final _Autosaved_

"A STUDY ON LOAN PORTFOLIO WITH SPECIAL REFERENCE TO ARYA VYSHYA
SRI RAMA CO OPERATIVE SOCIETY LTD".
Chapter -1
INTRODUCTION
Edurite College, Alkola, Shivamogga. Page 1

CHAPTER -1
INTRODUCTION
Introduction to project
Project work is an important part of the academic curriculum of University, M Com program. It
is a learning experience which bridge the gap between knowledge and it's application through a
series of intervention that will enable students to obtain insight and exposure to the industry.
The project is for six weeks which has been positioned during 4th semester of M Com as it
serves the motive of providing critical business insight to student and also help in completing the
graduation
The project- work- titled " A Study On Loan Portfolio With Special Reference To Arya Vyshya
Sri Rama Co-operative Society Ltd" shivamogga. is undertaken to fulfill the requirement of the
course of M Com .
This project is expected to give an opportunity to apply the theoretical knowledge in the
corporative environment. It an analytical study of loan portfolio to throw light on the loan
portfolio mechanism of Arya Vyshya Sri Rama Co-operative Society. It also gives insights into
the general performance of the Indian Co-operative Society System.
INDUSTRY PROFILE
Co-operative: An overview
Co-operative movement in our country shall not only stay but also grow in times to come.
Regardless of the downsides experienced in the working and organization of the co-employable
social orders, they have decidedly added to the development and improvement of the national
economy. Promotion of thrift, self-assist and mutual resource are the fundamental principles of
co-operation. The orientations of commercial company and co-operative companies are
essentially exceptional. In a commercial organization, earning and maximizing the profits is the
sole motive; whereas in a co-operative organization profit cannot be the sole motive.
Broadly speaking there are three sectors working in the Union of India.

PUBLIC SECTOR wherein the State i.e. The Union of India and the respective State
Government adopt developments projects which can be utterly owned by using either the Central
Government or the State Government.
PRIVATE SECTOR which is a sector where private enterprises are permitted in certain fields
of economic activities.
CO-OPERATIVE SECTOR which is beautifully blended in between a public sector and the
private sector. It has benefits of both the sectors and disadvantages of neither of them.
Meaning and definition of co-operative:

Definition: In the year 1995The International Cooperative Alliance (ICA) defines co-operative
as – “A co-operative society is an autonomous association of persons united voluntarily to meet
their common economic, social and Cultural wishes and aspirations through a mutually- owned
and democratically –controlled company”.
History of co-operatives in India:

The co-operative movement in India owes its starting place to agriculture and allied sectors.
Towards the cease of nineteenth century the issues of rural ineptness’ and the consequent
conditions of farmers created an surroundings for the chit finances and co-operative society. The
farmers commonly determined the co-operative motion an attractive mechanism for pooling their
meager sources for fixing commonplace issues concerning credit score, assets of inputs and
advertising and advertising of agricultural produce. The experience gained in the working of
cooperatives led to the enactment of Co-operatives Credit Societies Act, 1904. Subsequently, a
more comprehensive legislation called the cooperative society Act was enacted. This Act, inter
alia, provided for the introduction of the put up of registrar of cooperative societies and
registration of cooperative societies for various functions and audit. Under the Montague
Chelmsford Reforms of 1919, cooperation became a provincial challenge and the provinces were
legal to make their personal cooperative legal guidelines. Under the government of India Act,
1935, cooperatives were treated provincial subject.

In the view of tips, special states drew up various schemes for the cooperative movement
for organizing big length societies and provision of the State partnership and help. During
1960‟s, in addition efforts were made to consolidate the cooperative society by their re-
organization. Consequently, the number of primary agricultural cooperative credit societies was
reduced from around two lakhs to ninety-two thousand.
Evolution in cooperative society:

In 1958 the National Development Council (NDC) had encouraged a countrywide
coverage on cooperatives, Jawaharlal Nehru had a strong faith within the cooperative motion.
The cooperative sector has been playing distinct and significant role in the country’s progress in
socio-economic development. There has been substantial growth in this sector in diverse area of
economy during past few decades. The number of all the types of cooperatives increased from
1.81lakhs in the year 1950-51 to 4.53 lakhs in 1996-97. The overall club of cooperative societies
extended from 1. Fifty-five crore to 20.45 crore at some stage in the same period.
The cooperatives were operating in the numerous regions of economy together with
credit, production, processing, marketing, enter distribution, housing, dairying and textiles. The
cooperatives have performed achievement to a volume however there are larger areas wherein
they have no longer been so a success. The failure of the cooperatives in the country is mainly
attributable to: lack of active participation of members in the management of cooperatives.
Mounting over dues in cooperatives credit intuitions, loss of mobilization, over –dependence on
authorities, lack of professional management, bureaucratic manipulate and political interference
have proved dangerous to their increase. These are the regions which needed to be attended to by
using evolving appropriate legislative and policy support.
The co-operative principles under which a co-operative society operates and carries out its
business are:
 Voluntary and open membership
 Democratic control, one member one vote.

 Autonomy and independence

 Promoting economic activities
 Promoting education and information technology
 Co-operation among co-operatives
 Concern for the social and ecological environment
The objectives of co-operative society are:
 Enhanced co-operation
 High level of service
 Higher profits
Characteristics of co-operative society:

 Voluntary association
 Separate legal entity
 Democratic management
 Service motive
 Utilization of surplus
 Cash trading
 Fixed rate of return
 Government control
 Capital formation

ORGANIZATION PROFILE
The Arya Vyshya Sri Rama Sahakara Sangha Niyamitha is a credit Co-operative Society,
it was established on 22nd November 1924 and registered under Co-operative Societies Act of
1931, has completed its useful service of 95 years in Shivamogga city.
A co-operative society is an autonomous association of persons united voluntarily to meet
their common economic, social and cultural needs and aspirations through a jointly- owned and
democratically –controlled enterprise.
A co-operative society is another means of for forming a legal entity to conduct business
besides forming a company. It pools together human resources in the spirit of self and mutual
help with the object of providing services and support to members.
History of the Society:

Before 1924 in Shivamogga city, there were only one or two co-operative societies which
were also not running well. Moreover these co-operative institutions never used to encourage the
financial aid to the people of Arya Vyshya community. In such a situation, a few leaders of the
community firmly decided to establish a co-operative society by keeping aside their own
personal work. Some of the people who took initiative for established of society were:
 Sri. Changiri Ramaswamy Shetty.

 Sri. Changiri Govindaswamy Shetty.
 Sri. Belagur Venkanna.
 Sri. Malur Y Venkatappa.
 Sri. M. Nagappa Shetty.
 Sri. Satare Sheshgiriyappa
 Sri. Hosadurga Srikantappa
 Sri. D. Manjappa
 Sri. D.Narayanappa
 Sri. K. Venkatarayappa.
 Sri. D.V. Ramaiah.
 Sri. Rajagiri Kalingappa.

And other important persons of Arya Vyshya went to many houses and made persons to join the
society and collected Rs. 25/- for each share of society and on 22nd November 1924, the society
was registered under the name Arya Vyshya Sri Rama Co-operative Society Limited.
Success story of the society:

In the initial stage itself, the Arya Vyshya Sri Rama Co-operative Society had collected
the share amount of Rs. 2035/- at Rs. 25/- per share and Rs.969/- as deposit money and it had
given a loan of Rs. 3145/- to its members. Total transaction was Rs.5145/-. The first year net
profit was Rs. 254/- in this process 59 members gained 9% profit on their investment. A
significant feature of this society is that it had gained profit, which no other society or
organization has achieved in its very first year. Due to the
efforts of the elders, the society earned good profit. From 1924-25 to 1934-35, “The Shivamogga
Arya Vyshya Sri Rama Co-operative Society Limited” was functioning in the premises of “Sree
Janardhana Swami Temple”.
From 1935-36 to 1944-45, this society was serving in the name of “Shivamogga Arya Vyshya
Sri Rama mutual society ltd. In 1940, society purchased its own building at the cost of Rs.6000/-.
After improving in 1945-46, the society changed its name as “Arya Vyshya Sri Rama co-
operative society bank limited”.
The Arya Vyshya society developed day by day because of their sincere and impartial service. It
celebrated its “Silver Jubilee” on 18th December 1950, under the president ship of Sri.
H.Siddayya. B.A., L.L.B., who was the Revenue Minister in the Mysore Kingdom. In that year,
there were 277 members, Rs.81612/- was share capital and it had collected the deposit amount of
Rs.22273/-. It had provided loan of Rs.125727/- for the improvement of the members business.
The total transaction of the society was Rs.140088/- the society earned the net profit of Rs.7908/-
It had paid a share dividend at 6% to its members.
Till 1964-65, the society worked in the name of “Arya Vyshya Sri Rama Co-operative Bank
Limited”. Due to many reasons in 1965-66, the society changed its name as “Arya Vyshya Sri
Rama co-operative society limited”.
In the year 1967-68, “Arya Vyshya co-operative bank and societies conference” of Mysore State
was held in Hubli. At this time there were many Arya Vyshya society working in big cities

among the entire Arya Vyshya Sri Rama Cooperative Society got award for its activities and best
business transaction. For this purpose it had won rolling shield and it shows the Arya Vyshya
Co-operative character and punctuation.
In 1973-74, with the President ship of Sri S R Ramaiah Shetty, the society celebrated its “golden
jubilee” A golden jubilee hall was constructed for the memory of the golden jubilee functions.
In 1977-78, in Shivamogga city 20th Karnataka Arya Vyshya societies and banks conference was
held successfully in the presence of Sri Puttu Gopalakrishna Shetty of Arya Vyshya co-operative
society, head office, Mysore.
In 1983-84, Shivamogga district co operative union limited had conducted a conference. In that
conference Arya Vyshya Sri Rama Cooperative Society, Shivamogga got certificate for its
service to its members.
In the year of 1983-84 there were 1504 members, Rs.10,35,625/- share capital and deposit
amounted to Rs. 3089519/- and had given a loan of Rs.3895687/- for members. It had made a
total transaction of Rs. 11967797/- and made a profit of Rs. 174809/-. It had given a share
dividend at 12% to its members.
In the year 1984-85, the society had provided the following loans to the business for the purpose
of improvement of business:
On the surety of the other person Rs. 15000/- at 16% for 40 months.
On the surety of golden ornaments Rs. 15000/- at 18% for 12months.
On the surety of house property Rs. 50000/- at 18% interest for a period of 40months.
On the surety of vehicles, Rs. 20000/- at 18% interest for period of 40months.

In the year 1989 “Members Welfare Fund” was introduced with the membership fees of Rs.
250/- on the death of members it provides Rs. 8000/- as compensation.
In that year computer technology was introduced, all the transaction of the society like, accounts
maintaining, deposit made by members, loan takes by members etc., have made through
computer in “Kannada Language”. The society made a plan to adopt “Local Area Network”
system in the computer.
In the year 1991, the society made a plan to construct new building at Kuvempu Road and started
to construct the building with the investment of Rs. 15lakh/-
In the year 1993 “Future fund deposit scheme” was introduced for example under this scheme, if
the members made deposit of Rs. 2000/- . The society makes refund of amount after 25years
amounted to Rs. 110010/- for this at 13% to 16% p.a.
In the same year, it introduced another scheme named “Educational –fund endowment scheme.
Under this scheme, it distributes Rs.40000/- to the students of its members. Recently it is also
encouraging handicapped students with the help of this fund.
On 1st November 1997, the society had been awarded with “Kannada Rajyosthsava Prashasthi”
in appreciation of its initiative and success achieved by it in the total adoption of computerization
of data processing in Kannada.
On 31 April 1998 new building at Kuvempu road was inaugurated and the society has been
shifted there on 15th of June 1998 and the old building was sold to Sree Kanyakaparmeshwari
temple Arya Vyshya Mahajana samithi®. Gandhi Bazar, Shivamogga.
From 1996to 1999 their society was serving in the name of Arya Vyshya Shri Rama co operative
society ltd.” Due to use of Kannada language for their operation they changed their society name
into “Arya Vyshya Sri Rama Sahakara Sangha Niyamitha” in 1999.
In 2000-01, there were 2562 members , Rs. 6447225/- share capital, deposited amounted Rs.
55481683.36/- .it had given loan of Rs. 33080050/- to its members and made a profit of
Rs.1536000/- and announced 17% dividend to the shareholders.
Till the year 2002-03 there were 15 directors in the board of directors committee and from then
onwards it has been reduced to 9 members in which one seat is reserved for women

candidate. In the same year the society had introduced domestic purpose loans, LIC policy loan
to facilitate the members.
In 2005-06 the directors of the BOD committee has been increased to 11 members and 1 seat is
reserved for women candidate. In the same year the society had been awarded by the district co-
operative union, Shivamogga and by Karnataka Arya Vyshya Mahasabha for best co-operative
society and for best president ship to Sri. H.Maheshwara Shetty.
In the year 2009-10, society been awarded with “Sahakara Shri Prashasthi”.
VISION STATEMENT
To maintain excellence in service.
MISSION STATEMENT
To create awareness among the society members about deposit and saving and
encouraging them for their self development.
QUALITY POLICY
Arya Vyshya Sri Rama Sahakara Sangha Niyamitha, the members is at the heart of the
strategy. This is why the quality policy implementation through the system of management
quality cleverly combines compliance with bye-law.
The society values of leadership, customer listening, compliance and professionalism are
promoted with well trained, motivated and engaged around the management for employees
achieve a clear defined objective of society perfection.
Members of the society are regularly informed of developments in products, services and internal
organizations.
Managerial decisions are then taken by the top management to improve the quality of services
for optimal customer/ member satisfaction.

PRODUCTS / SERVICE PROFILE
Deposits
The main source of fund of this society is share capital collected from shareholder which
is limited to one crore and acceptance of deposits from members. The society collects surplus
money from the members as deposits for the society of public, money collected are preserved by
banks and interest at a certain rate is given on the amount of deposits, the deposits are
beneficiary because they get a certain rate of interest of deposits, besides the safety of their
amount on the other hand, the society can earn some money on the amount collected in the form
of deposits. To suit the various requirements of deposits, the society has introduced different
schemes. They are as follows:
 Saving deposit.
 Fixed deposit.
 Kalpavruksha deposit.
 Kanyaka cash deposit.
 Suvarna mahotsava Avarthaka deposit.
 Bhavishyanidhi deposit.
 Lockers rent deposit.
Loans
Society is providing various kinds of loans to its members with the reasonable rate of
interest. Its core intention is all round development of its members.
Kinds of loans available in Arya Vyshya Sri Rama Sahakara Sangha Niyamitha Sangha
are as follows:
 Self loan.
 Joint loan.
 Gold loan.
 Silver loan.

 Mortgage loan.
 Building expansion/construction loan.
 Commercial building/construction loan.
 Land/ site mortgage loan.
 Vehicle loan
 Two wheeler loan.
 Three wheeler loan.
 Four wheeler loan.
 NSC loan.
 Business improvement loan.
 Self employment loan.
 Education loan.
 Fixed deposit loan.
 Over deposit loan.
 Insurance policy loan.
 Household article loan.
LENDINGS OF THE SOCIETY:
Society is providing various kinds of loans to its members with the reasonable rate of interest.
Its core intention is, members should have overall growth and development in their life and to
achieve higher ranks/benchmark in the world.
Types of loans can be categorized into three major groups namely, Secured Loans, Non-
Secured Loans and Depository Loans.

AREAS OF OPERATION
Arya Vyshya Sri Rama Sahakara Sangha Niyamitha Limited operates in all the areas of
Shivamogga district except Sagara taluk.
INFRASTRUCTURE FACILITY
Since 1991 the society building is been located at kuvempu road with investment of
15lakhs. There are 11 staff members. Members are served at best with the help of updated
software called softtech to all the 6 computers in society and good interior designed.
Table 1.1: Table showing a Present Chairperson, Directors and Secretary of the Society
Present chairperson, Directors and Secretary of the society:
Chairperson Sri D.M Aravinda
Vice Chairperson Sri S.V Bharath
Director Sri K.G Nataraj
Director Sri B.N mangunth
Director Sri G .V sridhara Guptha
Director Sri B.A Ranganth
Director Sri M.H Vikram
Director Sri V Chethan
Director Sri S.K Sheshachala
Director Sri S .J Ashwathanarayana sheety
Director Sri K.V Surendra

Director Sri Mye,na Subhramaya
Director Sri C.R nlNagabhushana
Director Smt. Ujvala Ravi
Director Smt. Sudha Myenasu
Organization structure:
The structure of management of the AryaVyshya can be shown in chart as follows:
Share Holders
President
Vice president
Directors
CEO
Accountant
Clerk/cashiers

COMPETITOR’S OF THE SOCIETY
Padhavi Darara Sahakara Sangha Niyamitha [Graduate society]

City co-operative society
Vishveshwaiya co-operative society
Ganapathi co-operative society
FUTURE GROWTH
Arya Vyshya Sri Rama Sahakara Sangha Niyamitha Sangha has decided to extend its
branch in Gandhi bazaar, near vasavi tower, Shivamogga. And also they have an e-stamping
branch in old building near Sree Kanyakaparmeshwari temple. Arya Vyshya
Mahajanasamithi®. Gandhi Bazar, Shivamogga.
SWOT Analysis
SWOT Analysis of Arya Vyshya Sri Rama Sahakara Niyamitha Sangha:
Strength:
The society has good number of members that is 2802 as per year 31march 2013
Friendly service is provided.
Properly infrastructure facility.
Encouragement to handicapped students by providing loan at reasonable interest rate.
Weakness:
The services are provided only to the community members.

Opportunity:
Can compete with banks if they extend their service to other community people.
Can extend their corporate social responsibility to poor children.
Threat:
Banks play as major competitor to cooperative societies.
Table No-1.2: Profit and Loss Account As on 31/3/2017
Expenditure Amount Income Amount
Interest paid on 6533679.98 Interest received 18077573

deposit
Interest paid on 2485853 Penal interest received 121923

borrowings
Staff salary and 1434625 Interest received on 3746271

Administration investment
expenses
Other expenses 2973289 Other interest 3651.77
Net profit transfer to 8926294.79 Other income 386314

p/l
Total 22353732.77 Total 22353732.77

Table No - 1.3: Balance sheet As on 31/3/2017
Liabilities Amount Assets Amount
Share capital 31470775.00 Cash 890131.20
Reserve fund and other 19929635.00 Balance with other bank 887214.04
reserve
Other fund 15188998.56 Deposit with other bank 60000.00
Depreciation 9057222.70 Investment in fund 2000000.00
Deposits 102366896.69 Investment in bank 46700916.00
Other deposits 4417000.00 Other investments 1617118.00
Borrowing other banks -3729417.71 Advances- secured 115824598.00
Staff deposit 90000.00 Advances- unsecured 6258574.00
Interest payable 202772.46 Advances- on deposits 5895875.00
Other liabilities 7305373.90 Furniture and fixtures 9045185.19
Net profit 10080821.29 Income tax dispute 1678942.85

amount
Advances- other branch 5572723.61
Total 196431277.89 Total 196431277.89

Table No- 1.4: Profit and Loss Account As on 31/3/2018
Interest paid on deposit 726908.38 Interest received 17928683.5
Interest paid on 112115 Penal interest received 164413

borrowings
Staff salary and 1680164 Interest received on 4447585

expenses
Other expenses 3024834 Other interest 1707.62
Net profit transfer to p/l 11880087.64 Other income 1451719.9
Total 23994109.02 Total 23994109.02

Table No-1.5: Balance sheet As on 31/3/2018
reserve
Borrowing other banks 5861290.79 Advances- secured 134432304.00
Net profit 13315731.22 Other Assets 1018622.90
Total 220067898.95 Total 220067898.95

Table No- 1.6: Profit and Loss Account As on 31/3/2019
Interest paid on deposit 7861458.28 Interest received 18611770
Interest paid on 289948 Penal interest received 3781245.03

borrowings
Staff salary and 3121079 Interest received on 526588.92

expenses
Other expenses 556380.49 Other interest _
Net profit transfer to p/ l 11357992.18 Other income 267254
Total 23186857.95 Total 23186857.95

Table No-1.7: Balance sheet As on 31/3/2019
reserve
Borrowing other banks -4425146.20 Advances- secured 147007534.00
Net profit 12922518.65 Other Assets 1025549.90
Total 222574046.24 Total 222574046.24

CHAPTER-2
CONCEPTUAL BACKGROUND AND

LITERATURE REVIEW

CHAPTER -2
CONCEPTUAL BACKGROUND AND LITERATURE REVIEW
Loan port folio

Loans that have been made or bought and are being held for repayment. Loan portfolios are the
major asset of banks, thrifts, and other lending institutions. The value of a loan portfolio depends
not only on the interest rates earned on the loans, but also on the quality or likelihood that
interest and principal will be paid.
Loan is monetary value, property or other assets given by one party to another party and loan has
to be repaid back along with interest.
Loan portfolios are the important asset of most of the lending institution like banks and other
financial institutions. The loan portfolios are those assets that are considered as assets in the
balance sheet of the lenders. The loan portfolio value depends on the interest, principal and
borrower's credit worthiness.
For all practical purpose no loan should ever be made without security. Security means an asset;
movable or immovable, obtained to secure loan granted by a bank. Security obtained not only
protect the interest of the bank at the time of default made by the borrower but also provide
psychological advantage to the banker.
Definition of loan portfolio
Loan portfolio means a portfolio of claims (either loans, invoices or other debt) which have not
been paid upon their maturity and/or on their due dates.
Loan Portfolio means, collectively, all of the Company Loan Investments from time to time
acquired by the Company.
Loan Portfolio means all of Borrower’s Portfolio Loans and Purchased Participations, all
Portfolio Loan Collateral, the Books relating to the Portfolio Loans and Purchased Participations,

all Collections and other proceeds in respect thereof, and all rights to payment and enforcement,
and all remedies and powers related thereto.
DIFFERENT TYPES OF LOAN
Secured loan
It is loan against which the customer pledges property or any asset as a collateral for the loan
taken. As the loan is secured by the collateral asset in case of default by the customer the lender
can take the procession of the given as security and realize the entire amount through lease or
sale of the property.
Example:
 Mortages
 Home equity line of credit
 Auto loans
 Business loan
Unsecured loan
This type of loan is issued by the lender to the borrower without any assets as collateral security
in order to secure the loan. The loan is given to borrower based on the credit worthiness of the
borrower rather than the collateral assets.
Example:
 Revolving loan
 Term loan
 Consolidation loan

LITERATURE REVIEW:
1. The Indian Co-operative society Act 1912 defines a Co-operative institutions as "a society
whose objective is to promote the economic interests of its members in accordance with co-
operative philosophy".
2. According to Calvet, a Co-operative society is a " a form of organization where in people

willinglycome together on the basis of equality for the advancement of their own wellbeing".
3.According to Mr. Talmaki, he defined it as An association of theweak, who gather together for
common economic need and try to,if themselves and others out of weakness into strength
through business organization conducted for the common benefit of all who join it´.
4.According to professor Lambert observes. Co-operation as anenterprise formed directed an

association of uses, applying withinitself the rules of democracy and directly intended to serve
both itsown members and community as whole´?
5. Dr.H.N Kunzeennotes that " Co-operative is both self-help and mutual help. It is a joint
enterprise of people who are not financially strong and, therefore come together mainly to
manage problems of inadequate financial resources".
6. James Chen.(2008) A portfolio is a grouping of financial assets such as stock, bonds,

commodities, currencies, and cash equivalents, as well as their fund counterparts, including
mutual, exchange traded and closed funds.
7. Amruta Prakash Kudtakar,(2018) Simple portfolio means investing in different securities and
grouping them. Portfolio can be be managed individually or can be managed with the help of
professionals.
8. International Labour Organization defines Co-operative society as " an association of person

with limited income who have willingly joined together to realize a common goalby means of a
democratically organized business enterprise, contributing capital and sharing risks and benefits
thereof".

9. According to Ciaran John, he identify that portfolio of loans are the basket of various kinds of
loan which are regulated by the financial agency/ institutions.
10. According to Dr. K.N. Katju, "Co-operation is self help as well asmutual help. It is a joint
association an enterprise of those who arenot financially strong and are enable to stand on their
own legs, andtherefore come together not with a view to get profit but overcomedisability arising
out of want of adequate financial responses andthus better their economic condition".
11. Wouter J Den Haan,Steven W Summer, Guy M Yamashira
They study the loan portfolio behaviour of bank loan following a monitory tightening and they
find that real estate and consumer loans are gradually decreasing on the contrary there is
increasing in commercial and industrial loans. These responses are compared with non-monitory
which in turn also decreases the output but the interest rates remain unchanged.
12. Aditya pun (2003)
In his report he stated that how the new technologies are adopted in a banks and other financial
institutions in order to reach the customer very quickly and respond to them to provide a satisfied
services to meet their individual requirements. The financial institutions or the bank which
makes use of new technology to offer variety of services to suits to the customer need will
sustain and services in this competitive market.
13. According to CEIS, Loan portfolio are the pooling of resource that has the possibility of risks
for the probable loss that are faced by the bank.
14. Dr.Vrajal Sapovadia and Dilip V Shah
In the article named compliance and obligations of bank and societies in Gujarat (India). They
discussed the duties and obligations to be performed by the concerned person. The classification
of co-operative societies are rural, urban and district and these societies set of obligations and
compliances to be performed.

15. Vijay Mahajan (2006)
In this article he tried to estimate and analyses the factors which may come in the way of making
Indian MFI's sustainability and also the factor which can facilitate this. He also makes an attempt
to see things in a multiple dimension such as the demand, supply legal and regulatory framework,
governance and financial sustainability.
16. Joco Melissa (2002)
The author has concluded that home loan market depends up on a major supplement in order to
fulfill their needs which is to create a household wealth and to become a self-sufficient
economically and create a favorable/ positive socio-psychological status.
17. M. Mahadeva (2004)
He analyzed the problems faced by the financial in disbursement of housing loan in Karnataka
and how this issue of loan has been resolved. Specifically he consider the strategies that are
adopted during ninety's(90) and recognizes the failure which includes the housing loan task force.
Major deficiencies pertaining to this is by rural - urban areas and on finance requirements are
analyzed and examined in order to suggest a proper policy to address the housing problem.
18. Adam Leser(2015)
He identify that these type of Mortgages are usually financed by the credit institution in order to
support the local bank and the people.
19. Michelle Ivy (2019)
A loan portfolio is a mortgage issued by financial institutions and typically does not meet Fannie
and Freddie guidelines, and they are not sold on the secondary market. Instead, portfolio lenders
carry the risks, create their own underwriting guidelines and changes a premium rate and closing
fee. They cater to the real estate investment community.

20. According to Piyush Dadhich (2017)
Gross Loan portfolio is a term which refers to principal component of total loans outstanding in
the balance sheet on a date. However, it does not includes loans which don't have to pay like the
ones which have already been written off by the creditors.

CHAPTER -3
RESEARCH DESIGN

CHAPTER -3
RESEARCH DESIGN
Statement of problem
"A study of Loan Portfolio with special reference to Arya Vyshya Sri Rama co-operative society
Ltd".
Need of the study:
Loan and advances are the important asset of bank and other financial institution. Lending is key
or the core activity or the business of the co-operative societies and the performance of the
societies is influenced by this activity. They kinds of loan provided, the areas targeted, the
amount of loan sanctioned, the loan amount disbursed, and procedure or the method followed for
the recovery, overall financial position and health of the society.
Objectives:
 To know the organizational structure and operations of the Co-operative Society.

 To know the types of loan facilities given by the society.
 To study and analysis of the loan portfolio of co-operative society under different
components or the scheme.
 To provide suggestion recommendation to the society based on the study undertaken in
the society.
Scope of the study:
 The study cover the different type of loan scheme of the Arya Vyshya Sri Rama co-
operative society Ltd.
 The study is limited to shivamogga district only.
 The study cover the loan portfolio and NPA in the area of co-operative society's business.

Research Methodology:
It is particular method or system used to identify, choose, process and analyze information about
the issue.
Sources of Data :
Primary Data:
It is collected for first time. It is also called as first hand data. The primary data has been
collected the discussion with staff and officers.
Secondary Data:
The secondary data are collected from the society's bylaws, annual report, hand outs and thought
the interest.
Tools and techniques:
 Tabulation.
 Graphical representation of the date collected.
 Comparative analysis.
 Correlation.
 Central tendency.
Limitation of the study:
 The study has been done for the academic purpose only.
 The analysis is based on the source of information and data provided by the society.
 The data is collected only for 5 previous years.
 This study is related to shivamogga branch only.

Chapter Scheme:
Chapter No. Chapter title and Brief content
Chapter 1 Introduction
Introduction about the project, industry profile, Meaning and Definition of co-
operative, History the co-operative in India and Evolution in cooperative society,
objectives and characteristics of cooperative society, Organization profile,
History of the society, success story of the society, Vision and Mission statement
and quality policy, Products/Service profile, lending of the society, areas of
operations, infrastructure facility, competitors of the society, future growth,
SWOT analysis, financial statement.
Chapter 2 Conceptual Background and Literature review
Theoretical background of the study and literature review.
Chapter 3 Research Design
Statement of problem, need for the study, objective of study, scope of the study,
research methodology, hypothesis, limitation of the study, chapter scheme.
Chapter 4 Analysis and interpretation
Analysis and interpretation of the data collection with relevant table and graphs.
Chapter 5 Findings, Suggestion and conclusions
Summary of findings, conclusion and suggestion or recommendation.
Bibliography

CHAPTER 4
ANALYSIS AND INTERPRETATION

CHAPTER -4
ANALYSIS AND INTERPRETATION
Scheme of loan
The following are the scheme of loan that have been provided by the Arya Vyshya Sri Rama
Sahakara Sangha Niyamitha
Table No-4.1: Table showing the Rate of Interest for the different kinds of loan:
Serial No Loans Rate of interest
1 Gold loan 10%
2 Building motagage loan 10%
3 N S C loan 10%
4 Silver loan 10%
5 Vehicle loan 10%
6 Personal loan 10%
7 Education loay 10%

Table No-4.2:
4.2: Table showing Total Loan Disbursed:
Year Amount Disbursed (Rs) Changes (%)
2014-2015 64405563 0
2015-2016 74931799 16.343
2016-2017 82503837 10.105
2017-2018 117924097 42.931
2018-2019 81333762 -31.028

31.028
( Source: Annual Reports )
Graph No:4.1: Graph Showing the Total Amount of Loan Distributed

Distr
60 42.931
40
16.343
20 10.105
0
0
2014-2015 2015
2015-2016 2016-2017 2017-2018 2018--2019
-20
-31.028
31.028
-40
Interpretation:
The above table and graph show the disbursement of total loan during last 5year from 2014
2014-15 to
2018-19
19 by the society. Loan disbursement has increased greatly 2015-16
2015 16 and has continue to
improvement in 2016-17
17 and 2017-18
2017 and decline in 2018-19.
19. Thus it is showing a fluctuating
trend in its performance.

SCHME WISH LOAN DISBURSEMENT:
Table No-4.3: Table showing Gold Loan:
Year Amount disbursed ( Rs ) Changes ( % )
2014-2015 19102810 0
2015-2016 17774800 -6.951
2016-2017 19748190 11.102
2017-2018 17162122 -13.095
2018-2019 18508776 7.846
( Souce: Annual Reports )
Graph No:4.2: Graph Showing the amount of Gold Loan Distributed
15
11.102
10 7.846
5
0
0
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
-5
-10 -6.951
-15 -13.095
Interpretation:
The above table and graph show the disbursement of gold loan. The disbursement of gold loan
decreased in 2015-16 and improved in 2016-17 and again decline in 2017-18 and again there was
improvement in 2018-19. Thus there is fluctuation trend in its performance

Table No-4.4: Table showing Building Motgage Loan:
Year Amount %
2014-2015 32717000 0
2015-2016 38852078 18.751
2016-2017 46063891 18.562
2017-2018 81605000 77.156
2018-2019 46407497 -43.131

( Source : Annual Reports )
Graph No: 4.3: Graph Showing the amount of Building Motgage Loan Distributed
100
77.156
80
60
40
18.751 18.562
20
0
0
-20 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
-40
-43.131
-60
Interpretation:
The above table and graph show the disbursement of building mortgage loan by the society.
Under this scheme there was increase in 2015-16 and 2016-17 and 2017-18 and decline in 2018-
19. Thus there is fluctuation trend in its performance.

Table No -4.5: Table showing Silver Loan:
Year Amount disbursed (Rs) Changes (%)
2014-2015 1542650 0
2015-2016 1175500 -23.799
2016-2017 1218075 3.621
2017-2018 465100 -61.816
2018-2019 524000 12.663
Graph No:4.4: Graph showing the amount of Silver Loan Distributed
20 12.663
10 3.621
0
0
-10 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
-20
-30 -23.799
-40
-50
-60
-70 -61.816
Interpretation:
The above table and graph show the disbursement of silver loan. Under this scheme loan has
declined in 2015-16 and increase in 2016-17 and again decline 2017-18 and increase in 2018-19.
Thus there is fluctuation trend in its performance.

Table No- 4.6: Table showing Site/ Mortgage Loan:
Year Amount disbursed ( Rs ) Changes (%)
2014-2015 2445000 0
2015-2016 5268849 115.494
2016-2017 2750000 -47.806
2017-2018 7034875 155.813
2018-2019 1000000 -85.785
Graph No:4.5: Graph showing the amount of Sit Mortages Loan Distributed
200
155.813
150
115.494
100
50
0
0
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
-50
-47.806
-100 -85.785
Interpretation:
The above table and graph show the disbursement of Site/ Mortgage Loan by the society. Under
this scheme the loan has increased 2015-16 and decline in 2016-17 and increased 2017-18 and
again decline in 2018-19. Thus there is fluctuation trend in its performance.

Table No -4.7: Table showing Personal Security Loan:
2014-2015 43000 0
2015-2016 52000 20.930
2016-2017 50500 871.153
2017-2018 15600 -69.108
2018-2019 587000 276.282
Graph No:4.6: Graph showing the amount of Personal Security Loan Distributed
1000
871.153
800
600
400
276.282
200
0 20.93
0
2014-2015 2015-2016 2016-2017 2017-2018
-69.108 2018-2019
-200
Interpretation:
The above table and graph show that disbursement of Personal Security Loan by the society.
Under this scheme there were increase in 2015-16 and 2016-17 and decline in 2017-18 and again
there were improvement in 2018-19. Thus there were fluctuation trend in its performance.

Table No -4.8:
4.8: Table showing Vehicle Loan:
2014-2015 1861603 0
2015-2016 4918072 164.184
2016-2017 3837103 -21.979

21.979
2017-2018 2457000 -35.967

35.967
2018-2019 4103489 67.012
Graph No:4.7: Graph showing the amount of Vehicle Loan Distributed

Dis
200
164.184
150
100
67.012
50
0
0
2014-2015 2015
2015-2016 2016-2017 2017-2018 2018-2019
-21.979
-50 -35.967
Interpretation:
The above table and graph show the disbursement of Vehicle loan. Under this scheme there were
increase in the disbursement of loan in 2015-16
2015 and steeply decline in 2016-17
17 and 2017
2017-18 and
again there was great improvement in 2018-19.
201 19. Thus there is fluctuation trend in its performance.

Table No -4.9: Table showing Joint Loan:
Year Amount disbursed ( Rs) Changes (%)
2014-2015 1845000 0
2015-2016 2162000 17.181
2016-2017 2688078 24.332
2017-2018 5011000 86.415
2018-2019 2384000 -52.424
Graph No:4.8: Graph showing the amount of Joint Loan Distributed
100
86.415
80
60
40
24.332
17.181
20
0
0
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
-20
-40
-60 -52.424
Interpretation:
The above table and graph show the disbursement of Joint loan. Under this scheme there were
increase in the disbursement of loan in 2015-16 and 2016-17 and 2017-18 and decline in 2018-
19. Thus there is fluctuation trend in its performance.

Table No -4.10:
4.10: Table showing Total Loan Recovered:
Year Amount disbursed ( Rs) Changes (%)
2014-2015 58947116 0
2015-2016 71182969 20.757
2016-2017 73986685 3.938
2017-2018 97182173 31.350
2018-2019 68837240 -29.166

29.166
Graph No:4.9: Graph showing the Total Loan Recovered
40 31.35
30 20.757
20
10 3.938
0
0
-10 2014-2015 2015
2015-2016 2016-2017 2017-2018 2018-2019
2019
-20
-30 -29.166
29.166
Interpretation:
The above table and graph show the Total Amount Recovery of Loan. There were mar
marginally
increased in 2015-16
16 and 2016-17
2016 and 2017-18 and decline in 2018-19.
19. Thus there is a
fluctuating trend in its performance.

SCHEME WISE RECOVERY OF LOAN:
Table No -4.11: Table showing Recovery of Gold Loan:
Year Amount Recovered (Rs) Changes (%)
2014-2015 23519420 0
2015-2016 19009173 -19.176
2016-2017 20189993 6.211
2017-2018 19241115 -4.699
2018-2019 17520248 -8.942
Graph No:4.10: Graph showing the amount of Gold Loan Recovered
10
6.211
5
0
0
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
-5
-4.699
-10
-8.942
-15
-20
-19.176
-25
Interpretation:
The above table and graph show the recovery of Gold Loan. Under this scheme recovery of loan
has increased in 2014-15 and decreased 2015-16 and improvment in 2016-17, slightly decreased
in 2017-18 and 2018-19. Thus there is a fluctuating trend in its performance.

Table No -4.12:
4.12: Table showing Recovery of Building Mortgage Loan:
2014-2015 24207146 0
2015-2016 36257841 49.781
2016-2017 38332929 5.723
2017-2018 59154214 54.316
2018-2019 34364183 -41.907

41.907
Graph No:4.11: Graph showing the amount of Building Mortgage Loan Recovered
60 54.316
49.781
40
20
5.723
0
0
2014-2015 2015
2015-2016 2016-2017 2017-2018 2018-2019
-20
-40
-41.907
-60
Interpretation:
The above table and graph show the recovery of Building mortgage loan. Under this scheme
recovery of loan has increased in 2014-15
2014 and 2015-16 and 2016-17 and 2017--18 and decline y
2018-19.
19. Thus there is a fluctuating trend in its performance.

Table No -4.13:
4.13: Table showing Recovery of Silver Loan:
2014-2015 1755529 0
2015-2016 1706958 -2.766

2.766
2016-2017 1397182 -18.147

18.147
2017-2018 937064 -32.931

32.931
2018-2019 570354 -39.133

39.133
Graph No:4.12: Graph showing the amount of Silver Loan Recovered
0
2014-2015 -2.766
2.766
2015-2016
2016
-10 2016-2017
2017-2018
2018
2018-2019
-20
-18.147
-30
-40
-32.931
-39.133
Interpretation:
The above table and graph show the recovery of Silver loan. Under this scheme recovery of loan
increased in 2014-15
15 and decline in 2015-16
2015 16 and continued to decline in 2016
2016-17 and 2017-18
and 2018-19.
19. Thus there is a decreasing trend in its performance.

Table No -4.14: Table showing Recovery of Site/ Mortgage Loan:
2014-2015 646283 0
2015-2016 4291265 563.991
2016-2017 4485389 4.523
2017-2018 3505507 -21.846
2018-2019 2951066 -15.816
Graph No:4.13: Graph showing the amount of Site/ Mortgage Loan Recovered
600 563.991
500
400
300
200
100
0 4.523
0
2014-2015 2015-2016 2016-2017 2017-2018
-21.846 2018-2019
-15.816
-100
Interpretation:
The above table and graph show the recovery of site/ mortgage loan. Under this scheme recovery
of loan has increased 2014-15 and 2015-15 and 2016-17 and decline in 2017-18 and 2018-19.
Thus there is a fluctuating trend in its performance.

Table No -4.15: Table showing Recovery of Personal Security Loan:
Year Amount Recovered ( Rs) Changes (%)
2014-2015 55665 0
2015-2016 38830 -30.243
2016-2017 347165 794.063
2017-2018 233686 -32.687
2018-2019 367228 57.145
Graph No:4.14: Graph showing the amount of Personal Security Loan Recovered
900
794.063
800
700
600
500
400
300
200
100 57.145
0
0
-100 2014-2015 2015-2016
-30.243 2016-2017 2017-2018
-32.687 2018-2019
Interpretation:
The above table and graph show the recovery of Personal Security loan. Under this scheme
recovery of loan has increased in 2014-15 and decline in 2015-16 and increased in 2016-17 and
decline 2017-18 and increased in 2018-19. Thus there is a fluctuating trend in its performance.

Table No -4.16: Table showing Recovery of Vehicle Loan :
2014-2015 4139073 0
2015-2016 4097282 -1.009
2016-2017 2784309 -32.044
2017-2018 3216789 15.532
2018-2019 3942743 22.567
Graph No:4.15: Graph showing the amount of Vehicle Loan Recovered
30
22.567
20 15.532
10
0
0
2014-2015 -1.009
2015-2016 2016-2017 2017-2018 2018-2019
-10
-20
-30
-32.044
-40
Interpretation:
The above table and graph show the recovery of Vehicle loan. Under this scheme recovery of
loan has increased 2014-15 and decline in 2015-16 and 2016-17 and marginally improved in
2017-18 and 2018-19. Thus there is a fluctuating trend in its performance.

Table No -4.17: Table showing Recovery of Joint Loan:
2014-2015 1300579 0
2015-2016 1562835 20.164
2016-2017 1807830 15.676
2017-2018 3076077 70.153
2018-2019 2705611 -12.043
Graph No:4.16: Graph showing the amount of Joint Loan Recovered
80
70.153
70
60
50
40
30
20.164
20 15.676
10
0
0
-10 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
-20 -12.043
Interpretation:
The above table and graph show the recovery of Joint loan. Under this scheme recovery of loan
has increased in 2014-15 and continued to increased in 2015-16 and 2016-17 and 2017-18 and
slightly decreased in 2018-19. Thus there is a fluctuating trend in its performance.

Table No-4.18: ANALISYS OF SCHEME WISE DISBURSEMENT AND RECOVERY

OF LOAN:
Particular of 2014-15 Amount Percentage of Recovery Percentage

Disbursed Disbursement of Recovery
Gold Loan 19102810 32.07 23519420 42.28
Building Mortgage 32717000 54.93 24207146 43.51

Loan
Silver Loan 1542650 2.59 1755529 3.15
Site/ Mortgage Loan 2445000 4.10 646283 1.16
Joint Loan 1845000 3.09 1300579 2.33
Personal Security Loan 43000 0.07 55665 0.10
Vehicle Loan 1861603 3.12 4139073 7.44
Total 59557063 100 55623695 100

Graph No:4.17: Graph showing Disbursement and Recovery of Loan
120
100
100
80
60
42.28 43.51
40
20
7.44
3.15 1.16 2.33 0.1
0
Gold Loan Building Silver Loan Site/ Joint Loan Personal Vehicle Loan
Mortgage Mortgage Security
Loan Loan Loan
Interpretation:
From the above table and graph, it is absorbed that, in 2014-15:

2014
 W.r.t disbursement, Building mortgage loan and gold loan occupy first
first and second place
respectively followed by site/ mortgage loan and joint loan.
 w.r.t recovery Building mortgage loan and Gold loan first and second place respectively
and vehicle loan and silver loan.

Table No-4.19: Showing Disbursement and Recovery of Loan:

Gold Loan 17774800 26.04 19009173 28.38

Loan
Silver Loan 1175500 1.72 1706958 2.54
Joint Loan 216200 0.31 1562835 2.33
Vehicle Loan 4918072 7.20 4097282 6.11
Total 68257499 100 66964184 100

60 56.91
54.14
50
40
30 28.38
26.04
20
10 7.71 6.4 7.2 6.11

1.722.54 0.31
2.33
0.070.05
0
Mortgage Mortgage Security Loan
Loan Loan
Interpretation:
From the above table and graph, it is absorbed that, in 2015-16
 w.r.t disbursement, Building mortgage loan and gold loan occupy first and second place
respectively followed by site mortgage loan and vehicle loan.
 w.r.t recovery Building mortgage loan and gold loan first and second place and
respectively and site mortgage loan and vehicle loan.


Gold Loan 19748190 25.71 20189993 29.11

Loan
Silver Loan 1218075 1.58 1397182 2.01
Joint Loan 2688078 3.49. 1807830 2.60
Vehicle Loan 3837103 4.99 2784309 4.01
Total 76810337 100 69344797 100

70
59.97
60
55.27
50
40
29.11
30 25.71
20
10 6.46
3.58 4.994.01
1.582.01 2.6
0 0.65 0.5
0
Loan Loan
Interpretation:
w.r.t disbursement, Building mortgage loan and gold loan occupy first and second place
respectively followed by Vehicle loan and site mortgage loan.
w.r.t recovery Building mortgage loan and gold loan first and second place and
respectively and site mortgage loan and Vehicle loan.


Gold Loan 17162122 15.06 19241115 21.53

Loan
Silver Loan 465100 0.40 937064 1.04
Joint Loan 5011000 4.39 3076077 3.44
Vehicle Loan 2457000 2.15 3216789 3.59
Total 113891097 100 89364452 100

80
71.65
70 66.19
60
50
40
30
21.53
20 15.06
10 6.17
3.92 4.393.44
0.4 1.04 2.153.59
0.130.26
0
Loan Loan
Interpretation:
From the above table and graph, it is

i absorbed that, in 2017-18
respectively followed by site mortgage loan and joint loan.
respectively
spectively and site mortgage loan and vehicle loan.


Gold Loan 18508776 25.17 17520548 28.06

Loan
Silver Loan 524000 0.71 570354 0.91
Joint Loan 2384000 3.24 2705611 4.33
Vehicle Loan 4103489 5.58 39422743 6.31
Total 73514762 100 62421733 100

70
63.12
60 55.05
50
40
30 25.17
20
10 5.58
3.24
0.71 1.36 0.79
0
Loan Loan
Interpretation:
respectively followed by vehicle loan and joint loan.
respectively and Vehicle loan and site mortgage loan.

Table No-4.22: Table Showing Co-Efficient of correlation between the loan Disbursed and
Recovery :
Year Co- Efficient of Correlation
2014-15 r = 0.943
2015-16 r= 0.993
2016-17 r=0.99
2017-18 r=0.991
2018-19 r=0.993
Graph No:4.22: Graph showing Co-Efficient of correlation between the loan Disbursed and
Recoverd
1
0.993 0.991 0.993
0.99
0.99
0.98
0.97
0.96
0.95
0.943
0.94
0.93
0.92
0.91
2014-15 2015-16 2016-17 2017-18 2018-19

Interpretation:
The above table and graph show the co-efficient of correlation between the loan
disbursed and the amount of loan recovered in 2014-15 and 2016-17 there is a decline
and in 2015-16 to 2018-19 . There is marginally increase. There is a positive co-efficient
of correlation between the loan disbursed and recovered. This indicates : (i) There is a
near perfect relationship between loan sanction and loan recovery as more sanctions lead
to more recovery, and (iii) in most these years, along with sanction this society has made
good efforts for recovery.

Mean, Standard Deviation and Co-efficient of variance of Loan Disbursed :
Table No-4.23 : Gold Loan
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
19102810 17774800 19748190 17162122 1850877
Mean Standard Deviation Co-Efficient of Variance
18459340 1028227 17.95
Interpretation :
The above table shows the disbursement of Surety Loan by the society.
 The average loan disbursed in 5 year from 2014-15 to 2018-19 is Rs. 18459340. Thus in
only two year, the actual disbursement is more than this average and in the remaining 3
years, the actual disbursement is high the average.
 Standard deviation of loan is Rs. 1028227 and the variance of disbursement of loan is
17.95.

Table No-4.24 : Table Building Motgage loan
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
3271700 38852078 46063891 81605000 46407497
40837593 27729009 1.47
Interpretation :
The above table shows the disbursement of Building Motgage loan by the society.
1.47.

Table No-4.25 : Table Silver loan
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
1542650 1175500 1218075 465100 524000
985065 470214 2.09
Interpretation :
The above table shows the disbursement of Silver Loan by the society.
 Standard deviation of loan is Rs. 470214 and the variance of disbursement of loan is 2.09.

Table No-4.26 : Site / Mortgage Loan
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
2445000 5268849 2750000 7034875 1000000
3699745 2416102 1.53
Interpretation :
The above table shows the disbursement of Site / Mortgage Loan by the society.
1.53.

Table No-4.26 : Personal Security Loan
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
43000 52000 505000 156000 587000
268600 2587244 0.10
Interpretation :
The above table shows the disbursement of Personal Security Loan by the society.
years, the actual disbursement is below the average.
0.10.

Table No-4.27 : Vehicle Loan
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
1861603 4918072 3837103 2457000 4103489
3435453 1249012 2.75
Interpretation :
The above table shows the disbursement of Vehicle Loan by the society.
2.75.

Table No-4.28 : Joint Loan
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
1845000 2162000 2688078 5011000 2384000
2818016 1264076 2.22
Interpretation :
The above table shows the disbursement of Personal Security Loan by the society.
2.22.

The Table Showing the Mean standard deviation and Co – Efficient of variance of loan
recovery.
Table No-4.29 : Gold Loan
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
23519420 19009173 20189993 19241115 17520548
19896050 2240185 8.88
Interpretation :
The above table shows the Recovery of Gold Loan Loan by the society.
 The average loan Recovery in 5 year from 2014-15 to 2018-19 is Rs. 19896050. Thus in
only two year, the actual Recovery is more than this average and in the remaining 3 years,
the actual Recovery is high the average.
 Standard deviation of loan is Rs. 2240185 and the variance of Recovery of loan is 8.88.

Table No-4.30 : Building Motgage Loan
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
24207146 36257841 38332929 59154214 34364183
38463263 12777281 3.01
Interpretation :
The above table shows the Recovery of Building Motgage Loan by the society.

Table No-4.32 : Site / Mortgage Loan
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
646283 4291265 4485389 3505507 2951066
3175902 1542478 2.05
Interpretation :
The above table shows the Recovery of Site / Mortgage Loan by the society.

Table No-4.34 : Personal Security Loan
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
55665 38830 347165 233686 367220
208514 155887 1.33
Interpretation :
The above table shows the Recovery of Personal security loan by the society.

Table No-4.35 : Vehicle Loan
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
4139073 4097282 2784309 3216789 3942743
3636039 604373 6.01
Interpretation :
The above table shows the Recovery of Vehicle loan by the society.

Table No-4.36 : Joint Loan
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
1300579 1562835 1807830 3076077 2705611
2090586 763549 2.73
Interpretation :
The above table shows the Recovery of Vehicle loan by the society.
the actual disbursement is high the average.

CHAPTER 5
FINDINGS, SUGGESTION AND CONCLUSION

CHAPTER -5
FINDINGS, SUGGESTION AND CONCLUSION
FINDINGS
 The disbursement of total loan during last 5year from 2014-15 to 2018-19 showing
fluctuating trend in its performance.
 The disbursement of gold loan has declined in 2015-16 and 2017-18 there were
improvement in 2016-17 and 2018-19. Thus there is fluctuation trend in its performance.
 The disbursement of building mortgage loan is showing an increasing trend in its
performance.
 The disbursement of silver loan has declined in 2015-16 and 2017-18 there were
improvement in 2016-17 and 2018-19. Thus there is fluctuation trend in its performance.
 The disbursement of site mortgage loan has increased in 2015-16 and 2017-18 and
decline in 2016-17 and 2018-19. Thus there is fluctuation trend in its performance.
 The disbursement of Personal Security loan has increased in 2015-16 and 2016-17 and
2018-19 and decline in 2017-18. Thus there is fluctuation trend in its performance.
 The disbursement of Vehicle loan has increased in 2015-16 and 2018-19 and decline in
2016-17 and 2017-18. Thus there is fluctuation trend in its performance.
 The disbursement of joint loan has increased greatly in 2015-16 and 2016-17 and 2017-
18 decline in 2018-19. Thus there is fluctuation trend in its performance.
 recovery of the gold loan has increased 2016-17 and decline in 2015-16 and continued to
decline in 2017-18 and 2018-19. Thus there is fluctuation trend in its performance.
 The recovery of building mortgage loan has increased greatly in 2015-16 and 2016-17
and 2017-18 and decline in 2018-19. Thus there is fluctuation trend in its performance.
 The recovery of silver loan has declined in 2015-16 and continued to decline in 2016-17
and 2017-18 and 2018-19 . Thus there is fluctuation trend in its performance.
 The recovery of site mortgage loan has increased in 2015-16 and 2016-17 and decline in

 recovery of personal security loan has declined in 2015-16 and 2017-18 and increased in
 The recovery of Vehicle loan has declined in 2015-16 and 2016-17 and marginally
improved in 2017-18 and 2018-19. Thus there is fluctuation trend in its performance.
 The recovery of joint loan is showing an increasing trend in its performance.
 The Co-efficient of correlation between the loan disbursed and the amount of loan in
2014-15 and 2016-17 there is a decline and 2015-16 to 2017-18, 2018-19 there is
marginally increase. There is positive co-efficient of correlation between the loan
disbursed and recovered. This indicates : (i) there is a near perfect relationship between
loan sanction and loan recovery as more sanctions lead more recovery and (ii) in Most
these years, along with sanctions this society has made good efforts for recovery.

SUGGESTION
 The disbursement of loan has been fluctuating in last 5 previous year. The society should
adopt a proper procedure to maintain a stability in Distribution of loan.
 The society should give importance to gold in disbursement as there is fluctuation.
 The society should also has give an attention to increase the amount of loan disbursed for
gold loan.
 The society has to try to increase the disbursement of silver loan.
 The society should also has to give due consideration for the Recovery of loan.
 The society has to try to increase the disbursement of personal security loan.
 The society has to try to increase the disbursement of Vehicle loan.

CONCLUSION
 Considering overall performance, Arya Vyshya Sri Rama co-operative society Ltd,
Shivamogga is going well.
 The society's financial position is strong.
 The society meet the financial needs of its members through various financial services.
 The disbursement of loan by the Society is increasing every year.
 The Recovery status of loans is very good.
 The profitability of Society is good.

BIBLIOGRAPHY

BIBLIOGRAPHY
1. 1.bylaws of the society.
2. Annual report of the society.
3. Co-operative banking Indian and global perspective - T. N Ramakumar.
4. https:// scholar.google.co.in
5. www. quora. com
6. www. balencepross.com / what - is- a- portfolio - loan.

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"A STUDY ON LOAN PORTFOLIO WITH SPECIAL REFERENCE TO ARYA VYSHYA

SRI RAMA CO OPERATIVE SOCIETY LTD".

Edurite College, Alkola, Shivamogga. Page 1

Edurite College, Alkola, Shivamogga. Page 2

Meaning and definition of co-operative:

History of co-operatives in India:

Edurite College, Alkola, Shivamogga. Page 3

Evolution in cooperative society:

Edurite College, Alkola, Shivamogga. Page 4

 Autonomy and independence

The objectives of co-operative society are:

Characteristics of co-operative society:

Edurite College, Alkola, Shivamogga. Page 5

History of the Society:

 Sri. Changiri Ramaswamy Shetty.

Edurite College, Alkola, Shivamogga. Page 6

Success story of the society:

Edurite College, Alkola, Shivamogga. Page 7

Edurite College, Alkola, Shivamogga. Page 8

Edurite College, Alkola, Shivamogga. Page 9

Edurite College, Alkola, Shivamogga. Page 10

PRODUCTS / SERVICE PROFILE

Edurite College, Alkola, Shivamogga. Page 11

LENDINGS OF THE SOCIETY:

Edurite College, Alkola, Shivamogga. Page 12

Present chairperson, Directors and Secretary of the society:

Chairperson Sri D.M Aravinda

Vice Chairperson Sri S.V Bharath

Director Sri K.G Nataraj

Director Sri B.N mangunth

Director Sri G .V sridhara Guptha

Director Sri B.A Ranganth

Director Sri M.H Vikram

Director Sri V Chethan

Director Sri S.K Sheshachala

Director Sri S .J Ashwathanarayana sheety

Director Sri K.V Surendra

Edurite College, Alkola, Shivamogga. Page 13

Director Sri Mye,na Subhramaya

Director Sri C.R nlNagabhushana

Director Smt. Ujvala Ravi

Director Smt. Sudha Myenasu

Edurite College, Alkola, Shivamogga. Page 14

COMPETITOR’S OF THE SOCIETY

Padhavi Darara Sahakara Sangha Niyamitha [Graduate society]

SWOT Analysis of Arya Vyshya Sri Rama Sahakara Niyamitha Sangha:

Edurite College, Alkola, Shivamogga. Page 15

Can extend their corporate social responsibility to poor children.

Banks play as major competitor to cooperative societies.

Table No-1.2: Profit and Loss Account As on 31/3/2017

Expenditure Amount Income Amount

Interest paid on 6533679.98 Interest received 18077573

Interest paid on 2485853 Penal interest received 121923

Staff salary and 1434625 Interest received on 3746271

Other expenses 2973289 Other interest 3651.77

Net profit transfer to 8926294.79 Other income 386314

Total 22353732.77 Total 22353732.77

Edurite College, Alkola, Shivamogga. Page 16

Table No - 1.3: Balance sheet As on 31/3/2017

Liabilities Amount Assets Amount

Share capital 31470775.00 Cash 890131.20

Other fund 15188998.56 Deposit with other bank 60000.00

Depreciation 9057222.70 Investment in fund 2000000.00

Deposits 102366896.69 Investment in bank 46700916.00