a project report on the surat people

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A Project Report on The Surat People’s Bank

Submitted to

BRCM College of Business Administration

Submitted by

Mistry Himanshu M

Date: 25th

June, 2012

DECLARATION:

We, mr. Himanshu mistry hereby declare that the study titled General Banking studied at The Surat Peop

We also assure that the report is prepared in partial fulfillment of Bachelor in Business

Administration, Full Time program at BRCM college of Business Administration, Veer Narmad

South Gujarat University, Surat and has not been produced before any other university or college

or institution.



P l ace : Sur a t

Da t e : 25 - 06- 2012

ACKNOWLEDGEMENT

First of all we are profoundly grateful to BRCM college of business administration, for giving us

such an opportunity to make a report that has helped us understand the applications of what I

have learnt, in professional life.

We would especially like to thank and express my cordial gratitude to Mr. Jagdishbhai Mehta

and Shri. Harish Mistry (Asst. General Manager) who provided me this opportunity to work in

such a prestigious organization, which enhanced my knowledge base and allowed me to

understand the practical application of the various aspect of Banking Sector

We are thankful to Mr. Vaibhav Dalal, who guided me at every step and solved my difficulties

at the The Surat People‟s Co-operative Bank, during my internship time.



Morover, we are deeply thankful to our faculty Mr. Mehul Mehta for all his help and support in

form of resources sharing, guiding, motivating and helping me to complete and compile my

project report.

Last but not least we are extremely thankful to our parents, family members and friends for their

help and cooperation to overcome my difficulties during our report preparation.

EXECUTIVE SUMMARY

The report contains introduction to banks, which includes past present and future of banks

and challenging for banking industry in future. Banks plays the most important role in

providing various banking services. Earlier the banks were engaged in accepting and lending

money. But in the recent past the scope of services provided by the banks has increased. The

growing completion requires prompt and efficient services to the customer at reasonable cost.

These days banks aim to provide maximum satisfaction to their customer.

The next part of the report consist the knowledge about the cooperative banks in India. It

includes history of cooperative bank in Indianite‟s features and services provide by it in rural

and urban sector. The structure of cooperative bank in India also include in it.

Then a brief introduction of The Surat People Cooperative Bank comes in next part of the

project which consist the history, vision, mission, management team and objective made by

chairman. The last year financial position of the bank is also included in this part.



Next section consist the loan and credit facility provided by the bank. This section consist

various loan provided by the bank the detail regarding those loans, procedure to recover it,

actual position of the bank in loan area, and the recommendation and the various proposals

that the cooperative could apply for maintaining its position in the region and to face the

future challenges and the suggestion for improvement.

Final section of project consis, conclusion and bibliography.

Index

Introduction 06

Marketing department 45

Production department 58

Financial department 108

Human Resource department 114

Analysis 142



WHAT IS BANKING?

Banking is the traditional sense in the business of accepting deposits of money from public

for the purpose of lending and investment. These deposits can have a distinct feature like

being withdrawn able by cheques, which no other financial institution can offer. In addition,

banks also offer financial services, which include:

• The issue of demand draft & traveler‟s cheque.

• Credit cards.

• Collection of cheques, bills of exchange.

• Safe deposit locker

• Custodian service

• Investment and Insurance service.

The business of banking is highly regulated since banks deals with money offered to them by the

public and ensuring the safety of this public money is one of the prime responsibilities of any

bank. That is why banks are expected to be prudent in their leading and investment activities.

Every bank has a compliance department, which is responsible to ensure that all the services

offered by the bank, and the processes followed are in compliance with the local regulations and

Bank‟s corporate policy.



The major regulations and act govern the banking business are:-

• Banking Regulation Act, 1949

• Foreign Exchange Management Act, 1999

• Indian Contract Act

• Negotiable Instruments, 1881

Banks lends money either for productive purposes to individual, firms, corporate etc: for

buying house property, cars and other consumer durables and for investment purposes to

individuals and others. However, banks do not finance any speculative activity. Lending is

risk taking. The depositors of banks are also assured of safety of their money by developing some

percentage of deposit in statuary Reserve likes SLR & CLR.

STANDARD ACTIVITIES OF BANK

Bank act as payment agents by conducting checking or current accounts for customers,

paying cheques drawn by customers on the bank, and collecting cheques deposited to

customers‟ current account. Banks also enable customer payments via other payment method

such as telegraphic transfer, and ATM.



Banks borrows money by accepting funds deposited on current accounts, by accepting term

deposits, and by issuing debt securities such as banknotes and bonds. Bank lends money by

making advances to customer on current account, by making installment loans, and by

investing it in marketable debt securities and other form of money lending.

Banks provide almost all payment services, and a bank account is considered independable

by most businesses, individual and government. Non-banks that provide payment service

such as remittance companies are normally considered an adequate substitute for having a

bank account.

Banks borrows most fund from households and non-financial businesses, and lend most fund

to households and non-financial businesses, but not bank lender provide a significant and in

many cases adequate substitute for bank loans, and money market funds, cash management

trusts and other non-bank financial institution in many cases provide an adequate substitute

to banks for lending saving too.

REVENUE GENERATION

A bank can generate revenue in a variety of different ways including interest, transaction fees

and financial advice. The main method is via charging interest on capital it lends out to

customer. The bank profit from the differential between the level of interest it pays for

deposits and other sources of funds, and the level of interest it charges in its lending

activities.



The difference is referred to as the spread between the cost of funds and the loan interest rate.

Historically, profitability from lending activities has been cyclical and dependant on the

needs and strength on loan customers and the stage of the economic cycle. Fees and financial

advice constitute a more stable revenue stream and banks have therefore placed more

emphasis on these revenue lines to smooth their financial performance.

• RISK AND CAPITAL

Banks face a number of risks in order to conduct their business, and how well these risks are

managed and understood is a key driver behind profitability, and how much capital a bank is

required to hold. Some of the main risks faced by banks include:

• Credit risk: risk of loss arising from a borrower who does not make payment as

promised.

• Liquidity risk: risk that a given security or asset cannot be traded quickly enough in

the market to prevent a loss (or make the required profit)

• Market risk: risk that the value of the portfolio, either an investment portfolio or a

trading portfolio, will decrease due to the change in value of the market risk factors.

• Operational risk: risk arising from execution of a company‟s business.

The capital requirement in a bank regulation, which sets a frame work on how banks and

depository institutions must handle their capital. The categorization of assets and capital is

highly standardized so that it can be risk weighted.



• ECONOMIC FUNCTION OF BANKS :-

The economic functions of banks include:

1. Issue of money, in the form of bank notes and current account subject to cheques or

payment at customers‟ order. These claims on banks can act as money because they are

negotiable or repayable on demand, and hence valued at par. They are effectively

transferable by merely delivery, in the case of banknotes, or by drawing cheques that the

payee may bank or cask.

2. Netting and settlement of payments- banks acts as both collection and paying

agents for customers, participating in inter bank clearing and settlement systems to collect,

present, be presented with, and pay payment instruments. This enables banks to economies

on reserve held for settlement of payment, since inward and outward payments offset each

other. It also enables the offsetting of payment flows between geographical areas, reducing

the cost of settlement between them.

3. Credit intermediation-banks borrow and lend back-to-back on their own account as

middle men.

4. Credit quality improvement- banks lends money to ordinary commercial and

personal borrowers (ordinary credit quality), but are high quality borrowers. The

improvement comes from diversification of banks assets and capital which provide a buffer

to absorb losses without defaulting on its obligations. However, the banknotes and deposit

are generally unsecured; if the banks into difficulty and pledge assets as security, to rise the



funding it needs to continue to operate, this puts the note holders and depositors in an

economically subordinated position.

BANKING IN INDIA:-

Banking means accepting for the purpose of lending or investing of deposits of money from

the public repayable on demand or otherwise one withdraw able by cheques, draft or

otherwise.

Banking in India has its origin as early as Vedic period. It is believed that the transaction

from money lending to money banking must have occurred even before Manu, the greater

Hindu Jurist, who has developed the sanction of his work o deposits and advances and laid

down the rules relating to rate of interest, during Mugal Period, the native bankers played a

very important role in lending money and financing foreign trade and commerce. During the

days of the east-India company, it was the turn of the agency house to carry on banking

business the general bank of India was the first joint stock bank to be established in the year

1786. The others that followed were the bank of Hindustan and The Bengal Bank. The Bank

of Hindustan is reported to have continued till 1906 while the other two failed in the

meantime. In the first half of the 19th

century the east-India company has established three

banks, The Bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Madras in

1843.



These three banks are also known as the presidency banks were amalgamated in 1920 and a

new bank- the imperial Bank of India established in 27th

January 1921. With the passing of

the State Bank Act 1955 the under taking of the imperial bank of India is taken over by

newly constituted State Bank of India.

NATIONALIZATION

The GOI issued an ordinary and nationalized the 14 largest commercial banks with effect

from the midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India,

describes the steps as a “masterstroke of political sagacity”. Within two weeks of issue of the

ordinary the parliament passed the Banking companies (acquisition and transfer of

undertaking) bill, and it received the precedential approved on 9th

August 1969.

A second dose of nationalization of 6 more commercial banks followed in1980. The stated

reason for the nationalization was to give the government more control of credit delivery.

With the second dose of nationalization, the GOI controlled around 91% of the banking

business of India. Later on, in the year 1993, the government merged New Bank of India

with Punjab National Bank. It was the only merger between nationalizes banks and resulted

in reduction of the number of nationalized banks from 20 to 19. After this, until the 1990s,

the nationalized banks grew at a pace of around 4%, closer to the average growth rate of the

Indian economy.

LIBERALIZATION



In the early 1990s, the then Narsimha Rao government embarked on a policy of

liberalization, licensing a small number of private banks. These came to be known as new

generation tech-svvy banks, and include Global Trust Bank (the first of such new generation

banks to be set in up), which later amalgamated with Oriental Bank of Commerce, Axis Bank

(earlier at UTI bank), ICICI Bank. This move, along with the rapid growth in the economy of

India, revitalized the banking sector in India, which has rapid growth with strong

contribution from the entire three sectors of banks, namely, government banks, private banks

and foreign banks.

The next stage for the Indian banking has been set up with the proposed relaxation in the

norms for foreign direct investment, where all foreign investors in banks may be giving

voting rights which could exceeds the present cap of 10%, at present it has gone upto 74%

with restriction.

The new policy shocks the banking sector in India completely. Bankers, till this time, were

used to 4-6-4 method (borrow at 4%, lend at 6%, go home at 4%) of functioning. The new

wave ushered in a modern outlook and tech-savvy methods of working for traditional banks.

All this lead to the retail boom in India. People not just demanded more from their banks but

received more.

In 2007, banking in India generally fairly mature in terms of supply, product range and reach

even through in rural India still remains a challenge for the private sector and foreign Banks.

In terms of quality of assets and capital adequacy. Indian banks are considered to have clean,

strong and transparent balance sheets relative to other banks in comparitable economies in its

region. The Reserve Bank of India is an anonymous body, with minimal pressure from the



government. The stated policy of the bank on the Indian Rupee is to manage volatility but

without any fixed exchange rate-and this has mostly been true.

With the growth in the Indian economy expected to be strong for quite some time-especially

in its service sector-the demand for banking services, especially retail banking, mortgage and

investment service are expected to be strong. One may also expect M & As, takeovers, and

assets sales.

In March 2006, The Reserve Bank of India allowed Warburg Pinups to increase its stake in

Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has

been allowed to hold more than 5% in the private sector banks since the RBI announced

norms in 2005 that any stake exceeding 5% in the private sector banks would need to be

vetted by them.

In the Indian Banking industry some of the private sector Banks operating are IDBI Bank,

ING Vyasa Bank, SBI Commercial and International Bank Ltd, Bank of Rajasthan Ltd. And

banks from the public sector include Punjab National Bank, Vijaya Bank, UCO Bank,

Oriental Bank, Allahabad Bank among others. ANZ Grindlays Bank, ABN-AMRO Bank,

American Express Bank Ltd, Citibank are some of the foreign banks operating in the Indian

Banking Industry.



INDIAN BANKING INDUSTRY

The Indian Banking system has the Reserve Bank of India (RBI) as the apex body for all

matters relating to the Banking system. It is combination of Banks of India and bankers to all

other banks as well.



The Indian Banking industry, which is governed by Banking Regulation Act of India, 1949

can be broadly classified into two major categories, non-scheduled banks and scheduled

banks.

Schedule Banks:-

These banks must have paid-up capital and reserve of less than Rs. 5000000. They must

satisfy the RBI then its affairs are most conducted in a manner detrimental to the interest of

its depositors. These are further classified as follows:

• State co-operative Banks

• Commercial Banks

Scheduled bank compromise commercial banks and the co-operative banks. In terms of

ownership, commercial banks can be further grouped into nationalized banks, the State Bank

of India and its group Banks, regional rural banks and private sector banks. These banks have

over 67000 branches spread across the country in every city and villages of all nock and

corner of the land.

Non-Schedule Banks:-

These are banks, which are not included in the second schedule of the Banking Regulation

Act, 1965. It means they do not satisfy the conditions laid down by that schedule. They are

further classifying as back:

• Central co-operative banks and primary credit societies

• Commercial banks



Commercial banks

Commercial banks in India are broadly categorized into Scheduled Commercial Banks and

Unscheduled Commercial Banks. The Scheduled Commercial Banks have been listed under

the Second Schedule of the Reserve Bank of India Act, 1934. The selection measure for

listing a bank under the second schedule was provided in section 42 (60 of the Reserve Bank

of India Act, 1934). The modern commercial banks in India cater to the financial needs of the

different sectors. The main function of the commercial banks compromise:-

• Transfer of funds

• Acceptance of deposits

• Offering those deposits as loans for the establishment of industries

• Purchase of houses, equipments, capital investment purposes etc.

• The banks are allowed to act as trustees. On account of the knowledge of the

financial market of India the financial companies are attracted towards them

to act as trustees to take the responsibility of the security for the financial

instrument like a debenture.

• The Indian Government presently hired the commercial banks for various

purposes like tax collection and refunds, payment of pension etc.

CURRENT SCENARIO

The industry is currently in a transition phase. On the one hand, the PSBs, which are

mainstay of the Indian Banking System, are in the process of shedding their flab in terms of



excessive manpower, excessive non-performing assets (NPAs) and excessive governmental

equity, while on the other hand the private sector banks consolidating themselves through

mergers and acquisition.

PSBs, which current account for more than 78% of total banking industry assets are saddled

with NPAs (a mind – boggling Rs 830 billion in2000), falling revenues from traditional

sources, lack of modern technology and a massive workforce while the new private sector

banks are forging ahead and rewriting the traditional banking business model by way of

their sheer innovation and services. The PSBs are of course currently working out

challenging strategies even at 20% of their massive employee strength has dwindled in the

wake of the successful Voluntary Retirement Schemes (VRS).

Private sector Banks have established internet banking, phone banking, anywhere banking,

and mobile banking, debit cards, automatic Teller Machine (ATMs) and combine various

other services and integrated them into the main stream banking arena, while the PSBs are

still grapping with disgruntled employees in the aftermath of successful VRS schemes. Also,

following India commitment to the W to agreement in respect of the service sector, foreign

banks, including both new and the existing ones, have been permitted to open upto 12

branches a year with effect from 1998-99 as against the earlier stipulation of 8 branches.

CO-OPERATIVE BANKING IN INDIA

Introduction of co-operative banks



A co-operative bank is a financial entity which belongs to its members, who are at the same

time the owners and the customers of their bank. Co-operative banks are often created by

persons belonging to the same local or professional community or sharing a common interest.

Co-operative banks generally provide their members with a wide range of banking and

financial services (loans, deposits, banking accounts etc.). Co-operative banks differ from

stockholder banks by their organization, their goals, their values and their governance. In

most countries, they are supervised and controlled by banking authorities and have to respect

prudential banking regulations, which put them at a level playing field with stockholder

banks. Depending on countries, this control and supervision can be implemented directly by

state entities or delegated to a co-operative federation or central body.

Even if co-operative banks organizational rules can vary according to their respective

national legislations, co-operative banks share common features as follows:

Customer-owned entities:

In a co-operative bank, the needs of the customers meet the needs of the owners, as co-

operative bank members are both. As a consequence, the first aim of a co-operative bank is

not to maximize profit but to provide the best possible products and services to its members.

Some co-operative banks only operate with their members but most of them also admit non-

member clients to benefit from their banking and financial services.

Democratic member control:



Co-operative banks are owned and controlled by their members, who democratically elect the

board of directors. Members usually have equal voting rights, according to the co-operative

principle of “one person, one vote”.

Profit allocation:

In a co-operative bank, a significant part of the yearly profit, benefits or surplus is usually

allocated to constitute reserves. A part of this profit can also be distributed to the co-

operative members, with legal or statutory limitations in most cases.

Profit is usually allocated to members either through a patronage dividend, which is related

to the use of the co-operative‟s products and services by each member, or through an interest

or a dividend, which is related to the number of shares subscribed by each member.

Co-operative banks are deeply rooted inside local areas and communities. They are involved

in local development and contribute to the sustainable development of their communities, as

their members and management board usually belong to the communities in which they

exercise their activities. By increasing banking access in areas or markets where other banks

are less present, farmers in rural areas, middle or low income households in urban areas - co-

operative banks reduce banking exclusion and foster the economic ability of millions of

people. They play an influential role on the economic growth in the countries in which they

work in and increase the efficiency of the international financial system. Their specific form

of enterprise, relying on the above-38mentioned principles of organization, has proven

successful both in developed and developing countries.

RBI Policies for co-operative banks



The RBI appointed a high power committee in May 1999 under the chairmanship of Shri. K.

Madhava Rao, Ex-Chief Secretary, Government of Andhra Pradesh to review the

performance of Urban Co-operative Banks (UCBs) and to suggest necessary measures to

strengthen this sector. With reference to the terms given to the committee, the committee

identified five broad objectives:

• To preserve the co-operative character of UCBs

• To protect the depositors‟ interest

• To reduce financial risk

• To put in place strong regulatory norms at the entry level to sustain the operational

efficiency of UCBs in a competitive environment and evolve measures to strengthen the

existing UCB structure particularly in the context of ever increasing number of weak banks

• To align urban banking sector with the other segments of banking sector in the context of

application or prudential norms in to and removing the irritants of dual control regime

• RBI has extended the Off-Site Surveillance System (OSS) to all non-scheduled urban co-

operative banks (UCBs) having deposit size of Rs. 100 Crores and above.

Types of Co-operative Banks

The co-operative banks are small-sized units which operate both in urban and non-urban

centers. They finance small borrowers in industrial and trade sectors besides professional and



salary classes. Regulated by the Reserve Bank of India, they are governed by the Banking

Regulations Act 1949 and banking laws (co-operative societies) act, 1965. The co-operative

banking structure in India is divided into following 5 components:

1. Primary Co-operative Credit Society

The primary co-operative credit society is an association of borrowers and non-borrowers

residing in a particular locality. The funds of the society are derived from the share capital

and deposits of members and loans from central co-operative banks. The borrowing powers

of the members as well as of the society are fixed. The loans are given to members for the

purchase of cattle, fodder, fertilizers, pesticides, etc.

2. Central co-operative banks

These are the federations of primary credit societies in a district and are of two types- those

having a membership of primary societies only and those having a membership of societies

as well as individuals. The funds of the bank consist of share capital, deposits, loans and

overdrafts from state co-operative banks and joint stocks. These banks provide finance to

member societies within the limits of the borrowing capacity of societies. They also conduct

all the business of a joint stock bank.

3. State co-operative banks

The state co-operative bank is a federation of central co-operative bank and acts as a

watchdog of the co-operative banking structure in the state. Its funds are obtained from share

capital, deposits, loans and overdrafts from the Reserve Bank of India. The state cooperative



banks lend money to central co-operative banks and primary societies and not directly to the

farmers.

4. Land development banks

The Land development banks are organized in 3 tiers namely; state, central, and primary

level and they meet the long term credit requirements of the farmers for developmental

purposes. The state land development banks oversee, the primary land development banks

situated in the districts and tehsil areas in the state. They are governed both by the state

government and Reserve Bank of India. Recently, the supervision of land development banks

has been assumed by National Bank for Agriculture and Rural development (NABARD).

The sources of funds for these banks are the debentures 42subscribed by both central and

state government. These banks do not accept deposits from the general public.

5. Urban Co-operative Banks

The term Urban Co-operative Banks (UCBs), though not formally defined, refers to primary

co-operative banks located in urban and semi-urban areas. These banks, till 1996, were

allowed to lend money only for non-agricultural purposes. This distinction does not hold

today. These banks were traditionally centered on communities, localities, work place

groups. They essentially lend to small borrowers and businesses. Today, their scope of

operations has widened considerably.

The origins of the urban co-operative banking movement in India can be traced to the close

of nineteenth century. Inspired by the success of the experiments related to the cooperative



movement in Britain and the co-operative credit movement in Germany, such societies were

set up in India. Co-operative societies are based on the principles of cooperation, mutual

help, democratic decision making, and open membership. Cooperatives represented a new

and alternative approach to organization as against proprietary firms, partnership firms, and

joint stock companies which represent the dominant form of commercial organization. They

mainly rely upon deposits from members and non-members and in case of need, they get

finance from either the district central co-operative bank to which they are affiliated or from

the apex co-operative bank if they work in big cities where the apex bank has its Head

Office. They provide credit to small scale industrialists, salaried employees, and other urban

and semi-urban residents.

Functions of co-operative banks

Co-operative banks also perform the basic banking functions of banking but they differ from

commercial banks in the following respects

• Commercial banks are joint-stock companies under the companies‟ act of 1956, or public

sector bank under a separate act of a parliament whereas co-operative banks were

established under the co-operative society‟s acts of different states.

• Commercial bank structure is branch banking structure whereas co-operative banks have a

three tier setup, with state co-operative bank at apex level, central / district co-operative

bank at district level, and primary co-operative societies at rural level.



• Only some of the sections of banking regulation act of 1949 (fully applicable to commercial

banks), are applicable to co-operative banks, resulting only in partial control by RBI of co-

operative banks and

• Co-operative banks function on the principle of cooperation and not entirely on

commercial parameters.

Problems of Co-operative Banks

Duality of control system of co-operative banks

However, concerns regarding the professionalism of urban co-operative banks gave rise to

the view that they should be better regulated. Large co-operative banks with paid-up share

capital and reserves of Rs.1 lakh were brought under the purview of the Banking Regulation

Act 1949 with effect from 1st March, 1966 and within the ambit of the Reserve Bank‟s

supervision. This marked the beginning of an era of duality of control over these banks.

Banking related functions (viz. licensing, area of operations, interest rates etc.) were to be

governed by RBI and registration, management, audit and liquidation, etc. governed by State

Governments as per the provisions of respective State Acts. In 1968, UCB‟s were extended

the benefits of deposit insurance.

Towards the late 1960s there was debate regarding the promotion of the small scale

industries. UCB‟s came to be seen as important players in this context. The working group



on industrial financing through Co-operative Banks, (1968 known as Damry Group)

attempted to broaden the scope of activities of urban co-operative banks by recommending

these banks should finance the small and cottage industries. This was reiterated by the

Banking Commission in 1969.

The Madhavdas Committee (1979) evaluated the role played by urban co-operative banks in

greater details and drew a roadmap for their future role recommending support from RBI and

Government in the establishment of such banks in backward areas and prescribing viability

standards.

The Hate Working Group (1981) desired better utilization of bank‟s surplus funds and that

the percentage of the Cash Reserve Ratio (CRR) & the Statutory Liquidity Ratio (SLR) of

these banks should be brought at par with commercial banks, in a phased manner. While the

Marathe Committee (1992) redefined the viability norms and ushered in the era of

liberalization, the Madhava Rao Committee (1999) focused on consolidation, control of

sickness, better professional standards in urban co-operative banks and sought to align the

urban banking movement with commercial banks.

A feature of the urban banking movement has been its heterogeneous character and its

uneven geographical spread with most banks concentrated in the states of Gujarat, Karnataka,

Maharashtra, and Tamil Nadu. While most banks are unit banks without any branch network,

some of the large banks have established their presence in many states when at their behest

multi-state banking was allowed in 1985. Some of these banks are also Authorized Dealers in

Foreign Exchange.



Introduction

The Surat People‟s Co-Operative Bank Ltd. is serving since last 88 years to the people of

Surat having network of 23 computerized branches, out of them 21 are at Surat, 1 at Vapi and

1 at Navsari.

The Bank is the "First Registered Urban Co-operative Bank" of India and among the first 13

Co-operative Banks to get the "Scheduled Bank" Status. It is the first Bank to provide the

"Depository Participant Services" in South Gujarat.

• The Bank is the "First Registered Urban Co-operative Bank" of India.

• All Branches Connected in CBS.



• Among the first 13 Co-operative Banks in September 1988 to get the "Scheduled Bank"

Status.

• The bank commenced "Total Branch Automation" in 1992-93.

• The Bank introduced "SMS Banking Facility" and "View Account Terminal" {VAT} facility

at all branches for better customer service.

• Bank started its own "Training Centre" for providing training to its employees.

• The first Bank to provide the "Depository Participant Services" in South Gujarat.

• Only coop bank of South Gujarat to have direct connectivity to RBI server for RTGS /NEFT

facility.

• Only bank to have direct connectivity with RBI server to have NECS facility.

• Only Bank to give RTGS /NEFT facility on STP basis - straight through processing.

Vision:

Our vision is to be India‟s most respected and admired urban Co-Operative bank by

influencing people‟s lives through personalized banking services and partnering them in

realizing their dreams.

Mission:

Our mission is to be a preferred financial service provider with a special focus on innovative

quality products, technical expertise & efficient services for customer achieve their objective

and goals.



Values:

We have accepted cardinal principle of corporate social responsibility and accordingly we

have tried to fulfill our social obligations to be recognized as Surat People‟s bank in real

sense.2007. Our future plan is the introduction of on and off site ATMs and Core Banking

System

Competitors of Surat People Co-Op. Bank:

There are several Banks in surat who represents as a competitors of Surat People Co-Op.

Bank and provides the same services:

• Surat National Co-op. Bank Ltd.:- SURAT NATIONAL CO-BANK LTD is

committed to provide banking services on the Co-Operative lines to across section of

population of surat district.

• To cultivate public confidence through transparency and good corporate governance.

• To ensure utmost customer satisfaction through an efficient, quick and courteous services to

them.

• To contribute to the growth of industry, trade and services in general.

• To discharge social responsibilities as in Co-Operative organization.

• To ensure welfare of the members staff and public in general.

A leading Co-operative Bank of Surat is going to complete four decades of its services to the

people of Surat City/District. And it is said that “Real life starts after forty”. On 29th July,



1972 a seed of good and efficient Co-operative Bank was sown, which has grown in to a

huge banyan tree. Our Bank carries with it an enviable heritage of 39 years. Established on

the principles of “Socialism” (Samajwad), this Bank has served to the Society at large. The

selfless devotion of the pioneers of this Bank with their lifeblood efforts inspired their

successors- directors to dedicate themselves to continue selfless services to the society.

Keeping in mind the values of self responsibilities, democracy and equality, all the past as

well as present directors servicing with their boundless enthusiasm and courage, with their

untiring zeal and patience, with their practical wisdom and sagacity in their untiring efforts in

the cause of banking and to the services of the people of Surat and for their economic growth.

This Bank was having the able-efficient pioneers leaders and Past Chairmen like Late Shri

Jayantilal B. Chokhawala (The founder Chairman of this Bank and a leading personality of

Surat City) and also like late Shri Vasantlal M. Dalal (The founder Vice Chairman of this

Bank and thereafter became the Chairman, a leading-efficient, prominent lawyer-practicing

on the Civil as well as Labour side, a think tank of “Samajwad”, always thinking of poor

people and labourers who rendered his services for about 27 years to the Bank) and many

others, led this Bank from venture to venture and changed fortunes of many people with their

smiling faces from success to success.

This Bank is not only helping small investors and weaker section of society but also playing

a vital part in the growth of the industry and commerce. This Bank was established with the

motto to serve the people of Surat, on the basis of seven cardinal principles of “Co-

operation”. It is established with 417 shareholders members with paid up share capital of

Rs.98,000=00 and on the completion of the first year it was having deposits of



Rs.9,63,900=00 by 574 depositors and lending of Rs.5,94,700=00 to 113 members. Right

from the 2nd year this Bank is giving the maximum „Dividends‟ as provided under The Co-

op. Act to its shareholder members regularly. Today at the end of 39th year, as on 31.03.2011

this Bank is having a total deposits of Rs.244.73 Crores and advances of Rs.149.49 Crores,

with total working business of Rs.394.22 Crores. This Bank is having Net „Zero‟ N.P.A.

since last many years. It has also achieved a prizes from The Gujarat Urban Co-operative

Banks Federation as the zero N.P.A. Bank. This Bank has achieved many targets and got

many prizes and awards from Surat Jilla Sahkari Sangh and South Gujarat Co-op. Banks

Association (SCOBA).

Today this Bank is rendering services to the people of Surat regarding all kinds of banking

services. This Bank is having total 8 Branches having an efficient and most Co-operative

Smiling Staff of 132 personnel.

This Bank is never involved in any scam. This Bank is not doing any Stock Market Business.

In this era of rising interest rate, we invite people and our valued customers as one of the

attractive avenue for investment of their precious capital. Please find comfortable to deposit

your valued funds in our Bank

• Sarvodaya Sahakari Bank Ltd.:- Established in the year 1982 with an authorized

Share Capital of Rs. 25.00 lacs and the paid up Share Capital of Rs. 4.00 lacs The Sarvodaya

Sahakari Bank Ltd., Surat is rightly bracketed as one of the leading and top-most co-op. banks of

the city.

From a small rental place into the centrally air-conditioned well equipped premises, Bank

had leapfrogged in the year 1991. To meet with the high-tech demand of the time, Bank got fully



computerized in the year 1993 and gratified the inhabitants of the City with its efficient services.

Thereafter many Banks took a leaf out of it and got themselves computerized.

To serve the larger number of people, the Bank kept on opening its branches. At present Bank is

having network of 7 (Seven) branches.

To compete and meet with the demand of time, in Feb‟08, Bank started implementation of CBS

facility at the Head Office, so that its customers can avail better facilities. In a short span of 1

year, it linked-up all its branches with CBS. To ease the burden of its customers and to offer

them better services, Bank has also initiated Mobile (SMS) banking services. It also desires to

offer off Site ATM services in the different areas too. Above that the Bank is to provide Internet

Banking facility to its customers shortly after completion of certain required procedures.

Realizing the fact of difficulty in the survival only on the income out of the Banking business,

the Bank has entered into the Life Insurance field with the help of “Kotak Mahindra Old Life

Insurance Ltd.” on its foundation day (i.e. 08TH May 2008) to expand and flourish. Moreover

the Bank is already at work of protecting the assets & valuables of its customers through the

General Insurance Policy in affiliation with ICICI Lombard General Insurance Co. Ltd. and is

earning handsome commission from its non-banking business.

Glimpses at a glance:

The bank became the FIRST of its kind in the South Gujarat & second in the State of Gujarat

by providing the ATM Facility to its customers SINCE 1996.

The Bank was the first Co-op. Bank in Gujarat to offer the VAT (View Account Terminal)

facility at all its branches.



Ours was the FIRST Co-op. Bank to get the approval for sanction of Term Loans under TUF

Scheme.

By “The National Federation of Co-op Credit Society “(Delhi) , the Bank got the Second

position in the year 1998 & 99 at the national level for getting Class – “A “ Audit & for being

the non-controversial Bank.

It also acquired the FIRST position in the district for the Best services at the competition

staged by the “Surat Jilla Sahakari Sangh” in the year 2001/02.

Further in the year 2008/09, Bank secured the 2nd prize for the stunning performance in the

entire south Gujarat at the function of “Toppers Award” organized by “South Gujarat Bank‟s

Association”.

Ours is the ONLY Bank in the Surat City to cater to the needs of huge no of FLOOD Victims

in the year 2006.

Also affiliated with some Charitable Institutions for a Good cause of serving persons

economically weak.

• Sutex Bank Co-Op. Ltd.:- Sutex Bank‟s proud journey started with its establishment on

15th May, 1972.

At the prime time of opening Sutex Bank its name was The Surat Textile Traders Co-Op.

Bank Ltd. Banks registered office address is Surajram Bachkaniwala Bhavan, Nr.Navjivan

Circle, Udhan Magdalla Rd.,Surat . In the year 1972 Bank‟s Establisher Chairman Late Shri



Surajram Bachkaniwala and Vice Chairman Late Shri Ashabhai Shankarbhai Patel having a

prosperous vision to provide a golden & profitable market to Surat‟s Textile Industry,

registered the bank at a cooperative level. Sutex Bank provided services With a view to

help Surat Textile Market shop keepers with banking facilities and help them start and

manage their businesses.

Sutex Bank in the initial stage started with only 270 share holders and Rs. 1.10 lacs Share

capital. As on 31st March 2012 No. of share holders Crossed 22452 and share capital of Rs.

1732.22 lacs. As on 31st DEC 2011 Bank has crossed a total deposits of Rs. 717.54 crores

And total advances of Rs.479.99 crores.

Sutex Bank has in total 14 branches and a administrative office. A new branch at Pal Road,

Surat shall open shortly.

The Bank started with only four employees and as on today it has a big circle of 214

employees. Bank has been providing up to date training to all employees of different levels.

All Sutex Bank branches are well organized and completely computerized and is one of the

leading bank‟s across South Gujarat. Sutex Bank was the first bank to provide ATM facilities

through co-op. sector to its customers. Currently bank provides complete Core Banking

Facilities to its customers. It may be noted that the Core Banking Solution was completed in

just 3 months period which included 14 branches and a admin office which showed a positive

approach and proof of determination of Sutex Bank‟s Staff. With CBS facilities banks valued

customers now can avail all kinds of banking services and facilities from any branch.



Bank leads not only in providing banking facilities but also is very active in social services.

As we know our Surat has been hit several times by natural calamities like floods where bank

has instantly helped its customers without a delay. During the Floods in Surat in the years

1994, 1998 and 2006 bank provided Loans to those who took severe damages within 24

hours which was noteworthy.

Under technology up-gradation scheme of Indian Government‟s textile industry, Sutex Bank

has got approval to provide direct advances and loans. Sutex Bank was the first bank to

achieve such approval across the nation under Urban Co-op. Banks Category.

Under the TUF scheme Bank has advanced a total of Rs.400 crores and have helped

receiving fast subsidy‟s to its share holders which has resulted in strengthening our countries

overall economy. For this achievement bank has received a honorable certificate by the

Ministry of textile.

Currently bank provides all kinds of banking facilities including CBS,E-statements, SMS

alerts, RTGS/NEFT, E-payments etc.

• The Varachha Co-Op. Bank Ltd.:- The people in Saurashtra, located in western part

of Gujarat, are always depending upon the rain-fed cultivation.

As a search for income generation in an alternate way for their survival, they have chosen

Surat city, where there is a good scope for trade in Diamond and Textile sector. Well off

people have entered into the trading sector and the others on labour front. In a phased



manner, the population of the people, involved in diamond trade, belonging to Saurashtra

increased to a sizeable extent in Surat and in particular in the area of Varachha. It was

become obvious for a necessity of a Bank for their own people; the efforts were taken by a

well known philanthropist, story writer and columnist in local dailies, Mr. P. B. Dhakecha,

founder chairman of our Bank. As such, The Varachha Cooperative Bank Ltd., came into

existence on 16th October 1995 and Inauguration ceremony was done by on the hand of

Shree Swami Sacchidanand. Some of our directors are belonging to diamond trade, who are

official site holders of getting rough block diamonds from foreign countries. At the end of the

first financial year the number of shareholders was 4484, Share Capital 57.44 lacs, Deposits

Rs.2.70 crores, Advance Rs.2.07 crores and profit stood at 4.77 lacs.

Our Bank has gradually developed the Banking activities and at the end of 5th year, with a

network of 5 branches, the share capital and reserves raised to more than 8 crores and the

deposits have crossed 100 crore mark, which is a rare phenomenon in Cooperative Banking

Sector in all over India and the number of depositors have increased 58222. The Bank has

been awarded with First Prize for the best performance among all Cooperative banks in Surat

District during the FY.2000 - 01. At present the share capital and reserves raised to nearly 40

crores. The deposit is Rs.160.70 crores Advances 78.21 crores. Total 7 branches and 130

staff members. In spite of run in a cooperative sector in the year 2001, due to Madhavpura

episode, the Bank has not only survived but also developed the base without any difficulty

due to confidence reposed upon by the public with our Bank.

They have introduced the system of quick delivery of vehicle loans, with minimum papers

and documents, without any hidden charges. Other advances of our Bank have been spread

over on the following categories:



• Vehicle Loan

• Loan against gold ornaments

• Loan on personal guarantees (Surety Loan)

• Retail trade business

• Professional and Self employed

• Loan against Bank‟s own deposits/NSC

• Cash credit – hypothecation on stocks on trade

• Technology Upgradation Finance (TUF) loan with subsidy

Besides the banking activity, the Bank has entered into the insurance business arrangement

with IFFCO-TOKIO. We are also having tie-up arrangements with insurance companies on

referral basis, as per RBI guidelines. We have covered with accident insurance cover for the

shareholders, depositors and borrowers of the Bank and we have received settlement to the

tune of Rs.1 crore from the insurance companies. The data pertaining to our Bank is being

sent to Reserve Bank of India, banking regulator of the country, through e-Mail under offsite

surveillance system (OSS) for the past 3 years.

Our Bank has been fully computerized banking system, right from inception and present

programme, front end Visual Basic and the back end (database) Oracle 10G Platform. We are

having the staff members, most of them belonging to younger generation, with energetic and

enthusiastic approach in Customer Service. The staff attendance is being controlled under



Biometric device system. CCTV system is being installed to monitor the alertness of the

entire banking activity, fitted with cameras at the vital points. Our Bank has introduced

Mobile Banking and Any Branch Banking (ABB) in the year.

THE SURAT PEOPLE ’S CO-OP. BANK LTD.

HISTORY OF BANK

With the advent of the 20th century, Co-operative Movement started in India. Late Raosaheb

Varundavan Jadav - a visionary dreamt of establishing Co-operative Bank. This Dream turned

into reality in the name of The Surat Peoples Co-operative Bank Ltd.

The Surat People ‟s Co-operative Bank Ltd was established in 1922 at Surat. Bank was

registered on 10th March, 1922 and started functioning from 21st April, 1922.The Bank was first

registered Urban Co-Operative Bank in India and became Scheduled Bank on 1st

September,1988 and among the first 13 Co-operative Banks to get the "Scheduled Bank" Status.

It is the first Bank to provide the "Depository Participant Services" in South Gujarat. The Bank is

serving since last 88 years to the people of Surat. The bank is having network of 23 branches,

wherein 21 branchess in Surat, 1 branch at Vapi and 1 branch at Navsari.



The Bank's Registered Office and its central office is located at Nanpura, surat. The Bank has a

wide network of 23 branches. The Bank has a network of over 13 ATMs providing 24 hrs a day

banking convenience to its customers in Surat, Vapi & Navsari city.

4.2 VISION, MISSION & VALUES

• Vision

Our vision is to be India‟s most respected and admired urban Co-Operative bank by influencing

people‟s lives through personalized banking services and partnering them in realizing their

dreams.

• Mission

Our mission is to be a preferred financial service provider with a special focus on innovative

quality products, technical expertise & efficient services for customer achieve their objectives

and goals.

• Values

We have accepted cardinal principle of corporate social responsibility and accordingly we have

tried to fulfill our social obligations to be recognized as surat people‟s bank in real sense.



BOARD OF DIRECTORS

• Shri Amit Gajjar (President)

•

Shri. Mukeshchandra N Gajjar (Vice- President)

• Shri. Jayvadan N Bodawala (Immediate Past President)

• Shri. Jagdishchandra S Mehta (Past President)

• Shri. Pravinchandra P Modi (Past President)

• Shri. Pravinchandra P Jariwala (Director)

• Shri. Jayvdanbhai T Jariwala (Director)

• Shri. Ashit V Gandhi (Director)

• Shri. Mukesh C Dalal (Director)

• Shri. Sunil K Modi (Director)

• Shri. Sanjiv N Tamakuwala (Director)

• Shri. Manhar N Gandhi (Director)

ADMINISTRATION

• Shri. Natwar Kothari (General Manager)

• Shri. Hemant Shah (Dy. General Manager)

• Shri. Harish Mistry (Asst. General Manager)

• Shri. Mayank Baxi (Asst General Manager)



BRANCH NETWORK

• Main Branch

• Sagrampura Branch

• Salabatpura Branch

• Bhagatalav Branch

• Mahidharpura Branch

• Khatodara Branch

• Nanpura-Athwa lines Branch

• Udhna Branch

• Katargam Branch

• Pandesara Branch

• Rander Road Branch

• Bhatar Road Branch

• Umra Jakatnaka Branch

• Sumul dairy road Branch

• Ring road Branch

• APMC Branch

• Sachin Branch

• Timaliawad Branch

• Vapi Branch

• Adajan Branch

• Varacha branch

• Citylight branch



• Navsari Branch

• Khotadara (Clearing House)

• Vasundhara Anex (Demat House)

The Surat People‟s Co-operative Bank has in all 23 branches,1 clearing house and 1 demat

house.

Marketing Department

Introduction of marketing department

Definition of marketing

“Marketing is the social process by which individuals and groups obtain what they need

and want through creating and exchanging products and value with others”- Kotler.

How bank is defining marketing?

Just like a retail company, banks have products or services that they sell to the

public to gain profits or funds to operate the business and make loans. Therefore they need

a marketing department to produce brochures, radio, print or TV ads, and generally



promote those products and services in the community. They may also organize events and

sponsor local groups to raise awareness and increase loans, service and deposits.

• The Chartered Institute of Marketing (CIM).

Marketing is the wide range of activities involved in making sure that you're

continuing to meet the needs of your customers and getting value in return. Marketing is

usually focused on one product or service. Thus, a marketing plan for one product might be

very different than that for another product. Marketing activities include "inbound

marketing," such as market research to find out, for example, what groups of potential

customers exist, what their needs are, which of those needs you can meet, how

You should meet them, etc. Inbound marketing also includes analyzing the

competition, positioning your new product or service (finding your market niche), and

pricing your products and services. "Outbound marketing" includes promoting a product

through continued advertising, promotions, public relations and sales. In the bank

marketing department makes the aware about ht policies and strategies to the people

through the communication channels and the regulation of the whole marketing department

we done by the head office who bare an expenditure of advertisement.

Marketing activities are numerous and varied because they basically include everything

needed to get a product off the drawing board and into the hands of the customer. The

broad field of marketing includes activities such as:



• Designing the product so it will be desirable to customers by using tools such as

marketing research and pricing.

• Promoting the product so people will know about it by using tools such as public

relations, advertising, and marketing communications.

• Setting a price and letting potential customers know about your product and making it

available to them.

Structure of marketing department

[Chart (2.1) Structure of marketing department]

Marketing structure is not been disclosed by the SPB bank. The handling of



marketing structure and all the related activities are carried out by may head office branch

at bhagal, surat.. However with the help of organization theory and principle it can be as

above.

• Responsibilities of marketing personal

• Achieving or exceeding agreed sales targets and building the new customer base in

the bank

• Promoting the sales of core products in an assigned area

• Building and maintaining effective business relationships with customers

Assisting in conducting promotional activities, meetings and road shows in the assigned

area to achieve the sales target.

• Ensuring the complete and error-free submission of customer‟s applications and

documentation.

• Providing sales information to team leader on regular basis.

• Providing customer‟s feedback to the team leader to improve business.

Major functions of marketing department



The functions of the marketing department of a bank are to advertise about the

bank and reach more potential customers who would open accounts with the bank. They

usually start up a campaign or a promotional scheme explaining/offering a host of benefits

that come along with the process of account opening with the bank. Such a campaign

usually results in the increase in the customer base and increased revenue/profit for the

banks.

• Marketing research and information management

Marketing research function is concerned with gathering, analyzing and interpreting data

in a systematic and scientific manner. The types of market information could be analysis of

market size and characteristics, consumer taste and preferences and change in them from

time to time. Channels of distribution and communication and their effectiveness,

economic social, political and technological environment and changes therein. A social

political and technological environment and changes therein. A bank can procure such

information from specialized market research agencies, government or can decide to collect

them.

Advertising and sales promotion

Advertising is a mass media tool used to inform, persuade or remind customers about

products or services. It is an impersonal form of communication targeted at a chosen group

through paid space or time.



Sales promotion is a short term incentive given to customers or intermediaries to promote

sales. It supplements advertising and personal selling and can be used at the time of

launching a new product or even during its maturity period.

• Product planning and management

A marketer should identify the need and want of consumers, develop suitable services and

make them available. Marketer is also requires to maintain the services according to

changing needs and requirements of his customers. Information available through market

research help product management in taking appropriate decision while planning the

marketing efforts.

• Selling

An important part of this function is organizing sales force and managing their activities.

Sales force management include recruitment, training, supervision. compensation and

evaluation of salesmen. They need to be assigned targets and territories where they can

operates. The salesmen interact with prospective purchasers fact to face in order to sell the

goods. The purchaser may be end customer or and intermediary, such as a retailer or a

dealer.

• Pricing



• Depth: the Depth of the product mix depends on the average number items included

in the product lines.

• Consistency: the constancy of the product includes the mix indicates hoe far the

product lines are interconnected with each other from the view of their final use or

production requirement.

For product mix in the bank there are so many products and policies are like as under.

If we look at the width of the product means (1) BOI Star e-Pay – for payment of Utility

Bills (2) Online Ticketing – for Railways and Airlines ticket booking (3) DGFT Online e-

Payment – for online payment of license fees (4) e-Payment of Direct & Indirect

taxes. (5) Online Payment of Custom Duty. (6) Star Share (e) Trade – for on line share

trading in which there are so many sub policies to avail with customer‟s corner. The bank

manager has informed that the formulation of policy is done from the head office.



Segmentation Targeting and Positioning

[segmentation targeting and positioning]

(1) Segmentation of Banking:

Geographic segmentation

The market is segmented according to geographic criteria- nations, states, regions,

countries, cities, neighborhoods, or zip codes. Geo-cluster approach combines demographic

data with geographic data to create a more accurate profile of specific with aspect of region

as per their need.

Demographic Segmentation

Demographic segmentation consists of dividing the market into groups based on variables

such as age, gender, family size, income, occupation, education, religion, race and

nationality which helps in to developing new strategy based on this groups.

This is partly because customer wants are closely linked to variables such as income and

age. Also, for practical reasons, there is often much more data available to help with the

demographic segmentation process.



Psychographic Segmentation

Psychographics is the science of using psychology and demographics to better understand

consumers.

Psychographic segmentation: consumer is divided according to their lifestyle, personality,

values. Aliens within the same demographic group can exhibit very different

psychographic profiles.

"Positive" market segmentation

Market segmenting is dividing the market into groups of individual markets with similar

wants or needs that a company divides into distinct groups which have distinct needs,

wants, behavior or which might want different products & services. Broadly, markets can

be divided according to a number of general criteria, such as by industry or public versus

private. Although segmentations quite different from consumer market segmentation, both

have similar objectives. All of these methods of segmentation are merely proxies for true

segments, which don't always fit into convenient demographic boundaries.

Consumer-based market segmentation can be performed on a product specific basis, to

provide a close match between specific products and individuals. However, a number of

generic market segment systems also exist, e.g. the system provides a broad segmentation

of the population of the United States based on the statistical analysis of household and

geodemographic data.



Behavioral Segmentation

In behavioral segmentation, consumers are divided into groups according to their

knowledge of, attitude towards, use of or response to a product. It is actually based on the

behavior of the consumer.

Occasions

Segmentation according to occasions, we segment the market according to the occasions

like providing policy for future or education package.

Benefits

Segmentations are according to benefits sought by the consumer.

(2) Targeting of Banking

Target strategy

• Corporate banking strategy: this market target to industry and fulfill their financial

need.

• Capital marketing: this segment is targeted on long term needs of the individual as well

as industries.

• Retail banking market: this segment is for retail investor and provides them, short term

financial credit for their personal and household needs.



(3) Positioning of Banking

The surat people‟s co operative bank has positioned itself at a higher standard of services

through product innovation for the diverse need of the individual and corporate clients.

They are more towards relationship building trust building with their customer as follows:

• customer centric

• service oriented

• product innovation

[Positioning of banking]

Product mix



There are a lot of services that are the spine of the bank itself. Such services are the

actual product of the bank. Here some products of the bank are displayed below.

6 SERVICES PROVIDED BY THE BANK

The operations department deals with the systems work. The Surat Peoples Co-operative bank

uses TCS software to carry out their banking activities. This version is the latest version of

software which is at present available to The Surat Peoples Bank.

SAVINGS ACCOUNT

Savings accounts are accounts maintained by retail financial institutions that pay interest but

can‟t be used directly as money ( for example, by writing a cheque). These accounts let

customers set aside a portion of their liquid assets while earning a monetary return. To open an

account the client has to fill up a form and has to submit KYC(know your customer which

includes address proof, identity proof, pan card and necessary documents of the client) which is

then sent to the head office and then the account is opened.

There are 2 different types savings accounts offered by The Surat People‟s co-op bank. They are

given below:



A) Simple Savings Bank Account

The account while offering you a whole range of services also addresses your latent

need of having an account by maintaining an average quarterly balance of Rs.500.

Cheque book is not provided in this type of account. To withdraw cash

from this account withdrawal slip has to be filled in.

• Average Quarterly Balance requirement Rs 500

• Free ATM Card

• Free SMS Banking

• Access through all branches in network through CBS facility and all ATM

• Free Passbook facility

B) Savings Bank Account with Cheque book:

SBC Savings Account gives instant access to money anywhere, anytime. The

minimum average quarterly balance of Rs.1000 should be maintained. Other

services like ATM facility, at par cheque book, , SMSbanking, Passbook facilities,



account statements on request, quarterly interest at 4% per annum is availed to this account

holder.

CURRENT ACCOUNTS:

Current Accounts are cheque operated accounts meant neither for the purpose of earning interest

nor for the purpose of savings but only for convenience of business hence they are non-interest

bearing accounts. In a Current Account, a customer can deposit any amount of money any

number of times. He can also withdraw any amount as many times as he wants, as long as he has

funds to his credit. Customer has to maintain a minimum average quarterly balance of Rs. 2000

DEMAT ACCOUNT:

The term Demat, in India, refers to a dematerialised account for individual Indian citizens to

trade in listed stocks or debentures, required for investors by The Securities Exchange Board of

India (SEBI). In a demat account, shares and securities are held electronically instead of the

investor taking physical possession of certificates. A Demat Account is opened by the investor

while registering with an investment broker (or sub broker). The Demat account number is

quoted for all transactions to enable electronic settlements of trades to take place.



Access to the Demat account requires an internet password and a transaction password as well as

initiating and confirming transfers or purchases of securities. Purchases and sales of securities on

the Demat account are automatically made once transactions are executed and completed

DEMAT Account Through Surat People's Bank:

Physical Security holding are converted into Electronic holdings so no fear about loss of paper

form securities, theft, fire or mutilation.

No worry about bad delivery.

Comfort / Convenience

• Speedy sale-purchase & transfer.

• No botheration for storing and preservation nor loss of securities.

• Sale-purchase, credit-debit by written mandate only.

• Freedom from inconvenience due to wrong signature and other objection in stock

exchange.

• Security transfer without share transfer forms.

• Freedom from botheration to inform change of address to all the companies.



• Rematerialisation facility available.

• Easy to pledge as security and to get loan.

• Direct credit of corporate benefits like Bonus, Market Shares and Right Share in your

account.

• Direct credit of Shares, Securities purchased from Market.

• Nominal Service Charges

• No stamp duty expense on transfer of securities.

• Saving of postal expenses and time etc.

•

Very small amount of brokerage for sale / purchase of shares and securities

• Competitive interest will be charged on loans/advances against DEMAT shares &

securities.

6.4 RECURRING DEPOSITS:



Recurring Deposit scheme will allow one with an opportunity to build up savings through regular

monthly deposits of fixed sum over a fixed period of time.

Features :

• Recurring deposits are accepted in equal monthly installments of minimum Rs 1,000 and

above in multiples of Rs 500 thereafter.

• The fixed number of installments for which a depositor can opt are 12, 24, 36, 39, 48, 60,

63, 72, 84, 96, 108 and 120 months.

• Transfer of Accounts - a recurring deposit account can be transferred from one office of

the Bank to another branch.

• The amount of installment once fixed, cannot be changed .

• Installment for any calendar month is to be paid on or before the last working day of the

month. Where there is delay in payment of installment, one can regularise the account by

paying the defaulted installment together with a penalty (at present it is @ PLR plus 4 %

for the period of delay).Fraction of a month will be treated as full month for the purpose

of calculating the penalty.

• The total amount repayable to a depositor, inclusive of interest, depends on the amount of

monthly installments and the period of deposit.

FIXED DEPOSIT (FD)



When you want to invest your hard earned money for a longer period of time and get a regular

income, Fixed Deposit Scheme is ideal.

A fixed deposit is best suited for those investors who want to invest a lump sum of money at a

low risk and are comfortable committing it for a fixed period of time, and earn a rate of interest

on the same.

Some of the salient features of a bank deposit are:

• Flexible Deposit Terms: The tenure of fixed deposits can vary from as low as 7, 15,

30 or 45 days to 3, 6 months, 1 year, 1.5 years to 5 years. The minimum deposit amount

also varies with each bank. It can range from as low as Rs.100 to an unlimited amount

with some banks. The amounts can be in multiple of Rs.100.

• Great Deals: The banks are free to offer varying rates of interest for products of

different maturities. If you are flexible in terms of deposit tenures, you might find

differential interest rates in odd tenures like 390 days or 200 days.

• Safe Investments: Bank deposits are generally safe investments because they are

insured under the Deposit Insurance & Credit Guarantee Scheme of India.



• Flexible Interest Payment Terms: A Bank Fixed Deposit gives you the option of

taking the interest income, as a lump-sum amount on its maturity as well as every quarter

(quarterly interest payment) or every month (monthly interest payment)

• Electronic Clearing: The Interest payable on Fixed Deposit can also be transferred

directly to Savings Bank or Current Account of the customer.

• Compounding: Compounding of fixed deposit interest rate is available for all more

than 3 months

Five Vital Tips on Fixed Deposits

• Check the premature withdrawal penalty before investing.

Try and invest the money in a tenure within which you will not need the money. But definitely

check on the charges applicable in case you need to withdraw in an emergency.

• Check the frequency of compounding of the deposit, when comparing

two deposit offerings.

A rate which might seem higher upfront might have a lower return if it is not compounded as

frequently. For example; Bank X offers a one year deposit at the rate of 9% compounded half



yearly – which results in an yield of 9.2%. While Bank Y offers a one year deposit at the same

rate of 9% but compounded quarterly – which results in an yield of 9.3%. You will earn more

interest on fixed deposits at Bank Y because your return is compounded annually.

• Split your Fixed Deposit investments to avoid TDS deduction.

If the interest earned is more than Rs.10,000 in a single branch in one calendar year then TDS

would be deducted. By splitting your deposits across various banks or branches you can avoid

this deduction.

• Always appoint a nominee.

When you open a fixed deposit appoint a nominee. It is essential for a quick and hassle free

transfer of accounts. The nomination facility enables the bank to release the deposit amount to

the nominee without insistence on a succession certificate or probate of the will from your legal

heirs.

Take interest payouts based on your requirements

Most banks have many interest payout options, choose the one which suits your requirements

best for example if you are retired person you could go in for monthly payments of interest.



• Fees and Charges:

Normally, there are no charges for a plain vanilla fixed deposit account. Charges are usually

levied on premature withdrawal of the deposit or taking additional features like a debit card

against it.

• Tax Implications

The interest income earned on a deposit is taxable at the same tax slab as the customer is in. It

will be added to his income in the year under the head “Other Income”.

Benefits of Fixed Deposits

• Interest paid either monthly or quarterly

• The yield or return on a fixed deposit is different from interest. Interest paid either

monthly or quarterly

• Possible to take loans against fixed deposits

• Bank fixed Deposits are exempt from income tax up to a limit of

• Rs.9, 000/- under Section 80L, though TDS is applicable on interest

earned on Fixed Deposits of Rs.10,000/- and above.



Five-year tax-saver FDs

In Budget 2006, the government extended tax benefits to five-year tax-saver deposits.

Eligible: Eligible for exemption on five-year deposits on investments up to Rs.1 lakh.

Locking Period: These fixed deposits will be locked for a five-year period from the effective

policy date.

Advantage and Disadvantage:

We cannot exercise the option of premature withdrawal. Secondly, you cannot pledge the term

deposit as collateral to secure a loan to meet your liquidity needs. Similarly, banks do not offer

overdraft facility on tax-saver deposits. Unlike the plain vanilla fixed-deposit products, these tax-

saver FD‟s do not have the sweep-in facility. This implies, you cannot link fixed deposit to the

savings account whereby the surplus funds in the savings account can be automatically invested

in this fixed deposit.

In addition, there is no overdraft facility available on the tax-saver FD. As this instrument of

saving money is special due to its tax-saving status, banks do not extend relationship benefits on

the tax-saver FD.



Duration Less than Rs. 15 Lacs

From 24-2-2011

15 Days To 45 Days 4.00









889 Days To 1095 Days 9.25

1096 Days To 1110 Days 9.50

1111 Days To 1111 Days 9.75

1112 Days To 1825 Days 9.50

1826 Days To 2120 Days 9.75

2121 Days To 2121 Days 10.00

2122 Days To 2555 Days 9.75

2556 Days To 3650 Days 8.00

These are the following special Term Deposits which are available with the bank.



LOAN FACILITIES

The bank gives different types of loans to the customers on the basis of their requirements

• Housing Loan

• Consumer Durables

• Personal Loan

• Vehicle Loan

• Cash Credit

• Mortgage

• Machinery Loan

• Bill Discounting

• Self Employment

• Loan / OD against Govt. Securities

• Education Loan

• Loans Against Shares

• Project Finance

The people in this department do the documentation part which includes filing the KYC and then

they assess whether the loan should be passed or not. For this, they check the past banking



history of the client, his creditability, tenure of the loan, mortgage securities, etc. After the bank

is satisfied that the risk is low in providing the loan then they sanction the loans.

ATM Facilities:

An automated teller machine (ATM), also known as automatic banking machine (ABM), Cash

Machine, or Cash point, is a computerized telecommunications device that provides the clients of

a financial institution with access to financial transactions in a public space without the need for

a cashier, human clerk or bank teller. On most modern ATMs, the customer is identified by

inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip that

contains a unique card number and some security information such as an expiration date or

CVVC (CVV). Authentication is provided by the customer entering a personal identification

number (PIN).

Using an ATM, customers can access their bank accounts in order to make cash withdrawals,

credit card cash advances, and check their account balances as well as purchase prepaid

cellphone credit.



The Surat Peoples Co-operative Bank has 13 ATM machines at its different branches. ATM card

of the customers is issued by the central office at Nanpura. This card is then sent to the

respective customers address through couriers. The card and pin are always sent through

different couriers for the safety purpose. On receiving the card and pin, the employee at branch

has to record it in a register. This is then dispatched to the respective customers after outward

recording.

Advantages of ATM Cards

• No hassle of carrying hard cash

• cash withdrawal upto Rs 20,000 from ATM

• Personalised PIN Number for security purposes

• accpeted worldwide.

Disadvantages of ATM Cards

• No Cash advantages

• Needs to keep proper records

LOCKERS:

Locker facility is provided by the bank to the accountholders. The lockers are of various sizes.



SIZE DESCRIPTION RENT (Rs.) + Service

Tax

A Very tiny 331

B Tiny 387

C Very Small 442

D Small 664

E Small-medium 883

F Medium 1655

G Medium-large 1983

H Large 2427

K Extra large 2758

L Largest 4412



Surrendered lockers are the lockers for which the client has withdrawn his valuables and has

returned the key to the bank. Now, the bank would change the locker keys for surrendered

lockers and then would regard them as vacant lockers. Every time, the surr endered locker‟s key

is replaced and then it is provided to other customers.

SMS Banking Services:

Bank being always ahead in customer related services has introduced a new service for our

customers. Customers will be able to remain in constant touch of the bank through their mobile

phones.

Salient features of the above mentioned SMS bank service are as follows :



• The information of all your accounts on your single cell phone.

• 24 * 7 services.

SMS service for Customers:

Customers can send SMS from their cell phones to receive below mentioned responses.

Details SMS

Current balance of Accounts 1

Back dated balance of accounts 2 DDMMYY

Cheques details 3 111111

Return clearing information & cheque returned on debit clearing 4

Other bank information 5

Help 6

Demand Draft & Pay Order services

Demand Draft is way for remitters to transfer money .

A demand draft is more secure than a normal cheque as it can only be credited to a specific

payee's account, and a customer can only be reimbursed under indemnity if the draft is lost or

stolen.



People's bank draft is a low-cost, convenient method of payments.

Bank charges as below:

DD Amount DD Charges

upto 10,000 20/-

Rs. 10001 to 60000 30/-

Rs. 60001 to 100000 Rs. 0.50 per Rs. 1000/- Maximum Rs. 560/-

Pay order is secure way to make payment. Pay order can be made of your party's name. and it is

best proof of payment of this amount and on date. so, instead of giving cheque you can make pay

order from bank and bank will make a payment from your account.

General Insurance:

• First co-operative bank, in Gujarat to obtain a Corporate Agency in General Insurance sector.

• Reserve Bank Of India granted and Insurance Regulatory and Development Authority (IRDA)

license holder.

• Mediclaim

• House-hold Insurance

• Fire and Burglary

• Personal Accident



• Shop Keepers

• Machinery Breakdown

• Overseas Mediclaim for Foreign Exchange

RTGS:

• This Real Time Gross Settlement System (hereinafter referred to as the RTGS System),

set up, operated and maintained by the Reserve Bank of India (RBI) comprises of the

RTGS application, the Inter-Bank Funds Transfer Processor (IFTP) application and the

RTGS Member (RTGS Participant) Interface application. The RTGS and the IFTP

applications will, for the purposes of this document, be referred to as the Central System

jointly. The Member Interface (hereinafter referred to as the PI) will be provided by the

R eserve Bank of India (RBI) to all the Type „A‟ and „B‟ members of the RTGS System.

• These Operating Guidelines shall be called the Real Time Gross Settlement System

• Business Operating Guidelines, 2004 and shall come into force from the date and time of

its of a member to the RTGS system and shall be complied with by all the RTGS

Members.

• Unless specifically mentioned otherwise, the „time‟, mentioned in this document, shall

mean and imply Indian Standard Time and all „amounts‟, mentioned in this document,

shall be in Indian Rupees.



• Time stamps, affixed by the Central System on the transactions and events, will be the

applicable time stamps involving the RBI and the RTGS members for all matters

relating to the Central System.

NEFT:

National Electronic Funds Transfer (NEFT) is a nation-wide system that facilitates

individuals, firms and corporate to electronically transfer funds from any bank branch to

any individual, firm or corporate having an account with any other bank branch in the

Country.

Production Department

Types of plant layout used

• Operation strategies for services

• Operation scheduling

• Quality control

• Format of Document



Types of plant lay out

Understanding first of all what plant layout is more important which will make us to

understand about banking lay out and which processes it follow.

Definition: Plant layout refers to the arrangement of physical facilities such as

machines, equipment, tools, furniture etc. in such a manner so as to have quickest flow of

material at the lowest cost and with the least amount of handling in processing the product

from the receipt of raw material to the delivery of the final product.

Objectives of good Plant Layout:

A well designed plant layout is one that can be beneficial in achieving the

following objectives:

· Proper and efficient utilization of available floor space

· Transportation of work from one point to another point without any delay

· Proper utilization of production capacity.

· Reduce material handling costs

· Utilize labor efficiently

· Reduce accidents



· Provide for volume and product flexibility

· Provide ease of supervision and control

· Provide for employee safety and health

· Allow easy maintenance of machines and plant.

· Improve productivity

• Types of plant layout:

There are mainly four types of plant layout:

(a) Product or line layout: In this type of layout the machines and equipments are

arranged in one line depending upon the sequence of operations required for the product.

It is also called as line layout. The material moves to another machine sequentially

without any backtracking or deviation i.e. the output of one machine becomes input of the

next machine. It requires a very little material handling. It is used for mass production of

standardized products.



[Product layout]

(b) Process or functional layout: In this type of layout the machines of a similar type

are arranged together at one place. This type of layout is used for batch production. It is

preferred when the product is not standardized and the quantity produced is very small.

[Process layout]

(c) Fixed position or location layout: Fixed position layout involves the movement

of manpower and machines to the product which remains stationary. The movement of

men and machines is advisable as the cost of moving them would be lesser. This type of

layout is preferred where the size of the job is bulky and heavy. Example of such type of

layout is locomotives, ships, boilers, generators, wagon building, aircraft manufacturing,

etc.



(d) Combined or group layout: A combination of process & product layout is known

as combined layout. Manufacturing concerns where several products are produced in

repeated numbers with no likelihood of continuous production, combined layout is

followed

Here The surat people‟s co operative bank‟s following process layout and fixed lay out.

• On ground floor:

• cash transaction

• opening account

• cheque receipt

• cheque book delivery

• D.D., pay order, RTGS department

• Statement of current account

•

Passbook issues and entry and ATM card issue

• A.T.M card issue

• first floor:

• banking activities

• gold coin selling

• fixed deposit

• current account opening

• RBI bond (short term-long term)

• Credit card

• Pension



• Relationship department

• ATM ping delivery

• Second floor:

• loan

• bill discount

• bill purchasing

• health insurance policy

Operation Strategy for Services

(a) Types of service design:

What is service design is more important to understand how it actually works.

Nick Marsh from Engine Service Design: 'Good service design is the process of

deliberately crafting our experience and delivery of services, to make them

more valuable for the people that use and provide them.'

Service systems range from an individual person equipped with tools of the trade

(e.g., architect, entrepreneur) to a portion of a government agency or business (e.g.,

branch office of a post office or bank) to complete multinational corporations and their

information systems (e.g., Domino's Pizza, Federal Express). Hospitals, universities,

cities, and national governments are designed service systems.

Service design is all about making the service you deliver useful, usable,

efficient, effective and desirable.



It‟s not intangible or about the f eeling you give customers or users. It's about

actual things, which service designers might call touch points. If you commission a service

designer they might:

• Help you identify problem areas and generate ideas for improvement

• Redesign your products to improve the way they allow your customers to interact while

they use a service.

• Design spaces so that they deliver a service more efficiently.

• Create printed material, websites, uniforms, adverts and the branded things that allow

you to communicate what your service is all about.

So a service design project is a strategic project which uses design techniques like

thorough client research, collaborative ideas generation and early stage prototyping and

testing to deliver services that are built around the real needs of clients, that simplify

complex problems and deliver solutions that are future focused and cost conscious.

The importance of services to our economy keeps growing and as our expectations of

value for money from our public services keep rising, designers have started working with

service providers to help them make their services better. This approach is often called

service design, but it's maybe easier to start thinking about why it is that designers can help

services.

• Designers have the tools and experience to understand what users want and need

• Their work combines technology, function and aesthetics, it's not just about the surface

level

• They are issues-centered, and work on anything from saving the planet to making

business opportunities



Well, to get down to brasses tacks, the services provide are:

• Advising and adding confirmation to LCs opened by The surat people‟s co operative

bank branches in India or at other international centers. Also, on request, advising and

adding confirmation to LCs opened by other public sector, private sector, and co-

operative sector banks in India.

• Opening LCs on India and getting them advised and confirmed through our branches in

India.

• Negotiating drafts drawn under Indian banks' LCs, whether advised through us or

otherwise, so long as they are not restricted to other banks for negotiation.

• Discounting drafts drawn under Indian banks' D/A LCs at competitive rates.

• Advisory services in respect of doing business with India, guidance in documentation for

LCs emanating from India,etc.

The surat people‟s co operative bank is following management information system to make

much effective business and attract to customers and allowing customer to access from

anywhere.

(a) Types of production process



[Types of production process]

Over here as per the characteristic of the intermittent production process, we can say that

bank is following this method in which points given below can be considered.

• Production system is flexible inters of producing new policies and products

related to consumer is very easy for the bank in case of inflation and deflation and

running this scenario.

• Design of the product changes with time to time which means the policies and

product which is offered to customer is dynamic according to the need and

requirement of the customer and which gets developed with new practices.

• We can adjust production system according to the order in which it means that as

per the need and requirement of time bank changes with its policies.

• Variety of product can be introduced to the market as per requirement of the

bank.

• Production is not continuous when it comes to the market; it comes with certain

time period after that it gets closed. In bank so many policies up till now have

been introduced and have been closed due to need of environment.

Operation Scheduling.



Operations scheduling forms a very important part and acts as the back – bone for the

performance of the manufacturing or the service organizations. With the help of the

operations scheduling, two very important factors or the aspects of the resources within

an organization

That can be pertained are as follows –

[Operation scheduling]

• In today‟s competitive world, the orders that are placed either from the side of the

customer or from the side of the assembly benches – are to be completed on or

before the contracted or the promised date. For fulfilling this, operations

scheduling plays a very critical and an essential role and completely ensures that

these dates are met.

• Operations scheduling helps in the confirmation or the revision of the tentative

delivery date that has been promised in the original quotation. Sometimes during

the operations scheduling of the work order, it may be discovered that the delivery

date originally and tentatively promised cannot be met. All this may be due to the

several problems like the materials that are required may not be available at that

particular time or may not be available immediately. This problem can also occur



due to the increased plant loading while the customer is deciding whether or not to

award the quoted job to this company.

It has been observed that the operations scheduling has a direct affect on the

effectiveness of the production function .

According to Vollman, “The priority planning and the shop floor control and the

scheduling elements ultimately determine the performance of the production system.”

If the operations scheduling is carried out in an efficient manner, then there occurs a

considerable improvement in the performance in the delivery. Also helps in the

achievement of the goals that have been set by the company. Efficient operations

scheduling playa a very critical part in the reduction of the production lead times.

In service sector like banking, insurance, education industry it becomes more important to

deliver the services which in intangible and that is of again time to time.

Priority control techniques used for scheduling jobs.

• Companies differentiate based on product volume and product variety

• Differentiation affects how the company organizes its operations

• Each kind of company operation needs different scheduling techniques

• Scheduling has specific definitions for routing, bottleneck, due date, slack and queue.

• If bank is introducing new policy to the market then bank can use the Gantt chart

Developed in the early 1900‟s by Henry Gantt to check the progress of the new policy

and can make report from that policy.



Quality Control

(A) Guidelines and objectives of quality of services provided by the firm:

Total Quality Management (TQM) is a management approach to long-term success through

customer satisfaction. In a TQM effort, all members of an organization participate in

improving processes, products, services and the culture in which they work The methods

for implementing this approach come from the teachings of such quality leaders as Philip

B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa and Joseph M.

Juan‟s core concept in implementing TQM is Deming‟s 14 points, a set of management

practices to help companies increase their quality and productivity:

Create constancy of purpose for improving products and services.

• Adopt the new philosophy.

• Cease dependence on inspection to achieve quality.

• End the practice of awarding business on price alone; instead, minimize total cost by

working with a single supplier.

• Improve constantly and forever every process for planning, production and service.

• Institute training on the job.

• Adopt and institute leadership.

• Drive out fear.

• Break down barriers between staff areas.

• Eliminate slogans, exhortations and targets for the workforce.

• Eliminate numerical quotas for the workforce and numerical goals for management.



• Remove barriers that rob people of pride of workmanship, and eliminate the annual

rating or merit system.

• Institute a vigorous program of education and self-improvement for everyone.

• Put everybody in the company to work accomplishing the transformation.

(TQM is maintained from head office and quality policy is checked by every Quarterly)

(B) Techniques used for quality control.

As such bank has not revealed the policy that they are using but certain data which is

available on net we can explain in that way that like they might be using these techniques.

Activities of operation department

There are mainly 2 activities are done in any bank that is (1) collection of deposits (2)

lending the money so in the collection of deposit they have produce a so many new

schemes.

And current running schemes like tax saving deposit, term deposit, current deposit,

and deposit schemes for NRIs in which NRI Yield Enhancing Scheme NRI Services- FAQ

.in term deposit schemes there are various schemes.

As same if the bank is ready to provide deposit schemes so it will also provides various

kinds of loans also like as under:

personal loans = there are so many schemes in the personal loan

• commercial loans

• trade finance

• SME

http://www.bankofindia.com/nriyield.aspx



http://www.bankofindia.com/faqnri.aspx






• Agriculture & Priority sector

• NRI loans

For NRIs bank has provided again various kinds of sachems like as under:

housing loans to NRIs and POIs

• NRI deposit scheme

•

Ac opening form for NRI

• NRI services FAQ

• Foreign currency deposit scheme

FAQ on education cess and security transaction tax

• Star E Remit

BANKING OPERATIONS

There are different banking operations for which there are different procedures. The bank has to

follow the rules and regulations to perform the functions.

Account Opening/ Lockers/Fixed Deposits:



In order to open an account or to issue a credit card or to take a locker basic documents that are

required are as follows:

• Filling up the form

• KYC

a). Filling up the form:

There are different forms for different types of accounts that are available at the bank. The

applicant needs to fill in the form with all the proper details and justify the same with relevant

documents. A general forms contains details like name, address (permenant and

correspondence), age, martial status etc.

In Case of issuance of credit card one also needs to submit a salary slip if he is taking a credit

card on the basis of his salary amount or else IT returns for past three years needs to be kept with

the form.

Whenever a person wishes to open a locker with the bank, along with filling up the form, he/she

needs to sign in the mustard in front of the bank official and again verify it with another

signature in mustard.

In case of opening of an savings/current account, the form needs to be sign in presence of a bank

official who than later on goes for IPV ie In Personal Verification of the client.

• KYC:



The bank before opening any deposit account will carry out due diligence as required under

KYC Guidelines “Know Your Customer”, issued by the RBI and or such other norms or

procedures adopted by the bank

The objective of obtaining KYC information is to enable the Bank to have positive identification

of its customers. This is also in the interest of customers to safeguard their hard earned money.

The KYC guidelines mandate banks to collect from their customers.

• Proof of identity:

A proof of identity means any approved government document which can enable the

bank to know your personal details like, original name, Age, sex etc various proof of

identity can be:

• PAN CARD

• ELECTION CARD

• RASHAN CARD

• PASSPORT

• Proof of address:

A proof of address means any such document which can help to let the bank know the

clients permanent and correspondence address. As the proof of address the following

documents can be termed as valid by the bank points of view.

• PASSPORT



• DRIVING LINCENCE

• BANK PASSBOOK(NOT OLDER THAN ONE QUARTER)

• LIGHT BILL

• PHONE BILL(ONLY BSNL AND MTNL LANDLINES)

• RASHAN CARD

• When does KYC APPLY?

• Opening of a new account

• Opening a subsequent account where documents as per current KYC standards not been

submitted while opening the initial account

• When the bank feels it necessary to obtain additional information from existing

customers based on conduct of the account

• When there are changes to signatories, mandate holders, beneficial owners etc. KYC will

also be carried out in respect of non-account holders approaching the bank for high value

one-off transactions.

• What has KYC got to do with opening bank account?

The first step in the laundering process for criminals is to get their money into an account with a

Bank, often using a false identity and address. The funds so deposited will be transferred to other

accounts locally or abroad or used for buying goods or services. These transactions would appear



to be like any legally earned money and becomes difficult to trace it back to its criminal past.

Banks under law should not only prevent this, but should stop criminals who wish to use the

banking channel to launder the ill-gotten money from illegal / criminal activities.

• How could this affect you as a customer?

A key defense against money laundering is to prevent accounts being opened in false identities.

Anyone wishing to open an account will therefore be asked for proof of their identity and

address. These documents have to be essentially obtained irrespective of the type of account to

be opened and the purpose for which the account is opened for. The fact that these documents are

asked for opening of account does not mean that you are suspected of money laundering.

Criminals try to appear to be normal law-abiding customers, for example they may try to open a

number of accounts using small amounts of money. Hence it is necessary to identify all

prospective account holders or customers. Any body including a criminal could falsely use your

identity, if these identity documents are not obtained.

LOCKER OPENING

To open a locker/ access a locker, account holder has to agree to the following:

• Agreement of undertaking a rental locker.

• Declaration of nomination, which is FORM SL 1A (if there is a nominee assigned with

the customer to access the locker)

• If the nomination is a minor, then two witnesses are required.

• Form to debit the rental amount from his account.



• Other conditions regarding locker like the bank can break open the locker if the locker is

not operated for more than a year.

• The employee in charge of lockers has to maintain following registers:

Locker Access Register:

• This register contains the detail as to which client has operated the locker for how much

time period (his in-time and out-time) is recorded. This register contains each transaction

on daily basis. On an average, 10 to 15 clients operate lockers daily.

• Master Key Register/ Key Allotment Register:

• This register is maintained as a proof that the key of the locker is handed over to the

client. At the time of providing the locker‟s key, the customer has to sign in the register

stating that the key has been received by him.

• Safe Deposit Register:

• In this register, the details of the locker holder are maintained. All the details whether the

locker is operated single or jointly or is there any nominee along with the address,

photograph, signature of the customer as well as the officer in charge, date on which the

locker was provided, etc.



CHEQUE CLEARING

The work of clearing department starts after the cheques have been deposited in the bank.

The work of clearing department is divided into two:

• Outward Clearing.

• Inward Clearing.

Outward Clearing:

When a customer deposits a cheque of another bank in his bank, it is known as outward clearing

for his bank. For example, a client of The Surat Peoples co-op bank deposits cheque of The Surat

People‟s Co-op Bank Ltd in his account, then this cheque will be regarded as outward clearing

cheque for The Surat Peoples co-op bank

The following process is undertaken:

• This amount of the cheque is encoded on it. For example, if a cheque is of Rs.5000, the

encode on the cheque will be 500000. The last two zeros shows the paisa.

• The total cheques of a day are sorted in batches. Each batch contains 200 cheques as per

MICR center rule. The MICR center of surat is S.B.I. There are 86 banks which

participate in the clearing process.



• Each batch of 200 cheques is known as block. Every block has a ticket on it which

contains the total amount of 200 cheques. For example, there are 4000 cheques for

outward clearing, then there will be 20 blocks of 200 cheques each. Each block ticket will

contain total amount of the specific block. There is a main ticket on which total of all the

blocks is written and even the total number of instruments is also written.

• These outward clearing cheques are then sent to the MICR center that is S.B.I.

• After the cheques are sent to the MICR center, the bank will perform their backoffice

work. The entries of outward cheques which are entered in the system are verified with

the counter(pay-in-slip).

• The entries will be checked and verified whether it is credited properly or not.

• After this the entries are posted and accordingly account will be credited.

• The MICR center machine reads the code of the bank printed on the cheque and will sort

all the cheques.

• Every bank‟s cheques will be sorted and placed in their respective boxes.

• The respective cheques of each bank will be collected by them and those cheques will be

regarded as inward cheques, the next day.

Inward Clearing:

When other bank‟s client deposits cheques of our bank in their bank, it is called outward cheques

for them. These cheques after sorting from the MICR center are received by our bank the next

morning. These are called as inward clearing cheques. For example, a client of The Surat Peoples

co-op bank draws cheque to a account holder of The Surat People‟s Co-op Bank Ltd then this

cheque is called inward clearing cheque for The Surat Peoples co-op bank.



The process of inward clearing starts after the bank receives all the cheques from the

MICR center after sorting.

• First of all, the cheques are technically verified. Technical verification includes

verification of cheque number, MICR code, alpha series(branch code), transaction code,

encoding amount. It also verifies whether the date and account payee is written properly

or not.

• The next step is, to verify the signature. The signature on the cheque is verified by the

signature stored in the system. If the signature does not verify then the cheque is not

passed and is returned back.

• Even the amount on the cheque and account number is checked whether the account

debited is correct or not.

• Zones are made consisting of 200 cheques. Each zone is checked and entered into the

system.

• These zones are verified by other person and not by the person who has entered it into the

system. This cross-checks the work and errors are minimized.

• The next step is validation. Validation means that the system will reserve the amount on

the cheque. For example, a person has Rs.6000 in his account and a cheque of Rs.5000 is

drawn by him. In this validation step, the system will reserve Rs.5000 in his account and

only Rs.1000 will be accessible in his account. If another cheque of Rs.2000 is drawn by

him then the system will show an error that the amount is not sufficient in the account.

• Posting of cheques is done after that. In posting the amount will actually get debited from

the accountholder‟s account.



• The entries which fail to be posted are generated by the system. Thus, the system will

generate a failure report. There are few reasons because of which the entries fail to get

posted. These reasons can be:

• Lack of sufficient balance in the account.

• Signature does not match the signature stored in the system

• When there is a stop payment request.

• If the account is freeze by the bank because of some legal matter, then posting of that

account is not done.

•

These cheques which fail to be posted are returned with their specific failure reason slip.

• The returned cheques are sent to the MICR center which is later on returned to the bank

in which it was deposited.

HOUSING LOAN

The housing loan procedure is as follows:

• The bank gets the file for loan from the builders. The builders pass on the file of the people who

need loan for purchasing the property.

• The bank then logins the file in the office. The bank sees the prospect of the client. It studies the

place where the customer wants to purchase the property. Bank considers some areas of Surat as

negative areas like varachcha, katargam, bestan where they don‟t provide loans. Bank provides

loans in the areas which are positive like vesu, pal, adajan, piplod.



• The employee of this department analysis the stability of income, creditability, history of

banking of the client in order to sanction the loan.

• The customer has to sign an agreement with the bank and satakhat is made. Satakhat is the initial

payment made to the builder.

• This satakhat is given to the bank and the bank does the valuation of the property. A person

appointed by the bank would do the valuation of the property on the basis of the location of the

property, rates, etc.

• Suppose the property is of Rs.500000 then bank would finance maximum 80% of the loan

amount which is Rs.400000. In rare cases, bank finance more than 80% of the loan amount.

• After the valuation, a legal opinion about the property is being taken by the advocate. The

advocate will legally check the property, whether that property is sealed by some other bank, or

is there any liability regarding that property, etc. The advocate will legally analyze the property

and if found proper, he will project a clean report. After this report is obtained, bank can provide

loan for such property.

• The credit manager will go through the case and then the RAC head would recommend the case

to the central office.

• The case gets approved from the central office and finally the loan gets sanctioned.

• The customer has to sign an agreement. The interest charged for housing loan is a floating charge

going currently at the rate of 8.75% per annum. The processing fees charged by the bank is at 1%

of the loan amount. The bank would disburse the loan amount after deducting the processing

fees.



• The loan is disbursed at each level of construction of the property as and when the payment is to

be made to the builder. The customer has to place a request to the firm to disburse the amount

when needed. The bank would check the status of the property and would disburse the amount

accordingly.

• Final stage, a sale deed is prepared by the bank, which is signed by the customer. This deed is

prepared legally at the court where all the parties are present. The sale deed includes 2

photographs of the property on which the customer and the bank official would sign. This deed

contains all the documents of the property which is under the ownership of the bank till the loan

tenure gets over.

• After bank has received his full amount of loan back from the customer, bank will release the

papers.

PROCESS OF NEFT

Step-1:

An individual / firm / corporate intending to originate transfer of funds through NEFT has to fill

an application form providing details of the beneficiary (like, name of the beneficiary, name of

the bank branch where the beneficiary has an account, IFSC of the beneficiary bank branch,

account type and account number). The application form will be available at the originating bank



branch. The remitter authorizes his/her bank branch to debit his account and remit the specified

amount to the beneficiary. Customers enjoying net banking facility offered by their bankers can

initiate the funds transfer request online. Some banks offer the NEFT facility even through the

ATMs. Walk-in customers will, however, have to give their contact details (complete address

and telephone number, etc.) to the branch. This will help the branch to refund the money to the

customer in case credit could not be afforded to the beneficiary‟s bank account or the transaction

is rejected / returned for any reason.

Step-2:

The originating bank branch prepares a message and sends the message to its pooling centre

(also called the NEFT Service Centre).

Step-3:

The pooling centre forwards the message to the NEFT Clearing Centre (operated by National

Clearing Cell, Reserve Bank of India, Mumbai) to be included for the next available batch.

Step-4:

The Clearing Centre sorts the funds transfer transactions destination bank-wise and prepares

accounting entries to receive funds from (debit) the originating banks and give the funds to

(credit) the destination banks. Thereafter, bank-wise remittance messages are forwarded to the

destination banks through their pooling centre (NEFT Service Centre).



Step-5:

The destination banks receive the inward remittance messages from the Clearing Centre and pass

on the credit to the beneficiary accounts.

TIME NORMS FOR BUSINESS TRANSACTIONS

Sr

No BUSINESS TRANSACTION

TIME

NORMS

1 ENCASHMENT OF CHEQUES 5 - 8 MIN

2

RECEIPT OF CASH

(DEPENDING ON DENOMINATIONS OF NOTES) 5 - 10 MIN

3

ISSUANCE OF DEMAND DRAFT/PAY ORDER/TERM DEPOSIT

RECEIPTS 10 - 20 MIN

4 CANCELLATION OF DEMAND DRAFT/PAY ORDER 5 - 10 MIN

5 REPAYMENT OF TERM DEPOSIT 5 - 10 MIN

6 OPENING OF ACCOUNT 15 - 20 MIN

7 RETIREMENT OF BILLS 20 - 30 MIN

8 UPDATING OF PASSBOOK (FOR A FEW ENTRIES) 5 - 7 MIN

9 STATEMENT OF ACCOUNT WITHIN 5 - 7



DAYS

10 COLLECTION OF CHEQUES : LOCAL 2 - 3 DAYS

11 COLLECTION OF CHEQUES : OUTSTATION 7 - 10 DAYS

Time norm form Business Transaction are as per RBI guidelines

Finance Department

FINANCIAL OVERVIEW OF THE BANK:

• The profit of the bank has increased by 61.76% which has reached to Rs. 39.86cr.

• Investment Rs. Crore 604.65

• Working capital Rs. Crore 1610.52

• Net Profit Rs. Crore 12.94

• Issued share fund of the bank increased by 20%. Against the approved share fund of Rs

50cr bank issued share of Rs. 43.13cr with the increment of Rs. 7.56cr.

• Reserve and other funds of the bank increased by 6.28%. As compared to previous year

Reserve and other funds the fund increased by Rs. 20.75cr which reached to Rs.

310.85cr.



• Loans and advances increased by Rs. 143.34cr which reached to Rs 821.80cr.

• Bank has maintained CRR ratio above the minimum criteria of 6% and bank has

maintained SLR ratio 29% which is much higher above the criteria of 25%.

• Gross NPA Rs. Crore 13.98 Net NPA 0%

• Share Holders 72,300

• Staff Members 408

• Proposed Dividend 15%

SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PREPARATION:

The accompanying financial statements are prepared on the historical cost basis, in accordance

with normally accepted accounting principles on going concern basis and conform to the

statutory provisions and practices prevailing within the co-operative banking industry in India.

The Bank's accounts and operations are governed by the present Byelaws, provisions of The

Gujarat State Co-operatives Societies Act, 1961 and Banking Regulation Act 1949 (as applicable



to co-operative Societies) & rules made thereunder and guidelines of regulating authorities and

Reserve Bank of India.

The Bank is operating its banking activities through Central Office, its 23 Branches and separate

Demat segment.

SIGNIFICANT ACCOUNTING POLICIES

1) FIXED ASSETS:

A) Fixed assets are stated at cost of acquisition or construction less accumulated depreciation.

Fixed assets are capitalized at cost inclusive of legal and/or installation expenses.

B) Non-refundable deposits paid for acquiring the Lease Hold Premises is being amortized over

the period of Lease. Capitalized expenses incurred on leasehold assets are capitalized separately

and depreciation is provided on such assets at WDV method (except on computers).

C) Depreciation is charged over the estimated useful life of the fixed assets on written down

value method at the following rates on all assets, except computers. As per guidelines of Reserve

Bank of India depreciation on computers is provided at flat rate of 33.33%.

2) INVESTMENTS:



In accordance with the RBI Guidelines, Investments are classified into (i) 'Held to Maturity' (ii)

Held for Trading' (iii) 'Avalilable for Sale' categories (hereinafter called 'categories'). Also,

investments are further classified and disclosed in Balance Sheet under five groups -Central &

State Government securities, other approved securities, shares, other investments with financial

institution and other investments with PSUs.

Basis of Classification:

Securities that are held principally for resale within 90 days from the date of purchase are

classified as "Held for Trading".

Investments that the Bank intends to hold till maturity are classified as "Held to Maturity". These

are carried at acquisition cost unless it is more than face value, in which case the premium is

amortized over the period remaining to maturity.

Securities which are not to be classified in above categories are classified as "Available for

Sale".

An investment is classified in any of the above categories at the time of its purchase.

Valuation of Investments:



A) Investments under' Held to Maturity' category:

These are carried at acquisition cost and not marked to market. Any premium on acquisition is

amortized equally over the remaining period of maturity of the security on straight-line basis.

Such fi amortization of premium is transferred to Premium paid on Investment Amortized A/c in

Profit and Loss Account.

B) Individual scrip classified under 'Held for Trading' and 'Available for Sale'

category;

The valuation of investments held under available for sale category is determined security/script

wise as per RBI guidelines and in accordance with methodology and value determined by Fixed

Income Money Market and Derivatives Association of India (FIMMDA) and Primary Dealers

Association of India (PDAI).

Each security is revalued at the market price or fair value determined as per Regulatory

Guidelines and only the net depreciation of each group for each category is provided for and net

appreciation if any is ignored. On provision for depreciation, the book value of the individual

securities remains unchanged after marking to market.

C) Investments are classified as performing and non-performing based on the guidelines issued

by RBI. (Income Recognition and Asset Classification norms).



3) ADVANCES:

Advances are shown in balance sheet at its actual out-standing balances and Provisions for PA

and NPAs are made on the basis of asset classification & provisioning requirements under the

prudential B. norms laid down by the Reserve Bank of India from time to time.

4) ACCOUNTING FOR PROVISION, CONTINGENT,

LIABILITIES/ASSETS

The Bank‟s policy is the ensure that the balance is provisions, specific funds (provisions) and

assets are adequate to cover the probable outflow of any expenses/liabilities and total principal

amount outstanding in respect of all Non - Performing Advances, as also all other contingencies

including Un-serviced and doubtful Investments and accordingly recognizes the provisions only

when a reliable estimate of the amount of the obligation can be made.

Any liability of disputed nature in taxation has been fully provided for in the books of account.

5) STAFF BENEFITS:

Provident Fund: Eligible employees receive benefit from Provident Fund, which is defined

contribution plan. The contribution made by Bank is charged to Profit and Loss Account. The

Bank has no further obligations under the provident fund plan beyond its monthly contribution.



Provision for Retirement Benefit & Staff Gratuity Fund; As per consistent policy adopted by the

Bank, every year the provision for retirement benefit & staff gratuity have been made out of

profit by transferring the appropriate amount to specific (earmarked) reserve fund as considered

appropriate by the management. Further, as per RBI guidelines, additional liability for staff

gratuity for enhanced limit (i.e. from Rs 3.50 Lacs to Rs 10.00 lacs) shall be amortized over 5

years beginning from this financial year 2010-11, subject to a minimum of 1 /5th of total amount

involved. Payment of actual amount of obligation on retirement benefit and gratuity benefit to

eligible employees is made out of such specific reserve fund during the year.

6) PROVISION FOR TAXATION:

Income tax expense is accrued in accordance with AS 22 -"Accounting for Taxes on Income"

which includes current taxes and deferred taxes on estimated basis.

Deferred income taxes reflect the impact of current year timing differences between taxable

income and accounting income for the year and reversal of timing differences of earlier years.

Impact of unrecognized past deferred taxes due to differences between past taxable income and

past accounting income has been reflected and charged to Profit & Loss Accounts. Deferred tax

assets are recognized only to the extent that there is reasonable certainty that sufficient future

taxable income will be available.



Current year taxes are determined in accordance with the prevailing tax rate and tax laws on

estimated basis.

7) REVENUE RECOGNITION:

Interest Income is recognized in Profit and Loss account on accrual basis except in following

cases;

A) Interests on Non Performing Assets (including overdue bills) & Non Performing

investments are recognized on realization basis, as per RBI Guidelines.

B) Commission & dividend income are recognized on realization basis.

C) Insurance claims are recognized on cash basis.

Human Resource Department

Human resource management

(1) Activities of personnel management

(2) Hierarchy structure of organization



(3) Recruitment & selection process

(4) Hr planning

(5) Training and development

(6) Promotion and Transfer

(7) Performance appraisal system

(8) Wages & salary structure

(9) Employee welfare

[Human resource management]



Activities of personnel department

The success of an organization depends on the capacities and capabilities of its

personnel. Unless an organization devotes enough resources on the development of its

human resource, it would not get the required output from its personnel. An organization‟s

commitment to the development of human resource has to be reflected in its policies,

procedures, practices, customs and ideals.

(1)HR Manager‟s activities.

The activities carried out by HR MANAGER will

vary widely according to the needs of the organization, the context within which

they work and their own capabilities. He devotes his service as under.

As a broad guideline, the HR provide services to the organization

-humanresourceplanning

-recruitment/selection

-employee development

-reward systems

-employee relations

-health/safety management

-staff amenities



-salary administration

-personnel administration

• BUSINESS PARTNER ROLE.-

Share responsibility with their line management for the success of the business and

the running of the business.

• STRATEGIST ROLE-

contribute to the long term / strategic organizational issues like people selection,

people requirement, people development, organization development, quality of work life

etc.

• INTERVENTIONIST ROLE-

Proactively contributes to the change management, people management, team

development, new technology introduction etc

• INTERNAL CONSULTANCY ROLE-

acts as a management consultant on HR ISSUES working

alongside the line managers.

• MONITORING ROLE-

monitors the implementation of HR policies / procedures.



Hierarchy structure of organization

[Hierarchy structure of organization]

Hierarchy of man power in organization



[Hierarchy man power of organization]

Note: 1) 10th

, 9th

, 8th

---middle management



2) 4th

, 5th

, 6th

, 7th

---top management

3) 1st, 2

nd, 3

rd---junior management

Recruitment & Selection Process

In the recruitment and selection process bank has its unique way. Bank haired the

recruitment committee for the applicable candidate to be gets selected by the board. Careful

selection of an employee is very important. A misfit will cause serious consequences.

Employees, who are selected for work unsuitable to their aptitude and training, usually tend

to be inefficient. This upsets other employees and affects the general morale. Moreover,

badly selected employees do not usually stay long with the organization. Either they leave

or discharged or the time and money spent on them is wasted. A good recruitment

procedure will influence the successful candidate in his future attitude to the firm.



• Recruitment – meaning

Process of identifying and hiring best-qualified candidate (from within or outside of

an organization) for a job vacancy, in a most timely and cost effective manner

• sources of recruitment

[Sources of recruitment]

For recruitment each eligible candidate is given a equally chance to get enroll and there are

some specific seats for SC/SEBC/ST/OBC with this policy the bank are doing there

recruitment .in the above diagram the sources which are the sources from where generally

banks recruit the candidate.



• Factors affecting recruitment policy

There are mainly 2 factors which affect the recruitment most while screening

out candidate is as below.

Factors affecting recruitment policy

[Factors affecting recruitment policy]

As discussed earlier, the recruitment committee is called for selection of

applicable candidate and that committee is paid for the said work and after recruiting the



candidate the selection procedure begins after facing the entire recruitment problems,

selection procedure takes place.

(2) Selection process

The Employee selection Process takes place in following order

1. Preliminary Interviews- It is used to eliminate those candidates who do not meet

the minimum eligibility criteria laid down by the organization. The skills, Academic and

family background, competencies and interests of the candidate are examined during

preliminary interview. Preliminary interviews are less formalized and planned than the

final interviews. The candidates are given a brief up about the company and the job profile;

and it is also examined how much the candidate knows about the company. Preliminary

interviews are also called screening interviews.

2. Application blanks- The candidates who clear the preliminary interview are

required to fill application blank. It contains data record of the candidates such as details

about age, qualifications, reason for leaving previous job, experience, etc.



3. Written Tests- Various written tests conducted during selection procedure are

aptitude test, intelligence test, reasoning test, personality test, etc. These tests are used to

objectively assess the potential candidate. They should not be biased.

4. Employment Interviews- It is a one to one interaction between the interviewer

and the potential candidate. It is used to find whether the candidate is best suited for the

required job or not. But such interviews consume time and money both. Moreover the

competencies of the candidate cannot be judged. Such interviews may be biased at times.

Such interviews should be conducted properly. No distractions should be there in room.

There should be an honest communication between candidate and interviewer.

5. Medical examination- Medical tests are conducted to ensure physical fitness of

the potential employee. It will decrease chances of employee absenteeism.

6. Appointment Letter- A reference check is made about the candidate selected and

then finally he is appointed by giving a formal appointment letter.

Bank is following the same pattern.



[Selection process]

Hr planning

The development of strategies for matching the size and skills of the workforce to

organizational needs. Human resource planning assists organizations to recruit, retain, and



optimize the deployment of the personnel needed to meet business objectives and to

respond to changes in the external environment. The process involves carrying out a skills

analysis of the existing workforce, carrying out manpower forecasting, and taking action to

ensure that supply meets demand. This may include the development of training and

retraining strategies. In the bank branch hr planning plays an important role to recruit

people, managing them in bank, to plan future of the bank as well as the employee. HR

planning is done at very higher level in the bank and then applicable to other branches.

[Hr planning]



Training & development activities

After selection procedure it becomes necessary to retain an employee in the firm for

long time and for that with upgrading technology his/her knowledge should be upgraded

time to time it means he should be provided knowledge as per the requirement

In this firm they give the knowledge but in terms of development oriented. there

have firmed mid term policy called VISION -2013 for 700 officers and 500 clerical staff

members and motivational programmed called MERCHING AHEAD PROGRAMME is

being developed for clerical staff.

There are in-house training systems which upgrade the knowledge of practical

environment, specific group of employees. They have developed the location programmed

which gives the easiness of learning in company programmed area of outside training is

also given. Leadership development system is also done by the Development officer to

increase the skill of manager.

It‟s all about not to give the knowledge of current state of affairs but also to

enhance the capabilities of the individual. So it is basically development oriented training.

• In terms of educational ways of training & development

• Optimum Utilization of Human Resources



• Development of Human Resources

• Development of skills of employees

• To increase Productivity

• To raise Team spirit

• To develop organization Culture

• Organization Climate

• Healthy work environment

• To increase morale of employee

Training and Development aids in organizational development i.e.

Organization gets more effective decision making and problem solving. It helps in

understanding and carrying out organizational policies .diagram is given as below.

Diagram of training and development.



[Diagram of training and development]

Promotion & transfer policies



Basically in the banks promotion and transfer is done from the main branch

through the CMD of the bank. So the rules is follows here as same. Transfer can be given

in any state of the India. It depends on the activities and the profit of the branch is shown

by the CMD and then they are given transfer to different places for the scale 1 to 3 officers

it can be done on the overall India bases. However the scale increases the transfer places

got decreased in terms of distance if the bank report shows lacking of proper profit it will

set a committee for inspection for finding out the reason for decreasing profit of particular

branch and till then he is given leave for the time. Promotion is purely based on

performance based employee‟s also and the branch working profit also. and workmen

staff‟s promotion or transfer is done on the bases of their wish it means that if workmen

staff needs then only transfer is being given. And for the officers it is done on through HO

from Bombay.

• •

Promotion & transfer policies according to theory

• Transfer:

1.A changing of ownership, such as real estate, a security from one to another

2. A movement of funds from one account to another.



• Promotion:

The advancement of an employee from one position to another position that has a

higher salary range maximum is called a promotion. Promotion can also result in a higher

level title and higher level job responsibilities. Decision making authority tends to rise as

well. These are examples of promotions: HR Assistant to Hr Generalist; HR Generalist to

HR Manager; HR Manager to HR Director; HR Director to HR Vice President.

•

Demotion:

All organization has Discipline & Conduct rules in one form or the other, which are

traditionally enforced but not encouraged. IR provides a form of few punishments (through

minor and major penalty) to choose from for all and any type of mistakes committed by

employees. No doubt that a few 'standard' punishments can not serve the purpose of

behavior correction for all occasions. At times, several new methods have to be tried out,

like many other organizations do.Alternative disciplining measures – time for public/social

service, gardening, extra-time in office in odd jobs, compulsory (paid) leave for one day,

and many other creative ideas are possible. Sometimes, confidential letters – show-cause,

displeasure, warning etc. can play an effective role.



[Demotion]

Performance appraisal system

People differ in their abilities and their aptitudes. There is always some difference

between the quality and quantity of the same work on the same job being done by two

different people. Performance appraisals of Employees are necessary to understand each



employee‟s abilities, competencies and relative merit and worth for the

organization. Performance appraisal rates the employees in terms of their performance.

Performance appraisals are widely used in the society. The history of performance

appraisal can be dated back to the 20th century and then to the second world war when the

merit rating was used for the first time. An employer evaluating their employees is a very

old concept. Performance appraisals are an indispensable part of performance

measurement.

Typically, Performance Appraisal is aimed at: To review the performance of the

employees over a given period of time.

• To judge the gap between the actual and the desired performance. To help the

management in exercising organizational control. To diagnose the training and

development needs of the future.

• Provide information to assist in the HR decisions like promotions, transfers etc.

Provide clarity of the expectations and responsibilities of the functions to be performed by

the employees

• .To judge the effectiveness of the other human resource functions of the

organization such as recruitment, selection, training and development

• .To reduces the grievances of the employees.



• Helps to strengthen the relationship and communication between superior –

subordinates and management – employees.

Process of Performance Appraisal

[Steps of performance appraisal]

Wages & salary structure

Wages and salary structure of this bank is strictly confidentially so no information

is being provided about wages and salary. The structure of the wages and salary are kept

confidentially. Wages & salary is based on RBI rules & regulations.



Employee welfare

[Welfare of employee]

Welfare includes anything that is done for the comfort and improvement of

employees and is provided over and above the wages. Welfare helps in keeping the morale

and motivation of the employees high so as to retain the employees for longer duration.

The welfare measures need not be in monetary terms only but in any kind/forms. Employee

welfare includes monitoring of working conditions, creation of industrial harmony through

infrastructure for health, industrial relations and insurance against disease, accident and

unemployment for the workers.

• Reason for welfare of employee

The very logic behind providing welfare schemes is to create efficient, healthy, loyal

and satisfied labor force for the organization. The purpose of providing such facilities is to

make their work life better and also to raise their standard of living. The important benefits

of welfare measures can be summarized as follows:



• They provide better physical and mental health to workers and thus promote a healthy

work environment

• Facilities like housing schemes, medical benefits, and education and recreation facilities

for workers‟ families help in raising their standards of living. This makes workers to pay

more attention towards work and thus increases their productivity.

• Employers get stable labor force by providing welfare facilities. Workers take active

interest in their jobs and work with a feeling of involvement and participation.

• Employee welfare measures increase the productivity of organization and promote

healthy industrial relations thereby maintaining industrial peace.

• The social evils prevalent among the labors such as substance abuse, etc are reduced to a

greater extent by the welfare policies.

For employee welfare bank is providing packages like house, .good medical assured,

job security, and schooling for children, paying electricity bills, discounts offers, welfare

packages, shopping coupons etc. and the performance of the manager, branch, as well as it

takes the opinion of the current customer of the branch and solve their doubt with manager

as well as their owner‟ of the accounts and send the reports to the head office.

Analysis of Bank

STRENGTH

The Bank is the "First Registered Urban Co-operative Bank" of India.



• All Branches Connected in CBS.

• Among the first 13 Co-operative Banks in september 1988 to get the "Scheduled Bank"

Status.

• The bank commenced "Total Branch Automation" in 1992-93.

• The Bank introduced "SMS Banking Facility" and "View Account Terminal" {VAT}

facility at all branches for better customer service.

• Bank started its own "Training Centre" for providing training to its employees.

• The first Bank to provide the "Depository Participant Services" in South Gujarat.

•

Only coop bank of South Gujarat to have direct connectivity to RBI server for RTGS

/NEFT facility.

• Only bank to have direct connectivity with RBI server to have NECS facility.

• Only Bank to give RTGS /NEFT facility on STP basis - straight through processing .

WEAKNESS

• The Surat People‟s Co-op Bank Ltd. lack technologically as compared to another bank.

• There has been some problem in relation to staffing.

Conclusions

• Facilities of bank and what are the services this bank provides from other bank.

• This bank has 23 branches across Surat city which includes 1 at Vapi and 1 at Navsari

• Also staff facilities are also adequately provided by bank which delights their employees.



• Importance of the documentation of the bank.

• It has strong brand equity and a wide customer base of over 70,000

• The Surat People‟s Co-op Bank Ltd financial strength has been recognized by

international credit rating agencies. A strong capital base ensures that it is well placed for

growth of business.

• The bank, which has consistently earned profit since its inception, has committed and

competent human capital to power its aggressive growth plan.

• The Surat People‟s Co -op Bank Ltd looks confidently into future to face

& thrive in intense competi tive environment that is emerging in global era.

• The Bank has now gained experience and has in place the strategies required for gaining

a leadership position

a project report on the surat people

Documents