EXECUTIVE SUMMARY

In the financial system of the country the credit co-operative societies contribute to the economic
development by lending loans and advances to the public and increase the purchasing power of
the individuals. These societies also encourage savings in the economy. Even though these
cooperative societies cater the need of small region, they play an imperative part in the economy.
The major function of these credit cooperative societies is to accept the deposit and lend loans
and advances to the registered members of the society. The performance of these types of credit
cooperative societies depends on lending and recovery of advance and loans disbursed time to
time. The spread between the deposits and loans would be the profitability of the society. The
study on various types of loan and recovery would help the society to keep a track on their
performance and frame the strategies to increase the profitability of the society.

During the study we have collected the data for the previous 5 years from 2012-13 to 2016-17, of
various types of loans and their recovery. The data has been extracted from the financial reports
of the society. During the study we have implemented descriptive research design with a major
objective being the study on disbursal and recovery of various types of loans and advances. The
study is limited to M/S Kempegowda Credit Cooperative Society Ltd.

During the study we would like to analyze various data pertaining to disbursal and recovery of
loans in the society. We can analyze and interpret that the society has concentrated on some of
the loans, whereas the disbursal on some of the loans is not encouraging. Even in the recovery of
loans the analysis would be that the recovery has been good in some of the loan, wher eas in
some of the loans the recovery is not encouraging.
We can conclude that, it is very important to concentrate on both disbursal and recovery by
credit cooperative society. The time to time disbursal and recovery of loan would improve the
liquidity and profitability of the society in the long run. Thus we can suggest that society that it is
also very important to diversify the disbursal of loans to maximize the profit.
 CHAPTER 1

INTRODUCTION

1.1 INTRODUCTION

A co-operative society is an intentional relationship of individual having basic needs who holds
hands for the accomplishment of regular financial interest. It points is to serve the enthusiasm of
the poorer areas of society through the guideline of self improvement and common help. The
primary target is to offer help to the individuals. No one joins a helpful society to win benefit.
Individuals approach as a gathering, pool their individual assets, use them in the most ideal way,
and infer some normal advantage out of it.
A co-operative society can be shaped according to the arrangement of the co-operatives society
act, 1912. No less than ten people over the 18 years, having the ability to go into an agreement
with regular monetary goals, such as cultivating, weaving, expending and so forth can frame a
co-operative society. Agreeable society act is a focal demonstration, be that as it may, 'helpful
society' is a state subject (Entry 32 of summary of seventh calendar to commitment, i.e state list).
Despite the fact that the demonstration is still in drive. It has been particularly revoked in every
one of the states and those states have their own particular agreeable social orders act. Hence,
essentially, the focal demonstration is masculine of scholastic interest and according to prelude
to the demonstration; the demonstration is to encourage arrangement agreeable social orders for
the advancement of thrift and self improvement among the farming, craftsmen and people of
restricted means. Co-operative development in our nation should remain as well as develop in
times to come. Notwithstanding the disadvantage experienced in the working and authoritative of
co-operative social orders, they have decidedly added to the development and improvement of
the national economy. Advancement of thrift, self improvement and common guide are the
essential rule of collaboration. The introduction of business association and co-operative
association are fundamentally extraordinary. In business association, winning and boosting the
benefit can't be sole rationale. The prime target, notwithstanding the three essentials of co-
activity said above are to make accessible the merchandise and enterprises in required amount, of
better quality and at a sensible cost to its individuals. It doesn't imply that a co-operative society
is a chartable association. It should, along these lines, act in a systematic way in accomplishing
its goal affectively.
Following are the features of co-operative society
1) Willful Association: A co-operative society is an intentional of people not of capital'. Any of
individual independent of sex, creed, caste, and so on can join the general public of his desire
and he can abandon it at whenever in the wake of giving the notice to society.
While leaving he has to withdraw his sum and he it not assume to exchange the amount on other
persons.
2) Wellspring of back: The capital of co-operative society is raised from the individuals by
method for share capital since co-operatives are organized by moderately weaker segment of
society, the offer capitalist limited.
3) Control and Management: Democracy is the Keynote of the management of the co-operative
society since the majority of these societies works on a neighborhood scale, the gatherings of the
part are generally very much went to. Al time of gatherings the individuals select the overseeing
advisory group and set out the strategy which it must follow to advance their regular interest,
every part, what ever be his state in the public arena, has one vote and henceforth an equivalent
rights to take an interest in the administration of society. Individuals can't vote as a substitute.
Next to the association the association and control of a co-operative society might be carried on
by 2part working detached limit and outcasts might be utilized just when the society develops
excessively large.
4) Administration intention: A co-operative society is sorted out essentially with the question of
rendering greatest support of its individuals in certain field. It doesn’t go for the cost of its
individuals for it is framed fundamentally to provide certain basic offices to individuals. This
does not imply that a co-operative society will have work for profit. It is very normal for society
to win benefit by broadening their service to max-members.
5) Transfer of overflow: It is common for business worry to convey benefits among the
proprietors in the apportion of their capital distribution or in concurred proportion. A co-
operative society contrasts from exchanging co.in this regard. Under the co-operative type of
possession and organization, surplus emerging of a year working is given to the members not
straightforwardly or isolated on share held by each of them. But in the type of a reward which
require not be proportionate to their separate capital contribution.
6) Settled profit for capitals: The settled or restricted profit for capital subscribed to the general
public must be paid out of the surplus to the members. Making installment of repaired interest or
paid capital definitely a first charge on the exchanging overflow, of every one of the individuals
who joined the general public a strong explanation behind leaving their reserve funds in deposits
with it'.
7) State control and co-operative status: Although willful in their essential character the co-
operative society are liable to considerable state control and supervision. In india the co-
operative society act as the case may.

1.2 INDUSTRY AND COMPANY PROFILE

Industry profile
Co-operative society orders are discovered everywhere throughout the world. for the most part,
society are shaped by economically weaker areas of the society to secure themselves against the
by the financially stronger section. In this manner poor agriculturists may frame co-operative
credit society orders to decrease the misuse from money lenders and to offer the product at
favorable price and ensure to protect themselves against the exploitation of traders. Customer
belonging to middle and low salary group may frame's consumer co-operative society orders in
order to get fundamental items at favorable price and ensure to protect themselves against
exploitation by the retailers.

DEFINITION
Hubert Calvert says, “Co-operation is a form of association wherein individual voluntarily come
jointly as and pool their resources equally for the promotion of the economic interest of the
nation.”

TYPES OF CO-OPERATIVE SOCIETY

1. Producer cooperative society
2. Consumer cooperative society
3. Credit union
4. Worker cooperative society
5. Housing cooperative society
Company profile
The KEMEPGOWDA CREDIT CO-OPERATIVE SOCIETY' is a co-operative society, which is
enlisted under CO-OPERATIVE SOCIETY ACT 1959 ', set up on 1999 has finished.

Before 1999 in, there were just a few co-operative societies which were likewise not focused on
giving credit facilities (credit stream) and money related guide to the general population. In such
a circumstance, a few leaders of group solidly chose to build up a co-operative society by
keeping aside their very own work.

Management of the society

The administration of the general public is equitable and privileged. It depends on the rule that
One part, one vote' the administration is entrusted to two bodies.
A. A General advisory group comprising of all individuals, and
B. An overseeing advisory group of an individuals, browsed among the members of the general
council at its general gathering the general body is extreme expert on all issues concerning the
society. A president and vice president are chosen. The secretary carries on the official work of
the general public subject to the control of the president.
The overseeing board is in charge of the standard and official business of the general public. On
the off chance that concedes new individuals, recoups unfulfilled obligations due from
individuals, recuperate back payments due from individuals and exercises supervision over them,
discards the credit application raises for the society and assesses the records kept up by the
secretary.
1.3 PROMOTERS
Krishnaaappa B. President
Javregowda C.D. Vice-president
Nagraj Director
Kodandaramaiah H. Director
Shivram Director
Atmanand Director
Tulsai Prasad T. Director
Mohamkumar G.B. Director
Anil kumar V. Director
Jaikumar R.C. Director
Muarli V. Director
Bina A. Director
Sushilaraghav Director
Rajesh gowda K.N. CEO

Organization structure

PRESIDENT

VISE-PRESIDENT

CEO

DIRECTORS

STAFF
Sources of fund
The Society gathers surplus cash from the individuals as deposits for the wellbeing of people in
general, cash gathered are protected by banks and interest at a specific rate is given on the
measure of stores, the deposits are recipient since they get a specific rate of enthusiasm on stores,
other than the securely of their sum then again, the general public can earn some cash on the sum
gathered as stores. To suit the various necessities of the investors the general public has
introduced different plans. They are as follows:
1. Savings Deposits
2. Current Accounts
3. Fixed deposits
4. Recurring deposits
5. kemegowdaYojana Nidhi
6. Pigmy deposits.

Lending of the society

Society gives advance to developing Building and house property and lending advances/
extension/ buy upto Rs.15,00,000 the rate of interest charged is 13 percent.
The general public gives the advance on the without a doubt of gold decorations for a maximum
measure of Rs.1,00,000/ - the advance is given based on 65% of the assesses estimation of the
gold. The rate of interest charged is 11% the amount ought to be reimbursed inside a half year on
day by day fundamental.
Vehicle credit is given by the general public on the clearly of vehicles, for 2 wheelers and 3
wheelers the advance sum will be 80% of the on the road esteem and 4 wheelers the advance
sum will be 75% of the on the road value with 13% rate of enthusiasm for both repayable in 40
and 60installment respectively. The society gives advance on the most likely of settled resources
uptoRs.10,00,000 with a rate enthusiasm of 13% and it gives advance on definitely of
compensation of its staff the financing cost is 15% and it gives advance to its member on the
essential of stores at 12% interest.
1.4 VISION, MISSION AND QUALITY POLICY
Vision
 To build up a solid, reasonable monetary framework utilizing monetarily stable
market instruments.
 Serving to the underserved and making an incentive for the individuals.
 To make Public Prosperity by offering monetary administrations to all gathering
of individuals and offering parallel chance to all to carry on with an enhanced life
by money related enablement and strengthening.
 To make budgetary administrations all around accessible.
Mission
 Focus on tending to part needs.
 .Ensure that all benefits are controlled justly by individuals and for their advantage.
 To substantiate ourselves as best icon with the assistance of one of a kind administrations
and guarantee the money related improvement of autonomous partners.
 Enhance availability of monetary administrations.

Quality policy
Kemepegowda credit co-operative society is involved to give a various deposit scheme and loans
structure to its customers and its members and increasing a consumer loyalty by giving different
deposits and loan services. Its primary objective is to compete with other co-operative societies
by giving different financial services to customer

1.5 PRODUCT/SERVICE PROFILE

1. Deposit product:-
 Savings deposits
 Current account
 Fixed deposits
 Locker facility
 Pigmy deposits
 2. Lending product:-
 Vehicle loan
 Business loan
 Loan on Salary
 Loan on Fixed deposit
 Gold loan
 Building construction / Expansion / purchase loan
 Loan on Recurring deposit.
 Loan on pigmy deposits.

1.6 INFRASTRUCTURE FACILITY

 society have extremely tremendous and all around outfitted building
 it has following foundation office and representative welfare office for workers, for
example, medical facility, refreshment, education allowances
 automated participation for all workers
 centralized air condition available

1.7 COMPETITOR’S INFORMATION

The main competitors of kemepegowda credit co-operative society which has given below

 The Kammavari Credit Co-operative Society Ltd. was establish in the year 1993. The
general public was enrolled under the Karnataka State Co-Operative Societies Act 1959
and authorized by the Registrar of Co-Operative Societies, Bangalore. The Society has
initiated its exercises on 16.02.1994 with little offer Capital of Rupees 11.20 lacs and
individuals quality of 590. Our due regards to every one of the individuals from our
parent foundation M/s. Kammavari Sangham, Bangalore who have conceptualized to
frame this establishment. A considerable lot of them on the whole attempted to get this
general public in to a genuine action. The question of beginning this Credit Co-Operative
Society is to give adequate credit office and to the welfare of all Members.
  The goal of building up the Sri niddhi credit co-operative society. Credit Society Ltd. was
to oblige the necessities of nearby individuals and assistance of the target/standards of co-
activity. In view of this target some social laborers met up and enlisted the Sri niddhi
credit co-operative society. Credit Society Ltd on 21.12.1993 at Bangalore with the help
of nearby brokers and others. The working of itsbranch began on the on 09.03.1994 of
every a leased working at Bangalore. Sri niddhi credit co-operative society. Credit
Society Ltd gained its possessed premises, Since then the Sri niddhi credit co-operative
society. Credit Society Ltd is gaining enduring ground the credit of which goes to our
individuals' clients, representatives and well wishers. The Society was begun with a little
capital of Rs.4 lacs which now remains at Rs.1.65 crores.

1.8 SWOT ANALYSIS

It is useful technique to identify the internal strength and weakness as well as external threats
and opportunity.

STRENGTH:
 Good loan cost.
 Skilled, submitted and dedicated staff.
 Experience administration staff.
 Great reputation and positive picture as they are working over 15 years

WEAKNESS:
 The operations are manual which is time consuming.
 They are not geographically expanded.

OPPORTUNITY:
 Society has potential to expand geographically.
 Society is also potential for new types of loan to attract and increase customer database.
THREATS:
 competition are expanding in micro finance institution.

1.9 FUTURE GROWTH AND PROSPECTS

Kemepegowda credit co-operative society has decided to provide technology based services to
customer and its members. Their main intention is to these services should be fully utilized by all
their members and they have decided to provide further facility to its employees such as medical
allowances to the employees and to their family members.
 CHAPTER 2
CONCEPTUAL BACKGROUND AND LITERATURE REVIEWS

2.1 THEORETICAL BACKGROUND OF THE STUDY

MEANING OF LOANS AND ADVANCES
The term 'loan' refers to the total amount gained by one individual from another. The amount is
in the idea of credit and refers to the total paid to the borrower. As needs be from the view
motivation behind borrower, it is 'getting' additionally, from the view reason for society, it is
'advancing'. Credit may be regarded as 'credit' permitted where the money is disbursed and its
recovery is made on a later date. It is a commitment for the borrower. While giving advances,
credit is given for an unmistakable reason and for a predestined period. Interest is charged on the
advance at concurred rate and time of portion.
'Advances' on other side, is a 'credit facility' allowed by the society. Society sanction loans for
short term purpose, for example, purchasing of goods traded and meeting other short term
liabilities.

PRINCIPLE OF LENDING
 Liquidity: Liquidity is a basic rule of lending. Bank loan for short periods essentially in
light of the fact that they lend the money which can be drawn at whatever point by
investors. They, in this way, advances on the security of such resources which are viably
attractive and convertible into cash at a short notice.
 Safety: The security of asset loaned is another standard of loans. Safety suggests that the
borrower should have the ability to repay the credit and interest on time at consistent time
without default. The repayment of the credit depends on the scheme of security, the
character of the borrower, his capacity to repay and his monetary standing.
 Diversity: In picking its hypothesis portfolio, a business bank should to take after the rule
of diversity. It should not put its surplus funds in a particular kind of security anyway in
different sorts of securities. It should to pick the shares and debentures of different kinds
of enterprises approved in different areas of the country. A comparable rule should to be
taken on account of state governments and neighborhood bodies. Extension goes for
constraining risk of the investment portfolio of a bank.
  Stability: Another principal of a bank's venture arrangement should to be to place assets
into those stocks and securities which have a high state of strength in their expenses. The
bank can't hold up under the cost of any loss on the estimation of its securities. It should,
thusly, put it supports in the offers of recognized organization where the probability of
diminishing in their cost is remote.
 Profitability: This is the prime guideline for making investment by a bank. It must gain
satisfactory benefit. It should, as needs be, place assets into such securities which was
sure a reasonable and stable benefit for the advantages contributed. The acquiring
capacity of securities and shares depends on the interest rate and the profit rate and the
tax breaks they convey on.

FORMS OF LOANS AND ADVANCES

 CASH CREDIT: Cash credit is a course of action by which the customer is permitted to
acquire cash up to a specific limit of known as the 'money credit restrict'. Commonly the
borrower is required to give security in the pledge or hypothecation of substantial
securities. Here and there, this facility is likewise given against personnel security.

 OVERDRAFT: Overdraft is a course of action between a banker and his customer by

which the latter is permitted to withdraw below and above his credit adjust in the current
account up to a certain limit. This is just an temporary settlement typically granted
against security. The borrower is allowed to draw and repay any number of times, gave
the aggregate amount overdrawn does not exceed as far as possible. The interest is
charged only on the amount drawn and not for the entire amount sanctioned.

 LOAN: The banker lend a huge amount for a specific period at a agreed rate of interest
The whole amount is paid on an event either in cash or by credit out his current account
which he can draw at anytime. The interest is charged for whole amount sanctioned
whether he withdraw the cash from his account or not. The loan might be reimbursed in
installment or at the expiry of a specific period. The advance might be made with or
without security.
 PURCHASING AND DISCOUNTING BILLS: Banks allow advances to their customers
by discounting bills of exchange. The net sum, after deducting the sum of
interest/discount from the sum of the installment, is credited in the account of the
customer. In this type of loaning, the interest is received by the banker inadvance.

PROCEDURE FOR GRANTING LOAN

Following are the process followed by society for granting the loans
1. Eligibility: The qualification to take loan is member from the society.
2. Fill the application form
3. Content of loan application form : it consist of 4 phases
a. Bio data : The bio-data of the applicant and bailee should to be gathered. it must
be filled with name of the applicant and bailee, address, age, and other personnel
details. If the applicant is member from the other society or not if any loan is
taken from different sources time of loan and so on.
b. Particular of the applicant : The particulars of the applicant comprise of two
stage one should to be filled by the candidate and other stage should to be filled
by the staff. This section contains the particulars like name of shareholder in the
applicant’s family type of advances and so on.
c. Office note : It contains date of enrollment of the applicant and bailee, if any
penalty paid is post if bailee has paid any penalty on the advance sum is the past
will be past if any loan taken and not reimbursed is time and so on.
d. Particulars of bailee : The particulars of the bailee segment comprise of the two
phases, one should to be filled by the applicant, in regards to particulars of bailee
and other stage should to be filled by the office staff this segment contains the
particulars like name of bailee family sort of loan taken by the bailee.
4. Enrollment of application form
5. Annexure with application : salary certificate of the employee
 LOANS LENDING BY THE SCOIETY
1. Vehicle loan
2. Business loan
3. Loan on Salary
4. Loan on Fixed deposit
5. Ornament loan
6. Home loan
7. Loan on Recurring deposit.
8. Loan on pigmy deposits.

1. Vehicle loan: Vehicle advance is given by the society on the Vehicles for bikes and
three wheelers the loan sum will be 80% of the road value and 4 wheelers the loan sum
will be 75% of the road value and 13% rate of interest for both repayable in 40 and 60
installment individual
Following are the document necessary for granting vehicle loan
 Applicant must be member in the society
 Salary certificate of last 6months
 Applicant must submit all orginal document to society for verification with
Xerox copy

 Pre sanction inspection

2. BUSINESS IMPROVEMENT LOAN: Society gives loan to enhance the business of

individuals. The minimum of credit is Rs.50000/ - and maximum is Rs.3,00,000/ - with
interest charged 15%.
Following are the document necessary for granting business improvement loan
 Income tax details
 Balance sheet of previous years showing its profit
 Submit the documents like incorporation certificate, commencement certificate
3. LOANS ON SALARY: society grants the advances to the employees of society and it’s
granted based on salary of the employees interest charged is 13%
Following are the documents necessary for granting salary loan
 Salary certificate of the employee along the grantor security

4. LOANS ON FIXED DEPOSITS: The society will grants the loans on their fixed deposit
in which the amount cannot be withdrawn. So society gave this loan at the rate of interest
12% on their fixed deposit.
Following are the document necessary for granting loans on fixed deposit
 Marketability
 Liquidity
 Maturity period of fixed deposit

5. LOAN GRANTED ON GOLD ORNAMENT: The society grants gold ornaments loans
on the security of gold ornaments upto limit of 5lakhs. The loan is given at the rate of
interest charged is 11%.
Following are the document necessary for granting gold loan
 Value of the security
 Liquidity of security offering
 Voter ID

6. HOME LOAN: As the society grants loans to the borrower for purchase of home upto
limit of 15lakhs at the rate of 15%.

Following are the document necessary for granting loan

 Salary certificate of borrower of last 6months
 Marketability and liquidity of security offering
 Pre sanction inspection
7. LOANS ON RECURRING DEPOSIT: These type of loan granted on the deposit of
customer. The loan is granted based on the amount deposit and the rate of interest
charged on the deposit is 2%.

The following are the document necessary for granting loans on RD

 Value of the security offering
 Income certificate

8. LOANS ON PIGMY DEPOSIT: The customer deposit amount daily in a smaller amount.
They provided pigmy deposits members can deposit money at the door of their house.
They can also grant loan from there deposits the rate of interest charged is 13% on the
deposits.

2.2 LITERATURE REVIEW

1. Kalyankar (1983) in his research titled, "Wilful Default in Loans of Co-operative"

considered the examples in deposit, share capital, working capital, credits remarkable,
advances, over dues and recovery at the nearby level financing organization. Money
related components depends on forecasting and promote future advancement in the
exercises and strategies of the co-operative credit association were moreover considered
to take a specific progress made by Central Co-operative Bank of Parbhani District. The
examination exposed that the cropping intensity, irrigation facility and working capital of
the societies were the fundamental contemplations for clarifying over dues at essential
agricultural credit societies' level. The money related components were not accountable
for growing overdues at the borrowers' level, yet over dues were generally mounted due
to the non-fiscal variables if there ought to emerge an event of wilful defaulters.
2. Devadas (1987), in his book titled, "Co-operative Banking and Economic Development"
considered the piece of Assam Co-oprative Apex Bank Ltd. in economy of the State. He
found that lonely from filling in as a business bank it expected to discharge three distinct
cacpcities, i.e., to support fundamental recognize social requests, to go about as keeping
cash put in for basic social requests, and to hold supervision of basic social requests. He
found that bank had not capable accomplish in these three fields in view of nonattendance
of satisfactory assistance from assembly of the state.

3. Patil and Anagol commended on the priority sector advance granted by the urban
cooperative banks, Patil and Anagol suggested that the limits of amount lent by
cooperative banks should be raised and loan towards the purchase of two wheelers also
could be included. Co-operative banks should discover the motivation behind which
financial assistance is given in order to make the fund accessible just for gainful purposes
and that too for need priority sector and weaker segments. As it was discovered that
almost 33 percent of the over dues of the urban co-operative banks were represented by
priority sector, reason wise grouping of loans turn out to be exceptionally fundamental to
channelise accessible finances in a successful way. They additionally expressed that the
urban co-operative banks must capacity with a feeling of profound responsibility in
releasing their social commitments and they should give. "overriding priority" to the
reason for weaker areas, while building up their assets.

4. R.Thirunarayanan studied the extent the urban cooperative banks in Tamil Nadu could
rise up to the credit needs and their loan portfolios, their progress and the reason for their
slow progress and the problems experienced by them. He discovered some slackness in
the move of profitable loaning from utilization purposes lending. It was because of
misplaced emphases on security and furthermore absence of ability to choose the
appropriate and meriting case: This could be set directly through teaching the individual
from the banks to obtain more for beneficial purposes and avoid utilization advance for
inefficient consumption. He additionally proposed an extensive part instruction plot
covering the individuals from the agreeable urban banks in the state.
5. D.Krishna analyzed the management of funds in urban cooperative banks, and concluded
that in order to really develop a debt market, as a part of the monetary policy, a system of
primary dealer is being introduced. The primary dealers are imagined not to be the last
speculators but rather instituation with financial capabilities and abilities to offer in the
primary auction and hold the securities till they can approach the securities in the
secondary market. With these advancements in the offering, the urban cooperative banks
will have enough access and chances to work in the securities market. It this respect, the
cooperative bank of India had been as the apex level of banking orgainsation of the
helpful segment. It is anticipating the permit from the RBI. When it become functional,
the bank will be in a position to set up the plans for improving profits to cooperatives for
their speculations."

6. Shah (2007) led a contextual analysis of Sangli and Buldana District Central Cooperative
Banks with respect to the financial strength of credit co-operative in Maharashtra and
discovered NPAs or over dues as the principle factors for weakening in strenght of these
banks. The examination uncovered that both these banks showed a confirmed decrease in
their money related wellbeing and economic reasonability in the aimd of the late nineties
as against the mid nineties time allotment.

7. A research in particular "Recovery Performance of DCCB, Dharwad", was undertake by

Vaikunthe L.D.2 in 1988. Keeping at the top of the priority list the ultimate objective to
take a bank's recovery execution, researcher the has coordinated an examination with
180 getting families, who were browsed different farmers gathering such enormous;
medium and little farmer and they were tended to about the reason behind default in
repayment of credit. The examination revealed the way that crop disappointment was the
standard intention for the mounting overdues.
8. Katar Singh (2000) examined the performance of credit co-operatives in India. He opines
that to empower credit co-operative to survive and flourish in the years to come, a few
hierarchical and administration changes are required. He reasons that the credit co-
operative must be allowed to bear on their tasks absolutely on business lines and matters,
for example, fixation of interest rate, determination of unit expenses and sizes of fund,
usual way of doing things of recovery, hring and terminating employees and so on
should to be totally left to them.

9. Mayilsamy,R (2008) examine the loan activities in district central co-operatice banks in
India. He has watched that any financial institution' including DCCBs carries on business
out of assets, which are gathered as deposits or borrowings from higher financial
agencies. He reasoned that the productivity of managing an banking institution as a
financial intermediaries depends, as it were, on auspicious recuperation of advances.

10. Lakshmanan,C and Dharmendran,A (2007) examined the effect of Non Performing
Assets (NPAs) on execution factors in Chennai Central Co-operative Bank. They
assessed execution variable, for example, net benefit, theory, legal costs and spread. They
abserved aftereffects of NPAs on the entire above execution variable were negative and
irrelevant at 5 percent level in all the condition. They assumed that the intense
administration of NPAs is essential to fortify the money related position of the bank.

11. Fulbag Singh and Balwinder Singh (2006) analyzed the assets administration in the
Central Co-operative Banks in Punjab. They have abserved that higher degree of owned
fund in the working capital of the bank and the concerned showed up by the bank in
periodical recovery of credits achieved an extended financial edge of central co-operative
banks in Punjab. They concluded that less dependence on the new outside assets helped
these banks in extending their budgetary edge.
12. Oliver Bright,A (2005) has analyzed the role of Kanyakumari District Central Co-
operative Bank (KDCCB) in Tsunami Credit. He abserved that DCCBs allow loans and
advances to the ruraltenants both for agriculture and non agriculturepurposes. However,
the infrastructurehelps are completely neglected by them. He has proposed that the
DCCBs must distinguish the investment portfolios for credit plan.

13. Rais Ahmad and Nasrullah Bhat (2004) examined the recovery performance of District
Co-operative Banks in Jammu and Kashmir. They found that amid every during every
years under investigation i.e. from 1994-95 to 2000-01; overdues were more noteworthy
than the owned funds of focal co-operative banks. They have observed that the primary
reason behind the collection of overdues is the damaged lending policies and
methodology, unrealistic sizes of finance and less than ideal due date for reimbursement
of credits, poor supervision over societies, absence of a proper atmosphere for recovery
including exclusive and developing support of defaulters by the administration experts.

14. SINGH (1976) conducted a case study on distribution and utilization of co-operative
credit in Lucknow district. As to measure of credit advanced to the farmers of various
groups, it was oberserved that a noteworthy offer of total advances went to huge farmer.
This study additionally demonstrates that the extensive size farmer used their borrowed.

15. A study on "Over dues in Co-operatives: A Contextual study in Andhra Pradesh" by

Reddy B.R. furthermore, Laxminarayana was avaliable in 1996. It depicted that
possibility and autonomy could be conveyed on to Co-operative just by receiving a more
master approach in the granting and recovery of various loans. The author closed by
communicating that Co-operative should function as viable strength units, inspiration by
a social reason in light of the fundamental guidelines of collaboration.
16. SINGH (1976) conducted a contextual study distribution and utilization of co-operative
credit in Lucknow district. As to measure of credit advanced to the farmers of various
size groups, it was observed that a noteworthy of total advances went to large farmer.
This examination additionally demonstrates that the large size farmer used their
borrowed.

17. SWIDHA and CHAND (1981), analyzing the pattern of credit distribution and overdues,
have found that there was inverse relationship between the overdues and credit advanced
to different farm categories. They have additionally discovered that the small part of the
farmer were non-wilful defaulters though a large portion of the medium and substantial
farmer were wilful defaulters. They have proposed that keeping in mind the end overdues
of small farmer, their wage shoul to be expanded through extra investment by method
cultivation while the over dues could be lessened by making strict move against them.

18. LAL and LAVANIA (1986) have found that 78.18 percent of the total co-operative
credit was utilized for productive and the rest 21.82 percent for unproductive purposes.
The credit use on unproductive purpose diminished with the expansion in cultivate
measure which showed that large cultivators used the most high level of credit for
beneficial purposes.

19. PANDEY (1977) in his study found that advances were issued for the most part without
keeping in the mind recapacity limit of the borrowers and were not appropriately
administered by the co-operative supervisiors' subsequent in the redirection of the
advances for unproductive purpose and gathering of over dues.
20. Bhaskaran and Josh (2000) accomplished that the recovery execution of co-operative
credit organizations proceeds to unsatisfactory which adds to the development of NPA
even after the establishment of prudential directions. They proposed administrative and
technique answers for make co-operative credit foundations more successful, beneficial
and productive association tuned in to competitive commercial banking.
 CHAPTER 3
RESEARCH DESIGN

3.1 STATEMENT OF PROBLEM

Loan is the one of the major source of finance to common man. The society advances the amount
in various ways such as vehicle loan, gold loan, business loan, home loan, etc. The society
follows the different procedure for granting different kinds of loans and advances. In order to
know the how the amount is disbursed and recovered from customer and the rate of interest
charged on various types of loans and advances these study is undertaken.

3.2 NEED FOR STUDY

As the study undertaken in kemepegowda credit co-operative society ltd. One of the main
functions of the society is accepting deposit and lending the amount to the borrower and the
benefit is depends on core function of the society.

3.3 OBJECTIVES
 To study various loans and advances provided by kemepegowda credit co-operative
society.
 To assess the performance of different kinds of loans and advance offered by society.
 To assess the performance of recovery on various types of loans and advances.

3.4 SCOPE FOR STUDY

This study is related to kemepegowda credit co-operative society pvt ltd, Bangalore. The study is
conducted to know the lending practice and position of loans and advances offered by the
society. To analyze the various types of loans and advances disbursed and recovery of past five
years data
3.5 RESEARCH METHODOLOGY
The process used to build up information and data to clear up on decisions. The approach might
be, for example, publication research, interview, reviews and other research frameworks, and
could consolidate both present and recorded information.
This study is based on analytical research in which information is collected to make critical
evaluation of loans and advances. The research is conducted based on primary as well as
secondary data.

PRIMARY DATA: The first hand data is directly collected through the CEO of society about
how much interest have been charged on various loans and other relevant information.

SECONDARY DATA: The data have been collected through loan department of past five years
data.

3.6 LIMITATION
 The study depends on information of recent 5 years as it were
 The study is only concentrated only on loans and advances not on deposits and other
function of the society
 The analysis of financial statements has not been carried out during the study as the
company has not disclosed the annual report which is confidential.
3.7 CHAPTER SCHEME

CHAPTER 1 Introduction, Industry profile and company profile: Promoters,

vision, Mission & Quality Policy. Products / services profile areas of
operation, infrastructure facilities, competitors’ information, SWOT
Analysis, Future growth and prospects.
CHAPTER 2 Theoretical background of the study, Literature review with research
gap
CHAPTER 3 Statement of the problem, Need for the study, Objectives, Scope of
the study, Research methodology, Hypotheses, Limitations, Chapter
scheme.
.CHAPTER 4 Analysis and interpretation of the data- collected with relevant tables
and graphs. Results obtained by the using statistical tools must be
included.
CHAPTER 5 Summary of findings, Conclusion and Suggestions
 CHAPTER 4
ANALYSIS AND INTERPRETATION

1. LOANS ON SALARY

Table 4.1: Table showing disbursement of loans on salary

Year Disbursement Increase/decrease

2012-13 2187688 ---
2013-14 1876350 -14.23%
2014-15 2254950 20.17%
2015-16 2355670 4.46%
2016-17 2642750 12.18%

Analysis:

The above table the analysis is done with regard to loans on salary disbursal by
kemepegowda credit co-operative society ltd for past four years. The disbursal of the loan
is high during the year 2014-15 which amounts to Rs. 2254950/- which is 20.17% more
than the previous year. The lowest being in the year 2013-2014, which is -14.23%
compared to the previous year. It has been observed that during the year 2014-15 the
highest loans on salary is disbursed amounting to Rs. 2254950/-
 Graph 4.1: Graph showing disbursement of loans on salary

Disbursement of loans on salary

30.00% 20.17%
increase/decrease

20.00% 12.18% 2013-14

percentage

10.00% 4.46% 2014-15

0.00% 2015-16
2013-14 2014-15 2015-16 2016-17 2016-17
-10.00%
-14.23%
-20.00%
year

Interpretation:
In the above graph as we can interpret the loans on salary disbursed by the kemepegowda
credit co-operative society ltd., there is slight fluctuation in every year. In the 2014-15
there is more demand for loans on salary as compared to other years. On an average the
loan disbursed by the society in the previous four years amounts to Rs2282430. /-. it is
necessary to concentrate on disbursal on loan on salary as the interest rate is minimal
when compared to other types of secured loans.
 Table 4.2: Table showing recovery of loans on salary

Year Recovery Increase/decrease

2012-13 1759125 ---
2013-14 1285950 -26.89%
2014-15 2457250 91.08%
2015-16 2198564 -10.52%
2016-17 2350256 6.89%

Analysis:

The above table demonstrates the recovery of loans on salary in the past four years. The
loans on salary recovery is being the most astounding in the year 2014-15 which add up
to Rs. 2457250/ - The lowest recovery sum has been recorded amid the year 2013-14
which adds up to Rs. 1285950/ -. However, it can likewise have been watched that there
is change in consistently. The recovery sum amid the year 2014-15 that adds up to Rs.
2457250/ - which is around 91.08% higher than the earlier year
 Graph 4.2.: Graph showing recovery of loans on salary

Recovery of loans on salary

percentage increase/drecease 100.00%

91.08%

80.00%
60.00% 2013-14
40.00% 2014-15
20.00% 6.89%
2015-16
0.00% 2016-17
-20.00% -10.52%
-40.00% -26.89%
year

Interpretation: It is vital for any financial institution to recovery the loans and salary on time. It
is discovered that the recovery of loans on salary has been conflicting during the study. The
execution of the recovery of loans on pay has been diminished during the past four years. There
is a significant increment in the recovery of advance in the year 2014-15. The recovery of the
loans would enhance the liquidity of the society. This would add to the more loans disbursals or
some other types of ventures and to benefit. The liquidity of the society would likewise add to
the smooth working of the general public.
2. MORTGAGE LOAN

Table 4.3: Table showing the disbursal of mortgage loan

Year Disbursement Increase/decrease

2012-13 7499590 ---
2013-14 5769005 -23.07%
2014-15 7659441 32.76%
2015-16 5616918 -0.55%
2016-17 10112798 80.04%

Analysis:

In the above table we found that home loan advance dispensed by Kempegowda Credit
Cooperative Society for the past four years. We can break down that the disbursal of
mortgage loan credit is in great position. The disbursal of the mortgage loan is high amid
the year 2016-17 which adds up to Rs. 10112798/ - which is 80.04% more than the earlier
year. The most minimal being in the year 2013-14, which is - 23.07% contrasted with the
earlier year. This add up to Rs. 5769005/ -.
 Graph 4.3: Graph showing disbursal of mortgage loan

Disbursement of mortgage loan

100
80.04
increase/decrease 80
60
percentage

32.76 2013-14
40
2014-15
20
2015-16
0
-20 2013-14 2014-15 -0.55
2015-16 2016-17 2016-17

-40 -23.07
year

Interpretation:

In above graph it has been found that there is less disbursal of mortgage loan in the year
2013-14. The society need to concentrate on disbursal of mortgage loan as there is
demand for mortgage loan. It is secured loan and based on the security the loans are
sanctioned.
 Table 4.4: Table showing the recovery of mortgage loan

Year Recovery Increase /decrease

2012-13 1759125
2013-14 1285950 -36%
2014-15 2457250 47.66%
2015-16 2198564 11.766%
2016-17 2350256 6.45%

Analysis:

The table shows that the mortgage loan for the past four previous years. The loan is being
recovered high during the2014-2015 which amounts to 2457250, of 47.66% and they by
the low recovery in the year 2013-2014 which amounts to 128590 of -36%.
 Graph4.4: Graph showing the recovery of mortgage loan

Recovery of mortgage loan

60
increase/decrease
40 2013-14
percenatge

20 2014-15
0 2015-16
2013-14 2014-15 2015-16 2016-17
-20 2016-17

-40
year

Interpretation:

The co-operative society is one of the significant to recover the loans and advances on
time. The one of the necessary of the society is to recover the mortage loan on time It is
found that the recovery of business loan less. But, the performance of the recovery has
been improved during the previous two years. There is a substantial increase in the
recovery of loan in the year 2014-15. The recovery of the mortgage loans would depend
on the growth the society.
3. VEHICLE LOAN

Table 4.5: Table showing vehicle loan disbursal.

Years Disbursement Increase/decease

2012-13 89521 ---
2013-14 83343 -6.90%
2014-15 98845 18.60%
2015-16 86390 -12.60%
2016-17 98500 14.02%

Analysis:

In the above table we would try to analyze the vehicle loan disbursed by Kempegowda
Credit Cooperative Society for the previous four years. We can analyze that the disbursal
of vehicle loan is inconsistent. The disbursal of the loan is high during the year 2014-15
which amounts to Rs. 98845/- which is 18.60% more than the previous year. The lowest
being in the year 2015-16, which is -12.60% compared to the previous year. This amount
to Rs. 86390/-. Overall it is observed that the society is not much concentration on
vehicle loans.
 Graph 4.5: Graph showing disbursal of vehicle loan

Disbursement of vechicle loan

30.00%
Percentage Increase /

18.60%
20.00% 14.02%
2013-14
Decrease

10.00%
2014-15
0.00%
2015-16
2013-14 2014-15 2015-16 2016-17
-10.00% -6.90% 2016-17
-20.00% -12.60%
Year

Interpretation:

From the above graph we can interpret that the vehicle loan disbursal is very minimal in
the society. On an average the vehicle loan disbursed by the society in the previous four
years amounts to Rs. 91770/-. This is because the vehicle loan is an unsecured loan and
the asset has got depreciation value. Thus the society is not concentrating on the vehicle
loan. But, it is necessary to concentrate on disbursal on vehicle loan as the interest rate is
high when compared to other types of secured loans. This would increase the profitability
of the society in the long run as the spread in the interest rate of deposits and vehicle is
high.
 Table 4.6: Table showing the recovery of vehicle loan

Years Recovery Increase/decrease

2012-13 72483 ---
2013-14 56287 -22.34%
2014-15 45050 -19.96%
2015-16 86450 91.89%
2016-17 112432 30.05%

Analysis:

The above table shows the recovery of vehicle loan in the previous four years. The
vehicle loan recovery is being the highest in the year 2016-17 which amount to Rs.
112432/-. The lowest recovery amount has been recorded during the year 2014-15 which
amounts to Rs. 45050/-. But, it can also have been observed that there is substantial
increase in the recovery amount during the year 2015-16 that amounts to Rs. 86450/-
which is around 91.89% higher than the previous year.
 Graph 4.6: Graph showing the recovery of vehicle loan

Peercentage increase/decrease Recovery of vehicle loan

91.89%
100.00%
80.00%
60.00% 2013-14
30.05%
40.00% 2014-15
20.00% -22.34% -19.96% 2015-16
0.00% 2016-17
-20.00% 2013-14 2014-15 2015-16 2016-17

-40.00%
year

Interpretation:

It is very important for any financial institution to recover the loans and advances on
time, as there is time value for money. The rupee today is not the a rupee tomorrow. It is
found that the recovery of vehicle loan has been inconsistent during the study. But, the
performance of the recovery has been improved during the previous two years. There is a
substantial increase in the recovery of loan in the year 2015-16. The recovery of the loans
would improve the liquidity of the society. This would contribute to the more loan
disbursals or any other forms of investments and to profitability. The liquidity of the
society would also contribute to the smooth functioning of the society.
4. GOLD LOAN

Table 4.7: Table showing disbursement of gold loan

Years Disbursement Increase/decrease

2012-13 28593600 ---
2013-14 48128900 68.32%
2014-15 52267236 8.59%
2015-16 69449870 32.87%
2016-17 23054264 -21.71%

Analysis:

We can analyze that the disbursal of gold loan is inconsistent. The disbursal of the loan is
high during the year 2014-15 which amounts to Rs. 98845/- which is 18.60% more than
the previous year. The lowest being in the year 2015-16, which is -12.60% compared to
the previous year. This amount to Rs. 86390/-.
 Graph 4.7: Graph showing disbursement of gold loan

Disbursement of gold loan

80.00%
increase/decrease 60.00%
percenatge

40.00% 68.32%
20.00% 32.87%
8.59%
0.00%
-21.71%
-20.00% 2013-14 2014-15 2015-16 2016-17
-40.00%
year

Interpretation:

From the above graph we can interpret that the gold loan disbursement is average in the
society. On an average the Business loan disbursed by the society in the previous four
years amounts to Rs.48225067 /-. This is because the gold loan is a secured loan. Thus
the society need much concentration on the gold loan. But, it is necessary to concentrate
on disbursal on gold loan as the interest rate is high when compared to other types of
secured loan.
 Table 4.8: Table showing recovery of gold loan

Years Recovery Increase/decrease

2012-13 19292684 ---
2013-14 34855114 80.66%
2014-15 22924668 -34.22%
2015-16 12294326 -46.37%
2016-17 14651559 19.17%

Analysis:

The table shows the performance of gold loan recovery for the previous four years. The
gold loan recovery is being the highest in the year 2013-14 which amount to Rs.
34855114/-. The lowest recovery amount has been recorded during the year 2015-16
which amounts to Rs. 12294326/-. But, it can also have been observed that there is
substantial increase in the recovery amount during the year 2016-17 that amounts to Rs.
14651559/-.
 Graph 4.8: Graph showing recovery of gold loan

Recovery of gold loan

increase/decrease
100.00%
percentage

50.00% 80.66%
19.17%
0.00%
-34.22% -46.37%
2013-14 2014-15 2015-16 2016-17
-50.00%
year

Interpretation:

The financial institution recovers one of the significant It is found that the recovery of
gold loan has been decreased during the study. The society need to concentrate on
recovery of gold loan. There is a slight increase in the recovery of loan in the year 2016-
17. The recovery of the loans would improve the liquidity of the society. This would
contribute to the more loan disbursals or any other forms of investments and to
profitability. The liquidity of the society would also contribute to the smooth functioning
of the society.
5. BUSINESS LOAN:

Table 4.9: Table showing disbursal of business loan

Year Disbursement Increase/decrease

2012-13 72328 ---
2013-14 68343 5.50%
2014-15 86390 26.40%
2015-16 86390 0%
2016-17 98553 14.07%

Analysis:

From the above table we can analyze the Business loan distributed by kemepegowda
Credit cooperative society for the preceding four years. We can investigate that the
disbursal of Business credit is differing. The disbursal of the loan is high during the year
2014-15 which amounts to Rs. 86390/- which is 26.40% more than the previous year.
The lowest being in the year 2015-16, which is 0% compared to the previous year. This
amount to Rs. 86390/-.From the analysis we can analyze that society is not much
concentration on Business loan.
 Graph 4.9: Graph showing disbursal of business loan

Disbursement of business loan

percentage increase/decrease 30.00% 26.40%

25.00%
20.00% 14.07% 2013-14
15.00%
2014-15
10.00%
5.00% 0% 2015-16
0.00% 2016-17
-5.00%
-5.50%
-10.00%
years

Interpretation:

Since the above graph interpret that the Business loan disbursal is average in the society.
On an average the Business loan distributed by the society in the past four years adds up
to Rs.84919/ - Business loan is a secured loan. In this way the society needs much
addiction on the business loan, as the financing cost is high when contrasted with
different sorts of secured loan. The society need to concentrate on Business loan
 Table 4.10: Table showing recovery of business loan

Year Recovery Increase/decrease

2012-13 55428 ---
2013-14 46275 -16.51%
2014-15 45985 -0.62%
2015-16 75254 63.64%
2016-17 65489 12.97%

Analysis:

The table shows the recovery of Business loan for the previous four years. The Business
loan recovery is raised in the year 2015-16 which indicate Rs. 75254/ - The slightest
recuperation aggregate has been recorded within the year 2014-15 which means Rs.
45985/ -. In any case, it can similarly have been watched that there is noteworthy change
in the recuperation entirety within the year 2015-16 that indicates Rs. 75254/ - which is
around 63.64% higher than the previous year.
 Graph 4.10: Graph showing recovery of business loan

Recovery of business loan

increase/decrease 80.00% 63.64%

60.00%
percentage

2013-14
40.00% 2014-15
12.97%
20.00% 2015-16
0.00% 2016-17
-0.62%
-20.00% -16.51%
year

Interpretation:

The co-operative society is one of the significant to recover the loans and advances on
time. It is found that the recovery of business loan less. But, the performance of the
recovery has been improved during the previous two years. There is a substantial increase
in the recovery of loan in the year 2015-16. The recovery of the business loans would
depend on the growth the society. improve the liquidity of the society. The solidity of the
society would also contribute to the smooth functioning of the society.
6. HOME LOAN
Table 4.11: Table showing disbursement of home loan

Years Disbursement Increase/decrease

2012-13 150000 ---
2013-14 120000 -20%
2014-15 98946 -17.54%
2015-16 985900 8.96%
2016-17 1058500 7.36%

Analysis:

In the above table we would try to analyze the home loan disbursed by Kempegowda
Credit Cooperative Society for the previous four years. We can analyze that the disbursal
of home loan is in fluctuation. The disbursal of the home loan is high during the year
2015-16 which amounts to Rs. 985900/- which is 8.96% more than the previous year.
The lowest being in the year 2013-14, which is -20% compared to the previous year. This
amount to Rs. 120000/-. Overall it is observed that the society is not much concentration
on home loans.
 Graph 4.11: Graph showing disbursement of home loan

Disbursement of home loan

15%
8.96%
10% 7.36%
increase/decrease

5%
percenatage

0% 2013-14
-5% 2013-14 2014-15 2015-16 2016-17 2014-15
-10% 2015-16
-15% 2016-17
-20% -17.54%
-20%
-25%
year

Interpretation:

From the above graph we can interpret that the home loan disbursement is average in the
society. On an average the home loan disbursed by the society in the previous four years
amounts to Rs.565836 /-. This is because the home loan is a secured loan. Thus the
society need much concentration on the home loan. But, it is necessary to concentrate on
disbursal on home loan as the interest rate is high when compared to other types of
secured loan.
 Table 4.12: Table showing recovery of home loan

Years Recovery Increase/decrease

2012-13 74582
2013-14 90000 20.67%
2014-15 85050 -5.5%
2015-16 75498 -11.23%
2016-17 112432 48.92%

Analysis:

The above table shows the recovery of home loan in the previous four years. The home
loan recovery is being the highest in the year 2016-17 which amount to Rs. 112432/-. The
lowest recovery amount has been recorded during the year 2015-16 which amounts to Rs.
75498/-. But, it can also have been observed that there is increase and decreasing in
recovery of home loan in yearly wise.
 Graph 4.12: Graph showing recovery of home loan

Recovery of home loan

60.00%
48.92%
increase/decrease 50.00%
40.00%
percenatge

30.00% 2013-14
20.67%
20.00% 2014-15
10.00% 2015-16
0.00% 2016-17
-10.00% 2013-14 2014-15 2015-16 2016-17
-5.50%
-20.00% -11.23%
year

Interpretation:

It is very important for any financial institution to recover the loans and advances on
time, as there is time value for money. The rupee today is not a rupee tomorrow. It is
found that the recovery of vehicle loan has been inconsistent during the study. But, the
performance of the recovery has been improved during the previous two years. There is a
substantial increase in the recovery of loan in the year 2015-16. The recovery of the loans
would improve the liquidity of the society. This would contribute to the more loan
disbursals or any other forms of investments and to profitability. The liquidity of the
society would also contribute to the smooth functioning of the society
7. LOAN ON RECURRING DEPOSIT

Table 4.13: Table showing disbursement of loans on recurring deposit

Years Disbursement Increase/decrease

2012-13 85241 ---
2013-14 103850 21.83%
2014-15 498502 38%
2015-16 733540 47.14%
2016-17 983634 34.09%

Analysis:

In the above table we would try to analyze the loan on recurring deposit disbursed by
Kempegowda Credit Cooperative Society for the previous four years. We can analyze
that the disbursal of loan on recurring is in good position. The disbursal of the home loan
is high during the year 2015-16 which amounts to Rs. 733540/- which is 47.14% more
than the previous year. The lowest being in the year 2013-14, which is 21.83% compared
to the previous year. This amount to Rs. 103850/-. Overall it is observed that the society
is not much concentration on loan on recurring deposit.
 Graph 4.13: Graph showing disbursement of loans on recurring deposit

Disbursement of loan on recurring deposit

47.14%
increase/decrease
50.00%
38%
34.09%
percentage
40.00%
2013-14
30.00% 21.83%
2014-15
20.00%
2015-16
10.00%
0.00% 2016-17
2013-14 2014-15 2015-16 2016-17
year

Interpretation:

From the above graph we can interpret that the loan on recurring deposit disbursement is
average in the society. On an average the home loan disbursed by the society in the
previous four years amounts to Rs.579881/-. This is because the loan on recurring deposit
is an secured loan. Thus the society need much concentration on the loan on recurring
deposit. But, it is necessary to concentrate on disbursal loan on recurring deposit as the
interest rate is high when compared to other types of secured loan.
Table 4.14: Table showing recovery of recovery of loans on recurring deposit

Years Recovery Increase/decrease

2012-13 73944 ---
2013-14 88994 20.35%
2014-15 232889 16.16%
2015-16 509514 18.77%
2016-17 786545 54.37%

Analysis:

The above table shows the recovery of loans on recurring deposit in the previous four
years. The recovery is being the highest in the year 2016-17 which amount to Rs.
786545/-. The lowest recovery amount has been recorded during the year 2014-15 which
amounts to Rs. 232889/-. But, it can also have been observed that there is substantial
increase in the recovery amount during the year 2015-16 that amounts to Rs. 509514/-
which is around 18.77% higher than the previous year.
 Graph 4.14: Graph showing recovery of loans on recurring deposit

Recovery of loans on recurring deposit

54.37%

increase/decrease
percenatge 60.00%

40.00% 2013-14
20.35% 18.77% 2014-15
16.16%
20.00%
2015-16
0.00% 2016-17
2013-14 2014-15 2015-16 2016-17
year

Interpretation:

It is very important for any financial institution to recover the loans and advances on
time, as there is time value for money. The rupee today is not a rupee tomorrow. It is
found that the recovery of vehicle loan has been inconsistent during the study. But, the
performance of the recovery has been improved during the previous two years. There is a
substantial increase in the recovery of loan in the year 2015-16. The recovery of the loans
would improve the liquidity of the society. This would contribute to the more loan
disbursals or any other forms of investments and to profitability. The liquidity of the
society would also contribute to the smooth functioning of the society.
8. LOAN ON PIGMY DEPOSIT

Table 4.15: Table showing disbursement of loans on pigmy deposit

Years Disbursement Increase/decrease

2012-13 3855300 ---
2013-14 4709250 22.15%
2014-15 1679147 -64.34%
2015-16 1950646 16.16%
2016-17 1848395 -5.24%

Analysis:
In the above table we would attempt to break down the advance on repeating store
dispensed by Kempegowda Credit Cooperative Society for the past four years. We can
break down that the disbursal of advance on repeating is in great position. The disbursal
of the home advance is high amid the year 2015-16 which adds up to Rs. 733540/ - which
is 47.14% more than the earlier year. The most reduced being in the year 2013-14, which
is 21.83% contrasted with the earlier year. This add up to Rs. 103850/ -. General it is
watched that the general public isn't much fixation on credit on repeating store.
 Graph 4.15: Graph showing disbursement of loans on pigmy deposit

Disbursement of pigmy deposit

increase/decrease 40.00%

20.00%
percentage

0.00% 2013-14
2013-14 2014-15 2015-16 2016-17
-20.00% 2014-15

-40.00% 2015-16

-60.00%
2016-17

-80.00%
year

Interpretation:

From the above graph we can interpret that the loan on Pigmy deposit disbursement is
average in the society. On an average the home loan disbursed by the society in the
previous four years amounts to Rs 2546859. /-. This is because the loan on Pigmy deposit
is a secured loan. Thus the society need much concentration on the loan on recurring
deposit. But, it is necessary to concentrate on disbursal loan on pigmy deposit as the
interest rate is high when compared to other types of secured loan.
 Table 4.16: Table showing recovery of loans on pigmy deposit

Years Recovery Increase/decrease

2012-13 2853362 ---
2013-14 4261800 49.36%
2014-15 1517047 -64.40%
2015-16 1180846 -22.16%
2016-17 1346471 14.02%

Analysis:

since table shows the recovery of loans on Pigmy deposit in the previous four years. The
recovery is being the highest in the year 2013-14 which amount to Rs. 4261800/-. The
lowest recovery amount has been recorded during the year 2014-15 which amounts to Rs.
1517047/-. But, it can also have been observed that there is substantial increase in the
recovery amount during the year 2016-17 that amounts to Rs. 1346471- which is around
14.02%.
 Graph4.16: Graph showing recovery of loans on pigmy deposit

Recovery of pigmy depsoit

60.00%
increase/drecrease
40.00%
49.36%
percenatge

20.00%
14.02%
0.00%
-22.16%
-20.00% 2013-14 2014-15 2015-16 2016-17
-64.40%
-40.00%
-60.00%
-80.00%
year

Interpretation:

It is crucial for any budgetary establishment to recover the credits and advances on time,
as there is time a motivating force for money. The rupee today isn't the a rupee tomorrow.
It is found that the recovery of Pigmy credit has been clashing in the midst of the
examination. In any case, the execution of the recovery has been upgraded in the midst of
the previous two years. There is a liberal addition in the recovery of credit in the year
2016-17. The recovery of the advances would upgrade the liquidity of the overall
population. This would add to the more propel disbursals or some different sorts of
hypotheses and to efficiency. The liquidity of the overall population would similarly add
to the smooth working of the overall society.
9. LOANS ON FIXED DEPOSIT

Table 4.17: Table showing the disbursement of loans on fixed deposit

Year Disbursement Increase/decrease

2012-13 18968767 ---
2013-14 15452950 -18.53%
2014-15 5085365 -67.09%
2015-16 14985150 19.67%
2016-17 18633916 24.34%

Analysis:
From the above table we would attempt to examine the advance on settled store
dispensed by Kempegowda Credit Cooperative Society for the past four years. We can
dissect that the disbursal of advance on settled resource is expanding step by step. The
disbursal of the credit is high amid the year 2016-17 which adds up to Rs. 14985150/ -
which is 19.67% more than the earlier year. The most minimal being in the year 2014-15,
which is - 67.09% contrasted with the earlier year. This add up to Rs. 5085365/ -. General
it is watched that the general public isn't much contemplation on advances on settled
store.
 Graph 4.17: Graph showing the disbursement of loans fixed deposit

Disbursement of loans on fixed depsoit

increase/decrease 40.00% 19.67% 24.34%

20.00%
2013-14
percentage

0.00%
2013-14 2014-15 2015-16 2016-17 2014-15
-20.00%
-18.53% 2015-16
-40.00%
2016-17
-60.00%
-80.00% -67.09%
year

Interpretation:

From the above graph we can interpret that the loan on fixed deposit disbursement is
average in the society. On an average the loan on fixed deposit disbursed by the society
in the previous four years amounts to Rs.13539345 /-. This is because the loan on fixed
deposit is a secured loan. Thus the society determined on the loan on fixed deposit. This
would increase the growth of the society.
 Table 4.18: Table showing recovery of loans on fixed deposit

Year recovery Increase/decrease

2012-13 14698725 ---
2013-14 15351925 4.25%
2014-15 4091598 73.34%
2015-16 11965120 65.80%
2016-17 15344942 22.02%

Analysis:

since table shows the recovery of loans on fixed deposit in the previous four years. The
recovery is being the highest in the year 2014-15 which amount to Rs. 409158/-. The
lowest recovery amount has been recorded during the year 2013-14 which amounts to Rs.
15351925/-. But, it can also have been observed that there is a inconsistency.
 Graph 4.18: Graph showing recovery of loans on fixed deposit

Recovery of loans on fixed depsoit

0.8 73.34%
65.80%
increase/decrease
0.6
percentage

0.4
22.02% Series1
0.2
4.25% Series2
0
2013-14 2014-15 2015-16 2016-17
year

Interpretation:

It is very important for any financial institution to recover the loans on fixed deposit on
time, as there is time value for money. The rupee today is not a rupee tomorrow. It is
found that the recovery of loan has been inconsistent during the study. But, the
performance of the recovery has been improved during the previous two years. There is a
substantial increase in the recovery of loan in the year 2015-16. The recovery of the loans
would improve the liquidity of the society. This would contribute to the more loan
disbursals or any other forms of investments and to profitability. The liquidity of the
society would also contribute to the smooth functioning of the society.
 CHAPTER 5
FINDING, SUGGESTION AND CONCLUSION

5.1 FINDINGS
1. The society is performing well in disbursement of loans on salary to the employee by
charging less interest rate to the employee. During the year 2014-15 the highest loans on
salary is disbursed amounting to Rs. 2254950/-
2. The recovery of loans on salary is fluctuation in every year due to the irregular in
payment on the loan borrowed by employees.
3. It has been found that disbursal of mortgage loan by the society is less during the year
2015-16 amounting to Rs. 5616918/-
4. The loan is being recovered high during the2014-2015 which amounts to 2457250, of
47.66% and they by the low recovery in the year 2013-2014 which amounts to 128590 of
-36%, hence the society nee to concentrate on mortgage loan
5. The disbursal of gold loan has been decreasing in the society. The disbursal of the loan is
high during the year 2014-15 which amounts to Rs. 98845/-. The lowest being in the year
2015-16, This amount to Rs. 86390/-.
6. The society is inconsistent on gold loan, the society is not more concentrated on gold loan
during 2016 the society earn the 19.17 and later on two preceding previous the society is
earning losses, so that the society need to concentrate more on gold loan.
7. The disbursal of vehicle loan has been inconsistent by the society. During the year2014-
15 which amounts to Rs. 98845/-. It is being found that the disbursal of vehicle loan is
very minimal and less concentrated during the period of the study.
8. The recovery of vehicle loan by the society has substantial increased during the past two
years. The highest vehicle loan in the year 2016-17 which amount to Rs. 112432/-. It is
also found that the recovery of the vehicle loan has been satisfactory during previous two
years. This is also one of the loans which is not concentrated by the society.
9. The disbursement of business loan by the society is high and it is varying. The disbursal
of the loan is high during the year 2014-15 which amounts to Rs. 86390/- It is being
found that disbursal of Business is very nominal and less focused during the study.
10. Business loan of the kempegowda credit co-operative society is drastically increased
during the past two years. The Business loan recovery is raised in the year 2015-16 which
indicate Rs. 75254 This is one of the loans which is not focused by the society.
11. The disbursement of home loan in the society is less due to the more amounts is needed
to grant to the borrower. disbursal of the home loan is high during the year 2015-16
which amounts to Rs. 985900/
12. The home loan recovery is being the highest in the year 2016-17 which amount to Rs.
112432/- hence society need to concentrate on home loan.
13. The recovery is being the highest in the year 2016-17 which amount to Rs. 786545/-. The
lowest recovery amount has been recorded during the year 2014-15 which amounts to Rs.
232889/-
14. The disbursal of the home loan is high during the year 2015-16 which amounts to Rs.
733540/- which is 47.14% more than the previous year. The lowest being in the year
2013-14, which is 21.83% compared to the previous year. This amount to Rs. 103850/-.
15. The discovery of loan of pigmy deposits is being high during the year 2013-2014 which
amounts to Rs 4709250 and they by the society is in inconsistency, so that the society
need to concentrate on pigmy deposit.
16. The recovery of pigmy deposit is being highest in the year 2013-14 which amount to Rs.
4261800/-. The lowest recovery amount has been recorded during the year 2014-15
which amounts to Rs. 1517047/-.
17. The disbursal loan of fixed deposit is high during the year 2016-17 which amounts to Rs.
14985150/- there is demand for loans on fixed deposit in the society so the society need
to concentrate on disbursal loans on deposit
18. The recovery is being the highest in the year 2014-15 which amount to Rs. 4091598/-.
The lowest recovery amount has been recorded during the year 2013-14 which amounts
to Rs. 15351925/-
5.2 SUGGESTION
1. The society need to provide other facility which can be educational and other loans to the
employee of the society these will increase the disbursal of loans on salary
2. The society need to establish the strict procedure in recovery of loan from the employee,
the society need charging penalty for delaying payment on loan
3. The society is in good position in mortgage loans and need to maintain the same process
in order to increase profit
4. The recapture of the mortgage loans would improve the liquidity of the society. This
would underwrite to the more loan disbursals or any other forms of savings and to
profitability.
5. The society need to establish the interest rate ataverage rate whencompared to other co-
operative society
6. The society need to concentrate on recovery of gold loan in order to improve the liquidity
position.
7. It can be suggested that the society need to concentrate on disbursal on vehicle loan as the
interest rate is high when compared to other types of secured loans. This would increase
the profitability of the society in the long run as the spread in the interest rate of deposits
and vehicle is high.
8. The recovery of the vehicle loans would improve the liquidity of the society. This would
contribute to the more loan disbursals or any other forms of investments and to
profitability.
9. The society need to focused on Business loan as the interest rate is high when compare
with other type of loans. This will make the society to increase the profit and run the
society for long run as the extent in the interest rate
10. The society need to concentrate on recovery of business loan in order to improve the
liquidity position. The society need to introduce time tenure which can be paid
periodically, Quarterly of repayment by the borrower. This would increase the recovery
of business loan
11. The society need to reduce the interest rate of home loan and when lump sum amount is
granted the society should not charge tax.
 12. The society need to reduce the EMI interest rate, time tenure if they have not paid
installment monthly then they should pay penalty so that they can recover the home loan.
13. The society is making good profit; society need more Recurring deposit for the more
liquidity purpose so that the society need carry-on same process in order to decent profit
14. The society is in good position in recovery of loans on recurring deposit still it need to
concentrate which result in increased the profitability of society
15. The society need to concentrate on pigmy deposit in order improved the position, and
loans can also be granted based on their eligibility.
16. The society need to make facility on more daily labor and other self-employee, specially
collecting money at the peak time and repay it within the stipulated time.
17. The society needs to introduce loans on various deposits. As the it will attract the
depositor of the society to borrow the loan.
18. The society need reduce interest rate, give awareness of the society in order increase
value on loans on deposit of the society.

5.3 CONCLUSION

It has been concluded that disbursement and recovery position of loans and advances of
kemepegowda credit co-operative society ltd is in good. As they providing the financial services
to the public with view to provide financial help and society earning good profit through lending
practice. The society providing various sorts of loans and advances and demand for loans are
increasing. The kemepegowda credit co-operative society ltd has providing many schemes to the
society customer as well as to the staff. The society is performing well and satisfactory. As the
society has to concentrate on recovery of various sorts of loans and they have to provide loan
with low interest
BIBLIOGRAPHY:

1. Kalyankar (1983). “willful default in loans of co-operative”. Indian co-operative

review. Volume XX no. 2 new delhi.

2. Devadas,Bhorali(1987) Co-operative Banking and Economic Development. Deep

&Deep Publication New Delhi.

3. Patil S.G. and MalatiAnagol, "Priority sector advances by UCB: Some

observation and Suggestions" Indian Cooperative Review XXVII (2) Oct 1989
pp 133-139.

4. Thirunarayanan. R, "Urban Co-operative banks lending for productive

purposes — a study" Indian Co-operative Review — XXV (4) April 1988 - pp
350-353.

5. Krishna. D, "Management of funds in Urban Cooperative Banks" The Co-

operator .300aV (2) August 1996 PP 49-50.

6. Shah, Deepak (2007), “Evaluating Financial Health of Credit Co-operatives in

Maharashtra State of India”, University Library of Munich, Germany, MPRA
Paper-3949 (July).

7. L.D. Vaikunthe, “Recovery Performance of DCCB-Dharwad”, Indian Co-

operative Review, Vol.XXVI, No.1, July 1988, pp.26-33.

8. Katar Singh, “Reforms in Credit Co-opeatives”, Kurukshetra, Vol.49, No.1, Oct,

2000, PP.16-22
9. Mayilsamy, R, “Loan Operations in District Central Co-operative Banks in
India”, Tamilnadu Journal of Cooperation, Vol.8, No.3, Jan, 2008, PP.61-65.

10. Lakshmanan,C and Dharmendran,A, “Impact of NPAs on the Performance

variables in Chennai Central Co-operative Bank”, Indian Co-operative Review,
Vol.44, No.4, April, 2007, PP.291-297.

11. Fulbag Singh and Balwinder Singh, “Funds Management in the Central Co-
operative Banks of Punjab-An Analysis of Financial Margin”, The ICFAI
Journal of Bank Management, Vol.V, No.3, Aug, 2006, PP.74-80.

12. Oliver Bright,A, “Role of Kanyakumari District Central Co-operative

Bank(KDCCB) in Tsunami Credit”, Kisan World, Vol.32, No.9, Sep, 2005,
PP.33-34.

13. Rais Ahmad and Nasurllah Bhat, “Recovery Performance of District Co-
operative Banks in J&K State”, Monthly Public Opinion Survey, Vol.XLIX,
No.11, Aug, 2004, PP.10-14.

14. Singh G.N. “Distribution and Utilisation of Co-operative credit in the district
Lucknow”, India Co- operative Review 1976, 13(4) pp 397-411.

15. Reddy B.R. and Laxminarayana, “Overdues in Co-operatives: A Case Study in

Andhra Pradesh”, Co operative Perspective, October-December, 1996, pp.18-21.

16. Singh G.N. “Distribution and Utilisation of Co-operative credit in the district
Lucknow”, India Co- operative Review 1976, 13(4) pp 397-411.

17. Swidha D.S and Chand.R. ‘Distribution of agricultural credit and concentration
of overdues in Punjab’ Financing of Agriculture, 1981,13(2) pp 18-20.
 18. Lal R.C. and Lavanya R.P. “Impact of the Co-operative credit on Agricultural
Production and Income”, Indian Co-operative Review, 1986,23(3),pp..269-276

19. Pandey U.K, ‘Socio-economic factor affecting the overdues of PACS ‘Indian Co-
operative review 1977, 14(1), PP 141-150.

20. Bhaskaran R and Praful Josh P (2000), “Non Performing Assets (NPAs) in Co-
operative Rural Financial System: A major challenge to rural development”,
BIRD‟s Eye View Dec.2000.

BOOKS:
Research methodology-C R KHOTHARI Vishwa Prakashan, 2202
Maheshwari S. N. Banking Law and Practice, Kalyani Publisher, New Delhi, 1981

WEBSITES:
www.kempegowdacreditcooperativesociety.com
www.wikipedia.com
http://shodhganga.inflibnet.ac.in
www.cooperativescoiety.com