Professional Documents
Culture Documents
MCDB
MCDB
1 INTRODUCTION
Co-operation means working together. Co operative efforts is
ultimately the group instinct in means which enable him to together and help
each other in times of stress and strain. England is considered to be the birth
place of co-operative movement in the world. The industrial revolution and its
result have a direct bearing on the origin of the co-operative movement in
Britain.
The term co-operative as generally understand today is a term which like
philosophy and religion details exact definition and description. Almost every
writer has tried to define this term in this own way. No two definition are
identified and no single definition has a far succeeded to include all the
ingredients of co-operative ideology Co-operative movement in Kerala is very
strong and stable, it first in the field of deposits among the states.
CO-OPERATIVE BANKS
Co-operative banks are institutions established on the principle of co-
operation and it deals in ordinary banking business. It is formed to extend credit
facilities to farmers and small scale industries if helps to promote habit of thrift
and self help among the low and middle income group of the society it collects
funds through shares, accept deposited and grand loans. The main feature of the
co-operative bank is that it has profit motive. A co-operative bank is one. Which
perform the banking functions such as (a) borrowing (b) lending (c) agency
services and (d) general utility service on a co-operative basis. It refers to a
mutual society formed by working people themselves for encouraging regular
serving and granting small loans on easy terms. The district Co-operative banks
are also known as central Co-operative banks the central banks are the
federation of Co-operative primary societies in special area. Usually in a
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specified area. The central Co-operative banks is the important link between the
apex Co-operative banks and the primary agricultural credit societies
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1.5 HYPOTHESIS
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1.6.6 TOOLS FOR DATA PRESENTATION
Chart
Graph
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2.1 REVIEW OF LITERATURE
Cronin and Taylor (2004) Noted that a customer's perception of service quality
can be best measured by his/her "perceived" attitude about the service being
rendered. Cronin and Taylor (2004) reported that t heir unweight performance
based SERVPERF scale was a better method of measuring service quality
than SERVQUAL. They contended that the SERV PERF scale consist entry
outperformed the SERVQUAL scale in terms of reliability and validity.
Rutamu and Gansan (2008), in their research article titled, 'Profits and
Profitability of cooperative banks: The case of Banques Popularies (Peoples'
Bank) of Rawanda stated that financial institution in general and banking sector
in particular play a strategic role in the financing stage of capital formation. In
the banking sector, cooperative banking undertakes the responsibility of
mobilizing the scare savings of the community and channelizing these savings
for productive investment in the economy.
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2010.But as has been demonstrated ,most co-operative bank groups had
fortunately been able to weather the financial crisis relatively well so far
without any state support. The co-operative banks that did report losses due to
the subprime crisis were affected primarily at the level of subsidiaries and at the
level of APEX institutions.
Singh and Singh (2010) In their study titled, 'Technical and scale efficiency in
District central co-operative banks of Punjab A Non parametric Analysis' had
attempted to investigate the extent of technical efficiency across 20 DCCBs of
Panjab with the help of Data Envelopment Analysis
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increasing reliability, responsiveness and assurance. For that they can give
training to their employee which will help them to give personalized service.
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2.2 FUNCTIONS OF THE BANK
B. Other functions
1. Collecting Bill
2. Discounting bills
3. Providing remittance facilities
4. Draft facilities
1. ACCEPTING DEPOSITS
The major functions of Manjeri co-operative urban Bank is accept deposits from
the members and non members and other units. The relationship between
banker and customer beginning with the opening of an accountant in the name
of customer. To attract savings from the public, the bank maintain different
types of deposits such as
1 Fixed Deposits
2. Current Deposits
3. Recurring Deposits
4. Saving Bank Deposits
5. Daily Deposits
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Fixed Deposits
Under this deposits, a fixed amount is deposited for fixed period at a fixed rate
of interests at a fixed rate of interest legally the bank is not liable to repay the
fixed deposit before the due date. It is also known as time deposit or term
deposit. This deposits cannot be withdrawn before the expiry of that period. The
interest is payable monthly or quarterly a annually accounting to the instruction
given the depositor. The rate interest is payable monthly or quarterly a annually
according to the instruction given by the depositor. The rate interest is
comparatively high, because this deposit is the main source of fund of the bank
of lending long terms loans. When of funds of the bank for lending long
terms loans. When opening a fixed deposit account the bank issue fixed details
of deposited money due date, rate of interest etc. to the customer. The minimum
amount that should be deposited in the fixed Deposit account is Rs 50/- . there is
no limit on the maximum amount period of deposit can be even more than 5
years.
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Current Deposit
This type of deposit is suitable for business man. In otherwise current
deposit are generally opened by trading and industrial concerns, public
authorities etc. having banking transactions involving huge amounts proper and
satisfactory introduction is necessary must be introduced to the bank by some
respectable person known to the bank in current accounts are active and
continuously in operation. In current accounts customers can deposit any
amount of money and in any numbers of times they can withdraw from the
current account any amount as and when required, provided that adequate funds
is available on the account. The bank may in some special cases issue overdraft
against these accounts. Their deposit are re-payable on that is why called
demand liabilities.
Recurring deposit
Recurring deposits are introduced to encourage the public to save a fixed
sum regularly. When a fixed amount is deposited at a regular interval for a fixed
period of time is known as recurring deposit. The amount is paid in total after
the fixed period with interest. It is also known as cumulative deposits. The
minimum deposit should be Rs 5 or multiples of Rs 5%. The should from 1 year
to 10 years. The interest rate is some as that of fixed deposits.
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Daily deposit
This special scheme which is useful to fulfill the needs of small business
and individuals. For daily deposit bill collections agent of the bank will
approach the customers and collect the amount from and deposit to the bank.
The bank provides 2 1/2 commission of the amount collected to agents as
remuneration.
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LOANS AND ADVANCES
CLASSIFICATION OF LOANS
On the basis of period for which loans are granted loans are classified in
to three. The period of loans may vary according to the purpose. Thus the are
three types of loans.
a. Short term loans
b. Medium term loans
c. Long term loans
a. Short term loans
This loan is granted normally granted for a period up to one year. It is also
called production loans, gold loan, NAST, etc are the various short term loans
granted by the bank.
b. Medium term loans
The medium term loans granted normally for a period of 1 to 5 year. This loan
may be taken for industrial of business purpose. The loan is also called
development loan.
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c. Long term loans
This loan is granted for a period exceeding 5 years, now days K.S.C.B is
granting long term loans.
On the basis of nature important loans granted are
i. Gold loan
ii. Non Agricultural Short Term Loans (NASTL)
iii. Agriculture deposit loans
i. Gold loan
The gold loan the most profitable one because it gives comparatively
higher rate of interest to the bank. Backward are it us a popular loans
scheme among the people gold loans given by the co-operative up to the
maximum amount of Rs 30000. The duration period is one year.
ii. Agricultural loans
This loan is granted for agriculture purpose the amount of the agriculture
loan granted will be based on area of the land that has been pledged. The
NABARD OR DISTRICT Co-operative bank will issue a scale if finance
is respect of this loan up to 100000/- can he availed on the personal
security and to 100000 can be availed on the mortgage of property the
normal interest rate is 11% short term as well as the bank grants medium
term agricultural loans.
iii. Non Agriculture loan
These are loans which are not used for agriculture purpose non
agricultural loans are those for building industries, contracts or
construction works. The objective of the loan is to avail appropriate
finance for trade, business and other non agricultural purpose of the
members. This loan is grated on the personal surely of 2 members. The
form contains the details borrower. Purpose etc loan cal also avail on the
security of property
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iv. Fixed deposit loans
The depositor on the security of fixed deposit receipt can obtain this loan 80%
of fixed is 2% above the interest on deposit. The period of loan depend on the
term of fixed deposit.
b. Non Agriculture Loans
These are loans which are not used for agricultural purpose. Non agriculture
loans are those for building industries, contract or construction works, the
objective of the loan is to avail appropriate finance for trade, business and other
non agriculture purpose of the members this loan is granted on the person of
surely 2 members. The from contain the details borrower purpose etc. loan can
also avail on the security of property
LOANS OVERDUE
Loans overdue means a part of the understanding loan was not realized
by the bank with in striptease time limit the loans are usually provided by the
bank out of the deposit relieved by them. If the loan amount is not repaid in
time it will affect the smooth function in of the bank. This is most important
problem affecting the successful working of the bank.
Usually the interest and principle are collected from the borrower. When
to installment of the loan and increase, the bank will send remainder notice to
the person's concerned band is still there is no response; the bank will initiate
revenues recovery procedure. When a loan falls overdue the rate of interest is
increased 2% on the amount, which fall due.
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PROCEDURE FOR GRANTING LOAN
The members who which to get loans from the bank should apply for the
loan in the prescribed from. The following are the procedure to get alone.
1. Receiving application
Application for the loan should be submitted to the secretary in
prescribed from along with the following documents
a. Original document of land
b. Primary documents
c. Possession certificate
d. Tax Receipt
2. Legal verification
Bank sent the application and document to the legal administration of
bank for legal verification. After verification the administration send a report to
the secretary about legal validity of the document given as collateral security.
3. Site inspection
After verification of the application and documents they are handed over
to the concerned director for site inspection and report. The direction who visits
the land property will conduct. A local enquiry with reference to the documents
submitted by the applicant.
4. Submitting application to the director Board
Director board is the authority to sanction the loan if the director board
approved the application. It prepares a statement called director report signed
by the concerned director. After the receipt of report, the bank sanctioned the
loan.
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Table 3.1: Age level classification of respondents
No of
SL NO Age Percentage
Respondent
1 Below 20 year 3 5
2 20-30 years 19 32
3 30- 40 years 23 38
4 Above 40 years 15 25
Total 60 100
40
35
30
25
20
15
10
0
Below 20 Year 20-30 years 30-40 years Above 40 years
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Table 3.2: Sex wise classification of respondents
INTERPRETATION
As whole of the total respondents, males are (63%) and (37%) are
Female.
INTERPRETATION
From the above study it is found that about 28 % of respondents are
businessmen', 15% of them are student, and 10% of them are professional
employees and 47 % of them have other occupations.
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Table 3.4: Educational wise classification of respondents
INTERPRETATION
The above table shows that the respondents, 23% are below the SSLC,
30% of are SSLC qualified, 23% of are PDC/+2 qualified, 14% are Graduates,
10% are Post Graduates and remaining 16.6% have other qualifications.
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18
16
14
12
10
0
Below SSLC SSLC PDC /+12 Graduate Post Graduate
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Table 3.5: Income wise classification of respondents
INTERPRETATION
From the above analysis it is found that the 17% respondents receive
income below 10000, and 35% respondents receive income between
1000020000, 33% respondents receive income between 20000-30000 and 15%
respondents receive income above 30000.
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15
10
0
Below 10000 10000-20000 20000-30000 Above 30000
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Table 9.6: Usage of Bank's various services
20
18
16
14
12
10
0
Passbook Cheque ATM Facility Overdraft Loan Others
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Table 3.7: Reason for choosing the particular bank
No of
SL.No particular Percentage
respondent
1 Recommendation from friends and relatives 12 20
2 Image of the bank 12 20
3 Availability of zero balance a/c facility 9 15
4 Location advantages 16 27
5 Excellent service offered by the bank 6 10
6 High speed of operation 3 5
7 Better interest rate 2 3
Total 60 100
INTERPRETATION
From the above analysis it is found that the 20% of respondents are chose
the bank by the recommendation for friends and relatives. Other 20% of
respondents considered the image of the bank, 15% of them considered the
availability of the zero balance a/c facility. 27% of the respondents considered
the location advantages. Other 10% of them on the basis of excellent service
offered by the bank, 5% of respondents are consider the high speed operation
and other 3% are choose by considering the better interest rate.
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Chart 5: Reason for choosing the particular bank
Sales
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4.4 FINDINGS OF THE STUDY
Majority of customers of the bank are in between the age of 30 and 40.
Majority of respondents of respondents dealing with bank for deposit and then
for lending.
MCUB introduced the first Evening Branch and the first Ladies Branch in
Malappuram District.
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First National Award winner among Urban Bank in Kerala. {Frontiers in Co-
op. Banking Award 2006-07)
Majority of respondents are highly satisfied with Interest Policy of the Bank.
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4. 2 SUGGESTION
Bank should interact with customers more friendly. That they feel comfort
while attaining the services of the bank and motivate the customers to interact
with the bank more freely.
The bank should compare its performance with other banks; the bank can
adopt successive banks strategies.
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Accounts for women and children with special features should be provided.
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CONCLUSION
The study which has been conducted in-Mank.6- co-operative urban bank
on customer's perception towards deposits and lending policies helped the
researcher to identify major factor which affect the customer perception. The
study helped to get a lot of experience and knowledge about the perception of
employees towards their various activities related to deposit lending policies of
the bank.
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