The SUTEX Co-operative Bank

Ch:1 Industry Profile

1.1 1.2 1.3 1.4 1.5 HISTORY OF INDIAN BANKING INDIAN BANKING SYSTEM CO-OPERATIVE BANKING DEFINITION & OBJECTIVE PRINCIPLES OF CO-OPERATIVE BANKS FEATURES OF CO-OPERATIVE BANKS

1 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

1.1 Hisrory of Indian Banking

Since the banking activities were started in different periods in different countries there is no unanimous view regarding the origin of the word bank. The word bank is said to have derived from the French word Blanco or Basque which means a bench. In fact the early jews in Lombardy transacted their banking business by sitting on benches when their business failed. The benches were broken and hence the word bankrupt came into vogue but, Macleod in his book Theory and practice of banking has expressed in different view. According to him the moneycharges were never called Bunchier in the middle ages. So, this derivation may be a mere conjucture. Another common held view is that the word back which means a joint stock fund off course a bank essentially deals with fund. In due course it was Italianized in to Blanco franchised in to bank and finally analyzed in to bank. This view is most prevalent even today. The Indian Banking system has grown considerably in stature recent years, on geographical as well as functional basics, the increasing monetization of the economy with the spread of the banking habit in new areas and the anxiety of the centre and state governments to extend cheaper organized credit to the weaker section of the society have made it possible to use the facilities at the disposal of scheduled commercial banks to meet short term credit retirements on the scale larger than ever before. The first bank in india through conservative was established from 1786 till today, the journey Indian Banking system can be segregated in to three distinct phase they are as mentioned below.

1.2 Indian Banking System

In Indian banking system can be roughly classified into three broad categories viz; 1. Commercial Banking Sector 2. Development Banking Sector 3. Co-operative Banking Sector

2 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

1. Commercial Banking Sector Today the commercial banking system in india may be distinguised into: Public Sector Banks State Bank of India and its associate banks called the State Bank Group 20 Nationalized Banks Regional Rural Banks mainly sponsored by Public Sector Banks Private Sector Banks Old generation private Banks New generation private Banks Foreign Banks in india Scheduled Co-operative Banks Non-Scheduled Co-operative Banks 2. Development banking Sector

Industrial Finance Corporation of India (IFCI) Industrial Development Bank of India (IDBI) Industrial Credit and Investment Corporation of India (ICICI) Industrial Investment Bank of India (IIBI) Small Industries Development Bank of India (SIDBI) National Banks for Agriculture and Rural Development (NABARD) Export Import Bank of India (EXIM) 3. Co-operative Banking Sector The Co-operative Banking sector has been developed in the country to the supplement the village money lender. The Co-operative Banking sector in India is divided into four components (Co-operative, Private, Foreign and Nationalize) State Co-operative Banks Urban Co-operative Banks Primary Agriculture Credit Societies Land Development Banks Primary Agriculture Development Banks Primary Land Development Banks State Land Development Banks
3 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

1.3 Co-operative Banking Definition and Objectives:Definition:Mr. Devine in his book Peoples Co-operative banks, defended a co-operative bank, as A mutual society formed, composed and governed by working people themselves, for encouraging regular saving and grating small loans on easy terms of interest and repayment. N. Barou in his book Co-operative Banking defined a Co-operative bank as a bank formed by Co-operative and labour organization for the purpose of accumulating their collective fund and the savings of their individual members; it manages their financial interests, grants credit to Co-operative and labour enterprises, and helps to satisfy the needs for personal credit of their individual members; the bank surpluses are distributed between shareholders, depositors, and borrowers or placed to reserves.

Objectives of Co-operative banks:The American Co-operator Herbert Myrick in his book Co-operative Finance mentioned the following purposes of Co-operative banks: To induce the people to join it as members and shareholders, if only in a small way labour or effort. To encourage them to save money and deposit their saving in their own bank - capital accumulated. To safety loan these savings and the banks credit to the banks member or customers within the local territory of the bank, for wisely productive purposes wise-use. To enable the people themselves to create efficient management of their bank.

1.4 Co-operative Principles:The Co-operative Bank Principles are guidelines by which Co-operative put their values into practice: Voluntary and open Membership: Co-operatives Banks are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination. Democratic Member Control: Co-operative Banks are democratic organizations controlled by their members, who actively participate in setting their policies and making
4 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

decision, men and women serving as elected. Member representatives are accountable to the membership. In primary co-operatives members have equal voting right (one member, one vote) and co-operative at other levels are organized in a democratic manner. Member Economic Participation: Members Contribute equitably to and democratically control the capital of their co-operative. At least part of the capital is usually the common property of the co-operative. Members usually receive limited compensation, if any, on capital subscribed as condition of membership. Members allocated surpluses for any of the following purposes: developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible, benefiting members in proportions to their transactions with the co-operative, and supporting other activities approved by the membership. Autonomy and Independence: Co-operatives Banks are autonomous, self-help organizations controlled by their members. If they either into agreements with other organizations, includes governments to raise capital from external sources, they do so in terms that ensure democratic control by their members and maintain their co-operative autonomy. Education, Training and Information: Co-operatives Banks provide Education and Training for their members, elected representatives, managers and employees so that they can contribute effectively to the development of their Co-operatives. They inform the general public particularly young people and opinion leaders about the nature and benefit of Co-operation. Co-operation among Co-operatives: Co-operatives Banks serve their members most effectively and strengthen the Co-operative movement by working together through local, national, regional and international structures.

1.5 Features of Co-operative Banks: Co-operative banks are organized and managed on the principle of co-operation self-help, and mutual help. They function with the rule of one member, one vote. Function on no profit no loss basis. Co-operative banks, as a principle, do not pursue the goal of profit maximization. A co-operative bank performs all the main banking functions of deposit mobilization, supply of credit and provision of remittance facilities. Co-operative banks provide limited banking products and are functionally specialist in agriculture related products. However, co-operative banks now provide housing loans also.
5 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

UCBs (Urban Co-operative banks) provide working capital loans term loan as well. Co-operative banks do banking business mainly in the agriculture and rural sector. Co-operative banks belong to the money market as well as to the capital market. Primary agricultural credit societies provide shot term and medium term loans.

6 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

Ch-2 Company Profile

2.1 2.2 2.3 2.4 2.5 2.6

INTRODUCTION VISION MANAGEMENT PROFILE BRANCHES ORGANIZATION CHART SERVICES

7 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

2.1 Introduction Of Bank:The Sutex Co-operative Bank Ltd. has started on 15th may 1972. Bank has Registered No. as per Gujarat Sate Co-op Act. S/5033 on 15th may 1972, and Multi State Co-op Act. MSCS/CR/8099.on 8th February 1999. With the help of Mr. Surajram Hiralal Bachakaniwala, Mr. Jyotindra Bhagwandas Lekhadiya and other Director Member at Surat Textile Market. The bank is last 38 year to provide services in various areas. The bank has thirteen Branches and one Administrative office. Bank used Tragologist Software and Wipro Hardware, the bank daily working cabol program. The Bank slogan is HELPS YOU LIVE BETTER. The bank has thirteen Branches, one Administrative office and three ATM service available to customer in various areas. In 2000-01 year to open a new branch at Salabatpura this branch is good working condition in very short period. The bank has 218 employers to give training at Administrative office and 36 employers to other bank branches in previous year. The Bank Information technology of working in LAN (Local Area Network) system at all branches. The Bank is good facility to provide Senior Citizen in Fixed Deposit. The facility is 1% more interest on Fixed Deposit. The Bank is Economical, Social, Educational, and Medical activity with go ahead in Surat city and Surat District. Bank has provided donation in year 2010-2011 in various Economical and Social activities. The bank has received Audit Class A, in last 31 year; it is a great achievement of the Bank. The Bank provided 15% dividend to share holders as per profit. The Bank start with 272 shareholder and today shareholder member is 23,362. The Bank started with Rs. 5.25 lakh Working Capital and today is 338.20 Cr. The following member of the Bank team at Katargam Branch at the has played an important role in shaping my training by making this venture a purposeful and an educative one.

Name
Mr. C.M. Parmar Mr. Niranjan I. Bhatt Mr. S. R. Shah Mr. H. B. Shinde Mr. R. R. Desai Mr. G. D. Pandya Mr. J. S. Rana Mr. D. M. Keriwala Mr. B. K. Patel Mr. D. H. Jani Mr. P. M. Suran

Position
Branch Manager Manager Function Officer Officer Clerk Clerk Clerk Clerk Clerk Sepoy Sepoy
8

Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

2.2 Vision
The bank aims to double its business in next 5 years. Expansion plan is there for opening of 3 more branches in prime locations of the city. Main focus is to cover the areas which are not covered by adequate banking facilities. The adoption of all modern technologies for better service will be priority of the bank in future. The environment of all the branches will match an international standard. Bank is poised to move towards needs based and behavior based segmentation in the next few years. Recounting that the number of mobile phone users is increasing day by day, bank has already started services of mobile banking and will shortly commence net banking. The bank will expand its horizons beyond the traditional banking products and enter into newer ventures to increase its bottom line combines with cost rationalization. In summary, bank will spotlight on customer service as well as satisfaction across all channels.

2.3 Management Team

The Sutex Co-operative Bank Ltd. has 15 directors this name as follows: -

Board of Directors Name

Mr. Kamalvijay Tulsyan Mr. Nirmalkumar Vakhariya Mr. Ravindrabhai Mr. Prabhatsinh Solanki Mr. Nimeshbhai Bachakaniwala Mr. Jyotindrabhai Lekhadiya Mr. Chaturlal Singapuri Mr. Manaharlal Bachakaniwala Mr. Hashmukhlal Misti Mr. Sharadbhai Kapadiya Mr. Raj Kapadiya Mr. Arunbhai Kanodiya Mr. Kartik Hathiwala Mr. Asvin Desai Mr. Jitendra Nayak Mr. J. B. Shinde Mr. K. T. Wadia Chairman Vice-chairman Hon. Director Hon. Director Hon. Director Director Director Director Director Director Director Director Director Director Director C. E. O. Senior Manager
9 Prof. V. B. Shah Institute of Management

Position

The SUTEX Co-operative Bank

2.4 Branches:-

Branch Head Office Textile Market Athawalines Station Parvat patia Gopipura Sachin Katargam City light Rander Salabatpura Varachha Pandesara Sahara Darwaja

Location Pashvanath Comlex, Udhana-Mug. Road Surat Textile Market, Ring Road Anjana Shalakha Medhani Mention Surbhi complex Subhash Chowk G.I.D.C. G.I.D.C. Hirapanna Shopping Centre Nr. Ashirwad Society Piperdi Sheri Shreyas Diamond Centre Keval Commercial Complex N.T.M. Market

Ph.No. 0261-2634702 0261-2343947 0261-2254568 0261-2402736 0261-2641495 0261-2593463 0261-2397954 0261-2407876 0261-2256444 0261-2781989 0261-2365608 0261-2542022 0261-2894025 0261-2343940

10 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

2.5 Organizational Chart:Chairman

Vice Chairman

Secretary

Chief Executive officer

Personnel Manager

Manager

Officer

Clerk

Peon & other staff

11 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

2.6 Services: Any Branch Service :Customer can transact his/her account from any branches of the bank like cash receipt, payment, transfer, balance enquiry, statement/passbook printing, deposit outward clearing etc. E-Payment Facility:Bank has started E-payment facility for the customers of the bank for the purpose of payment of Income-tax. RTGS/NEFT Facility:Real Time Gross Settlement/National Electronic Fund Transfer facility available to the customer of the bank. By this facility customer can transfer his balance throughout India of any bank, which is member of RTGS/NEFT. VAT Machine:VAT machine is available to the all branches of the bank in the banks customer passage. With the help of VAT machine customer can view various details of his/her A/c. like Balance, Statement etc. For avail this facility customer should have registered his account with bank and get his/her passwords from the banks officials. Stamp Franking Service:Bank has Franking machine under license from Government for stamping of Adhesive Stamp arranged with Revenue Department of Gujarat State at Gandhinagar. And this service is provided at the Administrative office and Athawalines branch. General Insurance:We have tie up General Insurance business with DICGC (Deposit Insurance and Credit Guaranty Corporation) as a Bank Assuarance.

12 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

Ch-3 Daily Activities of Bank

3.1 SERVICE SECTOR 3.2 DRAFF DEPARTMENT 3.3 CLEARING DEPARTMENT 3.4 TRANSFER DEPARTMENT 3.5 TOKEN DEPARTMENT 3.6 CASH DEPARTMENT 3.7 DEPOSITE DEPARTMENT 3.8 SHARE HOLDER DEPARTMENT 3.9 LOAN DEPARTMRENT 3.10 PROVIDE FACILITY

13 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

3.1 SERVICE SECTOR: In the banking sector, there is no production of any goods so we take the production department as a service department. One of the mega trends of recent yours has been the phenomenal growth of service. Service industries are quite varied. The government sector, the private non-profit sector, the business sector and manufacturing sector are really the service providers.

Meaning: A service is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. It production may or may not be tied to a physical product. Different types of services industries are as follows: 1. Government Sector: - With its courts, fire and police departments, hospitals, employment services etc. are in the service business. 2. Private Non-profit Sector: - It includes museums; Charities, Colleges, foundations and hospitals are in the service business. 3. Business Sector: - Which include airlines, Banks, hotels, insurance companies, law firms, management consulting firms, real estate firms are in service business. 4. Manufacturing Sector: - Many workers such as computer operators, accountants, legal staff are really service providers. Infect, they make up a Service factory providing service to the goods factory.

3.2 DRAFT DEPARTMENT: The first Department is Draft Department. The Customer makes a Draft in various cities such nominal commission of issue Draft. They want to proper cities in India. Draft issue by transfer up to Rs. 100,000/- 15paise commission per thousand and above Rs. 100,000/-then 10paise commission per thousand payable to Bank. If issuing Draft by Cash then, up to Rs.
14 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

100,000/- 20paise commission per thousand and above RS. 100,000/- will be same commission payable to Bank. Bank will issue following Bankers Draft. The Sutex Co-operative Bank Ltd. Connection with HDFC and Induslnd Bank wherever Branches in India of the Bank issued Draft.

3.3 CLEARING DEPARTMENT: Clearing Department is important and busy department. The working hour of The Sutex Co-operative Bank Ltd. from Monday to Friday up to 11:00 am to 3:00 pm, and Saturday 11:00 am to 1:00 pm. It is benefit to customer other banks Cheque to deposit in own bank. The clearing is 50 lacs to 60 lacs per day in Sutex Bank at Katargam Branch. In clearing department two type of Cheque MICR Cheque and Non-MICR Cheque. The Non MICR Cheque is deposit on bank only Wednesday. MICR (Magnetic Ink Character Reader) Cheque is all day deposit in bank. If parties pay Cheque to other parties then this Cheque is return then the debited Rs. 25/- in parties account.

MICR Cheque use given instruction to the Clearing Department as below: The Cheque is before six month is not valid in clearing and after date is also not valid. Do not rubber stamp below code line. Do not Stick line on Code line and do not use Stapler pin for sticking Cheque, Draft with slip. Deposit Cheque return and then this Cheque is deposited other bank then the first bank clearing stamp cancellation stamp and authorized sign, than after these Cheque is deposited other Bank. Order Cheque and uncrossed Cheque thats way, pay name on behind Cheque written it is called first endorsement and second party to deposit Cheque in their bank, parties stamp and signed to require.

3.4 TRANSFER DEPARTMENT: Another Department is Transfer Department. The Transfer of two types Inter Branch Transfer and Inter Account Transfer. In this department Cheques transfer Branch and Account. The other Branch Cheque to deposit other branch customer and in your branch to pass is called Inter Branch Transfer. In Sutex Bank one facility to provide Inter branch transfer on
15 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

server, if the other parties A/c. balance is credited then the Cheque is passed in same day, rather than third cay. The account Transfer is one account to another account, in this transfer one account Debit and one account is Credit in same day. In The Sutex Co-operative Bank has 13 Branches, so the number of transfer of Inter Branch and number of Account Transfer per day. The transfer is good facility provide by bank to customer. Transfer department-working time from same as clearing time in The Sutex Co-operative Bank.

3.5 TOKEN DEPARTMENT: The other department is Token Department. This department is very small and risky department. The working hours of this department is form Monday to Friday 11:15 am to 3:00 pm. and Saturday 11:15am to 1:00pm. The token is issued after strictest Verification of Cheque such as Signature, amount in words as well as figure, Cheque date etc. The work of this department is direct withdrawal cash in Bank. In this department some limit to withdrawal amount in saving a/c, and no limit in current a/c per day. In saving A/c per day withdrawal amount is one lace to two laces.

3.6 CASH DEPARTMENT: The next department of Bank is Cash department. In this department two type of work, i.e. Cash Receipt and Cash Payment. The Receive the cash by customer and credited in your account is known as Cash Receipt. And the other part is Cash Payment. The customer to pay by Cheque is known as Cash Payment. The Total Cash handled by Head Office, at Udhana-mugdalla Road , Surat. The Daily Cash position to require to Head Office at the end of day. If the Cash is not maintained at end of day then the cash receive to Head Office. If the Cash is more then limit the Cash paid to Head Office.

16 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

The Cash department is most important department in the bank. The Cash department is more risky then the other department. In Current Account Unlimited Cash Transaction to maintain per day. But in Saving Account limited Cash transaction to maintain by Bank. The time for this department is From Monday to Friday 11:00am to 3.:00 pm and Saturday 11.:00am to 1:00pm. In this department withdrawal amount is only written in Cheque. The Cash department is small department but very most important and risky department. The Cash Position of the day is maintaining the Closing balance and amount in put the computer is same.

3.7 DEPOSIT DEPARTMENT: -

The other department is Deposit department. In this department the customer deposited in bank in two ways like Fixed Deposit and Recurring Deposit, to provide customer by Bank.

In FIXED DEPOSIT department the customer deposit fixed amount in fixed period. This amount is withdrawal is maturity date, but the customer to desire amount than they withdrawal amount will be 1% less interest with discounted rate. Fixed deposits payable after maturity dates the payable amount is either cash if amount is less than Rs. 20,000/- or pay order if amount is above Rs. 20,000/- or credited to customer account. The various scheme in fixed deposit as follows: Short term Star MIP Re-Investment Normal FDR-2 60 Plus scheme In SHORT TERM deposit period is less than one year. The rate of Interest is @ of 4%. In STAR deposit maturity period is 46 days. In this deposit automatic renew after 46 days.

17 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

MIP scheme is monthly interest payable, the interest is payable at discounted rate. The interest is payable is either cash or customer account credit according to customer instruction. The other deposit is RE-INVESTMENT in this deposit is interest payable on deposit is compound. Compound interests calculate after fifteen month than after three months Period. The next scheme is NORMAL deposit. The Normal deposit is ordinary deposit; this deposit period is more than one year. If the customer wants to interest receive, than they receive after three month either cash or account credit according to customer instruction. Another scheme is FDR-2 also called Fixed Deposit Re-Investment. In this scheme the amount is doubled, the amount is doubled after 99 month and Senior Citizen 90 months. Next deposit scheme is 60 PLUS also called FABULOUS SCHEME. This scheme allowed only Senior Citizens. Under the scheme you can increase your earnings by investing with "The Sutex Co-operative Bank Ltd." Additional benefits available to you, monthly interest earning automatic credit to your savings bank account and at home service for depositing getting fixed deposit receipt on request. And other benefit is automatic credit to the Nominees account. Entitlement to earn 1% more on your saving Bank Account (@ 5% per annum) The rates of interest on deposit are as under: -

Sr. No. 1

Types of Deposit Savings Bank Accounts FIXED DEPOSIT

Rate of Interest 4%

2 3 4 5 6 7 8

Up to 15 to 30 Days 46 Days (Star Deposit) Up to 31 to 180 Days Up to 181 days to 1 Years Up to 1 to 2 Years Above 2 Years Double 99 Months MIP (According to Discounted Rate)

4.00% 4.00% 6.00% 7.00% 7.50% 8.50% 8.50%

3 to above 3 Years

8.50%
18

Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

RECURRING DEPOSIT 10 11 12 Up to 1 Years 1 to 2 Years Above 2 Years 7.00% 7.50% 8.50%

Senior Citizens on Fixed Deposit to 1% More Interest to the period of Above 1 Years.

3.8 SHARE HOLDERS DEPARTMENT: -

The next department is Share Holder department. The Share Holder department is in Administrative Office in Sutex Co-operative Bank. The Bank has made a shareholder against loan and Rs. 50,000/- fixed deposit entries purpose will necessary procedure. The price of share is Rs. 100/- per share. The shareholder member in year 2001-2002 is 11,481 and todays shareholders member is 20,540. The bank issued shareholders dividend 15% as per profit in last three year.

3.9 LOAN DEPARTMENT: -

The other department is Loan Department. The Loan facility is providing good facility to customer by Bank. If the customer wants to a Loan from bank than the desire to shareholder in bank and open account in any branch in The Sutex Co-operative Bank. The Loan provide to customer on grantee to granted person to related bank. The Loan provide to customer by Loan department and Directors meeting propose than after the Loan is passed and issued customer. The Sutex Co-operative Bank Ltd is providing various Loans to customer. The method of interest calculation on reducing balance methods. Not required to pay any penalty for premature repayment of the loan, it is great achievement of customer. The provides loan before to collect one promissory note. In these note for security bank to pay customer loan in with in period. The bank providing various loan scheme are as bellow: -

Vehicle Loan Machinery Loan Education Loan

19 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

Consumer Loan Staff Loan Finance for Profession person Housing Loan Fixed Deposit Loan Factory Shade Loan
3.10 PROVIDE FACILITY: -

The bank provides two-type facility like ATM Facility and Locker Facility. The ATM (Automatic Tailor Machine) facility is started 1st November 1990 at Rander Road Branch. The ATM facility provide at Rander Road Branch, City Light Road Branch and Athwalines Road Branch. In this facility to provide customer 24 hours in 365 days. The Locker Facility is one type of deposit. The Locker facility is started 4th April 1990 at Gopipura Branch. The Locker facility provide at Gopipura Branch, Katargam Branch, Rander Road Branch, Udhana Magadlla Branch, Athwalinse Branch, Parvat Patiya Branch, City Light Branch and Salabatpura Branch. The Locker is open than the saving account also open and contract on Rs. 50/- adhesive stamp. The locker key deposit is Rs. 1500/- is refundable. The locker box rent and deposit is different, according to size. The deposit is refundable and rent pay 5-year advance. The rent and deposit table as follows: Type A D C G F K Rent 500/1000/1200/1500/1800/2000/Deposit 5,000/7,500/10,000/12,000/15,000/20,000/-

20 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

Ch:-4 Finance Department

4.1 Introduction of Finance 4.2 Working Capital 4.3 Capital Structure 4.4 Profit & Loss A/c 4.5 Balance sheet 4.6 Ratio Analysis

21 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank Introduction of Finance:-

According to Husband & Dockery Finance may be said to be circulatory system of economic body, making possible the needed Co-operation between many units of activity. Finance is required to purchase expensive machinery and also day-to-day expenses on raw material, labour, operation and administrative need of business. Financial Management is concerned with the effective use of an important economic resource, namely capital funds. According to Phillippatus, Financial Management is concerned with the managerial decision that result in the acquisition & financing of long term and short term credits for the require selection of specific assets, the selection of specific liability as well as the problem of growth of enterprise. The analyses of these decision are based on the expected in flow & out flow of funds and their effects upon managerial objectives. In finance all activity of finance like, Profit Maximization Approach, Wealth Maximization Approach of customer or Share Holder, finance related activity with Economics, Accounting and Other Disciplines, etc. to satisfied then the finance is better of business.

4.1 working Capital: There are mainly two concepts of Working Capital like, Gross Working Capital and Net Working Capital. (1) Gross Working Capital: According to Gross concept of working capital refers to organizations investment in total current assets viz., cash marketable securities, inventory, etc. It is also known as circulating capital. (2) Net Working Capital: According to net concept, Net Working Capital refers to the difference between current assets and current liability. Factor Affecting of Working Capital: The factor affecting of working capital as under: Nature of Business. Volume of Business.
22 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

Terms of payment & Receipt Business Cycle. Availability of Funds. Financial Efficiency. Dividend Payout Ratio. Seasonal Demand. Profitability of Investment. Length of operating cycle. Tax structure. Size of Business or firm. Environmental factor.

4.2 Capital Structures: The Capital Structure figure is last three year. And year 2003s figure is unaudited. Particular 2009 Members Share Capital Total Deposits Total Advance Working Capital Net Profit Investment Reserve funds Audit class Dividend 21,024 13.90 (Cr) 423 (Cr) 260 (Cr) 493.64 (Cr) 5.11 (Cr) 63.10 (Cr) 41.38 (Cr) A 15% Year 2010 22,452 17.32 (Cr) 523 (Cr) 320 (Cr) 596.64 (Cr) 6.21 (Cr) 111.59 (Cr) 43.31 (Cr) A 15% 2011 23,362 20.54 (Cr) 635 (Cr) 418 (Cr) 718.97 (Cr) 7.43 (Cr) 180.63 (Cr) 47.82 (Cr) A 15%

23 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

4.3 Profit & Loss A/c :-

Profit & Loss A/c as on 2009, 2010 & 2011

(Rs. In Lakhs)

Income Interest Income Commission Other Income Total Income Expenditure Deposit Salary Electricity Bill & Other Court fee Currier, Telephone & other Audit & other fee Depreciation Stationary Expenses Computer Expenses Other Expenses Membership fee Invt. premium right off Contingency Provision Total Expenditure Net Profit Total

2008-09 4,125.02 11.20 2,51.59 4,387.82

2009-10 5,008.18 25.82 2,73.17 5,307.18

2010-11 6,201.21 26.94 3,77.36 6,605.52

2,254.00 867.56 60.66 6.73 14.61 13.93 112.47 25.52 20.88 398.94 1.11 16.71 3,876.17 511.64 4,387.82

2,952.66 987.23 71.78 8.48 17.59 14.49 109.35 29.22 12.30 356.39 4.65 14.05 4,685.79 621.38 5,307.18

3,429.38 1,123.54 156.01 1.54 21.54 23.62 110.03 39.53 18.94 734.20 6.41 7.54 44.38 5,861.71 743.81 6,605.52

24 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

4.5 Balance Sheet:Balance Sheet as on 2009, 2010 & 2011 Liability Share Capital Reserve Fund Deposit Other Liability Profit & Loss A/c Total Assets Cash Balance Cash Balance in other bank Investment Loans & Advances Other Fixed assets Other assets Total 3,367.20 11,088.70 6,310.03 25,966.07 337.30 1,072.49 49,594.10 2,308.66 11,462.73 11,159.99 32,007.48 977.98 1,597.83 59,990.16 2,027.73 7,561.15 18,063.47 41,826.45 1,241.07 1,011.77 72,241.05 2008-09 2000.00 4,138.59 42,151.95 649.80 511.64 49,594.10 2009-10 2000.00 4,331.96 52,097.72 731.50 621.38 59,990.16 (Rs. In lakh) 2010-11 3000.00 4,782.62 63,440.75 711.87 743.81 72,241.05

A ratio is a tool of analysis an interpreting the financial statement. Its deal with the past record and making decision for future project.

4.6 Ratio Analysis:-

Here represent the Sutex Co-operative Bank Ltd. Data analysis. 1. Current Ratio:Year 2010-11

Current Ratio = Current Asset Current Liability

= 10, 11, 77,114 7, 11, 87,464

= 1.42 : 1
25 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

Year 2009-10 Current Ratio = Current Asset Current Liability

= 15, 97, 83, 767 7, 31, 50, 705

= 2.18 : 1 Interpretation:- Current ratio of bank is decreased slightly as compare to last year through it is satisfactory. 2. Net Profit Ratio:Year 2010-11 Net Profit Net Advances * 100

Net Profit Ratio =

= 7, 43, 81, 179 4, 18, 26, 45, 792

* 100

= 1.78 %

Year 2009-10 Net Profit ratio :Net Profit * 100

Net Advances

= 6, 21, 38, 814 3, 20, 07, 48, 612

* 100

= 1.94 % Interpretation: - Net Profit Ratio is decreased as compare to last year the main reason is increased in advances.
26 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

3. Return on Shareholders Fund:Return on Shareholders Fund =

Year 2010-11 Earnings after Tax * 100 Shareholders Fund

= 7, 43, 81, 179 77, 82, 62, 663

* 100

= 9.56 Year 2009-10 Return on Shareholders Fund = Earnings after Tax * 100 Shareholders Fund

= 6, 21, 38, 814 * 100 63, 31, 96, 746

= 9.81 Interpretation: - This ratio decrease over the last year because of increase in shareholders fund and decrease in profit.

4. Proprietary Ratio :-

Year 2010-11

Proprietary Ratio = Shareholders Fund Total Assets

= 77, 82, 62, 663 7, 22, 41, 05, 114

= 0 .10 : 1

27 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

Year 2009-10 Proprietary Ratio = Shareholders Fund Total Assets

= 63, 31, 96, 746 5, 99, 90, 16, 373

= 0.11 : 1 Interpretation :- The Proprietary Ratio 0.10 which indicates that the shareholders fund are 0.10 to total assets which shows that the company is having sufficient equity shareholders fund.

28 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

CHAPTER 5 GRAPHICAL PRESENTATION

1. MEMBER OF SHARE HOLDER 2. SHARE CAPITAL 3. TOTAL DEPOSIT 4. TOTAL ADVANCE 5. NET PROFIT 6. WORKING CAPITAL

29 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

In Graphical Representation figure is last five year and related to whole The Sutex Co -operative Bank Ltd.

(1) NUMBER OF SHARE HOLDER: -

Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

No. of Share Holder 18,240 19,000 20,987 22,414 23,362

No. of Share Holder

23362

18240
19000 20987

22414

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

30 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

(2) SHARE CAPITAL: -

Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

Share Capital (Rs. In Crore) 9.92 11.38 13.90 17.32 20.54

Share Capital (Rs. in crore)

20.54

9.92 11.38

17.32

13.9

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

31 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

(3) TOTAL DEPOSIT: -

Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

Total Deposit (Rs. in Crore) 286 349 423 523 635

Total Deposit (Rs. in Crore)

635

286 349 423

523

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

32 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

(4) TOTAL ADVANCE: -

Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

Total Advance (Rs. in Crore) 188 213 260 320 418

Total Advances (Rs. in Crore)

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

33 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

(5) NET PROFIT: -

Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

Net Profit (Rs. in Crore) 3.28 4.09 5.11 6.21 7.43

Net Profit (Rs. in Crore)

7.43

3.28 4.09 5.11

6.21

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

34 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

(6) WORKING CAPITAL: -

Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

Working Capital (Rs. in Crore) 338.20 406.44 493.64 596.64 718.97

Working Capital (Rs. in crore)

718.97

338.2

406.44
493.64

596.64

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

35 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

CHAPTER 6 HUMAN RESOURCE MANAGEMENT

6.1 INTRODUCTION OF HUMAN RESOURCE MANAGEMENT 6.2 RECURITMENT, SELECTION AND TRAINING 6.3 TRAINING AND MANAGEMENT DEVELOPMENT 6.4 COMPANSATION 6.5 PROMOTION POLICY 6.6 PERFORMANCE APPRASIAL 6.7 EMPLOYEE SERVICE FACILITY 6.8 PERSONNEL RECORD

36 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

6.1 RECRUITMENT, SELECTION AND INDUCTION: Recruitment is the process of finding and attracting capable applicant for employment. Generally, The Sutex Co-operative Bank Ltd. Recruit manpower for its requirement from the inside of the Organization. They also consider employee referrals. After receiving the above information head office start process. The advertisement about requirement about personnel is published in all leading newspaper with expected qualification and experience. After receiving application from applicant candidates are invited for written test. The candidates who have successfully completed written test are invited for personal interview. On the basis of personal interview the bank select new employee. New employee often experience an induction arises. The environment is often perceived to be unwelcoming by new recruiters. To remove the fear of new employee, bank give them lost of information concerning. History of Bank Mission Statement Rules and Regulation of Bank Payment system and related issue Introduction to Co-worker Welfare and social facility.

6.2 TRAINING AND MANAGEMENT DEVELOPMENT: The Sutex Co-operative Bank Ltd. has Training Connection with Uday Bhanshing Institute, Gandhinager, RBI Collage, Puna and National foundation Co-operative Urban Bank at Delhi. The most staff clerical to Branch Manager toward in Training program. About various type of Banking Training viz., Advance, Deposit Mobilization, development, etc. More ever Management skill type Training provide by bank to staff. He thought him about all data of how to work it and how to handle it with respect. He also gives information about rules and regulation of the bank. The Training period is Two Months for all trainees. With in two Months the Trainees learn procedures of the bank.

37 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

6.3 SALARY ADMINISTRATION: In The Sutex Co-operative Bank Ltd. Co-operative Bank gives to employees by their seniority. Salary is credited in the respective account of the employee four to five day before the closure of the month. Salary administration means establishment and implementation of sound policy and practices of employee compensation so that employee is attracted and maintain and public relation image is build up.

6.4 PROMOTION POLICY: In The Sutex Co-operative Bank Ltd. gives Promotion to their employees by experience, good efficiency with his work. A promotion is the transfer of an employee to a job that involves higher pay, better status, greater responsibility/authority, higher

opportunities/challenges, and better working environment. The promotion of employee in the Sutex bank to one department to other department. In promotion pay same salary or hirer salary to depend on their efficiency. This procedure handled management. Promotion policy is based on performance appraisal and job analyses. Management is considering Seniority and merit both as basis for promotion so that senior employee contribute there best for promotion and also young and talented employee are attracted for employment.

6.5 PERFORMANCE APPRAISAL: -

Performance Appraisal is the process of Systematic, Periodic and Impartial estimating the value, excellence, qualities and thereby evaluating the performance of a person intermes of requirement of the job for which he is employee. Management use performance appraisal results for Promotion, Transfer, Identify Training and Development needs. Management has established some Performance standards and communicate to all the employees so that they appraisal for certain factor and their future depends on the result of such appraisal.

38 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

6.7 EMPLOYEE SERVICE FACILITY: In The Sutex Co-operative Bank Ltd. has contribution of the employees. In this bank employee various benefit providing like, low rate of interest on various Loan. The Loan rate is generally @ of 6% to Bank Staff. The other benefit is 1% more interest on Fixed Deposit. The bank also provides festival advances and Bonus at the end of financial year. The Bonus and festival advance is same as one-month salary. The festival advance is provides with out interest. The bank employee to provide education allowance to study your children, and medical allowances also given. The bank employee 12% provide provident fund. In the Sutex Co-operative Bank also given some training to employee. The bank provide to employee petrol allowances if the activity related to the bank. Generally petrol allowance gives to the currier and manager.

6.8 PERSONNEL RECORDS: In The Sutex Co-operative Bank Ltd. has maintained employee personnel record in wide range. The Whole data collected by General Manager. The bank detail information about, Employment, Training, Welfare activity, Salary, etc. This detail is maintained with use working computer.

And other detail as follow: Name of Employee Local and Permanent Address Appointment of Training Detail about Past and previous Experience Qualification Promotion Performance Retirement

39 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

CHEPTAR 7 MARKETING MANAGEMENT

7.1 MEANING AND IMPORTANCE 7.2 NEED FOR MARKETING IN BANKING SECTOR 7.3 MARKETING STRTEGES OF SUTEX CO-OP. BANK LTD.

40 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

7.1 MEANING AND IMPORTANCE:

Marketing is a social process by which individuals and group obtain what they need and want through creating, offering and feely exchanging product and services of value with others. Marketing Management is the process of planning and executing the conception, pricing, promotion and distribution of services to create exchanges that satisfy individual and organizational goals. Marketing becomes important in now a day because of growing competition in every field of business. In the past service industries doesnt use this concept much. But now they find that to attract customer services must be provide with smile.

7.2 NEED FOR MARKETING IN BANKING SECTOR: -

In the Banking sector most marketing also important. The Banking sector good communication and direct relation with customer. Good communication with the customer in baking sector than the image will increase. The gain attention and usually provide information that may lead the consumer. They incorporate some concession, inducement, or contribution that gives value to the consumer and they include a distinct invitation to engage in the transaction. In banking sector marketing to provide hirer facility to customer. The more facility provide than the customer increase and more deposit to pay in your account. So, the bank market is also increase in market. More branches in the cities than the image will go up. The bank is nationalize then the market also nationalize and different cities to different branch so the bank is hire position and account holder & depositor also huge. In short the bank market is hire than the no of customer to deposited amount in bank and bank condition also increase. Most of the activity of banking business related with banker and customer relationship. There for Value Added Customer Service becomes necessary for bank. There is intense competition in banking sector now a day. Therefore it is important for bank to differentiate their services from other bank.
41 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

Co-operative bank now adopted computerization in India. It is good move to provide faster services to customer. Co-operative bank should change their old infrastructure and implement new scheme to increase profit. To achieve this every bank should establish brand image in market. They may give argument like our work is different form others or this kind of concept are not related with banking but sooner or later they must understand the importance of marketing management should taken in to account employees suggestions regarding customer service because they are in direct relations with customer they must understand the unanimous principal of marketing After sales services, with a smile Analysis of advertisement media and selection, direct customer contract, give prize to old and regular customer. These organizations that succeed in quality customer services are says- what we have learning and re-learning is Consumers look for quality and value for Money. 1% customer death 3% Location change 5% New contact 9% move to wards competitor Firm because of advertising 14% dissatisfaction regarding services. 68% carelessness customer approach.

From this survey we show that customer service is the most important factor other survey shows that if you satisfy current customer well then he/she himself tells other about your services and give you new customer. In the last decade many research have been done on the subject like Business process reengineering, total quality Management etc. in Japan, America. Every business, social Organization tries to put this concept in their service. Every Organization should establish Customer service cell. The responsibility of this department should be given to the person who have experience in marketing so that he can know weather customer are satisfied or dissatisfied by various measures.

42 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

7.3 MARKETING STRATEGIES OF SUTEX CO-OP. BANK LTD.: As far as Sutex bank is concerned they use local newspaper for any advertisement. Employee of bank contact professionals like doctor, engineer and Chartered Accountants give information regarding various financial scheme of bank. Contact textile mill owner and give them information regarding various loan scheme. It also sponsored quiz contest in local channel fountain at Ring Road, Surat. The Sutex Co-operative Bank is a regular customer to invite a various scheme in deposit-to-deposit amount. The bank provide a various scheme in various deposit like on senior citizen 1% more interest on Fixed Deposit more than one year. The motto of bank is HELPS YOU LIVE BETTER However there is no separate department for marketing. As the competition is increasing day by day the bank should establish separate marketing department.

43 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

CHEPTAR 8 SWOT ANALYSIS & Conclusion

44 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

(1) STRENGTH: It is one of the best service-providing Banks. There is availability of enough funds. The Bank have efficient work force. It is fully computerized. It takes care of employers. It is a popular Bank of Surat city. It has well and growth oriented future city. The Bank is running legally in all process. It also provides entertainment facility like Music to the Customer.

(2) WEAKNESS: Expenses and operating costs are very high. There is less emphasis on marketing. Over burden of work There is no proper planning to face competitors.

(3) OPPORTUNITY: There is more opportunity for starting new branch in Surat; due to high population. The bank can widen the scope to all over Gujarat. As it has audit class A since last 21 year & has prosperous balance sheet so, people
at any place will welcome it.

It has an opportunity to become a Schedule bank in near future.

45 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

(4) THREATS: All co-operative Banks of Surat are opening more branches so there is a threat of Competition. As the banks are becoming Multi State it has more threat of competition.

46 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

CONCLUSION: -

During my Training I found that this bank is in a strong position this bank has a scientific and flexible management the relation between staff and owners are looking batter. There is good Co-ordination and confidence in the bank management from the manager of the bank is feeling that the banks main aim is to providing best services to the society so I am sure that from the looking situation banks will achieve aim in near future.

47 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

BIBLIOGRAPHY

48 Prof. V. B. Shah Institute of Management

The SUTEX Co-operative Bank

Books:-

Marketing Management Philip Kotler Finance Management Bhagwati Pillai Human Resource Management C. B. Gupta

Journals:-

Annual Report 2006-07 Annual Report 2007-08 Annual Report 2008-09 Annual Report 2009-10 Annual Report 2010-11

Website:www.Sutexbank.in

49 Prof. V. B. Shah Institute of Management