(A) COMPANY PROFILE:

First decade of 20th century was a very important era in the history of Co-operation
for entire country and Surat District as well. Many Co-operative institutions were
initiated during this period. First Co-op. Society in Surat District was registered at
Degam, Taluka Chikhli on 23-5-1906.
In the year 1909, with the efforts of Late ShriB.A.Modi and Late ShriK.G.Desai. The
Surat District Co.op.(Urban) union Ltd., was registered on 17-6-1909. It was the
institution which is later on known as THE SURAT DISTRICT CO.OP. BANK LTD.
In the year 1921, this society had undertaken banking activities in absolute terms. In
1923 The Surat District Co.op. (Urban) union was converted into The Surat District
Co-op. Bank Ltd., The work extended to the entire Surat District, which had 21
talukas and a vast working area with geographical variation.
The Vast Surat District was bifurcated in1965 and district of Bulsar was separated. At
present there are 15 talukas in the Surat district, of which 9 are in the tribal area.
Bank is having separate department for agriculture advances since 1944, and
become an effective central agency for Co-ordination and smooth flow of finance to
Co-operative sector in the district.

Co-Operative Organizations like:

The Surat District Milk Producers Co-op. Union Ltd.(SUMUL),

The Purushottam Farmers Co-op. Ginning & Pressing Society Ltd.,

The Surat Distrcit Co-op. Spinning Mills Ltd.,

The Surat Jilla Sahakari Sale & Purchase Union.,

The Surat Central Co-op. Stores Ltd.,

Cotton Co-op Socities of Olpad Taluka.

Bank has been enjoying privilege of having prominent citizens in fields like Social,
Co-operation and Agriculture, on its Board. The present and former members of the
Board included outstanding Lawyers, Members of Parliament, District Panchayat
Presidents, Mayor of Surat City and Leaders from various walks of life including
Ministers.
In the year 1965 The Surat District Co-op. Bank was separated after formation of
Bulsar District from old Surat District. After separation banks Financial Position is as
under.
Table- 3.1
No. Of Branches

59

Share Capital

Rs. 0.22 Crores

Reserves

Rs. 0.09 Crores

Deposits

Rs. 3.06 Crores

Advances

Rs. 1.71Crores

Management:
Since 1965 the structure of Board of directors has remained unchanged. In all, at
present there are 22 members on the Board as under.
Table- 3.2
One director from each Taluka

14

Two individual directors

One director from Surat city

Three nominated director from state government

One director from The Gujarat State CO-OP. Bank Ltd.

District Registrar (Co.op.Societies), Surat

TOTAL MEMBERS

22

Deposits:
Growth of deposit was steady and in harmony with Advances. At the end of March
2007 deposit of bank was Rs. 1203.40 crores

Advances:
It is obvious true as the major crop of the district is sugar cane. There are 8 sugar
factories in Co-operative sector, which have a turnover exceeding Rs.600/- crores
and as such, banks major share goes to this sector. Major chunk of advances goes
to sugar sector earlier.
In the last decade, bank has gradually paid more attention to non-agriculture and
Individual advances. New schemes, to finance for consumer durables, vehicles,
House construction, and professional loans also have been introduced. More
attention is paid to develop banking routine business also. Bank has actively taken
up the steps for diversification of Loan portfolio. Powers are delegated to the branch
Managers to sanction loans up to Rs.5,00,000/- for A1-Grade branch and
Rs.3,00,000/- for B Grade branch under individual nonfarm sector loans. Also
powers are delegated to the branch Managers to sanction loans up to Rs.1, 00,000/of all branches under individual farm sector loans which is also increased up to Rs.
2 lacks.
The position of advances at various stage is as under: (Rs.in lacks)
Table- 3.3
Year

Total Advances

1965

2.45

1985

45.03

1995

216.77

2005

245.92

Vision:
Our vision is to be Indias most respected and admired district Co-Operative
bank by influencing peoples lives through personalized banking services and
partnering them in realizing their dreams.

Mission:
Our mission is to be a preferred financial service provider with a special focus
on innovative quality products, technical expertise & efficient services for
customer achieve their objectives and goals.

Values:
We have accepted cardinal principle of corporate social responsibility and
accordingly we have tried to fulfill our social obligations to be recognized as
The Surat District Co-Operative Bank Ltd. in real sense.

Services Provided by SDCOBL:

RTGS / NEFT
SDCO ATM Card
Internet Banking
N-ECS
E-Payment Of Taxes

 Loan & Advance

Insurance
Lockers
SMS Alerts
Advantage To Senior Citizens
Cheque Transaction System (CTS)

(B) ORGANIZATION STRUCTURE:

Figure-3.1

(C) DIVISIONS/ DEPARTMENTS:

(A.1) LOAN Department:

Loan application department: In loan application department mainly

processing of loan application is done. In this department all the required documents
along with the applications are been collected and then sanctioning is done for
further procedure.

Loan disbursement department: when the documents are been submitted

by the customer for taking loan then investigation on such documents is done by this
department. to find out whether the documents are true or not and once the bank is
satisfied with the investigation and the loan amount is been paid to customer.

Loan recovery department: the customers who fail to pay the loan

amountthen for recovery of the amount of the loan from the customer is done in loan
recovery department all the legal actions are been taken the recover the loan.
(A.2) Administration department:

Personnel department: the work related to human resource is done in this

department (i.e. salary, recruitment, training, selection, etc.)

Salaries of all employees handled at administration department.

Whenever SDCOBL needed the new employees for bank, the recruitment

procedure and selection procedure are managed by this department.

If bank have changes in their technology than it is needed to give trainings to

the employee and it gives by this department.

(A.3) Share Department:

As the Surat district co-op bank ltd has its own share a separate department

to develop to do all the work related to share like share issue, payment of dividend,
share allotment, etc.

(A.4) Electronic Data Processing (EDP) Section:

The electronic data possessing section is developing for data processing and
computer hardware and software implementation any development of software for
data entry of banking transaction is done in this department. All the e-banking
services like internet banking, ATM, mobile banking, etc. are been handle in EDP
department.

(D)SWOT ANALYSIS:
STRENGTH:
Staff loyalty
Brand image

 Customer relationship management

Consistent growth overtime
Better adaptability of the market

WEAKNESS:
Inadequacy of initiative and innovation among the staff and members.
High operating cost

OPPORTUNITY:
Penetrating into market due to increase in industry banking.
Increase the economy of scale by reducing the per capital cost of operation.

THREATS:

Economic slowdown.

Highly competitive environment.

(E) Market Position:

The current market position of The Surat District Co-Operative Bank Ltd.Is very good
in the co-operative banking industry. This bank currently stood at 2nd position
compare to the other co-operative banks.
As on march, 2015, the banks total deposits stood at Rs.3887.65 crore, while loan
advances were Rs. 1290.23 crore. Investment of bank was stood at Rs.2851.92
crore and borrowing of bank was Rs.152 crore.

The overall profit of the bank was Rs.12 crore on 31 st march, 2015 and it shows that
bank at good position in the market.
The bank has a total of 59 branches in the district.

Rajagopalan (1968) had defined agricultural credit as the amount of

investment funds that could be made available for farm production from sources
outside that of the farm. He had also defined agricultural credit as the amount of
investment funds that could be made available for the purpose of development and
sustenance of farm production and productivity.

Chakraborthy and Pramanlk (1999) found that inadequate working capital

supply by financial institutions, including banks, complicated banking procedure, with

the increasing gap between the application for loan and the disbursement of money,
and the multiplicity procedures and the like that came in the way of the smooth
functioning of the small enterprises. A greater positive role has to be played by the
Reserve Bank of India through its Sick Industrial Undertakings Division for the reorientation of the attitudes of the banks and other financial institutions operating in
the backward areas for assisting and rehabilitating sick units.

Namasivayam& et.al (2006) examined the working performance of the

Madurai District Central Co-operative Bank Ltd. The performance had been quite
impressive in terms of deposit mobilization and credit deployment. He concluded that
the success of the cooperative bank depended on effective manpower, planning and
management.

Singh and Singh (2006) studied the funds management in the District

Central Co-operative Banks (DCCBs) of Punjab with specific reference to the

analysis of financial margin. It noted that a higher proportion of own funds and the
recovery concerns have resulted in the increased margin of the Central Co-operative
Banks and thus had a larger provision for non-performing assets.

Mavaluri, Boppana and Nagarjuna (2006) suggested that performance of

banking in terms of profitability, productivity, asset quality and financial management

has become important to stable the economy. They found that public sector banks
have been more efficient than other banks operating in India.

Bhaskaran and Josh (2000) concluded that the recovery performance of co-

operative credit institutions continues to unsatisfactory which contributes to the

growth of NPA even after the introduction of prudential regulations. They suggested
legislative and policy prescriptions to make co-operative credit institutions more
efficient, productive and profitable organization in tune with competitive commercial
banking.

Jain (2001) has done a comparative performance analysis of District Central

Co-operative Banks (DCCBs) of Western India, namely Maharashtra, Gujarat and

Rajasthan and found that DCCBs of Rajasthan have performed better in profitability
and liquidity as compared to Gujarat and Maharashtra.

A study titled performance of Cooperative banks in supply of loans to farmers

in Karnataka was undertaken by Sri B.N. Ganvir, Sri D.L. Sale and Sri N.L. Kale
with the objective to know the performance of different cooperative Banks in respect
of distribution of short-term, medium-term and long term loans. The study concludes
that there was considerable increase in loans, outstanding loans and also overdue.

S. N. Bidani (2002) feels that Non-performing Assets are the smoking gun

threatening the very stability of Indian banks. NPAs wreck a bank's profitability both
through the loss of interest, income and write-off of the principal loan amount itself.
In a bid to stem the lurking rot, RBI issued in 1993 guidelines based on

recommendations of the Narasimham Committee that mandated identification and

reduction of NPAs and reducing NPAs was treated as a 'national priority'.

GouravVallabhi, AnoopBhatio and Saurabh Mishra (2007) explain that the

Non-performing assets are considered an important instrument to judge the

efficiency and financial health of banks. The level of Nonperforming assets is one of
the factors effecting a financial stability and growth of the banking industry. The
authors made an effort to find the fundamental factors which impact Non-performing
assets of banks. It is seen that priority sector lending is a major cause for Nonperforming assets

Nandhini Mishra (2011) identified sectors of Non-Performing Assets, housing

loan and education loan are more responsible to the increase of Non-performing
assets. Real estate is another sector which is in part of which more than 40% of total
Non-performing Assets and 2% of education shows outstanding.

Ray R. and Patil D.Y. (2013), as per their research paper entitled on

Management of NPA in Banks: A comparative study of commercial & cooperative

Banks with reference to selected Banks in Pune. Their research study based on the
objective of comparative analysis of non-performing assets and its effect on
profitability position of the bank and productivity of the bank. The findings of the
study was presented in the form of thesis which comprises various chapters like:
introduction, guidelines of NPA, present scenario of NPA, effect of NPA, reasons of
NPA, management of NPA and conclusion and suggestions. They tested hypothesis
that the occurrence of NPA affects the profitability and financial health of a Bank
adversely.

Thanker H M and Dubule U S (2010) made an effort on the effect to non-

performing assets management. Authors suggested the measures to decrease the

Non-performing assets, awareness and training camps should arrange in their area
of operation once in a year and recovery camps should be organized for better
recovery. They also suggested that the training should be given to the selected
borrowers at approved training center before releasing finance.

(A)

PROBLEM STATEMENT:

What is the amount of loan disbursed at The Surat District Co-Operative Bank

Ltd.?

How are NPA managed at SDCOBL?

(B) OBJECTIVES:

To study the disbursement of loan by SDCOBL during past five financial

years.

To study the different components of non-performing-assets.

To study the trend of loans & advances made by bank.

To study the recovery performance of the bank.

(C)RESEARCH DESIGN - There are three types of research design Descriptive

research design, exploratory research design and casual research design

Types of design: descriptive

(D)Data collection: The research is mainly based on the secondary database.
Secondary data have been collected through annual reports, authentic records,

website of the bank and other related data of loan disbursement and NPA
management of the bank for last five financial years i.e. from 2010-11 to 2015-16.

Books & magazines

Database at SDCOBL

Library research

Websites

E-circulars of SDCOBL

Annual report of last five years.

(E)Tools and analysis:The research is based on the secondary data and for the
analysis of the data is undertaken by various analytical tools like trend analysis and
ratio analysis techniques.

(F)LIMITATION OF STUDY:

Due to the constraint limited study on the project has been done.

Access to data (disbursement data in detail is not available).

The time period of the research was limited.