cooperative bank internship project

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Year: 2012-13INTRODUCTION 1.1 ABOUT BANKING INDUSTRYThe word bank originated the French word benque or Italian banco which means an office for monitory transaction over the counter. In those days or desks were used as centers for monitory transactions. During the barter system also, there existed traces of banking, i.e. people used to deposit cattle and agricultural products in specified places get loans get loans of some other form in exchange for these. There is solid evidence found in records excavated form Mesopotamia, showing some bank existed around a standard for valuation. ORIGIN OF BANKING INDUSTRY Greece was the first country to introduce a satisfactory system of coinage. After the invention of Coins started, a meaningful system of banking came into existence taking into account all the avenue of banking a credit system. Rome was the first country to start a bank at the department of state level in the 4 th century B.C. with transactions such as depositing and investments in other forms. In India ancient records show that banking was popular and money lending was a common practice among the common people. In the olden days Goldsmith, merchants and money lenders conducted the business. They had transactions among themselves by which funds were transferred from one business firm to another. They had no general or uniform principles of banking, lending, rate of interest, etc. Co-operative sector has a long history of more than a century. In the co-operative movement, agriculture credit sector has acquired a special importance in order to avoid the exploitation o poor farmers from the middlemen and money lenders and to provide suitable assistance to the eligible farmers. As our nation is basically an agriculture country, agriculture credit systems plays an important role in the development of this sector. Through this system, the credit sector is extending helping hand to farmers in its own way to boost the agricultural production in the state in particular and in the country at large. KSC Apex bank over the ninety five years, since its inception has always come forward to extend its assuring hand to the farmers of the state through district central co-operative banks, primary agricultural co-operative credit system besides the bank is providing the needed financial assistance, for development of human resources, training, computerization and all other encouragement from time to time to the DCC banks and PACS. The Government of Karnataka has accepted Prof. Vaidyanathans committee recommendations for revival of cooperative credit institutions and apex bank is committed to its successful implementation in the state.

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Year: 2012-13CO-OPERATIVE BANKS: The co-operative banks in India started functioning almost 100 years ago. The Co-operative bank is an important constituent of the Indian Financial System, judging by the role assigned to cooperative bank operate. Though the co-operative movement originated in the west, but the importance of such banks have assumed in India rarely paralleled anywhere else in the world. The co-operative bank I the urban areas also have increased phenomenally in recent years due to the sharp increase in the number of primary co-operative. While the co-operative banks in rural areas mainly finance agricultural based activities including farming, cattle, milk, hatchery, personal finance etc. along with some small scale industries and self-employment driven activities, the co-operative banks in urban areas mainly finance various categories of people for self-employment industries, small scale units, home finance, consumer finance, personal finance, etc. Co-operative Banks in India are regulated under the Co-operative Societies Act. The co-operative bank is also regulated by RBI. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965.

1.2 Objectives of the Study To get acquainted with the real environment of the organization. To know and analyze the strength and weakness of the organization and the forthcomingopportunities and threats for it.

To develop necessary interpersonal and managerial skills. To get a practical exposure of the organization. To suggest to the company on the areas of important. 1.3 Profile of the Study Area (Place)Karnataka State Co-operative Apex Bank is governmentally held banking service Organization headquartered in Bangalore, training centre located in Bangalore, India. The company was founded 1915 by Sri. Varadaraja Iyenger.

1.4 Methodology EmployedData Collected There are two types of data collected i.e.

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Year: 2012-13 Primary SourceInformation from the executives of various departments of Karnataka State Co-operative Bank.

Secondary SourceInformation from the text books, journals, web sources and annual report of Karnataka State Co-operative Apex Bank.

1.5 Scope of the StudyThis project is to study the development of organization and its structure in order to achieve the prime objective of the organization. Also the project intents to make a detail study of the different departments and workings and finding the problem areas to give a proposal of solution. The scope of the study is restricted to only for Karnataka State Co-operative Apex Bank. The findings and suggestions are restricted to Karnataka State Co-operative Bank.

1.6 Limitation of the StudyThis in-plant report has the following limitation. Various departments and their function are explained briefly. Primary data is collected as per knowledge and information given by the executives of the company. Apex bank has produced more than 500 products and various services are explained. In this report done in a Karnataka State Co-operative Apex Bank Some financial information is kept confidential by finance department of Apex Bank.

1.7 Chapter SchemeChapter:1 This chapter deals with Introduction, Objectives, Profile of the study area, Methodology, Scope of the study, Limitation of the study and chapter scheme.

Chapter:2 This chapter deals with the profile of the study area (industry) here it appears the meaning and definition of the Banking industry, leading players, future prospects of the industry, role of co-operative bank in India and problems of this industries.

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Year: 2012-13Chapter:3 This chapter deals with the company profile that is vision, mission, structure, growth and development and present condition of the company.

Chapter:4 This chapter deals covers the various functional departments that is Planning and development, Human Resources, Central Financing, Inspection and Audit.

Chapter:5 This chapter deals covers the organization Strength, Weakness, Opportunity and Threats (SWOT analysis).

Chapter:6 This is the final chapter it covers the summary of Finding, Suggestion and Recommendations.

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Year: 2012-13INDUSTRY PROFILEINTRODUCTION Co-operative moment as an economic system and as best instrument to eradicate the poverty of the people and to protect them for the economic exploitation from the haves was introduced for the first time in the world with the organization of consumers Co-operative society in 1844 at London. Later on the Co-operative movement was introduced in Germany with an organization of Agricultural Credit Co-operative Societies (Urban Co-operative Banks) in towns and cities. Hence, if the England is the motherland for the whole Co-operative movement, the Germany is the cradle for the Co-operative credit and Banks organizations. The co-operative movement in India was introduced with the organization on of primary Agricultural Co-operative Credit Societies (PACS) in villages and Urban Co-operative banks in town and cities offer passing the Co-operative Credit societies act 1904 with an objective to emancipate the poor people in the rural and urban areas from the clutches of money lenders and middlemen in the market and also to accelerate the pace of agriculture and industrial developments in these areas. With the passing of second Act, viz, Co-operative Societies Act, 1912: the Co-operative movement in India entered into all sphere of economic activities besides organizing DCC banks and State Co-operative Apex Banks. Profiteering (at more prices) and usury (more interest) are the greatest evilsconst antly grinding the poor people down and hang them till their death. To do way profiteering, consumers marketing, processing industrial and other Co-operatives were organized and to minimize the usury the Co-operative credit and banking organizations were organized to protect the poor people from the exploitation by middle men in the market and to eschew them from the clutches of unbridled money lenders.

2.1 MEANING OF CO-OPERATIVEA co-operative bank is 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 common interest. DIFINITION OF CO-OPERATIVE BANKS In the words of Henry Wolff Co-operative banking is an agency which is in a position to deal with the small means on his own terms. Devine defines a mutual society formed composed and governed by working people themselves for encouraging regular saving and generating miniature loans on easy terms of interest and repayments.

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Year: 2012-13FEATURES OF CO-OPERATIVE BANKS Some distinguishing features of the nature of co-operative banks are: They are organized and managed on the principles of co-operation, self-help and mutual help. Some of the well-d


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