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“A STUDY ON COOPERATIVE AGRICULTURAL ADVANCES”
SUBMITTED BY
DIVYA.D.V
R15BC050
UNDER THE GUIDANCE OF
Prof. HARSHA.J
SCHOOL OF COMMERCE
REVA UNIVERSITY
RUKMINI KNOWLEDGE PARK, KATTIGENHALLI
YELAHANKA, BANGALORE-64
(2018)
DECLARATION
I, Ms. DIVYA.D.V student of B.Com (Industry Integrated) belong in to School of Commerce,
REVA University, declare that this Dissertation entitled “A study on cooperative agricultural
advances in Rythara Seva Sahakara Sangha” is the result the of work done by me under the
supervision of Prof. HARSHA.J at REVA University, School of Commerce.
I am submitting this Dissertation in partial fulfillment of the requirements for the award of the
degree of Bachelor of Commerce in School of Commerce by the REVA University, Bangalore
during the academic year 2017-18.
I further declare that this project / dissertation report or any part of it has not been submitted for
award of any other Degree / Diploma of this University or any other University/ Institution.
(Signature of the candidate)
Signed by me on-
Certified that this project work submitted by Divya.D.V has been carried out under my/our
guidance and the declaration made by the candidate is true to the best of my knowledge.
Signature of Guide Signature of Director of School
Date: ……….. Date: ………..
Official Seal of the School

ACKNOWLEDGEMENT
This is a matter of pleasure for me to acknowledge my deep sense of gratitude to REVA

UNIVERSITY and School of Commerce for giving me an opportunity to explore my abilities via
this Dissertation.
I would like to express my sincere gratitude to my guide Prof. HARSHA.J for his
valuable guidance and advice in completing this organization study.
Let me take this opportunity to thank School Director, Dr. SHUBA.A for the whole
hearted support extended to me throughout the conduct of the study. Madam gave me lot of
inputs and suggestions to bring out the best in me. The encouraging words that have been
extended were great boost for the completion of this work.
I would like to record my sincere appreciation and gratitude towards all the officials and
employees of Rythara Seva Sahakara Sangha, without whose kind assistance, my dissertation
would not have succeeded.
I am also very thankful and grateful towards my seniors, colleagues and authorities of
School of Commerce, REVA UNIVERSITY for their support, encouragement, and valuable
suggestions for the completion of this organization study.
Last but not the least, I would like to express my sincere thanks to my family members,
friends for their immense support and best wishes throughout the study and the preparation of
this report.
DIVYA.D.V
TABLE OF CONTENTS
CHAPTER-01 INTRODUCTION 1-17

 Introduction to accounting.
 Introduction to bank.
 Introduction to agricultural advances.
CHAPTER-02 COMPANY HISTORY AND PROFILE 18-30

 Introduction.
 Bank vision and mission.
 Information technology in bank.
 Bankers of bank.
 Important acts of bank.
 Board activity of bank.
 Organisation structure of bank.
 Social activities of bank.
 Achievements of bank.
CHAPTER-03 RESEARCH DESIGN 31-38

 Review of literature.
 Research gap.
 Research methodology.
CHAPTER-04 DATA ANALYSIS AND INTERPRETATION 39-60

 Primary data.
 Secondary data.
CHAPTER-05 FINDING, SUGGESTION AND CONCLUSION 61-63
LEARNING OUTCOME
BIBLIOGRAPHY
ANNEXURE
ABSTRACT
Agriculture advances is an important prerequisite for agricultural growth. Agricultural
policies have been reviewed for time to time to provide adequate and timely availability of
finance to this sector. Rural credit system assumes importance because for most of the Indian
rural families, savings are inadequate to finance farming and other economic activities. The
coupled with the lack of simultaneity between income realization and expenditure and lumpiness
of agricultural capital investments. The institutional credit system is critical for agricultural
development and its role has further increased in the liberalized economic environment.
In India a multi-agency approach comprising co-operative banks, scheduled commercial

banks and regional rural banks has been followed to allow credit to agricultural sectors. In the
present competitive world securing huge funds for a business is a complicated matter. Any
money accepted as a deposits must be for the purpose of lending or investment. Making
advances and investment of funds are equally important. The function of cooperative bank is to
cater to the needs of the rural areas and small and are concerned more with the financing of
agriculturist. The study focus on cooperative agricultural advances it is a detailed study on it
system and management is essential and this is conducted on cooperative bank limited. It helps
to improve its credit recovery and also measures to be adopted in case of risk involved. Hence
this study is undertaken. There are 3 types of agricultural advances which is provided by the
banks namely, short term advances which deals with short span of time that is 15 months which
is given for purchasing of fertilizers and to meet working capital expense. Secondly medium
term advances which is for a period of up to 5 years given for the purpose of buying cattle or
agricultural equipment. Thirdly, long term advances which is for a period of more than 5 years
and it is given for the purpose of purchase of land, tractor etc. The sources of agricultural
advances are institutional sources like rural cooperative banks, state cooperative banks and non-
institutional sources like money lenders.
NABARD which stands for National Bank for Agriculture and Rural Development is an apex
development financial institution in India, in which headquartered in Mumbai which branches all
over India. The bank has been entrusted with the natters concerning policy, planning and
operations in the field of credit for agriculture and other economic activities in rural areas in
India. It is active in developing financial inclusion policy and is a member of the Alliance for
Financial Inclusion.
The study on cooperative agricultural advances aims at covering the process of financing
and managing the advances. The concept of agricultural advances and monitoring has been
covered in detail. The study of agricultural advances in banking and financial institutions
A STUDY ON COOPERATIVE AGRICULTURAL ADVANCES
CHAPTER-01
Introduction to accounting-
Introduction-
Accounting is a language of business. It is the system of recording, summarizing and

analyzing an economic entity‟s financial transactions. Effectively communicating this
information is key to the success of every business. Those who rely on financial information
include internal users, such as a company‟s managers and employees, and external users, such as
bank, investors, governmental agencies, financial analyst, and labor unions. These users depend
upon data supplied by accountants.
Accountants must present an organization‟s financial information in clear, concise reports

that help make questions like these easy to answer. The most common accounting reports are
called financial statements.
All business organizations work in an ever-changing dynamic environment. Any new

programmed of the organization or of its competitor will affect the business. Accounting serves
as an effective tool for measuring the financial pulse rate of the company. It is a continues cycle
of measurement of results and reporting of results to decision makers.
Development of accounting discipline-
The history of accounting can be traced back to ancient times. According to some belief, the
very art of writing originated in order to record accounting information. Though this may seems
to be an exaggeration, but there is no denying the fact that accounting has a long history.
Accounting records can be traced back to the ancient civilization of china, Babylonia, Egypt etc.
Accounting was used to keep records regarding the cost of labor and materials used in building
great structure pyramid.
The government also has had lot to do with more accounting development. The income tax
brought about the concept of „income‟ government takes a host of other decisions, relating to
REVA UNIVERSITY, SCHOOL OF COMMERCE Page 1

education, health, economic planning- for which it needs accurate and reliable information. As
such, the government demands stringent accountability in the corporate sector, which forces the
accounting process to be an objective and formal as possible.
Basically there are 3 broad classifications of accounting and they are as follows,
I. Financial accounting-
Financial accounting involves recording and classifying business transactions, and
preparing and presenting financial statements to be used by internal and external users.
In the preparation of financial statements, strict compliance with generally accepted
accounting principles (GAAP) is observed. Financial accounting is primarily concerned
in processing historical data.
Financial accounting is based on certain concepts and conventions, which include
separate business entity, going concern concept, accounting period concept, matching
concept, realisation concept, and conventions of conservatism, disclosure, consistency
etc.
II. Management accounting-
Managerial or management accounting focuses on providing information for use by
internal users, the management. This branch deals with the needs of the management
rather than strict compliance with generally accepted accounting principles.
Managerial accounting involves financial analysis, budgeting and forecasting, cost
analysis, evaluation of business decisions, and similar areas.
III. Cost accounting-
Sometimes considered as a subset of management accounting, cost accounting refers to
the recording, presentation, and analysis of manufacturing costs. Cost accounting is very
useful in manufacturing businesses since they have the most complicated costing process.
The basic purpose of cost accounting is to provide a detailed break up of cost of
different departments, processes, jobs, products, sales territories, etc. So that effective
cost control can be exercised.

Introduction to bank-
Bank-
A bank is a financial institution which accepts the deposit from the public and lends the
same deposits in the form of loans for those who are in need of it. This helps for the creation of
credit.
Cooperative banks-
Cooperative banks are those commercial banks that are organized on the cooperative basis.
Cooperative banks accept the deposits and lend the money across the world.
Formation of cooperative society-

● A cooperative society must be formed under the cooperative societies act , 1912 or under
the relevant state cooperative society laws.
● In cooperative society there must be at least 10 adult members.
● The members willing to form a society must have common bond among them.
● The basic idea is that all the persons intending form a society should have a common
objective to achieve.
Features of cooperative society-

1. Open membership-
The membership is open for all the members who have a common interest.
2. Voluntary organization-
Society is based on voluntary membership and anyone can join the society.
3. Source of finance-
In cooperative societies all the members contribute to the capital so that the loans can
be raised easily.
4. Service motive-
Cooperative societies are not formed to maximize the profit. The main motive is to
provide service to the members.

5. Number of members-
The minimum number of members required is 10 members but there is no limit.
6. Equal voting rights-

In cooperative societies there is one vote for each member, irrespective of shares held
by them.
7. Elimination of middlemen-
The main motive of cooperative societies is to eliminate the middlemen and to maintain
direct contact with members an-d customers.
8. Cash trading-
Cooperative society conducting business on a cash basis on no credit is allowed.
Types of cooperative bank-
● Primary cooperative credit society-

It is an association of borrower and non borrower residing in a particular locality. The
funds of society are derived from share capital deposit of members and loans from central
cooperative banks. The borrowing powers of the members as well as society are fixed. The
loans are given for the members for the purpose of purchase of cattle, fodder, fertilizer,
pesticides etc…
● Central cooperative banks-

These are the federation of primary credit societies in a district an area of two types,
those having a membership of primary societies only and those having a membership of
societies as well as individual. The funds of the bank consist of share capital, deposits, loans
and overdraft.
● State cooperative bank-

It is a federation of central cooperative bank and acts as a watchdog of the cooperative
banking structure in the state.

 Land development bank-

It is organized in three tiers they are central and primary level and they meet long term
credit requirements for the farmers for development purpose.
● Urban cooperative bank-

It refers to primary cooperative banks located in urban and semi-urban areas. These
banks till 1996 were allowed to lend money only for non agricultural purposes. This
distinction doesn‟t hold today.
Introduction to the topic-

Cooperative agricultural advances
Cooperative agriculture advances-

Agricultural cooperative is a kind of farming operation where agricultural practices were
conducted by the individuals on their own holdings jointly with certain common agencies formed
on their behalf for the collection and purchase of agricultural inputs like seeds, fertilizers,
equipments etc…. And also for the sale of agricultural produce.
In respect of cooperative agriculture individual retain their ownership of respective plots of
land and distribute the income of the farm among the members on the basis of size and value of
the plot along with their other contributions.
Such type of farming is again different from the cooperative collective farming followed in
socialist countries where ownership land disappears completely after the formation of
cooperatives.
Features of cooperative agriculture-

1. Joining of farmers in this system voluntarily.
2. Farmers retain their right to land.
3. -Farmers pool their land, livestock, and other implements.

4. The entire farm is managed- as a single unit and the management is elected by the
members.
5. Each and every member earns a share of the total produce in accordance with their
contribution and labor performed.
Types of credits-
1. Short term
2. Medium term
3. Long term
 Short term credit-

The Indian farmers require credit to meet their short term needs that is purchasing
seeds, fertilizers; paying wages to hired workers etc… it is for a period of less than 15
months. -Such loans are repaid after harvest.
-
 Medium term credit-
This type of credit includes credit requirement of farmers for medium period ranging
between 15 months and 5 years and it is required for purchasing cattle, pumping sets and
other agricultural implements etc...Medium term credits are normally large in size then
Short term credit.
 Long term credit-

The period of long term credit is generally 5 to 20 years or even more in some
special case. Long term investment is necessary, to create permanent assets which gives
returns over a period of time. In agriculture long term investment comprises if sinking
well, land- levelling,fencing and permanent improvements on land purchase of big
machinery like tractor with its attachments including trolleys, establishment of fruit
orchard of mango, cashew,coconut,sapota,orange,guava etc…

Individual farmers have no financial capacity to make such costly investments from
their own funds because they have no savings or very little savings. Therefore they have
to resort to bank borrowings to meet their such needs.
Types of Cooperative agricultural bank in India-
1. National bank for agricultural and rural development(NABARD)-

It is responsible for refinance disbursement to commercial banks, state cooperative
banks, state cooperatives, rural development banks, regional rural banks and other eligible
financial institutions. It also sanctions money through its Rural infrastructural development
funds for projects covering irrigation, rural roads and bridges, health and education, soil
conservation and drinking water scheme. It also offers Kisan credit card scheme and crop
loans under Rashtriya krishi bima yojana.
The Kisan credit card is valid for 3 years subject to annual review. An incentive for
good performance, credit limit may be enhanced to take care of increase in crops, change in
cropping pattern etc.. Each drawl should be paid within a maximum period of 12 months.
Security, margin, rate of interest and other details are fixed by RBI.
2. Bihar state cooperative bank limited(BSCB)-

Offers a range of loans and financial schemes to agriculturalist.
3. Haryana state cooperative Apex bank limited-

The bank offers crop loans, Kisan credit cards, cash credit against hypothecation stock
and interim finance by way of cash credit.
4. National federation of state cooperative banks limited(NAFSCOB)-

The federation offers a range of agricultural loans through member state cooperative
banks, District central cooperative banks and Primary agricultural cooperative societies.

5. Orissa state cooperative bank limited(OSCB)-

The bank has introduced Kisan credit cards in the S.T cooperative credit sector. It also
organizes seminars on agro-finance. OSCB has 17 credit cooperative banks and around 810
mini banks in different district in Orissa.
6. Repatriates cooperative finance and development bank limited-

This bank does not have any specific agricultural loan, but offers a range of financial
products that can be accessed by the people who wish to develop agriculture and related
activities.
7. Punjab state cooperative agriculture development bank ltd

Initially the banks only gave farmer loans to pay off old debts and purchase land.
Today, the banks provide loans for various purposes like improvement of alkaline and saline
lands, purchase of tractors, installing tube wells and other modern agricultural equipment. It
also offers financial- scheme for poultry development, dairy development and hori culture.
I.
8. Andhra Pradesh state cooperative bank limited(APCOB)-
It has a loan portfolio that covers crop loans, medium term loans and long terms loans
for agricultural purposes. It also supports government sponsored District Rural development
agencies projects through IRDP loans and cooperative sugar factories, spinning mills,
weaver‟s societies, employee‟s cooperative credit societies and other organisations.
Scheme for agricultural finance-

1) Kisan credit card scheme-
Eligibility-:
The agriculturist that are in n-eed of short ter-m production requirements. ATM facility and
personal accident insurance scheme for life up to RS.50000/- and permanent disability cover up
is RS.25000/- is available on request.

Purpose:
To provide hassle free short term credit to farmers on the basis of their land holdings for
purchase of inputs and draw cash to meet their production needs that is cultivation expenses.
Amount of loan:
To be fixed on the basis of operational holdings and scale of finance with consumption
component 15 %( maximum RS.10000) of production credit. The scale of finance to farmers
who own cultivated land below one Acer will be at the rate of RS.40000 and farmers who own
more than one Acer with an intensive farming of land be given at the rate of RS.37500 per Acer.
Rate of interest-
Interest rate ranges from 2.50% below to 1.50% above BPLR for various limits.
Repayment-
Running cash credit account for 36 months subject to annual review and total annual credit
should exceed annual debit.
2) Homestead farming-
Purpose:
The scheme for financing farmers practicing mixed cropping/ intercropping along with
allied activities to enable them to undertake cultivation of various crops in more integrated way.
The scheme provides the farmers with sufficient working capital required for the homestead
farming by mixing scale of finance based on land holding.
Amount of loan:
The farmers who own cultivated land below one acre be given the scale of finance on pro
rata basis at the rate of RS.40000/- and farmers who own more than one acre of land be given at
the rate of RS.37500/- per acre.
Rate of interest:
Interest rates ranges from 2.50% below to 1.50% above BPLR for various limits.

Repayment:
The facility will be sanctioned as an agricultural cash credit limit ( in case Kisan credit card
running cash credit).
3) Loan for estate purchase-
Eligibility:
The estate should b-e either in yielding stage with the crop in its prime yield age or capable
of being developed into a viable unit. The net income of the estate should be sufficient to
liquidate the proposed loan and interest occurred within a period of 7 to 10 years.
Purpose:
To encourage those who prefer to settle down in agriculture and are in look out of good
estate for purchase and also for improve production in agriculture.
Amount of loan:
The quantum of loan that will be considered for sanction will be 75% of the registered value
or 50% of the market value whichever is low. In exceptional cases 80% of the registered value or
50% of the market value whichever is low will be considered. The loan for the development of
the estate like land development including working capital can also be sanctioned.
Repayment:
Interest rate same as BPLR.
4) Scheme for cultivation of medicinal plants-
Eligibility:
All agriculturalists are eligible.
Purpose:
Scheme for financing cultivation of 22 medicinal plants cultivated extensively and also the
great demand in the local as well as foreign markets.

Amount of loan:
Depending on the area of cultivation.
Rate of interest:
Interest rate ranges from 1.75% below to 2.00% above BPLR for various limits.
NABARD (National Bank for Agriculture and Rural Development)-
NABARD is an apex development financial institution in India, Headquartered at Mumbai

with branches all over India. The bank has been entrusted with „matters concerning policy,
planning and operations in the field of credit for agriculture and other economic activities in rural
areas in India.-
 Headquarters- Mumbai, Maharashtra, India.

 Established- 12 July 1982
 Chairman- DR. Harsh Kumar Bhanwala
 Currency- In Rupees
 Website- www.nabard.org
NABARD has been instrumental in grounding rural, social innovations and social
enterprise in the rural hinterlands. It has in the process partnered with about 4000 partner
organizations in grounding many of the interventions be it, SHG-bank linkage programme, tree-
based tribal communities, livelihood initiative, watershed approach in soil and water
conservation, increasing crop productivity initiatives trough lead crop initiative or dissemination
of information flow to agrarian communities through farmer clubs. Despite all this, it plays huge
taxes too, to the exchequer. NABARD virtually ploughs back all the profits for development
spending, in their unending search for solutions and answers. Thus the organization had
developed a huge amount of trust capital in its 3 decades of work with rural communities.

 NABARD is the most important institution in the country which looks after the
development of the cottage industry, small scale industry and village industry, and other
rural industries.
 NABARD also reaches out to allied economies and supports and promotes integrated
development.
 NABARD discharges its duty by undertaking the following roles-
 Serves as an apex financing agency for the institutions providing investment and
production credit for promoting the various developmental activities in rural areas.
 Takes measures towards institutional building for improving absorptive capacity of the
credit delivery system, including monitoring, formulation of rehabilitation schemes,
restructuring of credit institutions, training of personnel etc.
 Coordinates the rural financing activities of all institutions engaged in developmental
work at the field level and maintains liaison with government of India, state governments,
Reserve bank of India and other national level institutions concerned with policy
formulation.
 -Undertakes monitoring and evaluation of projects refinanced by it.
 NABARD refinances the financial institutions which finances the rural sector
 NABARD partakes in development of institutions which help the rural economy.
 NABARD also keeps a check on its client institutions
 It regulates the institutions which provide financial help to rural economy.
 -It provides training facilities to the institutions working in the field of rural upliftment.
 It regulates the cooperative banks and the RRB‟s and manages talent acquisition through
IBPS CWE
Types of agricultural advances-
Agricultural advances are commonly supplied by the farm service agency of the United
States department of agriculture. The following are the different types of farm loans that are
available for the farmers they are as follows-

1. Farm storage facilities advances-
These are the types of farm loans these loans can help to afford the cost to build an on-
farm storage facility for farmer‟s crop and products. To qualify, the commodity that farmers
are storing must fall into the categories of corn, oats, wheat, barley, rice, soya bean, oilseeds,
lentils, peas, hay, biomass, fruit, vegetables, or grain. If the farmer is qualify can obtain up to
5 lakhs in direct financing from the federal government.
2. Farm operating advances-
Operating loans assist farmers in day-to-day needs or expansion requirements; they

come in both direct and indirect options. An indirect loan is provided by the FSA. This
makes the loan more affordable. A guaranteed, indirect loan may be issued in an amount as a
large as 12 lakhs, with a guaranteed up to 95 percent. Direct loans may also be issued to
credit worthy individuals who do not qualify for private loans due to other circumstances.
3. farm ownership advances-
It is like operating loans; ownership loans provided by FSA come in both guaranteed
and direct loan form. The limits are the same as those limit provided by the operating loan
program. This money must go directly towards the purchase of land, livestock, crop, or
machinery needed to assist in acquiring ownership of a farm meant for commercial
production. In addition to credit requirement, the farm owner must have experience in the
farming industry.
4. Fishers finance program advances
This program is designed for specific project in fishers that qualify under the direction
of congress. A qualified program is eligible for up to 80 percent financing through a direct
loan program,. This loan program is designed to refinance a private debt on a fishing vessel
or to provide for maintenance and repairs on an existing vessel. Qualified projects do not
include complete construction of a new fishing vessel or fishery, however in order to qualify,
the fishery must meet environmental and government regulation

5. Farm labour housing advances-
The program provides loans and grants through the US department of housing and
rural developments rural housing initiative. The program provides capital to build or replace
housing structure for rural farm workers. The program is meant to make the housing facility
more livable, and it may include the replacement or repair of furnishing inside the housing
structure. Further, this loan or grant can extend to a wide range of farming projects including
rare projects like oyster farming or fisheries.
Problems that are faced by banks in recovery of advances-
The following are some of the problems that are faced by the banks in recovering their
advances, so they are as follows-
a. Due to continues and constant natural calamities the rate of recovery has became poor for
the banks.
b. Lack of infrastructure in societies such as building, technical infrastructure, funds, staff,
computer facilities.
c. Lack of staff members in the society it has been observed that some societies are facing
the problems of lack of staff members.
d. Societies are not able to go to the field in sanctioning the loans in or to check the proper
utilisation of loans and advances.
e. Interference of political persons, local leader and higher officers in government while
giving loans and advances to farmers and also in recovery of loans and advances.
f. The deposited mobilisation by the PAC‟s show that the deposits of selected PAC‟s are
very low and insignificant. Therefore most of the PAC‟s at present they dependent on
funds provided by the DCC in the district.
g. Due to lack of capital.
h. Due to low level of recovery of loans and advances.
i. Lack of credit facilities to a large segment of rural population, particularly the poor.
Those need to be addressed. The formal banking system in the country services, 25.9% of
rural households while 14% farmers households depends on money lenders for their
credit needs. Further 51.4% of the total farmer‟s households do not have any access to
credit facilities.
Suggestions for banks to reduce the problems of recovery of loans and

advances-
The following are the suggestions that are given for the farmers to reduce their problems
of recovering loans and advances from the farmers they are as follows-
i. Trained staff members are in the banks, knowledge of the official dealings in credit needs
a regular updating through training,
ii. Appropriate simplification in documentation is needed. All supporting documents for
loan application may also be made available in local or vernacular language, particularly
to agricultural and small business borrowers.
iii. To cooperative banks must simplify their loaning procedure.
iv. Active supervision and better follow up of loans and advances after disbursement of
loans and advances are required to maintain asset quality at the branches.
v. The cooperative laws of the state most facilitate the cooperative to functions as member‟s
drives organisation. Present in any banks non-servicing members become the
managements.
Problems that are facing by the farmers
Farmers problems focus attentions on the inherent weakness of the financial institutions. It
is true that adequate and timely supply of credit is the one of the essential condition for
improving agricultural practices and prompt repayment of loans and advances.
The primary need of the farmers is timely supply of credit in agriculture. Needless to
emphasis the importance of credit in agriculture. It is sine quonam with agriculture. Various
ways and means have been identified to provide credit to farming communities. Cooperative
banks are important sources of agricultural credit to the farmers. These banks willingly or
unwillingly come forward to finance agriculture. These institutions charge lower rate of interest

compare to commercial banks. Cooperatives societies are basically commercially oriented and
profit making institutions.
There are some of the problems that are facing by the farmers for paying the loan amount,
they are-
a) Climate of uncertainly is greatest in agriculture as compare to other sectors because even

today a considerably high proportion of Indian agriculture is dependent on the vagaries of
the monsoon.
b) An interference of the middle man in getting the loans and advances. It is higher in
commercial banks compared to cooperative banks.
c) Farmers have to face a number of problems, one them being great difficulty in getting
credit because of peculiar nature of agricultural credit.
d) A continues and constant natural calamities, the agricultural production is very low. So, -
repayment capacity of the farmers is very less. Then increase in debt and default occur.
e) Some banks are giving the preference to big farmers so, small and marginal farmers are
not able to get the high amount, because land size is small, and repayment capacity is
less.
f) Banks gives the credit amount which is very low, as compared to commercial banks. -
Cooperative banks give credit amount, 5000 per area it is increased every year only 10%.
So, the available of credit is not up to satisfaction of farmers.
g) Transaction cost of credit is very high.
h) Farmers are facing the main problem that is market fluctuations.
Problems of farmers focus on attention on the inherent weakness of the adequate and
timely supply of credit is one of the essential conditions for improving agricultural practices. The
lending institutions should process credit applicant on in such a way that the purpose of the
borrowers in fully fulfilled in time. Procedural delay hampers the planning of the cultivation.

Suggestions from the farmers for banks regarding to loans and advances-
 Banks or societies should fix a price for agricultural products and purchase it.
 -Loans and advances should be increased for agricultural produces.
 Effective supervision should be there over the utilisation of loan amount
 Banks should have a practice of issuing crop loan in cash and in kinds such as fertilizers
and seeds.
 Income enhancing programmes should be implemented in the villages.
 Banks or societies must have good contacts with the farmers especially with small and
the marginal farmers.
 To reduce transaction cost

CHAPTER-02
History and profile of Rythara Seva Sahakara Sangha cooperative
bank
Introduction-
From Bangalore 21 kms this bank head office is situated in hindupur state highway in
Bangalore. In 1976 according to the suggestion of NATIONAL AGRICULTURE COMISSION
COMMERCIAL BANK are requested to give financial help to cooperative societies in state.
Like syndicate bank yeshwantpur branch is requested to give financial help to singanayakanhalli,
farmer‟s service cooperative society in June 1976. In 48 villages, nine service cooperative
societies, society is not in position of helping its members because of its bad condition. These
nine cooperative societies merged with SINGANAYAKANAHALLI AGRICULTURE
SERVICE CO-OPERATIVE SOCIETY. Authority officer form syndicate is appointed to work a
coordination director.
In this society thirteen administrative directors are representing different department like e
agricultural, animal husbandry, rural development, cooperative departments etc. Government of
Karnataka reserved an agriculture office and 2 rural services work for their society. Agricultural
service co-operative society singanayakanahalli- has started its activity on December 1976.
There after they done survey for 48 villages. They identified members and joined them in
society. 1970 acres of land belongs to this society, smaller landlord, agriculturist, rural craftsman
are situated in this place and they are growing crops with the help of rain and available water
resources like tank or reservoir. People are facing difficulties for their livelihood and in free
times they go for coolie.
In 1976 this society has opened another branch in Yelahanka, agriculture loan, agriculture
equipment supply, framing programmes are needed by the farmers are arranged by them.
Bangalore Agriculture University, Indian craft institutions have come to help this society to
create revolution in agriculture sector for every long term, short term and medium term loan and
with special scientific methods. Rural developments have been provided donation with which the
society -gives loan to buy hen, cow, goat who does own agriculture land to improve the
economic status of the members. In 1978 with the help of all departments, society arranged loan
exhibition an adjoining new members, member registration, loan approval, loan collection are
done because of this society enjoyed compliments from the society.
Agricultural loans, technology support, sale of agricultural equipment‟s and to arrange

training centre for the numbers, is main objective of the society. In beginning society started with
2215 members with 1.12 lakhs share capital running under losses. Due to its work activities
gradually development took place and it became modern co-operative society in 1982 to reach
the members to provide durable goods in discount prices through sales distribution centre. In
1998 this society converted as bank
Today this co-operative bank has expanded as six branches, owned head office, with the
help of N.C.D.C It established own god owns society is doing banking business. It is introducing
new deposit scheme, through this succeeded and at present it has its own capital and do not takes
any loans. From other banks this society carries out its activities with its own capital. Every year
bank is providing loans to its members and they are repaying the loan amount based on the terms
and the conditions. During three decades bank gives financial support to rural member because
of their financial support members are living independently , bank also gives education to their
members children and build their own houses and living with people.
Bank units operational area provides loans to members like, crop loan, jeweler pledge loan,
security loan, tractor loan, power tiller loan, s-elf-help group loan, small traders loan, hose
construction loan, higher education loan for agriculturist children and to purchase house hold
goods for solar equipment‟s instillation and other purpose .house hold goods for solar, mini lorry
and it is useful not only for bank also farmers because farmers are using these equipment‟s at
discount rate.

During the last five years loan recovery information are as follows
2012-13 2013-14 2014-15 2015-16 2016-17
91% 83% 75%- 81% 84.49%
During the last five years deposit holding of bank are as follows-
2012-13 2013-14 2014-15 2015-16 2016-17
9169.22 11453.27 12298.55 13401.02 14462.64
During the last five years sale transactions information are as follows-
2012-13 2013-14 2014-15 2015-16 2016-17
548.15 524.46 603.03 541.47 510.46
During the past five years government subsidies are as follows (in lakhs)
2012-13 2013-14 2014-15 2015-16 2016-17
47.17 15.32 29.79 22.06 37.90
Changing scenario in banking sector-

Today banking sector operates in increasingly complex, competitive and global markets,
further it has operation across geography, products, assets losses, customer segments and
functional departments.
To arrest fall in the customer business base owning to disintermediation banks have entered
into a host of fee based services such as cash management. Funds transfer etc. capital market
activities such as merchant banking, public issue management, private placement of issues and
advisory services to diversify fund to fee based activities. Another outcome of disintermediation
is rapid growth in size of investment portfolio of bank over a period of time at a cost of advances
over portfolio which can be attributed to -various reasons apart from disintermediation thereby
changing the complexion of banking risks.

Cooperative movement in RSSSN-

From December 1976 Rythara seva shakara sangha, Singhanayakanahalli started
functioning. It recognized families under its jurisdiction of 48 villages from few were selected as
members. The main objective of the society included sanctioning of loans to farmers to
providing technological assistance to conduct scientific farming training programs and marketing
of agricultural inputs.
During 1978, in Harohalli loan fare was conducted which included on the spot membership
loan sanctioning and spot payment of loans which was most appreciated deed of society. In
1998, society recognized itself as Rythara seva shakara sangha.
Bank vision
1. Taking credit near to doorstep of the members.
2. Multipurpose viable purpose primary agricultural co-operative societies.
3. To provide integrated credit package to graduated farmers also.
3. To spread cooperative education through women‟s graduate farmers clubs.
5. To be strongest organization in the rural area.
Mission Statement-
To improve the economic development of the members of society and also paying attention
in p-roviding loans to the farmers. Releasing them from the clutches of money lenders by making
loans available at reasonable rates of interest with simple terms.
Information Technology in Rythara seva shakara sangha bank-

Information technology is very important today. Every banking sector uses modern
technology of different department. So this bank also implemented the new techniques in finance
and overall management in the organization. Rythara seva shakara sangha bank is implementing
recording all the documentation in computers and also monitoring the legal cases with help of
computers.

Finance
Government of Karnataka extended financial support for establishing the farmer
cooperative societies/banks in the rural areas. It provides maximum loan facilities to individual
farmers, small businessmen and other take its benefits too.
Bank extended the short and medium term loan to the members. Loans are given to the
members who were not defaulters and who have shares in the society in the prescribed manner.
Generally, loans are provided for a period of six months, one year, five month. Loans are
normally given for productive purpose i.e. agriculture operations. Loans are ordinarily given on
the personal securitized borrowers supported by personal securities of other member. Loans are
also given against mortgages. Loans given by these societies are given in for low rate of interest,
usually 4% p.a.
Presently banks have 6 branches, own office building, 6 own godown of100 tons capacity.
One -mini lorry to transport farms inputs and other materials at concessional rates. It has got its
own investment and avoids any loan from its sponsor bank and others.
No members are allowed to hold more than 20% of total number of share of the society. To
become the member should belong to the jurisdiction of the bank, should be 18 years or more
and must be a farmer, craftsman etc.
-It has power to hold property, the member are given more than 6 crores loan from different
branches of society.
Rythara Seva Sahakara Sangha Bank provides different type of loans:
I. Agricultural loans – crops loan

II. Loans provided by pledging jewellery.
III. Loans on insurance.
IV. Loans for purchasing tractors, power tillers.
V. Loans for small business.

VI. Housing loans.-

VII. Higher education loans.
VIII. Loans for buying home appliances/appliances etc..
IX. Solar heater system installation loans.
X. Self employment loans.
SHG loan:
Loan may be granted by the SHG for various purposes to its members. The bank does not
decide the purposes for which the SHG gives loans to its members. The purpose can be
emergency needs like illness in the family, marriage, etc. or buying of assets for income
generation acquisition of assets. The group will discuss and decide about the purpose for which
loans are to be given to its individual members by the SHG.
-Repayment
The SHG makes the repayment to the bank. (The group is collectively responsible for the
repayment of the loan.)
Home loans
Home loans, also known as mortgages, use the borrower's home for collateral. This home
can be a single-family house up to a four-unit property, as well as a condominium or cooperative
unit. Lenders fund home loans, but both the lenders themselves and brokers who act on behalf of
the lenders originate, or process, them.
Mortgage loan
Definition: A mortgage is an agreement to give up an interest in something if you fail to

perform some duty. In many cases, it means that you'll give up your home if you fail to repay
your home loan as agreed. You can use mortgage as a verb, meaning "to pledge".

Mortgage and "home loan" are often used interchangeably. However, the mortgage is really
the agreement that makes your home loan work -- the bank wouldn't lend you hundreds of
thousands of dollars unless they knew they could claim your home in the event of your default.
Education Loan'
Money borrowed to finance education or school related expenses. Payments are often
deferred while in school and for a six-month grace period after graduation. Sallie Mae is the
largest source of education loans and handles the two major types, the Stafford loan and the
Perkins loan. One of the major benefits of these types of loans is that they come with low interest
rates and do not require collateral.
Bankers of Rythara Seva Sahakara Sangha bank-
1. Syndicate bank.
2. Karnataka bank limited.
3. Allahabad bank.
4. Grain merchant cooperative bank.
5. Bharat cooperative bank.
6. Karnataka state apex bank.
Important Acts of Rythara seva Sahakara Sangha bank-
 Karnataka co-operative society act 1959

 Karnataka co-operative society Rules 1960
 Department of parliament affairs and legislation 2000
 By law of co-operative societies.

Board activity chart of Rythara seva sahakara sangha-

Planning
Organizing
Staffing
Directing
--
Controlling
 Planning
Planning is the first managerial function and it is concerned with deciding in
advance what is to be done. It is predetermined -course of action to achieving a specified
aim or goal.
 Organization
Organization is interpreted as a process of welding together a frame work of
position which can be used by management for the purpose of accomplishing the
enterprise goal.

 Staffing
Staffing is one of the managerial functions which are concerned with the assessment
of the manpower requirement.
 Directing
Directing is one of the managerial functions of the organisation directing to various
works to the various department of management. it is one of the important tool of the
organisation.
 Controlling
Controlling is process to find out whether action are being taken as planned and
taking corrective action to make them conform to plan and then to take the necessary
step to prevent the occurrence of variation in future.
Organization structure of Rythara seva sahakara sangha niyamitha-

Shareholders
-Directors
Manager
Staff

 Share holders-
A person who holds the share of a company is called the shareholder/ member of
the company. The capital of the company is usually divided into certain individual unit of
a fixed amount. These units are called share. Share means a definite portion of capital of
a company.
Share is the interest of shareholder in the company measured in sum of money.
Societies provide three types of shareholders namely:
„A‟ class shareholders – (farmers)
„B‟ class shareholders – (government)
„C‟ class shareholders – (individual)
 Directors
There are ten Board of Directors representatives from different departments.
Name of Board of Directors
 Vanishree
 N. Murthy
 S K Nagaraj reddy
 Thimmari gowda
 Padhmanaba shetty
 Chandru
 Sheshankar
 Janardhan pai
 Krishna batt
Social activities provided by RSSSN-

1. The yashaswini insurance premium of the members is borne by the society.
2. Arranged health check up camps to the people of the society.
3. Arranged health check up camps for dairy animals.
4. Arranged computer programs to the children‟s of the members.
5. Arranged yoga camps to the people and children‟s of village.

Future prospect/ growth-
 All the branches should become computerised with ATM facility

 Undertaking commercial activities-
 Increasing sales
 Becoming a RBI clearing member.

Audit, Enquiry & Inspection-

Audit-
Under rule 51, Rythara seva sahakara bank should keep accounts of books and register as
prescribed by register from time to time in case it fails to maintain and write the accounts up to
date as prescribed by registrar. He is given rules to direct the society to get through these
accounts. Auditor should audit the final accounts and other statements and they may direct
returns as within two months from the co-operative year.
Enquiry-
When irregularities, mismanagement etc.., occurs in the cooperative society the act prepare
for enquiry by registrar.
It is obligatory on registrar to hold this enquiry if an application received from any
cooperative society to which the society affiliated or by majority of the committee members of
the societies or by not less than half of the total number of members of the society.
Inspection-
Section 8(65), the act is provided for inspection of books or cooperative society to ascertain
their financial position and financial management. The registrar is empowered to pass an order to
conduct inspection of books of cooperative society through inspecting officers under the order.

Bank progress /Achievements of Rythara seva shakara sangha-
 Member borrowing limit increased from Rs.3to 10 lakhs
 Mobilizing various types of deposits from members on attractive rates of interest, higher
than the commercial bank rates.
 Organizing free basic/health checkup camps, eye checkup camps.
 Organizing animal health checkup camps.
 Sponsoring free basic computer education to members & their children.
 Organized free tailoring courses to women members and SHG members; encouraging for
self earning in rural areas.
 Made cash rewards to merit students in SSLC/PUC students (members children).
 Safe locker facility made available to members.
 Providing agriculture loans at 3% interest.
 Provide more than Rs.5 crores towards interest subsidy to farmers through state
government.
 Financial assistance by way of loans to self help groups (SHG) AT 45 interest subsidy.
 Donated Rs. 60000 towards north district of Karnataka flood relief fund and contributed
Rs. 1lakhs to construct a house for flood affected families.
 Bank has received “best performing society” award in the co-operative century
celebration held at Mysore on 26thJuly 2007.
 During co-operative week held in Bangalore in November 2007. Gave “best women
president” award to Mrs. Vanishree.
 During co-operative week held in Bangalore in November 2008 “best co-operative
president and secretary” award was presented to mrs.vanishree.
 State self help groups organization in the month of January 2010 recognized the excellent
work- of the bank president Mrs.vanishreevishwanath awarded the “sthri rathna”.
 Smt.vanishree vishwanath has been awarded “kithura rani chennamma” award presented
by women and child department-govt. of Karnataka for her social service.
 Rythara seva sahakara bank is honored as co-operative excellence award by national co-
operative development corporation -(NCDC) New Delhi On04-02-2011.

 Smt.vanishree vishwanath has been awarded as “Sahara rathna” by govt of Karnataka on

14-11-2011(co-operative week).
Some reasons for success of RSSSN-

o As a commercial banker they followed the policy and principal of banking in the
functioning of the society rather than a political built up as other societies are generally
following.
o Their developmental ideals and ideas impressed upon the, then Directors who also
followed the principal of banking and development of area.
o Highest cooperation among the members and the Directors in the affairs of the society is
appreciable.
o Good resource resulted in increased loaning and investment which is giving good yield
and the profit.
o Society‟s head office and branches are all computerized

CHAPTER-03
Research gap-
Review of Literature-
A review of literature is an evaluative report of information found in the literature related to

project selected area of study. The review should describe, summaries, evaluate and clarify the
literature. It should give a theoretical base for the research and help to determine the nature of
the research.
A literature review is more than the research for information, and goes beyond being a
descriptive annotated bibliography. All works included in the review must be read, evaluated and
analyzed.
Review of literature on cooperative agricultural advances-
DEO (1976)
In his study on problems of agricultural credit allocation, emphasized that the problem of
credit allocation in agriculture was immense and required adequate attention. He has suggested
that the financial experts, social scientists and team of bank personnel have to work together and
have to make micro level planning for expansion of credit.
Reference- -Deo, S. „Problems of agricultural advances‟ India, 1976, 39(7), pp 142-144.
SINGH (1976)
a case study on distribution and utilization of co-operative credit in Luck now district.
Regarding the amount of loan advanced to the farmers of different size groups, it was observed
that a major share of total advance went to large farmers. This study further shows that the large

size farmers utilized their borrowed money o greater extent for productive purpose as compared
to small farmers.
Reference- Singh G.N, „Distribution and utilization of cooperative advances‟, India cooperative
review 1976, 13(4) pp 397-411.
PANDEY (1977)
In his study found that loans were issued mostly without keeping in the mind repayment
capacity of the borrowers and were not properly supervised by the co-operative supervisors‟
resulting in the diversion of the loans for unproductive purpose and accumulation of over dues.
Reference- Pandey U.K, „Socio economic factor affecting the overdue of advances‟, Indian
cooperative review 1977, 14(1), pp 141-150.
BHATIA (1978)
In his study titled, “Banking structure and performance – A case study of in Indian
Banking system” attempted to analyze the economic performance of Indian banking system as
reflected by its output, price and profitability during the period 1950-68. He found that profit of
the Indian banking system during the said period had an upward trend. The study suggested
deregulation of interest rates to enhance the profitability of financial institutions and to ensure a
competitive banking environment which would ultimately result in better services.
Reference- Bhatia, R.C, Banking structure and performance 1978, 14(2), pp 414-152.
Report of All India Debt and Investment Survey (1981)
Revealed that non- institutional agencies accounted for 36.8 percent of the total credit
agriculture. Mo-neylenders, traders, landlords and other sources including relatives and friends
provided 16.9 percent, 3.4 percent, 4.0 percent and 14.5 percent of the total agricultural Credit

respectively. The institutional agencies provided 61.2 percent of the total credit needs of
agriculture. Co-operatives are the leaders, providing 28.6 percent of total credit to agriculture.
The share of Government in providing loans was only 4.6 percent.
Reference- RBI: All India Debt and Investment survey, 1981-82, Bombay, 1986.
SWIDHA and CHAND (1981)-
Analyzing the pattern of credit distribution and over dues, have found that there was
inverse relationship between the over dues and credit advanced to different farm categories. They
have further found that most of the small farmers were non-willful defaulters whereas most of
the medium and large farmers were willful defaulters. They have suggested that in order to
reduce the overdue of small farmers, their income should be increased through additional
investment by way of adoption of improved method of cultivation while the overdue of large
farm could be reduced by taking traction against them.
Reference-Swidha. D.S and Chand. R, „Distribution of agricultural advances and concentration

of overdoes‟, Financing in Agriculture, 1981, 13(2) pp 18-20.
LAL and LAVANIA (1986)
Have found that 78.18 percent of the total co-operative credit was utilized for productive and the
rest 21.82 percent for unproductive purposes. The credit utilization on unproductive purpose
decreased with the increase in farm size which indicated that large cultivators utilized the highest
percentage of credit for productive purposes.
Reference- Lal. R.C and Lavania. R.P, „Impact of the cooperative advances on agricultural
production and income‟, Indian Cooperative review, 1986, 23(3), pp 269-276.

VENKATESWARA et al (1987)
Had analyzed the over dues pattern in a progressive block of west Godavari district of
Andhra Pradesh. Their study revealed that over dues per holding increased with increase in farm
size while per hectare over dues decreased with increase in farm sizes.
Reference- Venkateshwara et al, over dues pattern in a progressive in AP, 1987.
RADHAKRISHNAN and MUKUNDAN (1988)
In their study on the supply and utilization of short-term co-operative Agricultural finance
in palghat district in Kerala reported that 52 percent of the loan amount was advanced in kind
(mainly fertilizer) and the balance in cash. An inverse relationship was found between the
amount of loan per hectare, on one hand and size of holding on the other; the smaller holdings
obtained relatively more amount of credit than larger holdings.
Reference- Radhakrishnan and Mukundan, „supply and utilization of short-term cooperative

agricultural advances‟, “Indian journal o-f Agricultural Economics”, 1988, 43(3), p, 429.
Research Gap-
Research Gap-
A research gap is defined as a topic or area for which missing or insufficient information
limits the ability to reach a conclusion for a question. A research need is defined as a gap that
limits the ability of decision makers (policy makers, patients, practitioners) from making
decisions.

-Main Findings of the literature reviewed-
 Agricultural advances play an important role in development of economy so, it has to

increase the employment opportunities by offering the advances to the farmers at the
low rate of interest.
 Private money lenders are still taking part in supplying of money to the small farmers
at high rate of interests
 Advances should be given to the farmers under the Kisan credit card schemes.
 Due to the money lenders influence and due to non institutional influence the rural
banks which provide agricultural advances to the farmer are dominated
 Formal financial institutions lack the capacity to finance agriculture and rural
development.
 There are certain problems which are facing by the banks at the end of delivering the
advances to the farmers like corruption among bank officials. Delay in distribution of
advances also contributes to that which makes the environment unfavourable.
 The political interference is also responsible for negatively impacting the working of
banks.
 It has also been concluded in the literature reviewed that resourceful farmer receives
the advances more easily than the small farmers for their requirements.
 The procedure of providing advances to the farmers should be in a simple manner, it
should not be a complicated one so that the farmers who are in need of it can procure
the advances easily.
although- various studies have been carried out to study the multi-dimensional aspects of
institutional financing of agriculture, But not many attempts have been made to study bank
financing of agriculture particularly in the state of Karnataka moreover, the problems faced by
the farmers of the state in getting the finance and the problems faced by the banks in the state of
Karnataka in delivery system have also not been yet highlighted by any study. Hence, the present
study titled „cooperative agricultural advances in Karnataka‟ has been undertaken.

The present study fills the gap of literature by evaluating the farmer‟s access to
agricultural advances and the impact of bank financing on the farmers in Karnataka. The study
further highlights the problems of farmers and bank in the process of distribution of credit for
agriculture.
Research Methodology-
Research-
The process of getting information for the purpose of initiating, modifying or terminating a
particular topic or group of investment.
Research Design-
Research design is a plan and structure of investigation so conceived has to obtain answers
to research questions. The plan is the overall scheme or program of the research. It includes an
outline of what the investigator will do from writing hypothesis and their operational
implications to the final analysis of data.
Research methodology-
Research methodology is a scientific and systematic way to solve research problems. The
methodology may differ from problem to problem. It deals with the research methods and takes
into consideration the logic behind the methods.
Objectives of the study-
 To study the objectives of advances.

 To study the position of various types of advances schemes offered.

 To analyse the growth of the Management.

 To study about the reasons those are contributing towards the growth of the advances.
 To study about the manner through which funds are raised by the society.
Scope of the study-
The scope of the study is confined to RYTHARA SEVA SAHAKARA SAGHA

NIYAMITHA in Singanayakanahalli. The study mainly involves the distribution of agricultural
advances to the farmers. The present study has been undertaken to explore some issues which are
related to the agricultural advances.
The study has focused on the quantum of advances in terms of various sources existing in
the state at present. It is with objectives to cover both institutional as well as non institutional
agencies -operating in the field of agricultural advance.
Data collection-
The study is based on primary and secondary data which is collected from both the sources.
Primary data collections are those which are collected for the first time. Primary data is collected
thorough short interviews with the branch manager.
Secondary data are those which are collected by someone other than the user. These are
known as secondary data.
The secondary data are collected from the secondary sources they are as follows,
o Journals.
o Magazines
o Newspapers.
o Annual reports
o Websites.

Limitations of the study-
 The study fully depends on the financial data collected from the published financial
statements of banks.
 Analysis of data was depending on the information supplied by the bank.
 -The study does not predict the future performance of the bank based on the past records.
 During the study, there was no comparison made to any other banks.

CHAPTER-04
Data analysis and interpretation-
Data analysis-
Data analysis it is the process of inspecting, transforming, and modelling the goal of
discovering useful information, suggesting conclusions, and supporting decision making.
Interpretation-
Interpretation which means it is a device through which the factors that seems to
explain what has been observed by researcher in the course of study can be better understood
and it also provides a theoretical conception which can serve as a guide for further
researchers.
 it is a systematic examination and evaluation of data or information, by breaking it

into its component parts to uncover their interrelationship.
 An examination of data an facts to uncover and understand cause effect relationships,
thus providing basis for problem solving and decision making.
The analysis and interpretation of financial statements are an attempt to determine

the significance and meaning of the financial statements data so that to forecast may be
made of the prospects for future earnings, ability to pay interest and debt maturities and
probability of a sound dividend policy.
Field work- method used for data collection-

Method used for data collection is questionnaire method which is known as primary
data collection method.
Questionnaire was prepared keeping the objective of research in the mind.

 Primary data collection method-

1 Education classification.
Type of respondents In Percentage

Illiterate 11.5-
High school 60
Degree 28.5
Analysis-
The above table shows that out of the 82 respondents 11.5% are of illiterate. 60% are of
high school. And 28.5% are of degree.
Graph showing educational classification on the basis of size of operation-
education qualification
illiterate
high school
degree
Interpretation-
The above pie chart shows about the education qualification of the respondents. It can be
understood that the respondents who have completed high school are high in number, when
compared to illiterate and degree

2. profession-
Type of respondents In percentage

govt employee 22.01
Self employee 48.62
Students 15
Others 14.37
Analysis
From the above table it shows that out of 82 respondents 22.01% are of govt employees,
48.62% are of self employees, 15% are of students and 14.37% are of others.
Graph showing profession-
profession
govt employee
self employee
students
others
Interpretation-
The above pie chart shows about the different profession of the respondents. It can be
understood that self employees are high in number when compared to govt employees, students
and other profession. So it is understood that more number of respondents are self employed.

2. Monthly income.
Types of respondents Percentage

Up to 15000 14.44
15000 to 30000 50-
30000 to 40000 26.06
40000 and above 9.5
Analysis-
From the above table it can be understood that 14.44% are respondents with 15000
monthly income, 50% are respondents with 15000 to 30000 monthly income, 26.06% are
respondents with 30000 to 40000 monthly income, and remaaining 9.5 % respondents monthly
income is 40000 nand above.
Graph showing monthly income of the espondents-
Monthly income
up to 15000
15000-30000
30000-40000
40000 and above
Interpretation-
The above pie chart shows about the monthly income of the respondents. It can be
understood that half of the respondents receive 15000-30000.

3. What is your basis of credit recovery?

Regular payers 63.9
Defaulters 36.1
Analysis-
Above table shows that credit recovery of 82 respondents. From the table it can be
understood that 63.9% respondents are of regular payers and remaining 36.1% are of defaulters.
It can be understood that regular payers are high in number.
Graph showing basis of credit recovery-
Basis of credit recovery
regular payer
defaulter
Interpretation-
The above pie chart shows about the basis of recovery of the respondents. It can be
understood that regular payers are high in number when compared to defaulters. So, it is
understood that more number of respondents regularly repay their loan amount.

4. Are you satisfied with the interest rates which were provided?

Satisfied 67.9
Unsatisfied 32.1
Analysis-
Above table shows about the satisfaction o interest rates of 82 respondents. From the table it
can be understood that 67.9% respondents are satisfied with the interest rate and remaining
32.1% are not satisfied with the interest rate.
Graph showing interest rate satisfaction-
Satisfaction of interest rate
satisified
not satisified
Interpretation-
The above pie chart shows about the satisfaction of interest rates by the respondents. By
seeing the chart It is understood that respondents who are satisfied with their interest rates are
high in number. So, it is understood that more than half of the respondents are satisfied with
interest rates of the bank.

5. Which loan did you avail in RSSSN bank?

Crop loan 41
Gold loan 18.1
Education loan 8.4
Other loan 32.5
Analysis-
Above table shows that availability of loan from RSSSN bank. From the table it can be
understood that 41% of respondents availed crop loan and 18.1% of respondent‟s availed gold
loan a, 8.4% of respondents availed education loan and 32.5% respondents availed other loan.
Graph showing loan that availed in RSSSN bank-
crop loan
gold loan
education loan
other loan
Interpretation-
Above pie chart shows that availability of loan from RSSSN bank. By seeing the chart It is
understood that respondents who availed crop loan in the bank are high. As it is understood that
bank provides more loan for the sake of crops.

6. Will you repay the loan amount?

Yes 88.1
No 11.9
Analysis-
Above table shows that repayable loan amount of respondents. From the table it can be
understood that 81.1% respondents will repay the loan amount and remaining 11.9% respondents
will not pay the loan amount.
Graph showing repaying the loan amoun-
Repayment of loan amount
yes
no
Interpretation-
The above pie chart shows about the repayment of loan amount by the respondents. By
seeing the chart It is understood that respondents who repay the loan amount are high. So, it is
understood that more than 3/4th of the respondents will repay the loan amount.

7. Is it the service of RSSSN is expensive for the consumer?

Strongly agree 25.8
Agree 48.3
Strongly disagree 14.8
Disagree 11.1
Analysis-
Above table shows about whether the service of RSSSN for the consumer is expensive or not.
From the table it can be understood that 25.8% respondents are strongly agree , 48,3% are of
respondents who agree ,14.8% of respondents who strongly disagree and remaining 11.1% of
respondents who disagree with the services of consumer..
Graph showing whether the sevices of consumer in RSSSN is expensive-
Services of RSSSN is expensive or

not
strongly agree
agree
strongly disagree
disagree
Interpretation-
The above pie chart shows about the respondents opinion on services of consumer in
RSSSN. By seeing the chart It is understood that respondents who agree that services are
consumer are high in number. So, it is understood that bank‟s services of consumer is high.

8. Did you utilise the loan amount for the purpose for which it was provided?

Yes 84
No 16
Analysis-
Above table shows that utilization of loan amount of 82 respondents. From the table it can be
understood that 84% respondents are utilized the loan amount for the purpose it was given and
remaining 16% are respondents who did not utilize the loan amount properly.
Graph showing utilization of purpose of loan taken-
Utilisation of loan amount
yes
no
Interpretation-
The above pie chart shows about the utilization of loan amount by the respondents. By
seeing the chart It is understood that more number of respondents have utilized their amount for
which it was provides when compared to respondents who have not utilized their loan amount
for the purpose of which it has given.

9. Farmer’s classification on the basis of size of operations.

Small farmers 32
--Large farmers 28-
Medium farmers 40
Analysis-
Above table shows that classification of farmers on the basis of size of operation. From the
table it can be understood that 32% respondents are of small farmers, 28% of respondents are
large farmers and remaining 40% of respondents are medium farmers.
Graph showing farmer’s classification on the basis of size of operation-
Farmer's classification
small farmers
large farmers
medium farmers
4th Qtr
Interpretation-
The above pie chart shows about the classification of farmers on the basis of operation-
By seeing the chart It is understood that more number of respondents are medium farmers when
compared to small farmers and large farmers. So, it is understood medium farmers are high in
number.

10. What are the reasons for availing loan RSSSN bank?

Low rate if interest 68.7
To start the activity 20.5
To get subsidy 6
-Unemployment 4.8
Analysis-
Above table shows about the reason for availing loan in RSSSN bank. From the table it can
be understood that 68.7% respondent‟s reason is that low rate of interest, 20.5 respondents
reason is to start the activity, 6% respondents reason is to get the subsidy and remaining 4.8%
respondents reason is unemployment.
Graph showing reason for availing the loan in RSSSN bank-
Reason for availing the loan
low rate of interest

to start the activity
to get subsidy
unemployment
Interpretation-
The above pie chart shows about the reason why the respondents availed loan in RSSSN
bank. By seeing the chart It is understood that respondents availed loan in rsssn bank because of
low rate of interest. So, it is understood that bank will provide low rate of interest for the
borrowers.

Table 4.1 showing on KKCC short term loan-
Year Amount [in Rs] In percentage

2014 38256500 20.16
2015 46860500 25.24
2016 50168500 27.16
2017 50078500 27.01
Analysis-
From the above table it is analyzed that the loan amount in the year 2014 the amount was
38256500 which shows 20.16%. In the year 2015 the amount was 46860500 which show
25.24%. In the year 2016 the amount was 50168500 which shows 27.16% and in the year 2017
the amount was 50078500 which shows 27.01%
Graph 4.1 showing KKCC short term loan
60000000
50000000
40000000
30000000 amount [in Rs]
20000000 in percentage
10000000 year
0
2013-14 2014-15
2015-16
2016-17
Interpretation
The above bar diagram shows about short term loan. From the above graph it can be seen
that the loan amount is been increasing from one year to another. The loan lent by the bank in the
current year has been increased. So that bank is performing well from past 2 years.

Table 4.2 showing on medium term loans-
Year Amount In percentage

2013-14 59905422 24.20
2104-15 59765559 24.15
2015-16 63360359 25.60
2016-17 64418005 26.03
Analysis--
59905422 which shows 15.6%. In the year 2015 the amount was 59765559 which shows
24.15%. In the year 2016 the amount was 63360359 which shows 25.60% and the year 2017 the
amount was 64418005 which shows the percentage of 26.03%
Graph 4.2 showing medium term loans [agricultural loans]-
2016-17
2015-16
year
2014-15 in percentage
amount [in rs]
2013-14
0
50000000
10000000
Interpretation,
The above bar diagram shows about medium term loans provided by the bank. From the
above graph it can be seen that the loan medium term loan amount has been increasing when
compared to other three years. So it is understood that loan lent by the bank in the current year
has been increased.

Table 4.3 showing medium term loans [non agricultural loans]-
-Year Amount [in Rs] In percentage

2013-14 49408325 23.82
2-104-15 68108475 32.84
2015-16 79013135 38.09
2--016-17 78167239 37.70
Analysis-
32.84%. In the year 2016 the amount was 70913135 which shows 38.09% and In the year 2017
the amount was 78167239 which shows the percentage of 37.70%
Graph 4.3 showing medium term non agricultural loan
80000000
60000000
40000000 amount[in Rs]
year
0
2013-14 2014-15
2015-16
2016-17
Interpretation,
The above graph shows about medium term non agricultural loan. From the above graph it
can be seen that the loan amount is been increasing from one year to another. The loan lent by
the bank in the previous year has been increased when compared to current year.

Table 4.4 showing jewel loan-

2013-14 423772373 32.02
2014-15 433003419 32.71
2015-16 466590351 35.25
2016-17 Nil Nil
Analysis-
From the above table it is analyzed that loan amount in the year 2014 the amount was
32.71%. In the year 2016 the amount was 466590351 which shows 35.25% and in the year 2017
the amount was nil.
Graph 4.4 showing jewel loans-
50000000
40000000
30000000
20000000 amount in Rs
year
0 year
amount in Rs
Interpretation-
The above bar diagram shows about jewel loan. From the above graph it can be understood
that the loan amount has been increased in the past year. The loan lent by the bank in the current
year is nil. So that it is understood that bank has not provided any loans regarding to jewel loans

Table 4.5 showing on secured loans-
It is a loan which is backed by assets belonging to the borrower in order to decrease the risk
assumed by the lender. The asset may be forfeited to the lender if the borrower fails to make the
necessary payments.-

2013-14 834321 27.59
20-14-15 957788 31.64
2-005-16 621212 20.54
2016-17 610853 20.20
Analysis-
834321 which shows 27.59%. In the year 2015 the amount was 957788 which shows 31.64%. in
the year 2016 the amount was 621212 which shows 20.54% and in the year 2017 the amount was
601853 which shows the percentage of 20.20%
Graph 4.5 showing secured loans
2016-17
2015-16
year
2014-15
in percentage
2013-14 amount in Rs
0
500000
1000000
--
Interpretation-
The above bar diagram shows about secured loans. From the above graph it can be seen
that the loan amount has been increased in the past year when compared to current year. The loan
lent by the bank in the current year has been decreased. So that bank has provided high loan
amount for the sake of secured loans in the previous year.

Table 4.6 showing loans on deposit-

2013-14 22115077 20.97
20-14-15 38707352 36.71
2015-16 25196424 23.9
2016-17 19426186- 18.42
Analysis--
From the above table it is analyzed that the loan amount in the year 2014, the amount was
22115077 which show 20.97%. In the year 2015 the amount was 38707352 which show 36.71%.
In the year 2016 the amount was 25196424 which show 23.9% and in the year 2017 the amount
was 19426186 which was the percentage of 18.42%.
Graph 4.6 showing loans on deposits-
40000000
35000000
30000000
25000000
20000000 amount in Rs
10000000
5000000 year
0
2013-14 2014-15
2015-16
2016-17
Interpretation-
The above bar diagram shows about loans on deposit. From the above graph it can be seen
that the loan amount is been decreasing from one year to another. The loan lent by the bank in
the current year has been decreased.

Table 4.7 showing on SHG loans-

2013-14 71669000 27.23
2014-15 65837794 25.02
2-015-16 71592326 27.21
2016-17 54056665 20.54
Analysis-
From the above table it is analyzed that the loan amount in the year 2014, the amount was
7166900 which shows 27.23%. In the year 2015 the amount was 65837794 which show 25.02%.
In the year 2016 the amount was 71592326 which shows 27.21% and in the year 2017 the
amount was 54056665 which shows the percentage of 20.54%
Graph 4.7 showing SHG loan-
2016-17
2015-16
year
2014-15
in percentage
0
50000000
10000000
-
Interpretation-
The above bar diagram shows about SHG loan of the bank. From the above graph it can
be seen that the loan amount is been increased when compared to previous year. The loan lent by
the bank for self help groups in the current year has been increased. So that bank has provided
high amount of loan for SHG in the current year.

Table 4.8 showing farm housing loan-

2013-14 9922373 26.01
2014-15 8809296 23.10
2015-16 8331119 21.84
2016-17 11078536 29.05
Analysis-
9922373 which shows 26.01%. In the year 2015 the amount was 8809296 which shows 23.10%.
In the year 2016 the amount was 8331119 which shows 21.84% and in the year 2017 the amount
-was 11078536 which shows the percentage of 29.05%.
Graph 4.8 showing farm housing loan-
12000000
10000000
8000000
6000000
amount in Rs
4000000
0 year
Interpretation-
The above bar diagram shows about farm housing loan provided by the bank. From the
above graph it can be seen that the loan amount is been increased in the current year when
compared to previous year. The loan lent by the bank in the current year has been increased. So
that bank is lending high loan amount for the sake of farm house to the farmers.
Table 4.9 showing education loan-

2013-14 1506179 44.73
2014-15 857497 25.47
2015-16 541301 16.08
2016-17 462271 13.73
Analysis-
From the above table it is analyzed that loan amount in the year 2014 the amount was
1506179. In the year 2015 the amount was 857497. In the year 2016 and 2017 the amount was
541301 and 462271. Which means loan amount is decreasing from one year to another.
Graph 4.9 showing education loans-
1600000
1400000
1200000
1000000
800000 amount in Rs
400000
year
200000
0
2013-14 2014-15
2015-16
2016-17
Interpretation-
The above bar diagram shows about education loan. From the above graph it can be seen
that the loan amount for education is been decreasing from one year to another. The loan lent by
the bank in the current year has been decreased when compared to past two years. So the bank is
lending less 1loan amount for the purpose of education.

Table 4.10 showing mortgage loan-

2013-14 23529068 15.24
2014-15 31422640 20.34
2015-16 42897714 27.78
2016-17 56581830 36.64
Analysis-
From the above table it is analyzed that when we compare in the year 2014 the amount
was 23529068. In the year 2015 the amount was 31422640. In the year 2016 the amount was
42897714 and In the year 2017 the amount was 56581830. It has been decreased.
Graph 4.10 showing mortgage loans-
2016-17
2015-16
year
2014-15 in percentage
0
20000000
40000000
60000000
Interpretation-
The above bar diagram shows about mortgage loan. From the above graph it can be seen
that the loan amount is been decreasing from one year to another. The loan lent by the bank in
the current year has been decreased when compared to past three years. So it is understood that
loan amount lent as a mortgage loan is been decreased by the bank.

CHAPTER-05
Finding, suggestions and conclusion-
Findings-
On the analysis of financial statement of Rythara Seva Sahakara Sangha Niyamitha for the year
from 2013 to 2017 it is analyzed or recorded as follows-
 The loans on deposits have been decreased from one year to another year this shows that
popularity of bank is coming down and there is no proper stability of bank finance.
 The coordination between members of the bank and the organization is good. Which
helps for smooth functioning of the organization.
 It can also be seen that there is a fluctuation in liquidity position of the bank or the
society.
 Earnings per share of the bank or organisaton have been increased from one year to
another year.
 The banks have several scheme of advancing more to the small scale industries. However
the producer to advancing more to small scale industries very complicated, time
consuming and also it is a lengthy procedure.
 The banks have been increased the loan amount from one year to another, which is
understood that there is a high financial transactions in the bank.
 The net profit in the year 2016 and 2017 has been increased which tells about stabilized
bank activity.

Suggestions-
 A bank must improve their methods of collecting bills receivable from their debtors.
 Fixed assets which are used by the bank for a longer period of time should charge less
depreciation in order increase the value of fixed assets.
 Bank should maintain the positive growth in the aspects in future, which also helps for
future growth.
 Bank should continue to maintain its overall profitability positions in order to retain their
current investors and to attract potential investors.
 Bank should also utilize cash resources to the extent so that has to avoid trading or over
trading.
 The bank should achieve their targets by utilizing both current assets as well as current
liabilities.
 Bank should minimize the borrowings to avoid risk of dead burden.
 RSSSN bank should plan to introduce new schemes for attracting customers and for
satisfying present one.
 Bank should follow flexible credit scheme in the organization.

Conclusion-
A study of financial performance analysis of Rythara Seva Sahakara Sangha Niyamitha

bank has been undertaken with the objectives to analyze and interpret the bank‟s financial
performances. The analysis of bank was undertaken using various tools and techniques like
financial statements like balance sheets, profit and loss account, trading account etc,
The bank or the society on the whole enjoys high liquidity and long term solvency. It is
able to meet the short term obligations in time, and the bank is able to manage its day to day
operations as well. The efficiency in utilizing the working capital is also good. The realization of
debtors is also high in the bank. The fixed assets are utilized well in the bank. There was a
constant fluctuation in the level of current assets and current liabilities.
The bank is able to maintain its standard of current assets and current liabilities and can
maintain the liquidity position of the society. The conclusion that can be drawn is company has
strength of meeting the maturing current liabilities.
Learning outcome-
The research made on cooperative agricultural advances at rsssn has helped me to know
about different types of loans and advances that bank offers to the customer, I also understood
about the procedure of granting loans and advances. it made me to know about interest rates that
bank will take with the borrowers. Rsssn bank provides low rate of interest to the farmers which
help them to borrow loan and repay it back.

BIBLIOGRAPHY-
TEXT BOOK: Agricultural finance

Ghosel.S.N (1999)
Desai.S.S.M (1990)
JOURNALS AND MAGAZINES-
 Company profile and brochures.

 Bank brochures and balance sheet.
SEARCH ENGINE-
www.google.com
 www.economicsdiscussion.net
 Sahakara.kar.gov.in
 https://books,google.co.in
 www.bankbazaar.com
 Rsssncoop.com
 http://en.m.wikipedia,org
 http://m.finweb.com
 Shodhganga.inflibnet.ac.in

ANNEXURE-
Balance sheet as on 31-03- 2016
SL. LIABILITIES AMOUNT SL. ASSETS AMOUNT

NO NO
Paid up share capital 1. Cash on hand
A members share Singanayakanahalli 12502149.33
capital
„A‟ class share Yelahanka 2899868.00
„C‟ class share Rajanukunte 330689.67
Chikkabettaghalli 492902.25
2. Reserve fund Kogilu 777841.92
Other funds Marasandra 926998.59
D.R.D.S risk fund 126840.63
Building fund 63986934.49 2. Bank accounts
Bad debts reserve fund 16677914.00 c/a with syndicate 13063169.27
bank
Charitable fund 9472968.00 SB in BD BRDCC 12625.00
bank ltd
Profit equalization 5424634.00 c/a with SBM 2649463.01
fund
Capital redemption 8259048.00
fund
Staff welfare fund 5304275.00 3. Deposits in other
banks
Members death 4403667.00 Deposit in syndicate 48996900.00
relief fund bank reserve fund
Price fluctuation fund 4522721.00 VCC in syndicate bank 83822427.00

Staff pension fund 1557616.00 FD in corporation bank 44568713.78

Common good fund 3954153.00 K S co-op apex bank 332144678.00
ltd
Tumkur grain 65964271.00
merchant coop bank
3. Deposits FD in TAPCMS ltd 3026900.00
Savings bank a/c #### FD in bharath coop 100000.00
bank ltd
DCC deposits #### FD in Allahabad bank 39985785.00
AVH
Fixed deposits #### FD in BD BRDCC 6474127.00
bank
Monthly deposit 2654714.00 FD in SBM 87446884.00
Nithaya nidhi deposits 62237726.00 Deposits in other
companies
Matured deposits 39160237.40 Coramandal fertilizer 545000.00
ltd
NND matured deposits 665580.00 Madras fertilizer ltd 2612327.39
RFC ltd deposits 6388.00
Luxuries tax deposits 10000.00
SPIC ltd deposits 500000.00
BSNL deposits 2995.00
SB dorments a/c #### Zuari industries ltd 400000.00
Indian postash ltd 50000.0
4. Interest on deposit Staff gratuity fund 1000.00
provision trust
Int on deposits payable 5821123.00 KPTCL 9390.00
KEB 68140.00
Green star fertilizers 100000.00
5. OBC account 11090031.00 Shares in other

institutions
6. Subsidies (members) IFFCO ltd 2501000.00

Social welfare dept 45430.00 KRIBHCO ltd 5010000.00
S.C.S.T corpn 5000.00 BDCC bank 20000.00
SGSY subsidy 15218.00 Hindusthan petro 43034.00
chemicals ltd
Self employment 2101500.00 TAPCMS ltd 5000.00
subsidy
SCP co-op.dept 9500.00 HOPCOMS 500.00
SCP DRDS subsidy #### IPC ltd 17000.00
SCP ADH.dept 29734.00
5. Movable properties
7. Other liabilities RSB marasandra
properties
Members share 107270.00 Furnitures 353950.00
suspense
General other 2182889.60 Generator 680000.00
liabilities
Cattle insurance 15905.00 Pumpset 293709.00
payable
Election deposits 13000.00 Transformer 765576.00
Jewel appraisal fee 77448.00 Solar equipment 136000.00
Rent advance payable 320400.00 Building interior 7857394.00
decoration 213237.00
Electronic equipment
Rytha sahakara 63750.00 Movable and
bhavana immovable properties
- Yashaswini health 115196.60 Furnitures 416838.19
insurance

TDS payable 3020.00 Building interior 1728093.62

Natural calamities 6035.00 decoration
fund
Safe locker 3786093.62
8. Staff account Electronics and
computers
Staff EDF backing 724712.00 Electronic implements 394861.77
Staff security deposits 7199646.00 Counting machine 158356.38
Computer hardware 257797.11
9. Interest due from Computer software 2.00
GOVT
Int subsidy from state 7603286.00 Generator 1.00
Govt Xerox machine 107092.00
Int subsidy from 1579916.00 Air conditions 38007.00
NABARD
Equipment
10. Sundry creditors Agricultural 1.00
implements
Trencher 1423.92
11. Misappropriation Vehicles
KGL BR.1996-97 #### Mini lorry 1.00
Four wheeler 59104.20
1-2. Provisions Two wheeler 54869.46
Election expenses 698632.00 Immovable
properties
Audit fee 355936.00 Site 3089875.00
Stale goods 237747.00 Building 5684344.74
Dep on share 60034.00 Marasandra RSB
investment suspenses
Yeshasswini health 487257.00 Advances paid 46422887.00

insurance building contract

GBM expenses 1000000.00
provision
Income tax payment 350000.00 6. Members loans
provision
March 2014 salary 150000.00 KKCC 50168500.00
provision
NND interest 1151382.00 Medium term 63360359.00
provision agricultural loans
NPA provision 580000.00 Medium term non 79013135.00
agricultural loans
Staff leave encashment 917897.00 Jewel loans 466590351.00
provision
NND agent gratuity 5451887.10 Secured loans 621212.00
provision
Staff exgratia 1682876.00 Loans on deposits 25196424.00
provision
NPA provision 12980686.95
SHG loans 71562326.00
13. 2014-15 net profit 36157894.98 Housing loans 8331119.00
Education loans 541301.00
Mortgage loans 42897714.00
Weavers loans 414259.00
Swa-udyogini loan 146019.00
Pashu bhagya loan 1800000.00
7. Staff loans and

advances
Staff loans 385371.00
Advances 49500.00

8. Sundry debtors 66738.00
9.. Business advances

EID parry ltd 250.00
RCF ltd 150000.00
SPIC ltd 10000.00
MCF ltd 2000.00
ZUVARI industries ltd 5000.00
PWD deposit
1000.00
10. Other assets

Suspense assets 662805.50
EP and court cost 24721.00
Building rent advances 69460.00
KPTCL Yelahanka 6200.00
Deposits in BSNL 6200.00
. Ragi purchase from ####
farmers
Transfer suspense 12360.00
account
11. Interest due from

govt
Int subsidy from state 10699513.00
govt
int subsidy from 937941.00
NABARD

12. Closing stock

Fertilizer, pesticides, 13483660.18
food grains and gunny
bags other goods
TOTAL 1655844091.74 TOTAL 1655844091.74
Balance sheet as on 31-03- 2017
SL. LIABILITIES AMOUNT SL. ASSETS AMOUNT

NO NO
Paid up share capital 1. Cash on hand
A members share Singanayakanahalli 6026154.48
capital
„A‟ class share 28084041.00 Yelahanka 1648078.00
„C‟ class share 5628293.00.00 Rajanukunte 152421.67
Chikkabettaghalli 326698.25
2. Reserve fund Kogilu 446300.92
Other funds Marasandra 496304.40
D.R.D.S risk fund 126840.63
Building fund 78282724.47 2. Bank accounts
Bad debts reserve fund 19655641.00 c/a with syndicate 5818633.01
bank
Charitable fund 11679280.00 SB in BD BRDCC 914781.00
bank ltd
Profit equalization 5424634.00 c/a with apex bank 95748.00
fund c/a with SBM 4088084.39
Capita-l redemption 9797981.00

fund
Staff welfare fund 6625958.00 3. Deposits in other
banks
Members death 5349182.00 Deposit in syndicate 48996900.00
relief fund bank reserve fund
Price fluctuation fund 5633784.00 VCC in syndicate bank 87174552.81
Staff pension fund 2457577.00 FD in corporation bank 61148155.32
Common good fund 4954110.00 K S co-op apex bank 122253699.00
ltd
Tumkur grain 3328175.00
merchant coop bank
3. Deposits FD in TAPCMS ltd 100000.00
Savings bank a/c 449379864.38 FD in bharath coop 5990775.00
bank ltd
DCC deposits 273636968.00 FD in Allahabad bank 42204352.00
AVH
Fixed deposits 599488587.00 FD in BD BRDCC 7075923.00
bank
Monthly deposit 3091664.00 FD in SBM 117487636.00
Nithaya nidhi deposits 64221388.00 Deposits in other
companies
Matured deposits 55780069.40 Coramandal fertilizer 545000.00
ltd
NND matured deposits 665580.00 Madras fertilizer ltd 2672947.39
SB dorments a/c #### Zuari industries ltd 400000.00
Indian postash ltd 50000.00
4. Interest on deposit Staff gratuity fund 1000.00
provision trust
Int on deposits payable 7394201.00 KPTCL ####
Green star fertilizers 100000.00

5. OBC account 1535897.00 Shares in other

institutions
6. Subsidies (members) IFFCO ltd 2501000.00

Social welfare dept 45430.00 KRIBHCO ltd 5010000.00
S.C.S.T corpn 5000.00 BDCC bank 20000.00
SGSY subsidy 15218.000 Hindusthan petro 43034.00
chemicals ltd
Self employment 3685500.00 TAPCMS ltd 5000.00
subsidy
SCP co-op.dept 9500.00 HOPCOMS 500.00
SCP DRDS subsidy #### IPC ltd 17000.00
SCP ADH.dept 29734.00
5. Movable properties
7. Other liabilities RSB marasandra
properties
Members share 76970.00 Furnitures ####
suspense
General other 787986.10 Generator ####
liabilities
Cattle insurance 19967.00 Pumpset ####
payable
Election deposits 57421.00 Transformer ####
Jewel appraisal fee 100000.00 Solar equipment ####
Rent advance payable 3160.00 KPTCL advance ####
Rytha sahakara 59307.60 Movable and
bhavana immovable properties
Yashaswini health 3040.00 Furnitures 438082.19
insurance
TDS payable 500.00 Building interior 1555284.62

decoration
Safe locker 321823.80
8. Staff account Electronics and
computers
Staff EDF backing 764919.00 Electronic implements 467889.77
Staff security deposits 7271693.00 Counting machine 134603.38
Computer hardware 103119.11
9. Interest due from Computer software 111061.00
GOVT
Int subsidy from state 177409.00 Generator 1.00
Govt Xerox machine 91028.00
Int subsidy from #### Air conditions 30406.00
NABARD
Equipment
10. Sundry creditors #### Agricultural 1.00
implements
Trencher 1209.92
11. Misappropriation Vehicles
KGL BR.1996-97 #### Mini lorry 1.00
Four wheeler 50238.20
12. Provisions Two wheeler 26444.46
Election expenses 898632.50 Immovable
properties
Audit fee 395936.000 Site 9253176.00
Stale goods 109812.10 Building 5115910.74
Dep on share 60034.00 Marasandra RSB
investment suspenses
Yeshasswini health 465736.00 Advances paid ####
insurance building contract
GBM expenses 989886.00

provision 350000.00
VAT provision
Income tax payment 100000.00 6. Members loans
provision
March 2017 salary 1221458.00 KKCC 50078500.00
provision
NND interest 580000.00 Medium term 64418005.00
provision agricultural loans
NPA provision 1778693.00 Medium term non 78167239.00
agricultural loans
Staff leave encashment 5039099.93 Jewel loans 408232771.00
provision
NND agent gratuity 897871.00 Secured loans 610853.00
provision
Staff exgratia 1778693.00 Loans on deposits 19426186.00
provision
SHG loans 54056665.00
13. 2015-16 net profit 28807731.48 Housing loans 11078536.00
Education loans 462271.00
Mortgage loans 56581830.00
Weavers loans 479028.00
Swa-udyogini loan 4148106.00
Pashu bhagya loan 400000.00
7. Staff loans and

advances
Staff loans 3903821.00
Advances 46000.00
8. Sundry debtors 619614.16

9.. Business advances

EID parry ltd 250.00
RCF ltd 150000.00
SPIC ltd 10000.00
MCF ltd 2000.00
ZUVARI industries ltd 5000.00
10. Other assets

Suspense assets 1730959.50
EP and court cost 24721.000
Profit allocation 10000.00
account 3180.00
KPTCL Yelahanka 146990.00
Deposits in BSNL 6200.00
. Election deposit 1485.00
TDS payable 14616.00
Deposits in PWD 1000.00
bangalore
11. Interest due from

govt
govt
govt contra
int subsidy from 1121631.00
NABARD
12. Closing stock

Fertilizer, pesticides, 16245140.60

food grains and gunny
bags other goods
TOTAL 1774719282.22 TOTAL 1774719282.22
Questionnaire-
1) Education classification
o Illiterate
o High school
o Degree
2) Profession
o Govt employee
o Self employee
o Students
o Others
3) Monthly income
o Up to 15000
o 15000 to 30000
o 30000 to 40000
o 40000 and above
4) What is your basis of recovery?

o Regular payers
o Defaulters

5) Are you satisfied with the interest rates which were provided?
o Satisfied
o Dissatisfied
6) Which loan did you avail in RSSSN bank?

o Crop loan
o Gold loan
o Education loan
o Other loan
7) Will you repay the loan amount?

o Yes
o No
8) Is the services of RSSSN is expensive for consumer?

o Strongly agree
o Agree
o Strongly disagree
o Disagree
9) Did you utilize the loan amount for the purpose for which it was provided?
o Yes
o No
10) Farmer‟s classification on the basis of size of operation

o Small farmers
o Large farmers
o Medium farmers


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“A STUDY ON COOPERATIVE AGRICULTURAL ADVANCES”

UNDER THE GUIDANCE OF

RUKMINI KNOWLEDGE PARK, KATTIGENHALLI

(Signature of the candidate)

Signature of Guide Signature of Director of School

Date: ……….. Date: ………..

Official Seal of the School

This is a matter of pleasure for me to acknowledge my deep sense of gratitude to REVA

CHAPTER-01 INTRODUCTION 1-17

CHAPTER-02 COMPANY HISTORY AND PROFILE 18-30

CHAPTER-03 RESEARCH DESIGN 31-38

CHAPTER-04 DATA ANALYSIS AND INTERPRETATION 39-60

In India a multi-agency approach comprising co-operative banks, scheduled commercial

Accounting is a language of business. It is the system of recording, summarizing and

Accountants must present an organization‟s financial information in clear, concise reports

All business organizations work in an ever-changing dynamic environment. Any new

Development of accounting discipline-

REVA UNIVERSITY, SCHOOL OF COMMERCE Page 1

REVA UNIVERSITY, SCHOOL OF COMMERCE Page 2

Formation of cooperative society-

Features of cooperative society-

REVA UNIVERSITY, SCHOOL OF COMMERCE Page 3

6. Equal voting rights-

Types of cooperative bank-

● Primary cooperative credit society-

● Central cooperative banks-

● State cooperative bank-

REVA UNIVERSITY, SCHOOL OF COMMERCE Page 4

 Land development bank-

● Urban cooperative bank-

Introduction to the topic-

Cooperative agriculture advances-

Features of cooperative agriculture-

REVA UNIVERSITY, SCHOOL OF COMMERCE Page 5

 Short term credit-

 Long term credit-

REVA UNIVERSITY, SCHOOL OF COMMERCE Page 6

Types of Cooperative agricultural bank in India-

1. National bank for agricultural and rural development(NABARD)-

2. Bihar state cooperative bank limited(BSCB)-

3. Haryana state cooperative Apex bank limited-

4. National federation of state cooperative banks limited(NAFSCOB)-

REVA UNIVERSITY, SCHOOL OF COMMERCE Page 7

5. Orissa state cooperative bank limited(OSCB)-

6. Repatriates cooperative finance and development bank limited-

7. Punjab state cooperative agriculture development bank ltd

Scheme for agricultural finance-

REVA UNIVERSITY, SCHOOL OF COMMERCE Page 8

REVA UNIVERSITY, SCHOOL OF COMMERCE Page 9

3) Loan for estate purchase-

4) Scheme for cultivation of medicinal plants-

REVA UNIVERSITY, SCHOOL OF COMMERCE Page 10

NABARD (National Bank for Agriculture and Rural Development)-

NABARD is an apex development financial institution in India, Headquartered at Mumbai

 Headquarters- Mumbai, Maharashtra, India.

REVA UNIVERSITY, SCHOOL OF COMMERCE Page 11

Types of agricultural advances-

REVA UNIVERSITY, SCHOOL OF COMMERCE Page 12

1. Farm storage facilities advances-

2. Farm operating advances-

Operating loans assist farmers in day-to-day needs or expansion requirements; they

3. farm ownership advances-

4. Fishers finance program advances