rajkot district co operative ltd bank

Accession the satisfaction level of the existing customerSUMMER TRAINING REPORT

ON

“Accessing the Satisfaction level of the exiting Customer”

AND

COMPANY OVERVIEWAT

RAJKOT DISTRICT CO-OPERATIVE BANK LTD.

SUBMITTED BY: GUIDED BY:

PANSURIYA HIREN R. INTERNAL GUIDE AT GRIMS:

PROF. CHIRAG RATHOD

EXTERNAL GUIDE AT CO.:

R.V.PANARA (DEPU. MANAGAR)

G.I.D.C. RAJJU SHROFF ROFEL INSTITUTE OF MANAGEMENT STUDIES VAPI.

RDCBANK LTD. 1.

Accession the satisfaction level of the existing customer

RDCBANK LTD. 2.


HEAD OFFICESHREE RAJKOT DISTRICT

CO-OPERATIVE BANK RAJKOT.

The objective of the training undertaken is to get specialized knowledge in the specialized

field, which further sharpen the skill and add practicality in the specialization.

This work has not been previously submitted to any other university for any other

examination

DATE: SIGNATURE (student)

PLACE: PANSURIYA HIREN R.

RDCBANK LTD.

DECLARATION

I, MR.PANSURIYA HIREN R. Student of M.B.A – Sem. III hereby declare that the project

work presented in this report is my contribution and has been carried out under supervision of

Professor CHIRAG RATHOD of GIDC RAJJU SHROFF INSTITUTE OF

MANAGEMENT STUDIES.

3.


RDCBANK LTD. 4.


CERTIFICATE

This is to certify that Mr. Pansuriya Hiren r. has satisfactorily completed the project work

entitled” Accessing the Satisfaction level of the exiting Customer” Based on the

declaration made by the candidate and my association as a guide for carrying out this work, I

recommended this project report for evaluation as a part of the MBA programme of Veer

Narmad South Gujarat University.

Place: __ _______________

Date: (Prof. Chirag Rathod)

The project is forwarded for evaluation to Veer Narmad South Gujarat University, Surat for

Presentation.

Place:

Date: ____________________

( Dr. R. S. Shah )

RDCBANK LTD. 5.


PREFACE

I know that training is for the development and enhancement of the knowledge in particular

field. It can never be possible to make a mark in today’s competitive era only with theoretical

knowledge when industries are developing at global level, practical knowledge of

administration and management of business is very important. Hence, practical study is of

great importance to M.B.A. student.

With a view to expand the boundaries of thinking, I have undergone 3rd SEM TRAINING at

RAJKOT DISTRICT CO-OPERATIVE BANK LTD. I have made a deliberate to collect

the required information and fulfill training objective.

RDCBANK LTD. 6.


ACKNOWLEDGEMENT

To acknowledge is very great way to show your gratitude towards the persons who have contributed in your success in one or other way.

I find words inadequate to express my gratitude to the company’s Deputy Branch Manager

Mr. R.V.PANARA for providing me an opportunity to carry out my summer training as such

a well reputed and leading banking company shri Rajkot district co-operative bank ltd.

At the very outset of the training I deem it is my pious duty to express my sincere thanks also

to company’s Branch Manager Mr. B.m.sangani for his continuous guidance and supervision

and support during the training period. I would also like to thank to Mr. Haresh patel, Mr.

Rajesh patel, Mr. Niraj ukani and Mr. Alkesh sojitra who have spared sometime and helped

me out to carry on my project work successfully at the best level.

I would like to thank PROF. CHIRAG RATHOD who has guided me for my project work

and provided encouragement through out my training period.



RDCBANK LTD. 7.


OBJECTIVES OF STUDY

Nowadays Banking sector are booming stage it is contribute very significantly in economy growth and also it prove important of it. Objective behind study of banking sector I’m always interesting to study deep in baking segment.

Game of statistic always attracts me and banking is one or place where we can learn it very well. So I have selected bank and have preferred “Accessing the Satisfaction level of the exiting Customer” for Rajkot District Co-operative Bank with important Statistics as well as illustration. So, I have subsequently decided as my topic for research.



EXECUTIVE SUMMARY

RDCBANK LTD. 8.


“Experience is the best teacher”. This saying has played a said the industry visit as a

part of the curriculum of the MBA programme of GRIMS. This visit & consequent report on

the student took practically visit the industry & study real Business area.

This practical training in the MBA programme of the GRIMS develops the feeling of

awareness among the students of management studies. Along with theoretical knowledge this

training has imparted the complete education of practical world, which is the value addition in

our course.

To fulfill these objectives an industrial visit & project report have becomes an important

part of the MBA programme. This is to have a practical out look of the managerial aspect &

witness the function of management in real business.

I have tried my best to meet the requirement by producing report that is highly

illustrative and clearly explaining concepts that I have learnt during the training period. I have

also paid enough attention to revising and refining the discussion of major concepts customer

satisfaction in RDCBank. This project really has enhanced my practical knowledge of the

different management areas, which will be very much fruitful for me in future.



RDCBANK LTD. 9.

Accession the satisfaction level of the existing customerLIMITATION OF STUDY

Though I have selected the biggest co-operative bank for my study and no doubt here I

have learnt a lot, but compared to nationalize bank, its network is small. The procedure of

credit appraisal, various interest rates on different schemes, recovery programmes are specific

to Rajkot Nagarik Sahakari Bank Ltd.

Also accessing “the satisfaction level of the existing customer” is wide topic; I have

tried to cover the most related with it.

IDEAL SITUATION

Though before this survey, there was never conducted a survey regarding to the final Customer who are actual Accountholder of bank so they responded me in fine way.

When I approached to them they were happy as they have many suggestions to give toThe Bank.

Accountholder helped me in many ways, by taking me to the Accountholder who were some Words, of improvement or suggestions to give to the Bank.

RDCBANK LTD. 10.

Accession the satisfaction level of the existing customerCONTENT

Sr. No. Topic Page No.1 Introduction 13

Early history of banking 14The origin of word “Bank” Type of BankHighlights

2 Project at glanceLocationBoard of DirectorImportant designationOrganization ChartProfit AnalysisWorking CapitalCredit AnalysisKey parameters of BankSWOT AnalysisGeneral Information Non Agriculture LoanSources of FundFund usedMeaning of CreditCredit ManagementForms Of CreditTime wise bifurcation of advancesSecurity wise bifurcation of advancesProcess of Credit

3 Various DepartmentAccount departmentLoan departmentFinance department Administrative departmentPersonal department

RDCBANK LTD. 11.


RDCBANK LTD. 12.


5 NPA Management How account became non-performing assets? Asset Classification

Classification of Non-performing Assets Reason for NPA

Comprehensive Study of on Customer Satisfaction 6 Research Methodology

Problem statementResearch methodologySample designResearch design

7 Data Interpretation &Analysis 8 Findings & Suggestion

FindingsSuggestionsConclusion

9 AnnexureBibliographyAbbreviationQuestionnairePhotos

4 Credit PolicyGeneral Eligibility Criteria for Credit In RDCBInterest Rate on Various Advances Scrutiny of CreditType of creditCollection of chequesCollection of Bills

RDCBANK LTD. 13.


EARLY HISTORY OF BANKING

RDCBANK LTD.

EARLY HISTRY OF BANKING

THE ORIGIN OF WORD “BANK”

TYPE OF BANK

HIGHLIGHT

14.


As early as 2000 B.C., the Babylonians has developed a banking system. There is

evidence to show the temples of Babylon were used as banks. After a period of time, there

was a spread of irreligion, which soon destroyed the public sense of security in depositing

money and valuable in temples. The priests were longer acting as financial 45 agents. The

Romans did minute regulations, as to conduct private banking and to create confidence in it.

Loan banks were also common in Rome. From these the poor citizens received loans without

paying interest, against security of land for 3 or 4 years.

During the early periods, although private individuals mostly did the banking business,

many countries established public banks either for the purpose of facilitating commerce or to

serve the government.

However, upon the revival of civilization, growing necessity forced the issued in the

middle of the 12th century and banks were established at Venice and Genoa. The Bank of

Venice established in 1157 is supposed to be the most ancient bank. Originally, it was not a

bank in the modern sense, during simply an office for the transfer of the public debt.

Again the origin of modern banking may be traced to the money dealers in Florence,

who received money on deposit, and were lenders of money in the 14th century and also in

1349, the business of banking was carried on by drapers of Barcelona.

In India, as early as the Vedic Period, banking, in most crude from existed. The books of

Manu contain references regarding deposits, pledges, policy of loans, and rate of interest.

True, the banking in those days largely mint money lending and they did not know the

complicated mechanism of modern banking.

This is true not only in the case of India but also of other countries. Although, the

business of banking is as old as authentic history, banking institutions have since than

changed in character and content very much. They have developed from a few simple

operation involving the satisfaction of a few individual wants to the complicated mechanism

of modern banking, involving the satisfaction of capital slowly seeking employment and thus

providing the very life blood of commerce.

RDCBANK LTD. 15.


THE ORIGIN OF WORD ‘BANK’ The word ‘Bank’ itself derived from the word ‘bancus’ or ‘banque’ that is a French. There

were others of the opinion that the word ‘Bank’ is originally derived from the German word

‘back’ meaning joint for which was Italianised into ‘banco’.

STATUS WISE BIFURCATION OF BANKS

Scheduled Banks.

Non-Scheduled Banks.

Scheduled BankIn first schedule, Government of India notifies the Primary Banks, which are licensed and

whose demand and time liability are not less than 50 crores in 1987.

Government of India notifies the Primary banks, which are licensed and whose demand and

time liability are not less than 100 crores can only qualify to be included in the second

schedule since 1993.

A bank becomes scheduled when it fulfils the followings:’ A’ grade rating from RBI Demand

and Time Liability over 100 Crores

Satisfy the RBI guidelines related to CRR and SLR As per the norms Priority Sector wise

lending Benefits of Being a Scheduled co-operative are described below: RBI would provide

Rediscounting facility at nominal rate. RBI gives remittance facility at par. The demerit of

being a scheduled co-operative bank is that the bank will not get 0.5% subsidy from RBI.

The conferment of scheduled status on the banks has certain advantages like refinance

facility, directly industrial finance from Reserve Bank of India, avail of Reserve Bank of India

Remittance facility scheme, accept deposits from local bodies, quasi-government

organization, religious, and charitable institutions, guarantees and cheques issued by Banks

are accepted by Government Departments. At the same time, it casts greater responsibility on

the banks in the maintenance of books of accounts and submission of returns.

Non-Scheduled Bank The banks, which are not applicable as per the criteria of Scheduled Banks, are called as a

Non-scheduled Banks. These are very small banks.

RDCBANK LTD. 16.

Accession the satisfaction level of the existing customerTYPES OF BANKS

Reserve Bank of India

Nationalize Bank

State Bank Group

Co-operative Bank

Private Bank

Foreign Bank

RESERVE BANK OF INDIA

The Hilton-young commission, appointed in 1926 has recommended the necessity of centrally

empowered institution to have effective control over currency and financial transaction in the

country. Accordingly, the Government had then passed Reserve Bank of India Act, 1934 and

established the Reserve Bank of India with effect from 1st April 1935. The principal aim

behind this was to organize proper control over the currency management in the interest of

country benefits and to maintain financial stability. With this, the RBI mainly looks after the

following important functions:

To keep effective control over creation of credits and currency supply

To control the Banking transactions of Central and State Governments

To act as Central administered Authority of all other Banks in the Country.

To organize control over Foreign Currency Transaction

To assist for improvement in financial aspects of the country

Nationalize BanksThe Banking Company Act establishes it in July 1969 by nationalization of 14 major banks of

India. The sent percent ownership of the bank is of government of India.

RDCBANK LTD. 17.


State Bank Group

The State Bank of India was established under the State Bank of India Act, 1955, the

subsidiary banks under the State Bank of India (subsidiary Banks) Act, 1959. The Reserve

Bank of India owns the State Bank of India, to a large extent, and rest of the part is some

private ownership in the share capital of State Bank of India. The State Bank of India owns

the subsidiary Banks.

Old Private BanksThese banks are registered under Company Act, 1956. Basic difference between co-operative

banks and private banks is its aim. Co-operative banks work for its member and private banks

work for earn profit.

New Private BanksThese banks lead the market of Indian banking business in very short period, because of its

variety of services and approach to handle customer, also because of long working hours and

speed of services. This is also registered under the Company Act, 1956.

Foreign BanksForeign Bank means multi-countries bank. In case of India Foreign Banks are such Banks, which open

its branch office in India and their head office is outside of India.

Regional Rural Banks (RRB)Regional Rural Banks are added in Indian Banking since October 1975. The Government of

India in terms of the provision of the Regional Rural Bank Act 1976 has established these

banks. The distinctive feature of Regional Rural Bank is that through it is a separate body

corporate with the Commercial Bank, which has sponsored the proposal to establish it. The

Central Government, while establishing a Regional Rural Bank at the request of a

Commercial Bank, shall specify the local limits within which it shall operate. The Regional

Rural Bank may establish its branches or agencies at any place within the notified area.

State Bank of Saurashtra sponsors Regional Rural Banks in Saurashtra.

RDCBANK LTD. 18.

Accession the satisfaction level of the existing customer Co-operative Banks

State Co-operative Banks

State Co-operative Bank means the principal Co-operative society in the state. The primary

objective of which is the financing other co-operative societies in the state.

Central / District Co-operative BanksCentral / District co-operative Bank means the principal co-operative society in a district, the

primary objective of which is the financing of other co-operative in that particular district.

Primary / Urban Co-operative BanksThe primary objective of principal business of which the transaction is of banking business and paid

up share capital and reserve of which are not less than rupees 100,000 and bye-laws of which do

not permit admission of any other co-operative society as a member.

RDCBANK LTD. 19.

Accession the satisfaction level of the existing customerRDCB - The Small Man’s Big Bank

SHRI RAJKOT DICTRICT CO-OPERATIVE BANK LTD. RAJKOT

HIGHLIGHT(As on 31/03/2007)

Bank was registered in1959 and has commenced working in 1960. Bank is holding business license No. RPCD – AHM –5 –C DT 14/9/1994. Bank having 127 branches in the district. Bank having 67 its own Branch building including head office. 72 branches having its own Safe Deposit Lockers facilities (including H.O.) Bank having 785 employees as on DT. 31/03/2007(116 in Head office+669 in other

branches). All 127 Branches + Head office are fully computerized. Last 32 year bank is obtaining Audit class “A”. The total deposit Rs.797.53 crores, which consist 61.67% law cost deposit. Bank having share capital of Rs.22.67 Crores, reserve fund and other fund Rs.107.69

crores working capital Rs.1256.90 crores. Total investment is Rs.471.03 crores (with building furniture& computer). Bank has obtained loans of 317.99 crores. Total advances o/s are Rs.731/-crores. Bank is earning profit since its beginning .As on 31st march ,2007after enough

provisioning the net profit was of Rs.7.75 crores. Bank is paying maximum dividend according to provision of the act, since last 15 years. As on 31st march, 2007 the total cost of management was 2035% (average). As on 31-3-2007 financial margin of the bank is 3.29% and net margin is 1.15%lelel

(average). Capital risk adequacy ratio s on 31-03-2007 is 11.72%. Since last 30 year bank is maintaining first rank in Gujarat sate for the recovery

performance. as on 30th June, 2006 recovery was 99.90%. Rate of interest on deposit are between 5%to8.25percent. Maximum shot term Agriculture loan issued during 2006-07 was Rs.618.35 crores at rate

of interest of 7% to farmers and with 5.5% to PACS (primary agriculture credit society ) as per on GOI’s criteria.

Out of 599 non-subordinate staff 235 employees are trained as on date 31/03/2007. As on year ending 2007 there is non-performance Assets were Rs.18.16 crores thus gross

NPA 2.48% and net NPA is 0.39% of total advances. As per prudential norm bank has made provision of Rs.28.99 Crores against the

requirement Rs. 24.38 Crores for NPA principal and interest. As on 31/3/2006 the total number of affiliate borrowing PACS are 431 out of these 428

are profit making.

RDCBANK LTD. 20.

Accession the satisfaction level of the existing customer Each societies having its own godown facilities and having independent well qualified

secretaries. Average workload per staff during the year 2006-07 was Rs.1.96 Crores. There are 447 PACS affiliate with the bank as on 31/3/07 out of 447 PACSD 4 are

overdue. Cost of management of the societies is at the level of 2.18 percentage (As on 31/3/2006) Bank has introduced a group P.A. insurance policy to cover the risk of Rs.1.50 lakhs for

regular loanee member of the society. Bank has paid Rs.158 lakhs out of total premium of Rs.219 lakhs.

Bank has started to provide the medical benefit scheme for PACS member from Dt.22/6/04 and end of this year total paid RS.24, 87,400/- to 458 kidney, stone, cancer, brain hamrage, paralysis, heard attack patient as social obligation of bank.

Bank always doing preplanning for better recovery. Bank is arrange regular meeting at taluka level place for the proper planning, in the presence of branch manager, inspector, zonal officer Dy.manager, manager, local director and secretaries of the society. Rajkot district bifurcated in five zone headed with DY. Manager zonal. Every possible effort are mad for better and in the time 100% recovery

Bank has received five time in a raw the “best performance award” for the better performance in the all aspect of the working at the state level along with the shield, certificate of merits and cash prize from NABARD .

bank has send 63 PACS secretaries for training at NICM Gandhinagar & paid their expenses @ Rs.1000 per each.

There are 632 total storage godown with PACS of which 135 PACS are with 201 godown of nation grid scheme.

Recently 970godown’s loan is distributed under “rural godown scheme”. (credit link capital investment subsidy scheme).

To implement K.C.C. scheme at very first year bank has provide total expenses of Ra. 16,87,500/- related K.C.C. card & stationary expenses.

As per NABARD and G.O.I. guidelines bank has issued 1.77 Lakhs Kisan credit card. Bank is first in India for launching “Smart Kisan Credit Card” from year 2004-05 as a

addition facility to K.C.C. holder. Total priority sector loan outstanding of Rs.603.06 Crores as on 31/3/07 . Bank has issued 1,276-swarojgar credit card under NABARD’S Scheme. There are 1,053 SHGs & SB A/c with bank branches. and bank has sanctioned loan of Rs.

0.53 Crores for 166 SHGs. Bank is awarded for S.H.G. linkages programme for Two years. The total credit plan of rajkot district under service area approach is Rs. 2,125.28 crores.

Against this, the bank has envisaged the credit outlay of Rs.1, 045.35 Crores. It has largest i.e. 49% share in ACP 2007-08 of Rajkot District.

This bank is first to launch “mahalaxami self help credit card” scheme for the members of self help group with the motto to getting loan smoothly from the bank.

RDCBANK LTD. 21.


RDCBANK LTD. 22.

Accession the satisfaction level of the existing customerLOCATION

Registered Office:

Telephone No. (Acco)-2224865

P.B.X No. - 2231650-1-2-3, 2226610-60-70,

Resister No.:24940/1959

Location No.:RPCD/AMH/55-C/1994

Fax No.: Administration- 0281-2223457 Account- 0281-2226650

Website: www.rdcbank.in E-mail: [email protected] [email protected]

RDCBANK LTD.

“Jilla Bank Bhavan”

Kasturba Road Rajkot

Pin No: 360001

23.

mailto:[email protected]

Accession the satisfaction level of the existing customerSTRUCTURING OF BUILDING

1st floor (account department) Fund management Cash management Statistics Deposit Clearing JPA issuance Audit Reconciliation

2nd floor Office of chairman shri PBX-Telephones Computer

3rd floor Administration Personnel General managers Legal office

4th floor Board room M.D & vice chairman office ING vyaya office

5th floor Loans section Finance section Liquidation Branch audit PACS inspection Vigilance

6th floor Kissan guest house

7th floor Vip guest house

8th floor Meeting holl

9th floor VVIP guest house

RDCBANK LTD. 24.

Shri Vitthalbhai Radadiya (chairman Shri)

Shri Ghanshyambhai Khattariya (Vice Chairman Shri)

Shri Vadhajibhai Boda (managing Director)


Shri Maganbhai Ghoniya(Director Shri)Shri Dayabhai Patel(Director Shri)

Shri Arvindbhai Tagadiya(Director Shri)Shri Chhaganbhai Sojitra(Director Shri)

Shri Gordhanbhai Ghameliya(Director Shri)Shri Dineshbhai Bhuva(Director Shri)Shri Hardevbhai Jadeja(Director Shri)Shri Lalitbhai Radadiya(Director Shri)

Shri Jerambhai Patel(Director Shri)Shri Pravinbhai Raiyni (Director Shri)Shri Mahamad Pirjada(Director Shri)Shri Harjibhai Ajani(Director Shri)

Shri yagneshbhai Joshi(Director Shri)Shri Dr.balubhai Aradva(Director Shri)Shri Nanubhai v.vaghani(Director Shri)

Shri Harichandrasinh Jadeja(Director Shri)Shri Mansukhbhai Bhut(Director Shri)

Shri Hadabhai Radravadiya(Director Shri)Shri B.C. Sakhiya(Director Shri)

Shri C.N.Tarapara(General manager )

RDCBANK LTD. 25.

BOARD OF DIRECTORS 2007


COSIDERABLE POINT

o During last ten year bank has raised deposit Rs.341 corers to Rs. 798 Corers.

o Bank having Rs. 970 lacs fund for shareholder, which has reached unto Rs.2267 lacs.

o Bank have Rs. 2992 lacs reserve which has reached Rs.10,769 lacs.By doing this bank makes very Strong financial condition.

o This bank has got “Best performance award” and prize last five year by prime minister and finance minister.

o First bank in India, which gives credit at 5.5% on KCC and after paying tax liability of Rs.335 lacs although net, profit Rs.775 lacs.

o Bank has also got “Decade award” and prize by state co-operative bank and by doing 99.90% Recovery bank has got first position in the state it maintains last 13 year. This is the first bank in agriculture development bank in state.

o Bank has given KCC and smart card facility for all farmers.o All farmers and employees got shield of personal accident assurance

policy amount of Rs. 1,50,000.o The group member of linkage self help group can get easily credit so that

bank has start plan of “Mahalaxmi Self Help Credit Card”o Bank also helpful in different disease likes cancer, heart attack, brain

hemorrhage, by fulfill all terms and condition.o Bank has commercial building located in a pose area in Rajkot. any KCC

holder can stay in guest house by paying Rs.10.o Locker facility available for 24 hours and 65 days, you can get loan of

rs.100000 against gold ornament from 10 am to 10 p.m o Enhancing non-banking facility by tied up with ING VYASYA and

IFFCO TOKIO GENERAL INSURANCE CO. for getting personal life insurance and Home insurance

o All branches have been fully computerized.o According to RBI, bank has net NPA of 0.39 % only.

RDCBANK LTD. 26.


ACCOMPLISHMENT OF RDCBANK

Continuously get audit class “a” still to 31 year Still to last 14 year 15% dividend distribute according to maximum limit of

regulation. Network of bank with 127+1 branches and head office and 788 employees entire

surrender to customer. 101 branches entire computerized and left all branches will make computerized by

the end of this year. Continuously get “best performance award” still to last five year. “Decade award” from apex bank (state co-operative bank) for best recovery. NABARD gives title of “pioneer Bank” Agriculture affiliate credit gave very liberal and very quick and 100% crop credit

by kissan credit card. Among Banks total credit 84% for priority sector 41% for small farmers and

financial backward class.

FREQUENT CREDIT PLAN

All type of credit for agriculture and agriculture development. Credit against L.I.C/N.S.C/K.V.P AND ornament Credit for home loan and home renovation. Credit for educational propose and small business. Consumers credit for two-wheeler and home appliances.

IMPORTANT DESIGNATION

Chairman Shri: Shri Vithalbhai Radadiya

Vice Chairman Shri: Shri Ghashyambhai Khatariya

General Manager: Shri C.N. Tarapara

Managing director: Shri vaghajibhai Boda

RDCBANK LTD. 27.


ORGANIZATION CHART OF RDCBANK

Interpretation: organization chart of RDCBank clearly shows that it is fully systematic as well as departmental. The specify works has been performed according line organization. Here we can see that the flow of authority moves up to down and responsibility moves down to up. So the organization operate by different department

RDCBANK LTD. 28.

General Manager

Addi. General Manager

Administration Finance Accounts Personnel Loans

Depu.admi’on Depu.finance Depu.account Depu.per’nel Depu.per’nel

Clerk Clerk ClerkClerkClerk


PROFIT ANALYSIS

Year Profit in Crores 31/03/03 8.531/03/04 1031/03/05 9.531/03/06 10.6531/03/07 7.75

Profit in Crores

8.510 9.5

10.65

7.75

0

2

4

6

8

10

12

31/03/03 31/03/04 31/03/05 31/03/06 31/03/07

Financial profit

Pro

fit

Profit in Crores

PROFIT FORECASTING

Here assuming that Year x So, x Profit

RDCBANK LTD.

Year Profit In Crores31/03/03 8.531/03/04 1031/03/05 9.531/03/06 10.6531/03/07 7.75

29.


Year(x) Profit In Crores (y) X=x-2005 XY31/03/03 8.5 -2 4 -1731/03/04 10 -1 1 -1031/03/05 9.5 0 0 031/03/06 10.65 1 1 10.6531/03/07 7.75 2 4 15.5total 46.4 0 10 -0.85

So after putting the value

so, regression line for profit

forecasted profit for up coming yearX=2008

X=2009

= 9.3-.085(2009-2005)

=9.3-0.085(4)

=9.3-.34 =8.96

Y=9.3-0.085(2008-2005) =9.3-0.085(3) =9.3-.255 =9.045

RDCBANK LTD. 30.


X=2010 X=2011 X=2012 X=2013 X=2014

=9.3-0425 =9.3-0.51 =9.3-0.595 =9.3-.68 =9.3-.765

=8.875 =8.79 = 8.705 =8.62 =8.535

Chatting of forecasted Profit

Profit in Crores

9.0458.96

8.8758.79

8.7058.62

8.535

8.28.38.48.58.68.78.88.9

99.1

Year

Prof

it

Profit in Crores

Interpretation: here we can interpret that the trend of profit shows negative but it is totally depends on the past figure so it cannot give real picture. Authority gives manifestation about the negative trend that bank give subsidy at the very low rate among the all other bank and also paid high rate on current account.

WORKING CAPITAL

RDCBANK LTD.

Year Profit in Crores

31/03/2008 9.04531/03/2009 8.9631/03/2010 8.87531/03/2011 8.7931/03/2012 8.70531/03/2013 8.6231/03/2014 8.535

31.


Working Capital

871 914 887 939

1257

0

200

400

600800

10001200

1400

31/03/03 31/03/04 31/03/05 31/03/06 31/03/07

Year

W.C

.in C

rore

s

Interpretation: Here we can see that the trend of working Capital is Increasing but year 2005 where it decrease is it just Exception case through the given five year. So increment in working capital, which depict that increase in daily and regular transaction.

CREDIT ANALYSIS

RDCBANK LTD.

Year W.C.in Crores31/03/03 87131/03/04 91431/03/05 88731/03/06 93931/03/07 1257

32.


Credit

490

519

567

674

731

31/03/03

31/03/04

31/03/05

31/03/06

31/03/07

Cred

it Rs

.

year

Interpretation: here we can interpret that year-by-year credit holders are increase. it’s shows favorable policy for credit.

CREDIT ANALYSIS

RDCBANK LTD.

Year Credit in Crores31/03/03 49031/03/04 51931/03/05 56731/03/06 67431/03/07 731

33.

Accession the satisfaction level of the existing customer Increment in Percentage 31/03/03 to 31/03/07 Difference =731-490 =241

=49.1836%

So here we can say that approximately credit which has been doubled during the five year.

Interpretation: The diagram shows that company year by year enhances the facility of credit

for their customer. it doubled every year exception 2006 to 2007.2006 to

2007 fully makes control over credit facility.

RDCBANK LTD.

Time Duration Credit in Crores Percentage

2003 490 0

2004 519 5.91836

2005 567 9.24855

2006 674 18.8712

2007 731 8.45697

34.

0

5.91836

9.24855

18.8712

8.45697

0

2

4

6

8

10

12

14

16

18

20

2003 2004 2005 2006 2007

Accession the satisfaction level of the existing customerKEY PARAMETERS OF BANK (2006-07)

Particulars Average position during the year 2006-07(in crore)

Actual Position as on 31/03/07(in crore)

Share Capital 2165.05 2266.75Free Reserve 7443.89 8045.00Total Reserve 10865.04 11881.40Net Worth 9608.94 10311.75Deposits 73805.21 79753.33Borrowings 24194.67 31799.25Investments 26438.51 45248.77Loan and Advances 80301.99 73149.36Working Funds 111334.88 125689.93Cost of Deposit 4.99%Cost of Borrowings 5.75%Yield on Loan & ad. 8.71%Yield on Investment 6.58%Cost of Funds 4.56%Yield on Fund 7.85%Misce. In income as % to working fund 0.21%Financial Margin 3.29%Cost of management (2618.54)%working fund 2.35%Net Margin 1.15%Salary& allowances as % to total income 22.75%Salary& allowances (2040.45) as % to total com 77.92%Salary& allowances (2040.45) as % to w.c. 1.84%Borrowings as % to Advances 30.13%CRAR 11.72%Gross NPA (1816.48) as % to total loan&ad. 2.48%Net NPA 0.39%Business per staff 196.31 194.78Business per branch 1203.96 1194.55Salary per staff 2.60Net profit 775.00

RDCBANK LTD. 35.


SWOT ANALYSIS

RDCBANK LTD. 36.

Accession the satisfaction level of the existing customerStrengths

Quality Based service

Reliable Consumers

Loyal Employees

Highly Trained Employees

High Commercial Building locate in reputed area

Power full management

Employees always ready to carry challenges

Weaknesses Weak Updating of the Web site

Low Pay Scale

Opportunities Core Banking

Helps From Govt.

Capture Market Segment

Threats Competitors

Unawareness of rural people

RDCBANK LTD. 37.

Accession the satisfaction level of the existing customerGENERAL

Share Capital and no. Of Members According to last year the total amount of share fund was 2,135.00 Lacks and through year increase in share capital Rs. 134.85and also Amount of Rs.2.70 gave back as share capital fund, so after doing all settlement ending on 31/03/07 Rs.2266.75 left as share fund .On 31/03/06 the total number of shareholder was 839 with bank. Through year other nine additional co-operative institutes were added so it finally became 848 members.

Reserve and fundAt the end of 31-03-06 total amount with fund was 9735.11 during the year the

increase of amt. Rs. 1034.35 at the end of the year the total amt. was 10769.46 Lacs .

Savings

Due to this situation, the Co-Operative banks small network. Limited funds and small business of city’s & village, and limited loans which decided by NABARD, and which Profit made that also 30% taxable according to this budget Announced.

During this struggle this bank has increase there saving 121 crores to 798 Crore within last eleven year. 61 percent amount of it credit as low cost.

Investment of funds.

RDCBANK LTD.

Index Particular Share holder Share capital Rs. 1 Agriculture co-operative Mandli 451 18,57,50,6502 Non Agri . co operative Mandli 247 2,15,81,1003 Other Mandlies 26 9,11,6504 People Co-Operative Bank 13 1,36,11,3005 Taluka Mandli 19 39,82,4006 Milk produce Mandli 63 3,33,7007 Housing Mandli 14 2,02,7508 Water irrigation Mandli 13 2,91,5509 Oil production Mandli 2 10,100

Total 848 22,66,75,200

38.

Accession the satisfaction level of the existing customer Under guiding of RBI & NABARD and the governor rules v/s 71 the bank should invest there fund in central govt. state government trust securities which discuss more detail behind. End of the year total fund Rs.45, 249 lacs.

External Debt

NABARD has Pvt. the new scheme for banks that different schemes areas under.

Loans

Under guide of government of India for the purpose of agriculture development the bank has decide to dabble there loans within three years for this purpose under (KCC) kisan credit card the bank have pass loan of Rs. 619 Crore and NABARD have support of Rs. 234 Crore.

Medium term Agriculture Loan.

As per the requirement of farmer which needs like, irrigation, S,R,T.O Cattle land purchase the bank have pass Rs. 56.07 crore and other tractor 7 trailer Loan of Rs. 44 crore. Annual credit plan

As per the guiding of reserve bank of India. The target for loan in district of Rs. 2125.28 RDC bank target was Rs. 1045.35Which was almost higher than half.

RDCBANK LTD.

Index Particular BorrowingsIn Lacs

Credit opto31/03/07

1 Short term loan (K.K.C) 23,400.00 23,400.002 Project Lending 1196.88 6355.803 Rural Housing Scheme 203.32 825.104 NABARD non farm tiny cottage 53.92 602.595 NABARD ARS farm - 578.636 Cash Credit Non Agriculture - 39.137 Total 24,854.12 31,799.25

39.

Accession the satisfaction level of the existing customerSelf employment credit card

For the establish self employment in rural area and develop small business the RDC bank has pass 1276 Card and loan of Rs. 43 LACSand total 1144 Card and loan of Rs. 3.18.

Self help group bank linkage programmed

For develop small and poor people in society and development of there child and give them social status under guided of NABARD 1053Self help group Bank Account and this bank have pass loan of Rs. 0.34Crore

Smart Kishan Credit Card (KCC) Within the co-operative bank in our country Rajkot District Co-Operative bank is first

who have started this facility. In this KCC the farmer can get emergency loan up to 10.000.

RDCBANK LTD. 40.


NON-AGRICULTURE LOAN

Rural Godawan Yojana

Year 2005-06 govt of India has started following scheme with subdues.

Index Year No. of Godawan Total capacity of godawan(metric tons)

Paid subsidy amt. (Rs. Lack

1 2003-04 86 13,800 61.542 2004-05 155 21,400 102.643 2005-06 268 28,400 81.784 2006-07 431 45,673 171.165 Total 940 1,09,273 416.81

Interpretation: Here we seen that the number of godown year by year it is increase .it is approximately doubled every year.

RDCBANK LTD. 41.

Accession the satisfaction level of the existing customerHousing loan

For the construction or purchase a house for resident or business during the year bank have pass loan of Rs.1034.56Lakhs, for 964Member 712 urban area at Rs.1650.30and total Amt. of Loan is 2684.86Lacks.

Loan Again Gold Jewelry For the emergency need of money for the people of Rural or urban this bank is provide

loan up to 50,000 at rural area and up to 1,00,000 at urban level.

loan agains n.s.c. / k.v.p & lic

For the loan against post office, national saving certificate Kishan Vikas Patra, insurance police, this bank private emergency loan in all the branch in the year 2006/07for this purpose this bank have provide258.48 lackloanto599members.

RDCBANK LTD. 42.


MAIN FUND INFLOW (SOURCES OF FUNDS)

Owned deposit

Deposits

Borrowings

Others

Owned deposit

The owned funds consisting of paid capital of the bank, reserve fund, and other reserves.

DepositsIt is sum of current deposits, fixed deposits, saving deposits, special saving deposits,

NRI deposits, inoperative deposits, etc. It is the main Cash Inflow for any institution.

BorrowingsThe borrowed funds consisting of borrowings from other banks (as per some writer

deposits of various types is also part of borrowed funds), debentures offered to public, etc.

OthersIncrease in current liabilities, reduction in debtors, fund from operations like net

income, depreciation, and reserves, less payment to creditors, reduction in advances,

reduction in inventories, reduction in cash, sold marketable securities, etc.

RDCBANK LTD. 43.


MAIN FUND OUTFLOW (FUNDS USED)

CRR (Cash Reserve Ratio) with Reserve Bank of India

SLR (Statutory Liquidity Ratio) in Reserve Bank of India approved securities.

Loanable Fund

Others

CRR (Cash Reserve Ratio) with Reserve Bank Of IndiaThe capacity of credits creation of bank is depending upon their cash flow received. To restrict this

credit creation, the reserve bank of India has directed their terms. In case of scheduled banks and

sec.18 of banking regulation act are required to maintain the cash reserve ratio *@ 4.75% and non-

scheduled bank @ 3% of their demand and time liability amounts separately. The scheduled banks are

required to deposit the cash reserve ratio amount with Reserve Bank of India while the non-scheduled

banks are required to maintain separate account for this. The Reserve Bank of India is also empowered

to raise the cash reserve ratio up to 15% only in respect of scheduled banks. It is maintained reported

to RBI every fortnight.

*30th April RBI declared new credit policy and as per that RBI reduced CRR with 0.25%

Demand and time liability:Time liability is related with time like, fixed deposits

Demand liability is related with the demand like, Current deposits, inoperative deposit, and

matured fixed deposits

SLR (Statutory Liquidity Ratio)The cash flow for regular banking transactions mainly depends upon deposit received in the

bank. The reserve bank of India there fore puts some restrictions on utilization of these

amounts. The scheduled and non-scheduled banks are required to deposit 25% amount of their

demand and time liability amount in the security approved by reserve bank of India. These

securities are converted into cash and therefore they are termed as ‘liquid assets’ and 25%

amount termed as ‘liquid ratio’. The reserve bank of India is empowered to raise this liquidity

ratio from 25% to 40%. It is maintained average fortnight and reported to RBI.

RDCBANK LTD. 44.

Accession the satisfaction level of the existing customer Loanable FundCredit deposit ratio is not more than 70%.

Loanable funds means amount of money, which is applicable for lending. Three main factors

own fund, deposits, and borrowings decide it. Advances can never be more than loanable

fund.

Loanable fund is a total of: 75% of own funds

70% of deposits

100% of borrowings

Others

Purchase of fixed assets, purchase of marketable securities, addition to advances, addition to

inventories, payment to creditors, payment of dividend, etc...

MEANING OF CREDITThe word ‘credit’ is actually derived from the Latin word ‘Credere’. ‘Credere’ means to have

trust or faith. Thus ‘credit’ is directly related with trust. That is why State Ford stated that

‘Credit is nothing more than that of trust’. By this we can say that credit is a tool that is

resulted by the complete mutual trust/faith.

‘Credit creation implies a situation when a bank may receive interest simply by permitting

customer to overdraw their accounts or by purchasing securities and paying for them its own

cheque or bank may pay amount to borrower or directly to seller of goods whom against

borrower get amount’.

CREDIT MANAGEMENTCredit management means the total process of lending start from inquiry from potential

borrower to recover the lending amount from borrower. Whenever my study is concern, credit

management in sense of banking sector is the set of activities like Except application, loan

appraisal, Shakh posting, monitoring, recovery, NPA management, etc.

RDCBANK LTD. 45.

Accession the satisfaction level of the existing customerFORMS OF CREDIT/ADVANCES

Loan (term loan)

Cash credit and overdrafts

Purchase /discounting of bills

Bank guarantee

Loan/term loan In case of a loan a specified amount is sanctioned by the banker to the customer, who

may either draw the amount in case immediately or may like the amount to be credited to his

current account. But legally it is presumed that he has withdrawn the amount from the bank

and deposited it in his current account. He is required to pay interest on the full amount from

the date of sanction. A loan may be repayable in installments or in lump sum.

Cash credit Cash credit is the main method of lending in India and accounts for above 70% of

total bank credit. Under the system, the banker specifies the limit, called the cash credit limit

for each customer, up to which the customer is permitted to borrower against the security of

tangible assets or guarantees. The customer withdraws from his cash credit account as and

when requires the funds and deposits any amount of money, which he finds surplus with him

on any day. The cash credit amount is thus an active and running account to which deposits

and withdrawals may be affected frequently. The customer is required to provide tangible

assets as security to cover the amount borrowed from the banker. The borrower is charged

interest on the actual amount utilized by borrower and for the period actually utilized only.

Overdrafts When a current amount holder is permitted by the banker to draw more than what

stands to his credit, such an advance is called an overdraft. The banker may take some

collateral security or may grant such advance on the personal security of the borrower. The

customer is permitted to withdraw the amount as and when he needs it and to repay it by

means of deposit in his account as and when it is feasible for him. Interest is charged on the

exact amount overdrawn by the customer and for the period of its actual utilization

RDCBANK LTD. 46.


Bills Purchase The Banker credits customer’s account with the amount of the bill after deduction his

charges. As the demand bills are repayable on demand and there is no maturity, the banker is

entitled to demand their payment immediately on presentation before of drawee. Their

practice adopted in the case of demand bills, is known as purchase of the bills.

Bills Discount In case of bills discounting, a bank credits the amount of the bill to the drawer’s account

before the realization of the bill and thus lends its funds to him after deduction his charges.

The bills purchased and bills discounted by a bank are, therefore, shown in its balance sheet

as part of loans and advances. In case of a bill maturing after a period of time maximum for

180 days in RDCB, the banker retains the bill for that period and realizes the amount of bill

from the drawee on its due date. This practice is called discounting of the bill.

Bank Guarantee It is a contract to perform the promise or discharge the liability of a third person in

case of his default. In case of guarantee, Bank is taking responsibility to pay the amount to

seller if buyer will not pay amount in time.

RDCBANK LTD. 47.


TIME WISE BIFURCATION OF ADVANCES

- Short-term Finance : Up to 26 months

- Medium-term Finance : 26 to 66 months

- Long-term Finance : Above 66 months

SECURITY WISE BIFURCATION OF ADVANCES

Secured Finance / Advances:Secured Advances are those advances, which provide absolute safety to the Banker by means

of a charge, created on the tangible assets of the borrower in favor of the Banker. In such

cases, the Banker gets certain rights in the tangible assets over which a charge is created. A

Secured Loan or Advance means a loan or advance made on the security of assets, the market

value of which is not at any time less than the amount of such loan or advance.

Unsecured Finance / Advances:Unsecured Loan or Advance means a loan or advance, which are not secured, this types of

advances is not preferable for any banking institutions.

RDCBANK LTD. 48.

Accession the satisfaction level of the existing customerPROCESS OF CREDITApplication inward

Shakh report

Advocate report

Branch report

Loan report

Inspection report

Committee report

Fulfill conditions

Equitable mortgage and equitable extension

Make/sign document

Open account

Insurance posting

Record department - filing

Inward application

A customer seeking an advance is required to submit an appropriate application form. There

are different types of application forms for different types of advances available. The

information furnished in the application covers, inter alias, the following: name and address of

the borrower and his establishment, the details of borrower’s business, the nature and amount

of security offered. The application form has to be supported by various ancillary statements

like the financial statements and financial projections of the firm. A separate inquiry

department is set under the loan department. Here, different types of application forms are

available and collect process charge from borrower; application is accepted and entered into

computer.

Shakh report

This is one of the strangest facility of RDCB compare with other co-operative banks in Rajkot

district because of its computerization. This facility provides bank to total ‘kundali’ of the

borrower related to dealing with bank not only as a borrower but also as partner, as a director

also as a guarantor and same detail of the guarantor also and also about all the types of loans,

RDCBANK LTD. 49.

Accession the satisfaction level of the existing customerwhich are already paid up, which are overdue, which are running and also about past

performance of particular.

Advocate report

Bank through its legal department’s staff in two matters prepares advocate report mostly,

which are given below:

In case of land and building loan

Before equitable of immovable property as a security

When the bank prepares advocate report, bank charges some amount from borrower.

Branch turn over report

This report mostly prepare in case of cash credit review/renew, is also known as a branch turn

over report. This report presents:

Performance of borrower with the branch in previous year

Debit-credit transaction of borrower,

Submission of stock statement,

Payment of interest

Last outstanding balance

Processing of application/loan report The application is processed by the clerical staff and checked and passed by senior loan

officer and monitoring by loan manager. The preliminary involves an examination of the

following factors:

Ability, integrity, and experience of the borrower in the particular business

General prospects of the borrower’s business

Purpose of advance

Requirement of the borrower and its reasonableness

Adequacy of the margin

Provision of security

Period of payment

And prepare the appraisal report for committee approval

RDCBANK LTD. 50.


Inspection report

Before presenting appraisal report against the committee, bank sends his field

officer/inspection officer to on site inspection. The situation which created by borrower by

providing information of his business to bank is it fact or not? After the inspection report, this

application is ready for putting against the loan committee of the bank. Inspection varies

according to the various loans. For e.g.

In case of cash credit he personally visits the business site and verifies the original

books of accounts with that of submitted books of accounts. He verifies the real stock with the

stock mentioned if any difference is found it is clearly mentioned in the report.

In case of housing loan inspection officer visits the place and check whether the

building is really in existence or not, whether the construction is as per the statical figure

provided to him and plan is as per sanctioned by the municipal corporation.

Committee approval and terms and conditions Once the application is duly processed, it is put for sanction to the appropriate authority.

Here appropriate authority means various loan committees, standing committee and board of

directors. Loan manager is a sanctioning authority only in case of review of cash credit

facility. Types of committee and its lending powers are given below:

If appropriate authority gives sanction, along with the sanction of advance the bank

specifies the terms and conditions applicable to the advance. These usually cover the

followings:

The amount of loan or maximum limit of the advances

The nature of the advances

The period for which advance is valid

The rate of interest applicable to the advance

The primary security to be charged

The insurance of the security

The detail of collateral security, if any, to be provided

The margin to be maintain

Other restrictions or obligations on the part of the borrower

RDCBANK LTD. 51.


Name Of Committee

1.Board of directors

2. Standing committee

3. Reconsideration committee

4. Loan committee (Rs.500001 to 1000000)

5. Loan committee (Rs.300001 to 500000)

6. Loan sub-committee/1 (Rs.150001 to 300000)

7. Loan sub-committee/2 (Rs.75001 to 150000)

8. Loan sub-committee/3 (Up to Rs.75000)

9. Loan sub-committee/4 (Up to Rs.5,000)

10. Committee for loan against immovable property/1 (Rs.2,50,001 to 5,00,000)

11. Committee for loan against immovable property/2 (Rs.1,50,001 to 2,50,000)

12. Committee for loan against immovable property/3 (Rs.25,001 to 1,50,000)

13. Committee for loan against immovable property/4 (Up to Rs.25,000)

14. Recovery committee/1 (more than Rs.3,00,000)

15. Recovery committee/2 (Rs.1,50001 to 3,00,000)

16. Recovery committee/3 (Up to Rs.1,50,000)

RDCBANK LTD. 52.

Accession the satisfaction level of the existing customer It is common banking practice to incorporate important terms and conditions on a stamped

security document to be executed by the borrower. Rate of stamp duties are given follows:

Demand promissory note : Rs. 1

Letter of guarantee : Rs. 60

*Agreement letter Up to 5,00,000 : Rs. 50

(Letter of lien) Above 5,00,000 : Rs. 2/thousand

Letter of pledge : Rs. 50

Letter of continuity : Rs. 50

Agreement letter for Cash credit/Overdraft

Up to 5,00,000 : Rs. 110

Above 5,00,000 : Rs. 2/thousand

Maximum limit of stamp duty is Rs. 2,00,000

*Agreement letter is in case of vehicle loan, security loan, bills purchase, bills discounting,

guarantee, education loan, etc.

Equitable Mortgage And Equitable Extension

When the loan is sanctioned with condition that to put the real document as a mortgage in

security (prime/collateral), it is must that to make the equitable mortgage of the property.

Some time a property which given in mortgage by borrower is already put before the bank in

case of other loan as a security at that time equitable mortgage is already done by party so

there is no need of equitable mortgage again but the equitable extension is only needed.

Equitable mortgage on non-judicial stamp paper

Amount of sanctioned loan loan of non-judicial stamp paper for equitable mortgage

Up to 15,00,000 1/2% of sanctioned loan

Above 15,00,000 1% of sanctioned loan OR Rs. 1,00,000

(Whichever is less)

RDCBANK LTD. 53.


Make/sign document

This application is now in the document department, document department take signature of

loanee and guarantors in specimen card and also on the sanction letter to seat beside and

verify all the documents. Types of documents are discussed in each type of loan separately.

This process is last for borrower, after this loan is sanctioned. No formality is remaining at the

borrower side.

Open accountNow loan is sanctioned, all formalities are completed. So bank is giving your amount of loan

either by credited in your account or pay the amount to the party, whose quotation is provided

by borrower to bank. Bank opens your account with himself to get the actual transaction

between bank and borrower.

Insurance postingIt is must for loanee to insure the property or equipment, which is hypothecated with the bank

against loan as a security. This policy is assigned in favor of bank, which is also required. In

case of immovable property or new purchase of machinery, equipment, etc. insurance of same

amount and in case of old machinery, goods stock, etc. twice of the price insurance is needed.

In case of education loan, the life insurance of student is required. Shakh department is

posting it in borrower’s account.

Record department – filing Now total process is over and whole documents are need filing for bank record. Record

department does this work. Record department file the documents and store it to proper place.

RDCBANK LTD. 54.


RDCBANK LTD.

ACCOUNT DEPARTMENTLOANS DEPARTMENTFINANCE DEPARTMENTADMINITRATION DEPARTMENTPERSONAL DEPARTMENT

55.


ACCOUNT DEPARTMENT

MANAGER: Bipinbhai M Sangani (2 Year)

UNDER ACCOUNT SECTIONFund Management.

Cash Management

Deposit (Target &Achievements)

Statistics

Audit

Insurance( J.P.A-mediguard Policy)

Safe Deposit Volt—Locker

Reconciliation Branch & Banks

Gold loan Extension Counter

Clearing

1. Investment in SLR/NON-SLR as on 25/05/2007 SLR Rs. 281.17 Crore NON-SLR Rs. 83.76 Crore

_________________ TOTAL Rs. 364.93 Crore

2. Deposit: As on 31/03/2007 Total 798.00 Crore of which 61% low cost Deposit.

3. Safe Deposit Volt facility in 71 branch + Head office 24 hours , 365 day round the clock service with security.

4. Under JPA policy loanee members of PACS, Employees of the PACS and banks, Board of Directors insurance premium borne by the Bank.

5. Bank has started Gold Loan Extension Counter in Haed office. Time for gold Loan 3.00pm to 10.00pm limit for loan Rs.1.00 lakh individual. Special scheme for senior Citizen % ladies is that loan amoumt transfer by M.T. & D.D.Cheque free of commission.

RDCBANK LTD. 56.

Accession the satisfaction level of the existing customerLOAN DEPARTMENT

MANAGER: Shri K.G.Radadiya

Under given task perform by loan department

Credit to agriculture orient co-operative mandalies.

Cash credit to all IRDP.

Inspection to all mandalies and branches.

Insurance against crops and their administration.

Recovery of all kinds of credit.

Maintain the share capital.

Share contribution in government fund and appointment of representative.

Loan procedure

The procedure associated with a working capital loan involves the following principle steps.

Submission of the loan application

The borrower submits the application to the bank. the borrower is required to fill out a common applications form, which seeks comprehensive information about the project. Specially, the common application form covers the following aspects.

Promoters back ground

Particular of the industrial concern

Particular of project.

Marketing and selling arrangement.

Profit and cash flow

Economy consideration.

Government consents. So, above given procedure necessarily passing for loan.

RDCBANK LTD. 57.


FINANCIAL DEPARTMENT

MANAGER: shri R.P.Bhutt

Under given task perform by finance department

All activity related to non-agriculture credit.

Credit against ornament.

Rural godawan yojana.

Housing loan and it’s renovation loan.

Credit against National saving sertificate,kissan vikas patra,LIC

Personal loan.

RDCBANK LTD. 58.


ADMINISTRATIVE DEPARTMENT

MANAGER: shri M.B.Ladani

Under given task perform by administrative department

staff appointment/grading/transfer.

Beneficial activity/social activity.

Provided fund.

Income tax.

Stationary

Right for signature.

Day to day operation.

Staff motor cycle loan.

Maintainace of records and their resolving.

Open the branches and wind up the branches.

Purchase of furniture and fixtures.

RDCBANK LTD. 59.


PERSONAL DEPARTMENT

MANAGER: shri K.R.Vakeriya

Under given task perform by administrative department

Regulatory activities.

Arrangement of different meetings.

Arrangement of election of board of director.

Amendment in bank regulation.

Annual report and annual general meetings.

Staff housing loan.

Proclamation/accomplishment/advertisement/training/English correspondent.

Investment on real estate and it’s Maintainace.

Election and it’s related activities.

RDCBANK LTD. 60.


RDCBANK LTD.

GENERAL ELIGIBILITY CRITERIA FOR CREDITRECOVERY

INTEREST RATE ON VARIOUS ADVANCESSCRUTINY OF CREDIT

TYPE OF CREDITCOLLECTION OF CHEQUES

COLLECTION OF BILLS

61.


GENERAL ELIGIBILITY CRITERIA FOR CREDIT IN RDCB As per the rules of co-operatives, any one who wants to avail finance has to become a

member of the bank.

As a shareholder of the bank, he/she have to make compulsory deposit, or the payment

of deposit as per rules and regulations of the bank and thereafter, he/she can submit

the application for loan. In all the practice with the bank, you are known by bank

through your compulsory deposit number.

The application will have to be submitted in the prescribed form, wherein all details

and particulars will have to be furnished as demanded in the form. He/she has to

submit further particulars as may be asked by the bank.

The loanee will be advanced loan against the security and he/she has to submit 1 or 2

guarantors, who will be the recognized member and accepted to the bank.

The interest will be calculated on month-to-month basis.

Taking in view the total amount of loans taken for different purpose by the firm or

individual, the interest will be calculated at the same rate on all the advances.

It will be necessary to make payment of share deposit or loan deposit at the rate of

2.5% of the sanction in case of secured loan and 5% of sanctioned loan or in case of

unsecured loan. The maximum share deposit accepted of Rs.25000 and additional

deposit over Rs.25000 will be accepted as loan deposit.

The rate of interest on share deposit is 15% and that on loan deposit is 10%.

The company, who wants to take loan from bank, has to get its name registered for the

said loan purpose with the registrar of companies and has to submit the document of

registration charge to the bank.

In case of mortgage of immovable property steps are given below:

Title clear report

Equitable mortgage on non-judicial stamp paper

Amount of sanctioned loan loan of non-judicial stamp paper for equitable mortgage

Up to 15,00,000 1/2% of sanctioned loan

Above 15,00,000 1% of sanctioned loan OR Rs.1,00,000

(Whichever is less)

RDCBANK LTD. 62.


Some time a property which given in mortgage by borrower is already put before the

bank in case of other loan as a security at that time equitable mortgage is already done

by party so there is no need of equitable mortgage again but the equitable extension is

only needed.

In case of immovable property or new purchase of machinery, equipment, etc.

insurance of same amount and in case of old machinery, goods stock, etc. twice of the

price insurance is needed. In case of education loan, the life insurance of student is

required.

Margin money means gap between purchase value and bank finance. Bank always

does payment directly to the seller. So loanee has to deposit the margin money in the

bank.

RECOVERY Recovery management consist of the functions and activities the bank carries out

acquire back what the bank has advanced with principal amount as well as interest on the

same. So it is recovery of what the bank has advanced to loanee for carrying out their

purpose/ objective of taking a loan.

PROCESS OF RECOVERYIf three installments are outstanding,

Notice through branch office

Personal visit and meeting

If no response

Notice through advocate

Though no effect

Claim through court if party ready, of court settlement otherwise

After completion of formalities

Bank will get the order of security from court to recover their due.

RDCBANK LTD. 63.

Accession the satisfaction level of the existing customerINTEREST RATE ON VARIOUS ADVANCES

Particulars Interest rate Installment / Rs.1000

Number of installment

Up to 25000(except vehicle loan)

Up to 25000 vehicle loan

25001 to 200000

200001 to 1000000

Above 1000000

Surety loan, home appliances

Gold loan

Land and building (unsecured) up to 25000

Staff surety loan

Loan against fixed deposit

Building repairing up to 75000

Building purchase, construction

75001 to 200000

200001 to1000000

12%

14%

14%

15%

16%

16%

14%

16%

16%

More than 2% of F.D.

14%

14%

15%

32

32

32

23

23

32

50

32

23

17

17

17

40

40

40

66

66

40

26

40

66

Till the maturity date

of F.D.

108

108

108

RDCBANK LTD. 64.

Accession the satisfaction level of the existing customerSCRUTINY OF CREDIT

While scrutinizing an application from the bank takes into consideration-safety,

liquidity, purpose profitability, security, and spread of advances.

Safety Bank has to see that the prospective borrower is a reliable user of the finance and bank’s

money is safe in his hands.

Liquidity Bank has to find out that the borrower is quite capable in repaying the finance within

reasonable period.

Purpose The purpose for the finance should not be illegal. It should be creative, service oriented,

development oriented, and like. Banks should check end use of funds.

Profitability If the project or the purpose of the finance is not profitable in the hands of the borrower

than he will not be in a position of repaying the amount to bank. It should be profitable

enough to generate the income to satisfy his needs and bank’s dues.

Security The bank has to take into consideration the character, capacity, and capital of the

prospective borrower. Bigger advances and cash credit are to be secured with collateral

security over and above prime security.

Spread of advances For having balanced economy the bank should choose to spread the finance amongst

various sectors of the society, so that the risk of incoming bad advances is minimized.

Concentration on one type of advances may turn into bad advances if the scheme becomes

ineffective due to some natural calamities or government rules or change in taste or demands

of the society, by and large.

RDCBANK LTD. 65.


TYPES OF CREDIT

Surety Loan

Vehicle Loan

Security Loan

Domestic Appliances Loan

Gold Loan

Land And Building Loan/Industrial Building Loan

Educational Loan

F.D. Loan

Cash Credit

Overdraft

Bankable Loan

Bills Purchase

Bills Discounting

Bank Guarantee

Staff Loans

Staff Surety Loan

Staff Housing Loan

Staff Vehicle Loan

RDCBANK LTD. 66.

Accession the satisfaction level of the existing customerCOLLECTION OF CHEQUES (O.B.C.)

Amount Of Cheques Location Listed Above All Other Location

Up to Rs. 5000/- Rs. 10.00 Collecting Banks Commission +

Rs.10 Postage Charge

From Rs. 5001 to 10000 Rs. 15.00 Collecting Banks Commission +


From Rs. 10001 to 1 Lac Rs. 1.50 / 1000 Collecting Banks Commission +


For Rs. Above 1 Lac Rs. 1.50 / 1000 Collecting Banks Commission + Rs.10

Postage Charge

COLLECTION OF BILLS (I.B.C)

Amount Of Bill Location Listed AboveAll Other Location

Up to Rs.1000 Rs, 10.00 Collecting Banks Commission + Rs.10

Postage Charge

From Rs. 1001 to 5000 Rs. 15.00 Collecting Banks Commission + Rs.10

RDCBANK LTD. 67.

Accession the satisfaction level of the existing customerPostage Charge

From Rs. 5001 to 10000 Rs. 25.00 Collecting Banks Commission + Rs.10

Postage Charge

From Rs. 10001 to 1 Lac Rs. 3.00 / 1000 Collecting Banks Commission + Rs.15

Postage Charge

For Rs. Above 1 Lac Rs, 3.00 / 1000 Collecting Banks Commission + Rs.15

Postage Charge

RDCBANK LTD. 68.


HOW ACCOUNT BECOMES NON-PERFORMING ASSETS?ASSET CLASSIFICATION

CLASSIFICATION OF NON-OPERFORMING ASSETSREASON FOR NPA

RDCBANK LTD. 69.


HOW ACCOUNT BECOMES NON-PERFORMING ASSETS?

Term loans If interest or installment of principal remains past due for a period of any two quarters it

becomes NPA.

Past due means is an amount due under any of the facility but not paid within 30 days after it

becomes due.

Cash credit and overdrafts If the account remains out of order for a period of any two quarters, it becomes NPA.

Out of order means

If the out-standing balance remains continuously in excess of the sanctioned limit/drawing

power

There is no credit continuously for six months or

Credit is not enough to cover the interest debited during the same period

Bills purchase and discountingIf the bills remains over due and unpaid for the period of two quarters during the year it

becomes NPA.

Other credit facilityIf any amount to be received remains past due for a period of two quarters during the year, it

becomes NPA.

RDCBANK LTD. 70.

Accession the satisfaction level of the existing customerASSET CLASSIFICATION

The primary (urban) co-operative banks should classify their assets into the following broad

groups, viz.

Performing assets:

Standard assets

Non-performing assets:

Sub-standard assets

Doubtful assets

Loss assets

Non-performing assetsNPAs are loans given by a bank or financial institute where the borrower defaults or delays

payments of interest or repayment of principal. Asset here also includes a leased asset. A NPA

was defined a credit facility in respect of which interest and/or installment of principal has

remained ‘past due’ for a specified period of time. The specified period in a phased manner is

as under

Year ending If interest has remained unpaid, account become NPA

1993

1994

1995 onward

From 2004

4 quarters

3 quarters

2 quarters

1 quarters

Performing assetsWhich accounts are not in performing are performing assets. Which accounts are regular or

cover due installments are less than six is called performing assets.

RDCBANK LTD. 71.

Accession the satisfaction level of the existing customerCLASSIFICATION OF NON-PERFORMING ASSET After identification of borrowed accounts as NPA the next stage is asset classification

Standard assets

Standard Assets is one, which does not disclose any problems and which does not carry

more than normal risk attached to the business. Such as asset should not be an NPA.

Sub-standard assets In case of sub-standard assets, the current net worth of the borrower/guarantors or the

current market value of the security charged is not enough to ensure recovery of the dues to

the banks in full. In other words, such assets will have well defined credit weakness that

jeopardize the liquidation of the debt and are characterized by the distinct possibility that the

banks will sustain some loss.

An asset where the terms of the loan agreement regarding interest and principal have been re-

negotiated or rescheduled after commencement of production, should be classified a sub

standard and should remind in such category for at least 18 months of satisfactory

performance under the re-negotiated or rescheduled terms.

Doubtful assets An asset is required to be classified as doubtful, if it has remained in the sub-standard

category for 12 months. As in the case of sub-standard assets, rescheduling does not entitle

the bank to upgrade the quality of an advance automatically.

A loan classified as doubtful thus all the weakness inherent as that classified as sub-

standard, with the added characteristic that the weaknesses make collection or liquidation in

full, on the basis of currently known facts, conditions and values, highly questionable and

importable.

Loss assets A loss asset is one where loss has been identified by the bank or internal or external

auditors or by the co-operation department or by the Reserve Bank Of India inspection but the

amount has not been written off, wholly or partly, in other words, such an asset is considered

un-collectible and of such little value that its continuance as a bankable asset is not warranted

although there may be some salvage or recovery value.

RDCBANK LTD. 72.


REASON FOR NPA Improper selection of borrowers activities

Weak appraisal system for credit proposal industries problem/prospects not locked

into

Managerial competence of borrower given less consideration

Irregularities in deficiencies in documentation-

Undated

Not renewed

Assessment of borrower and guarantors net worth on market opinion

Lack of review of borrowed accounts

Inadequate staff to contact borrowers frequently

Lack of proper follow up by banks

Failure to take punitive (strict and effective) actions against defaulters

Bank’s failure to appreciate the acts of prompt repayers

Under financing/non financing in time of projects

Mentality and attitude to default willfully

Non action/co-operation of government agencies in recovery

Effect of agricultural debt relief scheme

Inadequate monitoring of court cases and delays in execution

Socio-physical pressure by some people/activities

Target fulfilling under govt. poverty alleviation programme

Lack of income generation due to natural calamities and other uncertainties

RDCBANK LTD. 73.


RDCBANK LTD. 74.


PROBLEM STATEMENT

As there are hundreds of customers of R.D.C.BANK.LTD. So it becomes compulsory to know their level of satisfaction.

And company can also have idea about the improvement, which is to be brought in company’s service.

RESEARCH OBJECTIVE

RDCBANK LTD.

PROBLEM STATEMENT

RESEARCH OBJECTIVES

SAMPLE DESIGN

RESEARCH DESIGN

75.


To check out the customer’s satisfaction level about the account they are using.

To improve the Banking as well as management queries where the customer are not satisfied.

To find out the loopholes where the bank is lacking behind in financial aspects.

RDCBANK LTD. 76.

Accession the satisfaction level of the existing customerSAMPLING DESIGN

Sampling design is one of the most important aspects where the design must be appropriate in order to have the desired result. Sampling design includes various aspect and they are as follows:

Sampling Area : RAJKOT DISTRICT

Sample Population : EXISTING CUSTOMER

Sample Size : 100 ( According to my convenience )

Sample design : Exploratory Data

Methods:

The method used in the research (survey) is of convenience type as we are unaware about the results. It can be either of the side. It is under area of Rajkot under which we have to conduct the research.

The research is based on convenient sampling. In which we made strata according to the customers and Account and then are selected according to my convenience.

RDCBANK LTD. 77.

Accession the satisfaction level of the existing customerRESEARCH DESIGN

Research : Conclusive

Data Source : Primary data

Research Method : Survey Method

Research Technique : Questionnaire

Type of Questionnaire : Structured

Type of Questions : Closed & Open ended Questions

No of Questions : 19

Place : RAJKOT DISTRICT

Data Collection

Primary Data : As the survey had been conducted therefore the data which are collected are considered under primary data.

Secondary Data : As for the pictures and the graph it had been under the Banking related magazines and while for the financial information it was founded from the Annual

Report 2005-06.

RDCBANK LTD. 78.


RDCBANK LTD. 79.

Accession the satisfaction level of the existing customerTO MEASURE SATISFACTION LEVEL OF THE RDCBANK CUSTOMER.

Demographic Profile:

Age:

Group of Age Respondentsless than 30 year 3230-35 year 2035-45year 30more than 45 year 18total 100

Group Of Age

32

20

30

18

less than 30 year30-35 year35-45year

more than 45 year

Findings:- From the survey we have found out that the proportion of less the 30year is

32%and 30%of 35-45 Age group people along with RDCBankRecommendation: here we can see the proportion of less than 30 year is high compare to all so,

bank have introduce the special scheme for who lying under 30 year because it is help full to attract mid adult.

RDCBANK LTD. 80.


Gender:

FINDINGS : here we can see that proportion of female is very less compare to male so, male

accountholder significantly deal with bank.

RECOMANDATION: figure of male and female very disturb it is not shows balance

between them so; banks have introduced some special scheme for

women, which is attractive for women.

RDCBANK LTD. 81.

Accession the satisfaction level of the existing customerOccupation:

Occupation wise Bifurcation

18

12

2224 24

0

5

10

15

20

25

30

Student Profession Business Employed Other

Occupation

Resp

onde

nts Student

ProfessionBusinessEmployed

Other

FINDINGS: in this question 24 respondents employed which is first highest and than

second highest business people and also 24 respondents are lying in

miscellaneous.

RECOMANDATION: Student, Porfession, Business, Employed&Other so in other 24

respondents are including among them most of the farmer,

shepherd& small worker who are taking avail of Smart Kissan

Credit Card, Farmers Club And Medium term agriculture and those

all are occupied in ruler area so bank have lives day to day content

and inform to them by regularly corresponding the new introduce

RDCBANK LTD.

Occupation RespondentsStudent 18Profession 12Business 22Employed 24Other 24

82.

Accession the satisfaction level of the existing customerscheme. And also regularly doing arrangement of seminar as well

meeting, which is helpful to remove ambiguity.

Monthly Income:

Monthly Income

15

48

28

9

0

10

20

30

40

50

60

lessthan7500

7501-12500 12501-20000

More than20000

Income Margine

inco

me

less than75007501-12500

12501-20000More than 20000

FINDINGS: the chart of monthly income clearly shows that most of the customer are

including in 7501-12500 slab. It is almost near by 50% follows by 12501-

20000.

RECOMANDATION: Here we can suggest that most of the customer of bank is comes from

middle class.so, bank should always target the middle class. By

RDCBANK LTD.

Monthly income Responses less than7500 157501-12500 4812501-20000 28More than 20000 09

83.

Accession the satisfaction level of the existing customerintroducing attractive scheme, subsidy at lower cost, credit at low

rate. By doing these activity it is directly helpful to expanding the

market share.

RDCBANK LTD. 84.

Accession the satisfaction level of the existing customer(1) Since how long you are using this Bank?

Year Respondent0-3 year 123-6 year 426-9 year 25more than 9 year 21

12

42

25 21

05

1015202530354045

Number of Respondent

0-3 year3-6 year6-9 year morethan 9year

year

Attechment with bank

0-3 year3-6 year

6-9 yearmore than 9 year

Interpretation: as we have seen that the Graphical representation clearly shows that 12

customers with bank till to less than 3 year,42 customer with bank till to

less than 6 year,25 customer with bank till to less than 9 year and 21

customers with bank more than 9 year.

RDCBANK LTD. 85.


(2) View according to preference after considering Overall performance under given bank.

Miscellenious banks

1015

41

15

613

05

1015202530354045

ICIC

I

HD

FC

RD

CB

UTI

KO

TAK

MA

HIN

DR

A

NA

GA

RIK

SA

HA

KA

RI

BA

NK

Name of bank

Resp

onse

Series2

Interpretation: Consideration of the allover performance of give bank .we can see that

response of the existence customer clearly specify that people along with

bank satisfied through the performance of the bank because 41

respondents gave positive response toward RDCBank.

RDCBANK LTD.

Name of bank Responses ICICI 10HDFC 15RDCB 41UTI 15KOTAK MAHINDRA 6NAGARIK SAHAKARI BANK 13

86.


(3)Which of the following type of Account do you use?

Scheme Level of Satisfaction

Low Medium HighCurrent Acco. 6 7 5

Saving Acco. 14 24 23Fixed Deposit 5 6 10

Question: Dose there any relation between different account which introduce by bank

and Level of satisfaction?

NULL HYPOTHYSIS:

= There is no relation between scheme and satisfaction level

=There is direct relation between scheme and satisfaction level

Observed Data:

Scheme Level of Satisfaction Total

Low Medium High

Current Acco. 6 7 5 18

Saving Acco. 14 24 23 61

Fixed Deposit 5 6 10 21

Total 25 37 38 100

Expected Data:


RDCBANK LTD. 87.

Accession the satisfaction level of the existing customerLow Medium High

Current Acco. 4.5 6.66 6.84 18

Saving Acco. 15.25 22.57 23.18 61

Fixed Deposit 5.25 7.77 7.98 21

Total 25 37 38 100

=0.5+0.0173573+0.49497+0.102459+. 001397756

+0.0126190+0.40320+0.811328+0.09

=2.1316

Significance level -- 5% and Degree of

freedom =(R-1)(C-1)

= (3-1) (3-1)

= 4

So, rejected the null hypothesis

Interpretation: here we can interpret that no relation between the schemes introduce by

the bank and level of satisfaction because it prove by the testing so, null

hypothesis reject.

RDCBANK LTD. 88.


ANOVA ANALYSISWhich of the following type of Account do you use?

NULL HYPOTHESIS: there is no significance different between the account and satisfaction level

Two Way Classifications:


Low Medium High

Current Acco. 6 7 5 18

Saving Acco. 14 24 23 61

Fixed Deposit 5 6 10 21

Total 25 37 38 100

= 36+49+25+-----------------36+100 = 1572

= 3438

= 4486

RDCBANK LTD.

Scheme Level of SatisfactionLow Medium High

Current Acco.

6 7 5

Saving Acco. 14 24 23Fixed Deposit

5 6 10

89.


Corrector Factor =

= = 1111.11

SST(total sum of square)=

= 1572-1111.11 = 460.88

SSR(Sum of Squares Between Row)= -

=

= 1146-1111.11 = 34.89

SSC(Sum of Squares between Columns)=

= 384.2233SSE(Sum of Squares between Residuals)= SST-SSR-SSC = 460.68-34.89-384.2233 = 41.5667Sources Degree of

FreedomSum of Squares Means of Squares Variance

SSR h-1=3-1=2

34.89

SSC K-1=3-1=2

384.2233

SSE (h-1)(k-1)=4 41.5667

SST n-1=8 460.88

Between rows (account)

RDCBANK LTD. 90.


Table value, 5% significance level and (2,4) degree of freedom F=6.9443 so table value is more than calculate value so we conclude that the account scheme of satisfaction do not differ significantly. Between Columns (satisfaction level)

18.4905 Table value, 5% significance level and (2,4) degree of freedom F=6.9443 so table value is less than calculated values so we conclude that satisfaction level of account scheme do not differ significantly.

(4) Which service are regularly use?

Service Responses Current&saving Deposit 38Recurring Deposit 14Term Deposit 19Demand Draft Facility 19Out Station Cheque Facility 5Letter of Credit 5

Interpretation: Among the existence customer most of them are regularly use service

current&saving Deposit service in terms of percentage 38% and it follow

by Demand Draft Facility & Term Deposit.

(5)Reason for using above service: -

RDCBANK LTD. 91.

Different Service

55

14

19

19 38

Current&saving Deposit

Recurring Deposit

Term Deposit

Demand Draft Facility

Out Station ChequeFacility

Letter of Credit


Interpretation: reason for using the service most appropriate reason behind convenient

than Availability than bank charges and rate of interest so we can says

that people are use the banking service according to convenient so bank

charge, rate of interest and availability which is least concern.

RDCBANK LTD.

Reason for using service responseBank Charges 19Rate of Interest 18Convenient 35Availability 28

92.

Reason for Using Service

19 18

3528

05

101520

25

3035

40

Bank Charges Rate of Interest Convenient Availability

Reason

Resp

onse

s


(6) Are you investing excess money in fixed deposit?

Responses RespondentYes 76No 24

Interpretation: Here we can interpret that among 100 customer 76 percent are invest

money in fixed deposit. So fixed deposit account is the best option to invest

the money. we also interpret that people where satisfied with rate for fixed

deposit.

RDCBANK LTD. 93.

User of Fixed Deposit

Yes, 76

No, 24


(7) If yes then in which scheme you have avail of?

Interpretation: Among 100 Respondents 76 Respondent are interesting to invest money in

fixed deposit and 23 people are invest in between 1 to 3 Year9.00%.in

terms of percentage

= 30.2632%

RDCBANK LTD.

Time wise rate of interest Respondents15-45 days rate 5.00% 3

46-90 days rate 5.50% 8 91-179 days rate 7.00% 10

180-1year rate 7.50% 18 Between 1 to 3 year 9.00% 23

3-5 year rate 9.50% 10 5-10 year rate 10.10% 4

Total 76

94.

Fixed Deposit Scheme

3

810

18

23

10

40

5

10

15

20

25

15-4

5da

ys ra

te

91

-179

B

etw

een

5-

10 y

ear

Rate of Interest

Resp

onde

nt

15-45 days rate5.00%

46-90days rate 5.50%

91-179days rate 7.00%

180-1yearrate 7.50%

Between 1to 3 year 9.00%

3-5 yearrate 9.50%

5-10 yearrate 10.10%

Accession the satisfaction level of the existing customer(8) Have you use any kind facility of Credit?

Yes [65] No [35]

Interpretation: Here 65 customers are take benefit of credit facility and 35 people are

refused. most of credit taker are farmer, small worker, and small

businessman.

(9) If yes then which kind of facility are you use?(credit facility) Vehicle loan [18] Bank overdraft [08] Cash Credit [14] Bill of Payment [10] Bank Guarantee [15]

RDCBANK LTD. 95.

User of Credit Facility

1510

148

18

02468

101214161820

Vehicle loan

Bank

overdraft

Cash Credit

Bill of

Payment

BankGuarantee

Type of Credit

Cred

ithol

der

User Of Credit Facility

yes65%

No35%

Accession the satisfaction level of the existing customerInterpretation:65 respondent are take avail of credit facility 18 customer take

credit for vehicle loan,15 take bank guarantee,14 cash credit and

8 bank overdraft.

(10) Are you take subsidy from RDCBank?

Yes [56] No [44]

Interpretation: 56 customers take subsidy from bank.

(11) If yes than specify which facility of subsidy are take? ( Subsidy)

RDCBANK LTD.

Type of Subsidy Subsidy holderMedium term Agriculture Loan. 4

Annual Credit Plan 10Self Employment Credit Card 16

Self Help Group-Bank Linkage Programme 12Farmers Club 4

Smart Kissan Credit Card 10

96.

Subsidyholder

56

44 Yes No

Type of Subsidy

4

10

1612

4

10

Mediumterm Agriculture Loan.

Annual CreditPlan

SelfEmployment Credit Card

Self HelpGroup-Bank LinkageProgramme

FarmersClub

SmartKissan Credit Card

Accession the satisfaction level of the existing customer(12) Level of satisfaction according your Bank charges: -

Opinion about Bank Charges

Level of SatisfactionLow Medium High

Low 5 6 8Moderate 8 20 31High 11 6 5

Question: Dose there any relation between opinion about bank

charges and Level of satisfaction?

NULL HYPOTHYSIS:

= There is no relation between Bank Charges and satisfaction level

=There is direct relation between Bank Charges and satisfaction levelObserved Data:

Opinion about

Bank Charges

Level of Satisfaction Total

Low Medium High

Low 05 06 08 19

Moderate 08 20 31 59

High 11 06 05 22

Total 24 32 44 100

Expected Data:

Opinion about Level of Satisfaction Total

RDCBANK LTD. 97.

Accession the satisfaction level of the existing customerBank Charges Low Medium High

Low 4.56 6.08 8.36 19

Moderate 14.16 18.88 25.96 59

High 5.28 7.04 9.68 22

Total 24 32 44 100

= 0.042456+.001053+0.01550+2.679774+0.066440+0.978489+6.19667+0.1536

=2.2625

Significance level -- 5% and Degree of freedom =(R-1) (C-1)

= (3-1) (3-1)

= 4


Interpretation: here we can interpret that bank charges, which is significantly, impact on

satisfaction level because it prove by the testing so, null hypothesis

reject. we can also says that when the customer select the bank at that

time bank charges consider.

RDCBANK LTD. 98.

Accession the satisfaction level of the existing customer(13) Level of satisfaction according to your Account

Scheme Option Level of Satisfaction

Low Medium HighInadequate 7 6 5

Convenient 7 20 35

More Convenient

5 5 10

Question: Dose there any relation between Scheme and Level of satisfaction?

NULL HYPOTHYSIS:

= There is no relation between Scheme option and satisfaction level

=There is direct relation between Scheme option and satisfaction level

Observed Data:

Scheme Option Level of Satisfaction Total

Low Medium High

Inadequate 07 06 05 18

Convenient 07 20 35 62

More Convenient 05 05 10 20

Total 19 31 50 100

RDCBANK LTD. 99.

Accession the satisfaction level of the existing customerExpected Data:

Scheme Option Level of Satisfaction Total

Low Medium High

Inadequate 3.42 5.58 9 18

Convenient 11.78 19.22 31 62

More Convenient 3.8 6.2 10 20

Total 19 31 50 100

= 3.74748+0.0316129+1.7778+1.9396+0.03154+0.1290+0.3789+0.232270

=8.2683

Significance level -- 5% and Degree of freedom =(R-

1) (C-1)

= (3-1) (3-1)

= 4


Interpretation: here we can interpret that there relation between Scheme opinion and

levels of satisfaction because it proves by the testing so, null hypothesis reject.so, concluded

that the scheme opinion gives positive which direct helpful to satisfaction.

RDCBANK LTD. 100.

Accession the satisfaction level of the existing customer(14)Opinion about Availability, service& Response of Employees

Opinion about Availability, service& Response of Employees

Level of Satisfaction

Low Medium HighExcellent 6 5 9

Good 8 22 17

Moderate 5 6 5

Poor 6 6 5

Question: Dose the availability, Service&Response of Employees Could impact on Level of

Satisfaction

NULL HYPOTHYSIS:

= The availability, Service & Response of Employees Could not impact on Level of

Satisfaction

= The availability, Service & Response of Employees Could impact on Level of

Satisfaction

Observed Data:

Expected Data:

RDCBANK LTD.

Opinion about Availability,

service& Response of

Employees


Low Medium High

Excellent 06 05 09 20

Good 08 22 17 47


Poor 06 06 05 17

Total 25 39 36 100

101.

Accession the satisfaction level of the existing customerOpinion about Availability,

service& Response of

Employees


Low Medium High

Excellent 06 05 09 20

Good 08 22 17 47


Poor 06 06 05 17

Total 25 39 36 100

=0.2+0.3590+0.45+1.1968+0.7348+.0004+0.25+0.0092+0.10028+0.7206+0.05986+0.2050

=4.2859

Significance level -- 5% and Degree of freedom =(R-

1) (C-1)

= (4-1) (3-1)

= 6


Interpretation: here we can interpret The availability, Service & Response of Employees

Could impact on Level of Satisfaction. So, we can conclued that availability, service and reply

of employees and level of satisfaction direct positive relation.

RDCBANK LTD. 102.


(15) Are you satisfied with available service of Banking? Yes [76] No [24]

Interpretation: After tanking 100 sample surveys we can conclude that 76 customer give

positive reply for banking service. So more than 75% customer satisfied

and they will continue with

(16) Have you used the locker facility? Yes [30] No [70]

Interpretation: Here we clearly see that very less customer are uses the locker facilities it

is near by 30 percentages .So bank have necessarily inform to customer for

use the facility.

RDCBANK LTD. 103.

Locker User

Yes30%

No70%

Satisfaction Responnse for Banking service

76

24

YesNo

Accession the satisfaction level of the existing customer(17) Are you satisfied with RDCBank?

Yes [80] No [20]

Interpretation: 80Out of 100 give favorable response toward RDCBank After considering

the overall performance, facility, service, and different schemes.so, existing

most of customer are satisfied.20% are not satisfied with the bank so those

customer may go other bank.

(18) Mention problems faced by you from RDCBank Services: -

Customer define the problems most them facing the problem of

Absence of core banking facility

Absence of ATM facility.

Absence of E-banking facility

It is just available in Rajkot district area.

Procedure for cheque clearance is very time taking process.

So, we can conclude that most of customer want to facility of ATM, core banking

facility, e banking facility but it is might be not possible because the most of the branches

are situated in Rajkot district rural area where not available facility of inter net and it is very

costly so, it may burden for the bank which inversely impact on profit.

RDCBANK LTD. 104.

Satisfaction toward RDCBank

Yes80%

No20%


(19) Will you continue with RDCBank? `

Yes [74] No [26]

Bank Selection

74

260 10 20 30 40 50 60 70 80

Yes

No

Cust

omer

Rep

ly

Respondent

Yes No

Interpretation: 74 customers will continue with bank and 26 customer’s moves to other

bank. Among 26 Customer refused most of them want to join with

bank of Baroda, Punjab National bank, State Bank of India and unit trust

bank of India.

RDCBANK LTD. 105.


RDCBANK LTD.

FINDINGS

SUGGESTION

CONCLUSION

LIMITATION OF STUDY

106.


Findings

From the survey we have found out that mid adult people significantly deal with banks

According to sex-68% are mail and 22% are female deal with bank.

Students, farmers, employed, profession people are the regular customers of the bank.

Qualification level of existing customer most of them graduate and higher secondary.

The existing customer most of them come from meddle class or laying under 7501 to

12500 proportional approximately 50%.

Most of respondent have using this bank less then six year.

The quality of different services meeting the customer’s requirement nobody was in

opinion of filling bed quality this shows that the quality of RDC Bank services is up to

the mark.

Customers also satisfied with bank performance after considering overall

performance.

Most of customers have a saving account with moderate satisfaction.

Current and saving deposit, recurring deposit and terms deposit they are regularly use

but current and saving deposit most frequently using service.

Bank charges, rate of interest, availability and convenient these are the major causes

for using the service but convenient most frequently reply of 35 out of 100.

On the basis of survey I found that 76% are interesting to invest in fixed deposit.

76% customers are fully satisfied in term of service and 24% give negative response.

Almost all customers getting their complains properly handed by the company no way

in negative opinion or having bad experience.

RDCBANK LTD. 107.


SuggestionWhen the survey was conducted it was also asked for any suggestion for improvement

for RDC Bank models. I have found out some suggestion for the bank through survey.

They are as follow.

The bank should focus more on its bank charges strategy for its loyal and regular as

well as other customers. Bank charges rate should be competitive and economic.

No doubt most of the customers are happy with the banking services but still some of

them of the customers are not satisfied with the banking services. Thus and immediate

action is required to find the causes for such event and appropriate action should be

taken.

The company should send their sales executive person in personal to meet the

customers and take their reviews and make the customers aware about recent

development in service and other policy change. In this way they even influence the

decision of the customers to reuse the service. This will also provide the company with

the specific needs of the customers and so they can make improvement in the service.

This will also lead to batter customer relationship and loyalty of the customers.

There is an immediate need of improvement the complaint handling system. System

of the bank, regular feed back from the customers, regular conduct the survey from the

customers will again help them to take strategic decision.

RDCBANK LTD. 108.


ConclusionAfter conducting the survey for RDC Bank and staying with this bank for a period of 8

weeks I concluded that it is almost the highly developing bank with great potential. Account

depart is operate well but still there is a requirement of skill full staff.

Quality wise its services are well accepted. This is one of the most advantageous and

prestigious achievements of RDC Bank.

Through the survey done, I have found that models which are their in the market of

RDC Bank are giving best service to with customer and also have good amount of market

share in Rajkot district.

If we take out and average most of customers are satisfied with the overall

performance of RDC Bank as practical knowledge has got large difference in compare to

theoretical here the scenario total different.

I felt that my purpose of training have been solved as I was given well support and

guide lines without hesitation from employees and they shows keen interest in my work. That

ultimately resulted in to well managed and real research study.

RDCBANK LTD. 109.


BIBLIOGRAPHY

RDCBANK LTD.

BIBLIOGRAPHYABBRIVIATION

QUESTIONNAIRE

110.

Accession the satisfaction level of the existing customerSites

www.capitaline.com

www.investopedia.com

www.wikipedia.com

www.themanagementor.com

www.planwere.com

www.rdcbank.in

Magazines

Business world

RBI bulletin

Books

Financial Management – I M Pandey

Human Resources Management – Ahwathappa

Marketing Management – Kotler & Kelvin

Business statistics -- S.P.Gupta&M.P.Gupta

Annual Reports: RCBank Report 2005-2006

RDCBANK LTD. 111.

http://www.planwere.com/

http://www.themanagementor.com/

http://www.wikipedia.com/

http://www.investopedia.com/

http://www.capitaline.com/


ABBREVIATION

K.P.V.- Kissan Vikas Patra

K.C.C- Kissan Credit Card.

PACS- Primary Agriculture Society

NSC.- National Saving Certificates

JPA-Janta Personal Accident Policy.

SLR-statutory Liquidity Rate.

RDCBANK LTD. 112.


TO MEASURE SATISFACTION LEVEL OF THE RDC BANK CUSTOMER IN RAJKOT DISTRICT REGION.

RDCBANK LTD.

Demographic Profile

Name: _______________________________ Age: Less than 30 Year 30-35 Year 36-45 Year More Than 45 Year

Sex: Male Female

Occupation: Student Profession Business Employed Other If other then mentioned it ___________________

Qualification: Up to 10th Standard Up to 12th Standard Graduation Post Graduation

Monthly Income:

Less than 7500 7501 – 12500

12501 – 20000 More than20000

113.


(1) Since how long you are using this Bank?

0-3 Year 3-6 Year 6-9 Year More than 9 Year

(2) Give your view according to preference after considering Overall performance under give bank. ICICI

HDFC RDCB UTI KOTAK MAHINDRA NAGARIK SAHAKARI BANK

(3) Which of the following type of Account do you use? Scheme Level of Satisfaction

Low Medium HighCurrent Acco. Saving Acco. Fixed Deposit

(4) Which service are regularly use? Current & Saving Deposits Recurring Deposits Term Deposits Demand draft facility Out station cheque collection facility Letter of credit facility (5) Reason for using above service: -

Bank Charges Rate of Interest Convenient Availability

If other then clarify it. ______________________

(6) Are you invest excess money in fixed deposit?

Yes No(7) If yes then in which scheme you have avail of?

15-45 days rate 5.00% 46-90 days rate 5.50% 91-179 days rate 7.00% 180-1year rate 7.50% Between 1 to 3 year 9.00% 3-5 year rate 9.50% 5-10 year rate 10.10% (8) Have you use any kind facility of Credit?

RDCBANK LTD. 114.

Accession the satisfaction level of the existing customer Yes No

RDCBANK LTD. 115.


(9) If yes then which kind of facility are you use? Vehicle loan Bank overdraft Cash Credit Bill of Payment Bank Guarantee Other If other then clarify it . (10) Are you take subsidy from RDCBank?

Yes No (11) If yes than specify which facility of subsidy are take? Medium term Agriculture Loan.

Annual Credit Plan Self Employment Credit Card Self Help Group-Bank Linkage Programme Farmers Club Smart Kissan Credit Card

(12) Level of satisfaction according your Bank charges: - Opinion about Bank Charges


Low Moderate High

(13) Level of satisfaction according to your Account

RDCBANK LTD.

Scheme Option Level of SatisfactionLow Medium High

Inadequate Convenient More Convenient

116.


(14) Opinion about Availability, service& Response of Employees

Opinion about Availability, service& Response of Employees


Excellent Good Moderate Poor

(15) Are you satisfied with available service of Banking?

Yes [ ] No [ ]

(16) Have you used the locker facility?

Yes No

(17) Are you satisfied with RDCBank?

Yes No (18) Mention problems faced by you from RDCBank Services: -

______________________________________________________________________________________________________________________________________________

(19) Will you continue with RDCBank?

Yes No

If No, then which Bank will you choose? __________________

RDCBANK LTD. 117.


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RDCBANK LTD. 120.

rajkot district co operative ltd bank

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