EXECUTIVE SUMMARY

The origins of the cooperative banking movement in India can be traced to the close of
19th century when, inspired by the success of the experiments related to the cooperative
movement in Britain and the cooperative credit movement in Germany, such societies
were set up in India. Cooperative banks are an important constituent of the Indian
financial system. They are the primary financiers of agricultural activities, some small-
scale industries and self-employed workers. India's co-operative banking structure
consists of two main segments, viz., agricultural and non-agricultural credit.
There are two separate structures in the case of agricultural credit - one for short and
medium term credit and the other for long term credit. The co-operative credit structure
for short and medium terms is a three tier one with primary agricultural credit societies at
the base level, the central co-operative bank at the district level and state co-operative
bank at the apex level. Over and above these institutions, grain banks are actively
functioning as primary societies in certain states. Though the organisation of central and
state co-operative banks was mainly for the benefit of the agricultural credit sector, they
serve non-agricultural societies too. Saraswat Cooperative Bank Ltd. is one of the fastest
growing state scheduled co-operative bank. Within a short span of just 16 years, it has
achieved SCHEDULED STATUS. Few of the objectives to study the topic were, a)To
study the performance of the urban cooperative bank (scheduled bank) in ambaranth
taluka with special refrence to Saraswat bank . b) To verify where does Saraswat
Cooperative Bank Ltd. stands in comparison with other co-operative banks on the basis
of it’s various products & services c) To examine what more can Saraswat Cooperative
Bank Ltd.can add to it’s list of products & services.
 CHAPTER: 1

Introduction to Banks

1.1 Co-operative Banks in India:-

The Co-operative Banks are a special type of banking in which people co-
operative with each other with a view to promote their mutual interest. Co-
operative means working together. In this banking organization, people
voluntarily co-operative with each other on equal terms to promote their
own economic interest. The year 1904 marked the beginning of the
history of Agricultural Co-operative Banks in India. The Anyonya Co-
operative banks in India are considered as the first Co-operative bank in
Asia.
 The Co-operative Bank is an important constituent of the Indian
Financial System, judged by the role assigned, the expectations supported
to fulfill, their number, and the number of officers the Co-operative bank
operate. Though the Co-operative movement originated in the west, but
the importance of such banks assumed in India is rarely paralleled
anywhere else in the world. The Co-operative banks in India play an
important role even today in rural financing. The business of Co-operative
Banks in the urban areas also has increased phenomenally in recent years
due to the sharp increase in the number of primary Co-operative Banks.
Co-operative Banks in India are registered under the Co-operative
Societies Act. The Co-operative Banks is also regulated by the RBI. They
are governed by the Banking Regulation Act 1949 and Banking Laws (co-
operative Societies) Act, 1965.

In India the co-operative movement was introduced as a remedy for

the proverbial poverty of the small agriculturalists. It was the government
of Madras (Chennai) who grasped the possibilities of co-operative
movement in India. The origin of urban cooperative credit societies in
India can be traced to the close of 19th century. Inspired by the urban co-
operative credit institutions organized in Germany by Mr. Hermann
Schulze (1860) and in Italy by Prof. Luigi Luzzatti (1866), the first urban
co-operative credit society named “ANYONYA SAHAKARI MANDALI”
was established in Baroda on 5th February, 1889, under the guidance of
Shri V.L. Kavthekar. But the co-operative credit societies got legal status
only in 1904, when the govt. of India passed the first “Cooperative credit
societies Act, 1904” with a view to encourage thrift, eradicate rural
indebtedness and provide credit to the needy and weaker sections of the
society in rural areas. This act has widened the scope of co-operative
enterprises in India.

UCBs oriented and developed as a result of the cooperative

movement to provide self help to needy sections of society. The co-
operative movement came into existence in the late 1700s in England
where Robert Owen – a great philosopher advocated the establishment of
cooperative communities to mitigate the sufferings of the exploited class in
the wake of the industrial revolution. But the modern co-operative
movement began in 1844 near Manchester, England when 28 flannel
weavers established “The Rochadale Society of Equitable Pioneers” to
increase their wages.

1.2 History of Co-operative Banks:-

Bert Owen (1771-1858) fathered the co-operation movement. A

Welshman who made his fortune in the cotton trade. Owen believed in
putting his workers in a good environment with access to education for
themselves and their children. These ideas were put into effect successfully
in the cotton mills of New Lanark, Scotland. It was here that the first co-
operative store was opened. Spurred on by the success of this, he had the
idea of forming “Villages of cooperation” where workers would drag
themselves out of poverty by growing their own food, making their own
clothes and ultimately becoming self – governing. He tried to form such
communities in Orbison in Scotland and in New Harmony, Indiana in the
United States of America, but both communities failed. Although, Owen
inspired the co-operative movements, others such as Dr. William King
(1786 – 1865) took his ideas and made them more workable and practical.
King believed in starting small, and realized that the working classes
would need to set up cooperatives for themselves, so he saw his role as one
of instruction. He founded a monthly periodical called The Co-operator,
the first edition of which appeared on May 1, 1828. This gave a mixture of
co-operative philosophy and practical advice about running a shop using
cooperative principles. King advised people not to cut themselves off from
society, but rather to form a society within a society and to start with a
shop because, “We must go to shop every day to buy food and necessaries
– why then should we not go to our own shop?” He proposed sensible
rules, such as having a weekly account audit, having three trustees and not
having meetings in pubs (to avoid the temptation of drinking profits). A
few poor weavers joined together to form the Rochdale Equitable Pioneers
Society at the end of 1843. The Rochdale Pioneers, as they became know,
set out the Rochdale Principles in 1844 which form the basis of co-
operative movement today.
 Co-operative communities are now wide spread with one of the
largest and most successful examples being at Mondragon in Basque
country of Spain. Co-operatives were also successful in Yugoslavia under
Tito where workers council gained a significant role in management. In
many European countries, co-operative institutions have a predominant
market share in the retail banking and insurance businesses. The Indian co-
operative movement was initiated by the government. It spread and
diversified with the encouragement and support of the government. Its
present condition on is also to a great extent because of the intrusive
involvement of and interference by the government.

1.3 Scheduled Banks in India

Scheduled Banks in India refer to those banks which have been

included in the Second Schedule of Reserve Bank of India Act,
1934. RBI in turn includes only those banks in this Schedule which satisfy
the criteria laid down vide section 42(6) (a) of the said Act. Banks not
under this Schedule are called Non-Scheduled Banks.

Every Scheduled bank enjoys two types of principal facilities: it

becomes eligible for debts/loans at the bank rate from the RBI; and, it
automatically acquires the membership of clearing house.[1]

The Scheduled banks comprise Scheduled Commercial Banks and

Scheduled Co-operative banks. The further classification is as follows:

 Scheduled Commercial banks
 Public Sector Banks
 State Bank of India and its associates, and
 Other Nationalised banks

 Private Sector Indian Banks

 Old private-sector banks
 New private-sector banks
  Private-sector foreign banks
 Regional Rural Bank (RRBs)

 Scheduled Co-operative banks
 Scheduled State Co-operative Banks
 Scheduled Urban Co-operative Banks

1.4 Brief History of Urban Cooperative Banks in India

The term Urban Co-operative Banks (UCBs), though not formally

defined, refers to primary cooperative banks located in urban and semi-
urban areas. These banks, till 1996, were allowed to lend money only for
non-agricultural purposes. This distinction does not hold today. These
banks were traditionally centred around communities, localities work place
groups. They essentially lent to small borrowers and businesses. Today,
their scope of operations has widened considerably.

The origins of the urban cooperative banking movement in India can

be traced to the close of nineteenth century when, inspired by the success
of the experiments related to the cooperative movement in Britain and the
cooperative credit movement in Germany such societies were set up in
India. Cooperative societies are based on the principles of cooperation, -
mutual help, democratic decision making and open membership.
Cooperatives represented a new and alternative approach to organisaton as
against proprietary firms, partnership firms and joint stock companies
which represent the dominant form of commercial organisation.

The Beginnings

The first known mutual aid society in India was probably the
"Anyonya Sahakari Mandali" organised in the erstwhile princely State of
Baroda in 1889 under the guidance of Vithal Laxman also known as
Bhausaheb Kavthekar. Urban co-operative credit societies, in their
formative phase came to be organised on a community basis to meet the
consumption oriented credit needs of their members. Salary earners"
societies inculcating habits of thrift and self help played a significant role
in popularising the movement, especially amongst the middle class as well
as organized labour. From its origins then to today, the thrust of UCBs,
historically, has been to mobilise savings from the middle and low income
urban groups and purvey credit to their members - many of which
belonged to weaker sections.

The enactment of Cooperative Credit Societies Act, 1904, however,

gave the real impetus to the movement. The first urban cooperative credit
society was registered in Canjeevaram (Kanjivaram) in the erstwhile
Madras province in October, 1904. Amongst the prominent credit societies
were the Pioneer Urban in Bombay (November 11, 1905), the No.1
Military Accounts Mutual Help Co-operative Credit Society in Poona
(January 9, 1906). Cosmos in Poona (January 18, 1906), Gokak Urban
(February 15, 1906) and Belgaum Pioneer (February 23, 1906) in the
Belgaum district, the Kanakavli-Math Co-operative Credit Society and the
Varavade Weavers" Urban Credit Society (March 13, 1906) in the South
Ratnagiri (now Sindhudurg) district. The most prominent amongst the
early credit societies was the Bombay Urban Co-operative Credit Society,
sponsored by Vithaldas Thackersey and Lallubhai Samaldas established on
January 23, 1906..

In the present day context, it is of interest to recall that during the

banking crisis of 1913-14, when no fewer than 57 joint stock banks
collapsed, there was a there was a flight of deposits from joint stock banks
to cooperative urban banks. Maclagan Committee chronicled this event
thus:

"As a matter of fact, the crisis had a contrary effect, and in most
provinces, there was a movement to withdraw deposits from non-
cooperatives and place them in cooperative institutions, the distinction
between two classes of security being well appreciated and a preference
being given to the latter owing partly to the local character and publicity of
cooperative institutions but mainly, we think, to the connection of
Government with Cooperative movement".
 Under State Purview

The constitutional reforms which led to the passing of the

Government of India Act in 1919 transferred the subject of "Cooperation"
from Government of India to the Provincial Governments. The
Government of Bombay passed the first State Cooperative Societies Act in
1925 "which not only gave the movement its size and shape but was a pace
setter of cooperative activities and stressed the basic concept of thrift, self
help and mutual aid." Other States followed. This marked the beginning of
the second phase in the history of Cooperative Credit Institutions.

There was the general realization that urban banks have an

important role to play in economic construction. This was asserted by a
host of committees. The Indian Central Banking Enquiry Committee
(1931) felt that urban banks have a duty to help the small business and
middle class people. The Mehta-Bhansali Committee (1939),
recommended that those societies which had fulfilled the criteria of
banking should be allowed to work as banks and recommended an
Association for these banks. The Co-operative Planning Committee (1946)
went on record to say that urban banks have been the best agencies for
small people in whom Joint stock banks are not generally interested. The
Rural Banking Enquiry Committee (1950), impressed by the low cost of
establishment and operations recommended the establishment of such
banks even in places smaller than taluka towns.

The first study of Urban Co-operative Banks was taken up by RBI in

the year 1958-59. The Report published in 1961 acknowledged the
widespread and financially sound framework of urban co-operative banks;
emphasized the need to establish primary urban cooperative banks in new
centers and suggested that State Governments lend active support to their
development. In 1963, Varde Committee recommended that such banks
should be organised at all Urban Centres with a population of 1 lakh or
more and not by any single community or caste. The committee introduced
the concept of minimum capital requirement and the criteria of population
for defining the urban centre where UCBs were incorporated.
 Duality of Control

However, concerns regarding the professionalism of urban

cooperative banks gave rise to the view that they should be better
regulated. Large cooperative banks with paid-up share capital and reserves
of Rs.1 lakh were brought under the perview of the Banking Regulation
Act 1949 with effect from 1st March, 1966 and within the ambit of the
Reserve Bank"s supervision. This marked the beginning of an era of
duality of control over these banks. Banking related functions (viz.
licensing, area of operations, interest rates etc.) were to be governed by
RBI and registration, management, audit and liquidation, etc. governed by
State Governments as per the provisions of respective State Acts. In 1968,
UCBS were extended the benefits of Deposit Insurance.

A feature of the urban banking movement has been its

heterogeneous character and its uneven geographical spread with most
banks concentrated in the states of Gujarat, Karnataka, Maharashtra, and
Tamil Nadu. While most banks are unit banks without any branch network,
some of the large banks have established their presence in many states
when at their behest multi-state banking was allowed in 1985. Some of
these banks are also Authorised Dealers in Foreign Exchange

Recent Developments

Over the years, primary (urban) cooperative 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 percent of these are located in five 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 endeavours are geared to
consolidating and strengthening this sector and improving governance.
 1.5 Number of Banks

 Co-operative Banks
 State Co-operative Banks

I. Andhra Pradesh State Co-operative II. The Maharashtra State Co-

Bank Ltd operative Bank Ltd.

III. The Bihar State Co-operative IV. The Orissa State Co-operative
Bank Ltd. Bank Ltd.

V. Chhattisgarh Rajya Sahakari VI. West Bengal State Co-operative

Bank Maryadit Bank Ltd.

VII. The Goa State Co-operative Bank VIII. Uttarakhand State Co-operative
Ltd. Bank Ltd.

IX. The Gujarat State Co-operative X. The Uttar Pradesh Co-operative

Bank Ltd. Bank Ltd.

XI. Haryana Rajya Sahakari Bank XII. Telangana State Cooperative Apex
Ltd. Bank Ltd

XIII. Himachal Pradesh State Co- XIV. Tamil Nadu State Apex Co-
operative Bank Ltd operative Bank Ltd.

XV. Karnataka State Co-operative XVI. The Rajasthan State Co-operative

Apex Bank Ltd. Bank Ltd.

XVII. Kerala State Co-operative Bank XVIII. Punjab State Co-operative Bank
Ltd. Ltd.
 Urban Co-operative Banks :-
There are total 54 urban co-operative bank in India, I
mentioned 20 of them

I. Bharati Sahakari Bank II. Apna Sahakari Bank Ltd.

Limited

III. Ahmedabad Mercantile IV. Cosmos Co-operative

Co-Op Bank Ltd. Bank Ltd

V. Bombay Mercantile Co- VI. Dombivli Nagari

operative Bank Limited Sahakari Bank Ltd.

VII. Indian Mercantile Co- VIII. Shamrao Vithal Co-

operative Bank Ltd. operative Bank Ltd.

IX. NKGSB Co-operative X. Thane Bharat Sahakari

Bank Ltd. Bank Ltd.

XI. Sangli Urban Co-operative XII. TJSB Sahakari Bank Ltd

Bank Ltd.

XIII. Saraswat Co-operative XIV. Karad Urban Co-

Bank Ltd. operative Bank Ltd

XV. Solapur Janata Sahakari XVI. Citizen Credit Co-

Bank Ltd. operative Bank Ltd.

XVII. Kalyan Janata Sahakari XVIII. Jalgaon Janata Sahakari

Bank Ltd. Bank Ltd.

XIX. Janata Sahakari Bank Ltd. XX. Punjab & Maharashtra

Co-operative Bank Ltd
 1.6 Some of the details of Urban Co-operative Scheduled Banks :-

Cosmos Co-operative Bank

Type Public Company

Industry Banking Financial Services
Founded 1906
Founder N. C. Kelkar
Headquarters Pune, India
Products Commercial banking
Retail banking
Private banking
Revenue 120,000.0 million (US$ 1.7 billion)(2013)
Net income 553.2million (US$ 7.7million)(2013)
Number of employees 2,800+ (2014)
 Cosmos Co-operative Bank

History of Cosmos Co-operative Bank 

Established in 1906, the Cosmos Co-operative Bank Ltd. is the second

oldest & second largest bank in the country. The Bank has recently
completed glorious 107 years of service successfully. It has attained multi
state scheduled status in 1997. The Bank is a professionally managed
'Financial Institution', a benchmark of credibility and innovation. Bank has
nurtured its traditional values in business practices and in serving the small
customers. At the same time it has adopted new technologies and advanced
banking tools toad value to its services. Cosmos Bank has carved a niche in
the banking sector due to its rich heritage, integrity, adherence to prudent
banking practices, technology advancement, customized products and
services and most of all due to its experienced, qualified and professional
Board of Directors.
 
The Cosmos Co-operative Bank Ltd. (Cosmos Bank)
Is one of the oldest Urban Co-operative Bank in India , celebrated its
centenary on 18 January 2005. It is one of the first co-operative banks in the
country to go live with the core banking solution across the entire network of
its 119 service outlets using Finacle-Infosys Core Banking Software.
It also received an Authorized Dealer License from the Reserve Bank of
India to become the third co-operative bank in India to acquire such a license
in thirty years.
The bank is headquartered in Pune,and is managed by a team of executives,
including a managing director. The bank was founded in 1906 in Pune by
India's famous Freedom fighter, Lokmanya Bal Gangadhar Tilak.He
allocated the bank's managing responsibility to his friend, Namdar
(Solicitor) Gokhale an economist and freedom fighter. During that period,
the British- East India Company had their own banks in India. Following the
ideals of "Swarajya" and "Swadeshi", Lokmanya Tilak thought of starting
this bank so that Indians could save money. Tilak himself recommended the
name "COSMOS BANK". The word "COSMOS" means "UNIVERSE" and
also a "FLOWER".

Setup -
Financial & Geographical
Financial setup of the bank as on 31.03.2012 was Rs.20570 crore,
comprising of Depositsof Rs. 12060 crore and Advances Rs. 8510 crore.

Branches of Cosmos Co-operative Bank 

 Cosmos Bank operates through 130 branches and 9 Extension Counters in
India spread across6 States and in 28 Major Cities, which are as follows:

Maharashtra Mumbai, Pune, Nagpur, Aurangabad, Nashik, Baramati,

Jalna, Kolhapur, Satara, Phaltan, Sangli, Solapur, Bhusawal,
Jalgaon,Amravati, Yavatmal.

Madhya Pradesh Indore.

Andhra Pradesh Hyderabad, Vijaywada

Karnataka Banglore. Belgaum, Nipani.

Gujarat Surat, Ahmedabad, Baroda, Ankaleshwar, Rajkot, Bhuj,

Gandhidham,Bhavnagar 

Tamilnadu Chennai

Vision of Cosmos Bank:

 Foundation is formed to serve the Cosmos Bank stakeholders and the entire
society.
Mission of Cosmos Bank:
 Committed to enriching the lives of society by implementing activities in
the Medical,Educational, Legal and Cultural fields.
The main objectives of the foundation are – 

 1. To give loans to Cosmos Bank members at concessional rates for

pursuing higher education abroad.
2. To give medical help to members up to specified limits.
3. To felicitate the awards of members who excel in Std. X & XII
examinations.
4. To promote educational spirit and to maintain, support, propagate
intellectual qualitieseducational facilities, etc.
5. To arrange educational seminars, conferences, etc
6.To grant relief in the event of natural calamities such as earthquakes,
floods, famine.
7. The Foundation also provides outsourcing facility.
8. Special arrangement as Executor & Trustee for preparation & execution
of Will especially for the Senior Citizens.

The registered office of the foundation is at 269/270, Shaniwar Peth, Pune-

30.

Bank Provide Services

 Bank conduct need based health initiative, medical program. Bank also
felicitate successful students and children of the members of the staff.

1. To Promote Educational Spirit

2. Create Scholarships, Educational loan
3. Grant Donations in natural calamities
4. Grant Donations for the public benefit
5. Financial support to the deserving students
6. Donation for public Charitable Purpose
7. Organize Health related programmed
 TJSB BANK

Bank Name: Thane Janata Sahakari Bank Ltd.

Facility: Branch
Address: Maruti Ashish, off. J N Road, Opp. Apna Bazar,
Mulund (West), Mumbai - 400 080.
Working Hrs: 6 to 8 hrs
Phone: 02225692554
Fax: 02225690019
E-mail: tjsb@bom5.vsnl.net.in
Website: http://www.thanejanata.co.in
HISTORY

With the modest beginning in 1972 in the co-operative field, the

dynamism infused by the Board of Directors, unflinching loyalties of
clientele and devotion of staff has propelled the sound foundation of The
Thane Janata Sahakari Bank Ltd (TJSB) and has emerged as one of the
leading scheduled co-operative Bank in the country.

TJSB presently is catering to the needs of society through a close

network of 37 Branches and 5 Extension Counters spread all over the city of
Thane, Mumbai, Navi Mumbai, Nasik & Pune. All these Branches have
made remarkable progress on all Fronts in all these years.

TJSB believes that "customer delight" is the ultimate goal and has a
strong belief that Customers & all Stakeholders wholehearted support,
absolute faith and their patronage has largely been responsible for its
enviable growth. TJSB is committed to provide banking with speed, comfort
and convenience.

TJSB feels proud to acknowledge the growth of large number of

successful industrialists, traders and professionals who have grown leaps &
bound due to timely Assistance and support of the bank.

TJSB has set before a Visionary Growth Plan focusing all business
strategies solely on creation of Stakeholders value.
TJSB BANKING SERVICES

Initial Banking Services

Banking services are extremely important in a free market economy such as

that found in Canada and the United States. Banking services serve two primary
purposes.

First, by supplying customers with the basic mediums-of-exchange (cash,

cheque facility, and credit cards), banks play a key role in the way goods and
services are purchased. Without these familiar methods of payment, goods could
only be exchanged by barter (trading one good for another), which is extremely
time-consuming and inefficient.

Second, by accepting money deposits from savers and then lending the
money to borrowers, banks encourage the flow of money to productive use and
investments. This in turn allows the economy to grow. Without this flow, savings
would sit idle in someone's safe or pocket, money would not be available to
borrow, people would not be able to purchase cars or houses, and businesses
would not be able to build the new factories the economy needs to produce more
goods and grow. Enabling the flow of money from savers to investors is called
financial intermediation, and it is extremely important to a free market economy.

Commercial banks and thrifts offer various services to their customers.

These services fall into three major categories: Opening Accounts, Loans, and
Cash Management Services.

A) Opening Accounts

Banks facilitated the opening of three major types of accounts:

 Saving Accounts
 Current Account
 Fixed Deposits Accounts
 PUNJAB AND MAHARASHTRA CO-OP BANK LTD

Vision and Mission

“To emerge as a strong, vibrant, most preferred premier co operative bank,

committed to excellence in serving the customers, and augmenting the
stakeholders value through concern, care and competence”.

Profile

 Punjab & Maharashtra Co-operative Bank is a Multi-State Scheduled Urban

Co-operative Bank with its area of operation in the States of Maharashtra,
Delhi, Karnataka ,Goa, Gujarat ,Andhra Pradesh and Madhya Pradesh
 The humble beginning of the Bank was done in a small room at Sion, on
February 13, 1984 as a single branch Bank. In a span of 35 years, the Bank
has a wide network of 137 branches across six states.
 The Bank stands among top 10 co-operative banks of the country.

Milestones

 The Bank was conferred with Scheduled Status by the Reserve Bank of

India in the year 2000.It is the Youngest Bank to achieve the ‘Scheduled
Bank’ status.
 The Multi-State Status was conferred on the Bank by the Central Registrar
in the year 2004.The Bank thus entered into the National platform
 The Bank was given the Authorised Dealer Category I License by the
Reserve Bank of India for Forex business in the year 2011.

Awards and Achievements

 The Bank has been awarded with 'Best Bank award for the year 2018' in the
category of Rs.2000 cr & above deposit by the Brihan Mumbai Nagari
Sahakari Banks Association Ltd. for consecutively 2 times.
 The Bank has various laurels to its credit.
 All India Bank Depositors’ Association, well known body of the bank
depositors, felicitated the Bank in appreciation of “work ethics oriented to
depositors’ service” in 1999.
 The Bank has been awarded with ‘Padmabhushan Vasantdada Patil Award’
as the ‘Best Urban Co-operative Bank’ by the Maharashtra State Co-op
Banks’ Association Ltd. for nine times.
 The Bank received a ‘Special Jury Award’ from NPCI for the lowest
dispute ratio in Co-operative Banking sector and also for the lowest
unscheduled down time in 2012.
 Since 2004,the Bank has instituted an award in the memory of the late M.R.
Pai, noted public worker and consumer activist. However, the Bank has
requested the All India Bank Depositors’ Association to choose the Award
winner each year.

Chapter 2
2.1 Company profile

Saraswat Bank

Type
Cooperative Sector
Industry Banking Financial Services

Founded 14 September 1918

Headquarters Saraswat Co-Operative Bank Ltd, Ekanath Thakur

Bhawan 953, Appasahe, Marathe Marg,
Prabhadevi. Mumbai- 400025 
Key people Gautam Thakur (Chairman), S.K. Sakhalkar (Vice-
Chairman)

Revenue 33,760.2 million(US$470 million) (2017-18)

Net income 2,406.8 million(US$33 million) (2017-18)

Number of employees 4061(March 2018)

 Saraswat Bank is an urban co-operative banking institution based
in Maharashtra, India and operating as a co-operative society since 1918. The
Founding Members of the society were Mr. J.K. Parulkar as Chairman, Mr. N.B.
Thakur as Vice Chairman, Mr. P.N. Warde as Secretary, and Mr. Shivram Gopal
Rajadhyaksha as Treasurer.

In 1988, the bank was conferred with "Scheduled" status by Reserve Bank
of India. It is the first co-operative bank to provide merchant banking services. The
bank got a permanent license to deal in foreign exchange in 1979. Presently the
bank has a correspondent relationship in 58 countries covering nine currencies
with over 162 banks.

The beginning of the 21st century has been a giant leap forward for the
bank. The bank chose a path of organic/inorganic growth and its pace of growth
accelerated. The bank's total business which was around Rs.4000 crore in 2000
almost tripled to Rs.15295 crore in 2007.

In the year 2008, the bank launched a branding initiative to reconfirm the
thrust of the bank on its core values, which can be summed up as a "sense of
belonging".

In the last two decades the bank has witnessed a steady growth in business
and also taken several Strategic Business Initiatives such as undertaking Business
Process Reengineering initiative, merging seven cooperative banks and then
consciously nurturing them. The bank tied up with VISA International for issuance
of debit cards. The bank has also successfully launched the RuPay EMV debit card
in 2013-14. The bank was the first to achieve this milestone in respect of RuPay
EMV card along with the Bank of Baroda.

In 2011, the bank was granted permission for All India Area of Operation
by Reserve Bank of India. The bank has an ambitious business expansion plan in
place to have a presence in all major cities of the country and is well poised to
double total business to 1,00,000 crore over the next few years.

The bank has a network of 281 fully computerized branches as on 31 March

2018 covering six states viz. Maharashtra, Gujarat, Madhya
Pradesh, Karnataka, Goa and Delhi. The bank provides 24-hour service through
ATMs at 260 locations. In 2018, the bank also introduced their Bank on
WhatsApp facility to help customers receive updates and avail various banking
services via the chat platform.  As of 31 March 2018 the bank's business had
surpassed Rs. 58,526 crores. It received The Best Cooperative Bank Award in
2016.

Mission statment:

"To emerge as one of the premier and most preferred banks in the country
by adopting highest standards of professionalism and excellence in all the areas of
working III"

Milestones:

Thanks to these sustained and assiduous efforts over 25 years after its
inception, the Bank had gained strong foundation in terms of its membership,
resources, assets and profits. By 1942, the Bank was fulfilling all the banking
needs of its customers.

During the late fifties, the Bank grew from strength to strength. The Bank
had established five branches within the city of Mumbai and one each at Pune and
Belgaum. In its 50th year, the Bank chose a bee motif to symbolise the Bank's
emblem - a fitting and appropriate characteristics of a Bank that believed in hard
work, a search for all that is good, a team spirit to achieve its objectives and a
selfless service to its members and customers. The Bank has grown in stature,
progressed in its social and economic objectives and produced an image of what
an ideal bank should be. Resultantly, in the year 1977-78, the Bank's gross income
crossed the Rs.3.00 crore mark for the first time.

Last two decades the Bank has witnessed a steady growth in the business.
The bank has a network of 223 fully computerised branches covering six states
viz. Maharashtra, Gujrat, Madhya Pradesh, Karnataka, Goa and Delhi. The Bank
is providing 24- hour service through ATM at 137 locations.

In 1988 the bank was conferred with "Scheduled" status by Reserve Bank
of India The Bank is the first co-operative bank to provide Merchant Banking
services. The Bank got a permanent license to deal in foreign exchange in 1978,
Presently the Bank is having correspondent relationship in 45 countries covering 9
currencies with over 125 banks.
 In 192 Bank completed 75 years. Platinum Jubilee Celebration were
inaugurated on 14th September, 1992. Bank also crossed the business level of Rs
700 Crores

The Beginning of the 21st Century has been a giant leap forward for the
Bank. Bank chose a path of organic/inorganic growth and our pace of growth
accelerated .Bank's total business which was around Rs 4000 Crore in 2000 almost
tripled to Rs 15295 Crore in 2007, The Business of the Bank as on 31st March
2009 had crossed Rs 21000 Crores.

Bank in the year 2008 launched the Branding Initiative .The purpose of
such an exercise was to reconfirm the thrust of Bank on its core values, which can
be summed up as "Sense of Belonging ".The name of the Bank should always
inspire the Sense of Belonging in all its stakeholders and that Bank continues to
fulfill the changing needs and expectations of the customer with unflinching gusto
and aplomb

As on 31st March, 2011 Bank business had crossed Rs 26000 Crores and as
on 30th September, 2011, Bank business had surpassed Rs 29000 Crores-

In 2011 Bank was granted permission for All India Area of Operation by
Reserve Bank Of India. Bank has an an ambitious business expansion plan in
place to have a presence in all major cities of the country, reach a business level of
Rs 50000 Crores by 2016 and Rs 100000 by 2018.

It is a matter of immense pride for the Bank that Bank's new Corporate
Office at Prabhadevi-Mumbai has become operational. The office reverberates our
strong presence in the financial capital of the country. The massive edifice in
crystal glass in heart of Mumbai gently reminds everyone of the numero-uno
position which the Bank holds in the Cooperative Sector. The usage of state of art
technology coupled with personal ambience's to make everybody comfortable
once again reiterates Bank's adherence to "Think Global, Act Local”.

2.2 CURRENT POSITION OF THE COMPANY

1. DEPOSITS

DEPOSITS (Rs. in crores)

25000

20000

15000

10000

5000

0
13-14 14-15 15-16 16-17 17-18

2. Advances

Advances (Rs. in crores)

25000

20000

15000

10000

5000

0
13-14 14-15 15-16 16-17 17-18

3. Total Business
 Total Business (Rs. in crores)
70000

60000

50000

40000

30000

20000

10000

0
13-14 14-15 15-16 16-17 17-18

4. Working Funds

Working Funds (Rs. in crores)

45000
40000
35000
30000
25000
20000
15000
10000
5000
0
13-14 14-15 15-16 16-17 17-18

5. Own Funds
 Own funds (Rs. in crores)
3500

3000

2500

2000

1500

1000

500

0
13-14 14-15 15-16 16-17 17-18

6. Net Profit

Net Profit (Rs. in crores)

300

250

200

150

100

50

0
13-14 14-15 15-16 16-17 17-18

2.3 Performance Highlights

 (` in
crore)
Particulars FOR THE YEAR ENDED
31-03-18 31-03-17 %
change
Total Income 3,498.32 -3.50

3,376.02
Total Expenditure 2,920.82 -2.51

2,847.51
Gross Profit 577.50 -8.48

528.51
Less: Provisions 254.62 -25.09

190.74
Profit Before Tax 322.88 4.61

337.77
Less: Income Tax 88.83 9.30

97.09
Profit after Tax carried to Balance Sheet 234.05 2.83

240.68
AT THE YEAR END
Own Funds 2,684.93 6.86

2,869.03
Share Capital 215.23 10.00

236.75
Reserves and Surplus 2,469.70 6.58

2,632.28
Deposits 33,737.42 3.91

35,056.66
Current 1,753.57 54.15

2,703.06
Savings 7,695.55 5.14

8,090.82
Term 24,288.30 -0.11

24,262.78
Advances 21,536.07 8.98

23,469.11
Secured 21,402.63 9.00

23,328.06
Unsecured 133.44 5.70

141.05
Total Business 55,273.49 5.88

58,525.77
Priority Sector 5,079.22 16.37

5,910.72
% to Adjusted Net Bank Credit (ANBC) 24.94 -

27.45
Small Scale Industries 362.54 18.62

430.04
Small Businessmen and Traders 2,303.10 24.38

2,864.71
Other Priority Sectors 2,413.58 8.39

2,615.97
Working Capital 38,442.22 5.41

40,520.30
Investments 8,872.79 7.83

9,567.97
Borrowings and Refinance 792.95 55.33

1,231.67
Balance Sheet As at 31st March, 2018

Capital and Liabilities Current Year Previous Year

31.03.2018 31.03.2017

(1) Capital 2,36,74,57,280 2,15,22,60,430

(2) Reserve Fund & Other Reserves 33,00,39,86,326 31,56,12,92,888

(3) Deposits & Other Accounts 3,50,56,65,84,063 3,37,37,41,86,734

(4) Borrowings 12,31,66,54,312 7,92,94,60,129

(5) Bills for Collection being Bills

Receivable as per contra 44,73,87,29,678 31,44,48,37,226

(6) Overdue Interest Reserve on Loans & Advances 93,73,83,158 1,46,44,85,618

as per contra

(7) Interest Payable 56,96,32,062 48,08,44,693

(8) Other Liabilities 13,02,05,91,615 11,78,85,92,428

(9) Profit & Loss 2,41,63,13,025 2,34,98,95,462

Total 4,59,93,73,31,519 4,26,54,58,55,608

Contingent Liabilities: 45,28,98,43,453 35,91,13,19,323
(Amount in `)

Property And Assets Current Year Previous Year

31.03.2018 31.03.2017
(1) Cash 15,51,47,80,210 15,15,05,76,779

(2) Balances with Other Banks 29,10,93,03,158 33,98,82,70,349

(3) Money at Call and Short Notice 18,05,59,98,028 20,32,72,17,300

(4) Investments 95,67,97,41,133 88,72,79,18,565

(5) Advances 2,34,69,11,28,746 2,15,36,07,13,894

(6) Interest Receivable on Loans & Advances as per contra 93,73,83,158 1,46,44,85,618

(7) Bills Receivable being Bills for Collection as per contra 44,73,87,29,678 31,44,48,37,226

(8) Branch Adjustments 11,29,64,357 51,41,925

(9) Fixed Assets 8,69,12,11,945 9,01,03,55,533

(10) Other Assets 12,36,82,19,783 10,99,17,21,886

(11) Computer Software 3,78,71,323 7,46,16,532

Total :- 4,59,93,73,31,519 4,26,54,58,55,608

SWOT ANALYSIS

SWOT analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It
involves specifying the objective of the business venture or project and identifying the
internal and external factors that are favorable and unfavorable to achieve that objective.
The technique is credited to Albert Humphrey, who led a convention at Stanford
University in the 1960sand 1970s using data from Fortune 500 companies.

STRENGTH
  It specifies the attributes of the person or company that are helpful to achieve the
objective(s).
 Saraswat Bank is No. 1 amongst the 1,700 UCBs in the Urban Cooperative
Banking Sector in India with over 90 years of cumulative banking experience.
 High standard regulatory environment.
 Flexible work permit system and good quality staff offering personal client
service.
 Bank has implemented Core Banking Solution (CBS) in the Bank. This solution
primarily aims at having a unified customer approach.
 Bank is a member of the Credit Information Bureau India Ltd. (CIBIL). CIBIL is
India’s first credit information bureau and is a repository of factual information on
the credit history and repayment records of millions of commercial and individual
borrowers.

OPPORTUNITY

External conditions that is helpful to achieving the objective(s).

 Maharashtra State has a huge banking business market of around Rs. 17,
00,000/- crore. Of these Rs. 17,00,000 crore, Saraswat Bank has a business
stake of only Rs. 20,000 crore, which is a miniscule of merely 1.2% share in
the total banking business in the State of Maharashtra. This provides a huge
opportunity to the bank.
 Saraswat Bank does 0.3% to 0.4% of the nation’s banking business. In India
today, 60%of the population do not have access to a banking product; 80% of
the population do not have access to an insurance product and 98% of the
population do not have access to a stock market product. Thus, there is
tremendous untapped growth potential in the Indian subcontinent.
WEAKNESS

 Refusal to dilute stake in PSU banks: The government has refused to dilute its
stake in PSU banks below 51% thus choking the headroom available to these
banks for raining equity capital.
 Lack of competitive differential with other offshore centre’s
 Rigid legislation that inhibits business development

THREAT

 Rise in inflation figures which would lead to increase in interest rates.

 Increase in the number of foreign players would pose a threat to the PSB as
well as the private players.
 Anti-offshore regulations in foreign target markets restricting the development
of products and new markets.
 Downsizing and reduction in banking operations in favour of rival
jurisdictions.
 Outsourcing to cheaper jurisdictions
 Subsequent impact on rest of finance sector ecosystem

4 P’s OF MARKETING:

Basically, the concept of Marketing is given by McCarthy who has classified “Marketing
Mix” tools of four broad kinds called 4 P's and they are as follows

 Product
 Price 
 Promotion