Chapter - 1

CHAPTER - 1
INTRODUCTION
1.1 INTRODUCTION
Project is an essential part of the educational set of courses of VTU MBA. Project is an
initiative to bridge the gap between knowledge and its application through a series of
involvement that will enable VTU MBA student a program to provide insights and experience
to the operations of a company. The six weeks of Project has been positioned during after
completion of third semester and before the commencement of fourth semester of the MBA
program it serves the twin purposes of providing critical business insights to students as well
providing exposure to industry and enables the students to have a practical exposure to the
concepts learnt during classroom teaching. This Project provides a platform to the students to
put into practice the theoretical concepts learnt. Project is very necessary to gain confidence and
become aware of mechanism. The primary purpose of this study is to fulfill the requirement for
the post graduation degree of MBA as per the required VTU curriculum. With this intention a
Project has been undertaken by me at Graduate’s Cooperative Society. Ltd, Shivamogga for the
period of ten weeks.
TOPIC CHOOSEN FOR THE STUDY

“A Study of section wise insightful investigation of Loans with reference to Graduate’s Co-
operative Society Ltd., Shivamogga “.
1.2 INDUSTRY PROFILE
The association of individuals having common needs to achieve, who join hands to the
Co-operative society.These society aims to serve better in the development of customers &
members in all the sectors. Here, people will come forward as a group, individual to utilize in
the best possible manner. And make some common benefit to reach the peoples or customers or
members.
It is a movement in the country the Co-operative concept will came into existence. They
are in the way of developing the economy in such working manners and administrative
experience. The diverse between the banks and societies have clears the intention of the service
in a ground level. Therefore, the societies will not concentrate on the profit maximization. The
main objective in the Co-operatives to attain the members interest in various sectors to help to
achieve their stated goal with the carriage of the society.
HISTORY OF CO-OPERATIVE SOCIETIES
1. In Europe the Co-operative movement began in 19th century.

2. The Shore Porters Society claims to be one of the world's first cooperatives is established in
Aberdeen in 1498.
3. First documented consumer cooperative was founded in 1769.
4. The Lennox town Friendly Victualling Society, founded in 1812.
5. Before 1830 the Co-operative were several to hundred co-operatives.
6. Heart of England co-operative society was founded in the year 1832.
7. Rochdale Society of Equitable Pioneers established in the Rochdale Principles to path their
society.
8. Franz Hermann Schulze-Delitzsch was started in the year 1852.
9. Friedrich Wilhelm Raiffeisen began in 1864.
10. The great Britain have some societies like friendly society, building society, and mutual
savings bank were previous forms of parallel institutes.
The major two phases are briefed below:
1. Pre-independence period:
In the year 1901 the government appointed the next famine commission to recommend
method for the losses. This command suggested for a number of progress happenings and set
active of new foundation. Where the society on the basis of two models, first for rural area and
second for urban area. Due to this the number of societies are raised up but they will have stuck
in the handling the overall functions in the society.
1. The act will say about the provision for setting up of a Non-credit Co-operative Societies
in rural area is prohibited.
2. There is no facility to help the societies through the central intervention in financing and
supervising.
3. No exact measures could be done for moreover outstanding to covering nature of such
classification.
4. The worldwide economic depression in the year 1928, agriculture crops and grains are
drop down to cause the unemployment in whole agriculture families.
5. The issue will be a big noise to whole societies who offered loans to these persons while
they are not in the situation to repay the loans.
6. In 1933 the Reserve bank of India taken an initiative to identify the Co-operative
programme.
2. Post-independence period:
After the India’s independence the sector have no such development and changes are made.
The absence of central agency in the movement of the co-operative was be the main problem.
To strengthen the co-operative action the country will have provisions to work around
various of plans. The completion of the 50years of movement the plan of first is ended and
celebration was being done throughout the country with full of happiness. For development
of people through the various policies and make them comfortable with the rules and
regulations of the societies. Provide them some essential training and direction for
developing skilled and well-organized personnel’s.
Fundamental Objectives:
1. To hammer the spirit of cooperators among the people in the society.

2. To give confidence to promote co-operatives.
3. To guarantee that the co-operatives are created and purpose on independent morality.
4. To make sure that the co-operatives have the benefit outmost self-rule.
5. To ensure that the co-operatives are responsible to members.
6. To ensure that the co-operatives task as practical instrument to bring about sustained
improvement.
7. To ensure that the poverty improvement and for the uplift of weaker sections of the
society.
8. To encourage co-operatives to emerge as self-supporting.
9. To achieve financial gains and to put mutual aim ahead of private interest.
10. To provide equal opportunities to all the members.
The state has a special in the co-operative sector is Karnataka and the state is the one of the first
states to started the co-operative movement. To be a proud for the first co-operative society in
agriculture in Karnataka. At the time the consumer co-operative society also started in
Bengaluru. While classifying the Karnataka into different parts as like Mumbai, Hyderabad,
Mysore, Madras etc.
Co-operative Societies in Shivamogga:
 Bharathi Credit Co-operative Society.

 Vishweshwaraya Co-operative Society Private Ltd.
 Malnad Areca Marketing Co-operative Society Ltd.
 ShivamoggaCo-operative Milk Producers’ Societies Union Ltd – SHIMUL.
 AryaVysya Sri Rama Co-operative Society Ltd.
Objectives
Some of the main objectives of Co-operative societies are as follows:
1. Enhanced cooperation: The societies plan to support total support between everybody
involved with a group. They are generally against the idea of any sort of hierarchy and consider
everyone to be equal. This can improve relationships between staff members and senior
management, as well as between service providers and customers.
2. High level of service: Improved working relations in natures how the way to advanced output
level. For that enhanced service is agreed to customers. This raises customer satisfaction levels,
which is the primary aim of many cooperative societies. For instances, student accommodation
units may be cooperative societies. Students will be happier with their accommodation and staff
members will find their working life much easier.
11. 3. Higher profits: A lot of societies are basically away to make a profit and believe that
attractive relations will lead to high revenue levels. This plan may not always work, but in
many cases, it has proved effective. Some charities have also benefited from operating as a
cooperative society, as charity members become more focused on their work, raising more
money for the cause in question
1. 3 COMPANY PROFILE
BACKGROUND AND INCEPTION OF SOCIETY
The Graduate’s Co-operative Society which was started on 27th September 1971 with the
simple function was registered on 27th September 1971. This society was started with
Sri.Rudrappa as the president, Sri Devender as vice president, Sri Anantha Shethy as treasury.
The society which was started with the strength of 45 members is now having 5119 members.
The main objective of this society is to provide loan at low interest rates. Accumulate more
share capital. Fulfill financial needs of the members of society and to look after the overall
development of the society.
1.4 VISION AND MISSION AND OBJECTIVES
Vision
Improve the economic position of Graduate Members
MISSION
Providing credit services to the door steps of Graduate members,
 To provide integrated credit packages for the graduate member.

 To spread Co-operative education through seminars.
 To be strongest organization in Co-operative sectors.
 To promote Co-operative hospital service to the members and general public.
OBJECTIES OF THE SOCIETY
 To build good relation towards members of society, account holders and employees
 To do all activities of society according to its regulation by laws and Act.
 To give loans to member towards different kind of activities.
 To build up of funds, for helping for members and employees.
 Receiving of deposits.
 To give locker facility to members.
1.5 PRODUCTS/ SERVICE PROFILE
The Graduate Co-operative society is engaged in the providing the various kind of loans and
deposit services as follows,
LOANS
 Special loan
 Personal loan
 Educational loan
 Salary loan
 Staff loan
 Pledge loan
 House construction loan
 Home purchasing loan
 NSC loan
 Term deposit loan
 OD loans
 RD loan
 Gold loan
 KVP loan
DEPOSITS
 Saving bank deposit.

 Recurring deposits.
 Fixed deposits.
 Family safety deposits.
1.6 AREA OF OPERATION

The Graduate Co-operative bank is federation of primary Co-operative society operating
in the Shivamogga city. The Graduate Co-operative society plays an important role in economic
development. The scope of the society is limited only to the area of Shivamogga city. It gives
membership only to people who are graduated.
The graduate’s Co-operative society is playing a crucial part in the improvement of

individual’s socio- economic conditions. It is not only inspiring the people to achieve socio and
economic status but also functioning in shaping of livelihood of the individuals regardless of
caste and religion of members.
1.7 INFRASTRUCTURAL FACILITIES

 Graduate’s Co-operative society maintains a very good communication system internally
and externally as it is equipped with telephones, computers and the internet services.
 Graduate’s Co-operative society has good furniture, well equipped chambers, systems,
fans, stationeries etc.
 Graduate’s Co-operative society is located in the center of city.
 Graduate’s Co-operative society has its own Graduate’s Co-operative Society Health care
center for members and general public.
 The graduate’s Co-operative societies have all basic facilities for banking business.
1.8 COMPETITORS INFORMATION
Graduate Co-operative society, Shivamogga catered to fill the needs of members, Due to
changing economic scenario the organization facing stiff competition. As far as interest rate
concerns, which are governed by RBI and NABARD, an aggressive approach is adopted by
commercial banks, Regional Rural Banks and Co-operative societies.
The main competitors of Graduate Co-operative Society,
 Shivamoga District Co-operative Central Bank

 Vishveshwarya Co-operative Society in Shivamoga
 Pragathi Gramin Bank in Shivamoga
 City Co-operative Central Bank in Shivamoga
 Commercial Bank in Shivamoga
 Regional Rural Banks in Shivamoga
 Non-banking financial corporation
 Muthoot Finance Corporation ltd in Shivamoga
 Malabar gold loan private limited in Shivamoga
1.9 SWOT ANALYSIS
Strength
 The society has experienced staff and they provide excellent services.
 Good relation with its shareholders, which also helps for popularizing deposits, loan
disbursement and recovery of the same.
 Providing efficient training to their administration department members and staff.
 Well experienced planning team.
 Good infrastructural facility.
Weakness
 the society does not have branch network
 Limited resources
 Absence of E-banking facility
 Limited area of operation
 Low recovery of loan.
 Less adoption of new technologies.
 High non-performing asset.
Opportunities
 Opportunity to adopt improved technology.
 Entering new market area (expand the business).
 High household savings
 Improvement in loan for agriculture sector and small-scale industries.
 Improving economic condition thrust to infrastructural activities which will have an
impact on other industries.
Threats
 Post Global financial crisis impact
 Change in government policy
 High preliminary cost in new technology introduced in banking solution
 Competitors with different strategies in Co-operative society business
 NBFC’s, capital markets and mutual funds
1.10 FUTURE GROWTH AND PROSPECTS
 To gain the faith of the members the society is continuously working out new deposit
schemes.
 The firm is planning to provide more funds for advances and loans increase profit.
 To open new branches in Shivamogga.
 To increase the number of members through the competitive.
 Adopting new and advanced technology of Co-operative banking system.
 Competing with other Co-operative and commercial bank in shivamogga city.
1.11CALCULATION OF RATIOS
Table No: 1.1: Table showing analysis of Current Ratio
Current Ratio = Current Assets / Current Liabilities

Years Current Assets Current Liabilities Ratio (%)
2015 – 16 57603693.28 7613798.9 7.57
2016 – 17 85642160.98 8666114.6 9.88
2017 – 18 102063841.2 8975635.1 11.37
Source: Balance sheet from 2015-2018
Graph No: 1.1

12 11.37
9.88
10
8 7.57
0
2015 – 16 2016 – 17 2017 – 18
Source: Table no.1.1
Analysis &Interpretation:
From the above table shows the current ratio indicate in the year 2015 - 16 is 7.57%, current
ratio in the year 2016 -17 is 9.88% and current ratio in the year 2017 -18 is 11.37%.
Table No: 1.2: Table showing analysis of Quick ratio
Quick ratio = Quick Assets /Current Liabilities

Years Quick Assets Current Liabilities Quick Ratio%
2015 – 16 55891428 7613798.9 7.34
2016 – 17 83149146 8666114.6 9.59
2017- 18 100289894 8975635.1 11.17

Graph No: 1.2
Quick Ratio
12 11.17
10 9.59
8 7.34
0
2015 – 16 2016 – 17 2017- 18
Analysis & Interpretation:
From the above table shows the quick ratio of the company in the year 2014-15 is 7.34%, Quick
ratio in the year 2016-17 is 9.59%, Quick ratio in the year 2017-18 is 11.17%.
Table No: 1.3: Table showing analysis of Debt Equity Ratio
Debt Equity Ratio = Long term debt /Share holder fund
Debt equity ratio

Year Long term debt Shareholders fund
%
2015 - 16 124738001.7 12551450 9.94
2016 – 17 137485165.7 13105850 10.49
2017 – 18 179287212.7 14346500 12.49
Graph No: 1.3
Debt equity ratio

14
12.49
12
10.49
9.94
10
0
2015 - 16 2016 – 17 2017 – 18

The above table and graph shows that Debt Equity Ratio is high in the year 2017-18 that is 12.49
%. In the year 2015 -16 Debt Equity Ratio is low to 9.94 % and in the year 2016-17 slight
increase in Debt Equity Ratio to 10.49%
Table No: 1.4: Table showing analysis of Total debt to assets ratio.
Total Debt to Assets Ratio = Total Debt/Total Assets
Total Debt to
Year Total debt Total assets
assets ratio %
2015 – 16 124738001.7 200870945.2 0.62
2016 – 17 137485165.7 242548626.4 0.57
2017 – 18 179287212.7 301544868.6 0.59

Graph No: 1.4
Total Debt to assets ratio

0.63
0.62
0.62
0.61
0.6
0.59
0.59
0.58
0.57
0.57
0.56
0.55
0.54
2015 – 16 2016 – 17 2017 – 18
The above table and graph shows that Total debt to asset Ratio. In the year 2015-16 Total debt
to asset Ratio is0.62%. In the 2016-17 Total debt to asset Ratio is 0.57% and in the year 2017-
18 Total debt to asset Ratio is 0.59%.
Table No: 1.5: Table showing analysis of Equity Multiplier Ratio.
Equity Multiplier = Total Assets / Shareholder’s Equity
Year Total Assets Shareholder’s Equity multiplier

equity ratio %
2015 – 16 200870945.2 12551450 16.00
2016 – 17 242548626.4 13105850 18.51
2017 – 18 301544868.6 14346500 21.02
Source Balance sheet from 2015-2018

Graph No: 1.5
Equity multiplier ratio
25
21.02
20 18.51
16
15
10
0
2015 – 16 2016 – 17 2017 – 18
The above table and graph shows that Equity Multiplier Ratio is high in the year 2017-18 to
21.02%, in the year 2016 -15 Equity Multiplier Ratio is 18.51% and in the year 2015-16 Equity
Multiplier Ratio is 16%.
Table No: 1.6: Table showing analysis of Return on assets Ratio
ROA=Net Profit/Total assets
Return on assets
Year Net profit Total asset
ratio%
2015 – 16 5412731 200870945.2 0.027
2016 – 17 4801349 242548626.4 0.020
2017 - 18 729461 301544868.6 0.002

Graph No: 1.6
Return on assets ratio

0.03
0.027
0.025
0.02
0.02
0.015
0.01
0.005
0.002
0
2015 – 16 2016 – 17 2017 - 18
From the above table and graphs indicates Return on assets ratio shows that in the year 2015 -
16 Return on assets ratio is 0.027%. In the year 2016 -17 return on assets ratio is 0.020% and in
the year 2017 -18 Return on assets ratio is 0.002%.
Table No: 1.7: Table showing analysis of Return on equity
Return on equity=Net income/ Equity
Years Net income Equity Return on Equity
2015 – 16 4522977.83 12551450 0.36
2016 – 17 4801348.63 13105850 0.37
2017 – 18 5412730.75 14346500 0.38
Graph No: 1.7
Return on Equity
0.385
0.38
0.38
0.375
0.37
0.37
0.365
0.36
0.36
0.355
0.35
2015 – 16 2016 – 17 2017 – 18
Analysis & Interpretation

The above table reveals that the return on equity of the society are increasing like a slight up in
every year since 2015-16 to 2017-2018. The graphs clear that the increasing in the return on
equity in a upward manner in the society.
Table No: 1.8: Table showing analysis of Solvency ratio
Solvency ratio = Total Liabilities / Total Assets
Years Total Liabilities Total assets Solvency ratio
2015 – 16 13105850 200870945.2 0.0652
2016 – 17 13105850 242548626.4 0.054
2017 – 18 1434650 301544868.6 0.0048

Graph No: 1.8
Solvency ratio
0.07 0.0652
0.06 0.054
0.05
0.04
0.03
0.02
0.01 0.0048
0
2015 – 16 2016 – 17 2017 – 18
Source: Table no. 1.8
From the above table the ratio of solvency reveals that the assets and liabilities of the societies
are been decreasing in the year 2017-18 compared to 2015-16.
Table No: 1.9: Table showing analysis of Reserves to capital ratio

Reserves to capital ratio = Reserves / Capital
Reserves to capital
Years Reserves Capital
ratio
2015 – 16 5388664.3 820751197 0.007
2016 – 17 6588843.3 10065761 0.655
2017 – 18 7459698.3 11258382.97 0.663

Graph No: 1.9
Reserves to capital ratio
0.7 0.655 0.663
0.6
0.5
0.4
0.3
0.2
0.1
0.007
0
2015 – 16 2016 – 17 2017 – 18
The table showing the Reserves to capital ratio for the benefits of the society in the development
of reserves in the current years in 2015-16 it as 0.007 and now 2016-17 and 2017-18 has a 0.655
and 0.663 respectively.
Table No: 1.10: Table showing analysis of Long Term Debt to new working capital
LTDNWC = Long-term debt / current assets – current liabilities
Long term debt to

Years Long term debt CA-CL new working
capital
2015- 16 124738001.7 49989894.38 2.50
2016 – 17 137485165.7 76976046.38 1.79
2017 - 18 179287212.7 930880206.1 0.19

Graph No: 1.10
Long term debt to new working capital

3
2.5
2.5
2 1.79
1.5
0.5
0.19
0
2015- 16 2016 – 17 2017 - 18
From the above table shows the debt should be comes under the current assets and current liabilities
to forming the long-term debt to net worth
Table no. 1.11: Table showing the analysis of Debt to Net Worth
Debt to net worth = Total long-term debt / Shareholder’s funds
Shareholders
Years Long term debt Debt to Net Worth
fund
2015 – 16 124738001.7 12551450 9.94
2016 – 17 137485165.7 13105850 10.49
2017 – 18 179287212.7 14346500 12.50

Graph No: 1.11
Debt to Net Worth

14
12.5
12
10.49
9.94
10
0
2015 – 16 2016 – 17 2017 – 18
The above table clear that the debt to net worth has been in a such a way to make the
shareholders fund and in the case of the debt. In the year the debt as 12.50 in 2017-18 and in
2015-16 it as 9.94.
Table No: 1.12: Consolidated table showing ratios
Years 2015-16 2016-17 2017-18
Current Ratio 7.57 9.88 11.37
Quick Ratio 7.34 9.59 11.17
Debt equity Ratio 9.94 10.49 12.49
Total debt to assets Ratio 0.62 0.57 0.59
Equity Multiplier Ratio 16 18.51 21.02
Return on assets Ratio 0.027 0.02 0.002
Return on Equity 0.36 0.37 0.38
Solvency ratio 0.0652 0.054 0.0048
Reserves to capital ratio 0.007 0.655 0.663
Long term debt to new

2.5 1.79 0.19
working capital
Source: table no.1.1 to table no.1.12
Graph No: 1.12
25
20
15
10
5 2017-18
2015-16
0
Current Quick Debt Total Equity Return Return Solvency Reserves Long
Ratio Ratio equity debt to Multiplier on assets on Equity ratio to capital term
Ratio assets Ratio Ratio ratio debt to
Ratio new
working
capital
2015-16 2016-17 2017-18
The table contains the overall results of the ratios under the 3years of statement.
The society has a development in the current ratio, quick ratio and Debt equity Ratio in 2017-2018
compare to past 2015-2016 and 2016-2017. Thereafter, the Total debt to assets Ratio and Return on
assets Ratio is been decreased in the year 2016-2017 compare to past 2014-2015 and 2015-2016.
CHAPTER – 2
CONCEPTUAL FRAME WORK& LITERATURE REVIEW
2.1 INTRODUCTION
Previously, the theory of co-operatives was only applied in areas such as agriculture,
finance (financial contribution among friends) and buying and selling. Very recently,
researchers started making attempts to link co-operative concept into the entrepreneurship
domain. Hence, the concept of co-operative entrepreneurship is an emerging trend in this present
21st century. The importance of co-operative is becoming more visible under the current
challenging economic situation. They also increased incomes and satisfactory conditions of
work. They were involved in poverty easing and prevention, societal discussion and
empowerment of disadvantaged groups.
MEANING OF LOANS
The allowance of money from a bank to another party with the agreement that the mon
ey will be repaid. Bank loans are made at interest, meaning borrowers pay a certain percentage
of the principal amount to the lenders compensation for borrowing.
In the loans most of it have maturity period by which the time of borrowing will be repay
the loan. The loans are made sum occasionally departs is called a bank advance.
An organization that delivers a great diversity of financial services. At their most basic,
banks hold money on behalf customers, which is payable to the customer on demand, either
looking at the bank for a withdrawal or a check to a third party. Banks use money they hold to
finance loans, which they make to businesses and individuals to pay for different operations.
2.2 REVIEW OF LITERATURE
1. R.Thirunarayanan examined the degree the cooperative banks in Tamil Nadu could
ascend to the credit needs and their advance portfolios, their advance and the purpose
behind their moderate advancement and the issues experienced by them. He discovered
some negligence in the move of profitable loaning from utilization purposes loaning. It
was because of lost attention on security and additionally absence of mastery to choose the
appropriate and meriting case: This could be set directly through instructing the individual
from the banks to obtain more for profitable purposes and keep away from utilization loan
for inefficient consumption. He additionally proposed a far reaching part training plan
covering the individuals from the cooperative banks in the state.
2. B.S.Nagarajan, et al., studied that the successful execution of a co-operative bank in

Dindigul. They evaluated the operational proficiency, cost productivity and benefit of the
bank. They contemplated the operational effectiveness with regards to gainful execution
of the bank as far as following markers: volume of business per representative, stores and
advances per worker, volume of business per rupee of costs on labor and recovery of
development per worker. The expense of productivity proportion was processed by
estimating operational costs per Rs.100/ - volume of business, which was utilized to
calculate the effectiveness of the bank in controlling its expense of activities. The
productivity execution depended on the accompanying eight markers. interest received
ratio, Interest paid ratio, spread ratio, manpower expense ratio, other expenses ratio, other
income ratio, burden ratio and profitability ratio.
3. G.Sathish (2016) cooperative banking system one urban that is of two administrators
expansionist and cooperative in the nation, regulates an vital piece of the monetary
frameworks of the India, urban cooperative banks accept a basic part as mediator
associated money by forcing the two need to division credit condition and a weaker
section of the gathering. Did the march 2015, there were 120 working all over Tamil Nadu
and the majority part is the Non-annexe UCB. These banks are commonly focused around
the regions and work gathering and in agriculture they lend to and due to the non-agro
industry and epically to epically to little bit dealers breeders, businessman, craftsman,
assembly line workers, salaried individual and people of the little means. This paper
include the well-ordered and in the wake of arranging allows earlier methodology of the
credit in Tamil Nadu's urban cooperative banks. In the additional, the study is an appraisal
of how much urban cooperative banks followed advance portfolio organization and
recognises the territory of the concentration of the change in the not so distant future.
4. Usha Kapoor skender(2016) Expressed that fault for each bank. Banks must see that
any conveyed assets must be recovered with an additional impacts. If not the peace
keeping money won't accomplish its objective and will be far from his work. Aside from
commercial banks cooperative banks resist typically a higher risk level by changing on
the assets of the development by the assets. From that point forward, nice banks are set up
to cover the rural zones where the lion share of the clients are poor, recovery the board
turns into an daunting task and it is clear from the review attempted to the evaluate the
administration of the unproductive resources in the cooperative society.
5. Gupta Jyoti and Jain Suman (2012) placed that urban cooperative banks are giving the
greater part of the banking services, for example, savings and current accounts, safe deposit
lockers, loan, advances or mortgages to the general and businessmen . In the ongoing days
the Urban Cooperative Banks winds up vital financial institution in the urban zone where
white collar class clients getting different banking services and utilizing to fulfil their daily
needs. According to the report of the RBI these banks are giving different e-banking
administrations yet these administrations are not all that helpful to the lower-class clients.
The writer also mentioned that these banks are given that high tech services but these
services are not up to mark. On the off chance that we contrast their e-banking services
and the service given by the private banks we can understand that there is enormous gap
in the service quality of the e-banking service. In any case, in this research they proved
that dissimilar to documentation and other basic methodology of giving loans and advances
the customers are choosing urban cooperative banks in India.
6. Adhir Ambovane (2011) placed that there is extreme need of training and development
exercises in the cooperative associations. For improving learning, abilities , attitude and
social behaviour the training offices assumes essential role thus, the government and top
authorities of the co-operative association should take consistence and planned
programme for the training and development. It is demonstrated that the execution of the
organisation can improves with the assistance of preparing offices. Shockingly, it is seen
that there is issue of these exercises in the cooperative organisation. Besides , not very
many organisation much emphasis on assessing the outputs of activities of the training.
A portion of the co-operative organisation is leading preparing and improvement exercises
for their workers however it is seen that there is no assessment mechanism for judging the
performance and development among the employees. Subsequently, there is need of
appraisal framework including the training and skill development services in the co-
operative organizations with co-operative banks.
7. Anil Kumar Soni and Harjinder Pal Singh Saluja (2012) ,examined the
Development of Cooperative Movement of Chhattisgarh State. They referenced that
Cooperative Banking organization playing important role in the realization of the
agricultural as well as in local development in Indian economy. They serve both rustic
and urban population and are turned out to be important banking institutions in India. Their
observational analysis demonstrate that the improvement of cooperative organizations in
Chhattisgarh was positively and satisfactory. They referenced that the state cooperative
render 70% of the overall agriculture credit. . It is the one essential outcomes which
indicates the importance of co-operative credit organization in Indian economy.
8. Mina Sonne (2010), explained that for the development of small venture in the urban
region there is extreme need to more fund to the small scale enterprises and small
entrepreneur. People in public and private sector banks are not providing proper financial
services to them. Thus, the urban cooperative banks should assume crucial role in the
improvement of small traders and small businessman. The innovation and development
and new business activities should be supported by this banking system. The urban
cooperative banks can be contribute increasingly more for the improvement of business
and trade activities for producing more work in the urban and semi-urban zone.
9. M. Nallusamy (2010), explained that the benefit issue is turned out to serious issues of
the urban cooperative banks in India. The benefit of the urban cooperative bank is accepted
more prominent significance in the changing situation of self-rule to banks financial
reforms. Productivity of the banks generally affects the overall development of the banking
organizations. Those banks getting more benefit they can develop more than other banks
and financial institutions. Author demonstrated that the more benefit shows more usage
of resources and appropriate fund management and lending policy. . It is an index of good
application of credit policy as well and managerial efficiency of the management. In
ongoing time benefit is progressively imperative with commercial banks and other
financial institutes. No doubt the making profit is not core business of the cooperative
organization but being a financial institution the urban co-operative bank should make
some amount of profit and uphold their profitability to endure their existence in
modest environment. .
10. Ramesh Chander and Jai Kishan Chandel (2010),referenced that, In Indian
financial system co-operative credit organizations is important issue. These institutions
are occupied with various activities , that is production , processing , marketing ,
distribution , servicing and banking with massive and influential structure. The
cooperative financial associations are not just the financial institutions in India it fills in
as operator of improvement in India. These organizations are works as supportive to the
public and private sector banks in India.. In rustic territory agricultural credit co-operatives
and urban cooperative banks in urbane zone are acting as connecting the gaps and
satisfying the loopholes of Indian financial system.
11. Babu K.V.S.N Jawahar & Selkhar B.Muniraja (2012), referenced that Urban
Cooperative banks are one of the most important organization of India's' Multi Agency
banking organization which is working for the budgetary incorporation and giving better
financial administrations to the urban people for the improvement and prosperity of the
society. These organizations assume a vital job in the economic development of the
common man which includes middle income groups, lower income groups as well as
higher income group people. How ever, there are number of issues in cooperative banks;
the most vital issues are under utilization of assets, negligence of funds, problem of skilful
workforce, problem of Professionalization of its management, problem of political
interference etc. There is issue of non-performing resources which persistently ending up
intense issue in the urban cooperative banks since most recent 10 years. Many urban
cooperative banks are shut because of the issue of NPA and mismanagement of assets.
Consequently there is need of expert methodology and expert administration system for
the uplifement of the cooperative banks in India.
12. Sohini Bagchi (2013), contended that Cooperative banks in India are progressively going
core banking solutions (CBS) for inform their banking service delivery channels.
Cooperative banks are presenting different instalment diverts so to improve customer
services according to the altering banking situation in glob. While numerous urban
cooperative banks have just introduced CBS, and some more are presently computerization
and updating of the financial administration channels, they are regularly looked with issues
relating to multi-channel reconciliation. He likewise referenced that the vast majority of
urban cooperative banks are not aware of multi-channel interfaces framework that are
incorporated with the framework at the season of getting the core banking system.
Accordingly, these banks are paying extra expenses for each module or interface and
additional banking services they desire to install to the base system. This is one of the
essential big trials for this cost-constraint for co-operative banks in India.
13. Sudarsan Nayak (2004), suggested that there is one of the essential issues with the urban
cooperative banks in India that Lack of proper supervision and assessment by Registrar of
Cooperative Societies in India it resulting into financial mishandling and disproportion
institutional development.. The Government is faltering to depend any essential
government work to the urban cooperative banks since it doesn't have any participation of
development process. The Cooperative Banks and other important institution are not ready
to admit them as members. NABARD and RBI are not concurring for change of Central
and Urban Cooperative Banking framework in India. The most critical issue worry to urban
cooperative banking in India concerning the usage of concept co-operative in term of
banking business. R.B.I. has objection about the use of word "Co-operative" since
Banking Regulation Act uses the word "Cooperative Society". These are some lawful
difficulties about the urban co-operative banks in India.
14. Smriti Chand (undated) Mentioned the real contrasts between the urban cooperative
banks and commercial banks in India. commercial banks are joint-stock banks.
Cooperative banks, then again, are cooperative organizations. Commercial banks are
represented by the Banking Regulation Act. Cooperative banks are represented by the
Cooperative Societies Act of 1904.Commercial banks are constrained by the RBI in India
it is liable to the control of the Reserve Bank of India specifically. Cooperative banks are
liable to the tenets set somewhere near the Registrar of Cooperative Societies of specific
state government Co-usable banks have lesser degree in offering an assortment of banking
administrations than commercial banks. Commercial banks in India are on a bigger scale
and worked in the distinctive piece of the country just as outside of the national that is
called as remote parts of the our banks. They have embraced the arrangement of branch
banking, so they have countrywide tasks. Co-operative banks are comparatively on a much
smaller scale. Many co-operative banks follow only unit-bank system, though there are co-
operative banks with a number of branches but their coverage is not nationwide.
Cooperative banks have not much scope of flexibility on account of the rigidities of the
bye laws of the Co-operative Societies. Commercial banks, on the other hand, are free from
such rigidities.
15. According to B Munirajasekhar and B Sudheer (2013) Cooperative banks can play a
critical and expected role in rural financial inclusion in India on the off chance that they
capably exploit the innovation set up. Other than empowering quicker administrations,
their choice to bring innovation into play will open up potential outcomes of giving new
savvy banking items and administrations to the cultivating network specifically. It is
conceived that post execution of CBS including Financial Inclusion, Cooperative banks
will likewise actualize web banking, telephone banking, ATM arrange and so on.
According to industry watchers, technology deployments like Cooperative banking
Service are a enormous challenge in co-operative banks. Factors such as high costs of
operation and maintenance coupled with lack of regional language software support for
Cooperative Banking Service are deterrents.
16. Devadatta Divekar (2009) referenced that cooperative banking area as a rule and urban
cooperative banks specifically are experiencing an extreme stage. So as to make due in
the competitive business condition there must be sound arrangement for keeping up
productivity by method for expanding volume of banking business and diminishing the
cost of business. He said that the utilization of banking technology is most vital approach
to meet both expectations and requirements of the banking business.
17. Suryan K.Uthaya, and Veluraj R. (2005) in their study titled, "Productivity Analysis of
the Pondicherry Urban Cooperative Bank", analysed the performance of the bank from
1998-99 to 2002-03. . Different ratios, such as cost of management (total expenses) to
working capital ratio, profit to working capital ratio, non-interest income to total income
ratio. were utilized to evaluate the general execution of the bank. Spread and burden
position of the bank were likewise dissected. They reasoned that the profitability
performance of the bank was great and bank had the capacity to meet its commitments and
standards The cost of management and establishment expenses got compact during
the period of study which additional strengthened the profitability position of the bank.
18. Patil A. K. (2013) led research to assess the budgetary consideration with respect to
Participation, Branches, Staff, Deposits and Funds got of Karad Urban Cooperative Bank.
To consider the complete Loan progresses extent of Priority Sector, Working Capital and
Investment Pattern for money related consideration. to ponder the over duty, Doubtful and
misfortune advances, Bad and Doubtful Debts hold of the Karad Urban Co-operation.
Bank. Furthermore, to assess the standards and states of RBI satisfied for financial
inclusion by the Bank. Also, he found that because of master the executives, dynamic
administration the Karad Urban Co-operation. Bank has contributed in critical sum for the
money related consideration in most recent 10 years. Because of the great money related
execution this bank has been accomplished the "schedule Status" as characteristic of its
budgetary quality and sureness of people in general. He referenced that the Compound
Growth Rate of offer capital, Reserve Fund Own Fund was higher than the stores gathered
by the Bank. The compound development rate of number of branches and work age was
less when contrasted with participation and business turnover of the bank amid 2000-01 to
2009-10. The Gross benefit and Net benefit were expanded from Rs.2.73 centers and Rs.
0.36 centers to Rs. 12.4crores and Rs. 5.34 centers separately amid 2004-05 to
2009-10.
19. Kurulkar (1983) in his examination "Work on agricultural finance in backward region".
He inspect that out of the of the ten example proprietors who acquired longsterm credit
from the cooperative banks 30% could not secure short-term credit, Lack of short-term on
production credit to the farmers who availed long-term credit resulted in lower output per
acre there by resulting in overdues.
20. Rajiv Kaur Kumar and Jasmindeep (2013) in their paper titled they have watched
cooperative banking has been assuming a critical job in the improvement of rural economy
a work as a backbone of Indian financial system. These banks are assuming a primary job
in the accomplishment of financial inclusion, these manages an account with their broad
branch organize and confined operational base. Also involve in regeneration of the
development mobilization in rural zones so an effort has been mode in this paper to study
the co-operative banking. The present paper only focuses on the short term a medium term
rural co-operative banks working in the state.
CHAPTER – 3
RESEARCH DESIGN
3.1 STATEMENT OF THE PROBLEM
The performance of the bank is directly correlated with performance of loans. Loan is an
asset for the bank which will yield regular returns. Society offer different segment of loans to
the borrowers and charges different rate of interest. In spite of credit appraisal and recovery
management some loans are performing whereas some segment of loans not able to perform
due to various reasons. Co-operative societies are not exceptional to this; hence the study is
undertaken to study segment wise analysis of loans offered by graduate’s Co-operative society.
3.2 NEEDS FOR THE STUDY
 Its helps the banks to understand the performance of different segment of loans.
 It helps to re-design credit appraisal and recovery management.
 It helps to set a standard for different segment of loans.
3.3 OBJECTIVES OF THE STUDY
 To analyze the disbursement of loans by Graduate Cooperative Society, Shivamogga.

 To measure the performance of loans through selected tools.
 Ranking of loans based on performance.
 To make suggestions and recommendations based on the study.
3.4SCOPE OF THE STUDY
The study covers the following: Meaning of loans, Utility of loans and advances,
Borrowing rate and lending rate, Lending of money, Nature and security of loans, Procedure of
granting cash credit, overdraft and discounting bills, Statutory & other restrictions on loans &
advances, the Advantages and Disadvantages of Loans, Engaging recovery agents by banks,
Functions of Graduates Cooperative Society, the role of Graduates Cooperative Society, Types
of loans granted by Graduate’s Co-operative Society, The study is limited to the information
provided by the Graduate’s Co-operative Society, Shivamogga officials. The study conducted
for the 5 years data of the society will be taken.
3.5 RESEARCH METHODOLOGY
The research work conducted is on the basis of Descriptive research.
The research design is the basic plan, which guides the data collection and analysis
through different phases of the project. It is, therefore, a work frame, which specified the type
of information to be collected, the source of data and collection procedure
Sources of Data
1. Primary Data:
The primary data has not been collected.
2. Secondary Data:
The secondary data has been collected from various published and unpublished source
like: Published Financial Statements of the Graduate’s Co-operative Society, Shivamogga.
For the purpose of Analysis Different types of loans of Graduate Cooperative Society has
been taken.
3.6 TOOLS AND TECHNIQUES:
1. CAGR
2. Percentile analysis
3. Average
4. Year on change percentage
3.7 LIMITATIONS OF THE STUDY

All the possible care has been taken to collect the information and make the study as
authentic as possible. However, it is subjected to certain limitations. They are as under:
 All the findings and recommendations, which are stated, are applicable only for the current
period.
 The study is limited to the extent of the data given by the Graduate’s Cooperative Society.
 Based on limited information it is not possible to arrive at a proper conclusion.
 The interpretation of the study is not complete as primary records of the Society are
inaccessible except Annual reports.
 The accuracy of the study depends on the accuracy of information and records provided
by the Graduates Cooperative Society, Shivamogga.
CHAPTER – 4
DATA ANALYSIS AND INTERPRETATION
Table No: 4.1
Segment Wise Loans Details for the Year 2013-2014

Recovered Loan Loan Granted to
Issued Amount
Loan Type Amount Customers
(INR)
(INR) (Numbers)
Special Loan 22318000 2572355 247
Personal Loan 195000 21486 21
Education Loan 300000 0 3
Salary Loan 3751000 550458 22
Staff Loan 100000 14968 1
Pledge Loan 4310000 401364 1
House Construction
3760000 374714 2
Loan
Home Purchasing
4100000 401360 5
Loan
NSC Loan 328000 0 4
Term Deposit Loan 2252500 0 12
OD Loans for
9841136 1054130 47
Members
RD Loan 109500 131470 2
Gold Loan 5871200 3904139 31
KVP Loan 0 0 0
Source: Annual report for the year 2013-2014.
Loan Granted to
Issued Amount Recovered Loan
Loan Type Customers
(INR) Amount (INR)
(Numbers)
Special Loan 24868000 2207012 256
Salary Loan 3815000 538144 24
Staff Loan 380000 51877 1
Pledge Loan 28850000 3414895 13
House
3896000 382094 1
Construction Loan
Home Purchasing
0 0 0
Loan
NSC Loan 153000 0 2
Term Deposit
7371000 0 39
Loan
OD Loans for
7960524 854132 32
Members
RD Loan 1360000 146191 16
Gold Loan 4547708 2413038 27
KVP Loan 0 0 0

Loan Granted to
Loan Type Customers
(INR) Amount (INR)
(Numbers)
Special Loan 2639000 348515 29
Salary Loan 2200000 324198 13
Staff Loan 175000 26444 1
Pledge Loan 44568000 6283115 17
House
7991000 843422 5
Construction Loan
Home Purchasing
0 0 0
Loan
NSC Loan 90000 0 1
Term Deposit
9562750 0 49
Loan
OD Loans for
10361346 1138714 54
Members
RD Loan 163500 18165 2
Gold Loan 3597200 1932167 15
KVP Loan 50000 0 1
Loan Granted to
Loan Type Customers
(INR) Amount (INR)
(Numbers)
Special Loan 34467100 3937160 356
Salary Loan 5253000 880834 31
Staff Loan 230000 34926 1
Pledge Loan 52905000 7771387 16
House
11455000 1349349 8
Construction Loan
Home Purchasing
0 0 0
Loan
NSC Loan 135000 0 2
Term Deposit
15795285 0 83
Loan
OD Loans for
10390809 1115673 61
Members
RD Loan 2260200 228170 23
Gold Loan 5076900 3216417 19
KVP Loan 0 0 0

Loan Granted to
Loan Type Customers
(INR) Amount (INR)
(Numbers)
Special Loan 45016000 5174887 470
Salary Loan 3840000 711146 26
Staff Loan 526000 70430 2
Pledge Loan 46990000 6670220 13
House
14680000 1482428 5
Construction Loan
Home Purchasing
1890000 218141 1
Loan
NSC Loan 0 0 0
Term Deposit
10362500 0 64
Loan
OD Loans for
3957059 413024 26
Members
RD Loan 8000 2200 1
Gold Loan 6887700 4416983 28
KVP Loan 0 0 0
Table No. 4.2
Classification of the Table on the basis of Disbursement & Recovery of Special loan for the year
2013-2017
Disbursement Recovered Loan Loan Granted to
Year
(INR) (INR) Customers (Numbers)
2013 – 14 22318000 2572355 247
2014 – 15 24868000 2207012 256
2015 – 16 2639000 348515 29
2016 - 17 34467100 3937160 356
2017 - 18 45016000 5174887 470
Source: Annual report from 2013 to 2017.
Graph No. 4.1
Chart Title
45016000
50000000
34467100
40000000
24868000
30000000 22318000
20000000
2639000 5174887
10000000 2572355 2207012 348515 3937160
0
2013 – 14 2014 – 15 2015 – 16 2016 - 17 2017 - 18
Disbursement (INR) Recovered Loan (INR)
Analysis &Interpretation
The above table & graph represents disbursement, recovery and number of customers for special
loan during 2013-2014 to 2017-2018. In which the highest & lowest disbursement taken place
during 2017-18 & 2015-16. That is Rs.45016000 & Rs.263900 respectively. Whereas, the
recovered loan highest & lowest loans are recovered during the year 2017-18 & 2015-16 that is
Rs.5174887 & Rs.348515 respectively. Among the special loan taken by the maximum of 470
members availed during 2017-18. It’s clear that the trend in term of disbursement, recovery and
number of customers is improved in recent years.
Table No. 4.3
Classification of the Table on the basis of Disbursement & Recovery of Personal Loan for the
year 2013-2017

Year
2013 – 14 195000 21486 21

2014 – 15 125000 14927 16
2015 – 16 160000 18206 29
2016 – 17 145500 17055 17
2017 – 18 270000 30942 33
Graph No. 4.2
300000 270000
250000
195000
200000 160000
145500
150000 125000
100000
21486 30942
50000 14927 18206 17055
0
2013 – 14 2014 – 15 2015 – 16 2016 – 17 2017 – 18
The above table & graph represents disbursement, recovery and number of customers for
Personal Loan during 2013-2014 to 2017-2018. In which the highest & lowest disbursement
taken place during 2017-2018 & 2014-2015. That is Rs.270000 &Rs.125000 respectively.
Whereas, the recovered loan highest & lowest loans are recovered during the year 2017-2018 &
2014-2015 that is 5174887 & 2207012 respectively.
Table No. 4.4

Classification of the table on the basis of Disbursement of Education loan for the year 2013-
2017
Loan Granted to Customers

Year Disbursement
(Numbers)
2013 – 14 300000 3
2015 – 14 0 0
2015 – 16 400000 4
2016 – 17 200000 2
2017 – 18 200000 2
Graph No. 4.3

400000
400000
350000 300000
300000
250000 200000 200000
200000
150000
100000
50000 3 0 0 4 2 2
0
2013 – 14 2015 – 14 2015 – 16 2016 - 17 2017 – 18
Disbursement Loan Granted to Customers (Numbers)
The above table and shows that, the highest Education loan disbursement in the year is 2015-16
that as Rs.400000 and in the year 2014-15 society didn’t issued any Education loan to the
members. We can find that education loans are not recovered within the year. It’s clear that
educational loans are not profitable to the society.
Table No. 4.5

Classification of the Table on the basis of Disbursement & Recovery of Salary Loan for the year
2013-2017

Year
2013 – 14 3751000 5550458 22

2014 – 15 3815000 538144 24
2015 – 16 2200000 324198 13
2016 – 17 5253000 880834 31
2017 – 18 3840000 711146 26
Graph No. 4.4
Chart Title
5550458
6000000 5253000
3751000
5000000
3815000 3840000
4000000
3000000 2200000
2000000 880834
538144
711146
1000000 324198
0
(INR) (INR)
Disbursement Recovered Loan
2013 – 14 2014 – 15 2015 – 16 2016 – 17 2017 – 18
The above table and shows that, the Salary loan of disbursement in the year is 2016 - 17 that as
Rs.5253000 and in the year 2015-16 society issued lowest amount that as 2200000. The
recovered loan is in the year 2017-2018 & 2013-2014 are Rs.550458 & 324198 respectively.
And the number of customers are 29 availed in the year 2015-2016
Table No. 4.6
Classification of the Table on the basis of Disbursement & Recovery of Staff Loan for the year
2013-2017.

Year
2013 – 14 100000 14968 1

2014 – 15 380000 51877 1
2015 – 16 175000 26444 1
2016 – 17 230000 34926 1
2017 – 18 526000 70430 2
Graph No. 4.5
Chart Title
600000 526000
500000
380000
400000
300000 230000
175000
200000
100000
51877 70430
100000 14968 26444 34926
0
2013 – 14 2014 – 15 2015 – 16 2016 – 17 2017 - 18
The above table and shows that, theStaff loan disbursement in the year is 2017-18 that as
Rs.526000 and in the year 2013-14 society issued lowest amount of Staff loan that as
Rs.100000. The recovered loan amount in the year 2017-2018 & 2013-2014 that is Rs.70430
&Rs.14968. The loans granted to customers in recent year are increased.
Table No. 4.7

Classification of the Table on the basis of Disbursement & Recovery of Pledge Loan for the
year 2013 -2017

Year
2013 – 14 4310000 401364 7

2014 – 15 28850000 3414895 13
2015 – 16 44568000 6283115 17
2016 – 17 52905000 7771387 16
2017 - 18 46990000 6670220 13
Graph No. 4.6

60000000 52905000
46990000
50000000 44568000
40000000
28850000
30000000
20000000
4310000 7771387
6283115 6670220
10000000 401364 3414895
0
2013 – 14 2014 – 15 2015 – 16 2016 – 17 2017 - 18
The above table and shows that, the Pledge loan disbursement in the year is 2016 -17 that as
Rs.52905000 and in the year 2013-14 society issued lowest amount of Pledge loan that as
Rs.4310000. The recovered loan amount in the year 2016-2017 & 2013-2014 for Rs.7771387
&Rs.4310000 respectively. The numbers of customers are increased in the recent years
Table No. 4.8
Classification of the Table on the basis of Disbursement & Recovery of the House Construction
Loan for the year 2013-2017

Year
2013 – 14 3760000 374714 2

2014 – 15 3896000 382094 3
2015 – 16 7991000 843422 5
2016 – 17 11455000 1349349 8
2017 – 18 14680000 1482428 1
Graph No. 4.7
16000000 14680000
14000000
11455000
12000000
10000000
7991000
8000000
6000000
3760000 3896000
4000000
1349349 1482428
2000000 843422
374714 382094
0
2013 – 14 2014 – 15 2015 – 16 2016 – 17 2017 – 18

The above table and shows that the House Construction loan disbursement in the year is
2017 -18 & 2013-14 that as Rs.14680000 & Rs.3760000.The recovered loan is in the year
2017-2018 & 2013-2014 that is Rs.1482428 & Rs.374714 respectively. The house construction
loan is granted in numbers is fluctuating in several years.
Table No. 4.9
Classification of the Table on the basis of Disbursement & Recovery of the Home Purchasing
Loan for the year 2013-2017

Year
2013 – 14 4100000 401360 5

2014 – 15 0 0 0
2015 – 16 0 0 0
2016 – 17 0 0 0
2017 - 18 1890000 218141 1
Graph No. 4.8

4500000 4100000
4000000
3500000
3000000
2500000
1890000
2000000
1500000
1000000 401360
218141
500000 0 0 0 0 0 0
0
2013 – 14 2014 – 15 2015 – 16 2016 – 17 2017 - 18
The above table and shows that the Home Purchasing loan disbursement in the year is 2012-13
that as Rs.4100000 and in the year 2016 – 17 that as Rs. 1890000.In the 2012-2013 the recovered
loan is Rs.401360 and in the year 2016-2017 that as Rs.218141. The society has less demand in
the home purchasing loan.
Table No. 4.10

Classification of the Table on the basis of Disbursement of NSC Loan for the year 2012-2016
Disbursement Loan Granted to Customers

Year
(INR) (Numbers)
2013 – 14 328000 4
2014 – 15 153000 2
2015 – 16 90000 1
2016 - 17 135000 2
2017 – 18 0 0

Graph No. 4.9
328000
350000
300000
250000
200000 153000
135000
150000
90000
100000
50000
4 2 1 2 0 0
0
2013 – 14 2014 – 15 2015 – 16 2016 - 17 2017 – 18
The above table and shows that, the highest NSC loan disbursement in the year is 2013-14 that
as Rs.328000 and in the year 2017 – 18 society didn’t issued any amount of NSC loan. Here the
demand for NSC Loan is decreasing every year in the society.
Table No. 4.11
Classification of the Table on the basis of Disbursement of Term Deposit Loan for the year
2013-2017
Disbursement Loan Granted to Customers

Year
(INR) (Numbers)
2013 – 14 2252500 12
2014 – 15 7371000 39
2015 – 16 9562750 49
2016 – 17 15795285 83
2017 – 18 10362500 64
Graph No. 4.10
15795285
16000000
14000000
12000000 10362500
9562750
10000000
7371000
8000000
6000000
4000000 2252500
2000000 12 39 49 83 64
0
2013 – 14 2014 – 15 2015 – 16 2016 – 17 2017 – 18

The above table and shows that, the highest Term Deposit loan disbursement in the year is 2016-
17 that as Rs.15795285 and in the year 2017 – 18 society issued lowest amount of Term Deposit
loan that as Rs.2252500. The demand for Term Deposit Loan is increasing every year.
Table No. 4.12
Classification of the Table on the basis of Disbursement & Recovery of OD Loans for Members
n for the year 2013-2017

Year
2013 – 14 9841136 1054130 47

2014 – 15 7960524 854132 32
2015 – 16 10361346 1138714 54
2016 – 17 10390809 1115673 61
2017 – 18 3957059 413024 26
Graph No. 4.11

12000000
10361346 10390809
9841136
10000000
7960524
8000000
6000000
3957059
4000000
2000000 1054130 854132 1138714 1115673

413024
0
2013 – 14 2014 – 15 2015 – 16 2016 – 17 2017 – 18
The above table and shows that, the OD loan disbursement in the year is 2015-16 that as
Rs.10390809 and in the year 2017-18 society issued lowest amount of OD loan that as
Rs.3957059. And recovered loan in the year highest and lowest in the year 2015-2016 &
2017-2018 are Rs.1138714 &Rs.413024 respectively. The society provided loans in past years
but in the year 2017-2018 the loan was provided very less compare to other years
Table No. 4.13
Classification of the Table on the basis of Disbursement & Recovery of R.D Loan for the year
2013-2017

Year
2013 – 14 109500 31470 2

2014 – 15 1360000 146191 16
2015 – 16 163500 18165 2
2016– 17 2260200 228170 23
2017 – 18 8000 2200 1
Graph No. 4.12
2500000 2260200
2000000
1500000 1360000
1000000
500000
228170
109500 146191 163500
31470 18165 8000 2200
0
2013 – 14 2014 – 15 2015 – 16 2016– 17 2017 – 18

The above table and shows that, the highest R.D loan disbursement in the year is 2016-17 that
as Rs.2260200. The Rd loans are safest loans in the society where the loans are facilitating
easily.
Table No. 4.14
Classification of the Table on the basis of Disbursement & Recovery of Gold Loan for the year
2013-2017

Year
2013 – 14 5871200 3904139 31

2014 – 15 4547708 2413038 27
2015 – 16 3597200 1932167 15
2016 – 17 5076900 3216417 19
2017 – 18 6887700 4416983 28
Graph No. 4.14

6887700
7000000
5871200
6000000
5076900
5000000 4547708 4416983
3904139
3597200
4000000 3216417
3000000 2413038
1932167
2000000
1000000
0
2013 – 14 2014 – 15 2015 – 16 2016 – 17 2017 – 18
The above table and shows that, the highest Gold loan disbursement in the year is 2013 - 14
that as Rs.5871200 and in the year 2015-16 society issued lowest amount of Gold loan as
Rs.3597200. Whereas the gold loan was recovered highest and lowest in the year 2017-2018 &
2013-2014 that is Rs.4416983 &Rs.3904139. Moreover, the gold loan is very popular in the
society; the customers are very consistent to take loans
Table No. 4.15: Consolidated table showing calculation of disbursement of loans through
CAGR:
Loans (INR) Years 2013-14 2014-2015 2015-2016 2016-2017 2017-2018 Average CAGR
Special Loan 22318000 24868000 2639000 34467100 45016000 25861620 15%
Personal Loan 195000 125000 160000 145500 270000 179100 7%
Education Loan 300000 --------- 400000 200000 200000 275000 -8%
Salary Loan 3751000 3815000 2200000 5253000 3840000 3771800 -9%

Staff Loan 100000 380000 175000 230000 526000 282200 39%
Pledge Loan 4310000 28850000 44568000 52905000 46990000 35524600 61%
House Construction
Loan 3760000 3896000 7991000 11455000 14680000 8356400 31%
Home Purchasing
Loan 4100000 ------ ----------- ----- 1890000 2995000 -14%
NSC Loan 328000 153000 90000 135000 ------ 176500 -20%
Term Deposit Loan 2252500 7371000 9562750 15795285 10362500 9068807 36%
OD Loans for
Members 9841136 7960524 10361346 10390809 3957059 8502174.8 -17%
RD Loan 109500 1360000 163500 2260200 8000 780240 -41%
Gold Loan 5871200 4547708 3597200 5076900 6887700 5196141.6 3%
Source: Annual report from 2013 to 2017
Table No. 4.16: Consolidated table showing Disbursement, Recovery & Overdue of loans
in (INR):
Years 2013-2017 2014-2015
Types of Loans Disbursement Recovery Overdue Disbursement Recovery Overdue

Special Loan 22318000 2572355 19745645 24868000 2207012 22660988
Personal Loan 195000 21486 173514 125000 14927 110073
Education Loan 300000 ----- 300000 --------- -------- 0
Salary Loan 3751000 550458 3200542 3815000 538144 3276856
Staff Loan 100000 14968 85032 380000 51877 328123
Pledge Loan 4310000 401364 3908636 28850000 3414895 25435105
House
Construction 3760000 374714 3385286 3896000 382094 3513906
Loan
Home
Purchasing 4100000 4013640 86360 ------ ------- 0
Loan
OD Loans for
9841136 1054130 8787006 7960524 854132 7106392
Members
RD Loan 109500 31470 78030 1360000 146191 1213809
Gold Loan 5871200 3904139 1967061 4547708 2413038 2134670

.
Years 2015-2016 2016-2017
Types of loans Disbursement Recovery Overdue Disbursement Recovery Overdue
2639000 348515 2290485 34467100 3937160 30529940

Special Loan
160000 18206 141794 145500 17055 128445
Personal Loan
Education
400000 ------- 400000 200000 ----- 200000
Loan
2200000 324198 1875802 5253000 880834 4372166
Salary Loan
175000 26444 148556 230000 34926 195074
Staff Loan
44568000 6283115 38284885 52905000 7771387 45133613
Pledge Loan
House
Construction 7991000 843422 7147578 11455000 1349349 10105651
Loan
Home
------------
Purchasing ----------- 0 ----- ------ 0
-
Loan
OD Loans for
10361346 1138714 9222632 10390809 1115673 9275136
Members
163500 18165 145335 2260200 228170 2032030
RD Loan
3597200 1932167 1665033 5076900 3216417 1860483
Gold Loan
Years 2017-2018
Recovery
Types of loans Disbursement (INR) Overdue (INR)
(INR)
Special Loan 45016000 5174887 39841113
Personal Loan 270000 30942 239058
Education Loan 200000 ------- 200000
Salary Loan 3840000 711146 3128854
Staff Loan 526000 70430 455570
Pledge Loan 46990000 6670220 40319780
House Construction Loan 14680000 1482428 13197572
Home Purchasing Loan 1890000 218141 1671859
OD Loans for Members 3957059 413024 3544035
RD Loan 8000 2200 7105
Gold Loan 6887700 4416983 2470717

Table No. 4.17: Consolidated table showing loans in a RANK:
Recovered loan in Percentage
Types of loans 2013 2014 2015 2016 2017 AVG RANK
Special Loan 11.53% 8.87% 13.21% 11.42% 11.50% 11.31% 5.5
Personal Loan 11.02% 11.94% 11.38% 11.72% 11.46% 11.50% 5.5
Salary Loan 14.67% 14.11% 14.74% 16.77% 18.52% 15.76% 2
Staff Loan 14.97% 13.65% 15.11% 15.19% 13.39% 14.46% 2.5
Pledge Loan 9.31% 11.84% 14.10% 14.69% 14.19% 12.83% 4
House
Construction 9.97% 9.81% 10.55% 11.78% 10.10% 10.44% 7.5
Loan
Home
9.79% 0 0 0 11.54% 4.27% 9
Purchasing Loan
OD Loans for
10.71% 10.73% 10.99% 10.74% 10.44% 10.72% 7.5
Members
RD Loan 28.74% 10.75% 11.11% 10.10% 11.19% 14.38% 2.5
Gold Loan 66.50% 53.06% 53.71% 63.35% 64.13% 60.15% 1
Graph No. 4.14
RANK
9
9
7.5 7.5
8
7
5.5 5.5
6
5 4
4
2.5 2.5
3 2
2 1
1
0
Interpretation
From the above table the loans are categorized into different rank based on recovered in
percentage in which gold loan ranked 1st with highest recovered rate and House construction
loan ranked least with a minimum recovered rate in percentage.
Table No. 4.18: Consolidated table showing Total Issued Amount
YEARS 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
TOTAL 57236336 83326232 81907796 138313794 134627259
Source: Table 4.1
Graph No. 4.15

160000000
138313794
140000000 134627259
120000000
100000000
83326232 81907796
80000000
57236336
60000000
40000000
20000000
0
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
Source:Table No. 4.18

The table showing the details of the total issued amount in past 5 years. Here, in the year
2016-17 and 2017-18 the issued amount will crossed the 10 crore and in the year 2013-14 the
lowest amount issued is Rs. 57236336. Therefore, the society will have improved in the raising
the funds in the future years.
Table No. 4.19: Consolidated table showing Total Recovered Amount
YEARS 2013-2014 2014-2015 2015-2015 2016-2017 2017-2018

TOTAL 57236336 83326232 81907796 138313794 134627259
Source: Table 4.1
Graph No. 4.16

160000000
138313794
140000000 134627259
120000000
100000000
83326232 81907796
80000000
57236336
60000000
40000000
20000000
0
2013-2014 2014-2015 2015-2015 2016-2017 2017-2018
Source:Table No. 4.19

The recovered loans for the past 5 years are been increasing due to the effective management in
the society. The graphs showsthat the raising the takings in the past years the society are in the
growthperiod where they can buildadditional effort to credit management
Table No. 4.20: Consolidated table showing Loan Granted to Customers (Numbers)
Years 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
Loan Granted to
398 427 210 262 671
Customers (Numbers)
Source: Table 4.20
Graph No. 4.17
Loan Granted to Customers (Numbers)
671
700
600
500 427
398
400
262
300
210
200
100
0
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
Source: Table No. 4.20

The society has different kinds of criteria to sanction the loans to members. The members of the
society are taken out the loans during the 2013-14 to 2017-2018 periods. It varies from year to
year but at last 2017-18 the loans were granted around 670 is the highest numbers the society
granted loans in past compare to now.
CHAPTER – 5
FINDINGS, SUGGESTIONS AND CONCLUSION
5.1 FINDINGS
 The highest amount disbursed in Special loan in the year 2017-2018 that as 45016000 and
the lowest disbursed amount in the year 2015-2016 that as Rs.2639000.
 The Personal loan disbursed highest in the year 2017-2018 that as Rs.270000 and the
lowest disbursed amount in the year 2014-2015 that as Rs.125000.
 The educational loan disbursed highest in the year 2015-2016 that as Rs.400000 and the
lowest disbursed amount in the year 2016-17 & 2017-18 that as Rs.200000.
 Salary loan disbursement highest in the year 2016-2017 that as Rs.5253000 and the lowest
disbursed amount in the year 2015-2016 that as Rs.2200000.
 Staff loan disbursed highest in the year 2017-2018 that as Rs.526000 and the lowest
disbursed amount in the year 2013-2014 Rs.100000.
 ThePledge loan highest disbursed in the year 2016-2017 Rs.52905000 and the lowest
 House construction loan disbursed highest in the year 2017-2018 that as Rs.14680000 and
the lowest disbursed amount in the year 2013-2014 that as Rs.3760000.
 The disbursement of Home purchasing loan in the year 2013-2014 and 2017-2018 are
Rs.4100000 and Rs.1890000 respectively.
 Thedisbursement of NSC loan in the year 2013-2014 that as Rs.328000 and the lowest
 In the Term Depositloan the highest loan disbursed in the year 2016-2017 Rs.15795285
and the lowest disbursed amount in the year 2013-2014 that as Rs.2252500.
 The highest OD loans disbursement amount in the year 2016-2017 that as Rs.10390809
and the lowest disbursed amount in the year 2017-2018 that as Rs.3957059.
 The RD loans disbursed highest in the year 2016-2017 that as Rs.2260200 and the lowest
 The highest disbursed Gold loan in the year 2017-2018 that as Rs.6887700 and the lowest
 The highest amountrecovered in Special loan in the year 2017-2018 is Rs.5174887 and
the lowest recovered amount in the year 2014-2015 that as Rs.2207012.
 The Personal loan recovered highest in the year 2017-2018 that as Rs.30942 and the
lowest recovered amount in the year 2014-2015 that as Rs.14927.
 Salary loan recovered highest in the year 2016-2017 that asRs.880834 and the lowest
recovered amount in the year 2015-2016 that as Rs.324198.
 Staff loan recovered highest in the year 2017-2018 that asRs.70430 and the lowest
 The Pledge loan highest recovered in the year 2016-2017 that as Rs.7771387 and the
lowest recovered amount in the year 2013-2014 that as Rs.401364.
 House construction loan recovered highest in the year 2017-2018 that as Rs.1482428 and
 House Purchasing loan recovered highest in the year 2013-2014 that as Rs.401360 and
 The highest OD loans recovered amount in the year 2016-2017 that as Rs.1115673 and
 The RD loans recovered highest in the year 2016-2017 that asRs.228170 and the lowest
 The highest recovered Gold loan in the year 2017-2018 that asRs.4416983 and the lowest
recovered amount in the year2015-2016 that as Rs.1932167.
5.2 SUGGESTIONS:
1. The Society disbursed loans to Special loan, Salary loan, Pledge loan, House construction
loan, Term deposit loan, O.D loans for members & Gold loans are high in the past years;
the society will increase and maintain the disbursement of such loans continuously.
2. The loans granted under Personal loan, Staff loan, Home purchasing loan and NSC loans
are disbursed in society are fluctuating and decreased in the recent years and the society
need concentrate in this type of loans and increase in disbursement.
3. The Pledge loan, Gold loan, Special loan & House construction loans are recovery is better
than other loans, the society need to concentrate and recover remaining loans with
effective strategy.
4. In the ranking of loans, the gold loan is in the 1st position of recovery of amount in the
society and the fastest recovering loan in the society. The society need to increase the
disbursement of gold loan in next coming years.
5. The members of the society are 5500 approximately, the society need to join new members
to the society.
6. The society can introduce new loan schemes to encourage its members.The society should
adopt effective strategy about the credit control policy.
7. The Compound annual growth rate shows that the society have better (CAGR) of Pledge
loan compare to all other loans. This shows that the Pledge loan have decent demand in
the society.
8. In the favor of members society can make online transactions to do a business smart and
fast & then the members have great privilege to be a part of the business in the society.
9. The society have issued highest amount in the year 2016-2017 is Rs.138313794 and the
lowest has been in the year 2015-16 is 57236336.
10. The recovered amount total in the past five years has been fluctuating and making some
noise in the society where it can be make effort to collect more in the sectors of different
way of layout.
11. From the loans are categorized into changed rank based on recovered in percentage in
which gold loan ranked 1st with highest recovered rate and House construction loan
ranked least with a least recovered rate in ratio.
12. The table contains the overall results of the ratios under the 3years of statement.
13. The society has a development in the current ratio, quick ratio and Debt equity Ratio in
2017-2018 compare to past 2015-2016 and 2016-2017. Thereafter, the Total debt to
assets Ratio and Return on assets Ratio is been decreased in the year 2017-2018 compare
to past 2015-2016 and 2016-2017.
14. The ratios are Return on assets Ratio, Return on Equity, Solvency ratio, Reserves to
capital ratio and Long-term debt to new working capital.
15. The society increased the numbers in sanctioning the loans in the recent years, it is a
good strategy to make it effective.
5.3 CONCLUSION:
Graduate’s Co-operative Society ltd. is one of the leading Cooperative Society which
provides various loans to its members in Shivamogga. Graduate’s Co-operative Society plays
an important role in proving credit facilities to its members. The Society is efficiently catering
to the credit needs to the people of Shivamogga. Graduate’s Co-operative society ltd. is
maintaining good track record of its documentation and processing of records. The society has
loyal members to do a business activity. Finally, the study segment wise analysis on loans of
the Graduate’s Cooperative Society reveals that the Society is doing a significant job in
providing credit facilities to the members of Society.
BIBLIOGRAPHY
BOOKS:
Mr. Khan and Pk Jain “Financial Management”, Tata McGraw-hill publishing company limited
5th edition.
ARTICLES:
Sathish (2016) “A Study On Loan Portfolio Management of Urban Cooperative Banks
in Tamil Nadu” ©International Journal of Research - GRANTHAALAYAH
 Usha Kapoor (2016), “Recovery Management in Jaipur Central Cooperative Bank”,

 Appiah (2015) “Assessing the credit appraisal system of co-operative credit banks- a case
study of saint peter’s Co-operative credit union” thesis submitted to Knust School Of
Business 2015
 Dr.Sudhakara (2012), “A Comparative Analysis Of Loans And Advances In Selected

Urban Co-Operative Banks”,
 CHRIS O. UDOKA (2015), “ Bank Loan and Advances: Antidote for Restructuring the
Agricultural Sector in Nigeria”, International Journal of Research in Business Studies
and Management Volume 2, Issue 3, March 2015
 Appiah (2015) “Assessing the credit appraisal system of co-operative credit banks- a
case study of saint peter’s Co-operative credit union” thesis submitted to Knust School
Of Business 2015
WEBLIOGRAPHY
http://www.granthaalayah.com (Retrieved on feb-12-2018 at 12PM)
http://ijesc.org/ (Retrieved on feb-15-2018 at 10PM)
www.abhinavjournal.com (Retrieved on march-20-2018 at 3:15 PM)

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CHAPTER - 1

TOPIC CHOOSEN FOR THE STUDY

1.2 INDUSTRY PROFILE

HISTORY OF CO-OPERATIVE SOCIETIES

1. In Europe the Co-operative movement began in 19th century.

The major two phases are briefed below:

1. To hammer the spirit of cooperators among the people in the society.

Co-operative Societies in Shivamogga:

 Bharathi Credit Co-operative Society.

Some of the main objectives of Co-operative societies are as follows:

BACKGROUND AND INCEPTION OF SOCIETY

1.4 VISION AND MISSION AND OBJECTIVES

Improve the economic position of Graduate Members

Providing credit services to the door steps of Graduate members,

 To provide integrated credit packages for the graduate member.

OBJECTIES OF THE SOCIETY

1.5 PRODUCTS/ SERVICE PROFILE

 Saving bank deposit.

1.6 AREA OF OPERATION

The graduate’s Co-operative society is playing a crucial part in the improvement of

1.7 INFRASTRUCTURAL FACILITIES

1.8 COMPETITORS INFORMATION

The main competitors of Graduate Co-operative Society,

 Shivamoga District Co-operative Central Bank

1.9 SWOT ANALYSIS

1.10 FUTURE GROWTH AND PROSPECTS

Table No: 1.1: Table showing analysis of Current Ratio

Current Ratio = Current Assets / Current Liabilities

2015 – 16 57603693.28 7613798.9 7.57

2016 – 17 85642160.98 8666114.6 9.88

2017 – 18 102063841.2 8975635.1 11.37

Source: Balance sheet from 2015-2018

Graph No: 1.1

Source: Table no.1.1

Quick ratio = Quick Assets /Current Liabilities

2015 – 16 55891428 7613798.9 7.34

2016 – 17 83149146 8666114.6 9.59

2017- 18 100289894 8975635.1 11.17

Source: Balance sheet from 2015-2018

Source: Table no.1.2

Analysis & Interpretation:

Debt Equity Ratio = Long term debt /Share holder fund

Debt equity ratio

2015 - 16 124738001.7 12551450 9.94

2016 – 17 137485165.7 13105850 10.49

2017 – 18 179287212.7 14346500 12.49

Source: Balance sheet from 2015-2018

Graph No: 1.3

Debt equity ratio

Source: Table no.1.3

Total Debt to Assets Ratio = Total Debt/Total Assets

2015 – 16 124738001.7 200870945.2 0.62

2016 – 17 137485165.7 242548626.4 0.57

2017 – 18 179287212.7 301544868.6 0.59

Source: Balance sheet from 2015-2018

Total Debt to assets ratio

Analysis & Interpretation:

Table No: 1.5: Table showing analysis of Equity Multiplier Ratio.

Equity Multiplier = Total Assets / Shareholder’s Equity

Year Total Assets Shareholder’s Equity multiplier

2015 – 16 200870945.2 12551450 16.00

2016 – 17 242548626.4 13105850 18.51

2017 – 18 301544868.6 14346500 21.02