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Punjab State Cooperative Bank- Deposit & Credit Schemes

ACKNOWLEDGEMENT
It is imperative for successful completion of a task to complement those who made that
task work.
I sincerely bow my head and thank the almighty for bestowing his blessings on me. This
is utmost pleasure of mine, to show my heartfelt gratitude to those individuals who have
given their considerate support and guidance. This project would not have been
possible without them.
I am falling short of words to express my sincere thanks to the management of Punjab
State Co-operative Bank, Sangrur for providing me an opportunity to undergo
training in their reputed organization. I am deeply motivated and encouraged after
working with the very efficient and cooperative staff of PSCB.
I am highly indebted to my faculty members of School of Govt. Ranbir College Sangrur
for helping me in various ways.
My sincere regards to my friends who worked with me all through the project and helped
me in the noble accomplishment.
I thank my parents who have always been my driving force to work hard and keep the
learning process continuous and never ending.

Punjab State Cooperative Bank- Deposit & Credit Schemes

TABLE OF CONTENTS
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TOPIC

PAGE NO.

Certificate
Acknowledgement
List of tabs
Abstract/Summary
INTRODUCTION
Industry
Company Background
Project Detail

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37

Research Methodology
Research Design
Literature Review
Chapterisation
Data Analysis and Interpretation
Limitations
Conclusions
Recommendations
Bibliography
Annexures

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Punjab State Cooperative Bank- Deposit & Credit Schemes

LIST OF TABS/FIGURES
SRNO.

TOPIC

PAGE NO.

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Banking Structure in India


The Banking Matrix
Structure of Cooperative Banking
PSCB, No. of braches, Address and Date of Origin
PSCB- Organization Structure
Profit and Loss of PSCB branches for three consecutive years
from 2010 to 2012
Target on Term Deposits for the financial year April 2013-March
2014
Interest Rates on Deposits with effect from 20.12.2012
Types of credit Schemes
Target on Loans for the financial year April 2013-March 2014
Interest Rates on Loans with effect from 20.12.2012
Uses of Finacle
PSCB-MM, Total No. Of Accounts
PSCB-MM,Average Cash in hand
PSCB-MM, Average Deposits
PSCB-MM,Average Loans and Advances
Eligibility Criteria for availing loans
Analysis and Interpretation Charts
Demographic Analysis
Knowledge and Awareness among customers
Co-relation analysis
Expectations of Customers
Comparison between PSCB(MM), Head Office & PSCB (total) of
their annual profit
Annexures
Questionnaire
Comparison Of Interest Rates

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Punjab State Cooperative Bank- Deposit & Credit Schemes

SUMMARY
The Cooperative Sector has been playing a significant role in the area of disbursing
agricultural credit, providing market support to farmers, distribution of agricultural inputs
and imparting cooperative education and training etc. The basic objective of the
Cooperation Division is to design long term and short term strategies for reducing
economic disparities between the downtrodden rural people and the rural rich as well as
regional imbalances including rural and urban differences.
In todays competitive environment where corporates are constantly searching for ways
to keep a float and sustain the market share, they have to find newer and better ways to
satisfy customer needs. To run any organization successfully the management needs to
think always for the betterment of their service and product.
Banking business is now expanding three folds and is facing tough competition. The
Private sector along with the public sector is performing high on scale and ruling the
markets. Adding to the glory, there are foreign banks that have also captured a
commendable market share.
Considering this, the State Cooperative Banks need to take such steps which assist
them in marching ahead in the race and survival of the fittest. This has always been the
motto of Cooperative Banks and in order to achieve this, we are hereby analyzing the
level of satisfaction of PSCB customers and their expectations.

Punjab State Cooperative Bank- Deposit & Credit Schemes

BANKING INDUSTRY AN OVERVEIW


BANKING DEFINITION
In simple words, Banking can be defined as the business activity of accepting and
safeguarding money owned by other individuals and entities, and then lending out this
money in order to earn a profit. However, with the passage of time, the activities
covered by banking business have widened and now various other services are also
offered by banks. The Banking services these days include issuance of debit and credit
cards, providing safe custody of valuable items, lockers, ATM services and online
transfer of funds across the country/ world.

WHAT IS A BANK
Bank is a financial institution that undertakes the banking activity that is, it accepts
deposits and then lends same to earn certain profit.

BANKING STRUCTURE IN INDIA


RESERVE
BANK OF INDIA
(APEX BANK)
SCHEDU
LED
BANKS

COMMERCIAL
BANKS

COOPERATIVE
BANKS
CENTRAL COOPERATIVE
BANKS
STATE
COOPERATIVE
BANKS
PRIMARY
AGRICULTURAL
CREDIT
SOCITIES

UNSCHE
DULED
BANKS

PUBLIC
SECTOR

SBI &
ASSOCIAT
ES

PRIVATE
SECTOR

FOREIGN
BANKS

OTHER
NATIONALISE
D BANKS

REGIONA
L RURAL
BANKS

Punjab State Cooperative Bank- Deposit & Credit Schemes

BANKING-HISTORY AND DEVELOPMENT


Banking in India originated in the last decades of 18th century. The first banks were The
General Bank OF India, which started in 1786, and Bank of Hindustan, which started in
1790; both are now defunct. The oldest bank which is in existence is the State Bank of
India, which originated from the Bank of Calcutta in June 1806, which almost
immediately became Bank of Bengal. This was one of the three presidency banks, the
other two being the Bank of Bombay and the Bank of Madras, all three of which were
established under the Charters from the British East India Company.
For many years the Presidency Banks acted as quasi-central Banks, as did their
successors. The three banks merged in 1921 to form the Imperial Bank of India, which
upon Indias independence, became State Bank OF India.
Foreign Banks started to arrive, particularly in Calcutta, in the 1860s. The Comptoire
dEscompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in
1862. Then a French colony followed. HSBC established itself in Bengal in 1869.
Calcutta was the most active trading port in India, mainly due to the British Empire, and
so became a Banking Center.
The period between 1906 and 1911, saw the establishment of banks inspired by the
Swadeshi Movement. It inspired local businessmen and political figures to establish
banks for and of Indian Community. A number of banks established then have survived
to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda,
Canara Bank and Central Bank of India.
The Reserve Bank of India, Indias central banking authority, was nationalized on
January 1, 1949 under the terms of the Reserve Bank of India (Transfer to Public
Ownership) Act, 1948. In 1949, the Banking Regulation Act also provided that no new
bank or branch of an existing bank could be opened without a license from the RBI.
NATIONALISATION
Despite the provisions, control and regulations of Reserve Bank OF India, banks in
India except SBI, continued to be owned and operated by private persons. By the
1960s the Indian Banking Industry had become an important tool to facilitate the
development of the Indian Economy. At the same time, it had emerged as a large
employer, and a debate had ensued about the nationalization Of Banking Industry.
The Government of India issued an ordinance and nationalized the 14 largest
commercial banks with effect from the midnight of July 19, 1969. Within 2 weeks of the
issuance of ordinance, the Parliament passed the Banking Companies (Acquisition and

Punjab State Cooperative Bank- Deposit & Credit Schemes

Transfer of Undertaking) Bill, and it received the presidential approval on 9 th August


1969.
A second dose of nationalization of 6 more commercial banks followed in 1980. The
stated reason for nationalization was to give the government more control of credit
delivery. With this, the government of India controlled around 91% of Banking Business.
Later on, in the year 1993, the government merged New Bank of India with Punjab
National Bank. It was the only merger between the nationalized banks and resulted in
the reduction of the number of nationalized banks from 20 to 19.
After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to
the average growth rate of Indian Economy.
LIBERALISATION
In the early 1990s, the then Narsimha Rao government embarked on a policy of
liberalization, licensing a few number of Private Banks. These came to be known as
New Generation tech-savvy banks, and included Global Trust Bank (the first of such
new generation banks to be set up), which later amalgamated with the Oriental Bank of
Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This move,
along with the rapid growth in the economy of India, revitalized the banking sector in
India, which has witnessed strong contribution from all the three sectors of Banks,
namely- Government Banks, Private Banks and Foreign Banks.
The next stage of Indian Banking is now being set up with the proposed relaxation in the
norms of Foreign Direct Investment. The Current FDI limit for Public Sector banks
(including SBI) is 20% and for private Banks, the limit is 74% with some restrictions.

Punjab State Cooperative Bank- Deposit & Credit Schemes

TYPES OF BANKS
The banking industry can be divided into following sectors, based on the clientele
served and products and services offered:
1. Retail Banks
2. Commercial banks
Public Banks
Private Banks
3.
4.
5.
6.

Cooperative banks
Investment Banks
Specialized banks
Central banks
Retail Banks:
Retail banks provide basic banking services to individual consumers. Examples include
savings banks, savings and loan associations, and recurring and fixed deposits.
Products and services include safe deposit boxes, checking and savings accounting,
certificates of deposit (CDs), mortgages, personal, consumer and car loans.
Commercial Banks:
Banking means accepting deposits of money from the public for the purpose of lending
or investment. Commercial Banks provide financial services to businesses, including
credit and debit cards, bank accounts, deposits and loans, and secured and unsecured
loans. Due to deregulation, commercial banks are also competing more with investment
banks in money market operations, bond underwriting, and financial advisory work.
Commercial banks in modern capitalist societies act as financial intermediaries, raising
funds from depositors and lending the same funds to borrowers. The depositors claims
against the bank, their deposits, are liquid, meaning banks are expected to redeem
deposits on demand, instantly.
Banks claims against their borrowers are much less liquid, giving borrowers a much
longer span of time to repay money owed banks. Because a bank cannot immediately

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Punjab State Cooperative Bank- Deposit & Credit Schemes

reclaim money lent to borrowers, it may face bankruptcy if all its depositors show up on
a given day to withdraw all their money.
THERE ARE TWO TYPES OF COMMERCIAL BANKS, PUBLIC SECTOR AND
PRIVATE SECTOR BANKS.
Public Sector Banks:
Public sectors banks are those in which the government has a major stake and they
usually need to emphasize on social objectives than on profitability.
Private sector banks:
Private sector banks are owned, managed and controlled by private promoters and they
are free to operate as per market forces.
Investment Banks:
An investment bank is a financial institution that assists individuals, corporations and
governments in raising capital by underwriting and/or acting as the client's agent in the
issuance of securities. An investment bank may also assist companies involved in
mergers and acquisitions, and provide ancillary services such as market making, trading
of derivatives, fixed income instruments, foreign exchange, commodities, and equity
securities.
Investment banks aid companies in acquiring funds and they provide advice for a wide
range of transactions. These banks also offer financial consulting services to companies
and give advice on mergers and acquisitions and management of public assets.
Cooperative Banks:
Cooperative Banks are governed by the provisions of State Cooperative Societies Act
and meant essentially for providing cheap credit to their members. It is an important
source of rural credit i.e., agricultural financing in India.
Specialized Banks:

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Punjab State Cooperative Bank- Deposit & Credit Schemes

Specialized banks are foreign exchange banks, industrial banks, development banks,
export-import banks catering to specific needs of these unique activities. These banks
provide financial aid to industries, heavy turnkey projects and foreign trade.
Central Banks:
Central banks are bankers banks, and these banks trace their history from the Bank of
England. They guarantee stable monetary and financial policy from country to country
and play an important role in the economy of the country. Typical functions include
implementing monetary policy, managing foreign exchange and gold reserves, making
decisions regarding official interest rates, acting as banker to the government and other
banks, and regulating and supervising the banking industry.
These banks buy government debt, have a monopoly on the issuance of paper money,
and often act as a lender of last resort to commercial banks

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Punjab State Cooperative Bank- Deposit & Credit Schemes

COMPANY BACKGROUND
(PUNJAB COOPERATION AT A GLANCE)
ORIGIN OF COOPERATIVE BANKS IN INDIA
Cooperative movement is quite well established in India. The first legislation on
cooperation was passed in 1904. In 1914 the Maclagen committee envisaged a three
tier structure for cooperative banking viz. Primary Agricultural Credit Societies (PACs) at
the grass root level, Central Cooperative Banks (CCBs) at the district level and State
Cooperative Banks at state level or Apex level. The first urban cooperative bank in India
was formed nearly 100 years back in Baroda.
In the beginning of 20th century, availability of credit in India, more particularly in rural
areas, was almost absent. Agricultural and related activities were starved of organized,
institutional credit. The rural folk had to depend entirely on the money lenders, who lent
often at high rate of interest.
The cooperative banks arrived in India in the beginning of 20 th Century as an official
effort to create a new type of institution based on the principles of cooperative
organization and management, suitable for problems peculiar to Indian conditions.
These banks were conceived as substitutes for money lenders, to provide timely and
adequate short term and long term institutional credit at reasonable rates of interest. In
the formative stage Cooperative Banks were Urban Cooperative Societies run on
community basis and their lending activities were restricted to meeting the credit
requirements of their members. The concept of Urban Co-operative Bank was first spelt
out by Mehta Bhansali Committee in 1939 which defined on Urban Co-operative Bank.
Provisions of Section 5(CCV) of Banking Regulation Act, 1949 (as applicable to Cooperative Societies) defined an Urban Co-operative Bank and was made applicable in
1966.

IMPORTANCE OF COOPERATIVE BANKS IN INDIA


Cooperatives have played a vital role in improving the economic conditions of farmers
and accelerating the pace of development in Punjab.
Development through Cooperatives was a dream cherished by freedom fighters of India
ever since Independence. Cooperative principles ensure harmonious development,
through democratic management and governance.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

Cooperatives have brought both the services and resources at the doorsteps of villagers
in Punjab. These have been enthusiastically serving the people of Punjab in area such
as agriculture, housing, spinning, sugar production, weaving and dairy etc.
The performance of Cooperative Movement in Punjab is very impressive. Cooperatives
constitute the major source of institutional credit for agriculture.
Cooperatives are playing a pivotal role in socio-economic development of the State.
These are key instruments of the State to develop and sustain its rural economy, which
is primarily agrarian. The Department of Cooperation has accelerated Cooperative
movement in Punjab during the last three years

MISSION
Punjab Cooperatives resolve for Greater self-reliance, Administrative efficiency and
structural reforms.

TEN COMMANDENTS OF PUNJAB GOVERNMENT (DEPARTMENT OF


COOPERATION)
Support and sustain agriculture as a multi-functional occupation in the states.
Provide desired impetus and diversification of agriculture in the state.
Liberalize and adjust structures to deliver commodities and services to the
farmers at the competitive price.
Assume quality leadership for branded products with high mark-ups in the
agriculture, sugar, food, milk and handloom sectors.
Promote vertical integration for creating strong bonds with farmers and improve
product quality.
Modernize and professionalize organization and management.
Be action driven and become virtual
Reduce operational costs and increase efficiency
Increase membership and business with greater people's participation
Ensure honesty, transparency and check corruption

VALUES
A Cooperative is a system voluntarily to meet their common economic, social and
cultural needs and aspirations through a jointly-owned and democratically controlled
enterprise.

PRINCIPLE FEATURES OF CO-OPERATIVE BANKS

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Punjab State Cooperative Bank- Deposit & Credit Schemes

Voluntary and Open Membership


Democratic Member Control
Members Economic Participation
Autonomy and Independence
Education Training and Information
Cooperation among Cooperatives
Concern for Community
Cooperative banks are partially financial intermediaries. The sources of their
funds are:
i.
Central and State Government;
ii.
The Reserve Bank Of India, NABARD;
iii.
Other cooperative institutions;
iv.
Ownership funds and
v.
Deposits or debenture issues
Cooperative banks belong to the money market as well as to the capital market.
Cooperative banks are subject to CRR and liquidity requirements as other
scheduled and non-scheduled banks are. However, their requirements are less
than commercial banks.

STRUCTURE OF COOPERATIVE BANKING


RBI
NABARD

SCBs

SLDBs

CCBs

CLDBs

PACS

15

PLDBs

UCBs

BRANCHES OF
SLDBS

Punjab State Cooperative Bank- Deposit & Credit Schemes

ABBREVIATIONS USED IN CHART:


SCBs: State Cooperative Banks
SLDBs: State Land Development Banks
UCBs: Urban Cooperative Banks
CCBs: Central Cooperative Banks
CLDBs: Central Land Development Banks
PACS: Primary Agricultural Credit Societies
PLDBs: Primary Land Development Banks

TYPES OF COOPERATIVE BANKS


1) STATE COOPERATIVE BANKS(SCBs)
State cooperative banks are a federation of central cooperative banks and
act as a watchdog of the cooperative banking structure in the state. Its funds are
obtained from share capital, deposits, loans and overdrafts from Reserve Bank of India.
State cooperative banks lend money to central cooperative banks and primary societies
and not directly to farmers.
2) CENTRAL COOPERATIVE BANKS(CCBs)
Central cooperative banks are the federations of primary credit societies in
a district and are of two types those having a membership of primary societies only
and those having a membership of societies as well as individuals. The funds of the
bank consist of share capital, deposits, loans and overdrafts from state cooperative
banks and joint stocks. These banks finance member societies within the limits of the
borrowing capacity of societies.
3) PRIMARY AGRICULTURAL CREDIT SOCIETIES(PACS)
Cooperatives have played a major role in the supply of finance to agriculture sector for
the development of land, irrigation system and for its mechanization. The agricultural
cooperative credit in Punjab is divided into two sectors mainly, one dealing with short
and medium- term credit and the other with the long- term credit. The long term credit is
awarded from the Punjab State Cooperative Land Mortgage Bank at the apex and the
Primary Cooperative Land Mortgage Banks at district/tehsil level.
4) PRIMARY COOPERATIVE BANKS(PCBS)
They are non- agricultural societies. These are of two types Urban Cooperative Banks
and Salary Earners Societies. Development of PCBs is looked after by the RBI. The
RBI and IDBI offer them concessional refinance facility on a selected basis. They
operate in urban and semi urban areas. They provide housing finance and loans and
advances for various purposes such as petty trade and industry

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Punjab State Cooperative Bank- Deposit & Credit Schemes

POLICY AND PLANNING


Structural and Administrative Reforms
1. Punjab Cooperative Societies Act, 1961. (Proposed amendment bill 2007).
2. Downsizing and dispersal of bureaucracy to improve efficiency and delivery.
3. Formulation and Introduction of Code for Accounting and Administrative procedures
in all Apex Cooperative Federations.
4. Computerization of Operations and Records.
5. Human Resource Development through Intensive Training and Up-gradation of
knowledge and skills.
6. Intensive Application of Information Technology.
7. Promotion and Development of Insurance Cooperatives.
8. Creation of a fund at Apex and Central Level for development of Primary
Cooperatives.
Promotion of New Generation Self-Reliant Cooperatives
1. Development of Women Cooperatives and self-help groups.
2. Urban Cooperative Banks.
3. Multi-purpose Cooperative Societies in rural and urban areas.
4. Greater thrust on Milk Producers' Cooperative Societies.
Dis-investment from Sick and Weak Cooperatives.
1. Dis-investment from Cooperative Spinning and Sugar Mills merits greater attention
and thrust.
2. Amalgamation and restructuring of Primary Cooperatives whose imbalances are
more than 50%
Liberalisation of Cooperative Marketing.
1. Direct sale and purchase of agro-chemicals by PACS.
2. Direct sale and purchase of fertilizers by PACS.
3. Greater autonomy to Rural Consumer Cooperatives for supply and distribution of
essential commodities in the villages.
Strengthening, Modernization and Diversification of Cooperative Credit
System

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Punjab State Cooperative Bank- Deposit & Credit Schemes

1. Development of Infrastructure including building infrastructure


2. Human Resource Development
3. Greater thrust on Non-Farm Financing, particularly for rural un-employed youth.
4. Greater thrust on Direct Finance to the farmers: Gradual Abolition of B-Component
of short- term agricultural loans.
5. Greater thrust on Insurance Linked loaning to the farmers.
6. Reduction in Administrative and Management Costs of Funds to provide cheaper
credit to farmers.
7. Introduction of ATMcum-Debit Card
8. Introduction of personal banking on the pattern of private and commercial banks.
9. Efforts towards Merchant Banking & De-mating of Shares.
10. Efforts to increase the non-fund business.
11. Introduction of Housing Finance Schemes in selective banks.
Convergence of Services
Development of "Sehkarta Bhawans" at District Level to accommodate all Offices of
the Department and Cooperatives to ensure easy access to facilities for the members
of Cooperatives and general public.
Training Policy
The Cooperatives of Punjab have paid special consideration on the Training of the staff,
for which they have formed a special Training Policy.

Training Institutions
Regional Institute of Cooperative
Management, Sector-32 Chandigarh.
Punjab Institute of Coop. Training, Ltd;
Chandigarh.
Junior Level Training Cell (JLTC),
Chandigarh.
Agriculture Cooperative Staff Training
Institute, Jalandhar
Milkfed Training Centre, Jallandhar

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Punjab State Cooperative Bank- Deposit & Credit Schemes

MAJOR APEX COOPERATIVE FEDARATIONS


COOPERATIVE FINANCING INSTITUTIONS
PSCB Punjab State Cooperative Bank Ltd
PSCADB Punjab State Cooperative Agricultural Development Bank
Punjab Urban Co-operative Banks

COOPERATIVE MARKETING & PROCESSING INSTITUTIONS


Milkfed
Markfed
Weavco
Sugarfed

COOPERATIVE HOUSING DEVELOPMENT SCHEMES


Housefed

OTHER MAJOR COOPERATIVE INSTITUTIONS


Puncofed
Labourfed
Fruitfed
PICT

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Punjab State Cooperative Bank- Deposit & Credit Schemes

PUNJAB STATE COOPERATIVE BANK ORIGIN


The Punjab State Cooperative Bank was established on 31st August, 1949 at Shimla
vide registration No. 720 and it is the principle financing institution of the cooperative
movement in Punjab. In 1951 its Head Office was shifted to Jalandhar from where it
moved in 1963 to its present building at Chandigarh.
In the cooperative Banking structure, the position of the Punjab State Cooperative Bank
is extremely important as the whole credit system revolves around it. It has 19 branches
and 3 extension counter in Chandigarh. There are 20 District Central Cooperative
Banks having 808 branches/extension counters all over Punjab, mostly in rural areas of
the State.

MISSION
Promotion and sustenance of economic interest & providing easy finance, cost effective
and quality banking services to customer & PACs

OBJECTIVES
To serve as a balancing Centre for Cooperative societies in the State for
Cooperatives Societies in the state of Punjab registered under Cooperative
Societies Act, 1961for the time being in force.
To promote the economic interest of the member banks and cooperative
Societies in accordance with the cooperative principles and to facilitate the
development and funding of any Cooperative society registered under the said
Act.
To carry on banking and credit business

VISION
Enforce the future challenges with grit and take every possible step for the
development of our institution.
More steps will be taken to provide efficient services.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

Present customers will be retained and other customers will be attracted to


increase market share.
Bank will attract maximum deposit (especially low cost deposit) to strengthen its
financial resources so as to reduce its dependency upon NABARD.
Bank while diversifying its loan portfolio, will provide medium term and long term
loans to the maximum extent.
Every effort will be made to open account of all farmers of the State. Bank will
receive deposit from farmers and meet their credit needs.
Bank, for the sake of development of state, will strive hard to provide maximum
and better services to customers especially farmers and for this wherever
necessary, every effort will be made to modify the schemes.
Bank will prepare its business plan every year and by implementing it , goals set
will be achieved
Bank will professionalize and modernize the business.

PUNJAB STATE COOPERATIVE BANK BRANCHES


SR.NO
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.

21

NAME OF BRANCH
Main branch-34, S.C.O. 175-187,Sector-34,CHD
Branch Office-8, S.C.O. 130-31, Sector-8C,CHD
Branch Office-10, S.C.O.19, Sector-10,C.H.D
Branch Office-17, S.C.O.17, Sector-17,C.H.D
Branch Office-20, S.C.O.34, Sector-20 C, C.H.D
Branch Office-22, S.C.O.2453,Sector-22C,C.H.D
Branch Office-27, S.C.F.3, Sector-27 D,C.H.D
Branch Office-30, S.C.O.9, Sector-30 D,C.H.D
Branch Office-32, S.C.O.378, Sector-32,C.H.D
Branch Office-35, S.C.O.451-452, Sector- 35 C,
C.H.D
Branch Office-36, S.C.O.211, Sector-36 D,C.H.D
Branch Office-37, S.C.O.392, Sector-37 C,C.H.D
Branch Office-38, S.C.O.84, Sector-38 C,C.H.D
Branch Office-40, S.C.O.232, Sector-40 D,C.H.D
Branch Office-44, S.C.O.362, Sector-44 D,C.H.D
Branch Office-47, S.C.O.60, Sector-47-D,C.H.D
Branch Office Manimajra, Motor Market, MM,
C.H.D

DATE OF OPENING
10.02.2000
01.10.1977
05.01.1994
31.08.1949
04.04.1994
15.01.1971
24.01.1976
02.03.1990
05.10.1982
06.07.1982
13.12.1993
04.05.1979
04.04.1994
11.09.1989
29.04.1992
28.12.1985
24.10.1994

Punjab State Cooperative Bank- Deposit & Credit Schemes

18.
19.
20.

Branch Office- Ramdarbar, IND. Area II,C.H.D


Branch Office-Sectt. , Punjab Civil
Secretariat,C.H.D
Extension Counter- Mini Sectt. 9 Mini Sectt.,
Sector-9 , C.H.D

04.04.1994
23.05.1972
23.05.1972

PUNJAB STATE CO-OPERATIVE BANK ORGANISATION


STRUCTURE

22

Punjab State Cooperative Bank- Deposit & Credit Schemes

PROFITS AND LOSSES OF PSCB BRANCHES FOR THREE


CONSECUTIVE YEARS FROM 2010 TO 2012(FIGURES IN LAKHS)
250

200

PSCB-8
PSCB-10
PSCB-17
PSCB-20

150

PSCB-22
PSCB-27
PSCB-30
PSCB-32

100

PSCB-34
PSCB-35
PSCB-36
PSCB-37

50

PSCB-38
PSCB-40
PSCB-44
PSCB-47

0
2009-10

2009-11

2009-12

PSCB-MM
PSCB-MS
PSCB-RD

-50

-100

23

PSCB-SECTT

Punjab State Cooperative Bank- Deposit & Credit Schemes

PRODUCTS OFFERED BY BANK


1. Saving Bank A/c
A saving bank A/c can be opened with an initial deposit of Rs.500/- without
Cheque Book facility and Rs.1000/- with cheque book facility.
Eligible categories to open SB A/c

Any individual
Joint Account with others in the form of either or survivor, Former or Survivor
Minors
Illiterate persons
Blind person
Joint Hindu Family
Cooperative Societies, Clubs, Associations etc.
Only 30 withdrawals are allowed per half year for a savings bank account
exceeding which service charges will be levied.
Maximum limit of withdrawal form is Rs. 20,000/-

2. Saving Bank- No frill A/c


This account can be opened by an individual without furnishing any resident
proof or any proper introduction.
Minimum amount with which account can be opened is Rs.10/- and the balance
here should not exceed Rs. 50000/- , otherwise, it will become SB A/c.
No cheque book is allowed to be issued to customers
3. Term Deposit A/c
The deposit is received by the bank for a specific period which is withdraw able
after expiry of said period.
Eligible categories to open SB A/c

Any individual
Joint Account with others in the form of either or survivor, Former or Survivor
Minors
Illiterate persons
Blind person
Joint Hindu Family
Cooperative Societies, Clubs, Associations etc.
Minimum amount to be kept is Rs.1000/-

24

Punjab State Cooperative Bank- Deposit & Credit Schemes

The terms and conditions regarding rate of interest and time period are
determined by bank from time to time.
4. Recurring Deposit A/c
It can be opened with certain initial deposit wherein a Depositor needs to deposit
money by way of monthly installments over a stipulated period.
The period may be 2, 24, 36, 48, 60 months etc.
On the expiry of the period, the accumulated amount along with interest is paid in
lumpsum.
All the parties are eligible for this account
The rate of interest applicable on recurring deposit will be the rate of interest
applicable on term deposit for that period
Minimum monthly installment for this account is Rs.100/-.
Maximum period is 10 years
5. Current A/c
Initial deposit of Rs.5000/-.
Eligible parties

Sole Proprietorship
Partnership firm
Club/Association
Religious institution
Government/Semi-Govt
Local bodies

6. Locker A/c
Facility of locker is available in four different sizes viz. small, medium, large and
extra large.
A prospective buyer who wants the locker facility has to have a Saving Bank
account with the bank so that annual Locker Rent can be Debited from that
Account
Lockers can be hired in individual capacity or jointly with others.

25

Punjab State Cooperative Bank- Deposit & Credit Schemes

TARGET FOR TERM DEPOSITS FOR THR FINANCIAL YEAR APRIL 2013-MARCH
2014

100%
90%
80%
70%

30.03.2014

60%

30.12.2013

50%

30.09.2013

40%

30.06.2013

30%
20%
10%
0%
PSCB

PSCB-MM

INTEREST RATES ON DEPOSIT WITH EFFECT FROM 20.12.2012


SR.NO SCHEMES
1.
2.
3.
4.
5.
6.
7.

26

Saving Bank
A/c
Saving BankNO frill A/c
Term Deposit
A/c
Term Deposit
A/c
Term Deposit
A/c
Term Deposit
A/c
Term Deposit
A/c

Period
from

Period up
to

Rate of
Rate of
interest(Public) interest(Sr.citizen)

4.00%

4.00%

4%

4%

7days

14 days
30 days

4%

4.50%

5.00%

5.50%

15days
31 days

45 days

6.50%

7.00%

46days

90 days

6.75%

7.25%

91 days

179 days

7.00%

7.50%

Punjab State Cooperative Bank- Deposit & Credit Schemes

8.
9.
10.
11.
12.
13.
14.

Term Deposit
A/c
Term Deposit
A/c
Recurring
Deposit A/c
Current A/c
Locker A/c
Term Deposit
A/c
Term Deposit
A/c

180

<1 year

7.75%

8.25%

1year

<2years

8.75%

9.25%

4.00%
0
0

4.00%
0
0

2 years

3 years

8.50%

9.00%

3 years

And above

8.50%

9.00%

DIFFERENT TYPES OF LOAN SCHEMES


1. PERSONAL LOAN SCHEME
Beneficiary
Purpose
Loan Amount
Rate of Interest
Margin
Repayment Period
Collateral Security
Installment

Employees of Punjab Govt, PSU, boards, Corporations etc.


Credit facility for meeting out socio-economic needs
12 times of gross monthly salary
14%
No Margin required
Maximum 5 years
2 good sureties as per satisfaction of the bank
Rs. 2276 for 5 years

2. CONSUMER DURABLE LOAN


Beneficiary
Purpose
Loan Amount
Rate of Interest
Margin
Repayment Period
Collateral Security
Installment

Employees of Punjab Govt, PSU, boards, Corporations etc.


Credit facility for meeting out Socio Economic needs.
12 times of gross monthly salary
14%
No margin required
Maximum 5 years
2 good sureties as per satisfaction of the Bank
Rs. 2276.00 for 5 years

3. VEHICLE LOAN SCHEME


Beneficiary
Purpose

27

Individual, Firm, HUF, Trust, Coop. Societies or a Company


For the purchase of new vehicle for business and personal use

Punjab State Cooperative Bank- Deposit & Credit Schemes

Loan Amount
Rate of Interest
Margin
Repayment Period
Collateral Security
Installment

Maximum amount up-to Rs. 10.00 Lac or 80% of cost of vehicle


11.5%
20%
Maximum 5 years
2 good sureties as per the satisfaction of the bank besides the
hypothecation of the vehicle
Rs. 2174.00 for 5 years

4. URBAN HOUSING SCHEME


Beneficiary
Purpose

Loan Amount
Rate of Interest
Margin
Repayment Period
Collateral Security
Installment

Individual and Members of Coop. Housing Societies


Purchase of built up house or flat, construction of new house,
repairs/ renovation and addition of existing house in urban
areas.
Maximum amount up-to Rs.20.00 Lac.
10%
25%
Maximum15 years
First mortagage of house Property to be financed by the bank
Rs. 1074.00 for 5 years

5. CASH CREDIT FACILITY TO TRADERS


Beneficiary
Purpose
Loan Amount
Rate of Interest
Margin
Repayment Period
Collateral Security
Installment

Individual, Sole Prop, Firm, Coop. Societies or a Company


For meeting working capital requirement of businss
Maximum amount up-to Rs.25.00 Lac
13%
25%
Renewable on annual basis
Immovable properties for the value of 150% of the amount

6. TWO WHEELER LOAN TO FARMERS

Beneficiary
Purpose
Loan Amount
Rate of Interest
Margin

28

An agriculturist having land in his own name or his family


member
For the purpose of new two wheelers
Maximum amount up-to Rs.0.50 Lac
11.5%
15%

Punjab State Cooperative Bank- Deposit & Credit Schemes

Repayment Period
Collateral Security
Installment

Maximum 5 years
2 good sureties as per the satisfaction of bank
Rs.1087.00 for 5 years

7. RURAL HOUSING SCHEME


Beneficiary
Purpose

Individual and member of Coop. Housing societies


Purchase of built up house, construction of new house, Repairs/
renovation and addition of existing houe in rural areas

Loan Amount
Rate of Interest
Margin
Repayment Period
Collateral Security
Installment

Maximum amount up to Rs. 15.00 lac


10%
15%
Maximum 15 years
Agricultural land for the value of 100% of the loan amount
besides the mortgage of house to be financed by bank
Rs. 1074.00 for 15 years

8. COOPERATIVE EDUCATIONLOAN SCHEME CHILDREN OF


POOR FARMERS, DALITS, BC ETC
Beneficiary
Purpose
Loan Amount
Rate of Interest
Margin
Repayment Period
Collateral Security
Installment

Children of poor farmers, Dalits, BC and other poor sections


To provide financial assistance to deserving and meritorious
students for pursuing higher studies in India or abroad
Maximum amount up to Rs. 10.00 lac
7.25%
No margin required
The installment will start after completion of course
Maximum 5 years
Mortgage of landed property value of 100% of the loan amount
Rs. 1992.00 for 5 years

9. LOAN AGAINST PROPERTY


Beneficiary
Purpose

Loan Amount
Rate of Interest
Margin
Repayment Period

29

Any individual
To offer instant solutions relating to ocio-economic needs and
business Needs such as childrens higher education, Travel,
daughters marriage Medical emergencies etc
Maximum amount up to Rs.25.00 Lac
14%
No margin required
Maximum 6 years

Punjab State Cooperative Bank- Deposit & Credit Schemes

Collateral Security
Installment

Rs. 2061.00 for 6 years

10. LOAN SCHEMES FOR EARNEST MONEY


Beneficiary
Purpose

Loan Amount
Rate of Interest
Margin
Repayment Period
Collateral Security

Any individual
To meet financial requirement towards earnest money deposit
to book residential plot/built house of flat by Govt. Approved
Agency
As per Scheme of the Agency
As fixed by the bank
No margin required
On receipt of refund from housing board
No immovable Security is required. Only two post dated Cheque
Required

Installment

11. EDUCATION LOAN


Beneficiary
Purpose
Loan Amount
Rate of Interest
Margin
Repayment Period
Collateral Security
Installment

30

Salaried employees of Coop. banks, Punjab Govt/ Chandigarh


Administration and its boards and Corporation
To provide financial assistance to deserving and meritorious
students for pursuing higher studies in India or abroad
Maximum up to Rs. 10.00 Lac
9%
No margin required
The installment will start after completion of course.
Maximum 5 years
Mortgage of landed property value of 150% of the loan amount.
Rs.2002.00 for 5 years

Punjab State Cooperative Bank- Deposit & Credit Schemes

TARGET FOR LOANS FOR THE FINANCIAL YEAR APRIL 2013-MARCH 2014
(Figure in Lakhs)

5000
4500
4000
3500
3000
PSCB- MM

2500

PSCB-TOTAL

2000
1500
1000
500
0
CONSUMER
LOAN

PERSONAL
LOAN

HOUSING
LOAN

VEHICLE
LOAN

EDUCATION
LOAN

INTEREST RATES ON LOANS WITH EFFECT FROM 01.07.2011


SR NO.

SCHEMES

RATE OF
INTEREST

1.
2.
3.

Personal Loan Scheme


Consumer Durable Loan
Vehicle Loan Scheme

4.
5.

Urban Housing Scheme


Cash credit Facility to
Traders
Two Wheeler Loans to Farmers
Rural Housing Scheme to Farmers
Cooperative Education Loan

15.00%
15.00%
13.00% up to
Rs.3.00 lac and
13.50
% above that
10.50%
13.00%

6.
7.
8.

31

11.50%
10.00%
7.25%

RATE OF
INTEREST
(Sr.citizen)
15.00%
15.00%
11.00%

10.50%
13.00%
11.50%
10.00%
7.25%

Punjab State Cooperative Bank- Deposit & Credit Schemes

9.
10.
11.

Loan against Property


Loan Scheme for earnest money
Education Loan

14.00%

14.00%

9.00%

9.00%

FINACLE SOFTWARE
Finacle core banking solutions is a comprehensive, integrated, yet modular and agile
business solution, addressing all the core needs of banks, in easy-to-configure
modules. Finacle provides all building blocks of business functionality, enabling users to
configure products and processes flexibly in order to adapt to a dynamic environment.
With a 360 degree single source view into customer accounts, banks can empower
customers with relevant information and delight them with the right offerings, presented
at the right time through the right channel.
Finacle is centralized, multi-currency, multi lingual, functionally rich solution that
addresses the retail and corporate banking requirements.
TYPES OF USER GROUPS IN FINACLE
GENERAL USER This user group performs the regular banking and front office
functions. Example Opening of accounts, creation and verification of financial
items.
SYSTEM OPERATORS This group is in charge of executing system related
functions such as data backup and data restore.
DATA BASE ADMINISTRATOR These are responsible for up keeping and
maintaining database. They prepare various reports for the use of general users.
INSPECTION AUDIT This group performs routine audit in banks
These user groups have been divided on the basis of kind of banking operations they
perform. In order to use the software the user groups are required to login through their
unique Ids and passwords.

32

Punjab State Cooperative Bank- Deposit & Credit Schemes

FINACLE USES

33

Punjab State Cooperative Bank- Deposit & Credit Schemes

PSCB SANGRUR
Pscb- Sangrur was formed in 1952 and is located in centre of the city and is easily
accessible to all the business and Service class working in the Sangrur township.

PSCB-SANGRUR (ORGANISATION STRUCTURE)


1 Branch Manager, 1 Assistant Manager, 1 Head Cashier, 3 Sub-ordinate
staff, 1 Clerk, 1 Security Guard
SERVICE COUNTERS AT PSCB- SANGRUR
Savings and Current Accounts Counter
Fixed Deposits
Loans Counter
Cash Deposit and Withdrawal
Clearing of Cheques
Issue of Cheque Books

PSCB-SANGRUR, TOTAL NUMBER OF ACCOUNTS


7000
6000
5000
4000
DEPOSITS
3000

LOANS

2000
1000
0
2010

34

2011

2012

Punjab State Cooperative Bank- Deposit & Credit Schemes

PSCB-SANGRUR, AVEREAGE CASH IN HAND (FIGURES IN LAKHS)

AVERAGE CASH IN HAND


8
7
6
5
4

AVERAGE CASH IN HAND

3
2
1
0
31/03/2010

35

31/03/2011

31/03/2012

Punjab State Cooperative Bank- Deposit & Credit Schemes

PSCB-SANGRUR, AVEREAGE DEPOSITS (FIGURES IN LAKHS)

700
600
500
Savings Deposit

400

Term Deposit
300

Current Deposit

200
100
0
2010

2011

2012

PSCB-SANGRUR, AVERAGE LOANS AND ADVANCES

AVERAGE LOANS AND ADVANCES


600
500
400
300

AVERAGE LOANS AND


ADVANCES

200
100
0
2010

36

2011

2012

Punjab State Cooperative Bank- Deposit & Credit Schemes

PROJECT DETAILS
In todays competitive environment where corporates are constantly searching for ways
to keep a float and sustain the market share, they have to find newer and better ways to
satisfy customer needs. To run any organization successfully the management needs to
think always for the betterment of their service and product.
Banking business is now expanding three folds and is facing tough competition. The
Private sector along with the public sector is performing high on scale and ruling the
markets. Adding to the glory, there are foreign banks that have also captured a
commendable market share.
Considering this, the State Cooperative Banks need to take such steps which assist
them in marching ahead in the race and survival of the fittest. This has always been the
motto of Cooperative Banks and in order to achieve this, we are hereby analyzing the
level of satisfaction of PSCB customers and their expectations.

RATIONALE OF STUDY
The Object here is to enhance my knowledge in Banking Industry. The proposed project
is a window giving me a view into gigantic and comprehensive Banking Industry. The
PSCB Schemes are chosen as the Project Topic because the Banks Cooperative credit
and deposits business is expanding day by day, and it contributes maximum in the
Rural Banking Industry. Apart from its pertinence and performance, the cooperative
banking measures to solutions and roads to its advancement will be discussed in this
project.

OBJECTIVES OF STUDY
Market trends in the field of Deposits and Credit Financing.
Market Potential of Punjab State Co-operative Banks.
To Study some of the Schemes of Punjab State Co-operative Bank in detail and idea of
types of Schemes available.
To conduct a Comparative Study of PSCB Schemes and other Banks.
To find out main obstacles while availing different schemes under PSCB.

37

Punjab State Cooperative Bank- Deposit & Credit Schemes

Brief idea about the benefits available to Punjab State Co-operative Societies
Employees and customers.
Recent Development in Market and Punjab State Co-operative Bank in the field of
deposits and credit

NEED OF THE STUDY


To study the different facilities offered by the Punjab state cooperative bank.
It provides empirical data for policy makers that are assisted towards formulating
appropriate policy environment for the operations of Punjab State Cooperative Bank.
The study is also of significance to future researchers as literature review, and further
provoked research in the area of lending and portfolio management.

RESEARCH METHODOLOGY
RESEARCH PROBLEM
Measuring the level of satisfaction prevailing among customers and their expectations in
context with PSCBs schemes.
RESEARCH DESIGN
Research deign is exploratory and descriptive which helps me to explore the factors
influencing the perception of customers.
SAMPLING DESIGN
SAMPLE SIZE The sample size is 20 that include local customers that
regularly visit the bank.
SAMPLING TECHNIQUE Simple Random Sampling has been followed.

DATA COLLECTION

38

Punjab State Cooperative Bank- Deposit & Credit Schemes

Both primary and secondary data have been collected for meeting the objectives of
current study.
For the purpose of collection of primary data, personal interview of the respondents
was conducted. An unbiased, undisguised structured questionnaire was prepared which
was administered to respondants for the purpose of getting the information. The
questionnaire consist questions covering both deposits and loan schemes.
For the purpose of secondary data, secondary sources of information like magazines,
newspapers, journals, studies conducted in past, have been referred. The main sources
of secondary data in the study are:
1. Banks Detail Books
2. Banks website
RESEARCH INSTRUMENT
Questionnaires permit us to gather information that cannot be found elsewhere in any
secondary sources like books, newspapers and internet resources. Hence,
questionnaire survey was the best method to collect data for this study.
ANALYSIS TECHNIQUE
The questionnaire is having alternative choices. Analysis has been done with help of
charts, bar graphs, pie charts, likert scaling and co-relation.

SCOPE OF STUDY
The scope of study is limited to customers visiting Punjab State Cooperative Bank,
Sangrur. Present study has been restricted to time period from June 2013 to July
2013.

39

Punjab State Cooperative Bank- Deposit & Credit Schemes

LITERATURE REVIEW
The Cooperative Sector has been playing a significant role in the area of disbursing
agricultural credit, providing market support to farmers, distribution of agricultural inputs
and imparting cooperative education and training etc. The basic objective of the
Cooperation Division is to design long term and short term strategies for reducing
economic disparities between the downtrodden rural people and the rural rich as well as
regional imbalances including rural and urban differences.
It much is admitted that though co-operative movement in India has not indeed
succeeded in curing all the economic and social evils, yet it has no doubt, led to some
beneficial results.

BENEFICIAL RESULTS:
1) Spread of banking Habit:
With the progress of co-operation the banking habit is slowly but steadily developing in
rural and urban areas.
2) Social benefit:
Co operation constitutes an admirable means of popular social improvement. It tends to
check the petty quarrels and bitterness of village life and binds together men into
friendly relationship.
3) Growth of self Reliance:
Co operative societies have created the spirit of self reliance among the village poor.
The individual farmer who is not able to start a new venture alone due to limited farmer
who is not able to start a new venture alone due to limited resources, can have a
chance to do the same through co-operation.
4) Welfare Activities:
Some societies have made liberal contribution towards various charitable and pubic
purposes. It has also provided scholarships and aids for higher studies, research works.
In this way the co-operative societies have promoted welfare activities.
DEFINITION OF LOAN
An arrangement in which a lender gives money or property to a borrower, and
the borrower agrees to return the property or repay the money, usually along with

40

Punjab State Cooperative Bank- Deposit & Credit Schemes

interest, at some future point(s) in time. Usually, there is a predetermined time for
repaying a loan, and generally the lender has to bear the risk that the borrower may not
repay a loan (though modern markets have developed many ways of managing this
risk).
IMPORTANCE OF LOANS IN TODAY'S LIFE
Everyone needs money at every stage of their life. Sometimes it so happens that they
have keen desire to purchase their favorite stuff but they are incapable to purchase due
to shortage of money. Here lies a question that a person who does not have a good
amount of money at particular time has no right to see dreams? Is he not authorized to
fulfill his desires on time? Should he stop dreaming? No, because there is solution for
these queries. Loans are available for these purposes only. Loans are provided to
people for such critical circumstances which may occur at anytime. In anyone's life a
situation may come when all of sudden you require cash. A moment when you do not
want to borrow cash from your relatives. There may occur any kind of emergency when
you need huge amount of money. There are various types of loans like home loans,
personal loans, student loan, business loan etc. You can take any type of loan you
need. For each and every kind of need, loans are available. Home loans are available
for general home purposes like buying a luxurious car, going for a holiday trip,
educational purpose, home improvement etc. Many of your desires can be fulfilled by
this loan. Personal loans are available for personal requirements like
wedding ceremony, purchasing a home etc. Student loan as it itself suggest is that it is
provided basically to students for higher education. Students who want to study more
but cannot afford can get apply for such loans and continue their studies. To start a new
business you require a huge amount of money. A person willing to setup a business
may not have that much cash which can meet out his requirements. For this business
loans are available. You can get business loans to start and well establish a
new business in market. Whatever may be the kind of loan, all have full
fledged facilities. All kind of loans have their own importance. Above all, need of money
explains the importance of loan. Appling for loan is very easy. Apply for that loan
whichever is needed to you. But before applying you should go through different
lender's policies and apply for that lender which is beneficial for you. Different lenders
have different policies. If you get loan for long term with low rate of interest then it is
beneficial for you. Due to competition, lenders are trying their best to attract people by
providing different schemes which in turn is good for people. And cooperative bank is
also one of them.
WHAT IS A PROCEDURE?
A procedure is a specified series of actions or operations which have to be executed in
the same manner in order to always obtain the same result under the same
circumstances (for example, emergency procedures). Less precisely speaking, this
word can indicate a sequence of tasks, steps, decisions, calculations and processes,

41

Punjab State Cooperative Bank- Deposit & Credit Schemes

that when undertaken in the sequence laid down produces the described result, product
or outcome. A procedure usually induces a change.
IMPORTANCE OF PROCEDURE MANUALS
One of the worst case scenarios of office problems involves a very important job that
cannot be completed by the support of staff because of a lack of information on
procedures. Nearly every company prepares job descriptions, but most neglect efficient,
exact and up-to-date procedures manuals. A job description entails. A procedures
manual gives a detailed and informative guide to how the job is done and enables
someone to do the job in an emergency. Henrik Ibsen once said, "A community is like a
ship; everyone ought to be prepared to take the helm." Likewise, an office - people
should be able to pitch in and get the job done. This is possible only if they are
provided with the proper instructions and materials. Every job entails a certain
sequence of paperwork, routine tasks and contacts. For example, someone might be in
charge of travel arrangements. A job description would state that the job entails making
both domestic and foreign travel arrangements and processing invoices for this. A
procedures manual would give the names and phone numbers of various travel
agencies used for the firm, the best people to contact, how to process the invoices by
explaining the forms and what department handles them. If the person in charge of
travel arrangements is out of the office, someone else can open the procedures manual
and follow the directions to do the job. Managers should see that every support staff
employee in his or her department prepares a procedures manual for each job. At the
beginning, the manager should meet with each employee individually and discuss the
preparation of the manual so that its function is fully understood. An outline of what is
expected should be prepared and given to each employee to follow.
1. What - A description of the task.
2. When - How often it is done.
3. Who - What people are involved in completing the task.
4. How To - Sequence of steps to complete the job. Phone numbers, addresses, chain
of command, forms or materials needed (and where they are kept), potential problems
and solutions based on experience. If office machines are involved (computers
or word processors), a description of how they are operated for this particular job
(i.e. if disks are used, where information is stored, how to retrieve the information,
electronic mail, etc.). If a computer sequence is followed to complete forms or reports
for the task, copies of each screen used should be made and placed in the procedures
manual in the proper order. A "dummy" of each page should be filled out so that it can
be easily followed.

42

Punjab State Cooperative Bank- Deposit & Credit Schemes

ELIGIBILITY CRITERIA FOR AVAILING LOANS IN PUNJAB STATE COOPERATIVE


BANK
Class

Age

Salaried Employees of Punjab Govt. PSUs, Boards, Corporations,


Public Sector Banks, Aided Schools/colleges, Universities, General
Insurance Companies, District Central Cooperative Banks, Cooperative
Organizations in the State of Punjab.
Minimum 21 years and maximum 57 years.

Service Tenure

1 Year after the confirmation/ regularization.

Loan Limit

15 Months Gross Salary or Rs.4.00 Lac (Whichever is less).

Rate of Interest

As decided by the Bank from time to time with quarterly rests.

Payment Of
Loan
Security

Loan is repayable in equated monthly installments in the form of postdated cheques. The 1st installment will start after one month.
No collateral security is required, only two guarantors known to the
Bank (of the same institution as of the borrower).
No employees will be given this loan facility who has defaulted in
repayment of loan in any other scheme.

General

DOCUMENTS REQUIRED TO GET A LOAN


PRE-SANCTION
Application Form
Latest Photographs
Bank account statements
Proof of Income
Employer certificate of identity Proof of continuity of current Job.
Proof of Residence
NOMINAL MEMBERSHIP NUMBER
POST SANCTION
Demand Pronote
Agreement (NJ Stamp Paper for Rs.15/-)
Signature verification (By Branch Manager)
Post Dated Cheques
Two guarantors (NJ Stamp Paper for Rs.15 in each case)

43

Punjab State Cooperative Bank- Deposit & Credit Schemes

DEFINATION OF DEPOSITS
In deposit terminology, the term- Bank Deposit refers to an amount of money in cash or
check form or sent via wire transfer that is placed into a bank account. The target
account for the Bank deposit can be any kind of account that accepts deposits.

Bank Deposit Example:


For example, a Bank Deposit is generally made when opening an account or in the
course of routine business or personal transactions that involve placing funds with the
bank for future use. Bank deposits can be made in a number of different ways. The
most direct way is to walk into a bank or a bank branch in which you hold an account.
You are then usually required to fill in a Bank Deposit slip with the particulars of your
account and the amount of money you wish to deposit. In addition, Bank Deposits can
be made via wire transfer, as well as through a direct deposit plan from employers in
many cases.
SCHEMES OFFERED BY PUNJAB STATE COOPERATIVE BANK (MANIMAJRA)
Savings Account
Current Account
Long Term Deposit Account
Fixed Deposit Account
Recurring Deposit Account
No Frill Account
DOCUMENTS REQUIRED FOR OPENING DEPOSIT ACCOUNT IN PSCB
Residence Proof
PAN Card
2 Latest Photographs
One Identity Proof.

44

Punjab State Cooperative Bank- Deposit & Credit Schemes

CHAPTERISATION
CHAPTER 1 INTRODUCTION
A. Introduction to Banking Industry
B. Company Background
C. Project Detail

CHAPTER 2 Research Methodology & Research Design


CHAPTER 3 Data Analysis & Interpretation
CHATER 4 CONCLUSION
A. Limitations
B. Recommendations
C. Recommendations

CHAPTER 5 ANNEXURES
A. Questionnaire
B. Comparison of loan Interest Rates of different Banks
C. Comparison of Deposit Interest Rates

45

Punjab State Cooperative Bank- Deposit & Credit Schemes

ANALYSIS AND INTERPRETATION


DEMOGRAPHIC ANALYSIS BASED ON GENDER, MONTHLY INCOME
AND OCCUPATION
GENDER CLASSIFICATION
10
8
6
4
2
Gender Classification

0
MALE

Gender Classification
FEMALE

FIRMS

ANALYSIS AND INTERPRETATION:


Out of the 20 respondants, 15 are Individuals holding self operated Accounts.
5 accounts are Jointly operated by owners of firm. These are usually customers
of Current Accounts.
Though not included in Sample but it was observed that PSCB schemes are
open to all categories of persons viz.
Individual
Joint Holders
Minors
Illiterate
Blind
Joint Hindu Family
Cooperative Societies, Clubs and Associations.

46

Punjab State Cooperative Bank- Deposit & Credit Schemes

MONTHLY INCOME

5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0

FEMALE
MALE
FIRMS

FIRMS

MALE
FEMALE

ANALYSIS AND INTERPRETATION:


Out of the Female Group, 2 respondants had nil income because one of them is
a housewife and the other is student.
The male respondants are maximum in high income group that is between
Rs.30,000 to 40,000.
Maximum firms fall in high income group.
PSCB deposit schemes are also available to those who have poor or nil income.
The primary purpose of this class people is to save whatever money they can
afford to and earn good amount of interests on that.

47

Punjab State Cooperative Bank- Deposit & Credit Schemes

OCCUPATION

10
9
8
7
6

Business

Employement

4
3
2
1
0

Loans Borrowers

Depositors

ANALYSIS AND INTERPRETATION:


PSCB Loan Schemes are only available to Salaried employees of Punjab
Government, PSUs, Boards Corporations, Universities, Public Sector Banks,
Premier Medical Institutes, Punjab State Cooperative Bank, District Central
Cooperative Banks and other co-operative organizations in state of Punjab.
Hence all the respondants who are also customers of Credit schemes are
salaried employees and are working in the above mentioned institutes only.
On the other hand, there is no such condition in Deposit schemes.
Out of 10 respondants of deposits schemes, 50% are business men and left 50%
are employees with various public and private institutions.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

ANALYSIS OF KNOWLEDGE AND AWARENESS AMONG


CUSTOMERS
TYPES OF ACCOUNTS

8
7
6
5

Personal Loan
Consumer loan

Savings Account
Current Account

3
2
1
0

Loans

Deposits

ANALYSIS AND INTERPRETATION:


In loan Schemes, personal loan and consumer loan are more prevalent in
Manimajra branch.
In Deposits, customers of two schemes have been covered that is Savings
Account and Current Account.
Apart from above mentioned deposit schemes- Recurring Deposits , Savings
No frill and Fixed Deposits accounts are also available with the bank.

49

Punjab State Cooperative Bank- Deposit & Credit Schemes

HOW DO CUSTOMERS COME TO KNOW ABOUT THE SCHEMES AND


SERVICES OF THIS BANK?
NO. OF CUSTOMERS

Personal Visit
Advertisement
Word Of Mouth
Other

ANALYSIS AND INTERPRETATION:


Most of Customers come to know about the bank by visiting them personally.
Cooperative Banks are lacking in the field of marketing and have no as such
established marketing infrastructure.
It does not pay much heed to advertisement.
The employees of bank are very co-operative. They explain the various schemes
to customers and their explanation is conducive to the need of customers.
Word of mouth is also a source of information.

50

Punjab State Cooperative Bank- Deposit & Credit Schemes

WHAT WAS THE PURPOSE BEHIND AVAILMENT OF SCHEMES?

No. Of Customers
12
10
8
6
No. Of Customers

4
2
0

Purchase of Purchase of Education of Marriage of


Property
Consumer
children
children
goods

Savings

ANALYSIS AND INTERPRETATION:


The sole purpose behind investments in Deposits is Savings.
Personal Loans have been taken for personal reasons such as education of
children, their marriage etc.
However the trend shows that there is huge investment in property out of the
loan amount. The PSCB customers consider this investment to be safe and
reliable.
Purchase of consumer goods is a special purpose loan scheme available.
10% of customers from the sample have taken benefit from this scheme.

51

Punjab State Cooperative Bank- Deposit & Credit Schemes

WHAT ARE THE REASONS FOR TRANSACTING WITH PSCB?


6
5
4
3

Loans
Deposits

2
1
0
Faster
Processing

Interest Rates

Brand Image Margin Amount

Others

ANALYSIS AND INTERPRETATION:

Around 50% of customers from both deposits and loan schemes believe that
bank has a very fast processing rate.
Following with the conclusion that Banks customer dealing is quiet effective and
efficient.
30% got attracted with the Interest rates offered by bank.
It was observed that the interest rate of Personal Loan scheme was
comparatively less than some private banks.
The bank as such has no Brand image like other public and private banks in the
market, but the bank is famous among the rural folks and is rightly called as the
SAHKARI BANK.
The bank does offer some margin amount in its schemes which again works in
favor of the bank and customers.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

COR-RELATION ANALYSIS
Correlation analysis attempts to determine the degree and direction of relationship
between the two variables. If two or more variables vary in sympathy so that the
movements in one variable tend to be accompanied by corresponding movement in the
other, then they are said to be correlated.
Framework for the projected study is set as follows:

INDEPENDENT
VARIABLE
(QUALITY
SERVICES)
INDEPENDENT
VARIABLE
(EMPLOYEE
BEHAVIOUR)

INDEPENDENT
VARIABLE (RATE
OF INTEREST)

DEPENDENT
VARIABLE
(CUSTOMER
SATISFACTIO
N)

INDEPENDENT VARIABLES
EMPLOYEE BEHAVIOR: Employees are key stakeholders in the value delivery
and brand/supplier success. It is believed that employee commitment and
advocacy behavior have a direct and profound relationship with the customer
loyalty and corporate sales and profitability.
SERVICE QUALITY: The banks need to understand that the customers will be
loyal only if they receive greater value then competitors. This variable is widely
used to evaluate the performance of employees.
RATE OF INTERESTS: An interest rate is the rate at which interest is paid by
borrowers for the use of money that they borrow from a lender.

53

Punjab State Cooperative Bank- Deposit & Credit Schemes

DEPENDENT VARIABLE
CUSTOMER SATISFACTION: Customer satisfaction, a term frequently used
in marketing, is a measure of how products and services supplied by a company
meet or surpass customer expectation. Customer satisfaction is defined as "the
number of customers, or percentage of total customers, whose reported
experience with a firm, its products, or its services (ratings) exceeds
specified satisfaction goals.

RESEARCH QUESTIONS
Q1. Does service quality effect customer satisfaction in the context of PSCB?
Q2. Does employee behavior affect the satisfaction level?
Q3. Do the interest rates motivate customers to transact with PSCB?
In the questionnaire, the respondants were asked to score the variables out of five.
These scores were taken to be the quantitative values of variables for the purpose of
calculation of correlation coefficient.
ANALYSIS AND INTERPRETATION:
According to the Spearman correlation coefficient the relation between the customer
satisfaction and other three variables is 0.24 which shows moderate degree of positive
correlation.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

EXPECTATIONS OF CUSTOMERS

E-BANKING

No Of Customers

YES
NO
4

12

CANT SAY

ANALYSIS AND INTERPRETATION:


60% of customers believe that the bank needs now to activate internet banking.
20% say they are comfortable in manual transactions
20% are not aware of the concept.
The customers of PSCB are not regular users of e- banking, and it might become
difficult for few non users of technology to cope up with the change if it is
introduced.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

APPRECIATION FOR BEING A GOOD CUSTOMER

No of Customers

YES
NO

ANALYSIS AND INTERPRETATION:


The bank does not provide any special facilities to its regular visitors and loyal
customers.
However, this practice can prove to be fatal in wake of the uprising competition .

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Punjab State Cooperative Bank- Deposit & Credit Schemes

COMPARISON OF PROFITS OF PSCB- MANIMAJRA, HEAD OFFICE


AND SUM TOTAL OF ALL BRANCHES (FIGURES IN LAKHS)

800

700

600

500
MM Branch

400

Head Office
Pscb total

300

200

100

0
2009-10

2010-11

2011-12

-100

ANALYSIS AND INTERPRETATION:


The Sangrur branch is suffering losses from past three years.
This condition has mainly occurred because of lack of updated products in the
branch.
The branch has limited schemes.
The market in which branch is located, is not that much advanced and
established. Therefore, its local customers do not bring huge deposits on daily
basis.
Being a co-operative bank, it is still not providing farm loans, as most of the part
of agricultural farming is delegated to another subsidiary bank of Cooperative
Societies.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

LIMITATIONS
The findings of the study are based on the expressed opinion of the respondents.
Some respondents were hesitant in providing complete information.
Difficulty was faced in getting the responses to various questions because the
customers could not devote enough time.
There was communication problem also as some of the customers belong to
rural class so they could not understand the questionnaire easily.
This study only relates to one organization, so conclusions drawn may not be
finding its utility in all the other banks.
Even the employees of the bank were hesitated to give the complete and
accurate data.

CONCLUSION
The project was undertaken to analyze and measure the level of satisfaction prevailing
among customers and the expectations in context with Punjab State Co-operative
Banks schemes.
The study concludes that the dealing of bank with the customers is quite effective and
efficient which is the most important element of marketing in todays scenario.
As per the study it was observed that the bank has very and efficient processing system
in relation to its both loan and deposit schemes.
Most of the customers get attracted with the PSCB as the interest rates offered by the
bank is comparatively more in relation to other public and private banks.
Also the bank offers some margin amount in its schemes which again works in favor of
customers as well as the bank.
As such the bank has no brand image like other public and private banks in the market,
but the PSCB is famous among the rural folks and is rightly called as SAHAKARI
BANK.

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Punjab State Cooperative Bank- Deposit & Credit Schemes

RECOMMENDATIONS
In todays world most of the banks provides ATM facility. So to meet the
competition in the market Punjab State Co-operative Bank should also provide
the ATM facility.
Bank should refocus on its interest rate as responded by people. Periodic Review
of the interest rate should be done.
There should be computerized system in the bank as it will reduce the time
wastage of manual work and will lead to the better performance of the bank.
Training of the employees should be there to meet the needs of the time.
More mass awareness campaigns should be organized in order to enhance
market share of bank. So bank should concentrate on its advertisement itself.
Rate of interest should be re viewed periodically.
If the interest rate has been reduced or has become non- favorable to the
customer, the bank should inform him/her.
There should be complaint boxes installed in the banks that should be opened
weekly and proper redressal of complaints should done.
Maximum practical exposure should be provided to the job trainees so that they
may handle the various enquiries of customer efficiency.
Communication gap within the bank and with the head office should be reduced.
Better infrastructure facilities should be provided to the PSCB Sangrur.
Banks are advised to have proper internal control measures for monitoring its
functions and transactions.
PSCB should open new branches in the rural and urban areas to achieve the
targets.

59

Punjab State Cooperative Bank- Deposit & Credit Schemes

BIBLIOGRAPHY
Banking & Insurance R.K.Sharma & Shashi.K.Gupta
Auditors Report, Balance Sheet & Profit/loss account Of PSCB as on
31.03.2010
Auditors Report, Balance Sheet & Profit/loss account Of PSCB as on
31.03.2011
Auditors Report, Balance Sheet & Profit/loss account Of PSCB as on
31.03.2012
PSCB Directory
PSCB Loan Schemes

http://www.punjabcooperation.gov.in/html/aboutus.html
http://pscb.in/welcome.htm

http://www.sify.com/finance/compare_interest_rates/

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