INTENSHIP REPORT

CORDITE FACTORY CO-OPERATIVE BANK LTD.,

ARUVANKADU.

Submitted in partial fulfillment of the requirement for the Award

of degree of

Submitted By

K. ADHULYA
(21UBCA01)

BACHELOR OF COMPUTER APPLICATIONS

PROVIDENCE COLLEGE FOR WOMEN (AUTONOMOUS)

COONOOR- 634014

JULY– 2023

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 DECLARATION

I hereby declare that this report entitles “A REPORT ON I NDUSTRIAL TRAINING

UNDERTAKEN AT CORDITE FACTORY CO-OPERATIVE BANK LTD.,
ARUVANKADU.” Submitted to Providence College for Women (AUTONOMOUS) in partial
fulfillment of the requirement for the award of the degree of (Bachelor of Computer
Applications) is a record of original report work done by K. ADHULYA (Reg. No:
21UBCA01).

Place: Coonoor Signature of the

candidate Date:

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 CERTIFICATE

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 CONTENT
S. No CHAPTER Pg. No

1 INTRODUCTION
 History of Cordite factory co-operative bank
 The teams followed by bank for last One year
(2021-2022)

2 COMPANY PROFILE

3 DEPOSITS
● Fixed Deposit
● Recurring Deposit
● Thrift Deposit
● Interest rate on Deposit

LOANS, TYPES OF LOAN

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● Surety loan
● Deposit loan
● Detail about Thrift loan
● Detail about Jewelry loan

5  BOARD
 Objective of co-operative bank
 Co-operative principal

6  Challan
 RD
 Adjustments
 Paying slip

7 CONCLUSION

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 A INTERNSHIP REPORT UNDERTAKEN AT

CORDITE FACTORY CO-OPERATIVE BANK LTD.,

ARUVANKADU

INTRODUCTION:

HISTORY OF CORDITE FACTORY CO-OPERATIVE BANK:

Cordite Factory co-operative Bank N0.K.350 located at Aruvankadu Coonoor Taluk Nilgiris
District Registered on 10.02.1924 was made and has been functioning since 14.02.1925.
This is the 98th year that the bank has been operating. The audit of the bank for the year 2021-2022
has been completed and it has been placed in ‘A’ class.
As the bank comes under the control of the Reserve Bank of India, it is subject to RBI audit
every two years. The review of RBI for the financial years 2018-2019 has been complete and the
remedial report has been submitted and finalized according to this report the bank continues to be
in ‘A’ grade.

THE TEAMS FOLLOWED BY BANK FOR LAST ONE YEAR (2021-2022)

1. NUMBER OF MEMBERS AND AMOUNT OF PAID UPSHARES

In the last financial year 2021-2022 the bank was functioning at the beginning with 1203
members with a share capital of Rs.38731lakh and at the end of the financial year. 2021-2022 the
bank was functioning with 1070 members with a share capital of Rs .356.43 lakh. It is functioning
in the financial year 2022-2023 with 1016 members with a share capital of Rs .40096 core. There
is no government share in this.

2. DEPOSITS

At the beginning of the financial year 2021-2022, the bank’s deposits stood at Rs.2443:62
lakh. It has increased to Rs .2460.28 lakhs at the end of the financial year 2021-2022 Provision for
the financial year 2022-2023 were Rs.2352.12 lakhs at the end of 31.03.2023.

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3. MEMBER LOANS

At the beginning of the financial year 2020-2021, the member loan balance of the bank was
Rs.1619.80 lakhs .1840.05 lakhs at the end of the financial year 2021-2022. In the interest of the
bank, new jewelry loan, festival season loan and car loan have been stated in the bank.
In the current financial year till 31.03.2023 Rs.1603.63 lakh loan has been given and currently
there is a loan balance of Rs.2131.33 lakh.

4. CLASSIFICATION AND ALLOCATION OF NON -INCOME GENERATING ASSETS

At the year 2021-2022, there is Rs.131.81 lakh accrual loan allocation for this compared to last
year Rs.74.87 lakh is to be allocated during the audit. During the financial year 2022-2023, the
outstanding loan was collected at Rs.42.12 lakh and at the end of the year 2022-2023, the
outstanding loan is Rs. 89.69 lakh, the net interest percentage of the bank is 0.72 percent.

5. RATIO OF RISK WEIGHTED ASSETS TO CAPTIAL

The bank’s risk adjusted assets to capital ratio (CRAR) was 26.59 percent in 2020-2021. It
was 27.76 percent in 2021-2022. It stood at 30.81 percent at the end of FY 2022-2023. This is
above the minimum requirement of 9 percent.

6. INVESTMENTS
The Bank had invented Rs. 729.26 lakh Government Bonds and central co -operative Bank in
the last year 2022-2023, Rs.691.38 lakhs have been invested.

7. PROFIT AND LOSS ACCOUNT

In the audit year 2020–2021 the bank made a net profit of Rs.41.77 lakhs. The
bank distribution the maximum dividend of 7.40 percent to the members of the bank. In the year
2021-2022 the profit of the bank was Rs .31.76 lakhs as per law profit sharing has been done and
6.25 percent dividend has been given to the members. In the current financial year as on
31.03.2023 the profit of the bank is Rs.69.71 lakhs.

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8. CORE BANKING ACTIVITY OF THE BANK
All the work to make the bank into core banking has been complete. All the related personal
accounts, profit and loss accounts and balance sheet have been implemented in core banking
system since 17.03.2018.

9. OTHERS
For the benefit of the members of the bank, a jeweler loan unit and a personal safety deposit
box facility have been established in the bank.

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 COMPANY PROFILE:

Number and name of the society : K.350 CORDITE FACTORY CO-OPERATIVE BANK
Ltd.,

Postal address : ARUVANKADU

COONOOR

THE NILGIRIS

Type of society : LIMITED LIBILITY UNDER B. R. ACT

Date of registration : 10.02.1924

Date of starting : 14.02.1925

Registered State : TAMIL NADU

Company Status : ACTIVE

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 DEPOSITS

We learned about Deposit. there are three types of they are following below:

a. Fixed Deposit
b. Recurring Deposit
c. Thrift Deposit.

a. Fixed Deposit

“Fixed Deposit” is a financial instrument provided by Society to its members with a higher
rate of interest until the given maturity date. It may or may not require the creation of a separate
account, Fixed deposit considered to be very safe investments.

b. Recurring Deposit

A depositor can hold a recurring deposit account for a minimum period of 12 months and a
maximum period of 120 months. The amount of deposit that can be made can be a minimum of Rs.
500 and above. Senior Citizens will get an additional benefit of an extra 0.50% interest hike on the
recurring deposit.

c. Thrift Deposit

Thrifts loan are essentially savings and loan associations that help members' savings grow at a
higher interest rate.

Interest Rates on Deposit

The Bank offers the following rate of interest on various deposit as per the direction of
Reserve Bank of India with effect from last year (25.04.2022).

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Team deposit

From 1 month to 6-month 4.00% percentage

From 7 month to 12-month 7.00% percentage
From 13 month to 36-month 6.00% percentage

Senior citizens [senior citizen means the person who is above 60 year they are called senior
citizens] [one year and above] Additional Rate of Interest at0.50%]
One of the Cordite Factory employees can apply the loans.
The outsiders have few procedures they can’t apply every loan. Only specific loans are
available for outsiders

RECURRING DEPOSIT FORM

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 LOANS

Meaning of loan:

Funds borrowed by an entity from another entity, repayable after a specific period carrying
Interest are rate known as loan.

TYPES OF LOAN

The following are types of loan which is given by the bank.

A. Surety loan

B. Deposit loan

C. Thrift loan

D. Jewelry loan

a. SURETY LOAN

A surety involves a promise by one party to assume responsibility for the debt obligation of a
borrower if the debt obligation of a borrower if that borrower default.
The person providing the promise is also known as surety.

b. DEPOSIT LOAN
When you invest in a bank fixed deposit you can easily get a loan against it without having to
break it. This like a personal loan.

 ELIGIBILITY:

The surety loan is only eligible for the employee of the Cordite Factory Aruvankadu.
The Deposit loan is eligible for both employee and non-employee.

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 LOAN LIMIT:

The loan limit for surety loan is Rs. Five lakhs.

The loan limit for deposit loan is 85%.

 INTEREST RATE:
The interest rate for surety loan 10%.
The interest rate for deposit loan 2%.

 TIME PERIOD OF THE LOAN:

The time duration for the surety loan is 120 months.
The time period for the deposit loan is on maturity.

 DOCUMENT REQUIRED FROM APPLICANT:

a. Pay slip.
b. Saving account
c. Passport size photo

DETAIL ON THRIFT LOAN:

Thrift loan are essentially savings and loan associations that help members' savings grow at a
higher interest rate.
In cordite factory co-operative bank 85% of deposit loan amount is provided as thrift loan.
The interest provide to the thrift loan is plus two percentage of their deposit amount.

Example: the amount of which is deposited at the bank is 2,00,000. The normal interest rate is
5%. Thus, the thrift loan interest rate is 7% (5%+2) =7%

Only the member of cordite factory can obtain the thrift loan, non-member of cordite factory
cannot able to get thrift loan.
No there is no need of surety fir thrift loan.

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Calculation of thrift loan

Assume that the deposited amount is 2,00,000 and interest provided for deposit amount is
5%then the thrift loan is provided for.
(2,00,000* 85% /1200) =17000 (interest =7%)
The interest rate of one month will be (1011) for 2,00,000.

What is thrift and credit?

What is meant by thrift and credit is to encourage the poor to save some money from what
they use for their regular expenses, and help them to avail small loans from their savings. Every
member brings a pre-decided amount (this amount is decided by the group) to the weekly group
meetings.

Importance of credit co-operative society

A credit co-operative society is a credit institution owned and controlled by its members.
Credit co-operative societies are registered with the primary goal of advancing the economy and

society by providing affordable credit at fair interest rates and financial assistance to its members .

Application of thrift loan:

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 DETAIL ON JEWEL LOAN

The gold loan, also referred as a loan against gold, is a secured loan that a borrower takes
from a lender in lieu of gold ornaments such as gold jewelry. The loan amount sanctioned to you
by lenders is generally a certain percentage of the gold’s value. You can repay it through monthly
installment after which you get your gold articles back. Unlike other secured loans such as a home
loan or car loan, there are no restrictions on the end use of gold loans. So whether you need to fund
a wedding, family vacation or your child’s education, it is a great way to meet your sudden money
requirement. Moreover, a lot of private and nationalised banks along with NBFCs offer gold loans
at affordable interest rates.

The loan obtains by pledging, the gold is called jewel loan. According to the cordite factory
co-operative bank the jewelry must be pure gold, while pledging also the member of the ban can
check it whether is gold or not.
The interest provides for jewel is.
1 year =8.50%
Penal interest
} =2%
(More than one year)

How Does Gold Loan Works?

The entire process of gold loan is quite similar to other secured loans. In this, you take your
gold articles to a lender along with the required set of documents. The lender evaluates the gold
articles and verifies the submitted documents. As per the evaluations, the lender sanctions the loan
amount. As per the loan agreement, you pay off the principal amount along with the interest
amount and get the pledged gold articles back.

¼ poun = 2 grams

½ poun = 4 grams

¾ poun = 6 grams

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1 poun = 8 grams

CALCULATION OF JEWEL LOAN:

= 25000*15*11%*36500
= 25000+113 interest for 15days
=25113

BOARD

In the cordite factory co-operative bank, they are conducting elections for selecting board for
selecting board members.
According to this bank they have 3 labour union in the factory.
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The candidate who wants to represent in the kind of election, they must be a member in the bank.
In each union 12 member should stand for election one is to elect President and the voice president
remaining are the board member of co-operative bank.

OBJECTIVES OF CO-OPERATIVE BANK

 Membership of the co-operative society is open to all, who have a common object of providing
service without expecting returns on it. The member can join and leave society as per their
wishes.

 Capital Invested for the society is contributed by the member and various grants and subsidies
are received from the government for the smooth processing of business.

 A cooperative society is registered under the Cooperative Societies Act, it is a separate legal
entity where the liability of its member is limited. It can run the business under its name.

 Where the cooperative society earns more profit while conducting its business operation, it is
distributed among the members based on their participation in business.

 Promotes Democracy

 Ease of formation

 Limited Liability

 Equal distribution of surplus

 Stable existence

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CO-
OPERTIVE
PRINCIPLE

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 VOUCHER

Written documentation supporting the entries reported in the account books, indicating the
transaction’s accounting accuracy, can be referred to as a voucher.

For example, a bill, invoice, receipt, salary and wages sheet, pay-in-slip counterfoil, cheque book
counterfoil, or trust deed.

A voucher is a redeemable form of transaction bond that is worth a particular

monetary value and can only be used on specific grounds or specific goods Any

VOUCHER

CHALLAN

A challan is an official paper that is issued to the motor vehicle driver who violates the traffic
rules and regulations in India. When a traffic challan is being issued in your name it implies that
you are responsible to pay the penalty depending on the type of offence made by you as per the
Motor Vehicles Act, 1988.
ADJUSTMENTS

An adjustment is the use of mechanisms by a central bank to influence a home currency's

exchange rate. An adjustment is specifically made if the exchange rate is not pegged to another
currency, meaning that the currency is valued according to a floating exchange rate.

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 PAYING SLIP

Pay in slip are used when someone goes to a bank because they need to deposit money into
their bank account. When entering, they either spot a stack of pay in slips or, they speak to the
bank clerk and tell them about the operation they want to do.

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BANK COPY:

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 CONCLUSION

The Industrial training at CORDITE FACTORY CO-OPERATIVE BANK LTD.,

ARUVANKADU helped me to have a good knowledge about how a bank operates. It further
enriched my knowledge in the process of the ban have also gained a lot of practical exposure and
knowledge from this training which would be very helpful for me in the future. In this short span
of training, the company management has provided me to do my training. And I also express my
sincere gratitude to each and every staff for their guidance in completing my training successfully.

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