INSTITUTIONAL

ATTACHMENT REPORT
Vembayam Service Co-operative Bank Ltd. No.3121,
Konchira, Thiruvananthapuram

Submitted By,
Shakira Shafeek

INTRODUCTION
The Vembayam Service Co-operative Bank has been registered in 18/02/1950.
It started functioning in 09/05/1951 and has extending its service ever since
with a healthy working capital of more than 48 crores at present. The society is

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in Nedumangadu taluk and the area of operation of the society is whole of the
Vembayam Panchayath. It provides core banking facilities, RTGS/NEFT for the
valued customers and its members, further services includes locker facilities in
head office and branches.

The board of directors consists of 11 members including one seat reserved for
SC/ST members, three seats for women members . The members of the board of
directors shall be elected by the general body among the members for a period
of 5 years as per the byelaw. The board of directors is appointed for a period of
5 years. The last election held on 21-01-2021. The chief executive of the society
is the secretary. At present the secretary is ANITHA KUMARI R.

The board has the duty to examine the annual report and submit it before the
general body for its approval.

President : Sri A M Farooq

Committee Members : Sri Vijayan S
Smt Krystal Bhai B S
Smt Geetha kumari R
Sri V B Gopakumar
Sri Gopi Pillai B S
Smt Jalaja Kumari S
Sri Babu Theeppukal
Sri Shanthappan R
Sri Saji Kumaran Nair S
Sri Sadasivan Pilla M
The rights and duties of the board of directors are stated as under:-
 The board has the right to determine the operating fund of the bank and it
can be raised in the form of loans or deposits.
 It is the duty of the board to submit the audited report before the general
meeting of the shareholders.

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  The board has the right to sanction loans and advances to the members
with the prior approval of financing bank.
 It has the right to sanction the necessary amount for meeting the expenses
of the bank.
 The Board has the duty to examine the annual report and submit it before
the general body for its approval.

The objective of the society is to provide the principles of thrift, self help and
self efficiency among the members. The bank provides Short term and Medium
term loans to the members. There are many other loans providing by the bank,
they are Medium term not agricultural, Business loan, Housing loan, Gold loan,
Marriage loan, Ordinary loan, Hire purchase loan, Agricultural gold loan etc.

The head office of the society is located in Vembayam and the bank currently
having two branches:

 Kanyakulangara
 Ayirooppara

OBJECTIVES

 Promoting frugality, self-sufficiency among members and having

plans for its implementation and dissemination. Group objectives to
develop the qualities of awareness and mutual service intelligence.
 Provide loans to term members
 Procurement and distribution of seeds, fertilizers, implements,
pesticides, pulses etc. For agricultural use, as well as agricultural
household and household items.
 Implement agricultural production scheme for the members.
 Provide support and assistance for members to produce new varieties
of seeds.

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  Provide facilities for members to make green manures and fertilizers
within the area of operation of the society, either individually or in an
organized manner.
 Procurement of movable and immovable property required for the
operation of the society and establishment of branches at the required
places subject to the approval of the registrar within the area of
operation.
 Arbitrate any group disputes that may or may not occur between the
members of the society.
 Conduct chits, kuris, investment schemes, cooperative banking
business etc. for the financial growth of the society and its members.
 Distribute stamps for the convenience of the members.
 Purchase and store machinery and vehicles needed to carry out
societies purpose.
 With the permission of the registrar, conduct cultural development
programs, establishes libraries for the development of reading habits
and awareness and initiates institutions, including professional ones,
for the advancement of education.

FUNCTIONS

 Mobilize deposits from members and non-members

 Provide agricultural loans at reasonable rate.
 Provide short term loans for non-agricultural purpose.

 Medium term loans are granted to employees.

 They also provide loans for commencing business.
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  They also provide locker facilities to members of bank.

ORGANISATIONAL STRUCTURE

Board of Directors

Secretary

Internal Auditor

Accountant

Senior Clerk

Junior Clerk

Attender

Appraiser

Peon

Watchmanwaww

Part time sweeper

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INSTITUTIONAL ATTACHMENT PROGRAMME REPORT

 Name of the Organization: Vembayam Service Cooperative Bank

ltd.No.3121

 Full address: Vembayam Service Cooperative Bank

ltd.No.3121, Konchira P.O, Vembayam,
Thiruvananthapuram
Pin: 695615

 Date of Registration: 18/02/1950

 Date of Commencement: 09/05/1951
 Population in the area of operation: 30560
 Authorized Share Capital: 18100000
 Maximum Borrowing Power: 2500000
 Individual Maximum Borrowing
Power: 1000000
 Date of last Election: 21/01/2021
 No. of GDS/MDS schemes: 6

 3/17 - 50 months (1,00,000)

 5/18 - 50 months (1,00,000)
 2/19 - 25 months (1,00,000)
 2/20 -25 months (1,00,000)
 3/20 -50 months (1,00,000)
 6/20 - 40 months (2,00,000)
 List of books and records used and
its purpose:

 Day Book
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  Minutes
 General Ledger
 Deposit Register
 Loan Register
 Cash Book
 Membership Register
 Register of identity card
 MDS register
 Manure Register
 Model Byelaws
 SBPCA

 Details of computerization:

 Software: :Perfect Core Solution

 Agency: :Cochin Computer
 Platform: :Windows
 AMC: : _
 Different Modules :Customer, share, loans, accounts
etc.
 Classification

Year Classification

2015-16 B

2016-17 B

2017-18 B

2018-19 B
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 2019-20 B

 No. of ‘A’ Class Members

Year Shares

2015-16 3638

2016-17 3662

2017-18 3672

2018-19 3765

2019-20 3860

 No. of ‘B’ Class Members

Years Shares

2015-16 2946

2016-17 3033

2017-18 3147

2018-19 3227

2019-20 4262

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 No. of ‘C’ Class Member

Years Shares

2015-16 50

2016-17 50

2017-18 50

2018-19 52

2019-20 52

 Total Share Capital

Year Amount

2015-16 4543710

2016-17 4828240

2017-18 4900410

2018-19 5612975

2019-20 6129570

 Reserve Fund

Year Amount

2015-16 35002010.06

2016-17 40005389.26

2017-18 46003158.26

 Deposit Outstanding 49002768.31

2018-19

2019-20 52002768.34
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 Deposits 2015-16 2016-17 2017-18 2018-19 2019-20

SB deposits 15853098 18071323 28071234 33608755.31 40026143.41

FD deposits 18797625 23224462 33214456 37943324 46034944
Recurring deposits 1852345 2230890 3703650 4222050.09 5435300.02
Thrift deposits 2899844 2999865 4831446 52339925 5437095
Other deposits 206220906.1 242143347.1 235449748.1 234117083.1 361342021.3
Total deposits 245623818.1 288669887.1 305270534.1 362231137.5 458275503.72

 Borrowings

The borrowings made by the Vembayam Service Cooperative Bank are loan from
NCDC .

Borrowings 2015-16 2016-17 2017-18 2018-19 2019-20

From NCDC 15245301 16206685 20192634 25999697 37460486
Total 15245301 16206685 20192634 25999697 37460486

 Loan outstanding

Loans 2015-16 2016-17 2017-18 2018-19 2019-20

Short term loan 161224 133132 142224 112123 132224
Gold loan 8437978 9067898 6132112 11217007 11925842
Ordinary loan 6202116 5432223 507534 7286858 7776954
Marriage loan 22000 22000 22000 22000 22000
Others 101577225.6 106113509.8 125413466.6 157728243.1 213077307.6
Total loan 116400543.60 120768762.82 132217336.60 176366231.1 232934327.6
0

 Investments

Year Amount

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2015-16 11235025

2016-17 15234710

2017-18 30172550

2018-19 39334560

2019-20 21418960

 Percentage of Overdue

Year Percentage

2015-16 33%

2016-17 33%

2017-18 33%

2018-19 33%

2019-20 33%

 Working Capital
YEAR AMOUNT
2015-16 302239543
2016-17 331262234
2017-18 36982344
2018-19 425663112.43
2019-20 483457543.76

 No. of Savings Bank accounts

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Years Accounts

2015-16 3450

2016-17 3520

2017-18 4221

2018-19 4530

2019-20 4949

 No. of Fixed Deposit accounts

Year Accounts

2015-16 3652

2016-17 4597

2017-18 4431

2018-19 4736

2019-20 4843

 No. of other deposit accounts

Year Accounts
2015-16 6852

2016-17 7256

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2017-18 8360
2018-19 6653

2019-20 6713

 Total no. of deposit accounts

Years Accounts

2015-16 14397

2016-17 17766

2017-18 18206

2018-19 15360

2019-20 17345

 Total no. of Loan accounts

Year Accounts

2015-16 157

2016-17 143

2017-18 182

2018-19 177

2019-20 650

 Names of Commercial Banks and Cooperative Banks in the area of

operation:

 Canara Bank
 State Bank of India

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  South Indian Bank
 Axis bank
 Bank of Baroda
 Federal Bank
 Kerala Bank etc

 Names of Financial institutions in the area:

 Muthoot Finance
 KSFE
 Manappuram Finance ltd. Etc.

 Profit or loss as per P&L account:

Year Amount

Profit –
2015-16
17954540.30
Profit –
2016-17
1231536.21
Profit –
2017-18
145473.56
Profit –
2018-19
456789.49
Profit –
2019-20
634142.16

 No. of Branches

Year No.

2015-16 2

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2016-17 2

2017-18 2

2018-19 2

2019-20 2

 Name and locker details:

No. of Lockers No. of locker

Name of the Branch
available vacant

Head Office 45

Ayirooppara Branch 60 -

Kanyakulangara Branch 90 -

 No. of employees:

Consolidated
13 13 13 17 24
salary

Commission 3 3 3 2 4

 Present trading activities:

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  Sales of Manure

Sales in Trading activity:

Year Amount

2015-16 1432313

2016-17 1862658

2017-18 2106175

2018-19 2275109

2019-20 2432820

 Gross profit or loss as per Trading a/c:

Year Amount

Profit-
2015-16
658700
2016-17 Profit-

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 765450
Profit-
2017-18
124320
Profit-
2018-19
755500
Profit-
2019-20
1533050.83

 Interest received (on loan and investment):

Year Amount

2015-16 14481472

2016-17 15561580

2017-18 15936667

2018-19 16661970

2019-20 21853560

 Interest paid (on deposits and borrowings):

Year Amount

2015-16 12780570

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2016-17 13290695

2017-18 18717068

2018-19 16700668

2019-20 23514321

 Miscellaneous Income (other than interest income):

Year Amount

2015-16 4224350.12

2016-17 4965380.23

2017-18 5683236.45

2018-19 5714735.87

2019-20 7689344.2

 Chitty Commission:

Year Amount

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 2015-16 758400

2016-17 830540

2017-18 1094325

2018-19 834650

2019-20 1221230

 Establishment and Contingency expenses:

 Year Amount

2015-16 5713250.27

2016-17 6472089.8

2017-18 5477519.72

2018-19 30321242

2019-20 12586453.76

 No. of Board Meetings:

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Year No.

2015-16 12

2016-17 14

2017-18 15

2018-19 14

2019-20 16

 No. of members in Annual General Body Meeting:

Year No. of members

2015-16 86

2016-17 75

2017-18 76

2018-19 53

2019-20 45

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 Audit Classification:

Year Classification

2015-16 B

2016-17 B

2017-18 B

2018-19 B

2019-20 B

 Targets to Employees:

 For Fixed Deposit – No

 For SB Deposit – No

 For Loans – No

 For Recovery – No

 For MDS – Yes

 CBS Facility – Yes

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 Tele Banking Facility – No

 SMS Facility – No

 IRCTC Booking – No

 Provide NEFT/RTGS – Yes

 Provide Western Union Money transfer – No

 Provide service through micro ATM – No

 Provide Mobile Apps. Banking either using QR code or other modes – No

 Present Interest rate of gold loan (period wise):

Period Interest Rate

3 month 10.5%

6 month 10.5%

12 month 11%

 Loan documentation for Mortgage Loan:

For loan documentation (generally for land mortgage loans) the

following documents are required;

 Original tax receipt

 Original deed
 Title deed
 Possession certificate

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  Encumbrance certificate of 30 years
 Sketch, plan , location certificate of the property
 Two passport size photo of the applicant
 Ration card, Identity card, Aadhar card, Pan card etc.
 Building tax receipt

 Procedure for issue of loans

The above said documents are collected along with the application
form. Then the secretary checking the documents and also doing field
visit. After the field visit secretary send the files to the legal advocate for
legal report; if any legal issues are founded, he may notify it in the legal
report. The secretary rectifies the report and submitting it in the Board
meeting. The loan is issued only after getting the approval of Board of
Directors.
 Membership
 Documentation Clearing
 Loan Form
 Legal opinion from advocate
 Site Valuation
 Gahan Registration
 Latest Encumbrance Certificate
 Submitting the reports in the Board Meeting
 Approval

 Steps taken by bank to reduce overdue

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 Unpaid amount of loans are recovered through some procedures. The sale

officer is doing the recoveries properly. The procedure are as follows:

 Phone call

 1st Ordinary notice

 2nd Ordinary notice

 Registered Notice

 After 3-6 months, filing ARC (Arbitration Reference Case)

 Details of how recovery made through ARC and Arbitration court

 Phone call

 1st Ordinary notice

 2nd Ordinary notice

 Registered Notice

 After 3-6 months, filing ARC (Arbitration Reference Case)

DAILY REPORT

19/04/2021 (MONDAY):

I went to The Vembayam Service cooperative bank and met the secretary of the
society Anitha Kumari R Ma’am. She introduced me to the staffs in the society
and gave me the byelaw of the society. The society has been registered in

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18/02/1950. It started functioning in 09/05/1951 and has extending its service
ever since with a healthy working capital of more than 48 crores at present. The
society is in Nedumangadu taluk and the area of operation of the society is
whole of Vembayam panchayath including 21 wards – Theeppukal,
Nannattukavu, Konchira, Kanyakulangara, Perumkoor, Vettinad, Mottamoodu,
Kanangode, Mulankad, Chiramukk, Panthalacode, Ayirooppara, Kuttyani,
Vettupara, Cheeranikkara, Thekkada, Mayiladam mugal, Neduveli,
Vazhaykkad, Vattavila, Karamcode.

20/04/2021 (TUESDAY):

The secretary said about the objectives and functions of the society. The society
provides core banking facilities, RTGS/NEFT for the valued customers and its
members, further more services includes locker facilities in head office and
branches.

21/04/2021 (Wednesday):

During that day the board meeting was conducted and i met some of the board
members. The board of directors consists of 11 members including one seat
reserved for SC/ST members, three seats for women members. The members of
the board of directors shall be elected by the general body among the members
for a period of 5 years as per the byelaw. The board of directors is appointed for
a period of 5 years.

23/04/2021 (FRIDAY):

They give the report of 2015-16. I read the notice and noted the important
points. 2015-16 annual general body meeting was conducted on 9 th January
2016.The main defect I noticed that the audit is not conducted properly.

28/04/2021 (WEDNESDAY):

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I read the report of 2016-17.Number of members presented in annual general
body meeting was 75. I read the day book of 12/06/2020 and noted.

30/04/2021 (FRIDAY):

I seated in the counter desk with a staff. She thought me each and every thing
during the transactions like Fixed deposit Renewal, Loans, Deposits etc.

03/05/2021 (MONDAY):

They give the registers of Recurring Deposit and Home safe deposit. And also
the application form of Home Safe deposit and its passbook.

05/05/2021 (WEDNESDAY):

They give the application forms of Fixed Deposit and Savings Bank Deposit.
The interest rate of fixed Deposit is 6 % .The interest rate of Saving Bank
Deposit is 3%.

 Total no. of deposit accounts

Years Accounts

2015-16 14397

2016-17 17766

2017-18 18206

2018-19 15360

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 2019-20 17345

07/05/2021 (FRIDAY):

I refer the Loan registers of Business Loan, Ordinary loan etc.

 Total no. of Loan accounts

Year Accounts

2015-16 157

2016-17 143

2017-18 182

2018-19 177

2019-20 650
10/05/2021(MONDAY):

I refer the MDS Register. There is 6 MDS scemes such as 3/17, 3/18, 2/19,
2/20, 3/20, 6/20.

11/05/2021 (TUESDAY):

They give the report of 2017-18. I read and noted the important points.

12/05/2021 (WEDNESDAY):

I refer the Manure register of the society.I get details regarding the sales of
trading activities

13/05/2021 (THURSDAY):

I refer the Trading and Profit & Loss account and Balance Sheet of the society.

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 Gross profit or loss as per Trading a/c:

Year Amount

Profit-
2015-16
65870
Profit-
2016-17
765450
Profit-
2017-18
124320
Profit-
2018-19
755500
Profit-
2019-20
1533050.83

 Profit or loss as per P&L account:

Year Amount

Profit –
2015-16
17954540.30
Profit –
2016-17
1231536.21
Profit
2017-18
145473.56
Profit –
2018-19
456789.49
Profit –
2019-20
634142.16

14/05/2021 (FRIDAY):

They give the application of Gold Loan and the register.

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 Present Interest rate of gold loan (period wise):

Period Interest Rate

3 month 10.5%

6 month 10.5%

12 month 11%

CONCLUSION

The Vembayam Service Co-operative Society plays an important role in

developing the economy as well as the social relations. A small depositor or a
small borrower feels comfortable in dealing with the local staff of this society
than the staff of nationalized banks and private sector bank. The audit
classification of the society is B for several years.

From the study, it has been found that the overall financial performance of The
Vembayam Service Co-operative Bank ltd.No 3121, during past five years

29
commencing from 2015-16 to 2019-20 was an average trend. It is an
agricultural banking institution, but the institution gives less importance to the
agricultural sector. The main activity of the society is to collect different types
of deposits and lending it to the public for reasonable rate. The analysis of the
financial data reaches a conclusion that the society is currently at a profitability
position.

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