhudurg
DECLARATION
I hereby declare that, the Research Project entitled “A Study of Sindhudurg

District Central Co-Operative Bank Ltd., Sindhudurg,” completed and written by me
has not previously formed the basis for the award of any degree or diploma or other
similar title of this or any other University or examination body.
Place-Kankavli. Mr.Pralhad Mahanand Satvilkar

Date:-
Prof. Ms. M. S. Sawant External Examiner

Subject In charge
Principal
Kankavli College, Kankavli
Mr. P. M. Satvilkar-Kankavli College–Kankavli (Dec. 2018) Page 2

CERTIFICATE
This is to certify that the Project Report entitled “A Study of Sindhudurg

District Central Co-Operative Bank Ltd., Sindhudurg,” which is being submitted
herewith for the degree of Master of Commerce under the faculty of commerce of
Mumbai University, Mumbai is by Mr. Pralhad Mahanand Satvilkar, under my
supervision and guidance and to the best of my knowledge and belief the work embodied
in the Project Report has not formed earlier the basis for the award of any degree or
similar title of this or any other University or Examining Body.

Date:-
Prof. Ms. M. S. Sawant External Examiner

Subject In charge
Principal
Kankavli College, Kankavli

ACKNOWLEDGEMENT
It gives me a great pleasure to express my sense of gratitude to the Honorable

Vice Chancellor Dr.Suhas Pednekar, University of Mumbai, has given us an opportunity
for preparation of Project Report.
I am thankful to Principal Dr. S.K. Shinde Kankavli College Kankavli. For
inspiration in my Project Work.
It gives me a great pleasure to express my feeling of gratitude to

Ms. M.S. Sawant , Kankavli College Kankavli inspiring, helping and cooperation
during the process of the entire project work.
I am grateful to staff of SDCC bank for their co-operation in data collection.

Date:-

INDEX
Chapter
No. TITLE PAGE NO.
1 INTRODUCTION 1 to 13
2 REVIEW OF LITERATURE 14 to 24
3 COMPILATION OF DATA COLLECTED 25 to 56
4 DATA ANALYSIS 57 to 99
5 CONCLUSION & RECOMMENDATIONS 100 to 105
6 BIBLIOGRAPHY 106 to 107

CHAPTER – 1
INTRODUCTION

1.1-Introduction, History and Origin of

SDCC Bank Ltd.:-
Sindhudurg District Central Co-Op Bank Ltd. Sindhudurg is established on 1st

July 1983. The Ratnagiri district is divided into two parts and separate Sindhudurg
district came in existence therefore earlier Ratnagiri District Central Co-operative bank
bifurcated under section 18 C of the MSC Act 1960. Since the Sindhudurg District
Central Co-Op Bank Ltd. Sindhudurg has got separate entity & started functioning as a
Apex district Central co-operative bank for entire district of Sindhudurg. This bank has
constituted with the object of providing funds to cooperative societies and others in
Sindhudurg district. Initially the authorized share capital was limited to the extent of 1.25
crores however at its authorized share capital is raised up to Rs.31 crores. Currently
Sindhudurg District Central Co-Op Bank Ltd. Sindhudurg is operating with the network
of 98 branches and head office and 38 ATM in entire Sindhudurg District. Sindhudurg
District Central Co-Op Bank Ltd. Sindhudurg is playing important role in financial sector
of Sindhudurg district. Sindhudurg District Central Co-Op Bank Ltd. Sindhudurg is
known as farmers bank and it has implemented different scheme in the interest of farmer
and people of Sindhudurg district are having full confidence on the bank. Approximately
more than 40% of total population of Sindhudurg are account holder of Sindhudurg
District Central Co-Op Bank Ltd. Sindhudurg. Currently its working capital is
Rs.2367.91 crores and its total deposit is Rs.1347.84 crores.

1.2 Objectives of the Study:-
1. To study the functioning of Sindhudurg District Central Co-Op Bank Ltd.

Sindhudurg.
2. To study the aims and objectives with historical background of the Sindhudurg
District Central Co-Op Bank Ltd. Sindhudurg.
3. To study the financial performance of the Bank and analyze the overall
performance evaluated on the basis of other vital parameters i.e. Productivity
parameters, Operational parameters and Social Responsibility parameters.
4. To assess the Capital Adequacy, Reserves, Borrowings, Liabilities and levels of Non-
performing Assets of Sindhudurg District Central Co-Op Bank Ltd. Sindhudurg
5. To evaluate the efficiency and effectiveness of Sindhudurg District Central Co-Op
Bank Ltd. Sindhudurg in mobilizing the deposits, lending advances, investments and
recovery performance of selected banks.
6. To assess the Operating Profit/Net Profit of Sindhudurg District Central Co-Op Bank
Ltd. Sindhudurg.
7. To study the existing transaction system.
8. To study the services provided by the system in view of customer relation
9. To suggest measures for increasing the efficiency of the bank.`
10. To analyze the sources of finance their significance and trends in relation to
total capital structure of the Bank.

1.3:- Research Problem:-
Agriculture plays important role in the Indian economy. The fact that half of the
national income is being contributed by export of agro-based produces substantiates this

point. Further, majority of the Country‟s people is depending on agriculture in one way or
the other. Hence, the welfare of the people and their economic condition, and also the
economic development of the Country depend, to a greater extent, on the output, progress
and prosperity of agricultural sector. In spite of this significant role of agriculture, it is
unfortunate to note the pathetic situation of agriculturists as half of the rural population
live below poverty line and most of them remain indebtedness. One of the reasons for this
has been on account of inadequate returns from agriculture sector. Besides,
modernization schemes in agriculture resulted in the substantial increase in the
investments on seeds, fertilizers, pesticides, irrigational facilities, cost of labour and on
labour saving equipment. As a result, the financial requirement of farming-community
has been increasing year after year on a consistently increasing basis. To put it
differently, the farmers are in need of higher amounts of credit/loan for the purpose of
undertaking agricultural activities. In this background, Co-operative Banks, based on
their past performance, are recognized as the better institutions for the provision of sound
and dynamic credit to farmers.
The Co-operative Banks have been performing well in mobilizing small rural
savings and using the same, besides the funds mobilized from other sources, to finance
the requirements of various growth sectors including agricultural sector. Though the
Co-operative Banks have been established with laudable objective, they are suffering
from various problems and as a result, their financial performance is very precarious.
This is due to many a number of reasons such as lower or negative spread, mounting
nonperforming assets, entry of other Banking Institutions into the area earmarked for the

Cooperative Banks as a result of which there is an increasing competition, etc. Moreover

high levels of non-performing assets and high growth in credit of UCBs and Rural Credit
Cooperative Institutions continue to be the major area of concern.
Therefore, it is necessary to assess the financial performance of these Banks. In
this background, the present study intends to focus on the analysis of financial
performance of Sindhudurg District Central Co-Op Bank Ltd. Sindhudurg in general
and in particular with the objective of ascertaining the reasons for the same and also the
extent to which each has contributed to the poor financial performance of Co-operative
Banks.
The study covers the assessment and evaluation of financial performance of Bank
with an emphasis on unearthing the reasons for the mounting losses and non-performing
assets.

1.4 Research Methodology:-

A broad definition of Research is given by Martin Shuttle worth- “In the broadest
sense of the word, the definition of research includes any gathering of data, information
and facts for the advancement of knowledge.”
Another definition of Research is given by Creswell who states – “ Research is a
process of steps used to collect and analyze information to increase our understanding of
a topic or issue”
A part of study is an overview of literature related to the topic and the rest is an
analysis of data collected from various sources. The two main sources of data of
information are Primary data and Secondary data. The available data is tabulated and
analysed to arrive certain conclusions..
SOURCES OF DATA COLLECTION:-
Primary data is more accommodating as it shows latest information.
Observation method,
Questionnaire prepared as below:-
1. Address of the Head Office of the Bank.
2. Date of Establishment and Initial capital, Branches and number of ATM of the Bank:
3. Name of the Highest Authority in the Bank:
4. Education and Age of the Highest Authority in the Bank:
5. Who supervises day-to-day operations?
6. Level of Computerisation:
(i) Fully (ii) Partial (iii) Nil
a) When did it start?
b) How many Computers are there?

c) What are the functions for which computers are used?
d) Whether computer personnel are trained?
e) Where were they trained?
7. Owned Building: (i) Yes (ii) No
8. What is your Employees Recruitment procedure?
9. Number of employees
a. Permanent
b. Temporary
c. Daily basis
10. Did the Bank conduct any Training Programmes?
(a) Name of the Training
(b) Nature of the Training
(c) Duration and Year

11. Nature of Loans issued (Details of Purposes)
12. How the lending rate is decided?
13. What are the reasons for NPA?
14. Details of the Board of Directors:

Name Design Age Edn. Profe. No of Date of Date of
Shares Joining Becomi
Bank ng
Board
Membe
r

Secondary data though old may be the only possible source of the desired data on
the subjects which cannot have primary data at all.
Secondary data is available effortlessly, rapidly and inexpensively. Primary data
takes a lot of time and the unit cost of such data is relatively high.
Secondary data collection sources:-
1. Books.
2. Website of Sindhudurg District Central Co-Operative Bank Ltd., Sindhudurg
Bank.
3. Annual reports of Sindhudurg District Central Co-Operative Bank Ltd.,
Sindhudurg
4. The present study is primarily based on the secondary data – the data to be
collected from Banks and other sources. The required data is collected from
the Bank‟s Head Office of Sindhudurg District Central Co-Operative Bank
Ltd., Sindhudurg which are the units of the present study. Besides, the
necessary data is collected from other sources such as annual reports,
bulletins, magazines, articles, newspapers, e-sources, etc. For collection of the
data steps followed as mentioned below:-
 Step 1- Program Planning.
 Step 2- Survey Development.
 Step 3- Data collection.
 Step 4- Data Analysis.
 Step 5- Findings,Conclusions and Recommendations.
========================================

CHAPTER-2
REVIEW OF LITERATURE

A Brief Review of Earlier Studies:-

Volumes of literature on Co-operative Banks were written by many authors,
administrators, study teams and researchers. There are many research studies that try to
evaluate - whether the Co-operative Banks are operating efficiently or not. At attempt is
made in the following paragraphs to review some of important earlier works by the
scholars with a view to find whether any researcher has worked on the topic of the
proposed study. In his work entitled Financial Sector Reforms - A Global Perspective,
Sohani, A. K (2009) assessed the financial stability, accounting and auditing reforms in
Banks.
Harish Kumar Singla (2008) in his work entitled, Financial Performance of
Banks in India examined the crucial role of financial management in the growth of
Banking Sector with a special emphasis on profitability analysis of selected sixteen banks
for a period of seven years, 2000-01 to 2006- 07). Ramakumar, T. N (2008) in his work,
Co-operative Banking - Indian and Global Perspectives, focussed on the assessment of
efficiency of Urban Co-operative Banks in Maharashtra. B. Ramachandra Reddy‟s (2008)
work, Management of Non Performing Assets in Banks, comes to a conclusion, based on
the factual analysis, that the NPAs not only eat into profitability and hamper their ability
to recycle fund but also shake the public confidence which is crucial for the existence and
growth of any financial institution.
Abdual Hadi (2006), in his paper entitled Performance of Regional Rural Banks
in West Bengal - A Evaluation, investigated the socio-economic role of Regional Rural
Banks in the welfare of people living in rural area. In the paper entitled, Performance
Appraisal of Urban Co-operative Banks –
A Case Study, Amit Basak (1995-96 to 2006-07) has highlighted that UCBs
figure among the vital segments of the banking industry. They essentially cater to the
credit needs of persons of small means.
Biswa Swarup Misra (2006), in his work Performance of Regional Rural Banks in
India, examined the problems of loss making RRBs with an emphasis on whether the
problem is confined to some particular sponsor banks. In his work, Performance of
selected Public and Private Banks in India, R. Soundara Rajan (2005) evaluated and
compared the performance of Public Sector Banks against Private Sector Banks

(including Foreign Banks) with an emphasis on the competition among themselves. For
the purpose of comparison, the author has used all the parameters to measure
productivity, efficiency, profitability, liquidity and growth. Kusum W Ketkar and Suhas
L Ketkar in their work, Performance and Profitability of Indian Banks in the Post-
liberalisation Period, attempt to determine the impact of various market and regulatory
initiation on efficiency improvement and profitability of Indian Banks since the
implementation of financial sector reforms. Like the above, a number of studies have
been completed by many Researchers in the past. However, no Researcher has worked on
the topic and theme of the present study. Hence, this study aims at studying a topic on
which the Researchers have not worked in the past.
Websites and books for reference as below:-

Websites:-
http://www.sindhudurgdcc.com
www.google.com
ttps://en.wikipedia.org/wiki/Cooperative_banking
https://blog.ipleaders.in/co-operative-banking/
https://www.esds.co.in/sindhudurg-dccb-case-study
Books:-
 Co operative Banking & Credit Societes- A.T. Vaze for Government
Diploma in Co operation & Accountancy.
 History, Principles and Management in co operation – Prof.Kulkarni, Amol
Mahabal, Arindam Haldar.- for Government Diploma in Co operation &
Accountancy.
 Research Methodology for Business MCom Part-1 Sem II Michael Vaz,
Arora Vaz, Manan Prakashan.

An Overview of CoOperative Bank:-
1. The Co-operative banks are an important constituent of the Indian Financial System,
judging by the role assigned to them, the expectations they are supposed to fulfill, their
number, and the number of offices they operate. The cooperative movement originated
in the West, but the importance that such banks have assumed in India is rarely paralleled
anywhere else in the world. Their role in rural financing continues to be important even
today, and their business in the urban areas also has increased phenomenally in recent
years mainly due to the sharp increase in the number of primary co-operative banks. Co-
operative bank regulated by Reserve Bank of India, NABARD & Apex bank. The co-
operative banks in rural areas mainly finance agricultural based activities including
farming, cattle, milk, hatchery, personal finance etc. along with some small scale
industries and self-employment driven activities, the co-operative banks in urban areas
mainly finance various categories of people for self-employment, industries, small scale
units, home finance, consumer finance, personal finance, etc. Though registered under the
Co-operative Societies Act of the Respective States the banking related activities of the
co-operative banks are also regulated by the Reserve Bank of India. They are governed
by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act,
1965.2. Introduction of Reserve Bank of India Page 6
02. Besides the commercial banks, there exist in India another set of banking institutions
called co-operative credit institutions. These have been in existence in India since long.
They undertake the business of banking both in urban and rural areas on the principle of
co-operation. They have served a useful role in spreading the banking habit throughout
the country. Yet, their financial position is not sound and a majority of co-operative
banks has yet to achieve financial viability on a sustainable basis.
The cooperative banks have been set up under the various Co-operative Societies
Acts enacted by the State Governments. Hence the State Governments regulate these
banks. In 1966, need was felt to regulate their activities to ensure their soundness and to
protect the interests of depositors. Consequently, certain provisions of the Banking

Regulation Act 1949 were made applicable to co-operative banks as well. These banks
have thus fallen under dual control viz., that of the State Govt. and that of the Reserve
Bank of India which exercises control over them so far as their banking operations are
concerned.
Cooperative banks are so-called because they are organised under the provisions
of the Cooperative Credit Societies Act of the states. The major beneficiary of the
Cooperative Banking is the agricultural sector in particular and the rural sector in general.
The cooperative credit institutions operating in the country are mainly of two
kinds: agricultural (dominant) and non-agricultural. There are two separate cooperative
agencies for the provision of agricultural credit: one for short and medium-term credit,
and the other for long-term credit. The former has three tier and federal structure.
At the apex is the State Co-operative Bank (SCB) (cooperation being a state
subject in India), at the intermediate (district) level are the Central Cooperative Banks
(CCBs) and at the village level are Primary Agricultural Credit Societies (PACs).
Long-term agriculture credit is provided by the Land Development Banks. The

funds of the RBI meant for the agriculture sector actually pass through SCBs and CCBs.
Originally based in rural sector, the cooperative credit movement has now spread to
urban areas also and there are many urban cooperative banks coming under SCBs.
Features of Cooperative banks:-
· These banks are government sponsored government supported and government
subsidized financial agencies in India. Unlike commercial banks which focus on profits,
cooperative banks are organized and managed on principles of cooperation, self help and
mutual help. They function on a “no profit, no loss” basis. They perform all the main
banking functions but their range of services is narrower than that of commercial banks.
· Some of them are scheduled banks but most are unscheduled banks. They have a federal
structure of three-tier linkages and vertical integration.

· Cooperative banks are financial intermediaries only, particularly because a

significant amount of their borrowings is from the RBI, NABARD, the central and state
governments and cooperative apex institutions.
· There has been a shift of cooperative banks from the rural to the urban areas as
the urban and non-agricultural business of these banks has grown over the years.
Weaknesses: Cooperative banks suffer from too much dependent on RBI, NABARD and
the government. They are subject to too much officialization and politicization. Both the
quality of loans assets and their recovery are poor. The primary agricultural cooperative
societies- a vital link in the cooperative credit system- are small in size, very week and
many of them are dormant. The cooperative banks suffer from existence of multiple
regulation and control authorities. Many urban cooperative banks have failed or are in
the process of liquidation. Cooperative banks have increasingly been facing competition
from commercial banks, LIC, UTI and small savings organizations.
Three tier structures exist in the cooperative banking:
i. State cooperative bank at the apex level.
ii. Central cooperative banks at the district level.
iii. Primary cooperative banks and the base or local level.
03. Financial Performance of Co-Operative Banks - A Brief Analysis

Co-operative Banking Sector, though the oldest in the Banking Sector, it is one of
the weakest segments of Indian Banking System. Both the Reserve Bank of India and the
National Bank for Agricultural and Rural Development have taken various policy
measures in respect of Urban Co-operative Banks and Rural Credit Co-operatives during
the recent years to transform them into financially sound entities.

3.1. Urban Co-operative Banks (UCBs): Urban Co-operative Bank structure is

bifurcated into Scheduled and Non-scheduled Banks. UCBs are graded into four
categories on the basis of their financial performance. This financial performance is
determined by various parameters such as Capital Adequacy, Level of Non-performing
Assets, history of Profit or Loss, etc. While UCBs from Grades - I and II can be
considered as relatively stronger banks, the banks belonging to Grades - III and IV can be
classified as sick and weak banks. Total number of UCBs is 1,721 by the end of March
2009 comprising of 845 Grade – I Banks, 484 Grade – II Banks, 219 Grade – III Banks
and 173 are Grade – IV Banks. Total income and expenditure of UCBs for the year 2008-
09 are Rs.18,962 crore and 15,402 crore respectively. Hence, the total net profit of all
UCBs for the year 2008-09 is Rs.1,746 crore. However, gross non-performing assets of
UCBs amounts to Rs.13,043 crore which is a matter of great concern.
3.2. Rural Co-operative Institutions: Rural Co-operative structure is bifurcated into
short term and long-term institutions. The Short-term Co-operative Structure is of three-
tier structure with State Co-operative Banks as apex level Banks followed by District
Cooperative Banks at the district level followed by Primary Agriculture Credit Societies
at village level. The Long-term Co-operative Structure has State Co-operative
Agriculture and Rural Development Banks (SCARDBs) at apex level followed by
Primary Cooperative Agriculture and Rural Development Banks (PCARDBs) at district
or block level. Total number of Rural Co-operative Credit Institutions is 96,061 at end of
March 2008. Owned fund of these institutions is Rs.53,208 crore at the end of March
2008. Total accumulated loss at end of March 2008 is Rs.11,006 crore. Non-performing
assets of institutions at the end of March 2008 is mopping Rs.60,307 crore which is again
a matter of great concern.

Area of Operation :
The area of operation of these banks are usually restricted by its byelaws to a
municipal area or a town. In some occasions it exceeds this limit.
TYPES OF CO-OPERATIVE BANKS:-

STRENGTH AND WEAKNESS OF COOPERATIVE BANK
MAIN WEAKNESS OF CO-OPERATIVE BANKS
The main weaknesses of co-operative banks are as follows:

1. The vital link in the co-operative credit system namely, the Primary Agricultural Co-
operative Societies, themselves remain very weak. They are too small in size to be
economical and viable; besides too many of them are dormant, existing only on paper.
2. With the expanding credit needs of the rural sector, the commercial banks have come
in actively to meet the credit requirements of this sector, and this has aggravated the
difficulties of co-operative banks. The theory that cooperative banks would be buoyed
up by the competition from other financial institutions does not appear to have worked.
3. Co-operative banks are not doing well in all the states; only a few account for a major
part of their business. For example, 75 per cent of total deposits mobilised by State C-
operative Banks was from only seven states in 1987- Andhra Pradesh, Gujarat,
Karnataka, Madhya Pradesh, Maharashtra, Tamil Nadu, and Uttar Pradesh.
4. These banks still rely very heavily on refinancing facilities from the government, the
RBI, and NABARD. They have yet not been able to become self-reliant in respect of
resources through deposit mobilisation.
5. They suffer from dangerously low or weak quality of loan assets, and from highly
unsatisfactory recovery of loans. They suffer from infrastructural weaknesses and
structural flaws. They do not look like banks and do not inspire confidence in the
potential members, depositors and borrowers.
6. Poor resource base is main constraint of these banks. Relatively low per capita base
and less equity base due to non-participations of the members in the financial activities

and limited area of operation is becoming a permanent obstacle in the progress of this
sector.
7. Poor profit position and burden of huge accumulated losses of several cooperative
banks has threatened the very survival of these banks. The amount of cost of management
of this sector has adversely affected its profitability.
8. Most of the Co-operative banks are suffering from the lack of professional
management. In the deregulated environment and stiff competition in the banking sector,
do to lack of the professionalism in carrying out banking activities, the weakness of these
banks has become more prominent.
9. Many co-operative banks even now continue to follow age-old system and procedures,
which are not conductive in the present technologically driven banking environment.
Except some Co-operative banks, technological development in Information Technology
or computerized data management is conspicuously Absent.
10. There is a lack of proper governance. Corporate Governance has great relevance in
the present environment. As there is no formal system of corporate governance in co-
operative banks, many banks have become the hot bed of political patronage,
unscrupulous financial practice and gross mismanagement.
11. Another problem arises out of the duality of control over them i.e. these banks are
organized under dual control of RBI and as well as respective state government. Apart
from the intervention of the apex bodies, the Government is also found to exercise
control in various ways on these banks. Government intervention in the management,
administration and business operation of co-operative banks has made the institution lose
his own distinct character.

Limitations of the Study:-

The study will be confined to selected SDCC Bank in Sindhudurg with an
emphasis on the evaluation of financial performance. Hence, other aspects that are not
directly pertaining to the financial performance of other Co-operative Banks will be
outside the purview of the present study. Further, the Banking Institutions in other sector
such as private sector, foreign banks, etc will not be covered in the present study.
Besides, the banking institutions in other states of the Country will not be studied in this
study.
One of the supposed limitations is with respect to sampling analysis; Natural bias
of respondents in the reporting of data is often the cause of a systematic bias in many
inquires. Generally in surveys, people tend to give what they think is the "Correct"
answer rather than revealing their true feelings / facts. This may lead to incorrect
inferences.

CHAPTER-3
COMPILATION OF DATA
COLLECTED

Establishment - The Former Ratnagiri district was very large in size and hence for the
sake of convenience as on 1st April 1981 it has been divided into two district viz.
Ratnagiri and Sindhudurg. Accordingly as on 1st July, 1983 the old Ratnagiri District
central co-operative Bank Ltd was also get bifurcated and separate Sindhudurg District
Central Co-operative bank came into existence for newly formed Sindhdurg District.
Area of operation – Being a District Central Co-operative bank, the area of operation of
bank is entire Sindhudurg District.
Branch Network- Bank has network of 98 branches spread across the entire district.
Head office is situated at Sindhudurgnagari, district head quarter.
Affiliated Societies- Bank is working as the federal body of all co-operatives in the
district. Various 1044 co-operative societies including 226 PACs are affiliated to the
Banks. There are 246 Individual members consisting various institutions registered under
Charitable Trust Act and other acts.
Management Appraisal – The Management of the Bank is vested in a Board of

Directors consisting 19 members. The Board of Directors is elected for a period of 5
years from 22-05-2015 to 21/05/2020. The Board represents the dignitaries from social,
political, agricultural and socioeconomic field. The Bank has formed Executive
committee, Audit committee, I.T. Committee, Industrial & cottage Karagir (Loan)
Committee etc as subcommittees to assist the Board of Director in discharging various
functions suitably. The Bank had not co-opted professional directors separately, as one of
the Directors is a law graduate and another director is having adequate experience in
banking and economics.
Duties, role and responsibilities of Board of Director - The duties, role and
responsibilities of the Board of Director are assigned as per the provisions of byelaws of
bank. Some of them are as follows-

1) Admission of members, allotment of additional shares to members.
2) To take decision about raising funds by means of deposits, borrowing etc.
3) Sanctioning loans and advances
4) Refinement in various policies/administrative issues
5) To take review and to make arrangement for implementing various circulars/ directives
etc. issued by RBI/NABARD/RCS/SCBs etc.
6) Maintenance of CRR/SLR, Investment review, adherence to various provisions of

applicable Act.
7) Reviews of recovery performance of bank.
8) Review of Audit Reports, Inspection findings of various Audits & Inspection
9) To do all necessary things to run the banks business smoothly and suitably.
BOD Meetings, Attendance, Minutes etc. - As per the byelaws of the Bank, the
periodicity of the Board of Directors meeting is once in a month. The bank is regular in
convening the meeting. All the directors are regularly attends the meetings and taking
participation in the business of meeting. The Administration Department of Head office
records the minute of meeting with the help of other department. Bank is very prompt in
recording the minute.
Organisational Structure-
At Head office level -
1) Chief Executive Officer- Day-to-day administration of the Banks is managed by the
Chief Executive Officer. He work as a mediator between Management (Board of
Directors) and administration.
2) Deputy Chief Executive Officer – The deputy Chief Executive Officer assists to the
Chief Executive officer in day-to-day affairs of the Bank.

3) Managers – The Chief Executive Officer & the Deputy Chief Executive Officer are
assisted by 6 Managers working as Head of the respective Department. There are 6
various departments to look after the day-to-day business. viz Administration Dept,
Accounts Dept, Loan Dept, Recovery Dept, Audit (Inspection) Dept,, I.T. (Computer)
Dept.
4) Deputy Managers – The Managers are assisted by Deputy Managers who helps the
Managers in their daily workings.
5) Assistant Manager - The Deputy Managers are assisted by Assistant Managers who
helps the Deputy Managers in their daily workings.
6) Subordinated Staff- There are Banking Officers & Junior Banking officer and clerks
working as subordinated staffs.
Branch Level Staff – At branch level respective Branch Manager is head of the branch.
He looks after the day-to-day workings of the branch. He is assisted by Accountants and
Sub-Accountants. The officers at branch level look after the deposit mobilization,
scrutiny of loans proposals, disbursement of loan etc. with the help of other clerical staff.
Field & Recovery Staff – The scrutiny and credit appraisal of society loans and other
large loans, recovery of crucial loans and NPAs, Inspections of borrower societies is done
by Field & recovery officer called as Inspectors.
Total staff strength- The total number of staff of the bank as on 31-03-2016 was 639.
The bank had made a remarkable progress in financial as well as technology

sector. Some milestones achieved by bank in the past 10 years are as follows –
1) Business Diversification –

1.1) Most of the DCCBs are engaged in financing on „On lending‟ basis i.e .loan grants to
PACs/ other co-op. societies to lent their members. But bank has diversified its loans
portfolio and entered into retail banking granting direct loans to individuals. At present
out of the total loans near about 60% loans are granted to individuals.
1.2) Bank is investing its surplus fund in different types of investments. Bank is trading
in Govt. Securities of GoI and State Development Loans since 2012 and earning profit
from trading. In F.Y. 2016-17, bank has earned profit of Rs.437.93 Lakhs from G.Sec
trading. Bank has also investing in Treasury Bills, Cash Management Bills, Call money,
Mutual funds etc and diversified its investment Portfolio.
1.3) Bank‟s selected 31 branches are working as PAN Service centre.
1.4) Bank is providing Safe Deposit Locker facility through various 23 branches.
2) Bank has implemented its CBS Project rapidly and completed it in 2012. Sindhudurg
DCCB is the first DCC Bank in India having own ISR data center situated at Head Office
Sindhudurgnagari. 31 March 2013 was the first year in which annual closing was fully
completed on CBS. Since bank has migrated to CBS, bank has implemented new
concepts of banking like ABB, IBT, NEFT/RTGS, ATM Centers etc. Bank has initiated
actions for new concepts of modern banking since Nov.2015 like e-banking, POS, IMPS.
Till to date bank has successfully achieved following goals-
a) Sindhdurg Bank Mobile App
b) IMPS fund transfer (P2A)
c) RTGS/NEFT fund transfer
d) EMV-RuPay ATM cum DEBIT CARD
e) EMV- Kisan Credit Card
f) POS-Issuer service

g) Miss call alert service for balance enquiry
h) DBTL/APB and other subsidy transfer
i) BNA – For cash deposit
j) Mobile ATM Van
k) IRCTC Railway ticket booking & Mobile, DTH Recharge through Paypoint service
3) Bank has availed Direct Membership („A‟ Class) for RTGS/NEFT under Centralised
payment system of RESERVE BANK OF INDIA. in the year 2016.
4) Sindhudrg DCCB is the first DCCB who is empanelled with UIDAI to provide
Aadhar enrolment Facility to people. Bank has enrolled near about 2.5 Lacs Aadhar
enrollment through its own Aadhaar centers.
5) Bank has its own website namely www.sindhdurgdcc.com. and also a webmail
service namely @sindhudurgdcc.com.
6) Bank has 38 own ATM centers throughout the district.
7) Recently bank has received CCIL membership for the Security Segment.
8) Bank has formed 2 Financial Literacy Centers located at Deogad and Kudal with
NABARD assistance.
9) In order to computerisation of PACs bank has granted interest free loan to PACs
from its own fund and assisted to the PACs to get computerised. Necessary Technical aid
also provided to PACs wherever required.
10) Bank’s own Training Centre –bank has its own Training Centre at Kudal by name
SINDHUBANK TRAINING CENTRE. Bank has conducting various training
programmes for its employees & customers as well as for other cooperative societies staff
and co-operative workers. Bank regularly deputing its staff for various training
programmes organised by NABARD, RBI, VMNICOM etc. time to time.

11) Implementation of UPNRM Project – The Umbrella Programme on Natural

Resource Management (UPNRM) is a joint project implemented in India through
NABARD with the collaboration of German Government. First time in India this project
has been implemented through Sindhudurg District Central Co-op. Bank & Bhagirath
Prathistan (NGO) with assistance of NABARD. Bank was submitted a project of Rs.
200.00 Lacs to NABARD. NABARD has sanctioned a Loan of Rs.186.60 Lacs and grant
assistance of Rs. 13.39 Lacs. From this sanctioned loan, loans has been granted to the
people for Poultry farm, Dairy Development, Biogas construction, Banana cultivation,
and for angleworm. The social benefits of this project were as under-
a) Bio-gas results in savings of wood fuel and helps in stopping forest cutting.
b) Proper disposal of manure, cow-dung.
c) Bio gas results in good quality natural fertilizers.
d) Increase in use of organic fertilizers instead of chemical fertilizers. This results in

improving quality of soil.
e) Decrease in forest cutting.
f) Women save 3 hour of working result in productivity.
g) Smoke-less kitchens has decreased in lung diseases.
The German Government representatives and NABARD at national level awarded the
bank for successfully implementation of UPNRM Project.
Various Policies –
For the smooth conduction of bank‟s day to day transaction various policies has been
prepared and implemented in bank‟s working. Some of these are as follows –
a) Deposit Policy- Describing various deposit schemes, rules of the schemes, interest
calculation method, Intervals of interest payment, pre-matured closing, loan/advances
against deposit etc.

b) Loan Policy – Describing various loan schemes, loan purpose, scale of finance,
eligibility criteria, required security, documentation, rate of interest, terms & conditions,
disbursement procedure etc.
c) Investment policy- Describing various eligible investment avenues, Investment limits,

rights to invest surplus fund, Adherence to RBI/NABARD directions, compliance of
statutory obligations, reporting, stoppage of loss limit, valuation of securities, accounting
, internal control, audit etc.
d) Information & Technology Policy- Describing I.T. organisation, Roles &

responsibilities of BOD, IT Steering Committee, I.T. security & executive committee,
scope of technical consultant/Expert in I.T. Security, I.T Dept. organisation, I.T.
Development, purchase of hardware & software, license policy etc.
e) Information Security Policy- It includes principals of Information Security policy,

Information Security Policy Governance, organisation structure, Role & responsibilities
of I.T Security team, classification & ownership of Information asset etc.
f) Staff Recruitment Policy, Staff Promotion Policy, Staff Transfer Policy, Staff
Training Policy – Bank has formulated various policy regarding HRD like Staff
Recruitment Policy, Staff promotion policy, Staff transfer Policy, Training Policy and

Staff Accountability Policy. Staff rules are framed. The Personnel Management is
conducted according to the policy.
g) Internal Audit Policy- It comprises Organisation structure of Internal Audit

Department, Periodicity of Internal Audit, Scope of Internal Audit, Scrutiny of Balance
Sheet, Asset Management, Revenue Audit, Record verification, Loan document
verification, compliance of circulars, bank policies, bye-laws of bank etc.
h) OTS Policy – One Time Settlement Policy is formed according to the NABARD
guidelines for the recovery of old dues of loan. OTS is sanctioned with the prior approval
of BOD meeting according to the OTS policy.
Apart from above policy there are various policy like Gold Loan Policy, K.Y.C. Policy,
Solvency Certificate issuance Policy, TPM Policy, Death Claim Sanction Policy,
Demand Draft Policy, Complaint Redressal Policy etc.
CBS User Manual – Bank has prepared User Manual for operations in CBS
Environment. This Manual is provided to every branch. It is helpful to the staff while
doing his day to day working.
Management Information System – CBS is a backbone of Management
Information System. In the CBS environment all the information /data is easily available
at data center. Therefore it need not necessary to call any information from branch level.
At head office, MIS Department is look after sending various returns and statements to
RBI, NABARD, Co-operative Dept., MSC Bank and other offices. The raw data is
available from CBS system from I.T. Department. Analysing this data MIS department
prepared prescribed returns and statements.

Internal control, Internal Audit, Statutory Audit etc. - Internal control system is
established in all branches and Head office. In CBS system inputter make an entry and
the authoriser authorised the transaction. Thus there is Checker Maker system which is
mandatory to follow while doing any transaction. Bank has separate Internal Audit and
Inspection department. This department carried out the work of internal audit & look
after compliance of NABARD.Inspection, and other audits Reports. Internal Inspecting
officer has been assigned to do the internal inspection periodically of bank working. For
the inspection of Gold loan, Inspecting officer having experience in gold verification are
appointed. Hence gold loan risk due to fake ornaments is minimized. Quarterly Internal
audit at head office level is carried out by Chartered Accountant appointed by the bank.
In CBS environment, Bank has also conducting branches online audit (Concurrent) on
day to day basis. Bank has set up Vigilance cell at head office. Vigilance officer give
surprise visit to the branches. He reports his observations directly to C.E.O. Thus the
vigilance cell is working effectively.
Statutory Audit is carried out by the Chartered Accountants panel empanelled by
the Govt/ NABARD every year. Bank is prompt in submitting compliance report of the
audit. The observations pointed out in report are complied positively. The compliance
report is first approved by the Audit Committee Meeting and then approved by BOD
meeting. The NABARD inspection is carried out once in two year. Bank is regular in
forwarding the compliance.
Themes and Areas of the National Seminar on Best Practices in STCCS –

Best Practices in CRAR improvement and share capital Mobilization-
RBI has prescribed the minimum level of CRAR to be achieved by DCCBs vide its
circular No. RPCD.RCB.BC.73/07.51.012/2013-14 (Circular no. RBI/2013-14/433)
dated 7-01-2014. As per the directions of RBI, DCCBS has to achieve and maintain
continuously minimum CRAR OF 9% in phased manner i.e. as on 31/03/2015-7% & as
on 31/03/2017-9%.

SINDHUDURG DISTRICT
• Southern part of the greater tract known as 'Konkan'
• Historically famous for its long coastline and safe harbors.
• It was a part of Ratnagiri district,
• For administrative convenience Ratnagiri district was divided into Ratnagiri and
Sindhudurg with effect from 1st May 1981.
• Sindhudurg district comprises the eight tahasils
Population 8.69 lakhs.

SINDHUDURG DISTRICT – Banking Sector

• 136 Branches of Nationalised Banks including State Bank of India,
• 16 Branches of Vidarbha Konkan Gramin Bank
• 98+1 branches of Sindhudurg District Central Co-op Bank,
• 7 Branches of Land Development Bank
• 1 Branch of MSFC.
• 2 branches Local Urban Banks
• 27 branches of other Co-operative Bank.

Banking Business in Sindhudurg District:-

Sindhudurg District Central Co-operative Bank

Ltd., (SDCC) Sindhudurg
• SDCC Bank came into existence bifurcating from RDCC Bank on 1st July 1983, with
 225 as staff
• At this backdrop, within just 30 years, it has reached to a level
09 lacs
 Loans and advances at rs106229.88 lacs.

Profile
Sindhudurg DCC Bank has registered under MSC Act.1960 with registration
no. SNDRG/BNK/1401/Year 1983 dated 1-7-1983 and has license under BR. Act
with license no. RPCD(MRO) 1260/18.01.038/2011-12 dated 20-12-2011.
Highlights:-
Sindhudurg DCC, a Techno-savvy Bank is implementing successfully the Core Banking
Solution (CBS).
 Network of 32 ATM's across Sindhudurg District and is going to extend network
of ATM.
 Sindhudurg DCC has put in place Real Time Gross Settlement System (RTGS)
transactions and National Electronic Funds Transfer (NEFT).
 Nomination facility available for deposit account.
 Safe deposit Locker facility available in Kasal, Kudalcity, Deogad, Kudal,
Sangve, Vaibhavwadi, Sawantwadi, Kharepatan, Sawantwadi city, Dodamarg, Kankavli,
MalvanCity, H.O. Counter, Shirgaon, Talebazar, Phondaghat, Mangaon, Shiroda.
 First Co-op Bank in state wich is started the crop loan.
Loan available for agriculture farming,dairy,poultry,forest farming & irrigation.
 Salary mortgage loan available.
 First Co-operative bank in Maharastra which has issue loan for agriculture
society.
 Loan available for agriculture graduates for agri clinic& agro industries.

Corporate Governance
• Board of Directors consists of 19 members
• 2 of which are expert in Law and Economics.
• Policy to place before the Board all the factual aspects of each case in respect of
sanction of loan.
• The Boards takes the decision in the interest of Bank
• With willful defaulters, the directors used their good offices to recover these loans.

Challenges
Sindhudurg DCCB wanted to improve their website experience for their customers.
Another issue which the bank recognized was that the internal communication between
the bank‟s staff across multiple branches and the head office. The bank was also facing
major network connectivity issue as they were not able to connect their head office with
their branches and ATMs. Their IT and non-IT infrastructure in the head office and other
branches was not being managed properly because they did not have an infrastructure
management solution which would result in an increase employees‟ productivity and
speedy actions whenever and wherever needed.
Solutions
ESDS developed the bank‟s website as per their requirements and made the necessary
updations on it about the bank‟s latest schemes and offerings. The open source platform
used by them foremail communications was perilous because of the flow of sensitive data
that could have been lost if the servers were attacked or if they went down. ESDS‟ email
hosting solution provided them with 500 email IDs and also gave them an option to
choose more email IDs based on their requirement. This coupled with a safe network
meant that the bank could now easily communicate between their branches and head
office. The bank tried eMagic for around 40 days and not only were they satisfied with
the solution/service but were surprised to witness the benefits they were receiving by
implementing the infrastructure management software to monitor their DC and networks

Board of Directors of Sindhudurga District Cental Co –

Op Bank ltd.
CHAIRMAN
1 SHRI .S.J. SAWANT
2 Shri. S. Y. Dalvi Vice.Chairman
3 Shri.A.M.Mangaonkar Director
4 Shri. D. S. Patil Director
5 Shri. P. J. Morye Director
6 Shri. P. S. Gawas Director
7 Shri. V. F. Dantas Director
8 Shri. P. R. Parab Director
9 Shri. R. J. Gawade Director
10 Sou. N. R. Rane Director
11 Sou. P. P. Parab Director
12 Shri. A. S. Otavanekar Director
13 Shri. V. D. Bandekar Director
14 Shri. G. S. Chavan Director
15 Shri. P. R. Dhuri Director
16 Shri. A. S. Kalsekar Director
17 Shri. V. P. Gawade Director
18 Shri. R. T. Margaj Director
19 Shri. V. B. Sawant Director
20 Shri. P. M. Kamat Director

21 Sou. M. G. Wake Invitee Director
22 Shri. A.Y.Desai Functional Director
23 Shri. N.B.Shettye Employee Representative
24 shri. S.P. Sawant Employee Representative

Executives
Sr.No. Name Executives
1 Shri. A.Y.Desai Chief Executive Officer
2 Shri. P.S.Sawant Dy. CEO
3 Shri. A.A.Sawant. Manager (Admin)
4 Shri. P.M.Gawade Manager (Loan/Devlopment)
5 Shri. K.P.Chavan Manager ( Field & Recovery)
Manager (Internal Audit &

6 Shri. P.K.Manjarekar
Accounts and Banking)
7 Shri. R.H.Ogale Manager (COMPUTER)

Deposit Schemes
 Dhanwardhini Scheme Of Fixed Deposit
 Recurring Deposit Scheme
 „Super Saving‟ Deposit Scheme
 „Suvarna Thev‟ Deposit Scheme
 „Dnyanada‟ & “Vidyadhan‟ Deposit scheme specially for student
 „DISHA” Daily Deposit Scheme
 „Saving Account‟, „Current Account'
 „Recurring‟ & „Small Saving‟ Schemes
 Fixed Deposit Scheme
 Hariyali Deposit Scheme(Damduppat Scheme)
Deposited Period Interest Maturity

Amount Rate Amount
Rs.1000/- 120 months 7.10% Rs.2021.00 /-

 Sadafuly(Monthly Scheme)
(on investment of Rs. 100/- per month)
period Interest Rate Maturity Amount
5 years 6.50% Rs.7099/-
7 years 6.70% Rs.10725/-
10 years 7.00% Rs.17370/-
"VIDYA DHAN" Deposit Scheme :-
Monthly Interest period Maturity

Installment rate Amount
1000/- 7.25% 120Months 2051/-

Loan Schemes Sindhudurg District Central Cooperative

Bank Ltd.
• Gold Loan
• „Baliraja” Education loan for farmer‟s children
• „Dnyan Sadhana‟ Education Loan
• “Sindhu Niwas Nyahari‟ Tourism Loan
• Govt. sponsored Loan schemes
• S.H.G. Loans
• Cash Credit Loans
• Short Term Crop Loan
• „Sindhu‟ Pension Loan Scheme
• Medium Term Loan
• „Sindhu Gharkul‟ House Loan
• Long Term Loan
• Personal Loan Scheme
• Special Loan For Sugar Cane
• Sindhu Samruddhi‟ Loan Scheme
• „Sindhu‟ Salary Loan Scheme
• „Computer-Tab‟ Loan
• Vehicle Loan

BANK AADHAAR CENTER
Aadhar center Location Contact No.
Vaibhavwadi (Saturday) 02367-237227
Kudal (Monday and Saturday) 02362-222250
Sawantwadi (Tuesday and Friday) 02363-272058
Dodamarg (Saturday) 02363-256632

SERVICE CHARGES AND FEES
For RuPay Card

RuPay ATM cum Debit Card Tariff Sheet
Annual Charges(P.A.) Rs. 20/- Per Month
All Transaction at Sindhudurg Free

DCC Bank‟s ATMs
Charges for using Other Bank‟s The first five transaction(Including both financial and
ATMs in the NFS network non-financial transaction)in a calendar month :- Free
Sixth transaction onwards:- a)Financial :- Rs. 15/- +

service Tax
b) Non-Financial :- Rs. 5/- + service Tax
Card Replacement Rs. 100/- + service Tax
Pin Replacement Rs.20/- + service Tax
Cash Withdrawal(ATM) limit Rs. 20,000/-

per transaction
Cash withdrawal (ATM) per day Rs. 20,000/-

limit
Daily Limit at POS Rs. 20,000/-
 Service Tax and other Tax as applicable
 NPCI charges are applicable as per NPCI guidelines time to time
Charges applicable as per Bank policy decided by the Bank time to time.
 Charges/Annual fee applicable as per Bank policy decided by the bank time to
time

 Deposit Interest Rate

Rate of
Sr. Period Interest >=15 lacs (Bulk Deposit) w.e.f. 01/09/2018
No. w.e.f. (for individual depositors)
01/09/2018
1. 7 Days to 14 Days 5.75% 5.85%
2. 15 Days to 30 Days 5.75% 5.85%
3. 31 Days to 45 Days 6.00% 6.10%
4. 46 Days to 90 Days 6.50% 6.60%
5 91 Days to 120 Days 6.50% 6.60%
121 Days to
6 6.50% 6.60%
180 Days
181 Days to
7 6.75% 6.85%
269 Days
270 Days to Less

8 7.00% 7.10%
than 1 Year
9 1 Year to less than

7.25% 7.25%
18 Months
10 18 Months to less 7.25% 7.25%

than 2 years

2 years to less than

11 7.10% 7.10%
3 years

12 7.10% 7.10%
5 years

13 7.10% 7.10%
8 years

14 7.10% 7.10%
10 years

Loan Interest Rate

Short Term Loan
Sr. Type_Of_Loan Particulars Bank- Society Individu

No Societi - al
. es Membe
r
w.e.f.(01/04/2014)
A) *Individual loan
limit upto 3.00L 4.00% 6.00% 6.00%
regular repayment
Agriculture(Rice,Mango.Sugar
1. B) *Individual loan
cane etc) 7.00% 9.00% 9.5%
limit more than 3.00L
C)Khavati(Consumpti
9.00% 11% ----
on)
Cash-Credit
to development Societ
11% 13% ---
ies and members
of Societies
2. Non-Agriculture Society Cash Credit 11.5% 13..5% 14%
Bank guarantee to co-

operative societie
12.5% --- ----
for purchasing fertiliz
er

SERVICES
RTGS/NEFT
The Real Time Gross Settlement (RTGS) System and NEFT facilitate the funds transfer
across the Banks and Branches.
RTGS/NEFT amount and charges to transfer them:
 No charges for Inward NEFT/RTGS


 Outward NEFT amount and Charges

Funds Transfer Amount Charges
Rs.100000/- until Rs.3
Rs.100000/- to Rs. 200000/- Rs.17
More than Rs.200000/- Rs.28
 Outward RTGS amount and charges


Funds Transfer Amount Charges
Rs.200000/- to Rs. 500000/- Rs.25
More than Rs.500000/- Rs.55

Debit Card
RUPAY CARD
Kisan Credit Card

Local ATM
Money Transfer
The Sindhudurg DCC Bank as an Authorised Dealer offer the services in Foreign
Exchange business through the International Banking Division . As an "Authorized
Dealer", we do inward and outward foreign exchange in various countries except risk
countries. We do foreign exchange for Education Fee, Medical Treatment Abroad,
Travelling, Maintenance of Family residing Abroad etc.
SMS Alerts
SMS alerts Sindhudurg DCC Bank in an attempt to fulfill the ever rising needs of banks
customers, has launched SMS alert facility for it's customers. Customer can receive ATM
transactional message on his cell

Data Center Sharing

The Sindhudurg DCC Bank is established on 1st July 1983 and introduces Core Banking
Solution in 2012. The Sindhudurg DCC Bank is the first DCC Bank in India having ISR
Datacenter for 24*7 support, situated at head office,Sindhudurgnagari. As a business
continuity plan, Disaster Recovery Site is developed and implemented. Techno based
services like Any Branch Banking, ATMs, RTGS/NEFT, Money Transfer are introduced
to the customers. Introduction of Core Banking has helped to increase the efficiency and
to optimize resources utilization.
Miss Call For Balance Enquiry
SINDHUDURG DCC BANK MISSED CALL FOR BALANCE ENQUIRY
SINDHUDURG DCC BANK – MISSED CALL BANKING is a new service from the
Bank which involves MISSED CALL FOR ACCOUNT Balance SMS by giving a
Missed Call to 9212443824
.Registration Process:
It involves a onetime registration
>> Go to your home branch and registered for sms service to your bank account number.
>> Now your are enable for „MISSED CALL For Account Balance SMS‟ by giving
MISSED Call on 9212443824.
This service can only be activated for the mobile number that is registered for a particular
account with the Bank.

CHAPTER-4
DATA ANALYSIS

DISCLOSURE OF ACCOUNTING POLICIES

Significant accounting policies and notes forming parts of the Financial
statements for the year ended.
31st march 2018
BACK GROUND
Sindhudurga district central co-op bank ltd. Is a District central co-op Bank providing
wide range of banking and financial services. It is governed by the provisions of the
banking regulation act 1949(AACS)
And the Maharashtra state co-op societies act 1960 & the rules framed there under .
(AS1) DISCLOSURE OF SIGNIFICANT
ACCOUNTING POLICIES
1.Accounting convention
The financial statements are drawn up in accordance with the historical cost convention
and on going concern basis and accordance with generally accepted accounting principles
and practices in thecentral co-op banks in India & the applicable statutory prevailing
under MSC Act 1960.
2. Use of Estimates
The prepration of financial statements ,in conformity with generally accepted
accountiong principles, requires management to make estimates and assumption that
affect the reported amount of assets , liablites, revenues & expenses & disclosure
ofcontingent liablites as at the date of financial statements . Actual results could differ
from those estimates.any revision to accounting estimates is recognized prospectively in
current or future period.

3.REVENUE RECOGNITION (AS-9)
3.1 Income /expenditure is generally accounted for on accrual basis ,unless otherwise
stated.
3.2 Income on non-performing assets(NPA) is recognized on realization ,in terms of the
RBI/NABARD Guid lines.
3.3 Intrest in case of NPA if debited to loan account/ intrest receivable account & remain
unrealized the amount of such unrealized intrest is fully provided for by debit to profit &
loss account.
3.4 Intrest income on fixed deposits with banks has been accounted on accrual basis
based on the interest certificates received /broken period intrest basis.
3.5 Intrest income on investment with NABARD Bonds & government securities &
treasury bills has been accounted on accrualbasis based on broken period interest basis.
3.6 Guarantee commission ,locker rent ,evaluation & processing charges ,administration
charges receivable from Govt. organization etc. has been accounted on cash basis. The
commission receivable from MSEDC for their energy bill collection ,commission
receivable from general insurance company for insurance agency accounted on a accrual
basis.
3.7 Interest on Inland bills purchased (IBP)realized after due date is accounted on receipt
basis.
3.8Dividends received from shares of Co-op. institutions are accounted for as and when
received.
4.ADVANCES
4.1 The classification of advances into standard ,sub standard ,doubtful &lloss assets as
well as provision on non-performing advances has been arrived at in accordance with the
directives issued by RBI/NABARD from time to time.
4.2 As per the extant norms theclassification of non performingadvances & required
provision thereon made as follows-

Sr.no Classification Percentage

1 Sub-standard assets( up to three 10
years)
2 Doubtful assets 100
a. Unsecured
portion
b.Secured portion
i)Overdue above 3 years & up to 4 20
years. (D1)
ii)overdue after 4years but not 30
exceeding 6 years (D2)
iii)overdue exceeding 6 years( D3) 100
3 Loss assets 100
4.3 A general provision of 0.25% is made on agricultural advances in standard

category & a provision of0.40% is madeon all other advances in standard
category.
4.4 The provision on standard advances is held under “other liabilities”
5) INVESTMENT-
5.1 Investment portfolio of the bank has been classified in accordance with
theRBI/NABARD directives into the following categories-
i) Held to maturity (HTM)
ii) Available for sale (AFS)
iii) Held for trading (HFT)
5.2Further,in compliance with the said directive the valuation of investment in these
categories has been done as follows:
1. HELD TO MATURITY-

Investment under this category are carried at their book value.. any premium on
acquisition of a security is amortized over the remaining period of maturity.
2.Available for sale/ held for trading –
In case of AFS or HFT category investment are valued at market rate &
appreciation ,if any,ignored . in case of Govt .of india securities the
valuation is done ,at market price ,as per quotation put out by FBIL & in
case of other securities of State Development loans ,securities Guaranteed
by central/ state govt. & PSU Bonds ,on appropriate yield to maturity basis
put out by FBIL.
Treasury bills are valued on carrying cost.
For the purpose of disclosure in balancesheet the investment portfolio of
the bank is classified into following three categories.
a)Central & stateGovernment Securities
b) Share in co-op institutions.
c) Other investments.
The non performing investments are indentified & depreciation /provision

is made as per RBI/NABARD guide lines.
P&L on sale of investment in any category is taken to the profit & loss a/c.
Howerver in case of Profit on sale of investment in “HELD TO
MATURITY” Category , an equvivalent amount is appropriated to the
capital reserve a/c. commission ,brokerage ,broken period interest ec. On
securities are debited /credited to P&L A/C.
6)Inoperative (Dormant) accounts-currents accounts which have not been
operated for last two years( Except co-op societies accounts) have been
marked as dormant account at the end of November every year.
7.AS-5 NETPROFIT OR LOSS FOR THE PERIOD , PRIOR

PERIOD ITEMS & CHANGES IN ACCOUNTING POLICIES.
As prior period items of income/expenditure which are not material ,same
has been charged /accounted in respective heads of accounts.

8.AS-6 & AS 10 Accounting of Fixed assets & Depreciation.

8.1 Fixed assets are stated at historical cost as well as net of depreciation.
8.2 Depreciation is calculated on written down value method on fixed
assets. Depreciation on computer & related machinery is charged on SLM
basis at rate prescribed by RBI. Rates of depreciation are as under.
Sr.no Particulars method Rate of
depreciation
1 Building WDV 5%
2 vehicles WDV 15%
3 a. Safe & furniture etc. WDV 10%
b. Electrical items/feetings WDV 15%
& electronics items SLM 33.33%
c. Power invertors
4 a.Computer hardware SLM 33.33%
b. software SLM 33.33%
5 Library WDV 60%
9)AS-11 FOREIGN EXCHANGE TRANSACTIONS-

Disclosure of this accounting standard is not applicable as bank has not
directly entered any foreign exchange transaction during the year.
10) AS-12Accounting of Government grants.

Bank has not received incentives from NABARD /RBI during the year.

11) AS 15 Employee /Retirement Benefits-

PROVIDENTFUND
Provident fund is a statutory obligation and in the case of Contributory Provident Fund
Optees, the Bank pays fixed contribution at pre-determined rates. The obligation of the
Bank is limited to such fixed contribution. The contributions are charged to Profit and
LossAccount. The fund is managed by Indian Bank Staff Provident Fund Trust.
ii) GRATUITY
2016-17 2017-18
Gratuity insurance 119.31 7.97

premium.
Gratuity liability is a statutory obligation as per Indian Bank Employees Gratuity Fund
Rules and Regulations and is provided for on the basis of an actuarial valuation made at
the end of the financial year. The gratuity liability is funded by the Bank and is managed
by Indian Bank Employees Gratuity Fund Trust.
iii) PENSION
a) Pension liability is a defined benefit obligation under Indian Bank (Employees)

Pension Regulations 1995 and is provided for on the basis of actuarial valuation, for the
employees who have joined Bank up to 31.03.2010 and opted for pension..

b) New Pension Scheme (NPS) which is applicable to employees who joined bank on or
after 01.04.2010 and it is a defined contribution scheme. Under NPS the Bank pays fixed
contribution at pre determined rate and the obligation of the Bank is limited to such fixed
contribution. The contribution is charged to Profit and Loss Account.
iv) COMPENSATEDABSENCES
Accumulating compensated absences such as Privilege Leave and Sick Leave are
provided for based on actuarial valuation.
v) OTHER EMPLOYEE BENEFITS
Other Employee benefits such as Leave Fare Concession and Additional Retirement
Benefit on Retirement are provided for based on actuarial valuation. In respect of
overseas branches and offices, the benefits in respect of employees other than those on
deputation are valued and accounted for as per laws prevailing in the respective
territories.
12. ACCOUNTING FORLEASES

Lease payments including cost escalation for assets taken on operating lease are
recognized in the Profit and Loss Account over the lease term or life whichever is lower.
13. CONTINGENT LIABILITIESAND PROVISIONS
13.1 Contingent liability: Past events leading to, possible or present obligations are
recognized as contingent liability in the following instances where:
(a) The existence of such obligations has not been confirmed
(b) no outflow of resources are required to settle such obligations
(c) a reliable estimate of the amount of the obligations cannot be made
(d) such amounts are not material
13.2 (a) Provision is recognized in case of present obligations where a reliable estimate
can be made and/or where there are probable outflow of resources embodying foregoing
of economic benefits to settle the obligations, excluding frivolous claims.
(b) Provision for Market Risk, Country Risk, etc., are made in terms of extant instructions
of RBI.

(c) Floating provision as identified by the Bank Management is provided for. Floating
provision may be utilized as per extant RBI guidelines, for-
(i) Making specific provisions for non-performing assets;
(ii) Meeting any shortfall in sale of non-performing assets.
14. IMPAIRMENT OF ASSETS
Impairment losses, if any, on Fixed Assets (including revalued assets) are recognized and
charged to Profit and Loss Account in accordance with the Accounting Standard 28
“Impairment of Assets”. However, an impairment loss on a revalued asset is recognized
directly against any revaluation surplus for the asset to the extent that the impairment loss
does not exceed the amount held in the revaluation surplus for that same asset.
REVENUE RECOGNITION
8.1 Income and expenditure are generally accounted for on accrual basis, unless
otherwise stated.

8.2 Income from non-performing assets, Central Government guaranteed assets (where it
is overdue beyond 90 days), dividend income, insurance claims, commission on letters of
credit/ guarantees issued (other than those relating to project finance), income from Banc
assurance products, income from wealth management, additional interest/ overdue
charges on bills purchased, finance charges on credit cards, income on Banks right to
recompense, AMC charges on debit cards are accounted for on realization and Locker
Rent received is accounted on accrual basis.
8.3 In case of overdue foreign bills, interest and other charges are recognized till the date
of crystallization as per FEDAI guidelines.

BALANCE SHEET
AS ON 31ST MARCH 2017 & 31ST MARCH 2018
FORM B
31-03-2017 Capital/liability 31-03-2018 31-03-2017 Assets 31-03-18
50000000 Authorized 500000000 335657645.33 Cash at bank 299701864
capital
364759250 Capital 387783000 2529799364.1 Bank balance 2321786717
5
858702786.88 General Reserve 1064974902 00 Call deposits 00
20000 Subsidiary state 20000 3726548548 Investment 4581189997
partnership fund
15010758913.2 Deposits 16789928233 20000 Subsidiary 20000
state
partnership
fund
1114983200 Out sider loan 2171120000 10622988120 Loan & 13041508737
advances
11542656 Bills payable 2269605 150610949.63 Interest 164129536
receivable
527996 Branch related 43579 11542656 Bills 2269605
deposits receivable
22866661 Reserve for 25028856 160658309.91 Land & 207367231.41
doubtful interest building
73888895.40 Outstanding 55843687 44933006.79 Furniture , 56113269.50
intrest computer, &
motar car
513231169.08 Other liability 544492603.41 473522927.67 Other assets 467417508
85000000 Net profit 100000000
Prospective
liability

31-03-17 rs.
54060265.46
31-03-18
Rs.59173678.90
18056281527.63 TOTAL 21141504466.90 18056281527.63 TOTAL 21141504466.90

Profit & Loss Account for the period from 1/04/2016 to

31/03/2017
Sr. Expenditure Amount Sr Income Amount

No ) No. )
Interest on
1 deposits, 94777712.73 1 Interest and discount 1529578707.06
borrowings etc.
Salaries,
Commission, exchange
2 allowances and 349497227 2 11642784.90
and brokerage
provident fund etc.
Directors and local

Committee
3 1305592 3 Subsidies and donations 0.00
members' fees and
allowances
Income from non-banking

Rent, taxes,
assets and profit from sale
4 insurance, lighting 25819454.78 4 0.00
of or dealing with such
etc.
assets
5 Law charges 464980 5 Other receipts 74685910.25
Postage, telegrams
6 and telephonic 14902534.69
charges
7 Auditor's fees 1817832

Depreciation on
8 and repairs in 24942380
property
Stationery, printing
9 and advertisement 7861371.62
etc.
Loss from sale of

or dealing with
10 0.00
Non-banking
assets
Other expenditure
11 156518900.39
& Provision
12 Balance of profit 85000000
Total 1615907402.21 Total 1615907402.21

Profit & Loss Account for the period from 1/04/2017 to

31/03/2018
Sr. Expenditure Amount Sr Income Amount

No ) No. )
Interest on
1 deposits, 1,02,25,17,870.75 1 Interest and discount 1,75,66,81,619.70
borrowings etc.
Salaries,
allowances and Commission, exchange
2 32,77,96,231.80 2 1,06,70,139.70
provident fund and brokerage
etc.
Directors and
local Committee Subsidies and
3 23,36,171.23 3 0.00
members' fees and donations
allowances
Income from non-

Rent, taxes, banking assets and
4 insurance, lighting 2,05,98,068.40 4 profit from sale of or 0.00
etc. dealing with such
assets
5 Law charges 2,74,051.00 5 Other receipts 6,12,12,884.86
Postage,
6 telegrams and 1,66,87,820.31
telephonic charges

7 Auditor's fees 1388,698.00
Depreciation on
8 and repairs in 3,47,99,849.40
property
Stationery,
9 printing and 66,29,159.78
advertisement etc.
Loss from sale of

or dealing with
10 0.00
Non-banking
assets
Other expenditure
11 28,55,36,723.48
& Provision
12 Balance of profit 10,00,00,000.00
Total 1,82,85,64,644.15 Total 1,82,85,64,644.15

Reserve & other fund

( Rs in lakh)
Sr.no Fund type 31-3-17 31-3-18 Increase/
decrease
1 Reserve fund 1796.18 2055.43 255.25%
2 Doubtful & Baddebth(NPA) 1448.45 1448.45 0.00
3 Doubtful & Baddebth( Rural 2971.60 3011.45 39.85
advance)
4 Other fund 2370.80 4138.42 1767.62
Total fund 8587.03 10649.75 2062.72
DEPOSIT
( Rs in lakh)
Sr.no Deposit type 31-03-17 31-03-18 Increase/
Decrease
1 Firm deposit 20764.67 25726.14 4961.47
2 Jillhaparishad / Grampanchayat 22815.04 22408.60 -406.44
Deposit
3 Personal Deposit 10657.88 119764 13236.66
Total 150107.59 167899.28 17791.69

LOAN FROM OTHERS

Sr. Financial Firm Loan type 31-03-17 31-03-18 Increase/
no decrease
1 Direct from NABARD Short term loan 0.00 5500 5500
(multipurpose)
2 Mahatashtra state co- Short term agriculture 4005 3250 -755
op bank ltd. Medium term agriculture 0.43 0.00 -0.43
Medium term non
agriculture
2591.20
2424.60 5015.80
3 Personal deposit(LTD) Long term personal 1161.29 1857.07 695.78
deposit
4 Firm deposit (LTD) Long term personal 838.71 1142.93 304.22
deposit
Total 11149.83 21711.20 10561.37

THE CASH FLOW STATEMENT

For the year ended 31/03/2017 & 31st March 2018
Particulars Year 2016-17 Year 2017-18
NET PROFIT AS PER P&L ACCOUNT 850.00 1000.00
ADD- DEPRECIATION 112.03 149.57
ADD-LOSS ON SALE OF ASSET 1.80 1.33
LESS-INCOME ON SALE OF ASSETS -0.04 -0.31
LESS-INCOME ON SALE/ACQUISITION OF 0.00 -37.51
LAND
ADD-TRANSFER FROM PREVIOUS 0.00 0.00
PROVISION
WORKING CAPITAL ADJUSTMENTS

DECREASE/INCREASE IN INVESTMENT -11966.77 -5323.47
DECREASE/INCREASE IN LOANS -4223.13 -24185.21
/ADVANCES
DECREASE/INCREASE IN INTREST -414.26 -135.19
RECEIVABLE
DECREASE/INCREASE IN BILLS RECIVABLE -62.05 92.73
DECREASE/INCREASE IN OTHER ASSETS -905.48 -411.14
DECREASE/INCREASE IN DEPOSITS 15323.78 17791.69
DECREASE/INCREASE IN RESERVE 461.60 1555.22
DECREASE/INCREASE BORROWINGS -2926.43 10561.37
DECREASE/INCREASE IN BILLS 62.05 -92.73
COLLECTION
DECREASE/INCREASE BRANCH 4.26 -4.84
ADJUSTMENT

DECREASE/INCREASE IN OVERDUE INT 86.76 21.62

RESERVE
DECREASE/INCREASE IN INTREST -251.27 -180.45
PAYABLE
DECREASE/INCREASE IN OTHER 726.85 312.61
LIABLITIES
CASH GENERATED FROM OPRETING -3120.30 1115.29

ACTIVITIES (A)
CASH FLOW FROM INVESTING ACTIVITIES

PURCHASED FROM FIXED ASSSETS -191.89 -262.02
SALE OF FIXED ASSET 199.41 42.25
CASH GENERATED FROM INVESTING 7.52 -291.11
ACTIVITES (B)
CASH FLOW FROM FINANCING
ACTIVITIES
SHARE CAPITAL ISSUED 263.11 230.24
DIVIDEND PAID -291.63 -324.50
CASH GENERATED FROM FINANCING -28.52 -112.26

ACTIVITES
NET INCREASE IN CASH & CASH -3141.30 783.26

EQUIVALENTS
CASH & CASH EQUIVALENTS AT THE 9134.96 5993.66

BEGING OF THE YEAR
CASH & CASH EQUIVALENTS AT THE 5993.66 6776.92

END OF THE YEAR

NET INCREASE IN CASH & CASH -3141.30 783.26

EQUIVALENTS

NETWORTH
(RS.In Lakhs)
SR NO. YEAR NET WORTH
1 2014 7194.05
2 2015 7490.22
3 2016 8343.83
4 2017 9605.20
5 2018 9669.83
10000
8000
6000
4000
2000
0
2014 2015 2016 2017 2018

DEPOSITS
180000
160000
140000
120000
113713.75
100000
80000
60000
40000
20000
0
2015 2016 2017 2018
(RS. In lakhs)
SR.NO Year Deposits
1 2015 113713,75
2 2016 134783.81
3 2017 150107.59
4 2018 167899.28

LOANS & ADVANCES

(Rs in lakhs)
YEAR
Sr.no LOANS AND ADVANCES
1 2014
78211.64
2 2015
87820.69
3 2016 102006.8
4 2017 106229.88
5 2018
130415.09

TOTAL BUSINESS
(RS IN LAKH)
Sr.no- year Total business
1 2014 191925,39
2 2015 208203.95
3 2016 236790.56
4 2017 266337.47
5 2018 298314.37

WORKING CAPITAL AND INVESTMENT
(RS IN LAKH)
Sr.no YEAR WORKING CAPITAL INVESTMENT
1 2014 141016.34 53877.58
2 2015 139064.65 40524.82
3 2016 163655.62 50959.63
4 2017 177577.09 59926.40
5 2018 208149.23 65249.87

TOTAL INCOME AND EXPENDITURE

(RS IN LAKH)
TOTAL TOTAL
INCOME EXPENDITURE
2014 12591.97 11986.97
2015 13809.98 13199.98
2016 14912.11 14262.11
2017 16159.07 15309.07
2018 18285.65 17285.65

GROSS PROFIT AND NET PR0FIT
(RS IN LAKH)
GROSS NET
PROFIT PROFIT
2014 816.87 605
2015 935.61 610
2016 1292.67 650
2017 1971.82 850
2018 3344.64 1000

TOTAL NPA & NET NPA

(FIGURES IN %)
TOTAL NET
YEAR NPA NPA
2014 3.91% 0%
2015 3.78% 0%
2016 3.16% 0%
2017 3.08% 0%
2018 2.98% 0%

CRAR improvement and share capital mobilization
Bank’s CRAR percentage for last 3 years was as under
Problem of low CRAR
• The increase of share capital depend upon share linking to the loan of Co-operative
societies.
• Bank, has limited scope to disburse loans to co-operative societies
• Bank finances to individuals by nominal membership resulting into low increase in

share capital.

Measures taken to Increase % of CRAR

• Sindhduurg District is small in size and having limited Number of societies. There is no
any Industry in District.
• Bank had taken special efforts to increase coverage of members Resultantly bank share
capital is increased as under.
Measures taken to Increase % of CRAR
• To facilitate raising of capital funds (Tier I and Tier II) for complying with the
prescribed CRAR, RBI vide its letter dated 07/01/2014 had permitted to issue Long Term
(Subordinated) Deposits (LTD) and Innovative Perpetual Debt Instruments (IPDI) with
prior permission of RBI.
• With the Prior sanction from RBI and RCS Bank has raised LTDs of Rs.20.00 Crore
during F.Y. 2016-17 resulted in to percentage of CRAR as on 31/03/2017 was 11.31%.

Diversification of Investment Portfolio

Bank has diverted from the traditional method of investing its excess funds in Fixed
deposits of other banks. We are investing in various profitable avenues of investments.
Since 2012 Bank is investing in Govt. securities and Treasury Bills resulting in 1. To
minimize the risk weightage in order to increase CRAR. (for Deposit 22.5% were as in
Gov. Sec. is 2.5%) 2. To Diversify the Investment Portfolio to minimised risk in
particular segment. 3. To deploy available fund to earn maximum income to increase its
profitability

Steps to Increase Profitability
Interest Rate Revision

•The rate of interest on Deposits & Loans are revised time to time.
 Bank has formed ALCO committee which held meeting on cein every two
months.
•The rate sare first decided in ALCO and then BOD confirm stherates.
•The comparative position of Cost of Fund &Yield on Assets for last 3years is a sunder
Reduction in NPA–
•Every month there view of recovery is taken at Head office.
•NPA identification on „OnGoingbasis‟
•Review of NPA recovery is take nine very monthly BOD meeting.
•Necessary legal action is taken for recovery of critical cases

MOVEMENT OF NPA
SR.NO PARTICULAR 31-03-17 31-03-18
1 NPA at begning of the year 3224.59 3267.17
2 Recovery during the year 1004.59 743.94
3 Addition during the year 1047.17 1367.66
4 NPA at the end of year 3267.17 3890.89
5 NPA provision required 2015.15 2339.36
6 NPA provision actually made 4420.05 4459.90
Increase in Productivity
• Branch wise targets for Deposit Mobilization and Loan disbursement are set
• Review is taken on taluka bases every month by Manager and quarterly review of all
staff is taken by CEO.

• Bank made teller made loan scheme
• Nivas Nyahari Yojana for tourism,
• Baliraja Education loan scheme for farmer‟s child
• Wider publicity is given through FLC, Exhibition camp, Local news papers, Local T.V.
channels etc.
• Bank has increase micro Business by delegating Loan sanctioning powers to BM.
• BM can Sanction loan for Car up to Rs.15 lacs .

Position of Productivity for last 3 years is as

under – (Rs in Lakh)
Profitability for last 5 years –
Comparative position of profitability for last 5years

Financial Position

Milestones achieved by the Bank

The bank had made a remarkable progress in financial as well as technology sector.
Business Diversification –
• Instead of concentrating on financing „On lending‟ basis, bank has diversified its loans
portfolio and entered into retail banking granting direct loans to individuals.
• At present out of the total loans more than 60% loans are granted to individuals
•Investment of surplus fund in different types

of investments.
in Government Securities of GoI and State Development Loans since 2012.
2016-17, bank has earned profit of Rs.437.93 Lakhs from Government Securities
trading.
in Treasury Bills,Cash Management Bills, Callmoney,Mutualfundsetc.
•31 branches are working as PAN Service Centre.
•Safe Deposit Locker facility throug various 23 branches

CBS Implementation and Adoption of Banking

Technology-
•Implemented CBS Project in 2012 establishing its own ISR data center with own staff .
•Implemented new concepts of banking like ABB,IBT,NEFT/RTGS,ATM Centers etc.
•Implemented new concepts of modern banking since November 2015 likee-

banking,POS,IMPS,Mobile App
Goals achieved by the Bank
• Sindhudurg Bank Mobile App
• IMPS fund transfer (P2A)
• RTGS/NEFT fund transfer
• EMV-RuPay ATM cum DEBIT CARD
• EMV- Kisan Credit Card
• POS-Issuer service
• Miss call alert service for balance enquiry
• DBTL/APB and other subsidy transfer
• BNA – For cash deposit
• Mobile ATM Van
• IRCTC Railway ticket booking & Mobile, DTH Recharge through Pay point service

Direct Membership under CPS of RBI –

• Bank has availed Direct Membership („A‟ Class) for RTGS/NEFT under Centralised
payment system of RESERVE BANK OF INDIA. in the year 2016.
Aadhar enrolment facility –
• First DCCB who is empanelled with UIDAI to provide Aadhar enrolment fFacility to
people. Bank has enrolled near about 2.5 Lacs Aadhar enrollment through its own
Aadhaar centers.
ATM centers –
• Bank has 38 ATM centers throughout the district.

CCIL membership –
• Received CCIL Direct membership for the Security Segment

Bank‟s own Training Centre –
• Training Centre at Kudal. Bank has conducting various training programmes for its
employees and customers as well as for other cooperative societies staff and workers.

Computerisation of PACs –
• For computerisation of PACs bank has granted interest free loan to PACs from its own
funds. Necessary Technical aid also provided to PACs wherever required. (Out of 226
PACs, 92 PACs are computerised )
Reduction in Imbalance -
• Bank granted interest free loan to PACs up to Rs.10 lacs to reduces imbalances (In last
10 year no. of societies in imbalance reduces from 25 to 2)
Implementation of UPNRM Project
Umbrella Programme on Natural Resource Management (UPNRM) is a joint project

successfully implemented by the Bank and Bhagirath Prathistan (NGO) in India

Awards Received to the Bank

•„VainkunthMehataBest Performance‟ 1strank Award from Maharashtra State Co-op Banks
Association. (2004-05, 2005-06, 2016-17)
•„VikasRatna‟ award from All India Business Association, New Delhi (2008-09)
•„Best Compliance of Financial Parameters‟ award from Maharashtra State Co-op Bank
(2007-08 , 2008-09, 2009-10)
•BANCO Award (2012-13, 2015-16, 2016-17)
•„Best Implementation of SGSY Scheme‟awardfrom Maharashtra State Govt. (2010-11)
•„SahakarNishtha” award from Maharashtra State Govt. Co-opDepartment (2013-14)
•„Best Data CenterUpgradation‟,‟Best acquier ATM Transaction‟ & „Best C.E.O‟ award
from F.C.B.A. (2015-16)
•„Best e-payments-Phase 2‟, „Leadership Award-Best IT Head‟ award from F.C.B.A. (2016-17)

CHAPTER-5
CONCLUSION & RECOMMENDATIONS

The objective of this chapter is to present briefly the conclusions and suggestions
arrived at after the analysis of the data collected for this study.The present study is
attemped to evaluate the roll of SDCC in the Development of Co-operative Movement in
Sindhudurga
The study at Sindudurga District central Co-operative Bank gave a vast learning
experience to me and has helped to enhance my knowledge. During the study I learnt
how the theoretical financial analysis aspects are used in practice during the working
capital finance assessment. I have realized during my project that a credit analyst must
own multi-disciplinary talents like financial, technical as well as legal .
 Sindhudurga district central co-op bank gives us various products of Banking.

 Financial position of Sindhudurga district is good. Its increasing day by day.
 We can see Productivity ratio of bank is increases.
Total income ,Gross profit,Net Profit of SDCC is increased and Total expenses is
decreaed at last 5 years.
SDCC play importanant role for Devlopment of Sindhudurga.
SDCC Serve Various Deposit ,loan products & Various Agricultural credits to
the people of Sindhudurga District .
Financial Satatements like profit and loss satetment , balalnce sheet of SDCC
show us growth of SDCC .

Conclusions:-
•The bank should therefore look forward to promote investment opportunities
during their visit through banners, leaflets and pamphlets, etc. and increase the
awareness levels.
• The Bank must take strong steps in promoting the investment option and
generate desire and interest towards the products. A complete new market strategy
needs to be formulated.
• Firstly, the Bank should target the existing customer base investment plan and
try to increase their awareness levels. Then they should make the other customers
of the bank at least aware of the various schemes so that the next stage of interest,
desire and action becomes easy to execute.
• It was surprising to note that some of the respondents having account in SDCC
Bank had investment in nearest rival Bank of India. Corporation should take stern
steps to channelize the investment towards itself. The corporation should also
work on the factors, which lead to investment in other banks.
• Location and loyalty towards the old banks were the key factors for this
particular behaviour. The corporation therefore should give a serious thought to
these aspects and try to provide service, which can somehow make a dent in the
loyalty and more trust towards the state owned banks.
• Bank should look to open new branches with proper planning and careful
selection of the location, which is convenient to the target customers especially in
places where there are a lot of option in front of the consumers.
• Advertisement play an important part in the brand recall of the corporation
therefore, bank should look to create a campaign, which provides the consumers
with the basic knowledge and general attraction towards the products offered.
Co-operative Bank should look to tap the untapped market and increase their
market share. It is very surprising that in spite of the high satisfaction levels of the
current customer base the market share of the bank is stagnant. This shows a lack
of hard-core brand loyal customers. Efforts should be made to lead the consumers
to this level of loyalty so that more strong work-of-mouth should be there.

SUGGESTIONS
I offer the following suggestions for further improvement in the performance of the
SDCC Bank so as to suit at level best as an efficient Leader Bank of the co-operative
movement in Sindhudurga District.
1.The Board of Directors constitutes the central pillar of management of the co-operative
banks. So it is better to have the mixture of both old and young Directors in the Board by
ratio fifty-fifty as the old provides experience and young injects dynamism. While
selecting the members for elections, the co-operators should take this rule in the interest
of co-operative movement. Similarly, no person can be elected after two terms (ten years)
of Directorship.
This condition can be included in the Bye-laws of the Bank. This will reduce the
unhealthy competition and also it will allow the new co-operators in the Board of
Directors.
2.Each and every employee should bring certain amount of deposits in the Bank. At the
same time they should make the loan business of certain amount to bring the income at
least equal to their total annual salary.
3.The employees of the Bank should work not between 11 to 6 hours but they should
work 9 to 6 hours allowing their more time for the working of Bank. The HDFC Bank,
the ICICI Bank, the UTI Bank have followed this practice. Further, some of the branches
in the urban area should be kept open even up to 10 p.m. at night. This will help to get the
profit to the Bank

4.The different schemes of the deposits should be made known to the public. The
management should give wide and house to house publicity in rural areas of the district
through various Medias about its deposits schemes. The deposit mobilization camps
should be conducted. Depending heavily on external borrowings is not a healthy sign.
5.The Bank should take efforts to develop agricultural practices in the district. The
amount of agricultural loan in the total loan amount seems very less. With a view to
increasing the loan for agricultural sector, first of all land leveling, irrigation should be
done by the farmers. Thus land improvement and land development loans should be
given by the Bank.
6.The training of farmers for agricultural practices, training of fishermen for viable
fishing, processing and marketing needs to taken by the SDCC Bank. So that the demand
for loan from these sectors will increase.
7.The SDCC Bank should make an arrangement of co-operative training to their
employees, training to the Board of Directors and Chairmen of the member societies
about the principles and values, ethics in co-operatives. This will help to bring high moral
among the co-operators. At present the general public and even the members are
regarding co-operatives as charitable institutions, hence, the members should be made
aware that the co-operatives are first Commercial Organizations and hence they should
first think of their own viability.
8. The banking practices need to be upgraded.
9. These banks should be linked with commercial banks on the basis of certain
understanding in the respect of interest charged from the borrowers, the verification of

the same by the commercial banks and the passing of the concessions to the priority
sectors etc.
10. Encouraging them to avail of certain facilities from the banking system, including the
RBI.
11. Bank should provide Lockers facility to their customers at all their braches.
12. Bank should provide Dmat accounts facility to their customers.

CHAPTER-6
BIBLIOGRAPHY

Websites:-
http://www.sindhudurgdcc.com
www.google.com
ttps://en.wikipedia.org/wiki/Cooperative_banking
https://blog.ipleaders.in/co-operative-banking/
https://www.esds.co.in/sindhudurg-dccb-case-study
Books:-
 Co operative Banking & Credit Societes- A.T. Vaze for Government
Diploma in Co operation & Accountancy.
 History, Principles and Management in co operation – Prof.Kulkarni, Amol
Mahabal, Arindam Haldar.- for Government Diploma in Co operation &
Accountancy.
 Research Methodology for Business MCom Part-1 Sem II Michael Vaz,
Arora Vaz, Manan Prakashan.

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A Project Report

A Study of Sindhudurg District Central

Under the guidance of

Prof. Ms. M. S. Sawant

I hereby declare that, the Research Project entitled “A Study of Sindhudurg

Place-Kankavli. Mr.Pralhad Mahanand Satvilkar

Prof. Ms. M. S. Sawant External Examiner

Mr. P. M. Satvilkar-Kankavli College–Kankavli (Dec. 2018) Page 2

This is to certify that the Project Report entitled “A Study of Sindhudurg

Place-Kankavli. Mr.Pralhad Mahanand Satvilkar

Prof. Ms. M. S. Sawant External Examiner

Mr. P. M. Satvilkar-Kankavli College–Kankavli (Dec. 2018) Page 3

It gives me a great pleasure to express my sense of gratitude to the Honorable

It gives me a great pleasure to express my feeling of gratitude to

Place-Kankavli. Mr.Pralhad Mahanand Satvilkar

Mr. P. M. Satvilkar-Kankavli College–Kankavli (Dec. 2018) Page 4

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1.1-Introduction, History and Origin of

Sindhudurg District Central Co-Op Bank Ltd. Sindhudurg is established on 1st

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1.2 Objectives of the Study:-

1. To study the functioning of Sindhudurg District Central Co-Op Bank Ltd.

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1.3:- Research Problem:-

national income is being contributed by export of agro-based produces substantiates this

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Cooperative Banks as a result of which there is an increasing competition, etc. Moreover

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1.4 Research Methodology:-

SOURCES OF DATA COLLECTION:-

Primary data is more accommodating as it shows latest information.

b) How many Computers are there?

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c) What are the functions for which computers are used?

d) Whether computer personnel are trained?

e) Where were they trained?

7. Owned Building: (i) Yes (ii) No

8. What is your Employees Recruitment procedure?

10. Did the Bank conduct any Training Programmes?

(a) Name of the Training

(b) Nature of the Training

(c) Duration and Year

12. How the lending rate is decided?

13. What are the reasons for NPA?

14. Details of the Board of Directors:

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A Brief Review of Earlier Studies:-

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Websites and books for reference as below:-

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An Overview of CoOperative Bank:-

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Long-term agriculture credit is provided by the Land Development Banks. The

Features of Cooperative banks:-

· These banks are government sponsored government supported and government

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· Cooperative banks are financial intermediaries only, particularly because a

Three tier structures exist in the cooperative banking:

i. State cooperative bank at the apex level.