A SUMMER TRAININING REPORT

ON
RURAL CREDIT
A report submitted to LOVELY PROFESSIONAL
UNIVERSITY in partial fulfillment of
Masters in usiness Administration !MA"

SUMITTE# TO$ SUMITTE# Y$
Department of Management VIKAS GARG
LPU Roll no. 19
JALANDHAR at!" #$$%&1$
$
ACKNOWLEDGEMENT
S'!!e(( )( an en*ea+or for !ooperat)+e an* g')*an!e from all, e(pe!)all- *ear one(,
(en)or !olleag'e( an* en+)ronment. .")( /a( ampl- 0ro'g"t o't to me /")le
'n*ergo)ng t"e pro1e!t.
.")( report 0ear( t"e )mpr)nt of man- per(on( /"o "a+e formall- !ontr)0'te* to/ar*(
t"e a!!ompl)("ment of pro1e!t.
S'mmer tra)n)ng /a( pr)+)lege an* ")g"l- re/ar*)ng e2per)en!e to 0e a((o!)ate* /)t"
3.H4 PUNJA S.A.4 566P4RA.IV4 ANK7. I !an8t forget t"e *a-( I (pen* )n
t"e 0an9.
It )( m- pro'* pr)+)lege to e2pre(( m- profo'n* (en(e of grat)t'*e an* )n*e0tne(( to
m- pro1e!t g')*e Mr. RAM PRAKASH :A((t. manager; of t"e 0an9 for t"e)r
enl)g"tene* g')*an!e, 9een )ntere(t, an* e+er /)ll)ng "elp. 5ooperat)+e 0e"a+)or,
!on(tr'!t)+e !r)t)!)(m an* !on()(tent en!o'ragement *'r)ng t"e ten're of m- tra)n)ng
for pro+)*)ng me /)t" ne!e((ar- )nformat)on an* *ata of t"e)r re(pe!t)+e organ)<at)on.
At la(t 0't not lea(t, I /o'l* l)9e to t"an9, I al(o t"an9f'l to m- pro1e!t g')*e Mr.
Gagan *eep Son) )n t")( )n(t)t'te )n )n(t)t'te along /)t" ot"er mem0er( of tea!")ng
*epartment for t"e)r +al'a0le "elp an* !ooperat)on.
VIKAS GARG
1
TALE OF %ONTENTS
%&APTER'$ E(E%UTIVE SUMMARY )
%&APTER*$ INTRO#U%TION TO AN+IN, IN#USTRY
Mean)ng of an9 -
='n!t)on( of 0an9 9
Re+)e/ of l)terat're 1#
A0o't !ooperat)+e 0an9 1>
Pro0lem fa!e* 0- !ooperat)+e an9 1?
%&APETER .$/ %OMPANY INTRO#U%TION
Intro*'!t)on to 5ooperat)+e an9 1%
6rgan)<at)onal (tr'!t're@ management 19
Management of t"e an9 #$
42e!'t)+e a*m)n)(trat)on !omm)ttee( #$
A!t)+)t)e( of t"e 0an9 #1
So'r!e( of t"e an9 #A
%&APTER0$/RESEAR%& MET&O#OLO,Y
Mean)ng A9
601e!t)+e( A9
Re(ear!" In(tr'ment( A9
Data So'r!e A9
Data 5olle!t)on Met"o* A9
Sampl)ng >$
Sampl)ng Pro!e*'re >$
.ool( an* .e!"n)B'e( >$
L)m)tat)on of (t'*- >$

#
%&APETER)$/ NON FARMIN, SE%TOR OF AN+IN,
Intro*'!t)on to non agr)!'lt're loan f)el* of PS5 >#
.op)! 'n*erta9)ng for t")( (t'*- >A
Ho'(e Loan >>
Per(onal Loan C$
5on('mer Loan CA
4*'!at)on Loan C?
Ve")!le loan C9
12 ANALYSIS OF #ATA 1*
32 FIN#IN,S 33
-. SU,,ESTIONS 34
42 ILIO,RAP&Y -'
'52 ANNE(URE -0

A
>
EXECUTIVE SUMMARY
T6e 7o8ernment of India started t6e 9ooperati8e mo8ement of India in '450 :it6
t6e purpose of freein7 t6e farmers from t6e 7rip of mone;lenders2 T6en t6e
7o8ernment t6erefore de9ided to de8elop t6e 9ooperati8es as t6e institutional a7en9;
to ta9<le t6e problem of usur; and rural indebt ness= :6i96 6as be9ome a 9urse for
population2 In su96 a situation An Ape> ban< at state le8el operates as a balan9in7
9enter for t6e resour9e of 9ooperati8e mo8ement in t6e :6ole of t6e state2
T6ere are at present *- State 9ooperati8e ban<s :6i96 are performin7 multipurpose
fun9tions of finan9ial= administrati8e= super8isor; and de8elopment in nature of
e>pansion and de8elopment of 9ooperati8e 9redit s;stem2 In brief= t6e S%s
&a8e to a9t as a friend= p6ilosop6er and 7uide to entire 9ooperati8e stru9ture2
T&E PUN?A %OOPERATIVE AN+ bein7 one of t6e su99essful ban<s amon7
t6e *- S%s2 T6e stud; of non/a7ri9ultural loans of t6e ban< alon7 :it6 t6e
satisfa9tion pro8ided to t6e satisfa9tion pro8ided to t6e 9ustomers in 6ere:it6
underta<en2
T6e Pun@ab state 9ooperati8e ban< ltd2 %6andi7ar6 :as establis6ed on .'
st
au7ust
'404= at S6imla 8ide re7istration no2 3*5 as a prin9ipal Finan9in7 Institute of t6e
9ooperati8e mo8ement in t6e state2
T6e &ead Offi9e of t6e ban< is in .0 se9tors= %6andi7ar62 T6is ban< 6as '4
bran96es and . e>tension 9ounters in t6e %6andi7ar62 T6e bran96 of t6e ban< is
<no:n as %entral %ooperati8e an<2
In t6is pro@e9t T6e Non/A7ri9ultural loans are dis9ussed2 T6e ban< 6as pro8ision
FOR '. +IN#S OF NON/A,RI%ULTURAL LOANS amon7 :6i96 ban< pro8ides
onl; ) t;pes of loans namel;2
Personal Loan
%onsumer Loan
Edu9ation Loan
Ve6i9le Loan
&ouse buildin7 loan
T6e 9ustomer 6as ta<en more t6en one t;pe of loan from institute 2T6e; are satisfied
:it6 t6e ser8i9es of t6e ban< but su77ested t6at t6e formalities s6ould be redu9ed2
Moreo8er t6e; su77ested t6at t6e ban< s6ould adopt t6e latest te96nolo7; of t6e
ban<in7 li<e ATMs= internet A online ban<in7= 9redit 9ards et92 so as to brin7 t6e
ban< at par :it6 t6e pri8ate se9tor ban<s2
C

?
INDUSTRY INTRODUCTION
T6e finan9ial se9tor is in t6e pro9ess of rapid transformation2 Reforms are
9ontinuin7 as part of t6e o8erall stru9tural reforms aimed at impro8in7 t6e
produ9ti8it; and effi9ien9; of t6e e9onom;2 T6e role of an inte7rated finan9ial
infrastru9ture is to stimulate and sustain e9onomi9 stabilit;2 T6e USB*- billion
Indian finan9ial se9tor 6as 7ro:n at around ')C and 6as displa; stabilit; for t6e
last se8eral ;ears= e8en :6en ot6er mar<ets in t6e Asian re7ion :ere fa9in7 9rises2
T6e stabilit; :as ensured t6rou76 t6e resilien9e t6at 6as been built t6e s;stem o8er
time2 T6e finan9ial se9tor 6as <ept pa9e :it6 7ro:in7 needs of 9ooperate and ot6er
borro:ers2 an<s= 9apital mar<ets parti9ipants and insurers 6a8e de8eloped a :ide
ran7e of produ9ts and ser8i9es to suit 8aried 9ustomer reDuirements2 T6e Reser8e
ban< of India 6as su99essfull; introdu9ed a re7ime :6ere interest rates are more in
line :it6 mar<et for9es2 Finan9ial institutions 6a8e 9ombated t6e redu9tion in
interest rates and pressure on t6eir mar7ins b; 9onstantl; inno8atin7 and tar7etin7
attra9ti8e 9onsumer se7ments2 an< and trade finan9iers 6a8e also pla;ed an
important role in promotin7 forei7n of t6e 9ountr;2
WHAT IS BANK?
To a la;man= a ban< is one t6at a99epts deposits from publi9 and lends mone;2 Fe:
#EFINATIONS of ban< are dis9ussed belo:$/

Ean< is an establis6ment for t6e 9ustod; of mone;= :6i96 it pa;s out on
9ustomerFs orderG
T6e definition emp6asiHes t6at a ban< a99epts mone; for safe 9ustod; t6at is
repa;able on order of t6e depositor2
THE CONCISE OXFORD DICTIONARY
Ean< 9olle9ts mone; from t6ose :6o 6a8e it to spare or :6o are sa8in7 it
out of t6eir in9ome= and
It lends t6is mone; to t6ose :6o reDuire it2G
T6is definition brin7s out t6e t:o important fun9tions of a ban<er namel;=
a99eptan9e of deposits and lendin72
D
EA ban< is a 9ommer9ial establis6ment/ a dealer in debts :6i96 aims at earnin7
profit b; a99eptin7 deposits from publi9= :6i96 are repa;able on demand or
ot6er:ise t6rou76 96eDues= drafts or ot6er:ise :6i96 are used for lendin7 or
in8estment2G
%6art I
FUNCTIONS OF BANK
%
=UN5.I6NS 6=
.H4 ANK
PRIN5IPAL AN5ILLARE
A554P.ING
D4P6SI.S
GRAN.ING
ADNAV54S
SA=4 D4P6SI.S
L65K4RS
ISSU4 6= PAE
6RD4R@D4MAND
DRA=.
ISSU4 6=
GURAN.44S
Apart from t"e 0a()! f'n!t)on of a!!ept)ng *epo()t( an* len*)ng mone- t"e 0an9 perform(
t"e follo/)ng ot"er f'n!t)on( al(o. ."e(e areF
%6art II
FUNCTIONS OF BANK
GGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGG

PRIMARE 6R AG4N5E G4N4RAL U.ILI.E
ASI5 =UN5.I6N =UN5.I6NS 6R S4RVI54S 6R
S4RVI54S =UN5.I6N

GGGGGGGGGGGGGG
A5ID .4S. 6.H4RS 1. 5olle!t)on an* pa-ment 1. Re!e)+)ng of
1. A!!ept)ng 1. 5re*)t of !re*)t an* ot"er +al'a0le( for
Depo()t( !reat)on )n(tr'ment(. Safe !'(to*-
#. Len*)ng or #. 5"eB'e #. Sale an* p'r!"a(e #. I((')ng letter of
A*+an!)ng (-(tem of of (to!9, e2!"ange !re*)t
6f loan( pa-ment A. Rem)ttan!e of f'n*( A. A!t)ng a(
>. Repre(entat)on an* 'n*er/r)ter(
5orre(pon*en!e >. I((')ng of g)ft
5"eB'e
C. I((')ng of
.ra+eller(
5"eB'e
?. Deal)ng )n
=ore)gn
42!"ange


T6e Indian ban<in7 s;stem 6as lar7e 7eo7rap6i9 and fun9tional 9o8era7e2 Presentl;
t6e total asset siHe of t6e Indian ban<in7 se9tor is USB *35 billion :6ile t6e total
deposits amount to USB**5 billion :it6 a bran96 net:or< e>9eedin7 11=555
bran96es a9ross t6e 9ountr;2 Re8enue of t6e ban<in7 se9tor 6as 7ro:n at 1 per9ent
%A,R o8er t6e past fe: ;ears to rea96 a siHe of USB') billion2 I6ile 9ommer9ial
ban<s 9ater to s6ort and medium term finan9in7 reDuirement= national le8el and
state le8el finan9ial institutions meet t6e reDuirement2 T6is distin9tion is 7ettin7
blurred :it6 9ommer9ial ban<s e>tendin7 pro@e9t finan9e2 T6e total disbursements
of t6e finan9ial institution in *55' :ere USB'0 billion2 an<in7 toda; 6as
transformed into a te96nolo7; intensi8e and 9ustomer friendl; model :it6 a fo9us
9
on 9on8enien9e2 T6e se9tor is set to :itness t6e emer7en9e of finan9ial supermar<et
in t6e form of uni8ersal ban<s pro8idin7 a suite of ser8i9es from retail to 9orporate
ban<in7 and industrial lendin7 to in8estment ban<in72 I6ile 9orporate ban<in7 is
9learl; t6e lar7est se7ment= a personal= finan9ial ser8i9e is t6e 6i76est 7ro:t6
se7ment2 T6e re9ent fa8orable 7o8ernment poli9ies for en6an9in7 limits of forei7n
in8estments to 04 per9ent amon7 ot6er <e; initiati8es 6a8e en9oura7ed su96 a9ti8it;2
Lar7e ban<s :ill be able to mobiliHe suffi9ient 9apital to finan9e asset e>pansion and
fund in8estments in te96nolo7;2
1$
REVIEW OF LITERATURE
RECENT HISTORY OF BANKING
Indian ban<in7 s;stem= o8er t6e ;ears 6as 7one t6rou76 8arious p6ases after
establis6ment of Reser8e an< of India in '4.) durin7 t6e ritis6 Rule to fun9tion
as 9entral ban< of t6e 9ountr;2 Earlier to t6e 9reation of RI= t6e imperial an< of
India :as loo<in7 after t6e 9entral ban< fun9tions2 In '4)0= t6e all Indian Rural
%redit Sur8e; %ommittee submitted its report re9ommendin7 9reation of a stron7=
inte7rated= State partnered 9ommer9ial ban<in7 institution :it6 effe9ti8e ma96iner;
of bran96es spread all o8er t6e 9ountr;2 T6e re9ommendation of t6is 9ommittee led
to t6e establis6ment of first Publi9 Se9tor an< in t6e name of State an< of India
on ?ul; '= '4)) b; a9Duirin7 t6e substantial part of s6are 9apital b; RI of prin9el;
states= asso9iate ban<s 9ame into fold of publi9 se9tor ban<in72
Anot6er e8aluation of t6e ban<in7 in India durin7 '411= as t6e pri8ate ban<s :ere
still not e>tendin7 t6e reDuired support in t6e form of 9redit disbursal= more
parti9ularl; to t6e or7aniHed se9tor2 T6e bul< of deposits 9olle9ted :ere deplo;ed in
or7aniHed se9tors of t6e industr; and trade= :6ile farmers= small entrepreneurs=
transporters= professionals and self/ emplo;ed 6ad to depend on t6e mone; lenders
:6o e>ploit t6em b; 96ar7in7 6i76er interest rates2 In Februar; '411= a s96eme of
so9ial 9ontrol :as set up :6ose main fun9tion :as to periodi9all; assess t6e demand
for ban< 9redit from 8arious se9tors of t6e e9onom; to determine t6e priorities for
7rant of loans and ad8an9es so ass to ensure optimum and effi9ient utiliHation of
resour9es2 T6e s96eme 6o:e8er= did not pro8ide an; remed;2
On ?ul; '4= '414 t6e 7o8ernment promul7ated ban<in7 9ompanies !A9Duisition And
Transfer Of Underta<in7s" Ordinan9e '414 to a9Duire '0 bi77er 9ommer9ial ban<s
:it6 paid up 9apital of Rs2 *-2)5 9rores= deposits of Rs2 *1*4 9rores= loan of Rs2'=-'.
9roress and :it6 0'.0 bran96es a99ountin7 or -5C of ad8an9es2 SubseDuentl; in
'4-5= 1 more ban<s :ere nationaliHed :6i96 brou76t 4'C of deposits and -0C of
ad8an9es in publi9 Se9tor an<in72 #urin7 #e9ember '414= RI introdu9ed t6e lead
an< S96eme on re9ommendation of F+ Nariman %ommittee2
IN t6e post nationaliHed period= t6ere :as substantial in9rease in t6e number of
bran96es opened in rural semi/urban 9enters brin7in7 do:n t6e population per
ban< bran96 to '*555 appro>2 #urin7 '431= RIs :ere establis6ed !on
re9ommendation of M2 Narasim6am %ommittee" under t6e sponsors6ip and
support of publi9 se9tor ban< as t6e .
rd
9omponent multi a7en9; 9redit s;stem for
t6e a7ri9ultural and rural de8elopment2 T6e Ser8i9e Area Approa96 :as introdu9ed
durin7 '4-42 I6ile t6e '435s and '4-5s sa: t6e 6i76 7ro:t6 rate of bran96 ban<in7
net:or<= t6e 9onsolidation p6ase started in late -5s and more parti9ularl; durin7
earl; 45s :it6 t6e submission of report b; Narasim6am %ommittee on reforms in
Finan9ial Ser8i9es Se9tor durin7 '44'2
11
In t6ese fi8e de9ades sin9e independen9e= ban<in7 in India 6as e8ol8ed t6rou76 four
distin9t p6ases namel;2
FOUNDATION PHASE$ T6is p6ase 9an be 9onsidered to 9o8er '4)5s
and '415s till nationaliHation of ban<in7 s;stem in t6e 9ountr;2 As a result
t6e p6ase :itnessed t6e de8elopment of ne9essar; le7islati8e frame:or< for
fa9ilitatin7 re/or7aniHation and 9onsolidation of t6e ban<in7 s;stem2 For
meetin7 t6e reDuirement of Indian e9onom; in '4)) and nationaliHation of '0
ma@or pri8ate ban<s durin7 '4142
EXPANSION PHASE$ T6is p6ase be7an in mid 15s but 7ained
momentum after nationaliHation of ban<s and 9ontinued till '4-0 a
determined effort :as made to ma<e ban<in7 fa9ilities a8ailable to t6e
masses 2ran96 net:or< of t6e ban<s :as :idened at a 8er; fast pa9e
9o8erin7 t6e rural and semi urban population= :6i96 6ad no a99ess to t6e
ban<in7 6it6erto2 Most importantl;= 9redit flo:s :ere 7uided to:ards t6e
priorit; se9tors2
CONSOLIDATION PHASE$ T6is p6ase started in '4-) :6en too< a
series of poli9; initiati8es= :6i96 sa: mar<ed slo:do:n in t6e bran96
e>pansion2 Attention :as paid to impro8in7 6ouse <eepin7 9ustomer ser8i9es=
9redit mana7ement= staff produ9ti8it; and profitabilit; of ban<s2
REFORMS PHASE$ T6e ma9ro e9onomi9s 9rises fa9ed b; t6e 9ountr; in
'44' pa8ed t6e :a; for t6e e>tensi8e finan9ial se9tor reforms :6i96 brou76t
dere7ulation of interest rates= more 9ompetition= te96nolo7i9al 96an7es=
prudential 7uidelines on asset 9lassifi9ation and in9ome re9o7nition= 9apital
adeDua9;= autonom; pa9<a7es= et92
1#
COOPERATIVE BANK
T6e 9ooperati8e ban< 6as 6istor; of almost '55 ;ears2 T6e 9ooperati8e ban<s are an
important 9onstituent of t6e Indian Finan9ial S;stem= @ud7in7 b; t6e role assi7ned
to t6em= t6e e>pe9tations t6e; are supposed to fulfill t6eir number and t6e number
of offi9es t6e; operates2 T6e 9o/operati8e mo8ement ori7inated in t6e Iest= but t6e
importan9e t6at su96 ban<s 6a8e assumed in India is rarel; paralleled an;:6ere
else in t6e :orld2 T6eir role in rural finan9in7 9ontinues to be important e8en toda;=
and t6eir business in t6e urban areas 6as in9reased p6enomenall; in t6e re9ent
;ears mainl; due to t6e s6arp in9rease in t6e number of primar; 9o/operati8e
ban<s2 I6ile t6e 9o/operati8e ban<s in rural areas mainl; finan9e a7ri9ultural base
a9ti8ities in9ludin7 farmin7= 9attle = mil<= 6at96er; = personal finan9e et92 alon7 :it6
some small s9ale industries and self/emplo;ment dri8en a9ti8ities= t6e 9o/operati8e
ban<s are Duite for:ard loo<in7 and 6a8e de8eloped suffi9ient 9ore 9ompeten9ies to
96allen7e state and pri8ate se9tor ban<s2 A99ordin7 to NAI%U= t6e total deposits
and lendin7 of %o/operati8e ban<s are mu96 more t6an old pri8ate se9tor ban<s
J also t6e ne: pri8ate se9tor ban<s2 T6is e>ponential 7ro:t6 of %o/operati8e ban<s
is attributed mainl; to t6eir mu96 better lo9al rea96 personal intera9tion :it6
9ustomers= and t6eir abilit; to 9at96 t6e ner8e of t6e lo9al 9lientele2
T6ou76 re7istered under t6e %o/operati8e so9ieties a9t of t6e Respe9ti8e State
!:6ere formed ori7inall;" t6e ban<in7 related a9ti8ities of t6e 9ooperati8e ban<s are
also re7ulated b; t6e Reser8e an< of India2 T6e; are 7o8erned b; t6e an<in7
Re7ulation A9t '404 and ban<in7 la:s A9t '41) t6e 9ooperati8e ban<s are small
siHed units or7aniHed in t6e 9ooperati8e se9tor= :6i96 operate bot6 in urban and non
urban 9enter2 T6e; finan9e small borro:ers in industrial and trade se9tor besides
professional and salar; 9lasses2 Re7ulated b; t6e RI= t6e; are 7o8erned b; t6e
ban<in7 la:s !%ooperati8e So9ieties" a9t '41) t6e 9ooperati8e ban<in7 stru9ture in
India is di8ided into 0 9omponents$
a" Primar; 9ooperati8e 9redit so9iet;
b" %entral 9ooperati8e ban<s
9" State 9ooperati8e ban<s
d" Landin7 de8elopment ban<s
STATE COOPERATIVE BANKS (SCBs)
T6ese are t6e ape> institutions in t6e . tier 9ooperati8e stru9ture at t6e state le8el2
T6e S% is a federation of 9entral 9ooperati8e ban< and a9t as :at96do7 of
9ooperati8e ban<in7 stru9ture in t6e state2 Its funds are obtained from s6are 9apital=
deposits= loan and o8erdrafts from t6e RI2 T6e S%s lend mone; to %bs and
primar; so9ieties and not dire9tl; to farmers2
CENTRAL COOPERATIVE BANKS (CCBs)
T6ese are t6e federation of primar; 9redit so9ieties in a distri9t2 T6e; are of * t;pes$

1A
T6ere 9an be 9ooperati8e ban<in7 unions :6ose members6ip is open onl; to
9ooperati8e so9ieties2
T6ere 9an be mi>ed %%s :6ose members6ip is open to bot6 indi8iduals and
9ooperati8es so9ieties2 T6e funds of t6e ban< 9onsist of s6are 9apital=
deposits= loans and o8erdrafts from S%s2 T6e ban< pro8ides loans to
primar; 9redit so9ieties :it6in t6e limit of t6e borro:in7 9apa9it; of
so9ieties2 &o:e8er= some loans are also 7i8en to indi8iduals and ot6ers2
PRIMARY COOPERATIVE CREDIT SOCIETY
It is a 8illa7e institution = :6i96 dire9tl; deals :it6 t6e rural people 2It en9oura7es
sa8in7s amon7 t6e a7ri9ulturalists = a99ept deposits from t6em= 7i8es loan to t6e
need; borro:ers and 9olle9ts repa;ments2 T6e funds of t6e so9iet; are deri8ed from
t6e s6are 9apital= deposits of members and loan from %%s2 T6e borro:in7 po:ers
of t6e members as :ell as of t6e so9iet; are fi>ed2
LAND DEVELOPMENT BANKS
eside s6ort term 9redits= a7ri9ulturalists also needs lon7 term 9redit for ma<in7
permanent impro8ement in land= for repa;in7 old debts= for pur96asin7 ma96iner;
and ot6er implements2 %ooperati8e ban<s and 9ommer9ial ban<s b; t6eir 8er;
nature are not in position to pro8ide lon7 term loans be9ause t6eir deposits are
mainl; demand deposits2 T6us= t6ere :as 7reat need for a spe9ialiHed institution for
suppl;in7 lon7 term 9redit to a7ri9ulturalists2 T6e establis6ment of land
de8elopment ban<s no: <no:n as 9ooperati8e and rural de8elopment ban<s
!%AR#S" is an effort in t6is dire9tion2 T6is state 7o8ernment and RI 7o8ern
L#s2 re9entl;K t6e super8ision of L#s :as 7i8en to national ban< of a7ri9ulture
and rural de8elopment !NAAR#"2 T6ese sour9es of funds for t6e ban<s are
debentures subs9ribes b; bot6 9entral and state 7o8ernment2 T6ese ban<s do not
a99ept deposits from 7eneral publi92
T6us= t6e Ape> of t6e 9ooperati8e or7aniHation in t6e state is t6e state ban< to :6i96
%entral an<s into lo9al unions for t6e purpose of super8ision2 All of t6em are
forbidden to lend to non members e>9ept :it6 t6e san9tion of t6e re7istrar of t6e
9ooperati8e so9ieties2
1>
PROBLEMS FACED BY COOPERATIVE BANKS
'2 T6e 9ooperati8e finan9ial institution is fa9in7 se8ere problems :6i96 6a8e
restri9ted t6eir abilit; to ensure smoot6 flo: of 9redit and also in meetin7 t6e
reDuirement of t6e farmin7
i2 Limited abilit; to mobiliHe resour9es2
ii2 Lo: Le8el of re9o8er;2
iii2 &i76 transa9tion of 9ost2
i82 Administered rate of interest stru9ture for a lon7 time2
*2 #ue to 9ooperati8e le7islation and administration mandates ,o8t interferen9e 6as
be9ome a re7ular feature in t6e 7a; Lto/da; administration of t6e 9ooperati8e
institution2 Some of t6e problem area t6at arise out of t6e appli9abilit; of t6e
9ooperati8es le7islati8e are
i2 #eliberate 9ontrol of 9ooperati8es b; t6e 7o8ernment2
ii2 Nomination of board of dire9tor b; t6e 7o8ernment2
iii2 Parti9ipation of t6e nominated dire9tor b; t6e 7o8ernment2
i82 #eputation of 7o8ernment offi9ials to 9ooperati8e institution et92
.2 T6e state 9ooperati8e ban<s are not able to formulate t6eir respe9ti8e poli9ies for
in8estment of t6eir funds t6at in9lude t6eir surplus resour9es be9ause of 9ertain
restri9tions2
02 Prior appro8al of RI is mandator; for openin7 of ne: bran96es of S%s2 T6e
S%s are reDuired to submit t6e proposal for openin7 of ne: bran96es to RI
t6rou76 NAAR#= :6ose re9ommendation is primaril; ta<en into 9onsideration
:6ile a99ordin7 permission2
)2 T6ere is t6e 9ondition of 7o8ernment 7uarantee b; NAAR# :6ile san9tionin7
9redit limits to S%s and #%%s but no sta7e t6e 9ommer9ial ban< and re7ional
rural ban<s are 9alled upon to e>e9ute an; ,o8t ,uarantee :6ile san9tionin7
referen9e b; NAAR#2
12 On t6e number of o99asions institute li<e food 9ooperation of India2 Indian Oil
%orporation= &industan Petroleum et92 &a8e issued instru9tion in :ritin7 t6at
demand draftA pa; order s6ould be obtained from t6e nationaliHationA s96edule
ban<2
32 S%s does not pro8ide loan dire9tl; to farmers due to :6i96 t6e; 9annot <eep
pa9e t6e 96an7in7 reDuirements of t6e farmers2
1C
1?
INTRODUCTION
T6e Pun@ab State %ooperati8e an< :as establis6ed at S6imla on .'
st
au7ust in t6e
;ear '404 as an Ape> ban< of t6ree/ tier s6ort term %ooperati8e %redit Stru9ture
:it6 re7istration number 3*5 as a prin9ipal finan9in7 institute of t6e 9ooperati8e
mo8ement2 It 6as . di8isional offi9es at Amritsar= at6inda and ?aland6ar2 It 6as '4
bran96es and . e>tensions 9ounters operatin7 in t6e 9it; of %6andi7ar62 esides
t6is== t6ere are '4 distri9t 9entral 9ooperati8e ban<s 6a8in7 3-. bran96es and '1
e>tension 9ounters in t6e state of Pun@ab affiliated :it6 it2 T6e ban< :as establis6ed
to 6elp to pro8ide timel; and adeDuate flo: of 9redit to t6e farmers for a7ri9ulture
and allied a9ti8ities t6rou76 PA%S2 T6e mat96less 9ontribution made b; t6is
premiere 9ooperati8e institution of t6e state not onl; in promotin7 dire9t
emplo;ment to people but also 6elps in raisin7 t6e e9onomi9s standard of t6e
benefi9iaries2 T6ere is no area of life :6ere t6is premiere institution 6as not pla;ed
its part2 From a farmer= trader man to bi7 industrialist= e8er;bod; 6as been 9o8ered
in t6e fold of t6is institution2 T6e 7reen= :6ite and s:eet re8olutions in t6e state of
Pun@ab are some of t6e ma@or a96ie8ement in :6i96 t6is institute 6as pla;ed a 8ital
role2 It :as t6e timel; adeDuate and easil; a99essible finan9ial assistan9e to t6e rural
peasantr; in a7ri9ulture and allied a9ti8ities su96 as diar;= poultr;= su7ar9ane et9
t6at 6as been instrumental in ma<in7 t6eir a9ti8ities most su99essful2

1D
%6art III
ORGANISATIONAL STRUCTURE/ MANAGEMENT
1%
MANA,IN,
#IRE%TOR

AM# !Admn2" AM# !an<in7"
#2R2 !VI,2" Estt2 Offi9e
L2O2 A2%2F2A
,2M2
!OJA"
,2M2
!IJF"
,2M2
!#i82 Offi9es"
#,M!OJ#"
A,Ms
Sr2 Mana7er
Mana7er
#,M !IJF"
A,Ms
Sr2 Mana7er
Mana7er
A,Ms
Sr2 Mana7er
Mana7er
OAR# OF #IRE%TORS
! '4 #ire9tors from %%s= ' from Ape> so9s2=
from state 7o8t2= R%S= %,M NAAR#=
M2#2Ape> A
At present= super8isor; offi9er !R%S= Pun@ab"
is Performin7 t6e fun9tion of oard of
#ire9tors.
MANAGEMENT OF BANK
T6e board of dire9tors la;s do:n t6e broad poli9ies re7ardin7 t6e :or<in7 of t6e
ban<2 T6e board of dire9tors is 9onstituted for a period of ) ;ears2 T6e 9onstitute of
board is 7i8en belo:$
'2 One dire9tor from ea96 9entral 9ooperati8e ban<2
*2 T:o dire9tors to be ele9ted out of t6e representati8es of affiliated
9ooperati8e so9ieties ot6er t6an 9entral 9ooperati8e ban<s one from t6e
Ape> 9ooperati8e so9ieties and one from ot6er member 9ooperati8e
so9ieties2
.2 Ma>imum t6ree nominees of t6e 7o8ernment so lon7 as 7o8ernment
9ontribution to s6are 9apital of t6e ban< lasts2
02 Re7istrar or nominee not belo: t6e ran< of additional re7istrar2
)2 Mana7in7 dire9tor of t6e ban<2
12 Representati8e of NAAR#2
T6e members of board of dire9tors ele9t from out of t6e ele9ted members= t6e
96airman and 8i9e 96airman2 In t6e absen9e of t6e board= t6e ban< is to be loo<ed
after b; t6e administration i2e2 R%S= Pun@ab2
EXECUTIVE/ ADMINISTRATION COMMITTES
T6e e>e9uti8e 9ommittee 9onsists of 4 members in9ludin7 t6e 96airman= 8i9e
96airman= Re7istrar or 6is nominee not belo: t6e ran< of Additional Re7istrar= t6e
Mana7in7 #ire9tor and ) #ire9tors ele9ted b; t6e oard from amon7st t6emsel8es2
T6ere is also an Administrati8e 9ommittee to 7o8ern ser8i9e matters of 9ommon
9adre emplo;ee2
19
ACTIVITIES
1. NONFARM SECTOR
To di8ersif; t6e loanin7 portfolio of 9ooperati8e ban<s in Pun@ab a be7innin7 :as
made durin7 t6e ;ear '44*/4.2 All t6e %%s :ere allo:ed to pro8ide t6e 9omposite
loans up to 1*)55 and inte7rated loan of Rs2 '5 la9s to 7roup of indi8idual for an;
a9ti8it; 9o8ered b; floor mill= sa: mill= 9onsumer ele9tri9al and ele9troni9
applian9es and repairA ser8i9e units= en7ineerin7= furniture ma<in7= sport 7oods=
6osier; 7arments units et92
!. AGRICULTURAL " DEVELOPMENT STABILI#ATION FUND
It 6as been 9reated to meet t6e reDuirements of ban<s s6are for 9on8ersion of s6ort
term a7ri9ultural loans into medium term a7ri9ultural loans in t6e e8ent of dama7e
9aused to 9rops due to natural 9alamities i2e2 6ea8; rains= floods= 6ail storm= drou76t
and atta9< of inse9tsA pests et92 T6e fa9ilit; of 9on8ersion is allo:ed onl; in su96
9ases :6ere t6e dama7e to 9rops is )5C or abo8e2 T6e fund is built up from
different sour9es as indi9ated belo:$
a" From appropriation of profit
b" ; pro8idin7 interest on openin7 balan9e of fund M.C
9" ; 9reatin7 balan9e of di8idend on 7o8t2 s6ares2
d" ; se9urin7 loan from %entral 7o8t2 under plan s96eme for stren7t6enin7
t6is fund2
$. EMPLOYEES WELFARE FUND
Its 6as been 9reated for pro8idin7 finan9ial assistan9e to t6e dependents of t6e
emplo;ees in 9ase of deat6= disabilit; and ot6er e8entualities durin7 t6e ser8i9e2
%. PACS AND CCBS DEVELOPMENT FUND
T6e ob@e9t of t6is fund is to re7ulate 7rant of assistan9e out of t6e fund to t6e PA%S
J %%S for impro8in7 t6eir finan9ial position b; ta<in7 up to t6e de8elopment
a9ti8ities2 PA%S J %%S de8elopment fund is bein7 utiliHed for t6e follo:in7
purposes$/
a2 To 7i8e in9enti8e for 7ood re9o8er; performan9e et92
#$
b2 To 9ontribute to t6e defi9it in t6e re9o8er; of blo9<ed o8er dues of border
distri9t 9entral 9ooperati8e ban<s under pa9<in7 s96eme2
92 To pa; differen9e of interest on a99ount of more A7ri9ultural ad8an9es to
t6e need; %%S a7ainst PA%s a7ainst its members et92
d2 T6e fund ma; be utiliHed for an; ot6er purpose :6i96 ma; be adopted b;
t6e board of dire9tors of t6e ban<2
e2 To bear t6e trainin7 e>penses of t6e Pun@ab Institute of %ooperati8e
Trainin7 to president or ot6er offi9e bearer of t6e PA%S2
f2 T6e oard of #ire9tors of t6e ban< s6all de9ide t6e Duantum of assistan9e2
72 To meet t6e 7ap in s6ort term a7ri9ultural loan outstandin7 of %%s
62 A7ainst PA%s and of PA%S a7ainst its members et92
#eplo;ment of funds$
a" In8estment in 7o8ernment and trustee se9urities2
b" In8estment in 9all deposits :it6 9ommer9ial ban<s2
i2 PRIMARY VI+AS FUN# b; t6e orders of R%S! re7istrar 9ooperati8e
so9ieties" for stren7t6ens t6e imbalan9es of PA%S2
ii2 %OOPERATIVE E#U%ATION J TRAININ, FUN#S2
&. OIL SEEDS PRODUCTION PROGRAMME (OPP)
'. CROP LOAN
(. CONSUMPTION LOANS
). CREDIT SUPPORT TO CCBS FOR FINANCING
PROCUREMENT AND DISTRIBUTION OF FERTILI#ER BY
PACS.
*. OVERDRAFT FACILITY TO THE CENTRAL COOPERATIVE
BANKS.
1+. FINANCING TO COOPERATIVE SUGAR INDUSRY2
a2 #ire9t finan9e L blo9< 9apital2
b2 Indire9t finan9e/ :or<in7 9apital2
11. ADVANCES TO STATE LEVEL HOUSING FEDRATION FOR
PROVIDING LOAN FOR HOUSING SOCITIES.
1!. ADVANCES UNDER NATIONALLEVEL CONSORTIUM.
#1
A2 Food %raft 9onsortium2
2 NAFE#
SOURCES OF FUNDS
1. OWNED FUNDS,
T6e position of o:ned funds durin7 t6e last ) ;ears is as under$/
Table I
!Rs2 In 9rore"
YEAR ORI,INAL
VALUES
A%TUAL
,ROIT& RATE
*550/*55) '50.2)'
*55)/*551 '')523) 52'5.
*551/*553 '*'12.3 525)-
*553/*55- '.532.- 52530
*55-/*554 '05'2). 5253*
##
!.DEPOSITS
#eposits are also t6e main sour9e of funds a8ailable for 9redit to t6e member of
%%S and furt6er to t6e PA%S and T6eir members2 T6e detail of deposits for t6e
last ) ;ears is as under$/
Table II
!Rs2 In 9r2"
YEAR ORI,INAL
VALUES
A%TUAL
,ROIT& RATE
*550/*55) ).1.20-
*55)/*551 )4*425) 52'5)
*551/*553 104*245 5254)
*553/*55- 3.0.204 52'.'
*55-/*554 -11424. 52'-5

#A
$. BORROWINGS FROM NABARD,
T6e Pun@ab state %ooperati8e ban< is borro:in7 from t6e NAAR# for Seasonal
A7ri9ultural Operations and for Farm Se9tor on be6alf of #%%S2 #urin7 t6e last )
;ears t6e follo:in7 amounts 6a8e been borro:ed from NAAR#2
Table III
YEAR ORI,INAL
VALUES
A%TUAL
,ROIT& RATE
*550/*55) '*5'25*
*55)/*551 ')0.2.3 2*-)
*551/*553 *'4.2.3 20*''
*553/*55- *45325) 2.*)
*55-/*554 .45'21' 2.)*


#>

02 INVESTMENT OF FUNDS
T6e detail of in8estment durin7 t6e last ) ;ears is as under$/
Table IV
!RS2 IN %RORES"
YEAR ORI,INAL VALUES A%TUAL
,ROIT&
RATE
*550/*55) *'-.20-
*55)/*551 *0'*21. 52'5)
*551/*553 .5*.2)5 52*).
*553/*55- .5-3205 525*'
*55-/*554 )5-)234 52103
#C
INVESTMENT OF FUNDS
1. STATUTORY RE-UIREMENTS
*)C of t6e Time and demand liabilities are in8ested in t6e s6ape of SLR in ,o8t2
Se9urities b; t6e an< :6ile t6e %entral %ooperati8e an<s 9an <eep t6is :it6 t6e
Pun@ab Liabilities is bein7 <ept as %as6 Reser8e ration under t6e R22I2 A9t in t6e
s6ape of 9urrent a99ount :it6 RI a9t in t6e s6ape of 9urrent a99ount :it6 RI2
Remainin7 is bein7 in8ested in t6e loan portfolios2
!. LOANS " ADVANCES
.. SHORT TERM AGRICULTURAL ADVANCES$ T6e ban< is ad8an9in7
sort term a7ri9ulture loan !9rop loan" to t6e farmer t6rou76 PA%S2 T6ese loans are
ad8an9ed in t6e s6ape of 9as6 and +ind %omponent2 FertiliHers and pesti9ides are
pro8ided to t6e farmers b; PA%S as <ind %omponent2 %omparati8e position of last
) ;ears ad8an9es is as under$/
!Rs2 In 9rores"
YEAR TAR,ET A#VAN%EMENT
!ori7inal 8alue"
A%TUAL
,ROIT&
RATE
*55)/*551 0)00255 0'*-2)1
*551/*553 )453255 0-5'21. 52'5)
*553/*55- 1555255 )-*-2*- 52*).
*55-/*554 1305255 )-402*4 525*'
*554/*5'5 1-55255 **1)245!upto *)/1/54" 52103
#?
NAAR# is not pro8idin7 adeDuate refinan9e to t6e 9ooperati8e ban<s enablin7
t6em to pro8ide timel; J adeDuate 9redit to t6e farmers2
RATE OF INTEREST ON RE/FINANCE BY NABARD,
As per dire9tion of 7o8ernment of India ANAAR#= :e 6a8e fi>ed t6e rate of
interest on s6ort L term a7ri9ulture loans at 325C :2e2f '202*551 but t6e rate of
interest on refinan9e 6as been en6an9ed from *2)C !*551/53" to .25C !*553/5-" and
from .25C to .2)5C for t6e ;ear *55-/542 It as stated t6at durin7 t6e ;ear *551/53
t6e interest mar7in of '23)C :as a8ailable to #%%s2 Iit6 t6e in9rease of rate of
interest on refinan9e from *2)5C to .2)5C t6is mar7in 6as been redu9ed to 523)C
t6e detail of :6i96 is as under$/
YEAR RATE OF
INTEREST
%&AR,E#
Y NANAR#
FROM PS%
RATE OF
INTEREST
%&AR,E#
Y PS%
FROM
#%%s
RATE
INTEREST
%&AR,E#
Y #%%s
FROM PA%S
MAR,IN
AVAILALE
TO #%%S
*551/*553 *2)5 *23) 02)5 '23)
*553/*55- .255 .2*) 02)5 '2*)
*55-/*554 .2)5 .23) 02)5 523)
To enable t6e 9ooperati8e ban<s to pro8ide a7ri9ulture 9redit M3 C to t6e farmers
and to sa8e t6em from in9urrin7 loses on a99ount of lo:er interest mar7in=
NAAR# s6ould pro8ide refinan9e M *2)5C and t6is rate of interest on refinan9e
s6ould remain 9onstant2
#D
... SHORT TERM AGRICULTURAL RECOVERY (DCCBs ):- T6e
re9o8er; is bein7 affe9ted t6rou76 persuasi8e met6ods2 No 9oer9i8e a9tion is bein7
ta<en2 T6e annual re9o8er; at S2T2 A7ri2 Loan for ) ;ears is appended belo:
*550 *55) *551 *553 *55-
4'2**C 4'2-5C 4*2..C 4*2..C -*2'1C N
!Lo: re9o8er;
due to #ebt
:ai8erA #ebt
relief s96eme
*55-"
.... MEDIUM TERM AGRICULTURAL ADVANCES, T6e 9entral
9ooperati8e ban<s are ad8an9in7 medium term a7ri9ultural loans in t6e state for
8arious purpose namel;/ pur96ase and installation of pump sets= diesel en7ines=
ele9tri9 motor :it6 or :it6out pump= pur96ase of a7ri9ultural implements=
ma96iner;= dis< 6arro:s= 6ar8esters=2 Land re9lamation and land impro8ement=
9onstru9tion of bunds= pur96ase of mil96 9attle= poultr; farms= installation of 7obar
7as plants et92 Rate of interest 96ar7ed from PA%S is '523)C and PA%S to member
is '*23)C2 Year :ise disbursement of M2T2 loan is as under$/
Table V
AMOUNT IN %RORES
YEAR AMOUNT A#VAN%E#
!ori7inal 8alue"
A%TUAL
,ROIT&
RATE
*550/*55) '*5231
*55)/*551 '.-23' 52'04
*551/*553 ''32)3 /52')*
*553/*55- *'52.' 523-4
*55-/*554 '412-3 /52510
#%
2
.0. REVOLVING CASH CREDITS, / A uniDue s96eme :as e8ol8ed to brin7
t6e farmers from uninstitutional 9redit to t6e 9ooperati8e 9redit stru9ture2 Under
t6is s96eme= t6e 9ooperati8e ban<s are pro8idin7 Rs2'255 la9s per a9re sub@e9t to t6e
ma>imum of Rs21255 la9s to t6e farmers for fulfillin7 t6eir so9io/ e9onomi9 liabilities
:it6out fallin7 pra; to t6e 9lut96es of pri8ateA non/ institutional mone; lenders2
Rate of interest is ''25C2
T6e %entral %ooperati8e ban<s 6a8e san9tioned 9redit limits under t6e s96eme
as detailed belo:$/

#9
Table VI
!AMOUNT IN %RORES"
YEAR LIMITS
SAN%TIONE#!ori7inal
8alue"
A%TUAL ,ROIT&
RATE
*550/*55) '53'2')
*55)/*551 '*3121' 52'4'
*551/*553 ')*3255 52'41
*553/*55- '4'42)) 52*)3
*55-/*554 *54'23) 525-4
2
82 NON FARM SECTOR LOANS, / anot6er most important feature of t6e
9ooperati8e ban<s in t6e state is t6at t6e; started ad8an9es for anon Farm Se9tor
durin7 t6e ;ear '44.2 T6e rate of interest 96ar7ed under t6ese loans is '.2*)C /
'.23)C2 Year/ :ise ad8an9ement of loans is detailed belo:$/
A$
Table VII
!AMOUNT IN %RORES"
YEAR AMOUNT A#VAN%E#
!ori7inal 8alues"
A%TUAL ,ROIT&
RATE
*550/*55) 112-1
*55)/*551 )424) /52'5..
*551/*553 )120- /525)-
*553/*55- 042)5 /52'*.
*55-/*554 0323* /525.)
O
A1
Vi2 LOANS FOR CONSUMER DURABLES, / Loans for 9onsumer
durables= su96 as for pur96ase of T2V2= Frid7e= A2%2 and ot6er 6ouse6old items et92
are disbursed b; t6e 9ooperati8e ban<s2 Rate of interest is '025C2 Year/ :ise
ad8an9ement is detailed belo:$/
Table VIII
!AMOUNT IN %RORES"
YE
AR
AMOUNT
#ISURSE# !ori7inal
8alues"
A%TUAL ,ROIT&
RATE
*550/
*55)
'502)0
*55)/
*551
'55234 /525.1
*551/
*553
-5235 /52'44
*553/
*55-
3423' /525'*.
*55-/
*554
3'2)5 /52'5*44
A#
V... CASH CREDIT TO BUSINESSMEN AND TRADES, Under t6is
s96eme= a 9as6 9redit limit is san9tioned up to Rs2 *)255 la9s to small businessmen
and traders dependin7 upon t6eir business turno8er on eas; terms2 T6e rate of
interest is '025C2 T6e limits san9tioned to businessman and traders are as detailed
belo:$/
Table I(
AMOUNT IN %R2
YEAR %AS& %RE#IT LIMIT
SAN%TIONE# !ori7inal
8alue"
A%TUAL
,ROIT&
RATE
*550/*55) '4-2*1
*55)/*551 **323- 52'04
*551/*553 *0)23* 52534
*553/*55- *-5205 52'0'
*55-/*554 .51204 524.5
0... TWO WHEELER LOAN TO FARMERS, / T6is s96eme of NAAR#
:as introdu9ed in Februar;= *55*2 T6e farmers are ad8an9ed up to 3)C of t:o
:6eeler 9ost or Rs2 )5=555A/ :6i96e8er is less from t6e %ooperati8e ban<s in t6e
state of Pun@ab2 T6e rate of interest is '*53)C2 Year/ :ise ad8an9ement is as
under$/
AA
Table (
AMOUNT IN %RORES
YEAR AMOUNT A#VAN%E#
! ori7inal 8alues"
A%TUAL
,ROIT&
RATE
*550/*55) 0123.
*55)/*551 03200 525')'
*551/*553 0.2.. 525-3
*553/*55- .421* /52-)1
*55-/*554 .020* /52'.'
8ii2 HOUSING LOAN SCHEME, T6ese loans are pro8ided b; %entral
%ooperati8e an<s for 9onstru9tion of ne: 6ouses= repairA e>tension and reno8ation
of e>istin7 6ouse2 T6e ma>imum limit of t6ese loans is Rs2 *)255 la9s in urban areas
and Rs2')255 in Rural Areas2 T6e rate of interest on urban 6ousin7 loan is ''2)5C2
I6ereas for rural 6ousin7 loan s96eme it is ''25C
A>
A ;ear/:ise detail of ad8an9ement is 7i8en as under$
Table (I
AMOUNT IN %RORES
YEAR AMOUNT A#VAN%E#
!ori7inal 8alues"
A%TUAL
,ROIT&
RATE
*550/*55) 1.233
*55)/*551 10244 525'4'
*551/*553 40210 520)1
*553/*55- '5'2.. 5253'
*55-/*554 45211 /52'5)
V.... VEHICLE LOAN SCHEME, / Under 8e6i9le loan s96eme= loan is
a8ailable for ne: 8e6i9les li<e 9ar= mini bus= lorr;= et92 Loan upto -5C of t6e 8alue
of t6e 8e6i9le or Rs2 '5255 la9s :6i96e8er is less is ad8an9ed under t6is s96eme2 Rate
of interest is '.252'.2)5C2
Year/:ise details disbursement b; distt2 A 9entral 9ooperati8e ban< is 7i8en belo:$/

AC
Table (II
AMOUNT IN %RORES
YEAR AMOUNT #ISURSE#
!ori7inal 8alues"
A%TUAL
,ROIT&
RATE
*550/*55) **215
*55)/*551 *)24' 52'01
*551/*553 .42'1 52)''
*553/*55- 1'2-* 52)34
*55-/*554 -025- 52.15
A?
.1. PERSONAL LOAN SCHEME, T6is s96eme :as introdu9ed in #e9ember=
*55*2 T6is loan is ad8an9ed to salaried emplo;ees up to Rs2 *2552 Rate of interest is
'025C2Year/ :ise ad8an9ement is 7i8en belo:$/
Table (III
AMOUNT IN %RORES
Year AMOUNT #ISURSE#
!ori7inal 8alues"
*550/*55) 112.-
*55)/*551 -0211
*551/*553 '5.2**
*553/*55- '..23-
*55-/*554 '..2-4
>2 PROFIT, #urin7 t6e ;ears *55*/5. to *55)/51= all %ooperati8e an<s ere in
profit2 &o:e8er= durin7 *551/53 t6ree %%s :ere in losses= namel;= Amritsar=
Farid<ot J FeroHpur2 Similarl; durin7 *553/5- also ban<s :ere in loses i2e2
Amritsar= Farid<ot J ,urdaspur2 T6e fi7ures of profit for t6e last ) ;ears are 7i8en
belo:$/
Table (IV
YEAR APE( AN+ %%s TOTAL
*550/*55) *42)- '5021. '.02*'
*55)/*551 *12*0 302-0 '5'25-
*551/*553 *.234 *02)) 0-2.0
*553/*55- '52.0 '-23. *4253
*55-/*554 ''230 .121* 0-2.1
AD
A%
RESEARCH METHODOLOGY,
MEANING, EResear96 9omprises= definin7 and re/definin7= formulatin7
6;pot6esis or su77ested= 9olle9tin7= or7aniHin7= e8aluatin7 data= ma<in7 dedu9tion
and rea96in7 9on9lusion and at last 9arefull; testin7 to 9on9lusions to determine
:6et6er t6e; fit t6e formulatin7 6;pot6esis2G
E%UFFOR# IOO#YG
OB2ECTIVES
To stud; t6e loans and ad8an9es 7i8en b; ban<2
To stud; detail pro9edure of lendin7 re7ardin7 different forms of finan9in7 of
9ooperati8e ban<s2
To <no: t6e satisfa9tion le8el of t6e 9ustomers re7ardin7 t6e non a7ri9ulture
loans
RESEARCH INSTRUMENTS
On t6e basis of t6is stud;= a Duestionnaire :as desi7ned2 T6e basi9 pattern of t6e
Duestionnaire is en9losed in t6e appendi>2
%losed ended Duestions and open ended Duestions 6a8e been used2
Puestions 6a8e been <ept ob@e9ti8e usin7 simple :ords2
DATA SOURCE
T6e data sour9e used b; me 9onsists of bot6 primar; as :ell as se9ondar; data2
PRIMARY DATA$ Primar; data are 9olle9ted on t6e basis of inter8ie:s
9ondu9ted b; me durin7 t6e trainin7 period from e>perts in t6e field of loan
mana7ement staff at T6e Pun@ab State %ooperati8e an<2
SECONDARY DATA$ T6e se9ondar; sour9e of information :as obtained from
t6e annual reports of t6e ban<s= manual of instru9tion on loans brou96ers as :ell2
DATA COLLECTION METHOD
Puestionnaires :ere filled :it6 personal inter8ie:s bein7 ta<en b; me2
A9
SAMPLING
SAMPLING UNIT, T6e population in Duestion :as t6e 9ustomers of t6e ban< as
:ell as t6e ot6er people not 6a8in7 t6eir a99ount in t6is ban<2
SAMPLING SI#E, After t6e t6rou76 s9rutin; of t6e filled Duestionnaire2 I :as
left :it6 t6e sample siHe of )5 responses2 T6e s9rutin; :as based upon t6e 9onditions
of 9ompleteness= adeDua9; and 9orre9tness of information2
SAMPLING PROCEDURE
%on8enien9e samplin7 :as done for t6e Duestionnaire to be filled :it6in t6e ban< as
it :as affe9ted b; t6e time a8ailabilit; of t6e 9ustomers2
TOOLS AND TECHNI-UES
T6e statisti9al tools used are 7rap6= tables= pie 96art2
LIMITATIONS,
'2 T6e stud; is based on t6e data of past t6ree or four ;ears onl;2
*2 T6e data for stud; 9o8ers onl; a sin7le ban<
.2 As ma@orit; of t6e 9ustomers are emplo;ees of t6e ban<= t6e; mi76t
be biased in 7i8in7 t6e information
02 T6e time period of t6e resear96 :as limited to * mont6s2
)2 T6e non emplo;ed 9ustomers of t6e ban< 6esitate in 7i8in7 t6e 9orre9t
information2
>$
>1
INTRODUCTION TO NONAGRICULTURE FIELD OF PSCB,
#urin7 t6e earl; p6ase Pun@ab State %ooperati8e an< deals in a7ri9ulture loan
onl; but to di8ersif; its loanin7 portfolio t6e Pun@ab State %ooperati8e an<
entered in t6e field of Non A7ri9ulture ad8an9es #urin7 t6e ;ear '44*/ 4.2
Initiall; four %entral %ooperati8e an<s namel; ?aland6ar= Na:ans6a6r=
+apurt6ala and Lud6iana :ere permitted b; t6e Re7istrar %ooperati8e So9ieties2
Pun@ab to underta<e finan9in7 of Non A7ri9ultural a9ti8ities up to Rs2 )5=555A/ in a
sin7le 9ase !9omposite loan"2 Later on all t6e %entral %ooperati8e an<s :ere
allo:ed to 9omposite loan!blo9< 9apital and :or<in7 9apital up to Rs2 1*)55A/ and
inte7rated loan to indi8idual artisans= 7roups of an; a9ti8it; 9o8ered b; t6e **
board 7roup of 9otta7e and small s9ale industries notified b; NAAR# in9lusi8e of
t6e pro9essin7 a9ti8ities ba<er; units= flour mills= 96a<<i unit= 9onsumer ele9tri9al=
et92
Under t6e loanin7 portfolios= 8arious Non A7ri9ultural S96emes :ere introdu9ed b;
t6e Pun@ab State %ooperati8e an< and t6ese are as follo:in7$/
'2 re8ol8in7 9as6 9redit to farmers
*2 t:o :6eeler loans to farmers
.2 rural 7odo:n s96eme
02 personal loan s96eme
)2 9as6 9redit to businessmen and traders
12 s6e<ari ban< bima ;o7na
32 se9ond 6and 9ar loan
-2 <isan 9redit 9ard s96eme2
42 small road transport operation s6e<ari edu9ation loan fa9ilit; 9onsumer
durable loan$
a2 to salar; earners
b2 to non salar; earners
'52 non farm se9tor loan
''2 loan a7ainst national sa8in7 9ertifi9ate
Mainl; Pun@ab State %ooperati8e an< finan9es its entire s96eme b; t6eir o:n= but
a fe: s96emes t6e; 6a8e an aut6orit; to ta<e '55C refinan9e from NAAR#2 T6ese
s96emes are$
'2 re8ol8in7 9as6 9redit
*2 non farm se9tor loan
.2 t:o :6eeler loan
>#
TOPIC UNDERTAKEN FOR THIS STUDY
#urin7 t6e trainin7 period= I 9on9entrated onl; on fi8e <inds of loans= :6i96 are
per8aded b; t6e Pun@ab state 9ooperati8e ban<= %6andi7ar62 T6e reason bein7 t6at
t6e bran96 6as pro8isions for onl; t6ese fi8e finds of loans= t6us is pro8idin7 t6ese
non a7ri9ultural loans onl;2 A detailed stud; of t6e pro9edure for appl;in7 to t6ese
loans= do9uments= reDuired and ot6er formalities relate to t6ese loans :ere studied2
T6ese loans are stated as under$
&ouse uildin7 Loan
Personal Loan
%onsumer Loan
T:o I6eeler loan
Edu9ation Loan
To appl; for a loan= t6e 9onsumer 6as to first of all 7i8e an appli9ation to t6e
re7istrar appl;in7 for t6e loan2 T6en is 96e9<ed :6et6er t6e 9ustomer 6as ta<en a
loan before and if ;ea2 I6et6er it is repaid or not2 After t6e eli7ibilit; of t6e
9ustomer is 96e9<ed2 In t6e pro9ess= it is seen t6at :6et6er t6e 9ustomer is able to
repa; t6e mont6l; installments2 It is 96e9<ed :it6 t6e 6elp of t6e salar; slip of t6e
9ustomer= :6i96 is prepared b; t6e A99ount department of t6e offi9e2 After ma<in7
all dedu9tion= it is seen t6at :6et6er t6e amount left is suffi9ient enou76 to pa; t6e
EMIs of t6e loan2 If all t6e formalities are meetin7= t6e file is mo8ed to t6e Re7istrar
for furt6er notifi9ation and san9tionin7 of t6e loan2 After t6e loan is san9tioned= a
person from t6e ban< is sent to 8erif; t6at= :6et6er t6e loan 6as been used for t6e
stated purpose2
T6e details pro9edure of ea96 loan is dis9ussed as follo:s$/
>A
'2 HOUSE BUILDING LOAN
T6e 6ouse buildin7 loan is pro8ided b; t6e ban< under t:o 6eads= one is pro8ided
onl; to t6e staff and t6e ot6er is pro8ided under NFS !non farm se9tor"2 In 9ase of
former one= t6e 9on9ept of mort7a7in7 is bein7 introdu9ed2 In bot6 t6e forms t6e
EMI 9al9ulation and rate of interest differs2 All t6e ot6er formalities reDuired are
same in bot6 t6e 9ases e>9ept t6at in 9ase of loan bein7 pro8ided to staff= t6e
mort7a7in7 a7reement is reDuired2

(3). L435 6740.898 :4 s:3;;
In t6is 9ase t6e ma>imum limit is ') la9s2 T6e rate of interest is fi>ed as per t6e
amount of loan applied2 It is stated belo:$/
Upto Rs2)5=555A/ / 12)C
Upto Rs2 '2) la9s L -C
Upto Rs ) la9s L '5C
Upto rs2 '5 la9s L ''C
T6e repa;ment 9apa9ities i2e2 t6e EMIs are fi>ed based on t6e purpose for :6i96 t6e
loan is ta<en2 T6ese are$
%onstru9tion loan L '-5 installments
Additional Loan/ ')5 installments
Repair/ '55 installments
Pur96ase of t6e plot/ '*5 installments
T6e mort7a7ee in t6e presen9e of t:o :itnesses si7ns t6e mort7a7e deed2 T6e
mort7a7e deed 9ontains t6e terms and 9onditions :6i96 t6e mort7a7ee 6as to fulfill
in 9ase t6e situation arises2
DOCUMENTS RE-UIRED
T6e do9uments= :6i96 are reDuired to be atta96ed :6ile appl;in7 for t6e loan= are
stated as under$
'2 Salar; slips of borro:er and 9redit :ort6iness of 7uarantors2
*2 Re7istrar deedA A7reement to sellA sale deed of 6ouse2
.2 Report b; Establis6ment and Vi7ilan9e se9tion2
02 Estimate of 9onstru9tionAreno8ation 9ost b; ar96ite9t2
C. %ertifi9ate to effe9t t6at t6e 9arr; 6ome salar; of appli9ant is 05C and
salar; slip of last si> mont6s are 96e9<ed2 A installments !in9lusi8e of
interest" 6as been fi>ed ta<in7 into 9onsideration t6e len7t6 of ser8i9e
remainin72
>>
POST SANCTION
T6e 9ustomer 6as to ensure proper e>e9uti8e of t6e follo:in7 do9uments$
'2 A7reement :it6 t6e ban<
*2 Suret; bond
.2 Insuran9e of 6ouse after t6e release of fourt6A last installment2
02 Ot6er le7al do9uments mentioned in san9tion order2
(<) LOAN PROVIDED UNDER NFS(NON FARM SECTOR)
SHORT TITLE= EXTENT AND COMMENCEMENT,
T6is s96eme ma; be 9alled 6ouse loan s96eme to indi8idual and members of 7roup
6ousin7 so9ieties b; t6e Pun@ab State %ooperati8e an< Limited in Union Territor;
of %6andi7ar62
T6e s96eme s6all be implemented b; t6e bran96es of t6e Pun@ab State %ooperati8e
an< Limited and s6all a8ailable for emplo;ees of Pun@ab ,o8ernment and
%6andi7ar6 administration for t6e propert; situated in t6e Union Territor; of
%6andi7ar6 and its perip6er; area as notified2
It s6all 9ome into for9e from t6e date as t6e Re7istrar %oop2 So9ieties2 Pun@ab
%6andi7ar6 de9ides2
DEFINATION
In t6is s96eme unless t6e 9onte>t ot6er:ise reDuires2
A9t means t6e Pun@ab %ooperati8e So9ieties A9t '41' as amended from time
to time2
;e La:s means t6e re7istered b; la: of t6e state2
an< means State %ooperati8e an< re7istered under t6e a9t2
%ommittee means t6e 7o8ernin7 bod; of t6e 9ooperati8e ban< b; :6ate8er
name 9alled to :is6 t6e mana7ement of t6e affairs of t6e ban< is entrusted2
,o8ernment means ,o8ernment of Pun@ab2
Nominal member means a person admitted to members6ip of t6e ban< under
A9t rules and b;ela:s2
Offi9ers means t6e President= Vi9e President= %6airman= Mana7er=
LiDuidator and administrator in9ludes an; ot6er person empo:ered under
t6e rules or b;ela:s to 7i8e dire9tion in re7ard to t6e business of t6e ban<2
Re7istered means a person appointed to perform t6e fun9tion of t6e re7istrar
of 9ooperati8e so9ieties under t6e a9t2
Rules mean t6e Pun@ab %ooperati8e So9ieties Rules '41.2
Salar; means basi9 pa;2
>C
PURPOSE
Loan s6all be ad8an9ed for t6e pur96ase= 9onstru9tion of t6e 6ouse and also for
impro8ement of t6e e>istin7 6ouse b; :a; of repair= additionA alteration et9 Loan
s6all also be 7i8en for a9Duirin7 a flat in an e>istin7 or proposed 9ooperati8e so9iet;
and appro8ed s96eme of %6andi7ar6 &ousin7 board and ot6er 9olonies appro8ed b;
respe9ti8e aut6orities in t6e perip6er; area loan s:appin7 :it6 ot6er loan2
ELIGIBILITY
An indi8idual residin7 in or 6a8in7 a plot in t6e area of operation t6e ban< ma;
appl; for t6e loan in 6is indi8idual name or alon7 :it6 ot6er person :it6 @oint
o:ner of t6e land propert; as 9o/appli9ant= is an; :ill be enrolled as nominal
member of t6e ban< under t6e a9t= Rules= and ;ela:s2
T6e emplo;ees of t6e Pun@ab State %ooperati8e an< :6o 6ad alread; a8ailed t6e
6ouse loan under ,o8t2 or an< S96eme From t6e Pun@ab %ooperati8e ban< also
7et loan under t6e s96eme sub@e9t to ma>imum of Rs2 '5 la9s2 It :ill be furt6er
sub@e9t to t6e repa;in7 9apa9it; of t6e emplo;ees in a99ordan9e :it6 t6eir last
salar; statement2 T6is loan :ill be a7ainst se9ond 96ar7e on t6e said propert; for
e>tension and for ta<eo8er of loan !loan s:appin7" of t6e ban<2
-UANTUM OF LOAN,
T6e Duantum of loan :ill depend upon t6e repa;ment 9apa9it; of t6e appli9ant to
use 9al9ulated b; t6e ban< as under$
'55 times of basi9 pa;/ asi9 pa; of t6e :ife is to be added2
Sub@e9t to ma>imum -)C of t6e 8alue of t6e 6ouseA propert; :it6 t6e ma>imum of
Rs2 '5 la9s dependin7 upon t6e pro@e9t 9ost and repa;in7 9apa9it; of t6e borro:ers
out of t6e abo8e Rs2 ) la9s 9an be allo:ed for pur96ase of plot2
MARGIN MONEY
05C in 9ase of pur96ase of plotA land
')C for 9onstru9tion A repairA pur96ase of 6ouseA flat et92
!A9Duisition 9ost of plot in9ludin7 stamp dut;A re7istration 96ar7es if an; are also
9onsidered to :ards mar7in"
INTEREST
T6e interest on 6ouse buildin7 loan s6all be 96ar7ed M''25C P2A2 on loans up to Rs2
* la9s and ''2)5C on loans abo8e Rs2 * la9s or as pres9ribed b; t6e ban< from time
to time :it6 9ompoundin7 interest Duarterl; or eDui8alent rate as mont6l;
installment2 In 9ase of default a penal rate M 'C P2A2 o8er and abo8e t6e normal
rate on t6e default amount period s6all also be 96ar7ed2
>?
PERIOD OF LOAN PAYMENT OF LOAN
Ma>imum period s6all be fifteen ;ears or attainin7 t6e retirement a7e of '
st
appli9ant2
Repa;ment of loan s6all 6o:e8er be in mont6l; eDual installment to be started from
mont6 after final installment of loan disbursed2 EMI for t6e related mont6 s6all be
deposited b; t6e follo:in7 mont62
SECURITY
Se9urit; for t6e loan is a first mort7a7e of t6e propert; to be finan9ed normall; b;
t6e :a; of deposit of t6e deeds2 T6e 8aluation of t6e propert; :ill be based on last
reser8e pri9e of t6e au9tioned fi>ed b; t6e %6andi7ar6 Administration2 For t6e
properties situated outside t6e %6andi7ar6 in its perip6er; areas :ill be t6e offi9ial
rated of re7istration fi>ed for t6e same b; respe9ti8e muni9ipal or lo9al aut6orit;
immediatel; pro9eedin7 si> mont6s2 T6e 8alue of t6e loan s6all not e>9eed -5C of
t6e 8alue of t6e se9urit;2
Suitable one 7uarantee a99eptable to t6e ban<2 T6e 7uarantor s6all be preferabl;
from t6e same offi9eA department2 T6e; :ill be from t6e ,o8t2 departmentA oardsA
%orporation to t6e satisfa9tion of t6e ban<2 Post dated 96eDues for t6e mont6 for
:6i96 t6e repa;ment of loan is due2
DISBURSAL OF LOAN
T6e loan :ill be disbursed after t6e propert; is te96ni9all; appraised all le7al
do9umentation 9ompleted and borro:er 6a8in7 in8ested o:n 9ontribution in full
!o:n 9ontribution is t6e total 9ost t6e propert; ban< loan"
Loan :ill be disbursed at one 7o for pur96ase of a built 6ouse2 &o:e8er for
9ontribution disbursement s6all be in * installments$
'
st
installment for 9onstru9tion up to roof le8el Q )5C
*
nd
installment for 9onstru9tion of buildin7 after roof le8el2
In 9ase of additionA alteration= rene:al and repairs it :ill be disbursed onl; after
ensurin7 t6e utiliHation of pre8ious installments to t6e ban< s6all not be bound to
a99ept pro7ress of 9onstru9tion as assessed b; builders2
DOCUMENTATION,
Identif; proof= Resident proof= self attested re9ent passport siHe p6oto7rap6 of t6e
appli9ant and 9o/appli9ant !t:o"= 9op; of in9ome ta> return for . ;ears dul;
a9<no:led7ed b; ITO2 Sour9es of finan9e for o:n 9ontribution
Loan appli9ant form
Loan a7reement
Mort7a7e deed
ob en9umbran9e 9ertifi9ate
>D
Letter of lien and set off
INSURANCE
%ompre6ension insuran9e in t6e @oint names of t6e borro:er and t6e ban< s6all be
made of t6e propert; mort7a7ed a7ainst fire= riots= eart6Dua<e= li76tnin7= floods et92
In 9ase of default ban< :ill at libert; to 7et t6e poli9; rene:ed b; debt to 6ouse loan
a99ount of t6e borro:er2 Furt6er a99ident insuran9e 9o8er up to t6e loan amount
:ill be ta<en at t6e 9ost of t6e borro:er2
EMPLOYED APPLICANTS
Latest salar; slipA 9ertifi9ate 7i8in7 details of brea< up of salar; dedu9tion2
Verifi9ation of emplo;ment from t6e emplo;er2
An underta<in7 t6at if loan on due date t6e same :ill be re9o8ered from
retrial benefits2
ADDITIONAL DOCUMENT IN CONSTRUCTION CASES
A7reement of saleAsale deedA detailed 9ost estimate from appro8ed en7ineer2
In 9ase of allotment of flatA 6ouse= p6oto9op; of allotment letter and details of
relian9e pa;ment= if an;2
PERIOD OF LOAN
'5 ;ears in 9ase of pur96ase or 9onstru9tion of t6e 6ouse2
3 ;ears in 9ase of repair= reno8ation= additional or alteration of e>istin7
6ouse2
DISPUTES
If at an; sta7e disputes arise it :ill be settled under t6e Pun@ab %ooperati8e
So9ieties A9t '41'2
>%
ADVANCEMENTS
T6e ban< 6as ad8an9ed 452119r=IN t6e ;ear *55-/*554 and '5'2.. in t6e ;ear *553/
5-2
>9
!.PERSONAL LOAN
Personal loan s96eme 6as been framed :6i96 aims at pro8idin7 9redit fa9ilit; for
meetin7 out So9io E9onomi9s needs of emplo;ees su96 as %6ild Edu9ation=
Furnis6in7 ;our 6ome= bu;in7 a 9omputer= marria7e of sonA #au76ter= 6olida; tour
:it6 ;our famil; or an; ot6er basi9 reDuirement :it6out 7i8in7 an; purpose of loan2
T6is s96eme :as introdu9ed in *55'2
All salaried emplo;ees of Pun@ab ,o8ernment %6ief Auditors %ooperati8e
department= Pun@ab State 9ooperati8e ban<s and %6andi7ar6 Administration its
board= %ooperation e>9ept staff on deputation :it6 %6andi7ar6 administration
boards and 9orporations2
AGE MAIN FEATURE OF THIS SCHEME IS,
ELIGIBILITY CRETERIA CLASS
Minimum *' ;ears and ma>imum )3 ;ears2
SERVICE TENURE
One ;ear after 9onfirmationA re7ulariHation2
RATE OF INTERSET
'0C P2A2 on redu9in7 balan9e :it6 6alf ;earl;A si> mont6 rates sub@e9t to 96an7e
from time * times b; ban<2
LOAN LIMIT
'5 mont6s ,ross Salar; or Rs2 * la9s !:6i96e8er is less"
SECURITY
No 9ollateral se9urit; is reDuired= onl; t:o 7uarantors= emplo;ees of t6e same
institution as of t6e borro:er2
PAYMENT ON LOAN
Loan is repa;able in eDual installment in t6e form of post dated 96eDues2 T6e '
st
installment :ill start after one mont62 T6e loan s6all be repaid before retirement2
C$
OPTION TO REPAY LOAN
Loaner :ill 6a8e t6e option to prepa; t6e loan at one time durin7 t6e tenure of loan
in lump sum2 A prepa;ment fee of 'C :ill be pa;able on t6e outstandin7 loan
amount2 No part/ prepa;ment is allo:ed
GENERAL
No emplo;ee :ill be 7i8en t6is loan fa9ilit; :6o 6as defaulted of loan in an; ot6er
s96eme2
DOCUMENT RE-UIRED
PRESANCTION,
Appli9ation form
Latest p6oto7rap6
an< a99ount statement
Proof of in9ome emplo;er 9ertifi9ate of identit; proof of 9ontinuit; of 9urrent
@ob2
Proof of residen9e of t6e borro:er and 7uarantor2
POSTSANCTION,
#emand promote
A7reement !N ? stamp paper for Rs2 ')A/ onl;"
Si7nature 8erifi9ation
Post dated 96eDues
C1
ADVANCEMENT
Under t6is s96eme Rs2-0211 :ere ad8an9ed durin7 t6e ;ear *55)/*551 and Rs '..23-
9r2 6as been ad8an9ed durin7 t6e ;ear *553/*55- and Rs2 '..2-4 9r2 :ere ad8an9ed
durin7 t6e ;ear *55-/*554
C#
$.CONSUMER LOAN
T6e Pun@ab state 9ooperati8e ban< to ma<e ad8an9es to t6e indi8iduals dire9tl; for
t6e purpose of 9onsumer durables li<e refri7erator= s9ooter= tele8ision radio et9 and
for meetin7 ot6er domesti9 e>penses li<e e>penses on medi9al= edu9ation= marria7e
of sonA dau76terA brot6erA sister or self et92 and also for pro8idin7 o8erdraft fa9ilit;
to t6e sa8in7 a99ount and 9urrent a99ount 6olders2 All t6ese loans :ill be made to
salar; earners2 Ne9essar; rule 7o8ernin7 t6ese ad8an9es and 8arious forms 6a8e
been prepared and are en9losed 6ere:it6 for t6e 7uidan9e and implementation2
For t6e pur96ase of 9onsumer durables= ad8an9es s6ould be 7ranted b; t6e state
and 9entral 9ooperati8e ban< up to follo:in7 ma>imum limit onl;2 T6e Pun@ab State
%ooperati8e an< s6ould ma<e su96 ad8an9es M*C of its total deposits from
indi8idual or Rs '5la9s = :6i96e8er is less in 9ase t6e total deposits are upto Rs2 '59r2
In 9ase its deposits e>9eed Rs '5 9r2 T6en it s6ould ad8an9eK loan for t6is purpose
M.C of its deposits from indi8iduals or Rs2 .5 la9s= :6i96e8er is less2
BENEFICIARY
T6e ban< ma; 7rant loan to t6e indi8idual :6o salar; earners are 6oldin7 a sa8in7
or 9urrent a99ount :it6 t6e ban<2
PURPOSE
T6e loan is 7ranted for t6e pur96ase of 9onsumer durable items li<e refri7erator=
tele8ision= air 9onditioner= 9omputer et92
TENURE OF LOAN
T6e loan s6ould be repa;able in mont6l; installments2 T6e total duration of loan
s6ould not e>9eed fi8e ;ears2
MAXIMUM LIMIT OF LOAN
T6e amount s6ould not e>9eed Rs2 )5555A/ per borro:er or 3)C of t6e 9ost of
arti9les to be pur96ased2
CONDITION FOR APPLYING FOR THE LOAN
T6e follo:in7 9onditions are reDuired to be fulfilled in order to appl; for t6e loan$
T6e borro:er s6ould be enrolled as a nominal member of t6e ban<2
T6e borro:er is reDuired to produ9e t:o :itnesses :6o s6ould also be a
nominal member of t6e ban<= :6ile si7nin7 t6e a7reement2
T6e loan s6ould be ad8an9ed for a9Duirin7 ne: assets onl;2 Pur96ase of
se9ond 6and arti9les s6ould not be finan9ed2
CA
T6e ban< s6ould ta<e t6e ori7inal from t6e dealer2
T6e loan s6ould be a7ainst 6;pot6e9ation of t6e assets reDuiredA to be
a9Duired2
DOCUMENTS RE-UIRED
Promissor; note
A7reement bond
Salar; 9ertifi9ate
An aut6orit; letter from t6e loan and 9orrespondin7 underta<in7 from t6e
emplo;er of t6e borro:er under se9tion .4 of t6e a9t for t6e repa;ment of t6e
loan in 9ase t6e borro:er fails to repa; 6is loan2
Letter of :ai8er
An aut6orit; letter from t6e borro:er to re9o8er t6e installment
Appli9ation form
Suret; bond
&;pot6e9ation a7reement
RATE OF INTEREST
T6e rate of interest 96ar7ed on t6e 9onsumer durable loan is '0C :it6 a penal
interest of 'C in 9ase of an; default2
In 9ase= t6e borro:er or t6e emplo;er fails to dis96ar7e t6e loan as a7reed upon t6e
ban< s6all ta<e t6e le7ation to re9o8er t6e loan ad8an9edA outstandin7 :it6 t6e
interest and 9osts2 T6e borro:er :ill be liable to ma<e 7ood all t6e e>penses and
le7al 96ar7es t6at 6a8e been in9urred b; t6e ban< in t6is re7ard2
C>
ADVANCEMENT
T6e ban< 6as ad8an9ed Rs2 3'2)5 9r2 Till t6e end of mar96 *554 as 9ompared to Rs2
3423' 9r :6i96 :as ad8an9ed b; t6e ban< in t6e ;ear *55-2
CC
%.SHEKARI EDUCATION LOAN FACILITY
BENEFICIARY
An; indi8idual :it6 )5C mar<s in '5R*2
AGE
Minimum '3 ;ears and Ma>imum .) ;ears2
&is a7e of t6e fat6erA ,uardian s6ould not be more t6an 1) ;ears till full
re9o8er; of loan2
PURPOSE
To pro8ide finan9ial assistan9e to student for pursuin7 6i76er studies in India or
abroad i2e2 En7ineerin7= medi9al= dental= La:= Veterinar;= %omputer= A7ri9ulture$
I%IA= %A= %FA= %S= M22A= or an; ot6er 9ourse run b; reor7aniHation uni8ersit;A
institute2
DURATION OF COURSE
Not more t6an ) ;ears2
AMOUNT OF LOAN
For studies in India$ Rs2 ) la9s
For studies in Abroad$ Rs2 '5 la9s
RATE OF INTEREST
T6e rate of interest 96ar7ed on Edu9ation loan is 4C per annum2
PROCESSING FEES
No pro9essin7 fees2
PENALITY FOR PRE PAYMENT
No penalt;
C?
RECOVERY OF LOAN
T6e re9o8er; of prin9iple amount :ill start one after one ;ear of total duration of
9ourse2
OR
After 1 mont6s of 7ettin7 t6e @ob b; t6e appli9ant :6i96e8er is earlier2
SECURITY
%ollateral se9urit;$ EDual to t6e loan amount2
In 9ase parentA 7uardian are salaried emplo;ee of Pun@ab ,o8t2 A Lo9al odies= No
9ollateral se9urit; is reDuired if loan is up to Rs2 ) la9s2 Onl; underta<in7 and
aut6orit; letter from t6e emplo;ee is reDuired2
INSURANCE
Insuran9e poli9; :ill be ta<en on t6e life of t6e student for an amount eDual to t6e
loan amount assi7ned in fa8or of t6e ban<2
DISBURSEMENT OF LOAN
T6e bran96 :ill 7et san9tion of total loan amount from t6e 9ompetent aut6orit;= but
:ill disburse t6e amount based on ;earl; e>penses of t6e 9ourse2
T6ird part; pa;ment in fa8or of 9on9erned uni8ersit; or 9olle7e2
In 9ase pur96ase of eDuipmentA boo<sA 9omputer t6e pa;ment s6all be made
to t6e appli9ant2
DOCUMENT

Salar; slip for t6e si> mont6s
In9ome proof
In9ome ta> returns
A9ademies re9ords
Parti9ulars of s96olars6ip :on= if an;
POST SANCTION
Appli9ation nominal members6ip from studentA parentsA 7uardian and
7uarantor2
#P note
CD
Letter of lien and set off
Letter of :ai8er
Letter of 7uarantee from 7uarantors
Loan a7reement2
Affida8it from parents A 7uardian re7ardin7
a2 Pa;ment of interest
b2 Repa;ment of loan= in 9ase of default b; t6e appli9ant
92 &e :ill not 7o abroad permanentl; :it6out prior permission of t6e
ban<2
d2 &e :ill intimate t6e ban< re7ardin7 an; 96an7e in t6e status= if an;2
e2 Mort7a7e of 9ollateral se9urit; dul; re7istered J mutation in fa8or of
t6e ban<= if reDuired2
PRECAUTION FOR DISBURSEMENT
T6ird part; pa;ment e>9ept for pur96ase of eDuipmentA boo<s
Pa;ment of loan amount for t6e *
nd
;ear is made after obtainin7 t6e
do9uments relatin7 to passin7 t6e first ;ear J so on2
C%
&.VEHICAL LOAN
BENEFICIARY
An; indi8idual= 7roup of indi8iduals or a partners6ip firm2
PURPOSE
To pro8ide finan9ial assistan9e to pur96ase ne: 8e6i9le for t6e business and
personal use2
AMOUNT OF LOAN
'5 la9s
OR
-5C of t6e 8alue of t6e 8e6i9le :6i96e8er is less2
MARGIN MONEY
-)C !minimum"
RATE OF INTEREST
Up to Rs2 . la9s '.C
Abo8e Rs2 . la9s L '.2)5C
Interest rates are sub@e9t to 96an7e from time to time2
PENAL INTEREST
Penal interest is 96an7ed in 9ase of an; dela; or an; ot6er faults in t6e repa;ment
t6e loan installment2
T6e penal interest 96ar7ed M.C o8er and abo8e t6e normal interest rate on t6e
amount of default for t6e default period2
PERIOD OF LOAN
T6e time period of 8e6i9le loan 9annot e>9eed ) ;ears2
REPAYMENT
T6e loan is repaid b; mont6l; installation
C9
INSURANCE
%ompre6ensi8e insuran9e @ointl; :it6 name of ban< and t6e borro:er2
SECURITY
PRIMARY,
&;pot6e9ation of t6e 8e6i9le in t6e fa8or of t6e ban< and s6ould bs re7istrates :it6
t6e R2T2O
%ollateral$ t6e 9ollateral se9urit; is 7i8en at t6e dis9retion of t6e ban<2
DOCUMENTS
PRESANCTION$/
'2 Appli9ation for t6e loan
*2 Residen9e proof of borro:er and 7uarantors2
.2 %op; of t6e #ri8in7 li9ense
02 Proof of in9ome2
In 9ase of salaried emplo;ee
a2 Form '1
b2 Latest salar; statement :it6 dedu9tion2
92 In9ome ta> return for t6e last t6ree ;ears= if in9ome ta> pa;ee2
In 9ase of business$
a2 %op; of balan9e s6eet and profit and loss a99ount for t6e . ;ears2
b2 Proof of business
92 ITRFs for t6e last t6ree ;ears2
)2 Puotation of t6e 8e6i9le
12 Identit; proof
32 In 9ase of firm$
a2 %op; of t6e partners6ip deed2
b2 Aut6oriHation letter2
92 Proof of offi9e in 9ase of firms2
-2 In 9ase of 9ompanies$
a2 Memorandum and arti9le of asso9iation2
b2 %op; of resolution2
42 #o9ument relatin7 to 9ollateral se9urit; if appli9able2
POST SANCTION,
?$
'2 Appli9ation for t6e nominal members6ip of t6e borro:er= 7uarantor and
Mort7a7or2
*2 #2P2 note
.2 Letter of lien and set off2
02 Letter of :ai8er
)2 &;pot6e9ation deed2
12 Loan a7reement2
32 Mort7a7e #eed dul; re7istered and mutation in t6e fa8or of t6e ban<= if
appli9able2
-2 #ul; si7ned post dated 96eDues for t6e installments2
Pre9aution for t6e disbursement
T6e follo:in7 do9uments to be obtained after disbursement2
a2 Insuran9e 9o8er
b2 %op; of Re7istration %ertifi9ate2
92 Ori7inal in8oi9e2
d2 One set of dupli9ate <e;s2
ADVANCEMENTS
T6e ban< 6as ad8an9ed Rs2 -025- 9r2 To t6e 9ustomer in t6e ;ear *55-/ 54 = :6ile t6e
amount :as Rs 1'2-* 9rore in t6e ;ear *553/5-2
?1
?#
1.W>3: ?.58 4; @435 >309 A4B :3?95 ;74C 47D35.E3:.45?
Table (V
+ind of Loan No2 of Respondent Per9enta7e!C"
&ouse loan '1 .*C
Personal loan ') .5C
%onsumer loan 1 '*C
Edu9ational loan - '1C
Ve6i9le loan . 1C
Ot6er * 0C
INTERPRETATION,
Table rea8eals t6at '1 respondents 6a8e ta<en 6ouse loans= ') 6a8e
ta<en personal loans and less people prefer 9onsumer= edu9ational and 8e96ile
loans2
?A
!. W>3: .s :>9 3C4B5: 4; @435 :3?95?
Table (VI
Loan Amount No2 of Respondent Per9enta7e !C"
Less t6an *5=555 0 -C
*5=555/)5=555 '5 *5C
)5=555/ ' la9 1 '*C
More t6an ' la9 .5 15C
INTERPERTATION,
Table re8eals t6at - C people prefer loan less t6an *5=555= *5 C respondents
prefer *5=555 to )5=555='* C prefer more t6an ' la9 and 15C of t6e respondents
prefer more t6an ' la92
?>
$.W>3: .s :>9 :97C 4; @435 ?
Table (VII
Term of Loan No2 of respondent Per9enta7e!C"
Less t6an ' ;ear 1 '*C
' to . ;ears '5 *5C
More t6an . ;ears .* 10C
INTERPRETATION,
Table s6o:s t6at 10 C respondents ta<e loan for more t6an . ;ears= *5 C ta<e loan
for for ' to . ;ears and '*C ta<e loan for t6e period of less t6an ' ;ear
?C
%.W>3: .s :>9 73:9 4; .5:979s: A4B 63A.5D?
Table (VIII
Rate of interest paid b;
t6e 9ustomers
No2 of Respondent Per9enta7e !C"
Less t6an 4C * 0C
4C to '*C *0 0-C
More t6an '* C *0 0-C
INTERPRETATION,
Table s6o:s t6at 0-C of t6e respondents are pa;in7 rate of interest 4 to '* C and
more t6an '* C and 0 C of t6e respondents pa; less t6an 4 C of rate of interest2
??
&. H4F C35A :.C9 >309 A4B :3?95 @435 <9;479?
Table (I(
No2 of times loan ta<en
No2 of respondent Per9enta7e !C"
Onl; on9e *4 )-C
' to . times '1 .*C
More t6an . times ) '5C
INTERPRETATION,
Table re8eals t6at )- C of t6e respondents too< loan on9e = .* C of t6e respondents
too< loan for ' to . times and '5 C too< loan for more t6an . times2
?D
'. W>3: 674C6:98 A4B >309 :4 :3?9 @435 ;74C :>9
.5s:.:B:9?
Table ((
Reason for ta<in7 loan No2 of Respondent Per9enta7e !C"
Reasonable rate of interest 1 '*C
More s96emes ) '5C
Less formalities '3 .0C
Eas; repa;ment '4 .-C
An; ot6er . 1C
INTERPRETATION,
Table re8eals t6at .- C ta<e loan be9ause ban<s pro8ide eas; pa;ment=.0C ta<e
loans be9ause of less formalities and ot6er respondents ta<e loan be9ause of
reasonable rate of interest= more s96emes 2

?%
(.W>3: .s :>9 30973D9 :.C9 :3?95 ;47 :>9 674G9ss.5D 4; :>9
@435?
Table ((I
A8era7e time for
pro9essin7 of loan
No2 of respondent Per9enta7e !C"
Less t6an 3 da;s .0 1-C
et:een 3 to '0 da;s '. *1C
More t6an '0 da;s . 1C
INTERPRETATION,
Table re8eals t6at 1-C respondents sa;s t6at a8era7e time ta<en for pro9essin7 of
t6e loan is less t6an 3 da;s= *1C sa;s t6at it ta<es 3 L '0 da;s and 1 C sa;s t6at it
ta<es more t6an '0 da;s2
?9
). A79 A4B s3:.s;.98 F.:> :>9 3C4B5: " 697.48 4; .5s:3@@C95:?
Table ((II
No2 Of respondent Per9enta7e !C"
Yes .0 1-C
No 1 '*C
%anFt sa; '5 *5C
INTERPRETATION,
Table re8eals t6at 1-C are satisfied :it6 t6e amount and period of installement ='*
C are not satisfied and *5 C 9anFt sa;2
D$
*. T4 F>3: 91:95: 379 A4B s3:.s;.98 F.:> :>9 ;4@@4F.5D
;3G:47s?
D1
1+.H4F F4B@8 A4B 735? :>9 ;3G.@.:A 6740.898 <A :>9 <35??
Table ((III
Ran< t6e fa9ilit; No2 of respondent Per9enta7e !C"
Abo8e a8era7e '1 .*C
A8era7e .5 15C
elo: a8era7e 0 -C

INTERPRETATION,
Table s6o:s t6at 15C of t6e respondent sa;s t6at fa9ilit; pro8ided b; t6e ban< are
a8era7e= .*C sa; t6at its abo8e a8era7e and -C sa;s t6at its belo: a8era7e2
D#
11.H4F F4B@8 A4B 735? :>9 GBs:4C97 s970.G9 4; :>9 <35??
Table ((IV
Ran< t6e 9ustomer
ser8i9es
No2 of responedent Per9enta7e!C"
E>9ellent '* *0C
,ood *1 )*C
A8era7e '* *0C
Poor ' *C
INTERPRETATION,
Table s6o:s t6at )*C of t6e respondents sa;s t6at 9ustomer ser8i9e of t6e ban< is
7ood=*0C sa;s t6at it is e>9ellent and anot6er *0 C sa;s its a8era7e and onl; * C
sa;s its poor2
DA
1!. I; A4B 379 .5 5998 4; @435 .5 ;B:B79 ;74C F>.G> .5 <35?s
F4B@8 A4B 679;97 :4 :3?9 @435?
Table ((V
Preferable ban<s in future No2 of respondent Per9enta7e !C"
Publi9 ban<s 3 '0C
Pri8ate ban<s ') .5C
%ooperati8e ban< *- )1C
INTERPRETATION,
Table s6o:s t6at )1 C of t6e respondents :il prefer loans from 9o/operati8e ban<s=
.5 C from t6e pri8ate ban<s and '0 C from t6e publi9 ban<s
D>
1$.D4 A4B :>.5? :>9 <35? .s 3<@9 :4 793G> B6:4 A4B7
s3:.s;3G:.45 @909@?
Table ((VI
No2of respondent Per9enta7e !C"
Yes .3 30C
No '. *1C
INTERPRETATION,
T6e ban< is able to rea96 upto t6e satisfa9tion le8el of 30C of its emplo;ess :6ile
t6e remainin7 *1C are not satisfied b; t6e ser8i9es pro8ided b; t6e ban<2 &en9e=
t6e ban< s6ould :or< upon to in9rease t6e 9ustomer satisfa9tion le8el2
DC
1%.W4B@8 A4B @.?9 :4 79;97 :>9 <35? :4 A4B7 ;7.958s 358
79@3:.09s?
Table ((VII
an< refer to ot6ers No2 of respondent Per9enta7e !C"
Al:a;s .4 3-C
Sometimes 4 '-C
Ne8er * 0C
D?

DD
FINDING,
'2 Ma@orit; of t6e respondent :ere 6a8in7 6ousin7 loan from t6is ban<2
*2 Most of t6e people prefer to ta<e lon7 term loan :6i96 is more t6an . ;ears2
.2 Eas; repa;ment and less formalities are t6e main fa9tors determinin7
9ustomerFs sele9tion of loans2
02 Pualit; of ser8i9es pro8ided b; t6e staff is satisfa9tor; be9ause t6e number of
9ustomers 8isitin7 in t6is bran96 are 8er; less so t6at t6e 9ustomers are
properl; dealt :it62
)2 %ustomers are satisfied :it6 t6e mode of repa;ment of installments2
12 A8era7e time for t6e pro9essin7 of loan is less t6an t6e ot6er ban<s i2e
bet:een 3 da;s 2
D%
D9
SUGGESTIONS,
'2 T6e ban< s6ould adopt t6e modern met6ods of ban<in7 li<e internet
ban<in7= 9redit 9ards= ATM= et9
*2 T6e ban< s6ould plan to introdu9e ne: s96emes for attra9tin7 ne: 9ustomers
and satisf;in7 t6e present ones2
.2 T6e ban< s6ould impro8e t6e 9ustomer ser8i9es of t6e ban< to a better e>tent
%$
%1
%#
BIBLIOGRAPHY,
'2 ; la:s of PS% ban< ltd2
*2 Annual reports of t6e PS% ltd2
.2 roa96ers and pamp6lets of PS% ltd2
02 Ser8i9e manual of PS% ltd2
BOOKS,
'2 Resear96 Met6odolo7; b; %2R2 +ot6ari2
%A
%>
-UESTIONNAIRE
NAME,
AGE,
SEX,
OCCUPATION,
INCOME,
'2I6at <ind of loan 6a8e ;ou ta<en from t6e or7aniHationS
&ousin7 Loan
Personal Loan
%onsumer Loan
Edu9ation Loan
Ve6i9le loan
Ot6ers
*2I6at is t6e amount of loan ta<enS
Less t6an *5=555
*5=555/ )5=555
)5=555/' la9
More t6an ' la9
.2I6at is t6e term of loanS
Less t6an ' ;ear
' ;ear to . ;ear
More t6an . ;ear
02:6at is t6e <ind of loanS
Se9ured loan
Unse9ured loan
If se9ured loan 6a8e been ta<en t6an mention t6e se9urit; t6at been pled7ed2
)2I6at is t6e rate of interest ;ou 6a8e pa;in7S
Less t6an 4C
4C to '*C
Abo8e '*C
%C
12&o: man; time ;ou to ta<en from t6e instituteS
Onl; on9e
' to . times
More t6an . ;ears
32I6at prompted ;ou to ta<e t6e loan from t6e instituteS
Reasonable rate of interest
More s96emes
Less formalities
Eas; repa;ment
An; ot6er
-2:6at is t6e a8era7e time ta<en for t6e pro9essin7 of t6e loanS
Less t6an 3 da;s
et:een 3/'0 da;s
Abo8e '0 da;s
42Are ;ou satisfied :it6 t6e amount J period of installmentS
Yes
No
%ant sa;
'52To :6at e>tent are ;ou satisfied :it6 t6e follo:in7 fa9torsS
&i76l;
Satisfied
Satisfied %ant sa; #issatisfied &i76l;
#issatisfied
Eas; A99ess
Less paper
:or<
Lo: interest
rate
Supporti8e
staff
Fast ser8i9e
Proper
feedba9<
s;stem
Eas;
repa;ment
fa9ilit;
%on8enient
mode of
%?
pa;ment of
installment
%D
''2&o: :ould ;ou ran< t6e fa9ilities pro8ided b; t6e ban<S
Abo8e a8era7e
A8era7e
elo: a8era7e
'*2&o: :ould ;ou li<e to ran< t6e 9ustomer ser8i9e of t6e ban<S
E>9ellent
,ood
A8era7e
Poor
'.2 If ;ou are in need of loan in future from :6i96 institute :ould ;ou prefer to
ta<en loanS
Pri8ate ban<s
Publi9 ban<s
%ooperati8e ban<
'02 #o u t6in< t6e ban< is able to rea96 upto ;our satisfa9tion le8el is pro8idin7
loans and its related ser8i9esS
Yes
No
')2 Iould ;ou li<e to refer t6e ban< to ;our friends and relati8eS
Al:a;s
Sometimes
Ne8er
'12 I6at impro8ement do ;ou su77estS
=or Deta)l@Informat)on. Mal9)t S)ng" 991>A&>9>9%
%%