Professional Documents
Culture Documents
Cooperative Bank Internship Project
Cooperative Bank Internship Project
Cooperative Bank Internship Project
INTRODUCTION
1.1 ABOUT BANKING INDUSTRY
The word bank originated the French word ‘benque’ or Italian ‘banco’ which means an office for
monitory transaction over the counter. In those days or desks were used as centers for monitory
transactions. During the barter system also, there existed traces of banking, i.e. people used to
deposit cattle and agricultural products in specified places get loans get loans of some other form
in exchange for these. There is solid evidence found in records excavated form Mesopotamia,
showing some bank existed around a standard for valuation.
ORIGIN OF BANKING INDUSTRY
Greece was the first country to introduce a satisfactory system of coinage. After the invention of
Coins started, a meaningful system of banking came into existence taking into account all the
avenue of banking a credit system.
Rome was the first country to start a bank at the department of state level in the 4 th century B.C.
with transactions such as depositing and investments in other forms. In India ancient records show
that banking was popular and money lending was a common practice among the common people.
In the olden days’ Goldsmith, merchants and money lenders conducted the business. They had
transactions among themselves by which funds were transferred from one business firm to
another. They had no general or uniform principles of banking, lending, rate of interest, etc.
Co-operative sector has a long history of more than a century. In the co-operative movement,
agriculture credit sector has acquired a special importance in order to avoid the exploitation o
poor farmers from the middlemen and money lenders and to provide suitable assistance to the
eligible farmers. As our nation is basically an agriculture country, agriculture credit systems plays
an important role in the development of this sector. Through this system, the credit sector is
extending helping hand to farmers in its own way to boost the agricultural production in the state
in particular and in the country at large.
KSC Apex bank over the ninety five years, since its inception has always come forward to extend
its assuring hand to the farmers of the state through district central co-operative banks, primary
agricultural co-operative credit system besides the bank is providing the needed financial
assistance, for development of human resources, training, computerization and all other
encouragement from time to time to the DCC banks and PACS. The Government of Karnataka
has accepted Prof. Vaidyanathan’s committee recommendations for revival of cooperative credit
institutions and apex bank is committed to its successful implementation in the state.
CO-OPERATIVE BANKS:
The co-operative banks in India started functioning almost 100 years ago. The Co-operative bank
is an important constituent of the Indian Financial System, judging by the role assigned to co-
operative bank operate. Though the co-operative movement originated in the west, but the
importance of such banks have assumed in India rarely paralleled anywhere else in the world. The
co-operative bank I the urban areas also have increased phenomenally in recent years due to the
sharp increase in the number of primary co-operative.
While the co-operative banks in rural areas mainly finance agricultural based activities including
farming, cattle, milk, hatchery, personal finance etc. along with some small scale industries and
self-employment driven activities, the co-operative banks in urban areas mainly finance various
categories of people for self-employment industries, small scale units, home finance, consumer
finance, personal finance, etc.
Co-operative Banks in India are regulated under the Co-operative Societies Act. The co-operative
bank is also regulated by RBI. They are governed by the Banking Regulations Act 1949 and
Banking Laws (Co-operative Societies) Act, 1965.
Primary Source
Information from the executives of various departments of Karnataka State Co-operative
Bank.
Secondary Source
Information from the text books, journals, web sources and annual report of Karnataka State
Co-operative Apex Bank.
Chapter:2 This chapter deals with the profile of the study area (industry) here it appears the
meaning and definition of the Banking industry, leading players, future prospects of the industry,
role of co-operative bank in India and problems of this industries.
Chapter:3 This chapter deals with the company profile that is vision, mission, structure, growth
and development and present condition of the company.
Chapter:4 This chapter deals covers the various functional departments that is Planning and
development, Human Resources, Central Financing, Inspection and Audit.
Chapter:5 This chapter deals covers the organization Strength, Weakness, Opportunity and
Threats (SWOT analysis).
Chapter:6 This is the final chapter it covers the summary of Finding, Suggestion and
Recommendations.
INDUSTRY PROFILE
INTRODUCTION
Co-operative moment as an economic system and as best instrument to eradicate the poverty of
the people and to protect them for the economic exploitation from the ‘haves’ was introduced for
the first time in the world with the organization of consumers’ Co-operative society in 1844 at
London. Later on the Co-operative movement was introduced in Germany with an organization of
Agricultural Credit Co-operative Societies (Urban Co-operative Banks) in towns and cities.
Hence, if the England is the motherland for the whole Co-operative movement, the Germany is
the cradle for the Co-operative credit and Banks organizations.
The co-operative movement in India was introduced with the organization on of primary
Agricultural Co-operative Credit Societies (PACS) in villages and Urban Co-operative banks in
town and cities offer passing the Co-operative Credit societies act 1904 with an objective to
emancipate the poor people in the rural and urban areas from the clutches of money lenders and
middlemen in the market and also to accelerate the pace of agriculture and industrial
developments in these areas. With the passing of second Act, viz, Co-operative Societies Act,
1912: the Co-operative movement in India entered into all sphere of economic activities besides
organizing DCC banks and State Co-operative Apex Banks. Profiteering (at more prices) and
usury (more interest) are the greatest evilsconst antly grinding the poor people down and hang
them till their death. To do way profiteering, consumers marketing, processing industrial and
other Co-operatives were organized and to minimize the usury the Co-operative credit and
banking organizations were organized to protect the poor people from the exploitation by middle
men in the market and to eschew them from the clutches of unbridled money lenders.
Farmers in India are scattered all over the country and need short term small borrowings for
agricultural purposed. This need is not fulfilled by commercial banks, which are unsuited for
financing agriculture. Land, which these farmers can offer to cover bank advances, is not
generally accepted as security by commercial banks. Therefore, special types of banks are best
suited for this purpose. The object of co-operative banks is to offer banking facilities to persons of
limited means requiring credit for productive purposes in the use of the land and labor at their
disposal. In 1914 the government of India appointed a committee under Sir Edward Mac lagan to
survey the progress of co-operation in the country. The committee submitted its report in 1915, in
which it made several recommendations, principal one being the institution of provincial co-
operative pyramid. The present organization in India is based upon the findings of this report. In
1919, the Montague Chelmsford act made co-operation a provincial subject. Since then, all the
state governments have passed their own separate co-operative societies acts.
v. Consumer finance
vi. Personal finance
2.3 Leading Players:
State Bank of India (SBI) HDFC Bank
ICICI Bank Punjab National bank (PNB)
UTI Bank (AXIS Bank) Hong Kong & Shanghai Banking
Corp (HSBC)
CO-OPERATIVE BANKS
URBAN CO-OPERATIVE
RURAL CO-OPERATIVE BANKS
BANKS
STATE CO-OPERATIVE
AGRUCULTURE & RURAL PRIMARY CO-OPERATIVE
DEVELOPMENT BANKS AGRICULTURE & RURAL
DEVELOPMENT
The co-operative banking structure in India may be divided into three component parts, they are
Primary credit societies at the base
Central co-operative banks at the middle
Provincial or state co-operative banks (also called apex banks)at the top
Primary co-operative credit society
Primary co-operative credit society is an association of borrowers and non-borrowers and
deposits of members and loans from central co-operative banks. The borrowing power of the
members as well as of the society is fixed. The loans are given to members for the purchase of
cattle, fodder, fertilizers pesticides, implements etc.
Central co-operative societies
Central co- operative societies are federation of primary credit societies as well as individuals.
The funds of the bank consist of share capital, deposits, loans and overdrafts from state co-
operative banks and joint stocks. These banks finance member societies within the limits of
the borrowing capacity of societies. They also conduct all the business of a joint-stock bank.
State co-operative bank
State co-operative bank is a federation of central co-operative banks and acts as a watchdog of
the co-operative banking structure in the state. Its funds are obtained from share capital,
deposits, loans and overdrafts from the reserve bank of India. The state co-operative banks
lend money of central co-operative banks and primary societies and not directly to farmers.
SOURCES OF FUNDS FOR CO-OPERATIVE BANKS ARE:
Central and state government
RBI and NABARD
Other co-operative institutions
Owned funds
Debentures issued
Deposit from public
CLASSIFICATION OF CO-OPERTIVE BANKS
Some co-operative banks are scheduled banks, while others are non-scheduled banks. For
instance, SCBs and some UCBs are scheduled bank but other co-operative banks are non-
scheduled banks. At present, 28 SCBs and 11 UCBs with demand and time liabilities over
Rs.50crore each included in the second schedule of the RBI act.
Co-operative banks are subject to CCR and liquidity requirements as other scheduled banks are
however, their requirements are less than commercial banks.
TABLE – 1:
SL. No. Category bank Minimum SLR holding in govt.
and other approved securities as
percentage of Net Demand and Time
Liabilities (NDTL)
RECENT DEVELOPMENT:
Over the year, primary (urban) co-operative banks have registered a significant growth in number,
size and volume of business handled. As on 31st march, 2003 there were 2,104 UCBs of which 56
were scheduled banks. About 79% of these are located in 5 states- Andhra Pradesh, Gujarat,
Karnataka, Maharashtra and Tamil Nadu. Recently the problems faced by a few large UCBs have
highlighted some of the difficulties these banks face and policy endeavors are geared to
consolidating and strengthening this sector and improving governance.
There are more than 297 co-operative banks in India:
TABLE – 2:
States No. of Banks
Andhra Pradesh 24
Assam 1
Bihar 24
Chhattisgarh 1
Goa 11
Gujarat 221
Haryana 1
Himachal Pradesh 3
INDIANSCENARIO
The Indian banking system of today can be compared with finest banking system in the whole
world. Today the Indian banking system is on very sound lines with a network of branch spared
all over the country and serving all sections of the society with innovative
banking programs.
Today’s Indian banking system comprises of 27 public sector banks,30 private sector non
schedule commercial banks, several private sector new commercial banks, 27 foreign
schedule banks, 196 regional rural banks, several thousand’s Co- Operative banks and several
land development banks. Institutions like Life Insurance Corporation of India and Unit Trust
Bank of India also plays an important role in Indian banking system.
Banking structure or banking system in India
The constituents in the banking sector of India are
The Reserve Bank of India
The State Bank of India and its subsidiaries
The Nationalized and the private Sector Indian Commercial Banks
The Private Sector Foreign Exchange Banks in India
The Co-operative banks and land development banks
The regional rural banks
COMPANY PROFILE
BACKGROUND AND INCEPTION OF THE COMPANY
The Karnataka State Co-operative Apex Bank Limited (hereinafter referred to as “The Bank”) is a
Scheduled Co-operative Bank incorporated under the Karnataka State Co-operative Societies Act
1959. It was established in 1915 and is meant to act an Apex Body to finance agriculture sector
through the District Central Co-operative Banks and Primary Agriculture Co-operative Societies.
In the later years the Apex Bank diversified its activities into commercial banking. Today it has
40 branches in Bangalore city through which it carries out commercial banking activities. It does
not have any branches outside Bangalore.
HISTORY OF KSCABL
The bank was registered on 10th November 1915 under the name and style of “The Mysore
Provincial Co-operative Bank Limited”, under Mysore Co-operative Societies Act of 1905. Then,
the Bank was not an Apex institution, as it was not exclusively meant for financing the Co-
operative in the State of Mysore. Another Bank Called the Bangalore Central Co-operative Bank
Limited, Bangalore (which was later converted into an urban bank), which was registered in 1905,
was also financing the Co-operatives. The bank owes its origin to Sri. M.A. Narayan Iyengar,
B.A., B.L., who was the Registrar of Co-operative Societies at that time.
1910-11. By the end of financial year 1914-15, there were 725 societies with a membership of
56,267 and their working capital went up to Rs.30.85lakhs.
Need for a Separate Provincial Bank
During the period when the Co-operative Movement was introduced, the need for an Apex Bank
to finance the societies was not felt since most of the earlier societies, which were started, were
non-agricultural societies and they were carrying on their activities out of the meager resources
raised by them. But after the year 1910-11, the number of societies and out of which 661 were
agricultural credit societies. With the increase in the number of societies, the need for starting a
special agency for financing the societies arose. As already indicated above, the Bangalore central
co-operative bank was already in the field and was financing some societies to a small extent.
Subsequently, however, another institution more or less similar in nature with the jurisdiction of
Mysore District called the Mysore District Co-operative Central Bank was registered. This was
followed by another type of institution known as unions, which was designed to work as a
permanent link between the primary societies at the base and the central bank at the top. The
jurisdiction of the unions extended over a taluk and their main functions were to mainly inspect
and supervise the co-operative societies in the taluk and also to finance them partly by raising
deposits and partly by borrowings from central banks. But since their utility to the movement as a
whole was far from satisfactory on account of their limited area of operations and lack of
resources, the unions; were wounded up in the next few years by an order of Government in
December 1924.
Starting of the Provincial Co-operative Bank
Against this background, the Mysore Provincial Co-operative Bank came into existence. Though
this Bank was registered on 10-11-1915, it actually commenced its work in 1916. The bank was
started with the objective of financing, inspection and supervising the co-operative societies in the
Mysore State. Subsequently, several district co-operative central banks with the jurisdiction of a
district were registered. Five such district central banks were started. But their working was not
satisfactory and they became defunct. As such, the provincial bank started financing the societies
directly. Besides, granting of loans, the Bank served as an outlet for investment of the surplus
funds of the co-operative societies in the State. The Bank thus began acting as the balancing
centre of the Co-operative Movement in the State, safeguarding its interests.
Re-organization of Provincial Co-operative into an Apex Bank
As already stated above, there were two provincial co-operative organizations working on similar
lines and with the same aims and objects, namely (1) The Mysore Provincial Co-operative Bank,
(2) Bangalore Central Co-operative Bank. This was an anomaly, which led to mutual completion
unnecessarily in the matter of financing of co-operative societies. In order to remove this anomaly
and to have only one institution as an Apex institution exclusively for financing the cooperatives
in the state, the Government appointed an enquiry committee known as the Mysore Co-operative
Enquiry Committee, 1920-22 presided over by Mr.Lallubhai Samakdas. The Committee after
reviewing the position of these two banks, made the following three alternative recommendations
to the Government:
To amalgamate the Mysore Provincial Co-operative Bank and the Bangalore Central Co-
operative Bank.
To create a new Apex Bank.
To convert the Central Co-operative Bank into an urban bank dealing only with the individual
and to reorganize the provincial Co-operative Bank into a new Apex Bank.
The Bangalore Central Co-operative Bank opposed the amalgamation with the provincial Co-
operative Bank. Thus, the creation of a new Apex Bank was out of question. The Government
therefore accepted the third suggestions made by the Committee.
Accordingly, the Government passed orders on 14/15.09.1925 permitting the Mysore Provincial
Cooperative Bank to get itself converted into an Apex Bank with the jurisdiction extending over
the entire State for financing the co-operative societies exclusively and the Bank thereafter was
named as the Mysore Provincial Co-operative Apex Bank Ltd, popularly known as “Apex Bank”.
In the beginning, the Bank was advancing long-term loans through agricultural credit co-
operatives for land improvements and redemption of prior debts. Large amounts were given for
the above purposes. After the organization of Central Co-operative Land Mortgage Bank in the
year 1929 and Primary Land Mortgage Banks at the taluk level, the Bank had to give up this
model of business. On account of depression between the years 1925-30, the value of lands and
the prices of agricultural produce fell very steeply and the Bank had to face a lot of difficulties in
the recovery of long term loans advanced. However, during Second World War, there was rise in
the land value and agricultural prices and the Bank could therefore recover a major portion of its
dues.
In order to meet the loss of business on account of stoppage of long-term loans for land
improvements and redemption of prior debts consequent on the organization of Central Land
Mortgage Bank, the Bank started financing of long-term loans for construction of houses through
House Building and House Construction Societies. Besides, on account of Second World War,
there was great stimulus for consumer stores activities for distribution of essential commodities
through co-operatives. The Bank undertook the financing of these consumer societies in the form
of cash credit loan. The financing of House Building Societies continued up to the year 1950
when a separate Apex Institution called the Mysore State Co-operative House Building
Corporation was registered. The Government thereupon directed the Bank not to issue loans to the
House Building Societies. This was a period of crisis in the history of the Bank. The Bank had to
satisfy itself by financing a few marketing societies by way of crop and produce loans and a few
stores societies.
Fortunately for the bank, consequent to the amendment to the Reserve Bank of India Act during
1953-54, the RBI suggested that the State Government should step into strengthen the capital
structure by contributing Rs. 5lakh towards share capital of Apex Bank. Accepting the proposal,
the State Government contributed Rs. 5lakh towards share capital and rehabilitation grand of Rs.
4lakh to meet anticipated bad debts.
During the year 1956-57, States were reorganized on linguistic basis and the new Mysore State
with 19 districts came into existence. Since there were District Cooperative Central Banks in all
the integrated districts, all the District Cooperative Central Banks came under the jurisdiction of
Apex Bank. Further the State Government notified the Apex Bank as the State Cooperative Bank
for the entire state and with the expansion, the responsibility of the Bank increased considerably.
The Bank stopped financing of primary societies directly. The membership and share capital held
by primary societies in Apex Bank was transferred to the respective District Cooperative Central
Banks. There was all round progress in the cooperative movement with the reorganization of the
State and also in all spheres of activities of the Apex Bank like share capital, reserves, deposits,
borrowings, lending, profit etc.
APEX BANK-“The Bank that listens”
Karnataka State Co-operative Apex Bank is playing a significant role in the dispensation of
production credit to the farmers. It is to the credit of Karnataka that the first co-operative credit
institution in the entire country was established way back in the year 1904 in a village called
Kanaginahal now at Gadag district, Primary Agriculture Credit Societies (PACs) at the village
level federation later to District Central Co-operative Banks (DCCBs) at the district level. These
DCC banks federated themselves at the state level to form Apex Bank.
The Karnataka State Co-operative Bank (KSCBL) was established in the year 1915 with deposit
of Rs.1.26lakh, owned funds of Rs.0.54lakh and working capital of Rs.1.80lakh. Varadaraj
Iyenger was its founder and president. The president of KSCBL at present is Mr.R.M.Manjunatha
Gowda. The bank has been extending its continued service for the past 95years to its members
and customers.
Apex bank is a pioneer in agriculture finance and allied activities. Apex Bank is ranked as one of
the premier state co-operative banks in the country. The main objective of the bank are to serve
the farmers in the state by providing short and medium term agriculture loans, general banking
business and functions as a leader of co-operative banks in the state.
Apex bank also provides cash credit loans to processing, marketing and consumer co-operatives
as well as sugar factories in Karnataka and working capital loans to state level and national level
institutions.
Apex bank with a network of 40 branches in the city of Bangalore doesn’t believe in growing
alone. It has a firm believe that its continued existence is justified only when the DCC banks and
the PACs are made stronger. Today the bank has 21DCC banks and 4613 PACSs throughout the
state. All branches are computerized.
They believe that the farmers who borrow from them are not their clients but are of their own
family members. Here lays their main strength, ensuring an excellent track record for repayment
culture. Compared to commercial banks and regional rural banks, NPA (Non-performing assets)
level of this bans is for less, even through its aim is to reduce it further.
The bank is habituated to get awards at the national level year after year. Similarly NABARD
(National Agricultural bank of rural development) has been given best performance award and
even PACSs have not lacked behind in getting national recognition. All DCC banks and nearly
80% of PACSs have proved them to be financially viable.
They are aware of the problems faced by the farmers, be it non-remuneration price or occasional
drought like situation in the state. This bank is committed to provide whatever little assistance to
the state government to overcome these difficulties. They are aware of their limitations; their
market share in the production credit dispensation has to go up. There are yet cover 20lakhs
farmer members. The national agriculture policy formulated by government of India as cast
greater responsibility on the bank and they hope accomplish what is expected from them in this
behalf. They are also providing housing loans, mortgage loans and vehicle loans to individuals
and also giving installment loans to the employees of government and public undertaking up to
limits of Rs. 1lakh. Apart from this jewel loan is also extended to the customer through their
branch in Bangalore.
The construction of new building at a cost of around Rs.800lakhs commenced in august in 1998
provides added impetus to a new work culture and new mindset of all. The gigantic building with
granite gladded facade having circular and rectangular column suggesting strengths and stability
reflects the administrative requirements of the bank along with the hi-tech banking hall on the
ground floor. The building up area of Uthunga is 67,820 sq.ft. And the civil cost is about Rs.888
per sq.ft and interiors all-inclusive worked at Rs.357 per sq.ft.
The bank believes that their members are always behind them not only to encourage but also to
guide them in case they go wrong. The bank is great full to them. Similarly it is great full to the
government of Karnataka, RBI, NABARD and all other sister co-operatives in the state for what
they are today.
AGRICULTURE CO-OPERATIVE STAFF TRAINING INSTITUTE
The Agricultural Co-operative Staff Training Institute of the Karnataka State Co-operative Apex
Bank Limited was established in the year 1985 to impart the requisite knowledge, professional
skills ad attitude of the personnel working in Apex bank, District Central Co-operative Banks,
Urban co-operative banks and Primary Agriculture Co-operative Societies in the state. During the
year 2009-10 1590 have participated for training program.
The agricultural co-operative Staff Training Institute is located at Padmanabhanagar. The Institute
is having its own infrastructure like Administrative Block, 3 classrooms, Library, conference hall
and hostel block with 18 rooms which accommodates 45 persons with canteen facilities and
providing Boarding and lodging facilities to all the participants during training period.
We are in the midst of challenges which have not been faced by the co-operatives hitherto in the
wake of economic liberalization and globalization. The co-operatives are required to be
professional to remain competitive to effectively cater to the needs of the rural community. It is
necessary that the bank should utilize the available man power effectively to the end.
The institute is dedicated to improve and utilize the available man power at Apex Bank, DCC
Banks, Urban Co-operative Banks and Primary Agricultural Co-operative Societies effectively.
The institute is offering the entire training program at subsidized cost with the assistance of
NABARD. Only nominal delegation fee is being collected from the client institution for the entire
training program conducted by the institute.
OBJECTIVES OF THE BANK
The Apex Bank is a pioneer in agricultural finance and allied activities in Karnataka. The Bank
thanks to its broad spectrum of activities and a proven track record is ranked as one of the premier
State Co-operative Banks in the country. The Bank’s main objectives are to serve the farmers in
the State by providing short and medium term agricultural loans, carry on general Banking
business and function as a leader of Co-operative Banks in the state.
The bank also provides cash credit loans to agro processing and marketing activities, consumer
cooperatives and sugar factories in Karnataka. It provides term loans to sugar factories under
consortium arrangements and working capital loans to state level and national level co-operative
institutions. The main aims and objectives of the Bank defined in the Bank Bye Law No. III are
given below:
To serve as a State Co-operative Bank and as a balancing center in the State of Karnataka for
registered co-operative societies.
To raise funds by way of deposits, loans, grants, donations, subscriptions, subsidies etc. for
financing the members by way of loans, cash credits, over-drafts and advances.
To develop, assist and co-ordinate the member DCCBs and other Co-operative Societies and
secure financial assistance for them
To arrange/hold periodical Co-operative Conferences of the DCCBs and other members of the
bank and to take action for the growth and development of the Co-operative Credit
Movement.
To participate in financing Co-operative and other institutions who are members of the bank,
directly or through consortium of Bankers.
To participate in the schematic lending and to provide loans for which refinance facility is
available with term lending institutions.
To arrange for the inspection and supervision of the affiliated DCCBs and other Co-operative
Societies and guide them in their working.
To buy and sell securities for the legitimate investment of surplus funds and act as agents for
buyers and sellers of securities of Central/State.
To carry on general business banking and other banking activities to the members and
customers.
To purchase, acquire or raise or otherwise obtain moveable of immoveable property for the
own use of the bank and also to dispose them of when not required.
To take measures to help Co-operative Research and Co-operative Development.
To manage, sell or release any property which may come into the possession of the bank in
satisfaction of or part satisfaction of any of its claims.
To promote economic interest of the members of the Bank in accordance with the principles
of Co-operation.
To do such other things as are incidental or conducive to the promotion and advancement of
the business of the Bank.
Some Co-operative banks are schedule Co-operative banks while others are non-
schedule Co-operative banks.
To do such other things as are incidental or conductive to the promotion and advancement
of the business of the Bank; one of the premier State Co-operative Banks in the country.
The Bank’s main objectives are to serve the farmers in the State by providing short and
medium term agricultural loans, carry on general Banking business and function as a
leader of Co-operative Banks in the State.
The Bank has expanded its activities and offers all types of banking services to its
customers, the growth in deposits as well as loans and advances led to appreciable rise in
profitability from year to year. It has now built up a strong capital base and is ranked as
one of the premier state co-operative banks in the country. Nearly 40% of the loans have
been advanced to weaker sections SC/ST and Agricultural Laborers.
The principal functions:
Financing of Short Term Loans for Seasonal Agriculture Operations and for marketing
of crops. These loans are repayable within one year.
During the year
Advancing medium term loans for the development of agricultural infrastructure such
as Lift Irrigation, Dairy, Poultry, Plantations, Gobar Gas, etc, under schematic lending.
Providing Cash Credit loans to Processing, Marketing and Consumer Co-operatives as
well as Sugar Factories in Karnataka and also Term Loans to sugar factories under
consortium arrangements.
Advancing Working Capital loans to state level Co-operative like MARKFED, KCCF
and to the National Level Co-operative such as IFFCO and KRIBHCO. The Bank
provides similar facilities to Public Sector undertakings like Food Corporation of India
through consortium arrangements with Commercial Banks and at times directly.
The Bank extends finance to Non-Farm Sector and for the development of Cottage
Industries, Small Scale Industries and Rural Artisans and Weavers. It is a scheduled
Bank in all respects including remittances of funds by Demand Draft, Mail Transfers,
Collection of Cheque and Drafts.
INFRASTRUCTURE
The Institute is having its own infrastructure like Administrative Block, 3 Classrooms, Library,
Conference Hall and Hostel Block with 18 rooms which accommodates 45 persons with canteen
facilities and providing Boarding and Lodging facilities to all the participants during training
period.
ACTIVITIES OF THE BANK
Financing short-term (agriculture) loans for crop production and marketing of crops and
advancing Medium Term Loans for development of agricultural infrastructure such as lift
irrigation, dairy, poultry, plantation, gobar gas etc.
Extending cash credit loans to processing, marketing and consumer co-operative as well as
sugar factories in Karnataka.
Advancing term loans to new co-operative/private sugar factories under consortium
arrangement in Karnataka.
Advancing working capital loans to sugar factories, state level cooperative and to national
level cooperatives such as IFFCO, KRIBHCO and to state level undertakings through
consortium arrangements with commercial banks.
Financing to non-farm sector for development of cottage industries and rural artisans and
weavers.
To carry on general business of Banking like remittances of funds by DD, Mail Transfer,
Collection of Cheques and Draft, issue of consumer loans, vehicle loans, housing loans, salary
earners loans and gold loans and other banking activities to the members and customers.
To monitor the Inland Mutual Arrangement Scheme under which money remittances and
collection of bells and Cheques are facilitated between member banks. The Bank is a member
All India Mutual Arrangement Scheme, whereby money remittances could be made and DDs
issued as well as Bills and Cheques sent for collection throughout India. Similarly, mail
Transfers and Bills Collection are facilitated from any part of the country to Apex Bank.
BRANCHES AT BANGLAORE
BRANCH NAME
Head Office Branch – Chamarajpet
Ashoka Pillar Branch
Banashankari Branch
Basaweswarnagar Branch
Chandralayout Branch
Gandhinagar Branch
Ganganagar Branch
Girinagar Branch
Gokula Branch
H S R Agara Branch
Indiranagar Branch
Jayanagar Market Complex
Jayanagar 9th Block branch
J P Nagar Branch
Kengeri Satellite Town Branch
Koramangala Branch
Lakkasandra Branch
Legislators Home Branch
Magadi Road Branch
Mahalakshmipuram Branch
M S Building Branch
Public Utility Building Branch
Padmanabhanagar Branch
Rajajinagar Branch
R P C Layout Branch
R T Nagar Branch
Shivajinagar Branch
Vijayanagar Branch
Vyalikaval Branch
Vidhanasoudha Branch
Vivekananda College Ext. Counter Br.
K R Puram Branch
Yelhanka Branch
Bommsandra Branch
Rajarajeswarinagar Branch
B T M Layout Branch
Sunkadakatte Branch
T Dasarahalli Branch
Banashankari 3rd Stage
Mahadevapura Branch
ACHIEVEMENT AWARDS:
1. Bank is able to lend 75% of the farmers in the state and it covers all sugar factories in
Karnataka.
2. Apex bank is habituated to get awards at national level year after year. Similarly
NABARD has been giving best performance award and even PACS have not lagged
behind in getting national recognition. All DCC bank and merely 80% of PACS have
proved.
3.2 VISION
As a State Co-operative Bank, Apex Bank shall be dominant financial institution in state leading
the state to economic prosperity.
The Bank shall be the model of an effective, protective, dynamic and financially sound
organization, responsive to state goals and aspiration.
The bank shall maintain highly trained and motivated professionals committed to highest
standards of ethics and excellence.
The bank shall contribute to building progressive and good standards of co-operative societies
in the service of farmers and rural mass.
3.3 MISSION
Ensuring the best quality of life and success of their farmers, primary agricultural co-operative
societies, district central co-operative bank clients and employees, who are the reasons for their
being.
FOR THEIR FARMERS
The bank shall continue to improve their socio economic status through timely financial and
technical support.
FOR THEIR CLIENTS
They shall deliver innovative and advanced products and services in protective and effective
manner to meet their local demands.
FOR THEIR PAC’s AND DCC BANKS
They shall ensure visual co-operative and compliment action to achieve optimum gain in an
environment of confidence and trust.
FOR THEIR EMPLOYEES
They shall ensure a work atmosphere of mutual respect and team work within the systems of
recognition regards. They shall continue appropriate training and value enhancement to ensure the
highest degree of professionalism and integrity.
1) Housing Loans:
Loans for purchase/ construction of houses and flats are sanctioned upto Rs.30.00lakhs for
residents of Bangalore. Repayment period is upto 15 years.
Processing charges:
1% of the loan amount.
Required Documents:
4) Professional loan
TABLE – 5:
Professional Loan Present rate of interest
Upto Rs. 60.00lakhs 13.00%p.a
7) Vehicle loans:
Loans to individuals for purchase of two wheelers and four wheelers are granted upto a
maximum limit of Rs. 20.00lakhs. The loans are sanctioned upto 75% of invoice value, Road
tax, and insurance, whichever is less amount of the vehicles.
TABLE – 8:
Period Loan Amount Present rate of interest
5 years Upto Rs.5lakhs 11.50%
5 years Above Rs.5lakhs 12.50%
8) Instalment Loans:
Under this scheme bank finances employees of public sector undertakings and also
government employee’s upto a limit of Rs.3.00lakhs.The present rate of interest is 12.50%
and repayment period is 60 months.
9) Jewel loan:
The bank also provides loans to the public on pledge of gold ornaments. The maximum limit
is Rs.10.00lakhs and the present rate of interest is 12% to 12.50% and repayment period is 2
years.
Rate of Interest:
Upto 5lakhs – 12.00% per annum
Above 5lakhs – 12.50% per annum
Maximum limit:
The repayment period for the loan is 24 months and interest should be paid every month. 2 %
penal interest will be collected on overdue amount and 13.00% interest will be charged on
the overdue interest amount.
Service charges along with Jewel Appraisal chargers will be collected for each loan.
The loan will be considered only if the gold is 22 carat.
10) Apex personal:
Loan scheme for employees of corporate professionals can avail this loan.
11) Apex cash:
Loans are provided against approved bonds like RBI, NABARD and other government bonds.
12) Apex education:
Education loans to deserving / meritorious students for pursing higher education and
professional courses in India and abroad in reputed universities / institutions.
13) Apex Travel:
To meet travel and lodging expenses of individuals for travel in India and abroad either trough
personally arranged tours or through conducted tours. Annual Gross Salary Gross Income of
the applicant should not be less than Rs.1.50lakhs.
14) Apex Rent:
Loan based on the rental income of the property rented/ leased out to central / state / semi
government / banks / financial institutions and multinational companies.
15) Apex BDA:
i. Loan for direct purchase of sites from Bangalore Development Authority either on
allotment basis or through auction. Salaried Individuals with a confirmed service of three
years. Non – salaried persons must be IT Assessee for at least three years.
ii. Loan scheme to individuals to pay initial deposit as notified by Bangalore Development
Authority in their offer letter. Salaried Individuals confirmed in service. Non salaried
persons must be IT Assessee for at least 3 years.
16) Apex Overdraft:
Loans to individuals pursuing such activities like retail trade, small business and
professionals. Loans are provided against security of National Savings Certificate / Life
Insurance Corporation Policy / Gold Ornaments, etc.
Personal banking: Apex bank provides the following deposits schemes to the customers.
A. Term Deposits: Term Deposit schemes offered by the KSCABL currently are “Fixed
Deposit”, Diamond Jubliee Jeevan Jyothi Deposit (DJJJ)” and “Cumulative Deposit and
Reserve Fund deposit”.
Fixed Deposits
i. Can be opened in a single name or two names.
ii. The period of deposit ranges from 15 days to 10 years.
iii. This account can be operated by either or survivor or jointly.
iv. Nomination facility is available. In case a minor is nominated, another name of a major is
a must.
v. This deposit is meant for a stipulated period. The amount will be paid on the date of
maturity. The interest is payable on monthly/quarterly basis.
vi. If the depositor wants to close the deposit before maturity (premature closure), a penalty
of 1% is charged.
vii. Deposits are accepted from Institutions and Individuals.
viii. Loan facility is available on this deposit. 85% of the deposit amount can be given
as loan. 2% more interest against the applicable rate on FD will be charged.
ix. Overdraft facility.
x. Additional 1% interest is paid for staff and ex-staff accounts.
xi. 0.50% more interest is paid for Senior Citizen.
xii. Additional 0.50% interest is paid for individual deposits of Rs. 15.00lakhs & above,
invested at a time for a period of one year & above.
xiii. Not transferable.
TABLE – 9:
TERM DEPOSITS RATE OF INTEREST
1. 15 to 45 days 5.00%
2. 46 to 90 days 6.00%
3. 91 to 179 days 8.00%
4. 180 to 364 days 8.50%
5. 1 year to 2 years 9.25%
6. 2 years and above 9.00%
1. The Higher Rate of 0.50%on Individual Deposits of Rs.15.00lakhs & above Invested
at a time for a period of One year & above.
2. The Higher Rate of Interest 0.50% offered to Senior Citizens on all term deposits
irrespective of the period of deposits.
3. The retired Officials of KSC Apex Bank Ltd. Who have become senior Citizens are
not entitled for this higher rate as per the circular dated 04.06.2007.
Cumulative Deposit:
i. Can be opened in a single name or two names.
ii. One year is the minimum period for this deposit.
iii. The depositor has to pay monthly installments in multiples of Rs. 100/- only.
iv. 70% of advance is available against this deposit
v. Interest will be paid along with the principle amount on the date of maturity.
vi. Nomination facility is available.
B. Current Deposits:
Features
i. Individuals, partnership firms, HUF, Societies, Trust Accounts, can open a Current
Account.
ii. No limit is fixed on the number of transaction in a transaction in a Current Account.
iii. Minimum balance to be maintained in case of Accounts without Cheque Book is
Rs.1000/-
iv. Minimum balance to be maintained in case of Accounts with Cheque Book facility
Rs.5000/-
v. Usually no interest is paid to Current Accounts and no OD is allowed.
ix. Interest on balance in saving bank accounts would be calculated on daily product
basis with effect from April 01, 2010.
x. Rate of Interest – 4.00% PA.
This structure will helps to proper flow of the delegation of authority and responsibility between
the top levels to lower level employees. This arrangement helps to the allocation of tasks and
responsibilities to different and the persons at various positions. Since Karnataka State Co-
operative Apex Bank being a public sector unit the structure of organization is more democratic
and military type that is decision is taken from the top level management will consult the lower
level and functional manager. And for the performance of any particular task a separate functional
head is assigned. Each functional department heads are assisted by the managers.
Requirements for opening of SB Account
i. A person who wants to open an SB Account has to fulfill the following formalities –
Names and address of his residence – Documents like Voters list, Passport, Driving
License, Electricity Bill, Telephone Bill, etc., for address proof.
ii. An introduction of the person from an existing account holder with the Bank.
iii. Recent photograph of the person for identification for future needs/investigations.
iv. Permanent Account Number (PAN)/ (Form No.60/ From No.61)
v. Specimen signatures of the operators.
ORGANIZATIONAL STRUCTURE
An organizational structure is a hierarchical concept of sub-ordination of entities that collaborate
and contribute to serve one common aim of the organization. Organizations are a number of
clustered entities. The structure of an organization is usually set up in one of a variety of styles,
dependent on their objectives. The structure of an organization will determine the modes in which
it shall operate and will perform.
Organizational structure allows the expressed allocation of responsibilities for different functions
and processes to different entities. These entities are called as departments. Board of Directors
will take the decisions that are strategic in nature. All the departments head communicate their
report daily or weekly to the management and regulates the performance of their respective
departments.
Structure refers to the arrangement of the different levels of organization to maintain the inter
relationship.
BOARD OF DIRECTORS:
According to the Karnataka Co-operative Societies Act and by laws of the Bank, functions of the
bank are regulated by the Board of Director of the Bank consisting of one elected nominees of
each District Central Co-operative Banks and Government Nominees. The board is headed by the
President followed by Vice President, Managing Director. The Chief General Manager, national
bank for agriculture and rural development bank and registrar of co-operative societies are also
among the board of directors and are government nominees.
The Board Meeting is convened once in a month. The executive committee meeting is convened
once a month.
KEY PERSONNEL
STAFF IN APEX BANK:
The staff’s of Apex bank has been classified into three categories:
Class A Officers:
They are to guide the fellow officers. These officers are the head of the departments. The
managing directors, executive directors are higher level.
Class B Assistance and clerical staff:
The class B officers are there for performing various functions of the organizations. The officers
look after the functions like treasury functions, legal functions and internal audits etc.
Class C others subordinates staff:
These officers are responsible to implement the function which is given by their bosses. The
lower level officers have to perform the commanded task of their department.
state level and 768 Primary Agriculture and Rural Development Banks at Taluk level. However,
Co-operative banks are small in size, operation and also have limited area of operation.
PRESENT CONDITION
Currently, India has 96 scheduled commercial banks (SCBs) -27 public sector banks (that is with
the Government of India holding a stake), 31 private banks (these do not have government stake;
they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a
combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA
Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the
banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.
FUNCTIONAL DEPARTMENTS
As a human being we have various parts in our body, like this type even company also have
specialized division. Without this departments company can’t reach its goals.
Departments will seek to make sure that the company has focus in everything that it does. It will
work very closely with production to make sure that new and existing product development is tied
in closely with the needs and expectation of customers. There is always coordination between all
functional departments through horizontal communication.
Functional Departments of Karnataka State Co-operative Apex Bank ltd.
CREDIT DEPARTMENT
GENERAL MANAGER
(PLANNING & DEVELOPMENT)
MANAGER
(PLANNING & DEVELOPMENT)
Under the department there are five sections and they are:
i. Engineering: Under this section the estimation of site. Premises are given so as to help
the bank for sanctioning of loans. They also look after the whole construction of bank’s own
building. They will estimate the value of bank’s assets such as old furniture’s, buildings,
machineries and equipments etc.
ii. Development Action Plans: In pursuance of financial sector reforms announced by
government of India and as advised by NABARD, the apex bank and all the DCC banks have
prepared and implemented comprehensive and holistic development actions plans in order to
fulfill certain economic and social obligations and to achieve sustainable viability within a
span of a years from 994-95.
iii. Administration:
a) Vehicle Maintenance
b) Building Maintenance
c) Insuring the premises of Bank
d) Maintaining the rent agreement of bank’s branches
iv. Statistics: It covers the activities like compilation of data from the District Central Co-
operative banks in the state and submission of return to NABARD, RBI, and State
Government etc.
v. Legal cell: This section looks after the legal issues pertaining to the bank. Panels of
lawyers are appointed by the bank to fight the cases field the bankrupt.
Selecting the right person for a right job is very important. HRD department does this act. The
major function of this department is to manage people at work. Managing people not only refers
to working but also it includes white collared professionals. Usually the HRD functions will be
tailor made to suit the organizational needs. Thus the main objective of HRD is to maintain the
cordial relationship by providing the maximum welfare and thereby optimizing the personal
contribution to the effecting working of that undertaking.
Every organization achieves its ends by a proper utilization of the monetary, material and human
resources at its command. While the human resource is only on resource, with which all the other
resources are mobilized and utilized to achieve organizational objectives. The human resource
management is a set of programmed, functions, and activities which is designed and carried out in
order to increase the effectiveness of the organization by improving the efficiency of its
employees.
CHIEF GENERAL MANAGER
(ADMINISTRATION &
DEVELOPMENT)
GENERAL MANAGER
(PLANNING & DEVELOPMENT)
GENERAL MANAGER
(HUMAN RESOURCES)
Objectives of HRM
Understand the importance of Human Resource Management to the organization
Appreciate the key functions associated with Human Resource Management
Implement a Human Resource Planning Process
Understand the importance of Recruitment and Selection
Implement an effective Performance Appraisal Process
Understand the function of Training and Development and its importance to the organization
Functions of HRM
Human Resource Planning
Recruitment & Selection
Compensation & Benefits
Performance Appraisals
Training & Development
MEANING OF RECRUITMENT
Recruitment of candidates is the function preceding the selection, which helps create a pool of
prospective employees for the organization so that the management can select the right candidate
for the right job from this pool. The main objective of the recruitment process is to expedite the
selection process.
According to Edwin B. Flippo, “Recruitment is the process of searching the candidates for
employment and stimulating them to apply for jobs in the organization”. Recruitment is the
activity that links the employers and the job seekers. A few definitions of recruitment are:
other systems, Recruitment management system helps to contour the recruitment processes and
effectively managing the ROI on recruitment.
The features, functions and major benefits of the recruitment management
system are explained below:
Structure and systematically organize the entire recruitment processes.
Recruitment management system facilitates faster, unbiased, accurate and reliable processing
of applications from various applications.
Helps to reduce the time-per-hire and cost-per-hire.
Recruitment management system helps to incorporate and integrate the various links like the
application system on the official website of the company, the unsolicited applications,
outsourcing recruitment, the final decision making to the main recruitment process.
Recruitment management system maintains an automated active database of the applicants
facilitating the talent management and increasing the efficiency of the recruitment processes.
Recruitment management system provides and a flexible, automated and interactive interface
between the online application system, the recruitment department of the company and the job
seeker.
Offers tolls and support to enhance productivity, solutions and optimizing the recruitment
processes to ensure improved ROI.
Recruitment management system helps to communicate and create healthy relationships with
the candidates through the entire recruitment process.
The Recruitment Management System (RMS) is an innovative information system tool which
helps to sane the time and costs of the recruiters and improving the recruitment processes.
A recruitment professional or manager can calculate and maximize the return
on investments on its organization’s recruitment by
Clear definition of the results to be achieved from recruitment.
Developing methods and ways measuring the results like the time – to – hire, cost-Per-Hire
and effectiveness of the recruitment source etc.
Estimating the costs associated with the recruitment project
Estimating the tangible and intangible benefits to the organization including the payback
period of the recruitments.
Providing and ensuring proper training and development of the recruitment professionals
A process of finding and attracting capable applicants for employment. The process begins
when new recruits are sought and ends when their applications are submitted. The result is a
pool of applications from which new employees are selected.
It is the process to discover sources of manpower to meet the requirement of staffing schedule
and to employ effective measures for attracting that manpower in adequate numbers to
facilitate effective selection of an efficient working force.
Purpose & Importance of Recruitment
Attract and encourage more and more candidates to apply in the organization.
Create a talent pool of candidates to enable the selection of best candidates for the
organization.
Determine present and future requirements of the organization in conjunction with its
personnel planning and job analysis activities.
Recruitment is the process which links the employers with the employees.
Increase the pool of job candidates at minimum cost.
Help increase the success rate of selection process by decreasing number of visibly under
qualified or overqualified job applicants.
Help reduce the probability that job applicants once recruited and selected will leave the
organization only after a short period of time.
Meet the organizations legal and social obligations regarding the composition of its
workforce.
Begin identifying and preparing potential job applicants who will be appropriate candidates.
Increase organization and individual effectiveness of various recruiting techniques and
sources for all types of job applicants
SOURCES OF RECRUITMENT
the job training which charms out high quality staff with moral attitude motivation and behavior
for excellent customer services.
Agricultural co-operative staff training institute:
The agricultural cooperative staff training institute of the bank has conduct various training
institute programmers for the employees of Apex bank DCC banks and PACS and also for co
operative banks during the year 2009-10 above 58 training programmers were conducted for
benefit of 1590 participants the training programs covered business development modern banking
management information system small scale industries financing development action plans
schematic lending computer application and IMAS/AIAMAS and self help groups financing
viewers cooperative society personal and interpersonal relationship and customer services.
GENERAL MANAGER
(GENERAL BANKING)
MANAGER
(ACCOUNTS & OPERATION)
The primary activity of this department is to sanction loans to the customers who have applied for
it and it deals with investing the surplus of the bank. The main activities are:
i. Giving advances to the DCCBs sugar factories and institutions.
ii. Borrowing from NABARD
iii. Investment: the surplus funds of the bank can be invested in various ways. It can
short term, medium term or long investments.
GENERAL MANAGER
(GENERAL BANKING)
MANAGER
(CENTRAL FINANCING AGENCY)
The main functions of this department are to provide housing loans, short term seasonal
agricultural operations, and medium term loans and cash credit.
Clearing section
Karnataka State Co-operative apex bank limited has 40 branches of its own and 28 sub-members
(other co-operative banks). The clearing section will clear the cheques by either payment or by
receiving money. Types of clearing houses are:
a) Magnetic Ink Code Recognition Clearing
b) RBI Return Clearing
c) Electronic Fund Transfer
d) Electronic Clearing Services
e) Real time gross settlement
GENERAL MANAGER
(AUDIT & INSPECTION)
MANAGER
(AUDIT & INSPETION)
An inspection and audit department has been created during the year 1998 headed by a general
manager (Inspection and audit). About 50 officers consisting of deputy general managers,
assistant general managers, managers and assistant managers have been posted to this section in
order to streamline and update the inspection and internal audit of the branches of Apex bank also
inspection of DCC Banks.
Internal Audit: The bank has an internal audit and inspection department which is focused on
independently evaluating the adequacy of all internal controls. Ensuring adherence to co-operative
guidelines and regulatory requirements. This department pro-actively recommends improvements
in operational process and service quality in all bank’s branches. It ensures qualitative audit
compliance with regulatory guidelines. From February 2003 concurrent audit of all branches has
been introduced.
MCKINSEY 7S FRAMEWORK
The 7S model can be used in a wide variety of situations where an alignment perspective is
useful, for example to help you:
Improve the performance of a company.
Examine the likely effects of future changes within a company.
Align departments and processes during a merger or acquisition.
SKILLS
The banks required different skills for different type works at different levels. Highly qualified
professionals in the bank have major skills like technical, finance, economical and public relation
skill. The bank also looks for the development of their staff skills. The apex bank included
following skills in the organization.
Financial management skills
Managerial skills
Interpersonal skills
Communication skills
STYLE
Bank follows a top down participative style of management. It believes in team work. For each
task teams are constituted to attain specific goals. Apex bank believes that quality can be achieved
by providing quality financing and related services on a continuous basis. In order to motivate the
employees, it encourages them to activity participate in setting the organization growth targeting,
objectives and to take their own decisions at various levels. Apex bank leadership style is
basically democratic and participative in nature.
Leadership style of managers of KSC Apex Bank Maintain discipline in the organization.
Gives instructions and orders to the subordinates.
Listened to subordinates and responds to their needs.
Takes important decisions for the group.
Maintain unity in the organization.
Inspires and motivates the various members of his group.
Achieve or formulate objectives for his groups
Maintain communication in the organization.
The manager plays a vital role (top management). The manager of the department takes all the
plans, policies, procedure, etc.
It has very good quality circle program through which the employees and workers are allowed to
discuss any existing problem or can healthy suggestion regarding any problems to the
department manager. This will build healthy relationship between manager and subordinates and
workers.
STRATEGY
Apex bank is one of the pioneers in this industry in providing short term loans and long term
loans to farmers and medium scale industries. As a part of its marketing studies it makes its
advertising through newspapers, leading television channels and focus over quality certificate. All
the decision making are decentralized, only cooperation of the entire higher officer are authorized
to make the polices and strategies. Only operation decisions are left to branch head.
STAFF
Bank follows a typical selection procedure. As a first step, advertisement is given as and when it
is required. The test is conducted and the candidates are made to go through interview which is
being conducted by the top management board. It consists of subject expert from different
department
SYSTEM
The apex bank has the good system. It follows the rules and regulation including procedures that
support the organization structure. The APEX bank has a agricultural delivery system for
improving overall development of rural farmers. The credit sector is extending helping hand to
the farmers in its own way to boost the agricultural production in the state and in the country at
large. It provides facility to the commercial and non-commercial purpose.
SHARED VALUES
Shared value is satisfying the farmers and small and medium scale industries first. Mission of
apex bank is committed to continuously nurture, develop and service the small sector through the
need based products and services. The values that the bank upholds most are “Farmers
Satisfaction”. This bank focuses over their farmers and industrial demands and wants. They also
come up with various schemes like housing loans, vehicle loans, installment loans and mortgage
loans. These are the purpose of attracting the farmers and industries and feel satisfactions by the
banks.
FINDINGS
FAYOL’S FOURTEEN PRICIPALS OF MANAGEMENT
1. DIVISION OF LABOUR:
The people of labor is specialize the more efficient and they can perform their work. These
divisions of people can applied in a good assembly line of work.
AT KSC APEX BANK:
The work will be divided among the staff according to the qualification, ability, experience,
skill and efficiency of the employees and no person no allowed to do entire work.
2. AUTHORITY:
The manager can give any order so that they can get things done. While the manager gives
formal authority. That time right to command.
AT KSC APEX BANK:
The higher authority person has a right to issue the commands on the employees rather than
leaving his responsibility. And the department head the management are given decision on
workforce.
3. DISCIPLINE:
According to FAYOL’s discipline is a result from good leaderships at all levels of the
organization. The organization members should respect the rules and agreements.
AT KSC APEX BANK:
Discipline is a tool for success and it results from good leadership. The organization
member’s should follow the rules and regulation of the organization in order to achieve the
given objectives. The leaders who follow discipline in their work and culture the same in their
followers as the word discipline put together for an organization run successfully.
4. UNITY OF COMMAND:
The company each employee must get instructions from only one person. Fayol is believed
like when an employee’s reported to more than one manager that time conflicts in instructions
& confusion of authority. This result is come in organization.
AT KSC APEX BANK:
The employees in an organization should get instructions from one and only person called
boss and if the employees reports to more than one person then it may leads to conflicts in
instruction and confusion to the authority. In this organization the General Manager is the
only one boss to all the employees within the branch.
5. UNITY OF DIRECTION:
Those operations within the organization that have the same objective should be directed by
only one manager. Employees should be worked in a company the manager what information
gave them that is a agreement information only one direction.
AT KSC APEX BANK:
The management should tell briefly about the objectives of the organization to their
employees so that the higher authority person can direct is employees for the better
achievements of the goals. If the management fails to tell the objectives then the direction will
differs from person to person and there won’t be a unity of direction among the staff. This
organization is recruit freshers and experience employees and these employees to give
guidance and direction for the job is given to different departments.
6. SUBORDINATES OF INDIVIDUAL INTEREST TO THE COMMON GOAL:
The company should not take any procedure. Over the interest of the organizations as whole
the subordinate’s overconfidence to in anything that is achieve the goals for the company.
AT KSC APEX BANK:
According to the Vision and Mission of an organization, at the Management should mainly
concentrate on the objectives or goal of the organization rather than concentrating on the
individual interest.
7. REMUNARATION:
When the work done the company that time calculated should be take the work men
compensation & non workmen compensation, it is the giving incentives of the employees.
AT KSC APEX BANK:
The management provides good salary and fair remuneration to their employees to the work
done by them according to their posts.
8. CENTRALISATION:
The centralization Fayol said this case is believed that managers should retain final
responsibility, but should at the same time give their subordinates enough authority to do
their jobs properly. The problem is to find the proper degree of centralization in each case.
AT KSC APEX BANK:
In this organization various department managers should have the responsibility and even
employees also have the responsibility in the organization. The boss will be retains in his
same position but at the same time the employees will be provide with enough authority to do
their work properly.
9. THE HIERARCHY:
The company hierarchy top to bottom in any company superior what information given that
only the subordinates will take the subordinates will doing the work.
AT KSC APEX BANK:
The employees follow the rules and regulations of the top level management. They follow top
down hierarchical structure and bottom up feedback.
10. ORDER:
The company employees particulars in job or any their positions employees should maintain
the order of superiors. The materials and people should be in a right time and right place.
AT KSC APEX BANK:
The employees in the organization should follow the words of his superiors as per the order of
the superior the materials and the people are place in a right in a right place and in a right
position.
11. EQUITY:
The company manager should be friendly in a worker and employees not maintain any levels
in employees. The company should be the relationship of the company.
AT KSC APEX BANK:
All the employees in the organization are treated equally irrespective of their qualification and
posts.
12. STABILITY OF STAFF:
The high employee’s incentives rate undermines the efficient functioning of an organization.
And incentives also turnover of the organization.
AT KSC APEX BANK:
First the employees will be appointed as temporary… then if the responsible person satisfies
his work means he will be turned to permanent job… however inefficient persons are
removed and for efficient persons well awarded.
13. INITIATIVE:
Employees should be freedom in a company and the worker should carry out their own plans
even some mistakes in going it’s not mandate.
AT KSC APEX BANK:
Each and every employee in the organization should take initiative plans in the organization.
And the organization is also give chance to suggest their new ideas to develop the
organization.
SWOT ANALYSIS
Organizational strategies are the means through which companies accomplish their missions and
goals. Successful strategies address four elements of the setting within which the company
operates: the company’s strengths, its weaknesses, the opportunities in its competitive
environment, and the threats in its competitive environment. This set of four elements—strengths,
weaknesses, opportunities, and threats-when used by a firm to gain competitive advantage, is
often referred to as a SWOT analysis. SWOT was developed by Ken Andrews in the early 1970s.
An assessment of strengths and weaknesses occurs as a part of organizational analysis; that is, it is
an audit of the company’s internal workings, which are relatively easier to control than outside
factors. Conversely, examining opportunities and threats is a part of environmental analysis-the
company must look outside of the organization to determine opportunities and threats, over which
it has lesser control.
Strength and weakness are the internal factors of the organization and which are controllable.
Opportunities and threats are external factors of the organization and which are uncontrollable.
Strengths
The strength of the Karnataka Co-operative Apex Bank depends on their external and internal
environments which are:
The bank operates only in Bangalore due to its limited area it is easy to monitor minor
requirements of the customers which may be ignored by other banks.
The bank provides the easiest way to open a new account into any of its branch as the
customers has to fill minimum requirements.
The bank has the branches in the remote areas where the branches of other banks are not yet
opened which give the bank edge over the other banks.
As the bank is a co-operative bank thus bank gets the advantage of getting priority by the
different cooperative societies for transactions and loans.
Due to the co-operative bank nature of the bank people have faith in the bank.
Co-operative staff is the main strength of the bank.
Adherence to cooperative values and principles.
Karnataka State Co-operative Apex Bank has deep roots in the community.
Karnataka State Co-operative Apex Bank considers the users of funds not only the customers
but also the member of the bank.
It has great amount cooperation with other district cooperative banks.
Karnataka state Co-operative Apex Bank focuses on the person of limited means and the
poorer section of the society.
The main priority of Karnataka State Co-operative Apex Bank is member services rather than
profit.
Karnataka State Co-operative Apex Bank has the capacity to thrive in crisis.
Weakness
Karnataka State Co-operative Apex Bank has less resources’ as compared to the other
nationalized and public banks.
Political pressures on the employees of the bank as compared the other banks.
There is some sort of government control over the working of the bank.
No internet banking and mobile banking.
Less advertisement is other weakness of the bank.
Due to the restricted area the total capital of Karnataka State Co-operative Apex Bank is
limited.
Opportunities
Being a Co-operative bank it has the opportunity to finance the government projects.
As it is a state Co-operative bank, this bank is bank in demand.
Being Co-operative bank this bank this bank gets priority over the other banks for Co-
operative societies.
Bank should open branches in other states of the country.
Bank may take the advantage of being Co-operative bank by promoting itself.
Threats
The main threat to Karnataka state Co-operative Apex Bank is increasing steps/roots of the
public banks.
Easy policies of the public banks.
Less documentation of the public banks for different types of loans.
SUGGESTIONS
Suggestions
To run any organization successfully the management needs to think always for the betterment of
their service and product, every time there is a chance of improvement in the functioning of every
organization specially when we talk about the banking sector in past there is very less or no
competition in the market and the banks has no pressure to provide better facilities to the peoples
but in recent years the competition is increased due to the entry of the public banks and other
money lending units. Considering this the state cooperative banks need to be more careful and
needs to take such step which favors them to stay ahead in the market. Some of the suggestions
and recommendation are given here which may help Karnataka State Co-operative Bank to stay in
the competitive market if they adopt these:
In order to be competitive in the market, all three segments of co-operative banks should
jointly work out a coordinated strategy for establishing workable synergy to compliment and
supplement each other.
CEO should take steps to promote the officials suitable for the DGM post which has been
vacant for a long time.
The bank should recruit more clerical staff in order provide better customer services.
In order to have a competitive edge over other co-operative banks, it has to implement new
strategies keeping in view the market, regulatory framework and co-operative values.
Healthy relationship should be established with the customer.
More mass awareness campaigns should be organized in order to enhance market share of
bank.
Customer’s satisfaction must be the top priority of the bank.
More branches should be opened at the remote areas.
Core banking facilities should be adopted.
Maximum practical exposure should be provided to the job trainees so that they may handle
the various enquiries of customer effectively.
Functioning should be fast i.e. the time taken to do any work should be reduced efficiently.
Online banking should be provided to customers for their batter service.
Customer’s care center should be established.
BIBLIOGRAPHY
Books
o P. Subba Rao, Human Resource Management, 3rd edition, Himalaya Publishers, Year-
2003.
Reports
Websites
o www.karnatakaapex.com
o www.nabard.org
o www.moneycontrol.com
o www.timesmoney.com
o www.rbi.org
o www.bankingindia.com
o www.bankersindia.com