ACKNOWLEDGEMENT

I wish to express my deep sense of gratitude to my thesis guide, Mr. Jagdeep Singh. His understanding, encouraging and personal guidance have provided a good basis for the present report. I gratefully acknowledge for his advice and guidance from the very early stage of this research as well as giving me extraordinary experiences throughout the work. Above all and the most needed, he provided me unflinching encouragement and support in various ways. I am also thankful to all employees who provide the practical information about the banking process, practical show the working criteria of the bank and those employee whose inspiration leads to dedication leads to accomplishment, Accomplishment leads to acknowledgement. Its my immense pleasure to

acknowledge great fully for my parents to give me financial help in collecting information and sincere thanks to my friends who gave me suggestion this project over and above. Last but not the least I am thankful to almighty god for completing this project report.

Hans Raj Verma

CONTENT
CHAPTER 1. 2. 3. 4 5. 6. 7. SWOT Analysis Findings and conclusions Personal learning TITLE Company profile/Introduction Organizational Structure Products and Services of HPSCB PAGE NO.

INTRODUCTION
Indian banking sector has tremendously enhanced from past decade. The main reason behind this growth is continuous urbanization and globalization. Banking in India has its origin as early as the Vedic period. It is believed that the transaction from money lending to money banking must have occurred even before Manu, the great Hindu Jurist, who has devoted a section of his work to deposits and advances and laid down the rules relating to rate of interest. During Mogul Period, the indigenous bankers played a very important role in lending money and finance foreign trade and commerce. The others that followed were the Bank of Hindustan and the Bengal Bank. The Bank of Hindustan is reported to have continued till 1906 while the other two failed in the meantime. In the first half of the 19th century the East India Company established three banks, the Bank of Bengal in 1809, the Bank of Bombay in 1840and the banks of Madras in 1843. These three banks are also known as the presidency banks were amalgamated in 1920 and a new Bank-the imperial bank of India established on 27th January 1921. With the passing of the state act 1955 the undertaking of the imperial Bank of India is taken over by the newly constituted the state bank of India. Banking dates back to 1786, the first bank established in India, then nationalization of banks in 1969 and recently the liberalization of the same since 1991. RBI is the central bank of the country since 1934. It regulates, controls credit, issues licenses and functions as banker of all banks and the government. With the advancement of technology, banking sector has become more easy, fast, accurate and also time saving. ATMs, Mobile Banking, SMS Banking and Net Banking are only the tip of an iceberg. In
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India the banking sector is segregated as public or private sector banks, cooperative banks and regional rural banks. Foreign banks have been given different head followed by upcoming foreign banks in this section. Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not be hassle free but should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades Indias banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In India banking system has reached even to the remote corners of the country. This is one of the main reasons of Indias growth process. The governments regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are: 1. Early phase from 1786 to 1969 of Indian banks. 2. Nationalization of Indian banks and up to 1991 prior to Indian banking sector reforms. 3. New phase of Indian banking system with the advent of Indian Financial & banking sector reforms after 1991.

Meaning of bank
You know people earn money to meet their day to day expenses on food, clothing, education of children, housing etc. They also need money to meet future expenses on marriage, higher education of children, house building and other social functions. These are heavy expenses, which can be met if some money is saved out of the present for people to work and earn their living. The necessity of saving money was felt by people even in olden days. They used to hoard money in their homes. With this practice, savings were available for
4

use whenever needed, but it also involved the risk of loss by theft, robbery and accidents. Thus, people were in need of a place where money could be saved safely and would be available when required. Banks are such places where people can deposit their savings with the assurance that they will be able to withdraw money from the deposits whenever required. People who wish to borrow money for business and other purposes can also get loans from the banks at reasonable rate of interest. Bank is a lawful organization, which accepts deposits that can be withdrawn on demand. It also lends money to individuals and business houses that need it. Banks also render many other useful services like collection of bills, payment of foreign bills, safe-keeping of jewelers and other valuable items, certifying the creditworthiness of business, and so on. Banks accept deposits from the general public as well as from the business community. Anyone who saves money for future can deposit his savings in a bank. Businessmen have income from sales out of which they have to make payment for expenses. They can keep their earnings from sales safely deposited in banks to meet their expenses from time to time. Banks give two assurances to the depositors:a. Safety of deposits, and b. Withdrawal of deposits, whenever needed On deposits, banks give interest, which adds to the original amount of deposit. It is a great incentive to the depositors. It promotes saving habits among the public. On the basis of deposits banks also grant loans and advances to farmers, traders and businessmen for productive purposes. Thereby banks contribute to the economic development of the country and well being of the people in general. Banks also charge interest on loans. The rate of interest is generally higher than the rate of interest allowed on deposits. Banks also charge fees for the various other services, which they render to the business community and public in general. Interest received on loans and fees charged for services which exceed the interest allowed on deposits are the main sources of income for banks from which they meet their administrative expenses.
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The activities carried on by banks are called banking activity. Banking as an activity involves acceptance of deposits and lending or investment of money. It facilitates business activities by providing money and certain services that help in exchange of goods and services. Therefore, banking is an important auxiliary to trade. It not only provides money for the production of goods and services but also facilitates their exchange between the buyer and seller. You may be aware that there are laws which regulate the banking activities in our country. Depositing money in banks and borrowing from banks are legal transactions. Banks are also under the control of government. Hence they enjoy the trust and confidence of people. Also banks depend a great deal on public confidence. Without public confidence banks cannot survive.

Why Do You Need a Bank Account?

With all the changes taking place in the banking marketplace today, you might ask yourself do I really need a bank. Why cant I just find a way to avoid all these fees? What types of accounts are available to me? It can be mindboggling. There are many reasons why a banking relationship is vital: When you deposit money in a bank, you have the comfort of knowing your money is in a safe, insured place. Most people and businesses, including your employer, need to have a paper trail to document transactions. Checks are a perfect way to keep a permanent record of business activities, even when they are personal. Even if you bank online, there is a well-documented trail of all your transactions. Using a personal checking account can save your time and money. Imagine how much lost time, travel expense, inconvenience, and potential aggravation you could incur every month if You had to buy money orders or, worse yet, visit all your creditors in person. The ability to simply write a check and drop it in the mail is invaluable.

For example, every time you need cash to pay a bill, you simply write a check to your creditor. Your creditor deposits your check in their bank.
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Your creditors bank processes your check through the Federal Reserve Banking System (The Federal Reserve Banking System operates as the U.S.Central bank and, among other activities, provides banking services to financial institutions and the U.S.government), and the money is pulled from your checking account. Result for very little effort on your part, your creditor gets paid. The same principles apply to savings accounts. Establishing a savings account keeps your money safe while allowing easy access to it. Plus, you get the benefit of earning some interest on your balance and putting your money to work for you.

How Banks Operate

In addition to providing a safe place for your money, banks also loan money to businesses and consumers. A large portion of a banks business is lending. How do banks get the money they loan? The money comes from depositors like you. Banks use these deposits to make loans. Every fee you pay to your bank enables them to reinvest in themselves, giving them more money to loan to you, for another fee, of course. Banks are in the business to make a profit. Their profit generally comes from the difference in interest paid to depositors and the interest earned on loans. Making loans helps banks make money, and offering checking accounts is a way to attract deposits, which banks turn into profitable loans. Banks cannot legally loan all of their deposited money all at once. The Federal Reserve Board, which is a part of the Federal Reserve System, requires that banks must keep a certain percentage of their deposits in reserve at all times, assuring you , the customer, can withdraw your money when you need to. The remaining funds, which are not subject to reserve, are used to make consumer loans. Other Services Offered by Banks
CREDIT CARDS

PERSONAL LOANS HOME AND CAR LOANS MUTUAL FUNDS BUSINESS LOANS SAFE DEPOSIT BOXES DEBIT CARDS TRUST SERVICES SIGNATURE GUARANTEES

Types of Accounts Typically Offered by Banks

Although banks offer a wide variety of accounts, they can be broadly divided into five types: - savings accounts, basic checking accounts, interest-bearing checking accounts, money market deposit accounts, and certificates of deposit. All five are insured by the FDIC (in most cases, up to $100,000 per account). Most banks offer all these types of accounts, so the bank you choose probably wont restrict this decision, although it does make sense to choose the account type you want first, so you can focus on that type as you shop around to various banks. Here is a brief description of each type of account:

Savings Accounts
These are intended to provide an incentive for you to save money. You can make deposits and withdrawals, but usually cant write checks. They usually pay an interest rate thats higher than a checking account, but lower than a money market account or CD. Some savings accounts have a passbook, in which transactions are logged in a small booklet that you keep, while others have a monthly or quarterly statement detailing the transactions. Some savings accounts charge a fee if your balance falls below a specified minimum.

Basic Checking Accounts

Sometimes also called no frills accounts, these offer a limited set of services at a low cost. Youll be able to perform basic functions, such as check writing, but they lack some of the bells and whistles of more comprehensive accounts.
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They usually do not pay interest, and they may restrict or impose additional fees for excessive activity, such as writing more than a certain number of checks per month.

Interest-Bearing Checking Accounts

In contrast to no frills accounts, these offer a more comprehensive set of services, but usually at a higher cost. Also, unlike a basic checking account, you are usually able to write an unlimited number of checks. Checking accounts which pay interest are sometimes referred to as negotiable order of withdrawal (NOW) accounts. The interest rate often depends on how large the balance in the account is and most charge a monthly service fee if your balance falls below a present level.

Money Market Deposit Accounts (MMDAs)

These accounts invest your balance in short-term debt such as commercial paper, treasury bills, or CDs. The rates they offer tend to slightly higher than those on interest-bearing checking accounts, but they usually require a higher minimum balance to start earning interest. These accounts provide only limited check writing privileges (three transfers by check, and six total transfers, per month), and often impose a service fee if your balance falls below certain level.

Certificates of Deposit (CDs)

These are also known as time deposits, because the account holder has agreed to keep the money in the account for a specified amount of time, anywhere from three months to six years. Because the money will be inaccessible, the account holder is rewarded with a higher interest rate, with the rate increasing as the duration increases. There is a substantial penalty for early withdrawals, so dont select this option if you think you might need the money before the time period is over (the maturity date).

BANKING:-

Banking is engaging in the business of keeping money for savings and checking accounts or for exchange or for issuing loans and credit etc. or it is transacting business with a bank ; depositing or withdrawing funds or requesting a loan etc. The term bank derived from that Italian word Banka and the banking refers to the companies that provides banking products and services such as checking and saving, deposits, loans, leases, mortgages credit cards ATM network, securities brokerage investment banking insurance, mutual funds and pensions (Klamath, 2005). A bank is a financial institution that accepts deposits into lending activities. Banks primarily provide financial services to customers while enriching investors. Banking means accepting for the purpose of lending or investment of deposits of money from the public repayable on demand or otherwise one withdraw able by cheque, draft or otherwise. Banks in India were started on the British Pattern in the beginning of the 19th century in those days, all the. At the time of second world war about 1500 joint stock banks were operating in undivided India, out of which over 1400were non-scheduled banks. These banks were managed by bad and dishonest management and naturally there were number of failures. Hence the government has to step in and the banking companies act 1949 was enacted which led to gradual elimination of weak banks that were not in the position of fulfills the various requirements of the act. In order to strengthen the weak banks and receive public confidence in banking system a new section45 was inserted in the Banking Regulation Act in September 1960,Empowering the government of India to compulsory amalgamate weak unit with stronger ones on the recommendations of RBI, A financial institution is not a banking institution if it does not perform the two primary functions: (i) accepting chequeable deposits, and (ii) making advances or offering loans. Thus,
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LIC is a financial institution but not a bank, as it offers loans but does not accept chequeable deposits from the people. Post offices are not banks, even though they accept deposits from the people. Because they do not offer loans.

Role of Banking in Economic development

Banks provide funds for business as well as personal needs of individuals. They play a significant role in the economy of a nation. Let us know about the role of banking. Banks serve as a channel between savers and investors. Savers deposit their funds with the banks, and investors borrow the funds from the banks. In the absence of banking system, bulk of the savings would have the investors It encourages savings habit amongst people and thereby makes funds available for productive use. It acts as an intermediary between people having surplus money and those requiring money for various business activities. It facilitates business transactions through receipts and payments by cheque instead of currency. It provides loans and advances to businessmen for short term and long term purposes. It also facilitates import export transactions. It helps in national development by providing credit to farmers, small- scale industries and self-employed people as well as to large business houses which lead to balanced economic development in the country. It helps in raising the standard of living of people in general by providing loans for purchase of consumer durable goods, houses, automobiles, etc. Banks help rural sectors. They give liberal loans at concessional rate of interest to the farmers for the purchase of good seeds, agricultural tools and equipments for the sake of agriculture. By providing credit to the entrepreneurs, banks encourage innovations. New products come to the market. It has a favorable effect on economic development.
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Types of Banks
There are various types of banks which operate in our country to meet the financial requirements of different categories of people engaged in agriculture, business, profession, etc. On the basis of functions, the banking institutions in India may be divided into the following types:
A.

Commercial Banks:
Private sector banks Public sector banks Foreign banks

i. ii. iii.

B. Development Banks C. Specialized Banks(EXIM Banks, SIDBI,NABARD) D. Central Banks (RBI, in India) E. Cooperative Banks:
i. ii. iii. Primary credit societies Central cooperative banks State cooperative banks

Commercial Banks
A commercial bank is that financial institution which accepts deposits from the people and gives loans for the purpose of consumption or investment. Besides, commercial banks these days perform various other functions such as credit creation, transfer of funds, agency jobs and general services. In addition to giving short-term loans, commercial banks also give medium-term and long-term loan to business enterprises. Now- a- days some of the commercial banks are also providing housing loan on a long-term basis to individuals.

Types of Commercial Banks

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Commercial banks are of three types i.e., Public sector banks, Private sector banks and Foreign banks.

i.

Public Sector Banks: These are banks where majority stake is held
by the government of India or Reserve Bank of India. Examples of public sector banks are: State Bank of India, and nationalized banks like Bank of India and Canara Bank etc.

ii.

Private Sector Banks: In case of private sector banks majority of

share capital of the bank is held by private individuals. These banks are registered as companies with limited liability. For example, HDFC Bank, The Jammu and Kashmir Bank Ltd., Axis Bank, Bank of Rajasthan etc.

iii.

Foreign Banks: These banks are registered and have their

headquarters in a foreign country but operate their branches in our country. Some of the foreign banks operating in our country are Hong Kong and Shanghai Banking Corporation (HSBC), CITI Bank, American Express Bank, Standard & Chartered Bank, Grind lays bank etc. The number of banks operating in our country has increased since the financial sectors reforms of 1991.

Development Banks
Business often requires medium and long-term capital for purchase of machinery and equipment, for using latest technology, or for expansion and modernization. Such financial assistance is provided by Development Banks. They also undertake other develop subscribing to the shares and debentures issued by companies, in case of under subscription of the issue by the public. Industrial Finance Corporation of India (IFCI) and State Financial Corporations (SFCs) are examples of development in India.

Specialized Banks
There are some banks, which cater to the requirements and provide overall support for setting up business in specific areas of activity. EXIM Bank, SIDBI and NABARD are examples of such banks. They engage themselves in some

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specific area or activity and thus, are called specialized banks. Let us know about them.

i.

Export Import Bank of India (EXIM): If you want to set up a

business for exporting products abroad or importing products from foreign countries for sale in our country, EXIM bank can provide you the required support and assistance. The bank grants loans to exporters and importers and also provides information about the international market. It gives guidance about the opportunities for export or import, the risks involved in it and the competition to be faced, etc.

ii.

Small Industries development Bank of India (SIDBI): if you

want to establish a small-scale business unit or industry, loan on easy terms can be available through SIDBI. It also finances modernization of small-scale industrial units, use of new technology and market activities. The aim and focus of SIDBI is to promote, finance and develop smallscale industries.

iii.

National Bank for Agricultural and Rural Development (NABARD): It is a central bank or apex institution for financing
agricultural and rural sectors. If a person is engaged in agriculture or other activities like handloom weaving, fishing, etc. NABARD can provide credit, both short-term and long-term, through regional rural banks. It provides financial assistance, especially, to co-operative credit, in the field of agriculture, small-scale industries, cottage and village industries

handicrafts and allied economic activities in rural areas.

Central Bank
Central Bank is the apex bank responsible for controlling the entire banking system of a country. Such a bank does not deal with the general public. It acts essentially as governments banker; maintain deposit accounts of all other banks and advances money to other banks, when needed. In case of underdeveloped economies, it is instrumental in the process of growth. It is the sole agency of note issuing in a country. It serves as a banker to government and controls the supply of money in the country. In India,
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Reserve Bank, in England, Bank of England and in America Federal Reserve System operates as central bank. Although, the first central bank in the world was set up in 1668 in Sweden, effective central banking came into being in 1694 with the establishment of Bank of England.

Co-operative Banks
The word co-operative stands for willing to work together in the production and marketing of goods, it is profitable to both producer and consumer to avoid middlemen. If, for instance, farmers can set up their own markets instead of sending their produce to a wholesaler, they can sell at a price that includes only their costs and a fair profit: Additional wholesale and retail costs are avoided, and prices to the consumer are kept relatively low. In order to take part in this kind of direct production-marketing enterprises, people have formed cooperatives these are voluntary associations of either producers or consumers who band together group members benefits for them. Cooperative organizations formed for financial benefits exist in most countries of the world. The cooperative way of doing business takes many forms, ranging from local to regional and federated organizations and from highly specialized to multipurpose societies. The cooperative banks have a three tier structure. At the top level there are state cooperative banks, at the district level there are central cooperative bank, at local level there are rural primary cooperative banks and urban primary cooperative banks. Cooperative banking structure h unique position in the rural credit delivery system of India. The cooperative banking sector which is now a century old has a significant role in the field of credit to the rural through the short-term and long-term structure from many years the cooperative banks are the prime institutional agencies with a vast network, wide coverage and reach up to the remote areas. Keeping the view of cooperation the H.P. State Cooperative Bank was established in Himachal Pradesh in august 1953 under the
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cooperative Society Act, 1912. Onward from its establishment the bank is developing day by day and satisfying the needs of many people .

Seven Principles of Cooperation:

1. Voluntary and Open Membership 2. Democratic Members Control 3. Member Economic Participation 4. Autonomy and Independence 5. Education Training and Information 6. Cooperation among Co-operatives 7. Concerned for the community

Types of Co-operative Banks:

Cooperative is a voluntary association of people of usually limited means pursuing for common cause through democratic & cooperative principles. A bank is a financial institution accepting public from the public repayable on demand for onward lending. A. Short term Structure: i. ii. iii. State Cooperative Bank District Central Cooperative Bank Primary Cooperative Societies

B. Long term Structure: i. ii. iii. State Cooperative Agriculture and Rural Development Bank District Cooperative Agriculture and Rural Development Bank Primary Cooperative Societies

C. Urban Commercial Banking. The banks of Short-term Credit Structure generally advance loans for shortterm & medium term only. Whereas the long-term credit structure takes care

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of long term credit requirements. The urban coop. banks provide commercial banking services in urban areas. There are three types of co-operative banks operating in our country. They are primary credit societies, central cooperative banks and cooperative banks. These banks are organized at three levels, village or town level, district level and state level. I.

Primary Credit Societies: These are formed at the village or town

level with borrower and non-borrower members residing in one locality. The operations of each society are restricted to a small area so that the members know each other and are able to watch over the activities of all members to prevent frauds.

II.

Central Co-operative Banks: These banks operate at the district

level having some of the primary credit societies belonging to the same district as their members. These banks provide loans to their members (i.e., primary credit societies) and function as a link between the primary credit societies and state co-operative banks.

III.

State Co-operative Banks: These are the apex (highest level) cooperative banks in all the states of the country. They mobilize funds and help in its proper channelization among various sectors. The money reaches the individual borrowers from the cooperative banks through the central co-operative banks and the primary credit societies.

COOPERATIVE MOVEMENTS IN HIMACHAL PRADESH: AN

OVERVIEW The word Himachal derives its origin from the two words, Him and Anchal which means snow and lap respectively. Thus, entomologically, Himachal Pradesh stands for the region which lies in the slopes and foothills of snow i.e. the Himalaya. Before 1948, this region was known as the Punjab Hill states. In March 1948, Himachal Pradesh emerged on the national scene as a centrally administrated territory which comprised 21 East Punjab Hill State. In
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1954, the territory of part C state of Bilaspur was merged with Himachal Pradesh. In 1966, on the basis of the report of the three members Punjab States Reorganization Commission, Hilly Areas of the erstwhile Punjab mainly Kangra, Kullu, Shimla, Nalagarh, Lahaul and Spitti and some area of Hoshiar district were merged into Himachal Pradesh. In 1971 Himachal Pradesh had given the status of full-fledged state. Presently, the state comprises of twelve districts namely Shimla, Chamba, Kangra, Una, Bilaspur, Hamirpur Mandi, Kullu, Lahaul and Spitti, Solan, Sirmourand Kinnaur. According to the census report of 1991, the state has a total population of 51, 11,079. District Kangra tops the list of the population size while Lahaul and Spitti have the lowest population. Geographically, Lahaul and Spitti have the largest area while Hamirpur has the smallest one.

HISTORY OF CO-OPERATIVE BANK:

The beginning of Indian cooperative movement was placed at 1904;The cooperative credit societies Act was passed on 25th March, 1904. The Indian Cooperative Movement continued to be a predominantly credit movement till the eve of interdependence. After interdependence, cooperation was

accorded an important place in the planned economic development. Cooperative Credit Institutions as an integral part of Rural Credit System in India has completed 104 years, the Commercial Banks and Regional Rural Banks have been for almost 37 and 31 years respectively. In fact, this structure has been very unique as compared to any other country in the world. It serves around 120 million rural households residing in about seven lakh villages through its 92000 primary agricultural credit societies, 1146 branches of short-term cooperatives, 2213 branches of long term cooperatives, 32948 branches of commercial banks and 11426 branches of regional rural banks. The Himachal State Co-operative Bank was registered on 21th August 1953 under the Cooperative Societies act 1912 after amalgamating the Mahasu Central Cooperative Bank Ltd; the Mandi Central Cooperative Bank; and the Chamba Central Cooperative Bank Ltd. The Bank started its operations on 15th March 1954. In the year 1955, Bank of Sirmour, a Joint Stock Bank was
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also merged in it. As a result of reorganization of Punjab State on 1 st November, 1966, the erstwhile districts of Kangra, Kullu, and Lahaul & Spitti, parts of Hoshiarpur, Gurdaspur and Ambala districts were transferred end merged with Himachal Pradesh. As a result, the Cooperative Banking System of the merged areas was also transferred to Himachal Pradesh. In these areas, the Kangra Central Cooperative Bank and the Jogindra Central Cooperative Bank were already functioning. In the year, 1972 Solan was given the status of separate district. Two branches of Himachal Pradesh State Cooperative Bank Ltd; were functioning at Solan and Arki, while one branch of Jogindra Central Cooperative Bank was functioning at Totu, which fell in Shimla district. The liabilities and assets of these branches were transferred to each other on 29th September 1976. Now in Himachal Pradesh, the state cooperative bank Ltd; with Head Office at Shimla is functioning as a central cooperative bank in 6 districts namely Shimla, Bilaspur, Mandi, Chamba, Sirmour, and Kinnaur having 36 blocks. The Kangra Central Cooperative Bank with Head Office at Dharamashala is functioning as a central cooperative bank in 5 districts having 28 blocks. In Solan district, the Jogindra Central Cooperative Bank is catering to the needs of people in 5 blocks. Besides, being a state cooperative bank for the stat as whole, the Himachal Pradesh cooperative bank is working as the financing agency for the 6 districts of state and an apex bank for whole of the state. The Himachal Pradesh Co-operative bank is serving the people of the State through a network of 190 branches and Extension Counter of which about 94% is in the rural areas of the State and one branch at New Sabzi Mandi Azadpur New Delhi for the benefit horticulturists of the State.

PERFORMANCE OF THE BANK OVER THE YEARS (Fig. In Rs.Lacs)

Particular 1955 2003 2005 2006 2010 31-032011 No. of Branches Share 7.32 740.08 761.98 757.73 814.00 837.69 837.69 10 142 148 154 175 175 30-062011 175

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Capital Deposits Loans & Advances Investment Working Capital Recovery %age Profit 68.88 79.08 72.24 72.62 78.11 57.67 8.25 52.23 129996.00 193082.89 140055.89 246227.80 170735 278129 385951 592042 390487 662237 387395 657468 41.14 29.19 150674.29 41863.69 186268.70 77044.47 212052 78564 494177 164485 500552 221043 503146 225149

8297 (Gross)

What are the functions of Cooperative Banks in India?

The cooperative bank in India plays an important role even today in rural financing. The business of cooperative bank in urban areas also has increased phenomenally in recent years due to the sharp increase in the number of primary co-operative banks. Cooperative Banks in India are registered under the Co-operative Societies Act. The cooperative bank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949and Banking Laws (Cooperative Societies) Act, 1965.

Cooperative banks in India finance rural areas under:

Farming Cattle Milk Hatchery Personal finance

Cooperative banks in India finance urban areas under:

Self-employment Industries Small scale units Home finance Consumer finance
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 Personal finance

Main Features of Cooperative Bank:

1. The bank is conscious of its main objective to the economic interests of the members of the bank /rural masses in accordance with the cooperative principles and to facilitate the operations of the cooperative societies registered under the Act. 2. The H.P. State cooperative bank Ltd is serving the people of the state, particularly rural masses through a network of 175 branches and 15 extension counters in six districts of Himachal Pradesh. The Bank follows a policy of bank expansion in such a way that besides the financial viability, social obligation aspect is also taken into consideration so that every nook and corner of the rural areas is provided banking facilities. 3. The H.P. cooperative bank in rest of six districts is serving the people through 180 branches of its two-affiliated district. Central Cooperative banks viz. The Kangra Central Cooperative Bank & Jogindra Central Cooperative Bank. 4. To meet the challenges of economic liberalization and technological advancement. the bank has implemented the centralized core banking solution (CBS) of Natural Technologies Ltd. In 14 prime branches and is now capable of extending banking to its customers anywhere, with faster processing and greater customer satisfaction. 5. The bank is fully computerized as on date with 53 branches under (CBS) and under (TBA) system.

POSITIONAL STATUS
The Himachal Pradesh State Cooperative Bank works at the Apex level in the hierarchy of the cooperative banking. It acts as the central financing agency to the Kangra Central Cooperative bank & Jogindra Central Cooperative bank the bank has the working capital of Rs. 418334.59 lacks and deposits are 343375.01lacks.

MISSION AND VISION

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Mission/Targets of the bank are to help the self helped groups by providing them loans at low rate. Providing the education to the workers/employees of the cooperative societies. Managing the financial status of the cooperative societies. I. Connecting all the branches with the core banking system (CBS) to provide the online banking facility till 2010. II. III. IV. Installing the ATM Machines in all the branches. Achieving the schedule status for the bank. Providing the retail banking to the customers with the help of Information Kiosk. V. Providing the SAMAGR banking facilities to the customer in one branch.

VISION
I. To providing the loans to the cooperative societies to establish the viaduct pariyojna. II. Starting the new schemes for the cooperative societies to recover the NPA (Non Performing Assets). III. Opening the education center for cooperative societies to

improve/increase the business through giving them proper training &suggestions. IV. Providing the loans for new schemas time to time and loans schemes should be easily understood by the people. V. Repairing the plans for encouraging &awarding the employees of the Bank.

Present Status of Bank In term of market share the market share of the bank in the Himachal Pradesh is about 55% of the total shares of the banks in Himachal Pradesh. When we talk about the size of the bank it has 175 branches all over the Himachal Pradesh. The major competitors of the Himachal Pradesh State Cooperative Bank and its alliance are SBI, ICICI, Punjab National Bank, UCO bank and
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other banks. In case if the bank has shortage of money and bank needs the money is the share holders or the RBI. When we say bank need money then the question arises why the bank need the money it may be for lending the money to the needy persons, or to provide the money to the depositors in case when the depositor takes the money back or person who takes the loan are known as the customers of the bank. Awards and Other Recognitions
The H.P. State Cooperative Bank Ltd; has granted the national award for achieving overall excellence in banking operations. The H.P. State Cooperative Bank Ltd; the first cooperative bank to implement core banking computer solution (the facilitator of internet banking) where as only few of nationalized banks are providing this system. The H.P. State Cooperative Bank Ltd; is one of the few organizations which are in true profit and are paying the dividend continuously. The H.P. State Cooperative Bank ltd; has doubled the agricultural advancements in about 2 years against the planned period of Govt. of India of each 3years. The H.P. State Cooperative Bank Ltd; is the winner of the Best Outreach Award for SHGs. Bank has innovated and implemented loan schemes to suit the requirements of all sections of the society. The main emphases of banks services are deprived rural masses. Bank is also involved in implementing the programs related to eradication of poverty run by the Govt. like SGSY/SJSRY, Rural Housing etc. The credit needs of farmers are also fulfilled by the bank at low rate of 7%.

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ORGANISATIONAL STRUCTURE:
The organizational structure of the H.P. State Cooperative Bank Ltd Is shown below:

General Body Board of Directors Executive Committee Chairman Chief Executive Officer (Managing Director) General Manager (Admn.) Dy. General Manager (Admn.) (Banking) Section Heads Staff District Manager Staff Branch Manager Staff Section Heads Staff District Manager Staff Branch Manager Staff General Manager (Banking) Dy. General Manager

WORKING OF COOPERATIVE BANK: The bank works in three steps:

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1. HEAD OFFICE: Various activities take place in the Head Office i.e. planning, organizing, directing, staffing, controlling, reporting, and budgeting. There are various sections under which these activities take place. The sections are: Planning section: BDD(Business Development Department) Recovery section Recruitment section Internal checks and control system Statistical section Computer section Law section. 2. DISTRICT OFFICE: It is the controlling office for the managers. 3. BRANCH: Actual business of the bank takes place at the branch The bank works by a 2-tier system i.e. the central cooperative bank and the packs

CONTROL SYSTEM IN COOPERATIVE BANK:

One inspection of the branch by the district manager Surprise visit in the head office Report is submitted of the visit is given to the branches and one month time is given for rectification if needed.

Section Visit in HP State Cooperative Bank and Their Function:

Loans and Advances Section: The main aim of loan and advances section is to treat their customer like a guest. This section mainly looks that the documents which are needed by the bank while giving loan are properly arranged or not and all the certificates required are given by the customer or not. In this bank the main preference is given to himachalies. This bank is of the state and for the state.

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An individual can only take loan up to 60 lakh including all cases or all loans from all banks.

Branch Control Section:

Branch control section regulates and monitors all the Branches of the bank. This section mainly looks after the affairs of the branches. This section is assigned the duty to look after the procedures of the branches (this branch is following the entire circular and notices issued by the bank or not). If the instructions or notices or circulars are not followed by the bank a formal letter is issued by the bank for further details.

Vigilance section:
The main purpose of vigilance section is to inspect the fraud and the further action is taken. The vigilance section inspect or verify things correspond and physically.

PRODUCT AND SERVICES OF THE HPSCB

A. DEPOSIT PORTFOLIO: Demand Deposits Current Account:
Current Account is a running account which may be operated upon any number of times during a working date. There are no restrictions imposed on the amount of the withdrawals from a Current Account. Eligibility All types of customers. Minimum Amount Individual Rs 2000/- minimum balance Rs.50/- for default Other than Individual Rs3000/- minimum balance Rs. 100/- for default

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Nomination Facility No clean overdraft is allowed against liquid security i.e. duly discharges Term Deposit Receipts.

Saving Account:
Savings Bank Account is the most common type of demand deposit. The depositor can open the account, deposit and withdraw money as and when required. There is a minimum balance required to be maintained and a cheque book is given to the customer to enable withdrawals. The customers can withdraw money using the withdrawal forms prescribed by bank and available at the branch. Eligibility All types of customers except firms Minimum Amount Rs 1000with cheque book facility Rs 500 without Cheque book Nomination Facility Nomination facility is available only for the individual & joint accounts.

Time Deposits

Recurring Deposit (RD):

A Recurring deposit or cumulative deposit account is a variation of Savings Bank account. It is an account intended to develop habits of savings on regular basis by the depositor with limited means. In this account type the depositor commits to deposit a fixed amount for a fixed period of time (for example Rs 100 every month for 12 months) and gets a lump-sum amount at the end of such period. The depositor does not get the intervening period. The terms i.e. fixed amount, interval and fixed time period that is decided at the time of opening the deposit cannot be altered. Eligibility All types of customers. Minimum Amount Rs 10 and in multiples of Rs 5 thereof. Maturity Period 12, 24, 36, 48, 60, 72, 84, 96,108,120months

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Payment of Installment The installment of any calendar month shall be paid on or before the last working day of that month Standing Instructions are accepted for transfer of monthly.

Fixed Deposit (FD):

Fixed deposit accounts which are also called term deposit also include the deposits revived by the bank for a fixed period and a fixed rate of interest specified in advance. Such deposits are repayable on the expiry of a specified period as indicated by the depositor. The periodicity of such deposits is generally fixed for periods of 12 months and above. Any deposit received in the nature of fixed deposits for the period less than 12months is called SHORT TERM DEPOSIT. Eligibility All types of customers. Minimum Amount Rs 500 Loan Against Deposit Loan against this deposit is allowed.

Him Puner-Nivesh Deposits:

This is a term deposit that can be opened for a minimum period of 12 months to a maximum period of 120 months. The depositor gets a lump sum amount at the end of the maturity and no interest is paid between. Eligibility All types of customers. Minimum Amount Rs500
Loan Against Deposit Loan against this deposit is allowed

Sarva Priya Deposit:

This is a form of term deposit wherein the depositor can deposit money for 12 months or more. The interest will be credited to the depositor on a monthly basis. The depositor must have or (open a new) Savings Bank Account to enable the bank to credit the interest in the SB account.
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Eligibility All types of customers. Minimum Amount: Rs1000. Maturity Period The deposit can be accepted for a period of 12 months and above.

Maha Laxmi Deposits:

This is a term deposit designed in such a way that the depositor gets double the money he deposits after a certain maturity period. The depositor does not get any interest in the intervening period. Eligibility All types of customers except firms Minimum Amount Rs 100 and in multiples of Rs 100thereof Maturity Period: 87months only.

B. LOAN PORTFOLIO:
Accepting deposits from the public is a liability on the bank unless the amount so mobilized is profitably and efficiently deployed in loans & advances and investment. The classical loan structure of a Cooperative Bank takes into account credit requirements of Agriculture/Cooperative Sector only. Number of new loan schemes were devised and incorporated in its loaning portfolio to take into account credit requirements of the public in general and to extend the advantages to the weaker sections of the society and to march with welfare programmers pronounced by the State. Cooperative Bank has introduced the following major schemes for the benefit of people/depositors: In order to help educated un-employed youths of the State and to assist them in productive ventures, a Self-Employment Loan Scheme has been launched to take care of all production and service activities.

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 A scheme for assisting brilliant students in pursuing their higher studies has been incorporated with a maximum admissible loan limit of Rs 15 lack for studies pursued abroad & Rs 7.5lacs for studies in India. The Bank has also started financing the beneficiaries as sponsored under the poverty eradication programme of the government viz. SGSY/SJSRY. The Bank has also entered into a tie-up arrangement with the H.P.SC/ST Dev. Corporation & HP Women Dev. Corporation for entertaining the proposals sponsored by them for financing under their margin/seed money scheme. A scheme for financing of individuals for purchase of vehicles for commercial use within meaning of SRTO (of NABARD) has also been implemented in order to improve the economic conditions of the people.

Home Loan:
HPSCB HOME LOAN makes your dream home come true! Maximum Limit Rs 10 lacks per employee. Eligibility Employees of Government Department/Boards/Corporations/Statutory Bodies etc Eligibility Criteria 50 times of the gross monthly salary of the applicant or Rs 10lacks whichever is less ensuring 35%take home salary by the loanee after payment of installment of loan. Margin 25% Repayment Period 15 years. Security House constructed/purchased shall be kept under charge of the bank along with one guarantor. One time collateral security by taking at 50% of its present value.

Car loan:
Maximum limit Rs 3.50 lacks per employee, per vehicle, however in exceptional cases loans up to Rs 6 lacks can be considered.

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Eligibility

Employees

of

Government

Department/Boards/Corporations/Statutory Bodies etc. Purposes Purchase of Vehicles for Self-use. Eligibility Criteria 90% of the invoice price of vehicle to be purchased or Rs 3.50 lacks whichever is less ensuring 35% take home salary by the loanee after payment of installment of loan. Margin 10% .6Repayment Period 5 Years.7Security Hypothecation of vehicle .

Personal Loan:
Maximum Limit Rs 1 lakh per borrower employee. Eligibility Employees of Government Department /

Boards/Corporation/Statutory Bodies etc. Purposes for purchase of consumer durable goods like computers, TV, Refrigerator, Household furniture, washing Machine etc. For self use Eligibility Criteria An employee can avail this loan to the extent of 10 times of his net monthly salary with a maximum limit of Rs 1 Lakh. Margin 10%. Repayment period 5 years. Security Hypothecation of assets/articles purchased.

Education Loan:
Maximum Limit Rs.3 lakh per borrower. Eligibility Students who have got admission to some professional or other courses and whose prospects of getting employment are very good. Purposes For pursuing higher studies by their children. Eligibility Criteria 50 times of the gross monthly salary of the applicant or Rs 10lakh whichever is less ensuring 35%take home salary by the loanee after

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payment of installment of loan. Margin Up to Rs 25000.25% above Rs 25000.30%

Repayment Period 5 years after the borrower gets employment of one year after completion of course whichever is earlier.

Hotel/Motel/Tiny Tourism Loan:

Maximum Limit 1500000/-without CA above 15Lakh with prior CA from NABARD. Eligibility Individual. Purposes To boost tourism activities. Repayment Period. Maximum period of five years including moratorium period of 1-2 years or completion of construction whichever is earlier. Collateral Security. The land and construction thereon along with other assets created shall be mortgaged/Hyp. In favor of the bank.

Other Loans are divided into following Categories: Priority sector (Farm sector) Non-priority sector (non-farm sector)

Priority sector loan:

1. Kisan Credit Card Scheme Individual/Society 2. Dairy entrepreneurship Development Scheme/HIM Dugdh Ganga Loan Scheme. 3. Pt. Deen Dayal Kisan Bagwan Samridhi Yojna for Poly House-II 4. Medium Term Agriculture Loan (Farm Plus) 5. Cash Credit Marketing Limits to societies 6. Tractor/Power tiller loan 7. Horticulture Loan Scheme 8. Small Ruminants and Rabbits

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Non-Priority sector Loan:

1. Loan under Tie-up with SC/ST Development Corporation with Women Development Corporation 2. Self Employment loan 3. Scheme for financing loan to Pensioners/ Ex- Servicemen against Pension-revision & incorporation thereof 4. Parivahan loan scheme 5. Gold Loan 6. SHG 7. Hydel Power Loan Scheme 8. Tourism cooperative societies 9. LPG Loan Scheme 10. Rural Godown Loan Scheme 11. Him Region Specific Loan scheme(Trucks) 12. JLG Loan scheme

C. OTHER FACILITIES RENDERED

Besides two primary functions of a Bank viz. accepting deposits from the public and development thereof in shape of loans and investment, the Bank is also offering ancillary services to its customers like; providing safe locker facilities to the customers, transfer of funds etc. 28 branches of the Bank, which mainly situated at District Head Quarters and selected Sub-Divisional Heads are providing the safe locker facility to the Customers. Safe Deposit lockers ATM Facility Fund Remittance Customer Grievances Cell, etc.

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SWOT ANALYSIS
The overall of a businesss strengths, weaknesses, opportunities, and threats is called SWOT analysis. SWOT analysis consists of an analysis of external and internal environments.

SWOT ANALYSIS
ENVIRONMENTAL SCAN
---------------------------------------------------------------

INTERNAL ANALYSIS ----------------------- STRENGTH WEAKNESS

EXTERNAL ANALYSIS -------------------------- OPPORTUNITY THREATS

External Environment Analysis:

In general, a business unit has to monitor key macro environment forces (demographic economic, technological, political-legal, and social-cultural) and microenvironment factors (customers, competitors, distributers, and

suppliers)that affect its ability to earn profits Then, for each trend or development, management needs to identify the associated marketing opportunities and threats. A marketing opportunity is an area of buyer need in which a company can perform profitably. Opportunities can be classified according to their attractiveness and their success probability. The companys success probability depends on whether its business strengths not only match the key success requirements for operating in the target market, but also exceed those of its competitors. Mere competence does not constitute a competitive advantage. The best-performing company will be the one that can generate the greatest customer value and sustain it over time. An
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environmental threat is challenge posed by an unfavorable external trend or development that would lead, in the absence of defensive marketing action, to seriousness and probability of occurrence. Minor threats can be ignored; somewhat more serious threats must be carefully monitored: and major threats require the development of contingency plans that spell out changes the company can make if necessary.

Internal Environment Analysis:

It is one thing to discern attractive opportunities and another to have the competencies to succeed in these opportunities. Thus, each business needs to periodically evaluate its internal strengths and weaknesses in marketing, financial, manufacturing, and organizational competencies. Clearly, the business does not have to correct all of its weaknesses, nor should it gloat about all of its strengths. The big question is whether the business should limit itself to those opportunities in which it possesses the required strengths or considered better opportunities to acquire or develop certain strengths. Sometimes a business does poorly because its departments do not work together well as a team. It is therefore critically important to assess interdepartmental working relationships as part of the internal environmental audit.

STRENGTH:-The strengths of the HP State Cooperative Bank Depending

on its external and internal environment are. 1. The bank is spread into only 6 districts due to its limited area it is easy to monitor minor requirements of the customers which may else ignored by other banks. 2. The bank provides the easiest way to open a new account into any of its branch as the customers has to fill minimum requirements which are asked by other banks. 3. The bank has the branches in the remote areas where the branches of other public banks are not yet opened which provides the strength. 4. As it is a government bank and never under losses the people have faith in the bank.
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5. As the bank is a cooperative bank thus bank gets the advantage of getting priority by the different cooperative societies for transactions and loans. 6. It has great amount cooperation with other district cooperative banks (Kangra Central Cooperative Bank, Jogindra Central Cooperative Bank). 7. The HP State Cooperative Bank has well organizational structure. 8. The main priority of The HP State Cooperative Bank is member services rather than profit. 9. The HP State Cooperative Bank well established in the community. 10. Adhere to cooperative values and principles and follow rules and regulations which are given by the government. 11. The HP State Cooperative Bank deals the user as not only the customers but also the member of the bank. 12. The HP State Cooperative Bank Has the capacity to thrive in crises. 13. It is a government bank and has a government backup. 14. The main emphasis of The HP State Cooperative Bank is on GLOBALISATION.

WEAKNESSES:1. The HP State Cooperative Bank has less resources as compared to the other nationalized and public banks. 2. The staff in cooperative bank is not specialized. 3. No internet banking and mobile banking. 4. Political pressures on the employees of the bank as compared to the other banks. 5. ATMs are not well spread like other nationalized and public banks. 6. In the HP State Cooperative Bank dependence syndrome is there. Each person thinks that his work may be done by the other and is not always willing to do their work. 7. All branches are not computerized. 8. There is some sort of government control over the working of the HP State Cooperative Bank and this leads to transfers and discomfort of employees. 9. In Cooperative Banks ATM only cooperative bank ATMs work and no other banks ATMs work.
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10. Lack of time management. 11. Less advertisement is other weakness of The HP State Cooperative Bank. 12. Lack of knowledge about the many aspects of banking to the employees due to lack of specialization in that field of work.

OPPORTUNITIES:1. Being a government bank it has the capability to finance government projects. 2. Providing ATM facility may take bank a long way. 3. With the growth of Axis bank in the term of customers and market share the growth of bank is also per mote. 4. Existence of bank in remote areas. 5. Being government Cooperative Bank this bank gets priority over the other banks for cooperative societies. 6. As it is a state cooperative bank this bank is bank in demand.

THREATS:1. 2.

Easy policies and new schemes of the public banks. Online banking and mobile banking facilities of other nationalized and public banks.

3.

Facilities like ZERO BALANCE ACCOUNT by some of public sector bank and other banks. Employees strikes. Advent of MNC Banks is a big threat to the cooperative Bank. Public banks are of great threat to the HP State Cooperative Bank More significant brand image in public acceptance of product and services of public and nationalized banks as compared to cooperatives banks.

4. 5. 6. 7.

8. 9.

Less documentation of the public banks for different types of loans. Increasing market share of the other bank threaten the HP State Cooperative Bank to its position in the market.

10.

Instant/one minute service provided by some banks.

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FINDINGS AND CONCLUSION

FINDINGS:
1.

Fr study purpose I have taken the followings factors:

Interest on loan and savings Publicity & advertisement Behavior of staff towards customers Knowledge of staff regarding bank services Banks innovation towards introducing new services Safety of deposit Speed of Delivery Through, I have found that there is no significant difference between the factors i.e. customers have given equal importance to all the factors.
2.

64% people maintained saving account, 20%loan account, and 6% current account.

3.

Banks have adopted the many technologies but for study purpose I taken only for technologies like online transfer of cash, Mobile Banking, ATMs and Internet Banking. People are equally aware of technology considered for study. ATMs has been found a little bit unknown technology among customers.

4.

Security related apprehensions have been found more influencing to prevent the customers from using new technologies than the factorUnawareness about the new technologies.

5.

According to people Public Banks are more advanced in technology than cooperative banks.

6.

56% people are agree that there are improvement in customer services in this bank and 28% are strongly agree & rest are undecided.

7.

52%people think that cooperative banks offers competitive interest & charges and 48% are not. 50% people feel the need of customers grievances redressed system and rest dont feel.

8.

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SUGGESTIONS:1. Banks should focus more on safety of deposits as this has been found most important in affecting the customers attitude towards services of Banks 2. No doubt, globalization and advancement in technology has made introduction of products and excess to new services but banks should not underestimate the customers as customers are essence of success in todays life. 3. Private Banks are most advanced in technology than public banks and cooperative banks in spite of that fact that private bank came into existence after public and cooperative banks. So public and cooperative banks should consider the technology as an important factor for growth. 4. Most of customers are not using new technology like internet banking and mobile banking because of security related apprehensions. So banks need tighten their security system so that their customers feel comfortable while accessing to new technology.
5.

Many customers are unaware of customers grievances redressal system. So banks should create awareness about this.

CONCLUSION:Banks are the most important constituents of the financial infrastructure of a country. They play a vital role in bringing about the desired change in the economic development of a to the investor a source of finance. Banks help in the implementation of various welfare programs of the government. Though originally banks were conservative in their approach. The initiative of the RBI they have taken certain measures to improve customer service. Many banks have started the process of setting up core banking solutions in order to provide their customers better services at reasonable costs. The RBI also set up many committees in order to understand the problems faced by the customers and took certain remedial measures to improve them. In the present scenario, the banking sector in India has become more upgraded in terms of supply, product range and customers reach. The
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expansion, greater competition and diversification of ownership of the banks have made this sector more efficient in terms of standards. Today, the face of the present banking sector has changed. Easier access to knowledge, advancement in technology and introduction of tailor-made financial products has become the key features of banking. Liberalization of financial services and expansion of banking services have resulted in enhanced efficiently and systematic resilience. There are also concerns before banks which they need to deal with on a priority basis. In order to survive in a global competitive scenario and to protect the depositors, interest and public faith, banks need to have: a fraud-free culture, an effective customer grievances redressed cell and an appropriate human resource system. Unfortunately all these conditions are not satisfactory in the banking system.

PERSONAL LEARNING
Having training in HP State Cooperative Bank was really informative and educational. I was able to learn lots of things, which I was not renewing earlier. Firstly I learned what a bank is, its organization structure, features and objectives of banks, types of banks, functions of banks. I learned about various types of account its and various types of loans. The basic idea regarding the banking system was given. After that learned about the history of co-operative bank, its formation, its branches, its features and objectives. I learned about various deposits and loan schemes. My topic was problems and prospects of HP State Cooperative Bank Ltd. By working on this topic, I get information regarding the various problems faced by the staff of HP State Cooperative Bank while rendering services to the customers. I learned each minute thing about this. I learned about the internal behavior of the employees of the HP State Cooperative Bank then I learned how they maintain good relation with customers. I was given knowledge regarding the strength, weakness, opportunities and threats of bank.
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Then we were also sending to various branches for understanding that how work was done there. I, personally, enjoyed my work there, gathered lots of information there. I learned how auditing is done; it is a review of financial statements of a company resulting. In publication of independent opinion on whether or not those financial statements are relevant accurate, complete and fairly presented. I learned cash management as it is like blood in human body, Its need to be managed judiciously, handled carefully and economical. I learned about generating reports, day book reports, and general ledger reports. I learned about computerized branches like how to access the system, password maintenance, day begin operations. I learned about hose peeping where essential registers were maintained like visit register voucher register, receipt register, dispatch register, attendance register, securities register and locker register etc. I learned regarding draft payables A/c, Suspense/sundry assets. I learned how various accounts were maintained like current accounts, savings accounts etc. I learned about various advances against, deposits, government securities, Gold ornaments. I got knowledge regarding cash credit limit, salaried employees, Advances against life insurance policies, I learned regarded SGSY, I learned regarding various frauds and how these were decided and removed. We were also sent to various sections of the bank like law section, statistical section, loan section, recovery section, branch control section, it section we grab all information from there. We also worked in BDD Department which is Business Development Department, it is to develop and improve banking business to prepare loan and deposit schemes to fix and revise rates on all products, clarification of deposits, design various schemes and evaluating whether it is feasible or hot, we learned about branch opening process and allotment of targets to various branches these is also a women empowerment cell in the bank to organized and motivating women.
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Job training is the best method for teaching knowledge and skill which can be acquired through personal observation in a relatively short period. Economical method: this method is very economical because no additional space, equipment, personnel or other facilities are required for training. Teaching of knowledge and skill in short time period: It is appropriate for teaching knowledge and skills which can be learned in short period of time.

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