PREFACE

=============================================================

In the course of B.B.A. we have to prepare a project report on

service sector. Under this work, we have to undergo for practical
work in the banking industry for our project work.

I have get the opportunity to do the project in banking sector

in the segment of agriculture finance from Rajkot Gramin Bank. I
have done comparative analysis, market segmentation & research
work on agriculture finance. I have collected information &
farmers views on different aspects of Rajkot Gramin Bank.

2
 # INDEX #

SR. PARTICULAR PAGE

NO. NO.
1 GENERAL INFORMATION 4

2 SERVICE DEPARTMENT 17

3 PERSONNEL DEPARTMENT 25

4 MARKETING DEPARTMENT 35

5 FINANCIAL DEPARTMENT 45

6 SWOT ANALYSIS
7 MESSAGE TO THEIR
CUSTOMERS
8 FUTURE PLAN 53
9 CONCLUSION 55
10 SUGGESTIONS 57
11 BIBLIOGRAPHY 59

3
4
 INDEX
SR PARTICULAR PAGE
N N
O O
. .
1.1 PROFILE OF COMPANY 6
1.2 HISTORY AND 7
DEVELOPEMEMT
1.3. SIZE AND FORMS OF UNIT 9
1.4 ORGANATION STRUCTURE 10
1.5 ORGANATION CHART 11

5
 1.1 PROFILE OF THE COMPAY

Name of the Unit : RAJKOT GRAMIN BANK

Address : RAJKOT GRAMIN BANK,

MOVDI MAIN ROAD,

RAJKOT.

Day off : SUNDAY.

Investment Of Company: 520 billion

Accounting Year : April to march

Size Of Organization : Medium Scale Unit

PH NO. : (02820) 2360441, 2368181

Chairman : Mr.Atulbhai

Employee :
Staff Number
Officer 97
Clerk 63
subordinate 50
Total 210

6
 1.2 HISTORY AND DEVELOPMENT

RAJKOT GRAMIN BANK has been established under the Regional

Rural Bank Act 1976 passed by the central government of India. The bank
opened on 26th December 1978 with a view to provide credit facility to poor
and down trodden rural mass of region and provide limited banking service
to rural people. Bank had played very effective role to uplift the poor rural
mass. Then bank was catering the services to targeted people only where
very meager scope was available to make bank viable or profitable. After
banking sector reforms the RRBs were entrusted full form banking role to
make them sustainable. In line with policy RAJKOT GRAMIN BANK too
have changed their working and became profit-making unit without loosing
its service motto. The Bank has very good network of 53 full fledge
branches 6 satellite offices. The bank has very large asset base mainly
agriculture credit, it also held handsome core deposit of the region.
RAJKOT GRAMIN BANK having its head office at khodiyar colony,
aerodrome road, Jamnagar. At present, bank has 53 full fledge and 6 satellite
branches in both the districts. The bank has been sponsored by state bank of
Saurashtra, H.O., bhavanagar share

capital belongs to SBS,15% state govt. and remaining 50% belongs to Govt.
of India. The bank performs all the normal banking activity according to
banking regulation act provision. It is under direct

7
Supervision of national bank for agri. and rural development (NABARD)
and reserve bank of directors consisting 10 members
Including chairman. Govt. of India appoints three members. Three by
sponsored bank i.e. state bank of Saurashtra and three by state govt. these
include also nominee from Nabard, RBI and also experts from various fields.
The bank has an administrative set up consisting of chairman, gen.manager
and various dept. heads viz, advances dept., planning dept., personnel dept.,
audit and inspection dept. etc. at banks head office and branch manager as
head at various branches of the bank.

8
 1.3 SIZE OF THE UNIT AND
FORMS OF
ORGANIZATION

In every country Government adopts a different policy for measuring the

size of the Unit. In the new policy, Government adopts investment
measuring policy. On the basis of capital investment the industry can be
divided into the following part:
1. Small Scale Industry (1 to 3 crores)
2. Medium Scale Industry (3 to 100 crores)
3. Large Scale Industry (Up to 100 crores)

So RAJKOT GRAMIN BANKS investment is 520 billion. So this unit is

known as large scale unit

9
 1.4 ORGANIZATION STRUCTURE

Organizational Structure:

Branch Number
Urban 2
Semi Urban 5
Rural 46
Total 53

Branch Network
Urban
4% Semi Urban
9%

Rural
87%

The Bank has two-tier structure. Operational offices which known as branch.
Controlling office which known as head office. At present Bank have 53
branch units and 6 satellite centers functioning in two districts i.e. Jamnagar
and Rajkot. The branches are providing full fledge banking services to its
10
large cliental base while satellite centers are providing limited service
access.

1.5 ORGANIZATION CHART

1 Organizational set-up at branches:

Branch Manager

Cashier cum clerk

Messenger

11
ORGANIZATIONAL SET-UP AT HEAD OFFICE:

Chairman

General Manager

Vigilance and Inspection department.

Planning and Investment department

Personnel, account and premises, dead stock and stationary department

.
Loans and Advances department.

12
13
 Index

PARTICULAR PAGE
NO.
2.1 INTRODUCTION 15
2.2 VIEW OF SERVICE 16
MANAGER
2.3 LIST OF DIFRIENT 17
SERVICE

14
 INTRODUCTION

With years, banks are also adding services to their customers. The
Indian banking industry is passing through a phase of customers market. The
customers have more choices in choosing their banks. A competition has
been established within the banks operating in India.

With stiff competition and advancement of technology, the services

provided by banks have become more easy and convenient. The past days
are witness to an hour wait before withdrawing cash from accounts or
cheques from north of the country being cleared in one month in the south.

This section of banking deals with the latest discovery in the banking
instruments along with the polished version of their old systems.
Banks in India with the way of development have become easy to apply
in loan market. Generally, Loan against Shares, Personal Loan, Home
Loan, etc, Loans is given by almost all the banks in the country:

15
 VIEW OF SERVICE MANAGER

As per the service manager, the service the facility provided to his customer.
There should be sepret department for the customers problem related
services provided by bank.

In the RAJKOT GRAMIN BANK, there is also sepret department for

service. This department provides services related information about facility
of bank.

16
 LIST OF DIFRIENT SERVICE
===============================================================

DEPOSITS :: -
Current deposits (account)
Fixed deposits (account)
Saving Bank Deposit
Special Term Deposit

Advances:
1. Crop Loan to farmers.
2. Loan for farm mechanization.
3. Loan for irrigation purpose.
4. Loan for purchase of milk animal.
5. Loan for purchase of land or for rehabilitation of land.
6. Loan to small and medium entrepreneur.
7. Loan to trades and industries.
8. Loan to service sector.
9. Loan for purchase of consumer durables or two wheelers to working
class / service class people.
10. Loan for purchase of two wheelers for farmers.
11. Loan to transport operators.
12. Loan for the purchase of house building.
13. Loan for education purpose to students.
14. Loan / over draft facilities against banks fix deposit receipt.
15. Loan against RBI bonds.
.

17
18
 # INDEX #

1. SR. PARTICULAR PAGE NO.

NO.
2. 3.1 INTRODUCTION 26

VIEW OF PERSONAL
3. MANAGER

4. GUIDELINE FOR
EMPLOYEE
5. RECRUITMENT AND
SELECTION
6. TRAINING AND
DEVELOPMENT
7. 3.2 ORGANIZATION CHART 27
8. 3.4 PROMOTION FACILITY 30
3.5 WAGES AND SALARY 31
3.6 OTHER FACILITY 32

19
 3.1 INTRODUCTION

According to French,

Personnel management is the recruitment; selection, development

utilation of & accommodation to human Resources by organization consist
of all initials regardless of their role, who are engaged in any of the
origination activity.

Manpower is the most important resources among all the resources.

He How many finds you have, how much technological advancement
manpower. So, man is most important resource so a medium is required to
manage these resources. So they are to manage this resource. So there is a
personal department
Management is the development of people and not mere direction of
resources. Human

Resources are the greatest assets for any business enterprise. The essential
ingredient of

Management is leadership and direction of people.

Personal management is process of attracting, holding & motivating

people involving all managers line & staff.

20
 VIEW OF PERSONAL MANAGER

As per the view of personal manager, the employee be selected that, who
are very professional and qualified. Because banks transition depend upon
that person.

The employee should select as per the requirement of the job. Because the
extra employee is harmful for the firm and they reduce the profit of the firm.

21
 RECRUITMENT &
SELECTION

Recruitment is convinced with the identification of sources from where personal can be
employed and motivating them to apply for employment.
For recruitment of officers and staff members, on advertisement is given in the
newspaper, mentioning the requirement of that personal department receives applications.
These applications are sovtinised as per the concerned department head. The suitable
applicants ate them called for personal interview, which is connected by the interview
committee, which normally comprises of two persons from the personal department and
one from the administrative department and the connected department head. Here
recruitments end and selection start.
Selection is a process in which the choice of person is to be made out of available
candidate.
Selection is a process of choosing most suitable candidates out of total number of
applicants. Following are procedures for selection.
(A) Application blank
(B) Interview
(C) Reference checking
(D) Placement

After completing the doing formalities the candidates has to undergo

orientation and induction program arranged in order to acquaint the nearly

rules, polices, working system of every department and to introduce him to

the department on the completion of the program the employee has to submit

his about observation during induction program.

22
 3.4 TRAINING AND

DEVELOPMENT
Once in a year training is given to the workers. This is given on the all India level with
only difference in language under All India Workers Education Scheme. It was actually
started in Baroda on 10th September, 1996 and then in Ahmedabad in 1947.
Human resource is most important resource of all the resources. So if this resource is
sound and strong it ultimately leads to higher productivity of the organization.
In the
. have no separate department for training. They give the training through senior
employee. The new employee known about work by the superior. In the RAJKOT
GRAMIN BANK , Gives wages during the training period of time. This wage is
minimum RS. 80 per day.

23
 3.2 ORGANISATION CHART

in the RAJKOT GRAMIN BANK . There is personal department. So

origination personal department under.

B.O.B

Recruitment Officer

Branch manager

Supervisor

Employee

24
 3.6 PROMOTION AND

TRANFAR

Promotion can be defied as a movement in job, means to move one step forward in post
which results in to higher wages and salary, better status and prestige, higher challenger
and authority.
Promotion is given in this bank on the seniority basis.
Transfer means, the change of work place. In this situation the

worker gets same salary, which gets first. Transfer gives

for more experience.

In this unit transfer also. Transfer gives as employee

expectation and bank benefit.

25
 PERFORMANCE APPRAISAL

===============================================================

For personnel management a performance appraisal is an

important tool. Performance appraisal means persons performance in the
company.

Ones the employee has been selected trained and motivated, he is

then appraised for his performance. Performance appraisal is the step
where the management finds out how effective it has been at hiring and
placing employee. A performance appraisal consists of evaluating an
employees performance of a job in terms of a job in terms of its
recruitment.

RAJKOT GRAMIN BANK consider its employees as its most

valuable and therefore it believes in perfect and accurate performance
appraisal system. They believe that employees efficiency, productivity and
great performance is a ladder to success. RAJKOT GRAMIN BANK
has an efficient performance appraisal system for evaluating their
employees performance.

26
 3.7 EMPLOYEE BENIFIT

This, RAJKOT GRAMIN BANK , gives much facility to the worker. So

worker get more benefit .so unit get good result.
This bank gives this facility to his worker.

>> Promotion facility

>> Medicines facility

>> Loan facility

>> advances facility

>> Free account

27
28
 # INDEX #

SR. PARTICULAR PAGE

NO. NO.
INTRODUCTION 36
VIEW OF MARKETING
MANAGER
ADVERTISING
ORGANIZATION CHART 37
CATALOGUES 38
COMUNICATION 39
COMPETITORS
MAJOR COMPETITORS 41
SALES PROMOTION 43

29
 4.1 INTRODUCTION

Marketing management is an important area of business. Production

of good is meaningless unless the goods are slot. Marketing enables a

business. The term of marketing has been derived from a word from market.

A market menace the buyer and seller of a product and the interdict who

facilities the parches and sell. Marketing means, by which product are

matched with the demand and through which the consumer is able to use and

enjoy the product.

Marketing can be defined as THE ACTIVIES OF BUSINESS THAT

DIRECTS THE FLOW OF GOODS AND SERVICES FROM

PRODUCERS TO ULTIMATE CONSUMERS

Head of Department : RAJUBHAI

30
 VIEW OF MARKETING MANAGER

As per the view of the marketing manager, the marketing activity is

most important then other activity of business. The channel of distribution

plays an important role in market activity in the movement of flow of funds.

If any firm adopt long channel then for him that is very harmful for the bank.

In the bank marketing activity is related to give more loan and getting

money from the public.

31
 4.2 ORGANISATION OF

MARKATING

In the; RAJKOT GRAMIN BANK . This type of chart work for marketing
department.

Chairman

Managing Director

General Marketing Sales

Manager Manager Manager

Branch Clark
Aria Typist
Manager
Manager

32
 4.4 ADVERTISEMENT

Advertisement decision is a very crucial decision because it may

effect and reflect the whole marketing strategy. Through advertisement we

can increase the sales or produce more and more production.

Any paid form of no personal communication of ideas, goods or services

By business firms identified in the advertisement message intended to,
Lead to sale immediate.

Advertisement decision is a very crucial decision because it may

effect and reflect the whole marketing strategy. Through advertisement we

can increase the sales or produce more and more production.

Through the averment can increase demand of commodity or product.

So, more customers will come for pures goods.

The RAJKOT GRAMIN BANK gives the advertisement through

magazines and papers like Times of India, Indian Express, as well as in

local magazines etc. And they also give information about product in

internet.

33
 CUSTOMER CARE

DEPARTMENT

In each and every company required to maintain their customer. So

RAJKOT GRAMIN BANK. Thinks about of it and they gives customer
care department. In this department they give different kinds of services
about the customers problems and try to solve their problems.

The customer problems related with the following details.

1) Related to problems about present policy for agriculture instrument.

2). Related to premiums terms and conditions
3). Related to withdraw fund which is invested
4). Related to knowing present offers and benefits
5). Related to cancellation of policy
6). Related to opening account.

Customer can contact to the customer care by following details by the

phone and also go through bank.

Address:-

RAJKOT GRAMIN BANK,

Movadi main road,
Rajkot.

34
COMPETITORE

Bank is facing very little competition as other players were thinking that
rural market is not profitable for them according to cost concern. But
after application of technology in industry the major banks had reduced
their cost to the large extent. Even research figures of last few years also
indicate that rural market is growing very rapidly and found quiet
potential than its counterpart urban market. This has changed the
attitude of other banks and they eye on this growing market segment.
Till now the bank has competition from primary agriculture credit
societies and co-operative banks. But now private sector banks like
ICICI bank, HDFC bank, UTI bank, IDBI bank and even state own
large bank SBI is looking forward to tape more and more rural
business, specially agriculture business by making tie-up arrangement
with dealers of tractors, pump-set manufacturers etc. They also found
micro finance as very profitable business because there is very low risk
and high return in the business. They are linking more and more Self
Help Groups (SHGs) as they can serve 20 people through one single
account. The recovery rate in SHG finance in India is very high.

35
36
CUSTOMERCARE DEPARTMENT

37
 4.5 SALES PROMOTION

Generally promotion means to give more salary or more work. And by the
sales promotion employee do work good so can archive our goal easily goal.
If worker work at one place then he will burring their work. It is harm full
for any firm. With the help of promotion we can increase the encouragement
of a worker to show better performance. It would be possible only when his
needs are recognized and satisfied. It means give to the best post and its
benefit is that employee are motivated them and try to do more and more
work. When the worker do same type of work in many period of time his
interest with the work is come to down and finally he cant do proper work.
In the RAJKOT GRAMIN BANK. they give sales promotion and other
promotion. If the salesman gets more and more people for open account in
bank, they will get one step promotion in his field.

38
39
 # INDEX #

SR. NO. PARTICULAR PAGE

NO.
INTRODUCTION 46
VIEW OF MANAGER

ORGANIZATION CHART 47

PERFORMANCE
CAPITAL STRUCTURE 48
WORKING CAPITAL 49
MANAGEMENT

ORGANATION 50
STRUCTURE
MANAGEMENT OF FIXED 51

40
 5.1 INTRODUCTION

Financial management is an important because it has an impact on all

activity of a firm. Its primary responsibility discharge the finance function
successfully. It touches where, on all the others business function. All
business decision may financial affect different department of an
organization.
Definition by J.F. Brandly: financial management is the area of business
mgt. devoted to a judicious use of capital and a carefully selection of sources
of capital in order to enable a business firm to move in the direction of
reaching its goal.

Head of Department : Mr. Atulbhai

41
Performance highlights of Racket Gramin Bank:

Bank is growing in the region in line with industry growth and

improving its market share year by year. As on 31 st March 2005 deposit base
of the bank was Rs.223.25 cores while the bank advances stood at Rs.135.50
crores and further grew to the extent of Rs.195.00 crores as at the end of
September 2005.Banks investments as at on 31st March 2005 stood at
Rs.76.33 crores. Credit Deposit Ratio of the bank is around 61 % as on 31 st
March 2005 well above the state average. Banks productivity is also
marginally increased. Per branch business of the bank as on 31 st March 2005
was Rs.6.77 crores while it was Rs.6.41 crores as on 31 st March 2004.
Similarly per employee business also grew and was Rs.1.71 crores as on 31 st
March 2005 from Rs.1.59 crores year ago. During the year bank earned
profit to the tune of Rs.19.27 lacs after making all expenses and provisions.
Bank is also succeeded to bring down its non-performing assets well below
the national average. The Banks NPA % to total advance is just 2.90 %.

42
 CAPITALSTRUCTURE

==========================================

Generally capital is most important factor of any firm and any type of

business. Without capital cant possible start any business or any type of

activity. In other way we can say capital is a blood of any business. Without

capital, business is nothing.

In the RAJKOT GRAMIN BANK have different types of capital

its details are as under.

2002-03 2003-04
Particular
(Rs in billion) (Rs in billion)
Total Assets 501 559
Net worth 207 219
Loan Outstanding 454 488
Pre-tax Profit 15 15

43
 WORKETING CAPITAL MANAGEMENT

==========================================

The need of the working capital cannot be over emphasized. As already

observed, the objective of financial decision-making is to maximize the
shareholder. To achieve this, it is necessary to generate sufficient profits. The
extent of which profits can be earned will naturally depend upon the
magnitude of the sales among other things. A successful seller program is in
other words necessary for earning profit by and business enterprise.
However sellers do not convert into cash instantly. Therefore a need of
working capital in the form of current assets to deal with the problem arising
out of the lack of immediate realization of cash against goods sold.

44
 FINANCIAL PLANNING

Planning is master minding the future any attempted to neither do so

is foolish human being can neither predict nor central the future. Planning is

very necessary for the smooth running business. A business cans not be

carried without planning. Planning means deciding in advance what is to be

done. There are four basis of planning.

(1) FUTURE PLANNING OF NEW ACCOUNT

(2) PLANNING ABOUT RAISE FUNT

(3) GIVE MAXIMUM LOAN

The RAJKOT GRAMIN BANK. Taking finance some time from co-

operatives bank and also state bank of India cash credit and the commercial

co-operative bank also gives short-term loan.

45
 ORGENATION STRUCTURE

The RAJKOT GRAMIN BANK, this type of organs chart.

Financial Manager (ATUL BHAI)

Chief Accountant

Accountant Accountant

46
 SOURCES OF FINANCE

The RAJKOT GRAMIN BANK gets finance from

1 by saving account
2 by long term loan
3 by issue public deposit
4 by issuing some insurance plane

NO PER
A) BANK FINANCE 100
B) SELF FINANCE 0

VILLAGE A B
MOTA VALADA 25 0
JUVANPAR 16 0
AMRELI 22 0
IASWARITA 15 0
SORTHA 14 0
PATAMEGAPAR 8 0

SOURCE OF FINANCE

120
100
NO.OF RESPONDENT

100
80

60 Series1
40
20
0
0
BANK FIN. SELF FIN.
PARTICULARS

47
 5.3 Management in a fix asses
Generally fix capital is also most important part of any organization structure. There is
a many al decision-making is to maximize the shareholder. To achieve this, it is
necessary to generate sufficient profits. The extent of which profits can be earned will
naturally depend upon the magnitude of the sales among other things. A successful seller
program is in other words necessary for earning profit by and business enterprise.
However seller do not convert into cash instantly. Therefore a need of working capital in
the form of current assets to deal with the problem arising out of the lack of immediate
realization of cash against goods sold.
In the RAJKOT GRAMIN BANK, Has fix deposits. Its information is as under.

2002-03 2003-04
Particular
(Rs in billion) (Rs in billion)
Total Assets 501 559
Net worth 207 219
Loan Outstanding 454 488
Pre-tax Profit 15 15

48
 Swot analsis

Swot analysis of banks current. Means his strengths, weakness,

opportunis, and threath.

STENGTHS WEAKNESSES

S.W.O.T.
ANALYSIS

OPPORTUNITES THREATS

49
 STRENGTH :: -

This bank is very reputed in local (Rajkot) area.

Strong brand equity in local (Rajkot) area.
Fully computerized.
Profitability & sound liquidity.
Branches in all most developed part of Rajkot.
No mistake in regular transactions can be found because of
small network.
Farmer have have trust on this bank.

WEAKNESSES :: -

Lack of modern management concepts and sometimes

communication gap can be found which indicates lack of
professionalism.
Bank is not providing A.T.M. facility in the recent developed
era and Bank is not fully developed in modern era.
Lower volume of advances due to higher rate of interest may
affect the expansion of the organization.
Not reputed at national level and less no. of the branches.

50
 OPPORTUNITIES :: -

Bank can open branches at state level in near future.

Number of branches can be increased in all over nation next
5 to 8 years.
Bank can introduce new services like, NRI loan, ATM,
student account with minimum Rs. 100 etc.
Bank can perform marketing activities by media.
Bank open branches in village

THREATS :: -

Changes in government policies and in rules and regulation

regarding bank can be disturbed in regular services of bank.
All the depositors may withdraw their money from bank

because of any wrong rumors against bank.

Some times farmer withdraw his money at

immediately because of low rain condition.

51
52
 FUTURE PLANS

The future plan of the banks diversification of the industry for

agricultures wealth.
And they are going to established new branches at all village which is
under his area.
His plane is give insurance to all farmers
The plane is open maximum account in that bank.
The plane is to give maximum subsidy to the farmer.

53
54
 CONCLUSION

As survey is sample survey in the nature and it has limitation it is difficult

to conclusively comment on it. But the utmost care has been taken in
selecting the villages, which reflects the fair view of both the district. The
farmers selected too are the best representatives of the area farmers. I tried
my best to justify the task. I also tried hard in getting practical training at
Rajkot Gramin Bank, Rajkot branch and did my best to understand their day
to day functioning and other related aspects. In this project, I tried to
understand the working style of RAJKOT GRAMIN BANK , their various
structures, attitude and approach of their officials and other staff in thorough.
I found them customer friendly and motivator to the public. The bank has
created very good reputation amongst farmers and other people in the
region. The existence of the bank had played significant role in the
economical development of the region.

55
56
 SUGGESTIONS

I give some suggestion to the RAJKOT GRAMIN BANK, as under.

Due to globalization competition has increased in the banking also, so this
bank should be computerized as early as possible.
They should give more adverting through the local news paper and news
channel.
They should open his branches at all village which is comes in his area.
They should issue questionnaire once in year.

57
58
 BIBLIOGRAPHY

(1) Marketing Management - Philip Kotler

(2) Finance Management - I. M. Panday

(3) Personnel Management - C. B. Mamoriya

(4) Material provided by RAJKOT GRAMIN BANK

59