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THE SARVODAYA SAHAKARI BANK LTD.

Shree Nidhi, Khand Bazar, Varachha Road, Surat 395 006
CHAPTER 1 INDUSTRY PROFILE

1.1 Introduction of Bank 1.2 Introduction of Co-operative Bank 1.3 Three Tire Structure of Co-operative Bank in India
V.B. Shah Institute of Management, Amroli
1.1 Introduction of Bank

Origin of word Bank:
Bank word origin is originated by different views. Some experts view that word Bank is derived from word Bancus or Banque, which means Bank. Some other experts view that word Bank is originated from German word Bach which means Joint Capital.
Meaning of Bank
Bank is one type of organization, which is related with monetary activity. They collect money from class of economy and give to the other class of economy. It means they collect deposit from people and give them to the needy people as advances. In funny language you can say, Banking means my mind and other peoples money.
1. 2.
Types of Banking Institution

In India, there are two part of Banking :Organized Department Unorganized Department
First part is latest which include Joint Stock Company, Foreign Exchange Bank, Co-operative Bank, Land Mortgage Bank, Postal Saving Bank, SBI and RBI.
On the other hand, second part include Sharafi Firm, shorf, etc.
Today organized money market is about more than 60%.
1.2 Introduction of Co-operative Bank

Origin of Co-operative Bank:
The word of co-operative was (being) recognized in 1904 (when the co-operative societies Act 1904 was enacted). When the co-operative credit society was passed. The activities of co-operative was started with the main purpose of providing the advance to the member with a low interest rates, and providing advance to farmer and lower class and to make the people interested in savings.
Meaning and Definition:

Co-operation is one type of organism in which people join willingly to encourage their equal financial interest. Hewert Kelwert Co-operation is the step taken for equal profit or loss under mutual management. Management by mutually using their own resources and factors willingly. Herick M. T.
1.3 Three tire Structure of Co-operative Bank in India
State Co-operative
Centralized Co-operative
Primary Co-operative
Land co-operative
Nagarik Co-operative
1. State Co-operative Bank

These banks take a position at the higher stage in the structure of Co-operative borrowing activity. The main acts of these banks are coordination of co-operative lending its balance and playing many roles. These Co-operative banks have to keep control and watch on the district and primary Co-operative banks.
2. District Co-operative Bank:

District Co-operative banks are linked with the state Co-operative Bank and primary credit society. This bank collects the deposits from rural area and these banks supplies money to primary credit society and gives money to other institutes on a reasonable rate of interest.
3. Primary Co-operative Bank:

Primary Co-operative credit society is at the bottom of three-tire structure of Co-operative bank. Every member has to pay his share in a share capital. The price of the share is normal, so that even common man can be become a member. Here individual of a particular area meet together by sentiment of Co-operation.
There are two types of Primary Co-operative Bank Which are as follow:-
a)
Land Co-operative Bank

The main acts of these banks are providing long-terms
advance and loan to agriculture sector. Co-operative societies and Cooperative bank give only short-term and middle-term advances and not long-term, so for long-term loans, there is an independent separate bank.
b) Nagarik Co-operative bank

The meaning of Angarsk Co-operative bank is a Co-operative society. The paid up share capital of these types banks are minimum Rs.50000 which has been registered in a city area. The Angarsk Cooperative bank can do a banking business after getting licenses from RBI. The main function of the Angarsk bank should be financial transaction and paid up capital reserve in this bank should not be less than one lacs.

CHAPTER - 2 COMPANY PROFILE OF SARVODAYA SAHAKARI BANK

2.1 Brief History of Sarvodaya Sahakari Bank Ltd. 2.2 List Of Board of Directors 2.3 Branches Of Sarvodaya sahakari Bank Ltd.
2.1 Brief History of Sarvodaya Sahakari Bank Ltd.

The sarvodaya sahakari bank ltd. is laid down by Mr.Viththalbhai P. Amin, the president of Gujarat urban Co-operative bank federation, of that time. Mr. Ashabhai Patel, President of Surat District Co-operation Sangh, was the President of inauguration. Mr. Arunbhai Jariwala, the
President of Federation of Art Wearing Industries, was the special guest and blessing given by rev. Narmandnandji Maharaj. Bank is registered by low of corporate sector with the resister number SE/ 5071 dated on 12-02-1982 and certified with the license number SD/GJ/298T of Reserve Bank of India dated 3-5-1982. The bank was founded on 8-5-1982 with authorized capital of Rs.25,00,000 and the paid capital of Rs.4.14 Lacks. In the beginning there were 803 member The bank was started at 10, sadhna society, varachha road, Surat. The house of the president of the bank of that time Mr.prabhubhai Maganbhai Bhakt. The bank has been established with purpose of help to business activities and provides smooth facility to customer and party.
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In the beginning, The bank was given a limited working area of ward no.15 of S.M.C., Varachha Road from there difficult to make progress in the area in such a small work field, Although, by the showing the chart of the bank history progress everyone is impressed by the slow yet steady of the bank. For the purpose of expanding the service area of the bank, the bank has started its office at their own building with facility of centrally A.C. named SHREENIDHI near Varachha Road Subway as well as
A.K.Road, Sumul, Dairy Road, Vastadevdi Road and Station Area. By taking into consideration the requirement of electronic banking system, the directors of the bank had started to think about the computerized of the bank in 1991. In the year 1992-93 with the help of directors of the bank and their knowledge, staff members and their great efforts it become first computerized bank of Surat. The bank had started its first branch at Centre Point Building, Kadiwala School, Ring Road on 27th March,1997 and on the same year on 3rd December it had started second branch at Ved Road. After that the bank was continued its progress and started its third branch on 29th August,1999 at Puna Kumbhariya Road, Magob and fourth on 23rd November, 1999 at Sargam Shopping Centre, Parle Point.
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This is the bank, which one of the first banks not only in surat but also in south Gujarat, which has started a very modern electronic
banking facility like computers, Automatic teller machine (ATM), Visual account terminal (VAT), Currency note counting machine, Electronic token displayed, it collect the light bill of the GEB etc, are placed by bank. In the continues progress of the bank Mr.Praffulchandra Ambalal Shah, President and Directors of the bank from last 18 yrs., Mr. Vipinbhai Shah, Adviser and other staff members gives their valuable support.
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2.2 List Of Board of Directors

Chairman Shri MaheshChandra R. Lakhwala
Managing Director Shri Madhusudan N. Katargemwala
Vice Chairman Dr. Bharatbhai N. Shah
Directors Shri Prafulbhai Amablal Shah Shri Vallabhabhai Hirabhai Patel Dr. Kanaiyalal G. Mavani Shri Chandrakant N. Trivedi Shri Jayantilal M. Fudanawala ShriMati Dr.Jayaneben B. Bhakt Shri Yogeskchandra J. Parikh Shri Rameshchanra J. Reshamawala Shri Kanubhai H. Shah Shri Rajendrabhai M. Chokhawala Shri Mahendrabhai R. Kajiwala
Adviser Shri Vipinbahi N. Shah

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Organization Structure of Sarvodaya Sahakari Bank Limited

CHAIRMAN
VICE CHAIRMAN
BOARD OF DIRECTORS
CHIEF MANAGER
ADMINISTRATIVE MANAGER
MANAGER CREADIT
ASSISTANCE MANAGER CREDIT
ASSISTANCE MANAGER RECOVERY
OFFICERS
OFFICERS
CLERKS
CLERKS
PEONS V.B. Shah Institute of Management, Amroli
PEONS
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2.3 Branches Of Sarvodaya sahakari Bank Ltd.
REGD.OFFICE:
Shri Nidhi, Khand Bazar, Varachha Road, Surat-395006
(1)
Ring Road Branch (27th March,1997)

Center Point Building, Beside Kadiwala School, Ring Road, Surat
(2)
Ved Road Branch(3rd December,1997)

Ramji Chambers, Ramji Nagar, Surat.
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(3)
Puna Kumbhria Branch(29th August,1999)

N.J. Complex, Village-magob, Surat.
(4)
Athwalines Branch(23rd November,1999)

M-25, Sargam Shopping Center, Parle Point, Surat.
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CHAPTER - 3 DETAIL ACTIVITIES OF BANK DEPARTMENT

3.1 Saving Account Department 3.2 Current Account Department 3.3 Clearing Department a) Outward Clearing b) Inward Clearing 3.4 Fixed Deposit Department 3.5 Loan Department
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3.1 Saving Account Department
Saving Account means the bank with a view to encourage the peoples habit of saving. In saving account, bank accepts saving deposit from middle and low income group people, who wish to save a part of their earnings. The people, who have fear of thrift, open the savings bank account. Other people like students, salaries class, and small businessman also open this type of account. With a very small amount of Rs.1000 this account can be opened. With regard to withdrawing money from the account, there are some importance restrictions imposed on saving account. In other words, banks do not allow 25 withdrawn with in the period of 3 month and putting a limit to the amount to be withdrawn on a single day. In a one week person can withdrawn only 2 times not more than and a maximum of 150 per year are allowed. The person can be withdrawn 10% of the credit balance in a single day. But banks generally relax these rules and excess amount may be withdrawn. There are basically two types of saving account: (1) (2) Cheque Saving Account Non-cheque Saving Account (Simple Account)
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The difference between these two types of account is: In cheque saving account, person does not have to come at the bank to withdrawn money. But in the cheque saving account person has to keep minimum balance of Rs.1000. Person can-withdrawn money by the cheque. While in the simple saving account, person has to come at the bank to withdrawn money by the cheque. Person has to keep minimum balance of Rs.500. In the past time, account holder was got 5% interest. But in today present time bank provide 4% interest on saving account. To open a Sarvodya Bank account person has to fill an application form provided by the bank does it.
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3.2 Current Account Department

The main aim of current account is to put a smooth activity of business and to free the customer from the hazards (risks) of cash transactions and to supply facilities of payment to the customers. Its also recognizing with the name Demand Deposits. This account is one type of running account in which the amount is deposited and there is no any limit to drawn money. Normally this account operated by business enterprises, trades, corporation, public bodies and trustees. The customer, who have a current account may deposit money in the from of postal orders, drafts, cheque, cash etc. The banker supplies to the customer, upon opening an account, a passbook, a pay-in-slip book, and a chequebook. In the current account customer has to maintain minimum balance of Rs.3000. If customer falls to maintain minimum balance, he has to pay charge of Rs.25. This charge is different in different banks. The banks does not provide any interest on the current account deposits. During the banking hours, a customer is allowed to deposit or withdraw money. Very nominal charges are taken on current account for expenses incurred in maintaining such account by the bank. It is only through this account that a customer can collect local or out station cheques, bills and other bank instrument. Normally these collections cannot be made through the savings bank account.
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Procedure to open current account

A formal application form is given to a customer to fill it and hand over to the bank. The application form should enclose the contractual obligations that are to be met by banker and customer. A new customer should be formally introduced to banker. This means that a regular customer should introduce the new customer to banker. A new customer who wants to open a certain account also has to provide reference so that banker can make inquiries about his honesty and integrity. Once the introduction has been made satisfactorily, banker asks a new customer to give two or more specimen signature on the specimen signature card. The object is to use this to verify signatures made on bank instruments in future. If a new customer wants to have his account operated by his agent, then he has to provide written authority, so that the agent can operate the account, whose name has been mentioned in the authorization. The banker also obtain the specimen signature of the agent upon receiving the mandate, the banker verifies the application and
related documents.
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After completion of all these formalities, the banker gets the initial deposits from the customer. This deposit is credited to the customers account and in the banks ledger, his name, address, trade/occupation etc., are
recorded. The banker then gives him the necessary book such as pay-in-slip book, chequebook, and passbook.
Token Department: When customer receives the amount of cheque, it is very necessary to take token for him. Token is one type of stamp. Number is written in token. Cashier does not do payment of money without token. When customer gives cheque on token window. Banker sees details of cheque exactly and assured that money received it means issued cheque so he or another person. He takes cheque after assured it and gives token to the customer. After that he writes the token on cheque. At the tome of giving a token. Customers sign is done behind the cheque. After that, cheque is given for posting and token number, account number and the amount of cheque is noted in the appropriate register. After putting the cheque in scroll, it is sending in the cash payment and at the end of the day; all token are taken and put into the trunk. Thus, token is very essential for receiving the money.
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Passbook: Banks gives passbook to customer after open his account. Passbook means a copy of the account as per the account open in the banks ledger. Generally passbook is very useful for the customer because by which he can know condition of his account through credit or debit entries in his passbook make by the bank. The customer gets complete idea of his account form such passbook. Passbook contain with many detail like - Banks name, customer name - Address, Occupation, type of account and number of the ledger folio. Banks name, customer name, types of account and account number of customer is noted on the first page of the passbook.
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3.3 Clearing Department

Clearing means transfer the amount of cheque from bank of which have in cheque into account of party whose party name have been written in cheque. In short clearing means transfer the amount of cheque is not of a bank where the cheque is submitted but. It is other banks cheque. With the help of department of clearing, work of business and industry become very easy. So clearing department is essential part of the bank. Industries might have been weak economically without clearing. Customers can transfer amount easily with clearing department. Because it does not have to go one place to another place for that he has to fill up necessary detail in pay slip by attaching the cheque. There are two types of clearing:
a) Outward Clearing: The work of clearing department is to first collect the fill up slip with attaching the cheque. After it check fill up slip then clearing stamp is attempted on a cheque. After that cheques index number, bank code account number and amount of cheque is installed in machine. The timing of clearing department in the Sarvodya bank is 11 a.m. to 2 p.m. before 4 p.m. print out is taken out from the machine. Account holder write index number behind the cheque and that number is written with a joint cheque
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on a credit voucher. Through done at this way it will help to do summary report as a bank wise, account number wise. There are two copy taken out by machine one copy is sent to (MICR) clearing house and we have another copy of it. After all the cheque has been send to (MICR) clearing house with a summary sheet of bank list. In the clearing house list of bank is send to each bank, which is the member in the clearing house, after it all cheque are distributed to department of the name of the bank, this procedure is recognized with the name of outward clearing . In the outward clearing customer account are credited.
b) Inward Clearing: The inward clearing procedure is started after cheque distributed to all the banks department. Peon of the banks which banks are member in clearing house are return back to his bank with his bank cheque from the clearing house. After it the banker check the all the detail which written in the cheque. If there is no any mistake in the cheque it should be passed ahead, otherwise it returned. This time that persons account should be debited and clearing house should credit amount of the banks. In inward clearing when cheque comes in the bank, it can be shorted according to saving account, clearing account, order or bears dividend warrant and return cheque etc. and after filling the all information of each cheque in the machine, print out is taken on a computer.
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3.4 Fixed Deposit Department

Fixed deposit means the bank accepts particular amount for a specified period of time it may be of 1,2,3,4,or5years. Here the words time in relation to deposit is determined by banker at the time of collecting the deposit after finished this determine time bank will has to repay the deposit with interest to customer. So that fixed deposits are recognize with the name of time deposits or term deposit. In the fixed deposits customer cannot be allowed to withdrawn the mount before specified period of time and when he desires, so the banker also does not keep more cash reserve against it. If customer has to more need of money, he can take loan against fixed deposit for this he has to pay 1% interest more than interest rate on fixed deposit.
Procedure to open Fixed Deposit Account

First of all, formal applications forms get from fixed deposit department then fill up this form with mention the total amount of money & the fixed time and you have to put your signature also. After it submit form to banker at fixed deposit department and against it bank gives you a receipt, in which the acceptance of deposits is indicated and the receipt also contains the information such as Date of maturity, on which date amount will be paid back with including interest by the bank.
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Fixed deposit interest rate perform from 17/11/08

in The Sarvodaya Sahakari Bank Ltd.
30 days to 45 days 46 days to 90 days 91 days to 180 days 181 days to less than 1 year More than 1 year and less than 2 year 2 year and more than 2 year
5.00 % 6.00 % 7.00 % 8.00 % 9.00 % 9.50 %
Following Schemes are available in Bank

Sarvodaya Vikas Patra (Double on 90 months) Sarvodaya Vikas Patra (senior citizen) double on 81 months. GMIP (from 2 year to more than 2 years) interest get Rs.100 monthly on deposit of Rs.12740 GMIP (senior citizen) deposit of Rs.11540 get interest Rs.100 monthly. Sr. citizen or trust period) For registered trust (more 1\2 % interest for more then 1 year period) (more 1% interest for more than 1 year
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3.5 Loan Department

Meaning of loan
Loan is a method of lending under which bank gives credit to a borrower for a fixed period and for a specific
purpose. Loan are promises for future payment. When a banker makes an advance in a lumpsum which can not be paid wholly or partly and which the customer has permission to withdraw subsequently, it is called a Loan.
The loan amount is normally repaid in installments. Loan may be short-term, Medium-term, or Long-term.
Loan and advances are classified into secured and unsecured.
Secured loan or Advance

Loan or advances made on the security of assets. The market value of which is not at any time less than the amount of such loan or advance.
Unsecured loan or Advance

Loan or advance not so secured. The market value of which being less than the amount that has been lend at any time.
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Loan Procedure:Generally various banks following procedure for loan.
Submit the application
Appraisal of loan
Documentation
Convene to loan application
To issue draft or pay order
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Types of Loan
Generally banks grant loans for different period like shorts, medium and long and for different purpose. Broadly, the loans granted by banks classified follows:-
Bank Loan
Shortterm Lons
Medium & Long Term loan
Composite Loan
Consumption Loan
1) Short-term Loan
Short-term Loan are granted to meet the working capital needs of the borrowers. These loan are granted against the securities or tangible assets mainly the movable assets like goods and commodities, share, debenture,etc.
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2) Term Loans
Medium and long-term loan are usually called term loans. These loans are granted for more than a year and are meant for purchase of capitalassets for the establishment of new units and for expansion or diversification of an existing unit.
3) Composite Loan:When a loan is granted both for buying capital assets and for working capital purpose, it is called a composite loan, such loan are usually granted to small borrowers, such as artisans, farmers, small industries, etc.
4) Consumption Loan:Though normally banks provide loans for productivity purpose only, but as an exception loans are also granted on a limited scale to meet the medical needs or the educational expenses or expenses relating to marriages and other social core monies etc. of the needy persons such loans are called consumption loans.
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The Sarvodaya Sahakari Bank Ltd. Interest rate of 01/04/2008 onward (Decided by the board Dt.31/03/08)
LOAN TYPE
RATE OF INTERET RABATE NET RATE
-Gold loan
Up to Rs.1.00 Lac. Above Rs.1.00 Lac 11.00% 12.00% NIL NIL 11.00% 12.00%
-Personal
15%
7%
8%
-H.P. Loan
(1)stock & machinery (2)vehicle & consumer & furniture 1.Two Wheeler(Max. Rs.35000) 13.00% 2.Four Wheeler
14.00%
7%
7%
Nil
13.00%
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12.00%
Nil
12.00%
(Deposit (1)Loan /o/d against banks FDR (Fixed deposit voucher) In case of third party FDR (Deposit Rate+ 3%) Rate+ 1%)
(2)Loan , O/D against NSC/KVP/UTI/RBI BOND =)In case of NSC/KVP Upto 80% of face value =)Incase of non-cumulative UTI/ RBI bond up to 70% of face value =)Loan against LIC Policy upto 10.00% 10.00% 10.00% 10.00%
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90% of surrender value (Assignable life police only) =)70% of surrender value (Assignable investment policy)
10.00%
10.00%
10.00%
10.00%
-Loan against share

(1)Cash Credit =)Against stock & book-debt =)Against property =)Against personal guarantee (2)Property mortgage loan (3)Swarojgar loan
11%
11%
13% 14% 15% 14% 15%
7% 7% -
13% 7% 15% 7% 15%
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(4)CPCS. Limit =)upto 45 days =)46 days to 90 days =)Above 90 days 14% 16% 20% -14% 16% 20%
(5)TUFS Loan =)For 5% Interest subsidy A/Cs 14% =)For 15%to20% Capital sub. a)Only collateral sec. is given b)100% collateral sec. +10 FDR (In case of Embroider Machine 100% collateral sec. +10% FDR) 14% 13% 14% 14% 15% Nil Nil
(6)Housing Loan
12%
Nil 7%
12% 7%
(7)Loan Against Industrial Shed 14%
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(1) Gold Loan: The bank gives gold loan to customers or people on pledge of ornament of gold. First guessing the value of ornament by the goldsmith of bank. And bank grant the 40 to 50% loan on valuation of ornament of gold. Generally this loan is given for two years and after two years customer will have to return this loan with 15% interest. There are on any rebut provide by bank on gold loan.
(2) Personal loan: Personal loan advances granted to salaried employees against personal security called as personal loan. Purpose of Personal loan: For social activities For House repairing and For Medical Expenses For personal loan bank provide up to Rs.20000 and on which borrower (party) has to pay interest at 15%. If party (borrower) return personal loan with interest in 30 to 36 month. Bank provide 2% rebate on it to borrower. A properly filled application form and documents are to be submitted by the borrower. (a) (b) Proof of residence light bill Proof of income or salary
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(c) (d) (e) (f)
Letter of dedication of installment from the salary Proof of property income tax bill Signature of bank director for introduction Photograph of the applications as well as the guarantors are required.
(3) Hypothecation Loan: These types of loan given for stock, machinery, vehicle and furniture.
(a). Against Plant & Machinery: Bank provides the hypothecation loan to buy new machinery for business development and also grant loan against old machinery. Bank grant loan up to 75% face value of bill of new machinery but bank does not pay this amount to borrower, bank make payment directly to supplier after getting necessary margin from borrower. Bank also grant loan for old machinery up to 50% of valuation for the professions purpose.
(b). Against Stock: Bank provide hypothecation loan for short-term period to buy raw material for trade business.
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(c). Against Vehicle & Furniture: Bank grant hypothecation loan to purchase vehicle, T.V., refrigerator, furniture, domestic tools etc. Bank makes payment to directly to dealer. To take hypothecation loan borrower has to submit same necessary document like: Proof of residence Photograph of applicants as well as the guarantors Only filled application form with fully detail Copy of driving license Quotation of Vehicle, T.V., freeze, furniture Permanent account no. Of borrower
(4) Fixed Deposit Loan: A banker may give advance to the depositor on the security at Fixed Deposit receipt. Bank grant 50 to 80% face value of loan fixed deposit receipt. This type of loan bank generally grants against NSC/KVP, government security, share, and LIC policy. In this facility, bank charge 1% more than the fixed deposit rate from the borrower. In the case of third party bank also charge 13%, which is ever higher, or 3%more than the fixed deposit rate. There is no any rebate on fixed deposit loan.
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(5) Cash credit / Over draft: -
Cash credit:This type of loan provide to creditable customer by the bank in the form at certain limit against stock, property personal guarantee, stock and book debts for business purpose. Bank charge 15% interest from borrower against cash credit. The customer as per his fungible or security can take a loan up to that specified limit. The customer can withdraw money from his account, which is called cash credit account.
Overdraft:Overdraft means customer can withdraw more amount than the amount credited in his account. This type of advances given to the creditable customer for the purpose of business and good stock purchases for a small period of time. Overdraft is only given to current account holder against fixed deposit receipts, NSC, KVP, share certificates, LIC policy, government security and against assets. Bank may charges on such advances at the rate 15% interest.
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(6) Property mortgage loan: The bank provides property mortgage loan for the development or expansion of the business. On such advance bank may charges at the rate of 15% interest. This loan allowed only for 60 month. For property mortgage loan borrower has to submitted the necessary documents such as Signature of bank directors for introduction Photograph of borrower and guarantors Proof of residence Project report License of business Profit and loss account, capital account, provisional balance sheet of borrower from 31-3-2001 Last two years income tax return papers of borrowers and guarantors
(7) Swarojgar Loan: Swa means him self and rojgar means employment. Swarojgar loans given to self-employed persons for expansion to their business. Various selfemployed people like engineers, doctors, C.A., shopkeepers, taxi drivers, rickshaw driver can get such loan to start their profession, practice and to purchase equipment etc. On such loan bank charge at rate 15% interest and there is no any rebate on such loan. The bank grant loan up to 60% to 70% at the total amount required for starting a new business. Borrowers
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can be allowed 30 months on this loan after it borrower will has to repay loan amount with interest. The following criteria required for taking loan from the bank. Signature of director for introduction Minimum 2 sureties are compulsory with their background Borrowers background
(8) Cash Purchase Cum Credit Sales: This loan is given in the form of cash credit. The cash purchase cum credit sale arrangement by which banker allows his customer to borrow money up to a certain limit against their bond of credit by one or more sureties or against security. The bank charge on such advance at the rate of 14% (for up to 45 days), 16% (for 46 to 90 days), and 24% (for above 90 days) respectively. If there is any default in collection or payment interest should be charged @ 24% for the period of default.
(9) Technology Upgradation Fund Scheme: Indian government has issued technology upgradation fund scheme from 1-4-1999 for textile industry. Under this project government has distributed subsidy of Rs.250 million. This type of the loan is given for purchase new or secondary machinery, bank grant loan up to 80% face value of bill of machinery. In this scheme borrows get subsidy decided by the government. On such loan bank may charge at the rate of 15% interests and bank also provide 2% rebate, if borrower repay loan amount timely with interest.
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(10) Housing Loan: This loan provide for construction, additions, alteration, repair of the house etc. in the form of long-term period. Bank charge @ 14% for up to Rs.200000 and 14.5% for above Rs.200000 duration of repayment up to 60 months and for the duration of repayment above 60 month bank charge 15% for up to Rs.200000 and 15.5% for above Rs.200000 respectively. If borrower repay loan amount with interest, get 2% rebate by bank. The following criteria require for housing loan: Background of borrowers Minimum two sureties are compulsory with their background Recommendation of board of directors
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CHAPTER 4 CHEQUE
4.1 Collection of Cheque 4.2 Uses of Cheque 4.3 Types of cheque 4.4 Crossing of cheque
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4.1 Collection of Cheque

The banker is not legally bound to collect the cheque drawn on another banks on behalf of a customer. Yet modern bankers play important role and render important service by collecting the cheque, hundies, drafts on behalf of customer. The collecting banker while collecting money of cheques act in two different ways: a) As a holder for values or as an owner of documents by paying consideration. b) As an agent of a customer.
4.2 Uses of Cheque

1. It is cumbersome to make payment with large sums of cash. Therefore, cheques come handy in making heavy payments, which are also safe. 2. Acheque also serves the purpose of a receipt. In other words it is means of payment and acknowledgement of payment. 3. In case of a dispute between the parties to a cheque, it acts as an evidence of payment. 4. A chrque I endorsable with different persons as it is considered near money. 5. For bankers, it reduces the handling of money currency.
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Specimen of cheque form

Date: Pay to Rupees Saving Account No. or bearer
THE SARVODYA SAHAKARI BANK LIMITED Main branch, Surat- 395 006. Code No.
Basically there are three parties to a cheque 1. Drawer : A customer draws all writes the cheque. 2. Drawee : The bank on whom cheque is drawn. 3. Payee : The payee is the person to whom the amount
is payable.
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4.3 Types of cheque

1. Order cheque:It contains an order to pay the value of the cheque to a certain person.
2. Bearer cheque:The processor of a bearer cheque is entitled payment of the value of the cheque. Yet, the payees name need not mentioned.
4.4 Crossing of cheque

A crossed cheque is a cheque on the face of which, at the left top concern, two parallel transverse lines are drawn with or without the words, & c or account payee or any other words.
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CHAPTER - 5 FINANCIAL DEPARTMENT
5.1 Balancesheet 5.2 Profit And Loss A/C 5.3 Ratio Analysis 5.4 Progressive Report
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(5.1) THE SARVODAYA SAHAKARI BANK LTD. THE BALANCE SHEET AS AT 31ST MARCH,2009
LIABILITIES
1. Share capital a)Authorized Capital 5,00,000(each share price is Rs.100/-) b) Paid Capital Persons Govt. agency State govt. 2.Reserve Fund & Other Reserve a) Reserve Fund b) Co-ordination advertisement Fund c) 15% credit Equilization Fund 11,53,500 6. Loans 9,50,000 6,04,36,218 3,69,59,400 2. Cash in Bank a) Current b) Saving c) Fixed 3. Short Term & Call Deposit 4. Investments 5.Main/Secondary Partnership funds Nil 4,25,00,000 81,80,75,512.34 35,12,46,623 6,16,43,541.28 5,00,00,000 ATM Cash 6,25,900
Rs.
ASSETS
1. Cash on Hand
Rs.
2,43,85,742.36
48
a) Short Term Loan, d) Donation 6,50,000 Cash Credit, O.D. & B.O.E -towards Govt. & Institutional e) Doubtful Debt f) Dividend equilization Fund g) Building 39,50,000 1,73,00,000 -other real security -other security Related to above h)Development Fund i)Dep. Of building j)Income tax reserve fund k) dep. On Investment l)Bank Golden jubelly Fund m)Shareholder's gift & other fund n) Contingent pro. Against investment dep. 2,94,40,000 -other security 73,26,012.40 49,50,000 -other real security 39,08,44,337.40 34,50,000 4,55,00,000 Nil 6,20,000 14,66,000 fund -Doubtful debt Dep. & Prov. For doubtful debt b) Medium Term Loan -towards Govt. & Institutional security 2,16,92,006 (2,07,93,880.98) (2,08,03,137.26) 8,26,13,771.06 30,73,33,131 8,90,00,000 security 1,38,78,248.98
49
o) Investment fluctuation fund p) Loan rebeat fund q) Pro. For standard assets r) Contingent pro.non S.L.R.inve. Dep. 3.Main/ Secondary Partner-ship Fund 4.Funds a) Fixed Deposits 55,34,85,346.15 4,85,000 46,00,000 1,19,25,000 1,00,000
Related to above fund -Doubtful debt Dep. & Prov. For doubtful debt (75,14,725.40) (62,07,746.77)
c) Long tern loan -towards Govt. & Institutional security -other real security -other security Related to above Nil 1,81,03,488=17 Nil
b) Cash Certificate -Six Yearly 25,000
fund -Doubtful debt Dep. & Prov. For (13,92,924)
-Ten Yearly -Dashabadi Certificate c) Golden Monthly Income Plan
1,08,45,342
doubtful debt 7.Interest Accure
(13,92,924)
9,68,450
on Deposits and Investment 8.Interest Accure
1,89,20,263
2,70,51,135
on Loans
1,72,01,817.10
50
d) Sarvodaya Shreenidhi Parivar Yojna e) Sarvodaya Vikas Patra (S.V.P.) f) Pletinum Certi. g) Azadi Suvarna Jayanti Certificate 16,77.965 16,82,84,289 99,14,760 3,39,57,369 9.Bills Receivable 10.Branches Adjustment 11.Building 12.Safe Furniture & Fixture (After dep.) 13.Other h) Auto Renewal Deposit i) Flexi Deposit 1,01,86,894 4,36,29,000 Preliminary Expenses a)T.D.S. On Deposit Interest j)Compound Interest Scheme 24,51,48,543 b) Library c) Stationary Stock, k) Fixed int. scheme 74,73,000 computer Stationary & ATM card stock d) Stamp On l) Saving Deposit Document, franking stamp
20,57,341.46
1,09,16,330.91
2,02,55,517.75
19,100
19,165.50
7,89,824.73
67,911
51
Cheque System Savings Savings N.R.I. Savings Deposit Daily saving system 10,397 460 35,89,89,631.45 2,01,25,629.21
e) Clearing Adjustment f) Prepaid Expenses g) Festival Advance (Staff) h) Income Tax i) Clearing 10,50,450 8,34,140 18,519 2,68,953
m) Current Deposit
25,40,59,056.99
Difference j) Payable Service
n) Lokar Key System 5. Current Liabilities a) Reserve Bank Of India (RBI) b) Gujarat State CoOperative Bank Limited. (Sidbi Refinance) c) The Surat District Co-Operative Bank Limited.
42,47,217.21
tax k) Electricity & Telephone Deposit
18,507.92
39,580
Nil
Nil
851
52
d) The Surat Peoples Co-Operative Bank Limited. e) H.D.F.C.Bank Ltd 6.Bills For Collection 7.Branches Adjustments 8.Unpaid Interest Reserve 9.Outstanding Interest 10.Other Liabilities a) Sundry Creditors b) Miscellaneous c)Dividend d)Other Liabilities 11.Profit & Loss Profit Of Year 20072008 Less 96,95,007.48 4,39,17,518. Nil 71,55,718.70 1,36,55,975.07 18,00,437.35 3,44,21,377.49 1,72,01,817.10 Nil 20,57,341.46 Nil Nil
53
Distribution
96,93,263 1,744.48
Add Profit Of Year 20082009 2,95,18,351.20 2,95,20,095.68 12.Unexpected Liabilities a)Given Surety (2,75,378) 2,21,27,45,375.36 2,21,27,45,375.36
54
(5.2) THE SARVODAYA SAHAKARI BANK LTD. PROFIT AND LOSS A/C ON YEAR ENDED 31/3/2009
EXPENDITURE
a) Interest on loan b) Salary,rent,bonus education etc. c) Directors,commitee members fee and rent d) Rent,electric bill e) Court and lawyer fees f) Post and telephone expense g) Audit fees and consultancy fees
RS.
11,00,96,989.11
INCOME
a) Interest b) Commission, ex-change discount c) Share transfer fee d) Other income e) Locker rent income f) Profit by selling None Banking Preliminary Expenses
RS.
17,83,46,367.86 70,88,387.89
2,80,48,085.59
Nil
390.66
21,22,779.67 1,91,874
22,71,317.02 10,26,770.70
2,36,516.67
76,02,474
3,23,500
55
h) Building repairing and depreciation i) Stationary and advertise j) Govt. security premium k) Discount on loan account l) Debt amount m) Other expenses 1.Traveling exp. 2.Miscelleneous exp. 3.Clearing member fee 4.Vehicle exp. 5.Deposit insurance premium 6.Computer exp. 7.Subscription exp. 8.Staff training exp. 9.Leave travel concession (L.T.C.) 10.Lease line rent
54,21,790 12,95,686.10 52,39,817 14,84,971 2,69,734
13,350 19,08,161.5 30,600 4,34,319
17,10,008 2,22,064.40 29,216.50 1,200 1,05,759 2,53,660

56
11.Bank charges 12. Security maintenance exp. 13. F.B.T. tax Gross Profit 14. Provision for bad and doubtful debt 15. Provision for investment Depreciation fund 16.Provision for fluctuation of investment 17. Contingent pro. Against investment dep. 18.Pro. For standard assets(none SLR) Net profit(before income tax) 19. Income tax paid Net profit(after income tax)
18,432.39 1,97,443 76,400 3,66,03,351.20 Nil
Nil
Nil
4,85,000
Nil
3,61,18,351.20 66,00,000 2,95,18,351.20
19,63,35,708.13
19,63,35,908.13
57
(5.3)
RATIO ANALYSIS
INTRODUCTION OF RATIO ANALYSIS: The ratio reefers to the numerical or quantities relationship between two variables or times. The relationship of these two figure expressed mathematically is called a ratio. A ratio is calculated by dividing one item of the relationship with the other. The ratio analysis is one of the most useful and common methods of analyzing financial statement. Ratio enables the mass of data to be summarized and simplified. Ratio analysis is an instrument for diagnosis of the financial health of an enterprise.
MEANING OF RATIO:A ratio is only a comparison of the numerator with the denominator. The term ratio refers to the numerical or quantitative relationship between two figures and obtained by dividing the former by the later. Ratio analysis is an important and age old technique of financial analysis. The data given in financial statements ratio are relative form of financial data and very useful techniques to check upon the efficiency of a firm. Some ratio indicates the trend or progress or downfall of the firm.
58
a) Current Ratio = Current Assets Current Liabilities = 47,97,96,681 31,17,13,242 = 1.54 : 1 b) Quick Ratio = C.A. - Stock Prepaid Exp. C.L. B.O.D. = 47,97,96,681 7,89,825 2,68,953 31,17,13,242 - Nil = 1.53 : 1
c) Proprietary Ratio = Proprietors Fund Total Assets = 33,93,27,318 51,09,68,529 = 0.66 : 1
59
d) Debt Equity Ratio = Total Long Term Debt Shareholders Fund
= 4,97,87,255 33,93,27,318 = 1.46 : 1
e) Capital Gearing Ratio = Long term debt + Pref. share capital Equity share capital = 4,97,87,255 + Nil 3,69,59,400 = 0.013 : 1
f) Long term fund to Fixed assets Ratio = Long term fund Fixed assets = 27,59,75,718 3,11,71,848 = 8.85 : 1
60
g) Return on Equity Ratio = Net profit Total equity capital
*100
= 2,95,18,351 * 100 3,69,59,400
= 0.80 : 1
61
Comparative figure of the Banks progress
YEAR
1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
RESERVE FUND & OTHER FUND

6,23,64,389 8,71,71,087 10,87,36,552 14,24,65,800 18,55,84,601 20,52,23,419 25,89,46,620 25,66,00,731 26,99,75,124 27,59,75,718
FUND
1,06,16,15,692 1,27,74,88,235 1,42,00,27,815 1,39,80,83,848 1,56,55,51,344 1,46,88,42,297 1,43,49,93,543 1,56,89,43,601 1,59,39,28,390 1,75,00,79,485
Deposit
61,43,76,675 62,01,11,013 86,03,82,746 86,05,33,985 71,09,10,751 62,91,96,854 61,96,29,994 71,03,63,953 78,59,09,600 84,17,90,995
PROFIT OR LOSS
1,32,83,180 1,00,25,564 1,24,98,403 1,43,59,891 1,48,03,805 1,18,52,085 1,30,27,897 1,39,14,494 1,62,92,058 3,61,18,351
62
Progressive Report Chart

4 3.5
3 Profit or Loss Figure (In Crores)
2.5
Profit or Loss
1.5
0.5
0 1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 20082000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Year
63

CHAPTER -6 HUMAN RESOURCE DEPARTMENT

6.1 Meaning of Human Resources Department 6.2 Recruitment and Selection 6.3 Training 6.4 Promotion 6.5 Transfer 6.6 Wages and Salary department
64
6.1) Meaning of H.R.M.

HRM provides guideline to identify the organization, intention in requirement, selection, promotion, development, compensation and organization, leading and directing. In the other words, HRM means it is the process of attracting, holding and motivating people involving all managers line and staff.
6.2) Recruitment and Selection: Meaning of Recruitment and Selection: Recruitment is generating of application or applicants for specific positions through three common sources i.e., Advertisement, state employment exchange agencies and present employees. Selection is the process of difference between appliances in order to identify. Those with a greater likely would of success in a job. In the Sarvodaya Sahakari bank recruitment and selection is done by first pool of qualified job applicants by putting the advertisement in news paper and local channel, then test knowledge at applicants by making interview and also test his physical fitness, background and reference. Finally offer the job to applicants by board of directors, If applicants success in pass all the phase done by bank. Now this all the procedure is required when there is any vacancy in the organization. But Sarvodaya Sahakari bank take too much use of this way for selection. The most of part
65
of employee section from inside the organization. Because Sarvodaya Sahakari bank understands the rationalization. Therefore there is no need to recruit or select more employees from outside the organization.
6.3) Training: The Sarvodaya Sahakari bank is a one type of servicing organization. In every business, institute industry and service organization training is given to new selected employee to develop knowledge, attitude or social behavior. For this bank makes training programme for every new employee. In the Sarvodaya bank training is compulsory for 3 year to new employee. During this three year salary must be running and after threeyear new employee become permanent in the bank. The bank has their own branch for providing training about all departments at the bank. During new employee training seminar employee taught him about bank activity and also prepared for to do and handle the activity the work.
6.4) Promotion: In the Sarvodaya Sahakari bank promotion is given a basis of seniority/experience and good efficiency. In the bank promotion must be given when need to fill vacancy and open a new branch.
66
6.5) Transfer: In the bank transfer must be given to employee, after 4,6 and 8 month from one department to other department or one branch to other branch. So that he can able to handle every department of bank.
6.6) Wages and Salary department: In the Sarvodaya Sahakari bank wages and salary is given on the basis of employee post suck as assistant manager, system officer, officer, senior clerks, junior clerks and peons. The bank employee also given dearness allowance like medical allowance, city allowance, house rent allowance etc. at the rate of rupees which are decided in the meeting.
67

CHAPTER - 7 SWOT Analysis

S means strengths W means weaknesses O means opportunities T means threats The brief studies SWOT analyses are as under below:
(1) Strengths: - Sarvodya Sahakari bank is totally computerized bank. So that satisfied man power is more because work done easily and speedy by the computer. - All the branches staff have qualification and better experience - There is no any interference
68
- Sarvodya
Sahakari
bank
provide
facilities
of
training
and
development - As per employee profit of bank increase from 1.45 lacks to 1.63 lacks - There is no any loss has incurred by the bank from last 20 years that means profit of the bank is increase - ATM, VAT and cash counting machine facility provided by the Sarvodya Sahakari bank
(2) Weakness: The growth and performance of Sarvodya Sahakari bank has been increasing years by year since 30-5-1982 and also the working of the bank is better. So there is no any weakness of Sarvodya Sahakari bank.
(3) Opportunities: The Sarvodya Sahakari Bank can expand its service and facility like credit card and ATM for Surat locality through this facility more customers are attract toward bank. So it will be happy much helpful to both customer and bank. It can also establish its branches in industrial area of city like katargam, nana varachha, sachin etc. The Sarvodya Sahakari Bank has a golden opportunity of future growth because at in the present time so much awareness about this bank in people.
69
(4) Threats: Bank has to face: - So much competition in present time - Strike in the industry, business due to government tax and due to violence done at ant place in the country - Threat about the low speed of the recovery loans.
70
CONCLUSION
The Sarvodaya Sahakari Bank Ltd. completing 28 years. During this period bank achieve many progressive stage. The Bank has a head office and other four branch. At this way its branches are spreading in different areas of Surat city. From the study of last 2 years bank report, we can say that the rate of progress of bank is very high. It achieve the success in every field of his work. After seen the number of progress of bank, we know that it is also increase more and more in total deposit of bank. During the current year in the bank, there is increase of Rs.15.6 crore in deposit, so that total deposits are reach in Rs. 175.00 crore. During the year, 2765 application accepted for the investment and grant a advance of Rs.84.17 lakhs. 72.19 % of total advance was given to priority sector and 22.30 % of total advance was given to weaker section. From the progress of bank ,we can see that bank completely affortable to increase productivity & profitability. Bank is running democratic way. Bank given to his employee in office and through professional courses and totally work of the bank is doing by computer.
71
BIBLIOGRAPHY
Management Accounting -R.S. N. Pillai and Bagvati (S.Chand) Banking and Insurance -N.D. Gami, J.B.Patel, Sunil H. Rajani (New Popular Prakasan) Annual Report - The Sarvodaya Sahakari Bank Ltd.

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1

THE SARVODAYA SAHAKARI BANK LTD.

CHAPTER 1 INDUSTRY PROFILE

V.B. Shah Institute of Management, Amroli

1.1 Introduction of Bank

V.B. Shah Institute of Management, Amroli

Types of Banking Institution

Today organized money market is about more than 60%.

V.B. Shah Institute of Management, Amroli

1.2 Introduction of Co-operative Bank

Meaning and Definition:

V.B. Shah Institute of Management, Amroli

1.3 Three tire Structure of Co-operative Bank in India

V.B. Shah Institute of Management, Amroli

1. State Co-operative Bank

2. District Co-operative Bank:

3. Primary Co-operative Bank:

V.B. Shah Institute of Management, Amroli

Land Co-operative Bank

b) Nagarik Co-operative bank

V.B. Shah Institute of Management, Amroli

THE SARVODAYA SAHAKARI BANK LTD.

CHAPTER - 2 COMPANY PROFILE OF SARVODAYA SAHAKARI BANK

V.B. Shah Institute of Management, Amroli

2.1 Brief History of Sarvodaya Sahakari Bank Ltd.

V.B. Shah Institute of Management, Amroli

V.B. Shah Institute of Management, Amroli

V.B. Shah Institute of Management, Amroli

2.2 List Of Board of Directors

Managing Director Shri Madhusudan N. Katargemwala

Vice Chairman Dr. Bharatbhai N. Shah

Adviser Shri Vipinbahi N. Shah

Organization Structure of Sarvodaya Sahakari Bank Limited

ASSISTANCE MANAGER CREDIT

ASSISTANCE MANAGER RECOVERY

PEONS V.B. Shah Institute of Management, Amroli

2.3 Branches Of Sarvodaya sahakari Bank Ltd.

Ring Road Branch (27th March,1997)

Ved Road Branch(3rd December,1997)

V.B. Shah Institute of Management, Amroli

Puna Kumbhria Branch(29th August,1999)

Athwalines Branch(23rd November,1999)

V.B. Shah Institute of Management, Amroli

THE SARVODAYA SAHAKARI BANK LTD.

CHAPTER - 3 DETAIL ACTIVITIES OF BANK DEPARTMENT

V.B. Shah Institute of Management, Amroli

3.1 Saving Account Department

V.B. Shah Institute of Management, Amroli

V.B. Shah Institute of Management, Amroli

3.2 Current Account Department

Procedure to open current account

V.B. Shah Institute of Management, Amroli

V.B. Shah Institute of Management, Amroli

V.B. Shah Institute of Management, Amroli

3.3 Clearing Department

V.B. Shah Institute of Management, Amroli

3.4 Fixed Deposit Department

Procedure to open Fixed Deposit Account

Fixed deposit interest rate perform from 17/11/08

5.00 % 6.00 % 7.00 % 8.00 % 9.00 % 9.50 %

Following Schemes are available in Bank

V.B. Shah Institute of Management, Amroli