finance mba project report

A

LOAN AND ADVANCES AT JIVAN COMMERCIAL CO-OPERATIVE BANK

PREPARED BY NAFISA PATHAN (M.B.A.- SEMESTER II)

Academic year 2011-2012 Roll no. 31 Enrollment No. 117870592032 ATMIYA INSTITUTE OF TECHNOLOGY AND SCIENCE RAJKOT (In Gujarat) A PROJECT SUBMITED TO GUJARAT TECHNOLOGICAL UNIVERCITY UNDER THE GUIDANCE OF POOJA VASANT

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DECLERATION
I, the undersigned, MS. NAFISA M. PATHAN hereby declare that the project report on LOANS AND ADVANCES ” conducted at JIVAN COMMERCIAL CO-OPEARTIVE BANK,RAJKOT is prepared and submitted by me to the Atmiya Institute Of Technology, Rajkot.

This project is my original work and report prepared therein is based on research by me during my project. I further declare that to the best of my knowledge and belief, this work is not submitted to this or any other university for the award of any other degree, diploma or equivalent course.

Signature Nafisa Pathan

Place: Rajkot Date:

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PREFACE
The main objective of practical knowledge in the form of industrial visit at the Master of Business Administration level is to give the perspective knowledge about the organization. To become sharper in the field of Management, one needs both practical as was theoretical knowledge.

I have decided to do my project at bank and therefore I have visited the "JIVAN COMMERCIAL CO-OPERATIVE BANK” dhebar road, Rajkot to undertake visit as a pre-requisite of my course studies.

In this project, I have taken mainly following points:

Introduction of banking system. Information about JCCB Bank. About the main topic, i.e., loans and advances of JCCB.

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ACKNOWLEDGEMENT
I hereby want to thank Jivan Commercial Co-Operative bank and its members for their help given to me during my training. I was thrilled to find that people here were very co-operative and helped me in all ways possible. They were very eager in solving my queries and were ready to help all the time.

First of all I am very thankful to my parents because they have cooperated with me in preparing this project and without their support I could not do this project.

Then I would like to thank Dr Vikas Arora, dean of our college and I am heartily thankful to Ms. Pooja Vasant (faculty member) for his constant Encouragement and assistance in preparing project report.

Moreover I want to take these opportunities to thank Mr.D.N.Kikani despite being one of the busiest person in the bank. he took out time to attempt to my questions. So for these, I want to thank him for his co-operation and knowledge that he has imparted to me.

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Table of content
Declaration……………………………………………………………………… IV Preface…………………………………………………………………………… V Acknowledgement……………………………………………………………… VI List of tables & chart …………...……………… …………...………………… Executive summary………………………………………………………………

1 Industry Overview ………………………………………………………… 1.1) Introduction to Banking ……………………………………………… 1.2) Banking in India ……………………………………………………… 1.3) Introduction to Co-operative Banking……………………………… 1.4) History of co-operative bank………………………………………… 1.5) Role of Cooperative in Indian Economy…………………………… 1.6) Characteristics of Co-operative banks……………………………

2 3 5 8 9 10 11

2. Company Profile ………………………………………………………… 2.1) History of JCC Bank ……………………………………………… 2.2) Bank Profile ………………………………………………………… 2.3) Board of Director of the bank …………………………………… 2.4) Organization Structure of JCC …………………………………… 2.5) Vision and mission of bank……………………………………… 2.6) Award and achievement ………………………………………… 2.7) Future plan………………………………………………………… 2.8) social contribution ………………………………………………… 2.9) Mile stone of bank ………………………………………………… 2.10) Service Department……………………………………………… 2.11) Marketing Department…………………………………………… 2.12) Human Resource Department…………………………………… 2.13) Finance Department………………………………………………

12 13 15 17 18 19 21 21 22 23 26 32 35 41

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2.14) Swot Analysis………………………………………………………

42

3. Research Topic …………………………………………………………… 3.1) Meaning of research……………………………………………… 3.2) Meaning of loan and advances…………………………………… 3.3) List of various loan………………………………………………… 4. Literature review ………………………………………………………… 5. Research Problem ……………………………………………………… 6. Research Objective ……………………………………………………… 7. Hypothesis/Hypotheses ………………………………………………… 8. Research Methodology ………………………………………………… 9. Data analysis and Interpretation ………………………………………… 10. Statistical Analysis/Hypothesis Testing………………………………… 11. Recommendation and suggestions ………………………………………

45 46 47 49 56 60 61 62 64 67 75 79

12. Research findings ……………………………………………………………… 80 13. Conclusion …………………………………………………………………… 14. Limitations of the study …………………………………………………… 15. Implementation of the study………………………………………………… 16. Scope for the future study ………………………………………………… 17. Annexure …………………………………………………………………… 18. References ………………………………………………………………… 81 82 83 84 85 87

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LIST OF TABLES

Sr. No. 2.10.8 2.10.9 3.3.1 3.3.2 3.3.3 3.3.8 3.3.9 3.3.10 3.3.11 10.2 10.2

Title of Table Recurring Example Locker Hypothecation-cash credit(Rate) Industrial Loan(Rate) Overdraft(Rate) Vehicle Loan(Rate) Building Loan(Rate) Consumption(Rate) Machinery Loan(Rate) Calculation of Chi-square test Expected Frequency

Page No. 37 38 58 58 59 60 61 61 61 83 84

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LIST OF CHART

Sr. No. 2.4 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8

Title of Chart Organization Structure Occupation of loan borrower Age group of loan borrower Income level of loan borrower Behavior of staff member Time period of loan Another loan from rival bank Qualification of customer Maximum extent to take loan

Page no. 26 75 76 77 78 79 80 81 82

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EXECUTIVE SUMMRY
“Study of loan and advances of JCCB”. I have taken this topic because nowa-days in this fast developing economics era, loan and advances play a very important role like when a person wants to start a business then he can start his business by taking a loan from bank and this is affected by the interest charged on loan.

The main purpose of this study is to know that which banks loan is more suitable to take by market survey.

Whole project consists of bank details. History of banking in India, major players in the banking sector and Regulatory Environment details under which JCCB is working. This report also covers the major departments of JCCB viz. Marketing Department, Finance Department, Service Department and Human Resource Department.

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Industry overview

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1.1) INTRODUCTION TO BANKING

Banks are among the main participants of the financial system. Banks also perform certain activities which are ancillary to this business of accepting deposits and lending. Since Banking involves dealing directly with money, governments in most countries regulate this sector rather stringently. Banks provide almost all payment services by conducting checking or current accounts for customers, paying cheques drawn by customers on the bank, and collecting cheques deposited to customers' accounts. Banks also enable customer payments via other payment methods such as telegraphic transfer. Banks have added new payment channels like Internet banking, Mobile Banking, ATMs etc.

Banks activities can be classified into 5 categories:-

1) Retail Banking: dealing directly with individuals 2) Business Banking: providing services to mid-size business 3) Corporate Banking: dealing with large business entities 4) Private Banking: providing wealth management services to High Net worth Individuals 5) Investment Banking: relates to helping customers raise funds in the Capital Markets and advising on mergers and acquisitions.

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In addition to this Banks are now moving towards Universal banking which is a combination of commercial banking, investment banking and various other activities including insurance.

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1.2) BANKING IN INDIA

Early phase of ancient times The origin of banking in India can be traced back to almost the Vedic period. The transformation from pure money lending to proper banking appears to have taken place before the times of Manu. Manu, a great Hindu jurist, has devoted a section of his work explaining the deposits and advances and he even laid down certain rules on rates of interest.

Throughout Mauryan period and later on, desi bankers played some role in the economy of the country. However, it was during the Mogul period that indigenous bankers started playing a vital role in lending money and financing of the foreign trade and commerce.

Second phase from 1786 to 1969 Banking on European lines started in India, when two British managing agency houses, namely Ferguson and Co. and Alexander and Co. set up the first joint stock bank in 1786 in the name of General Bank of India. Later on Bank of Hindustan also came into existence which carried on the business till 1906.

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East India Company established three banks; namely, The Bank of Bengal in 1809, The Bank of Bombay in 1840, and Bank of Madras in 1843. They were collectively called Presidency Banks and were well functioning independent units.

A number of private banks had been established by the businessmen from mid of the 19th century onwards. In the surcharged atmosphere of Swadeshi movement, a number of banks with Indian management, namely, Punjab National Bank Ltd., Bank of India Ltd., Canara Bank Ltd, Indian Bank Ltd. etc. were established.

The Reserve Bank of India was established as the Central bank of the country in 1935under an act called Reserve bank of India Act. In 1955, the Imperial Bank of India was nationalized and was given the name "State Bank of India”. On July 19, 1969, 14 major banks were nationalized.

Third Phase from 1969 to 1991 The three decades after nationalization saw a phenomenal expansion in the geographical coverage and financial spread of the banking system in the country.

In 1980, another six banks were nationalized, and thus raising the number of nationalized banks to 20.In the post-nationalization era, no new private sector banks were allowed to be set up. However, in 1993, in recognition of the need

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to introduce greater competition which could lead to higher productivity and efficiency of the banking system, new private sector banks were allowed to be set up in the Indian banking system.

Forth phase from 1996 till date New delivery channels like ATM, Mobile banking and Internet banking and convenience of any branch banking and auto sweep products introduced by new private and MNC banks. Communication infrastructure improves and becomes cheap.

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1.3) INTRODUCTION TO CO-OPERATIVE BANK

Definition of Cooperation H.CALVERT define cooperation – “As a form of organization, where in persons voluntarily associate together as human beings, on a basis of equality for the promotion of the economic interest of themselves.”

7 principles of Cooperative societies 1. Voluntary association or open membership. 2. Democratic control 3. Members economic participation 4. Autonomy and independence 5. Co-operative education, training and information 6. Mutuality or cooperation among members 7. Concern for community

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1.4) HISTORY OF CO-OPERATIVE BANKING
Over the years, the difference between co-operative banks & commercial banks has blurred as they all have come under a common law. All products & services are offered by co-operative banks are on the par with commercial banks, with a few exceptions related to government business. In 1904 the cooperative movement started in India with a view to provide finance to the agriculturist at a low rate of interest. The co-operative society has to take the place of the money lenders & provide cheap loan to the farmers for productive purposes. Even though many types of co-operative societies have been started particularly for the artisans & others, the most common form of such societies deal in rural credits. And today co-operative banks have started verities of Services with different technologies.

Once Mahatma Gandhi has remarked that “There is sweetness in cooperation; There is no one who weak or strong among those who co-operate. Each is equal to other.”

Over a period of time, a strong co-operative network made its way into rural areas with Gujarat, Maharashtra and Andhra Pradesh leading the way. The original founders of the co- operative movement were people with integrity, foresight and vision. However, with the passage of time, there has been erosion in the quality of leadership in this sector.

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1.5) ROLE OF CO-OPERATIVE IN INDIAN ECONOMY

In today’s competition era it is necessary that all work in cooperation. As rightly said that

“United we stand, Divided we fall”. So cooperative banks become necessary for the society. Also our nation is the agriculture based where 60% people live on agriculture and farming. So cooperative banks provide low interest loan to farmers.

Our govt adopted LPG policy in 1991 so cooperative banks also need to reform. It has become necessary to make co-operatives more competitive and market oriented. The old vision of cooperatives as merely government sponsored institutions or as individual driven organization would have to give way to a new vision of co-operatives where in the co-operative become “competitive business units” to play an active and effective role in economic welfare of its members. This calls forcreation and development of new type of co-operatives institutions and re-engineering and reinnovation of existing cooperatives to meet the challenges of new economic scenario. In liberalized market economy cooperatives provide protection to people and make possible survival of weakest also.

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1.6) CHARACTERISTICS OF CO-OPERATIVE BANK
The establishments of co-operative banks are mainly to cater to the needs of the rural areas and small borrowers are concerned more with financing agricultures.

The co-operative banks are organized on co-operation basis and are governed by their members according to co-operative laws.

Co-operative banks are under control of state government and to lesser extent RBI certain provision of banking regulation act also applied.

In co-operative banks borrowers being member have some control over management and use of funds.

They have to follow rate for investment laid down by the register of cooperative societies.

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COMPANY PROFILE

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2.1) HISTORY of JCCB
Jivan commercial Co-operative Bank ltd. has been a long & eventful journey from 1972. From a small building in a Rajkot to its new hi-tech & fully computerized building and branches in Rajkot as well as in wakaner is a sage of vision enterprise, finance prudence and corporate governance.

JCCB ltd. was established on 7 Aug, 1972 with share of Rs. 78200 and membership of 1017 person under the leadership of late established by late shri rajedra raya with late shri harsubhai raval. And Mr. Kantibhai, Gujarat’s finance minister at that time. This bank was names on famous shastri JIVANLAL RAVAL. The bank has made tremendous and real progress under the leadership of chairman late rajendrabhai Raya.

Bank is successfully working for 3 year. This bank has started with the working capital of Rs.1 crores which kept on incasing till today and crossed the limit of Rs.100 crores. The bank has started its first branch at bhaktinagar on 4 sept, 1977 and again to fill the demand of customers 2nd branch on 19th Oct, 1981 at Raiya road and 3rd branch on 7th April, 1985 at wakaner. The bank sees a vision of current and future trends, bank to start the safe deposit volt way back in 1990.

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During past years bank has player 7 leading role for the development of industrial business and economy of Rajkot city. Bank has developed in manifolds with time membership of bank is now 24049, which provides an example of how mass movement can be turned into the instrument for social up-linemen. Today bank has more than 59719 deposit accounts with deposits base of 171+ crore no. of borrows 4218, establishment/individuals enjoys the facility of rs.85+ crores and advance bank has 19+ crores of reserve fund. Now bank has share capital of rs. 4, 37, 82,500 bank has 3840 safe deposit Walt.

Bank has establishes “sabhasad kalyannidhi fund” for T.B, cancer, Eye and diabetes treatment for the member of bank. Bank has denoted to educational institutions and hospitals. Bank has also denoted in Natural calamities such as earthquake and flood. Bank also promotes to the sports activities.

Being in the service sector with a vision of current and future treats, Bank started automation and modernizations way back in 2005 all the branches as computerized. And the has paid regularly the dividend to share holders on an average of 12% p.a.

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2.2) BANK PROFILE

Name Address Year of establishment Registration no Founder

: Jivan Commercial Co-operative Bank Ltd. : Dhebar Road, Rajkot. : 1972 : 6102 : Shri Rajendrabhai Raya Shri Harsubhai Raval : Commercial co-operative :5 : 1017 : 24049 : 5, 22,44,800 : 104 : bank- 0281-2240876 0281-2240877 0281-2240875 Loan 0281-2240878 Fax no.0281-2233168 : [email protected] : Shri Rameshbhai parsana : Shri Narendrabhai Jadeja : Shri Dhirendrabhai S. vyas : Shri D.N.Kikani : 10am to 5pm

Type of bank Branches Initial member No. of Customers share capital No. of Employee Contact No

E-mail Chairman Managing director General Manager Internal Auditor Working time

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Working day

: Monday to Friday Saturday half day : Sunday & public holiday

Week off

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2.3) BOARD OF DIRECTOR

1. shri Bhagvanjibhai Parsana 2. Shri Rudradatt J. Raval 3. shri Vashantbhai H. Kamdar 4. shri Rajeshbhai Parsana 5. shri Harkinbhai P. Mazni 6. shri Natvarlal P. Khakkhar 7. shri Babubhai K. Dhabhi 8. shri Jaydevsinh Jadeja 9. shri Vajubha Sajubha Zala 10. shri Navinbhai C. Bharcha 11. shri Rameshbhai Patel 12. shri Sureshbhai Pathak 13. shri Hasmukbhai Bhubbhadev 14. shri Dharmendrabhai P. Vyas 15. shri Nitinbhai Chauhan 16. shri Narendrasinh A. Jadeja 17. shri Asvinbhai G. Dave 18. shri Ronak S. Dhavda

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2.4) ORGANIZATION STRUCTURE

Chairaman ↓ Vice chairman ↓ Managing director ↓ ↓ Main Branch ↓ Manager ↓ Deputy Manager ↓ Assistant Manager ↓ Clerk ↓ Peon ↓ Other Branch ↓ Manager ↓ Assistant Manager ↓ Clerk ↓ Peon

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2.5) VISION AND MISSION OF BANK

→vision of bank
“Maximum profit at maximum services”

The bank is committed to maintain the highest level of ethical standards, professional integrity and regulatory compliance. Our bank philosophy is based on four core values such as:

1. Operational excellence, 2. Customer focus, 3. Service leadership, 4. Welfare of people,

The objectives of Jivan Commercial Co-operative Bank ltd. Is to provide its target market members a full range of financial products and banking services, giving the members a one-step window for all his/her requirement.

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→Mission of bank

“We are always with you”

The above slogan has been accepted and well performed by the bank. Bank always tries to give support to its members. The regular payment of dividend over such 38 year on an average of 12% p.a. is a good sing of the implementation of the slogan “We always with you”

Bank also provides loan facilities to its members for short term and medium term financial requirements at reasonable rates.

The bank is going to start new branch in near future for easy accessibility.

The bank provides easy clearing of cheques at the ground floor at main branch.

Adopting communication.

the

latest

technology

for

calculating

and

The mission of JCCB is to maintain 0.00NPA bank in future with performing above slogan.

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2.6) AWARDS AND ACHIEVEMENT

→The bank got an award for tennis tournament.

→Bank term came 1st in India in inter bank cricket tournament →The bank is awarded “A” class for auditing by the government of Gujarat since its inspection.

2.7) FUTURE PLAN
→the bank is planning to establish new branches at urban and semi-urban areas including rural areas.

→bank is going to adopt new technologies for accounting and other activities.

→soon the bank is going to provide ATM facility to its customer.

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2.8) SOCIAL CONTRIBUTION

→Donation to education activities

→Reserved sheets for patients of T.B, Cancer, and Diabetes in various hospitals.

→Promotion of sports activities.

→Loan to education unemployed youth

→Help to earthquake victims by providing donation and other requirement.

Keeping in sight, social obligation at large and interest of its share holders in particular, the bank aim is to provide a WORLD CLASS facility to the common people of the society at an e-commercial rate. So as to be a preferred providers of the banking services in the area where bank operates and achieve a healthy growth in profit, which will be partly used for the benefit of society and for up-linemen of masses and general growth of cocoordinative movement.

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2.9) MILE STONE OF BANK

18 April 1972

-bank got registration no.6106

3 july 1972

-bank was established

7 Aug, 1972

-bank got registered and was in auguarated by finance ministerm of Gujarat

4 Sep, 1977

-bhaktinagar branch was started

16 Jan, 1980

-A new branch at ranchchodnagar was started.

19 Oct, 1981

-started more branch at raiya road

7 April 1985

-The first out station branch was opened at waknaner

June 1986

-Deposit crossed Rs.5 crore

June 1989

-no. of share holder increased above 10,000

25 Oct, 1990

-established a new branch at dhebar road, as a main branch with modern system

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7 Aug 1997

-bank celebrate silver jubilee

March 2000

-deposit crossed Rs.50 crores

March 2003

-bank pays the highest 15% dividend

March 2004 April, 2010

-deposit crossed 50,000 depositors -bank started sorathiyawadi branch

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SERVICE DEPARTMENT

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2.10) INTRODUCTION
JCC is purely a service sector. So here instead of production department there is only “Service Department”. The work of a Service Department is to produce better services to the customers, which satisfy the human desire in a best manner.

In banking, service department is concern with that process which converts the inputs in to outputs. Money is used as a raw material other resources, information technology, employees are used as an input. Then after there is need to perform all the service functions (Process). The output is satisfactory services, employees benefit, security etc.

1. Current 2. Savings 3. Special savings 4. Loan Compulsory 5. Nominal Compulsory 6. Pigmy 7. Fixed 8. Recurring 9. Locker

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Current Account

•It is basically used for business purposes. It doesn’t give any interest on deposits. •It can be held in the name of firms (include partnership firm, pvt. Ltd. Co., ltd. Co., trust, association), person. •Its prime purpose is to serve the customers for their daily business transactions. •A customer having current account can withdraw money in the form of cash or cheque in an infinite number of times and so is unrestricted.

Savings Account

•These deposits too are used for transactions purpose. For example if you want to pay electricity bill, telephone bill etc. you can give a cheque from your savings a/c rather than giving hard cash. Other things such as paying fees, paying dues etc. can be done from this a/c.

•This deposit is usually held in the name of individual as it is used for personal purposes and gives interest at the rate of 3.5% per annum.

•Note that trust and association can hold current as well as savings account.

•A customer having savings account can withdraw money in the form of cash or cheque in a limit number of times which is restricted as 5 times per month at JCCB. Note that this withdrawing power can be different for different banks according to the rules and regulations of that particular bank

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Special savings
•This concept and deposit was prevalent earlier, but now it is not in use.

•In this deposit a customer can withdraw the money only3 times (less than savings i.e. 5times). However, this deposit gives an interest at the rate which is higher than the savings account. Earlier, when it was in use these deposits gave a return of 0.5%higher than that of savings deposits.

Loan Compulsory

•These deposits are made compulsory for a customer who wants to take a loan from JCC. For this customer it is required to keep 2.5% of the loan amount in these deposits. It gives the same interest rate as saving deposits.

Nominal Compulsory
•It is similar to loan compulsory deposits in most ways. However, the difference is that these deposits are held by customers having less loan amount. These deposits are there to help small loan takers, so that these people don’t need to keep 2.5% of their loan amount as deposits. It gives the same interest rate as saving deposits.

Pigmy
•Pigmy has different names at different banks. Some banks give ‘daily saving’ name to this service.

•Very few banks offer this service. Here, the customer is required to deposit the installment on daily basis. The interest rate offered is same as Fixed Deposits. Fixed Deposits (FD)

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•It is a deposit which offers the highest interest rate than any other above mention deposits. So it is mainly used for long-term saving purposes. For example: a couple having a child of the age of 10 keeps an FD account so as to use the matured amount for the child’s college fees in future.

•These deposits and its interest rates are explained in detail in the future sections that are to come.

Recurring
•It is a type of FD with deposits kept for 12 or more months. Here the deposits are given at installment by the customer. The interest rate for these deposits is same as FD.

Recurring Example

Deposit date Matured date Monthly installment Rate of interest Matured amount

05-05-2010 05-05-2011 500 8% 6265

Locker
•It is necessary to deposit some amount in the bank if a customer wants to have a safe-locker facility. This deposit is made in locker deposits with interest rate of 9%perannum (interest calculated at half a year) for 5 years. The deposits that are to maintained for different lockers is given in the following table

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Size of locker Small Medium Large

Deposit required to be maintained R.7500 Rs.15,000 Rs .22,500

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MARKETING DEPARTMENT

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2.11) INTRODUCTION
Marketing is the process of planning and executing the concept of pricing, promotion and distribution of ideas, goods and services to create exchange that satisfy individual and organizational objective.

The origin of marketing can be traced to the early system of barter system. Various difficulties of barter gave way to introducing of money and the pricing became the main mechanism of marketing. Then the marketing era after the World War 2. Competition became very intense, there was more supply of goods then was actually needed by market. Therefore marketing research became vital to undertake the social responsibility in connection with manufacturing of goods. Efforts are made to balance consumer satisfaction + profit + public welfare.

JCCB is service sector firm providing satisfactory services to its customers since a decade. The main objective of bank is to give the loan to middle and lower class of people.

By the name it self people doesn’t ask any other question and willingly ready to do the transaction with the bank did some local marketing such as. - Advertising in local news papers - Distribution of pamphlets - Advertisement in business fair

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PRODUCT LIFE CYCLE
Every product under goes different stages of life cycle. Product life cycle simply Mean the course of the product’s sales and profits over its life time. It involves five distinct stages:

1) Product Development 2) Introduction- Low sales, High Costs, Negative Profits 3) Growth- Rapidly increasing sales, Average Cost, Rising Profits 4) Maturity- Peak sales, Low Cost, High Profit 5) Decline- Declining sales, low Cost, Declining Profits.

In “JIVAN COMMERCIAL CO-OPERATIVE BANK”, the product is passing through GROWTH STAGE, as bearing is the heart of every machine and vehicle and its demand is expected to increase in future and not decline.

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HUMAN RESOURCE DEPARTMENT
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2.12) INTRODUCTION
Employees hold a key place in business. No business enterprise can exist and function without employees. The success of business enterprise depends to a large extent on the quality of its human resources.

Human resources management is the key to the whole organization. The concept of personnel management is application not only to bank, but it is equally important in office, sales department, laboratories where the management must win the cooperation of their subordinates.

The plan of business may be logically sound and structure of organization may be perfect, but if the requirement and training of human resources are unscientific business can ability of its employees. Therefore, it is necessary to direct motive, develop and manage their activity.

This bank has a good management and large department of manager and employees.

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RECRUITMENT SOURCE
Employee holds key position in business. No business enterprise can exit without employees. The plan of business may be logical sound and structure of organization may be perfect but if the recruitment and selection of personnel are unscientific business cannot be develop. And hence every organization needs employees from time to time.

Recruitment is the process of discovering potential applicants stimulating and encouraging them for applying for a job in an organization.

Recruitment is positive activity. There are three methods of recruitment. Direct method Indirect method Third Party method.

In “JCCB”. Sources general recruitment for worker level is direct method of Recruitment and selection is done of top executive. The advertisement is given in local n state level news paper. Generally there are two types of sources of recruitment.

Internal Sources External Sources

(a) Internal Sources: Promotion Transfer Demotion

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(b) External Sources: Advertisement Employment agencies Labor union Gate hiring Education institution Unsolicited application Ex - Employee.

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SELECTION
“Selection is the process of differentiating between applicants in orderto identifies these with a greater likelihood of success in the job”.

The main aim of selection is to determine whether an applicant meets the qualifications for a specific job and to choose the applicant who is most likely to perform well in the job.

IN JCCB:-

In case the bank has given advertisement for applicants, first the receive the application. Manager evaluates the application and he rejects improper application and calls a person having proper application from for the personal interview.

In interview, the manager takes different types of interview s for different required personnel. These interviews are: - Personal interview - Oral test/ written test

Now, if the employee has passed the relative interview, he has to pass the medical test & then the employee is selected as “trainee” for a certain time period.

The training period depends upon the employee’s capacity but the maximum period is of 2 years. After, 3 to 6 months, the report of trainee employee is submitted to manager and if it is satisfactory then he is selected, and if the report is negative i.e. if there is no progress then employee will have to discontinue

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PROMOTION:
A promotion is a type of a transfer involving placement of an employee to a position having higher pay, increased responsibility more privilege, increased benefit and great opportunity.

Promotion is given so as To increase an employees organizational effectiveness To build up moral, loyalty and a sense of belongings on the part of To attract suitable and competent workers for the organization.

Promotion may be given on two bases: On the basis of seniority On the basis of merit

In this bank, promotion is given on the basis of seniority basis. At lower level also promotion is made from operative level to supervisory level and from that to office clerk.

The employee is selected for promotion keeping in view his work performance, regularity and seniority.

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Finance department

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2.13) INTRODUCTION
The term Business Finance mainly involves, rising of funds and their effective utilization keeping in view the overall objective of the firm. The management makes use of various financial techniques for administrating the financial affairs of the firm in most efficient and effective way. Financial therefore means the entire gamut of managerial effort devoted to the management of finance-both its sources and - of the enterprise.

Its detailed analysis includes financial analysis, risk analysis, capital structure, measurement of cost of capital, merger, acquisition, working capital financing, and management of cash and market securities.

In JCCB, separate finance department is there under which various financial activities are carried out. The bifuregation of activities that are carried in finance department of JCCB are as follow:

- Preparation of annual account - Reconciliation of branch account with head office - Government securities back office work. - Dealing with other banks. - Licensing with RBI - Auditing - To decide accounting policy - Management information system - Periodical returns of RBI - To decide accounting policy

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Swot analysis

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SWOT analysis means overall evaluation of a firm’s strengths, weakness, opportunities and threats. Swot analysis consists of making analysis of the external environment and internal environment.

→External environment analysis External environment consists of out sides of the firm such as government competitors etc. such environment analysis is necessary because it affects the firm or an organization. →Internal environment analysis

Internal environment consists of inner sides of the firm such as personnel, finance, etc. such environmental analysis is necessary because it affects the firm or an organization.

STRENGTH
-this bank is very reputed in local area. -professional management & co-operate term spirit -strong brand equity in local (Rajkot) area. -fully computerized -profitability & sound liquidity. -branches in all most developed part of Rajkot. -No mistake in regular transactions can be found because of small network.

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WEAKNESS
-Bank is not performing marketing activity because lack of marketing expertise -lack of modern management concepts and sometimes communication gap can be found which indicates lack of professionalism. -bank is not providing ATM facility in the recent developed area and bank is not fully developed in modern area. -lower volume of advances due to higher rate of interest ma effect the expansion of the organization. -not reputed at national level and less no. the branches.

OPPORTUNITES:
-bank can open branches at state level in near future. -bank can introduce new services like NRI loan, ATM, student account with minimum Rs.100etc. -bank can perform marketing activities by media.

THREATS:
-changes in government policies and in rules and regulation regarding bank can be disturbed in regular service of bank. -Crises in the co-operative banking sector can disturb the bank progress.

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ReseaRch topic

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3.1) Meaning of Research
In essence term, Research refers to a search for knowledge. One can also define Research as a scientific and systematic search for pertinent information on a specific topic. In fact, Research is art of scientific investigation and careful investigation especially through search for new fact in any branch of knowledge. Research is an academic activity because it comprises defining and redefining problems, formulating hypothesis,

collecting, evaluating data, Making deductions and conclusion. Thus, Research is an original contribution to existing stock of knowledge making for its advancement.

The role of research in several fields of applied economy has greatly increased in modern times. In corporate world, research is conducted to solve various operational and planning problems of business and industry. Research helps people in business and industry that are responsible for taking business decision. In business, there are different types of research conducted for different object such as operations research, market research, motivational research. Operational Research refers to solve business problem of cost minimization or profit maximization or what can be as optimization problem. On the other side, Market Research is the investigation of the structure & development of a market for the purpose of formulating efficient policies for purchasing and sales.

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3.2) Introduction of Research topic
Loan and advances
Any amount borrowed or lent is called loan. If money is borrowed it is debt of business ands if loan is given, it is receivable for the business.

Loan is a method of lending under which bank gives credit to a borrower for a fixed period and for a specific purpose. Loan are promises for future payment, they have to be repaid in periods beyond a year and are, therefore long term liabilities.

In other words "when a banker makes an advance in a lump sum which can not be paid wholly or partly and which the customer has permission to withdraw subsequently, it is called a loan."

Profit is the pivot on which the entire business activity rotates. Banking is essentially a business dealing with money and credit. Like every other business activity. Banks are profit oriented. A bank invests its funds in many ways to earn income. The bulk of its income is derived from loans and advances.

Banks make loans and advances to traders, businessman and industrialist against the security of some assets or on the basis of the personal security of the borrower. In either case, the banks run the risk of default in repayment. Therefore, banks have to follow a cautions policy and sound lending principles in the matter of lending. Banks in India have to consider the national interest along with their own interest while determining the lending policy.

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Many a time a borrower needs funds for fixed assets or non-respective type of activities and thus seeks money from the bank that is withdrawn in one lump sum. The loan amount is normally repaid in installments. Loan may be shortterm, medium-term or long-term.

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3.3) List of various Loan of JCCB
1. 2. 3. 4. 5. 6. 7. 8. 9. Hypothecation-cash credit Industrial Overdraft Pledge Consumption Staff Consumption Commercial loan Vehicle loan Building loan

10. Consumable loan 11. Machinery loan 12. Gold loan 13. Bill purchase

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1. Hypothecation-cash credit:
This loan is basically given to business people on their trading stock. JCC gives loan up to 70% of the value of the stock. If here the customer provides additional property for mortgaging, then extra 50% of the value of property can be added to the loan amount.

For Builders For others Up to 75,00,000 More than 75,00,000

15%

15% 14%

2. Industrial:
Like Hypothecation this loan is also given to firms but here it is given on finished goods. The other things are same as Hypothecation.

Industrial purpose Up to 75,00,000 More than 75,00,000 15% 14%

3. Overdraft (OD):
For the businesses like brokerage firms and trading firms, where there is no record of the stock, but has to keep large amount of funds to felicitate trade, hypothecation and industrial loans cannot be given. So for the liberation of these firms, OD loans can be given. Here these firms are given loans on the basis of their record of balance sheet and PNL (Profit and Loss) account. These loans are of 2 type’s viz. FOD and SOD. FOD is the loan given against fixed deposit whereas SOD means Secured OD and is given on the

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mortgaging of the property of the business land or property. JCC gives loan up to 85% of FD value.

Overdraft Unsecured Secured for others Up to 75,00,000 More than 75,00,000 15% 14% 18%

4. Pledge:
Here stock is under the control of bank. For example the key of the warehouse in which the goods are kept is with the bank. Example of a fridge stock. Suppose a warehouse of fridge is under the control of bank. Now, bank will give the keys to the stockholder only if he pays a part of loan which he has taken on the stock of fridge. This loan is not prevalent now at JCC.

5. Consumption:
This is called self-mortgaging loan where the people usually comes for taking loans on their personal income. It is the only type of loan where the purpose of the loan is not mentioned. At JCC, this loan has one of the larger shares among all types of loans. Majority of the loan takers of these loans are the workers of Rajkot Municipal Corporation (RMC).Here the RMC submits the salary information of the worker who wants to take loan and promises to pay back the loan installments from the salary of that particular worker. RMC manages this by withholding the installment amount from the salary.

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6. Staff Consumption:
This is similar to the consumption loan except that it is provide to staff people at a slightly lesser rate.

7. Commercial loan:
This loan is provided to the small vendors, who are in need of money for running their business. This is usually given to the people running small provision stores, pan shops and others.

8. Vehicle loan:
As the name implies the bank gives loan on the purchase of vehicle. Here a customer may want an old vehicle or a new vehicle. In the former case the valuation of the vehicle is must. This valuation can be done by the bank or the customer himself. In the later case of new vehicle the bill quotation is used for considering vehicle’s value and 75% of the value can be given as loan. However, in case of old vehicle 50% of the value of vehicle is given as loan.

Vehicle loan Up to 75,00,000 More than 75,00,000 16% 14.5%

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9. Building loan:
This loan is given on the purchase or construction of building for residential or business purposes. This type of loan is also one of the major contributors to the credit of the bank. These loans are basically taken by the public for housing and are also taken by the builders for construction purpose. The loan to the builders is given on the amount of the work done. For example when the construction is about to start the first installment of loan is sanctioned. Thereafter, after the construction of 1 st slab, another installment is given and soon

A. for builders B. for others Up to 75,00,000 More than 75,00,000

15%

15% 14%

10. Consumable loan:
This loan is given for consumable such as fridge, TV, AC, etc. This is a type of personal loan wherein it is necessary to define the purpose of the loan.

Consumption loan Up to 75,00,000 More than 75,00,000 17% 14.5%

11. Machinery loan:
This is a loan given to industries on the purchase of the machinery. Here in, if it is a new machinery then bill quotation is used as valuation. On the other hand if it is old machinery then a value of bank is a asked to give valuation report, based on which loan is sanctioned.

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Machinery loan Up to 75,00,000 More than 75,00,000 15% 14%

12. Gold loan:
Here the loan is given on the purchase of gold. This loan is a rarity now.

Purpose

-personal use

Limit

-Rs.50, 000(in Rajkot city) 20,000(out of Rajkot)

Period

-26 months

Rate of interest

-14%

Repayable

-equated monthly installment Rs.50 per thousand

Security

-gold-silver ornaments or items on re-pledge

Document

-loan application form, DP note

Paper

-In case of service person pay sleep, in case of business last yearly business report.

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13. Bill purchase:
Here the customers give their receipt receivable to the bank. Bank pay the total amount of bills to the customer and then it itself collects the receivables on behalf of customers. Again these are also not prevalent now at JCCB.

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4.) LITERATURE REVIEW
GUPTA AND AMBEGEOKAR:
Observed that the use of funds from banks by the private corporate sector had exceeded its inventory formation. Gupta, has argued that a small portion of such finance should have gone to meet fixed investment. Further, he found the growth rate of physical assets to be more directly and closely related to security issues than bank credit. Hence, he argued that the fast growing firms relied heavily on security issues than the use of bank credit. Arnbegeokar found that the rate of rise in bank credit exceeded that of inventory, sales and output. Further he observed that its dependence on banks for working capital had increased, accompanied by a decline in reliance on other financial institutions.

SHETTY:
Assessed the dimensional changes in credit deployment during the first five years of nationalization in relation to changes in output and prices. The rationale for his analysis was the fact that, in any accepted model of demand for money, one common variable is the gross national product or some other variant of it in real terms. Consequently, he hypothesized that credit for any sector or industry over a period has to have some relationship with its performance in real terms, particularly output. He observed a declining trend in the credit extended by banks to industries since nationalization, though it was higher than other sectors. On finding that the share of manufacturing sector in bank credit is higher than its share in Net Domestic Product (NDP) he concludes that increase in bank credit has occurred far in excess of increase in output during the years 1968/69 to 1973/74.

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REVISED BY SHETTY:
Observed that the share of medium and large industry in total bank credit had declined due to priority sector lending. Another observation in line with his earlier finding was that growth in bank credit had always been

disproportionate to growth of their physical output, especially in industries like cotton textiles. His observation particularly for the years 1975-76 and 1976-77 revealed:

(a) Increase in average bank credit had been higher than the growth of NDP originating in registered manufacturing sector even at current prices

(b) An appreciable increase in the rate of short-term bank credit to inventories

(c) Relatively higher reliance on trade credit.

In line with these observations, he suggested policies to scrutinize credit claims vigorously and relate credit to the genuine production requirements so that funds are not tied up with these large borrowers.

K.S.R.ROA:
Carried out an econometric exercise on the determinants of demand for bank credit of some selected industries for the period between 1970-71 and 198485. He observed that output of these industries was the most important factor in determining its demand for bank credit whereas, interest rate of banks and relative rate of interest of other sources of borrowing played only a secondary role. Price of output was also found to have affected the demand for credit significantly. The relative interest rate variable was significant with respect to industries like textiles, engineering and total manufacturing, while it was not significant for industries like sugar and other food products and chemicals.

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DIVATIA AND SHANKAR:
In their paper discussed the role of internal and external sources of funds and their components in financing capital formation of the private corporate sector. The study was based on the RBI company finance studies relating to medium and large public and private limited companies and Covered the period 196176. They also discussed the trends and patterns of financing for four individual industries, viz, cotton textiles, jute, sugar and cement.

S. ADVE.:
Had some interesting findings in his article "Financial Practices in Indian Corporate Sector," based on the RBI company finance data. He underlined the rising dependence on borrowed capital in relation to the total capital employed in the Indian corporate sector. Trade credit was pointed out to be important sources of capital when the bank credit was squeezed. Making an industry-wise analysis, the author came to the conclusion that the industries with large profit margins and those with large depreciation and development rebate reserves had a relatively lower order of overall indebtedness and many of them also had a lower order of bank borrowings in relation to overall indebtedness. Industries with high profit margin such as silk and rayon textiles, aluminum, basic industrial chemicals and medicine and

pharmaceutical preparations had lower proportion of borrowed funds as compared to the average of the medium and large public Ltd. companies.

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L.S.GUPTA:
The extensive study viewed that the growth of institutional finance emerged in lndia due to structural change for industrial financing system with wide change of socio-political situations in lndia. He attempted to measure overall impact of financial institutions on capital formation in the organized private sector as also the allocate efficiency of financial system. He observed that during the first plan financial assistance rendered by special institutions represented only 4.1 per cent of gross fixed investment in private industry, which rose to 7.9 per cent in the second plan and further to 18.1% in the third plan period. He also found that commercial banks remained the most important single agency for financing the private corporate industry and LIC was the single largest purchaser of industrial securities and the underwriter of new issues of large and established companies.

M.S.JOSHI:
The role of financial intermediaries in providing finance to large-scale industries in the private sector. After analyzing the contribution of each important intermediary towards industrial development in India, he estimated that these intermediaries have participated with 17% of investment in various Industries against 39% in share capital of public Ltd. companies.

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5.) RESEARCH PROBLEM

Research Problem The research is that the income level affected to borrower to take a loan.

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6.) RESEARCH OBJECTIVE

1. To be acquire practical knowledge about loans and advances from Jivan Commercial co-operative Bank.

2. To be acquire in-depth knowledge about requirement & interest of loans and loans of different customer group.

3. To be investigate perspective and preference of individual (customer) of Jivan Commercial Co-operative Bank.

4. To be aware of different type of loans provided by the bank.

5. To be aware about the customer satisfaction for the particular service taken from the Jivan Commercial Co-operative Bank.

6. To be study about the respondent and their varying interest.

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7.) HYPOTHESIS
The hypotheses of the study are as follow

H0: amount of loan is independent of income of customer HA: amount of loan is dependent of income of customer

1. Ho: µ=µ1 2. Ha: μ≠μ 3. Ha: µ<µ 4. Ha: µ>µ

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ReseaRch methodology

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8.) RESEARCH METHODOLOGY
Primary data:
Primary data are those which are collected for the first time. I have taken some information about JCCB by discussing with Loans and Advances department of the bank. I have done data analysis through filling questionnaire from customer and employee.

Secondary data:
Secondary data are those which are already been collected for some other purposes. I have taken the secondary data from internet and from a book "Guidance note on audit of books.” I have also done data analysis on the basis of this secondary data. I have compared the interest rates of various banks with JCCB to fulfill my objectives.

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8.2) SAMPLING PLAN
In practical life, it is not possible to enumerate, investigate and estimate all items in any field inquiry. Therefore when the field of inquiry is large, a complete enumeration of Universe (population) becomes difficult and complicated. At that time, researcher should select ‘sample’ out of total population which represent the most characteristic of population.

Consequently, Researcher must prepare a sample plan for selecting an opposite sample. In this research, sample was selected as 100 customers of Jivan Commercial Co-operative Bank from different branches of city.



Population Size-

In these the customer as well as employee of JCCB is counted which is part of these.



Sample Size

This research is conducted by taking preference of 100 customers as well as of Jivan Commercial Co-operative Bank. It is convenience sampling because this Questionnaires was distributed randomly to all the customers.

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SAMPLING METHOD:
I have to use convenience sampling method to analysis of market research and percentage of investment is dependent of loan taken or independent of income level.



Sampling Procedure

Non-probability

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9.) Data analysis and interpretation
Occupation of Loan Borrower
 . What is your the occupation? □ Business man □ Employee □ Profession □ Retired person No. of customer 27 42 19 12 100
Occupation Of Loan Borrower
45

Type of occupation Businessmen Employee Profession Retired person Total

40

35

30
No. of Customer

25

20

15

10

5

0 Businessmen Employee Type Of Occupation Profession Retired person

In this question, we know that, in different class of occupation who take more loan in these group. in above chart we can see that the employees are 42% means the employees are more take a loan as compare to other group of like businessmen ,Profession and Retied Person are as 27%, 19% and 12%.

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Age group of loan borrower

 What is your age? □ 18 to 35 year □ 35 to 60 year □ 60 to 90 year
Age group of customer 18-35 year 35-60 year 60-90 year Total
Age Group Of Loan Borrower
60

No. of customer 30 48 22 100

50

40
No. of Customer

30

20

10

0 18-35 year 35-60 year Year 60-90 year

In this research on loan and advances, classified the different age group and knowing that who take a more loan. In above chart we can see that the 48% people are those who age is 35 to 60. 30% people are those who age is 18 to 35 year and 22% are those who age group is 60 to 90 years.

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Income Level of Loan Borrower
 . What is your the income level per annum? □ more than 10 laces. □ Between 5 & 10 laces. □ Between 2 & 5 laces. □ Up to 2 laces. Income level of customer Up to 2 laces. Between 2 & 5 laces. Between 5 & 10 laces. More than 10 laces. Total No. of customer 23 44 21 12 100

Income Level Of Loan Borrower
50

45

40

35

No. of Customer

30

25

20

15

10

5

0 Up to 2 laces. Between 2 & 5 laces. Between 5 & 10 laces. More than 10 laces. Income Level Of Customer

In this question, the incomes of borrower are identified. In these, the persons whose incomes are between 2 to 5 laces are 48% means its take more loans then after whose income level is up to 2 laces are 23%,the income of between 5 to 10 laces are 21% and who income is more than 10 laces is 12%.

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Behavior of Staff Member
 What is the behavior of staff members? □ Excellence □ Good □ Adequate □ Average □ Unsatisfactory Behavior Excellence Good Adequate Average Unsatisfactory Total
Behavior Of Staff Member
40

No. of customer 23 36 17 14 10 100

35

30

No. of Customer

25

20

15

10

5

0 Excellence Good Adequate Behavior Average Unsatisfactory

To use these type of question in research, to know the behavior of staff member. In these research 36% people are say that the behavior of staff is good. 23% people are saying that the behaviors of staff are Excellent.14% people are saying that the behaviors of staff are Adequate. In these ways the 14% and 10% are those who said that the behaviors of staff are Average and Unsatisfactory.

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Time Period of Loan
Time period of loan 1 to 3 year 3 to 8 year 8 to 15 year 15 to 25 year Total
Time Period Of Loan
35

No. of customer 18 33 28 21 100

30

25

No. of Customer

20

15

10

5

0 1 to 3 year 3 to 8 year Year 8 to 15 year 15 to 25 year

The customer whose take a loan in the bank is mostly time period 3 to 8 years. In the above chart, clarified that the person whose take a loan for 3 to 8 year is 33%. And then after the person who takes a loan of 8 to 15 year are 28%. The people who take a loan of 15 to 25 years are 21% and the last the person who take a loan of 1 to 3 years are 18%.

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Another Loan from Rival Bank
 Which is another bank from you borrowed other loans? □ UBI □ ICICI □ HDFC □ AXIS □ BOB □ OTHER □ NO ANOTHER LOAN
Bank name UBI ICICI HDFC AXIS BOB ANOTHER LOAN NO ANOTHER LOAN Total No. of customer 12 8 14 6 15 7 38 100

Another Loan From Rival

UBI, 12

ICICI, 8 NO ANOTHER LOAN, 38

HDFC, 14

AXIS, 6 ANOTHER LOAN, 7 BOB, 15

In these chart we seen that the 38% are those not take a loan from another bank then after 15% are those whose take a loan in BOB. in theses way the borrower are also take a loan to different bank. In these 7% are those who take a loan from other bank.

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Qualification of Customer
 What is your education qualification? □ Up to HSC □ Up to Graduation □ Up to Post Graduation □ More than post graduation Qualification Up to HSC Up to Graduation Up to Post Graduation More than post graduation Total
Qualification of Customer
40

No. of customer 37 32 19 12 100

35

30

No. of Customer

25

20

15

10

5

0 Up to HSC Up to Graduation Up to Post Graduation Qualification More than post graduation

These chart is defined the qualification of customer. In these chart, customer who education level is up to HSC are 37%, education level is graduation are 32% the education level is up to post graduation 19% . and other 12% are those who education level are more than post graducation

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Maximum Extent to Take Loan
 What is your maximum extent to take loans? □ Less than 100000 □ between 100000 & 500000 □ Between 500000 & 1000000 □ More than 1000000 Extent Level Less Than 100000 Between 100000 to 500000 Between 500000 & 1000000 More than 1000000 Total
Maximum Extent To Take Loan
40

No. of Customer 12 31 38 19 100

35

30

No. Of Customer

25

20

15

10

5

0 Less Than 100000 Between 100000 to 500000 Between 500000 & 1000000 More than 1000000 Loan Amount

In these chart, the amount of loan is given. In these, the loan amount of Rs.1,00,000 to 5,00,000 is more means the 38% customer are those whose take a loan of amount 1 to s laces. Then after 31% customer are those whose take a loan of amount of Rs. 1,00,000 to 5,00,000.then 19% are take a loan of more than 10,00,000. then 12% are those whose take a loan of less than Rs.1,00,000.

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10.) HYPOTHESIS TESTING

Step-1 hypothesis
H0: extent amount to take loan is independent of income HA: extent amount to take loan is dependent of income

Step-2: Calculated value chi- square test
Data collected through questionnaire is as below

Level of income Extent amount to Up to 2 Between Between More Total take loan laces. 2 & 5 5 & 10 than 10 laces. laces. laces. Less than 100000 8 3 1 0 12 between 100000 & 10 16 4 1 31 500000 Between 500000 & 5 15 13 5 38 1000000 More than 1000000 0 10 3 6 19 Total 23 44 21 12 100

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Expected Frequency (Row total*column total)/n
Extent amount take loan to Up to laces. 2 Between Between More 2 & 5 5 & 10 than 10 laces. laces. laces. 2.76 5.28 2.52 1.44 7.13 13.64 6.51 3.72 8.74 4.37 16.72 8.36 7.98 3.99 4.56 2.28

Less than 100000 between 100000 & 500000 Between 500000 & 1000000 More than 1000000

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Chi-square calculation
(Fo-Fe)2

No.

Observed

Expected

Fo

Fe

Fo-Fe

fo-fe2 /fe

Frequency Frequency 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 8 10 5 0 3 16 15 10 1 4 13 3 0 1 5 6 2.76 7.13 8.74 4.37 5.28 13.64 16.72 8.36 2.52 6.51 7.98 3.99 1.44 3.72 4.56 2.28 x2c 8 10 5 0 3 16 15 10 1 4 13 3 0 1 5 6 2.76 7.13 8.74 4.37 5.28 13.64 16.72 8.36 2.52 6.51 7.98 3.99 1.44 3.72 4.56 2.28 5.24 2.87 -3.74 -4.37 -2.28 -2.36 -1.72 1.64 -1.52 -2.51 5.02 -0.99 -1.44 -2.72 .0.44 3.72 27.46 8.24 13.99 19.10 5.20 5.57 2.96 2.69 2.31 6.30 25.20 0.98 2.07 7.40 0.19 13.84

9.95 1.16 1.60 4.37 0.98 0.41 0.18 0.32 0.92 0.97 3.16 0.25 1.44 1.99 0.04 6.07 33.81

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Step-3: Degree of freedom
Level of significance 5%

Degree Of Freedom is (n) & 5% level of significance

(16) & 0.05 level of significance

Step-4: Table value
Table value at 16 D.O.F and 0.05 level of significance is 0.04 (lower bound) and 9.95 (upper bound)

Step-5: conclusion
Xcal > Xtab (33.81) > (9.95)

H0 is rejected.

Thus extent amount to take loan is dependent of income level of customers.

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11.) SUGGESTION
►The bank can introduce advance technology for banking and should give attention to Manpower time to time.

►The bank can promote confidence and commitment among the staff members, to address the expectations of the customers efficiently and handle technology banking with simplicity. ►The bank can take steps to forecast the changing financial need of customer of different type of group and banking accordingly.

►The bank can identify the reason of few unsatisfied group of customer and should take steps to eliminate their problems and grievances. ►The bank can put together all it hard work to bring more responsiveness and awareness to customers.

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12.) RESEARCH FINDING

→I found that customer is more preferring or favoring personal loan because it is easily available.

→30% customers prefer education scheme. →customers are satisfied with services & other banking facility provided so they are ready to deal but then also the bank is working in very sound condition in every situation.

→70% of customers belongs to services & agriculture in this area farming is the main occupation as well as young people are also going for small wage jobs in the urban area.

→the customer ratio of urban & rural area are 2:3 means 40% customers are from urban & 60% customers are from rural area.

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13.) CONCLUSION
After having all the required information for preparing my report, I have tried to analyze each and every function of the JCCB. During my report all the staff member of the JCCB had well co-operate me. And also I have found that the there is a very good level of commitment in all the staff members. During my report I have try to cover each functional area related to the bank and specially loan department.

After having clear idea about everything In the bank, I can conclude that the JCCB is one of the leading firm in the co-operative and commercial sector, and with advanced technologies and educated staff to try to positioning in the banking market. But than also due to such weaknesses of co-operative sector JCCB bank is also suffering from such limits.

So, at last we can conclude that the JCCB is being leader in the market & bank is getting great goodwill in the market and also great goodwill of the other director helps to the bank in creating good image in the field of the bank.

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14.) LIMITATION OF THE STUDY
1. On account of time constraint whole spectrum of long term lending practices was not possible.

2. Inaccurate and inadequate information might have resulted to wrong interpretation.

3. Only a very few no. of respondent were interviewed to get the information.

4. Accounting information is another constraint.

5. Many time customers are not ready to give private information to the researchers.

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15. IMPLEMENTATION OF THE STUDY
The above study can be helpful to the bank in various ways. Through these research, the bank know that customer as well as employees are satisfy with the service which provided by bank.

Due to these research, the customer as well as employee needs are knowing and then implement that so that the more customer are join and firm are grow up easily. To know current position of the bank and how to implement the various service who aspect by the customer as well as employees.

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16.) SCOPE OF THE STUDY
1. The study is mainly concentrated on the lending practices pattern and influence in the organization performance.

2. Enables the company to know its current position.

3. The study helps in ascertaining people’s response on bank lending

4. To be aware about the customer requirement.

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17.) ANNEXTURE
NAME: ________________________________ AGE: ______

1. What is your the occupation? □ Business man □ Employee □ Profession □ Retired person 2. What is your the income level per annum? □ more than 10 laces. □ Between 5 & 10 laces. □ Between 2 & 5 laces. □ Up to 2 laces. 3. Which types of loans were taken by you? □ Industrial loan □ Pledge □ Consumption loan □ Staff consumption loan □ Vehicle loan □ Gold loan □ Building loan □ Consumable loan □ Machinery loan □ Bill purchase □ Hypothecation-cash credit 4. What is the time period of your loans? □ 1 to 3 year □ 3 to 8 year □ 8 to 15 year □ 15 to 25 year 5. What is your age? □ 18 to 35 year □ 35 to 60 year □ 60 to 90 year 6. Which is another bank from you borrowed other loans? □ UBI □ ICICI □ HDFC □ AXIS □ BOB □ OTHER □ NO ANOTHER LOAN 7. What is your education qualification? □ Up to HSC □ Up to Graduation □ Up to Post Graduation □ More than post graduation

8. What is your maximum extent to take loans? □ Less than 100000 □ between 100000 & 500000 □ Between 500000 & 1000000 □ More than 1000000 9. Are the interest rates acceptable? □ Yes □ No

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10. What is the behavior of staff members? □ Excellence □ Good □ Adequate □ Average □ Unsatisfactory 11. Is your loan secured? □ Yes □ No 12. Is there any hidden cost of loan? □ Yes □ No 13. How much amount would you like to pay as monthly installment for your loans? ____________________ 14. Are the processing charges and administration charges acceptable? □ Yes □ No

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18.) BIBILIOGRAPHY
For preparing this project report, I have taken guidance from various sources which are as follows: 1. BOOKS &JOURNALS: ►PADMANATHA SURESH & JUSTIN PAUL, “MANAGEMENT OF BANKING AND FINANCIAL SERVICES”, PEARSON EDUCATION PUBLISHING PVT, DELHI, THIRDEDITION, 2010. ► VASANT DESAI,”THE INDIAN FINANCIAL SYSTEM AND DEVELOPMENT”, HIMALAYA PUBLISHING HOUSE, MUMBAI, SECOND REVISED EDITION, 2010 ► C.R.KOTHARI,”RESEARCH METHODOLOGY”, NEW DELHI, NEW AGE INTERNATIONAL LIMITED, SEVANTH EDITION 2010 2. by Searching Sites: www.jccb.com 3. BROCHURES OF JIVAN COMMERCIAL CO-OPERATIVE BANK

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