PROJECT REPORT

ON
WORKING OF PATIALA CENTRAL COOPERATIVE BANK LTD PATIALA (PUNJAB) Submitted in partial fulfillment of the requirement for the Degree of BACHULAR OF BUSINESS ADMINISTRATION

(2008 - 2011)
Under the supervision of Sh, Rakesh Kumar Goyal, Senior Manager Submitted by: KANWARPAL SINGH Roll No: 307 BBA-3rd Year

ACKNOWLEGEMENT On completion of my project work I want to thank all the employees of The Patiala Central Cooperative Bank Ltd. Patiala for their Co-operation in successfully completion of the project work on P.C.C.B Patiala. I want to thank particularly Sh.Rakesh Kumar Goyal Senior Manager, The Patiala Central Cooperative Bank Ltd., Patiala for giving me the actual knowledge about the successful banking & giving me time out of this precious time. I am also very thankful to the other employees who gave me support in completion of my project. Roll.No.307 BBA- 3rd Year

BANK In simple words a Bank refers to an Institution that deals in money & credit. Banks are the main center of business & commerce. Banks kept important role in the economic condition of all the countries of the world. The word Bank comes from the word Banc us or Banque which mean is Bench. In the words of kindly, Bank is an Establishment that make such advances of money or other means of use. According to Banking regulation act 1949, For the purpose of lending or investment, accepting of deposits of money from the public, repayable on demand on otherwise and withdraw by cheque, draft, order or otherwise. FUNCTIONS OF A BANK A tree is known by its fruits as well as Banks known by his works. Banks have done so many other important functions instead of depositing & lending money. Banks functions are divided into two parts: Primary & Banks function Secondary & helping function PRIMARY FUNCTIONS Depositing Money Lending Money DEPOSITING MONEY: - Its deposited by three ways for opening a: MONEY: Fixed deposit a/c Saving deposit a/c Current deposit a/c LENDING MONEY: - Money lending to needy person in following ways: - Bank MONEY: gave loans to customers of bank in following ways: Loans Cash credit Overdrafts Purchasing & discounting of bills. payments as may be required and safety made to which individuals interest money or means of payments when not required by them for

SECONDARY FUNCTIONS Agency functions Utility functions AGENCY FUNCTIONS : - Banks done many work to his customer as an agent. These are as follows: Collection of cheques, bills & interest etc. Payment of Insurance premium other Installments. Purchase & sale of securities. Transfer of funds Acting as a trustee, executor or attorney. UTILITY SERVICE : - Bank gave services to society. Its those services are as follows: Safe custody of valuables securities. Issuing letter of credit, travelers cheques. Accepting Bill of Exchange. Providing Trade information. Dealing in foreign exchange. Advice on financial matters. Giving information about credit worthiness of customers Financing foreign trade Credit creation Underwriting of capital issues & loans. IMPORTANCE OF A BANK SAFETY OF MONEY: The money with the bank remains in safe custody there is always risk in keeping cash with ones own self. It may be lost or stolen. Business man like to keep money with a bank to avoid risks of money the customer need not keep large some of money.

IT

CULTIVATES HABIT OF SAVING: Banks cultivates the habit of saving in the Bank on the one hand are safe and on the other earned interest for the depositor who prompted to safe and deposit money in their banks accounts. HELP TO CUSTOMER: Banks allows overdraft facilities to their customer so whenever a customer needs money he can even withdraw more money then the balance in his account. Bank also grants loans and credit facilities to their customers. SAFE CUSTODY OF VALUABLE ARTICLES : Valuable articles deals security etc. can also be deposited in the bank for safe FINANCIAL

custody. valuables.

Safe

deposit

vaults

are

provided by bank for storing these OTHER

INFORMATION: By opening an account with a bank, the customers may also take advantages of various other services providing by the banks, such a purchase and sale of securities, travelers cheque etc. RELATIONSHIP BETWEEN BANKER & CUSTOMER Instead of secondary functions banks gave some other important services to his customers. The main function of banker & customer is as Debtor & Creditor. Banker works as an agent & also a trustee of his customer. KINDS OF BANKS Commercial Banks Industrial Banks

Agricultural Banks Exchange Banks Post office saving bank Indigenous Bankers Regional Rural Bank Import export Banks National Bank to Agriculture State Bank of India Reserve Bank of India

& Rural Development (NABARD)

ORIGIN AND GROWTH OF CO-OPERATIVE BANKS Co-operative banks are a part of the vast and powerful superstructure of cooperative institutions which are engaged in the tasks of production, processing, marketing, distribution, servicing and Banking in India. The beginning of cooperative banking in this country dates back to about 1904 when official efforts were initiated to create a new type of institution based on the principles of Cooperative organization and management which were considered to be suitable for solving the problems peculiar to Indian conditions. In rural areas, as far as agricultural and related activities were concerned, the supply of credit, particularly institutional credit, was woefully inadequate, and unorganized money market agencies, such as money lenders, were providing credit often at exploitatively high rates of interest. The co-operative banks were conceived in order to substitute such agencies, provide adequate short-term and long-term institutional credit at

reasonable rates of interest, and to bring about integration of the unorganized and organized segments of the Indian money market. When the national economic planning began in India, co-operative banks were made an integral part of the institutional framework of community development and extension services, which was assigned the important role of delivering the fruits of economic planning at grassroots levels. In other words, they became a part of the arrangements for decentralized plan formulation and implementation for the purpose of rural development in general and agricultural development in particular. Today cooperative banks continue to be part of a set of institutions which are engaged in financing rural and agricultural development. This set-up comprises the RBI, NABARD, commercial banks, regional rural banks, and co-operative banks. The relative importance of co-operative banks in financing agricultural and rural development has undergone some changes over the years. Till 1969, they increasingly substituted the informal sector lenders. After the nationalization of banks and the creation of RBI and NABARD, however, their relative share has somewhat declined. All the institutional Sources contributed about 4 percent of the total rural credit till 1954. The contribution increased to 62 percent by 1990. The share of co-operative banks in this institutional lending has declined from 80 percent in 1969 to about 42 percent at present. The percentage of rural population covered by the agricultural credit co-operatives was 7.8 in 1951, 36 in 1961, and about 65 percent at present.

NOTE ON THE WORKING OF THE PATIALA CENTRAL COOPERATIVE BANK LTD., PATIALA. 1. Brief History

The Cooperative finance in the erstwhile State of Patiala was made available by a State owned bank viz. the Patiala State Bank (now State Bank of Patiala). With taking over the assets and liabilities of the then Patiala Cooperative Union, the Patiala Central Cooperative Bank Ltd., Patiala was registered on 28/09/1949 under the Cooperative Societies Act, 1912. The Bank is presently serving in its 62 year. 2. Constitution and Management

The Bank is managed by the Board of Directors (9 elected by the members Cooperative Societies and 3 nominated by the Govt. being member of the Bank having contributed an amount of Rs.70.00 lacs as share capital).

3.

Branches

Apart from its Head Office at Patiala, the Bank has a network of its 42 branches spread all over the district. 16 out of the 42 branches of the Bank, are working at the Focal Points - a scheme started by the Govt. of Punjab in the year of 1978. 4. Business Turn Over The business turn over of the Bank for the year 2009-2010 was Rs.1076601.94 lacs. 5. Resources The Bank raises its resources with the collection of
* * * * Share Capital Owned Funds Deposits Borrowings 31/03/2009 1152.97 5277.36 31061.08 45841.59 31/03/2010 1374.26 6141.60 35196.58 53582.42 26/11/2010 1460.28 6213.31 35414.68 48098.14

6.

Deposits There are various schemes of deposits namely

*

* * *

Current Deposits Savings Bank Deposits Fixed Deposits Recurring Deposits

7.

Advances

The Bank advances both in farm and non-farm-sector. Total loans outstanding as on 31/03/2010 stood at Rs.81734.59 lacs and as on 26/11/2010 is Rs.77432.42 lacs.
Sr.No. Name of the Scheme As on 31/03/2009 As on 31/03/2010 As on 26/11/2010

1. 2 3. 4. 5.

Crop Loan Medium Term Agri. R.C.C. to Farmers Mini Dairy Two Wheelers to farmers TOTAL:-

37329.01 6889.09 9975.33 334.02 745.71 55273.16

43501.76 9608.83 10465.23 275.17 709.56 64560.55

38667.40 11041.50 9664.36 215.91 665.07 60254.24

Non Farm Sector

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

N.F.S./Mai Bhago Consumer Loan Personal Loan Rural House Loan Urban House Loan C.C.Traders Vehicle Loan Education Loan S.H.G./S.G.S.Y. Other Misc.Loans

2164.33 1776.28 1559.19 2110.89 1191.93 2132.43 562.40 38.56 59.42 4589.15

1170.15 2147.52 1765.61 2323.77 1269.44 1931.09 838.86 54.49 93.63 5579.48

1144.88 2155.59 1835.21 2180.74 1343.02 1786.98 923.67 63.26 94.69 5650.14

8.

Recoveries Recovery position of different types of loans for the year 2009-2010 has been as under :Crop Loan Two Wheelers Vehicle Loan N.F.S. Loan 95.07 % 76.25 % 75.75 % 47.70 % 2. 4. 6. 7. Rural House Loan Personal Loan Consumer Loan S.H.G./S.G.S.Y. 78.03% 75.04% 56.66% 66.87%

1. 3. 5. 7.

9.
1. 2. 3. 4. 5. 6. 7. 8. 9.

Financial Parameters
Average cost of Borrowings Average cost of Deposits Weighted average cost of Funds Average yield on loans and advances Average yield on investments Weighted average yield on Assets Financial Margin Cost of Management Net Margin

31/03/2008 31/03/2009 31/03/2010

5.43 5.91 5.00 7.62 8.48 7.17 2.17 1.58 0.21 5.48 6.37 5.20 7.30 8.16 6.88 1.68 1.41 0.27 5.00 6.28 4.98 7.62 7.54 7.07 2.09 1.41 0.68

10.
1. 2. 3. 4. 5. 6. 7. 8. 9.

Important Ratios

31/03/08

31/03/09

31/03/10

Net profit to own funds 2.05 0.76 2.04 Interest Income to average working funds 7.18 6.88 7.07 Net profit to average working funds 0.16 0.05 0.14 Estt.Expenditure to total expenditure 18.04 16.47 16.28 Estt.Expenditure to total income 17.66 16.35 15.96 Cost of Management to total Exp. 22.21 20.48 20.00 Capital Adequacy Ratio 6.81 4.19 4.25 N.P.As to Total Loans 6.24 7.25 5.61 Agriculture advances to total advances 77.87 78.41 79.82 11. Per Branch and Per Employee Business 31/03/08 31/03/09 31/03/10 Per Branch Business 2149.51 2329.97 2658.18 Per employee Business 497.77 548.23 657.08

12. Grey Areas Staff Shortage The Bank has an acute shortage of staff. This is affecting the business and customer services. Proper supervision is also lacking over the working of the branches. Regular retirements of staff are taking place reducing the available strength every-month. Last recruitment of clerical staff was made in the year 1980. Strength of clerical and subordinate staff has become too thin to carry on routine functioning. The staff is under tremendous stress and pressure. The first consequence of this is that the quality of the work suffers. Against 366 sanctioned

posts, there are only 161 employees working in the Bank. The position is illustrated as under :Sr.No. Name of the Post Common Cadre 1. District Manager 2. Senior Manager 3. Manager Non-Common-Cadre 1. Supdt. 2. Asstt.Manager 3. Accountant 4. Steno-typist 5. Clerk 6. Driver 7. Dafatri 8. Peon 9. Sweeper/Mali TOTAL Sanctioned 1 9 19 1 55 39 7 121 5 1 106 2 366 -52 26 -30 3 1 40 -161 Staff Strength Working Vacant 1 2 6 1 3 13 7 91 2 -66 2 205 -7 13

2. Imbalances There is imbalances exist between the loan outstanding towards (No.70) PACS and loan outstanding towards members amounting to Rs.1681.63 lacs as on 31/03/2010. 3. Debt Waiver and Debt Relief 2008
Under the Debt Waiver Scheme, loan of 6523 Farmers amounting to Rs.1605.83 lacs has been waived and under Debt Relief O.T.S. Scheme 3671 and amount of Rs.468.21 lacs would be granted to other farmers. Rs.1609.34 lacs received from Govt. of India. 4. Farmers Clubs There are 16 Farmers Clubs working in this District adopted by this Bank out of which 7 farmers clubs are newly framed. 5. Self Help Groups There are 2148 Self Help Groups formed in the District out of which 463 Groups are associated with this Bank. There are 231 Groups financed by the Bank, an amount of Rs.94.69 lacs Loan outstanding against them as on 26/11/2010. 6. N.P.As NPA of the Bank decreased from Rs.5179.04 lacs to Rs.4583.44 lacs on 31/03/2010. Out of the Total NPA, a sum of Rs.976.09 lacs stands recovered on 26/11/2010. The percentage of NPA to total advances was decreased from 7.25% to 5.61% during the year 2009-2010.

OPENING BANK ACCOUNT Opening of bank account the bank has printed their own account opening form in which the depositor has to fulfill all the data in account opening form. Account can be opened and operated

Self only jointly either or survivor former or survivor anyone or survivor. Any other with the specimen signature and photo of each applicant bank has allowed in these accounts Nomination facilities on the prescribed form DA-1 under section-45ZA of banking regulation Act 1949 after obtaining proper identification of the customer & introduction of existing customer with address after obtaining the one photo and document from below list of ID proof Election ID card ID card of reputed employer Driving License Electricity Bill Pan Card Telephone Bill Pass port Salary Slip Government/ Defense Income/ Wealth Tax ID card Assessment Order Saving Bank Accounts: In the ledger account opened under the serial no of the customer with his / fathers/ husband name with complete address. An account is allotted in the ledger, mode of signature filled in the ledger. S.B.Account is opened with minimum amount of Rs.500/- in cash except no frills account which are opened with Rs.5/-. A pass book is issued to the customer. If he wants a cheque book, the same is issued to the customer free of cost after getting signature in the cheque book issue register. With-drawl form bank has made facility upto Rs.40,000/-. On presentation of pass book must with the with-drawl form duly signed by the account holder. Maintaining of deposit register and files The Mall Branch of bank is fully computerized. The other branches are maintaining the following ledgers, registers & files. a) Account opening form register b) Specimen signature file c) Cheque book issue register d) Loose cheque issue register e) Nomination register Rate calculation of interest:

The interest in saving bank account is calculated on monthly product. The lowest balance in account on one day between 10th and last day of each calendar month on every completion of Rs.10 is taken as product for the month and the total products for six months is arrived at. No interest should be paid if the interest is less than Rs.5. Interest is to be rounded of nearest rupee if the paise involved are 50 or more it should be rounded of to the next higher rupee if paise involved are less than 49 the paise is ignored --------------------------------------------------------------------------------------------------------Month Minimum balance Product --------------------------------------------------------------------------------------------------------April May June July August September Total Product The formula of interest calculation is Total Product * Rate of interest/1200 Hence the interest is 17370 * 3.5/1200 = Rs 50.66 interest so calculated is credited in this account with Rs 51 upto 10th of October. The voucher at branch level is prepared as

Debit: Credit:

Interest paid on deposits Saving Bank account

Rs 51 Rs 51

Inoperative Accounts Separate Ledger All the S.B account in which there is no operation for the last three years must be separated from operative accounts and separate ledgers are to be maintained for this purpose. Similarly all saving bank accounts which have not been operated for the last 10 years, Should be transferred to unclaimed deposits as per section 26 of Banking Regulation Act 1949. For detail procedure to be adopted to separate these accounts.

SEHKARI BANK BIMA YOZNA Individual in the age group of 10-70 years opening saving bank account are eligible to join the scheme. Minimum Balance The minimum balance of Rs 1000 is to be maintained in the account with no maximum ceiling. Cheques issued on the account violating minimum balance stipulation are liable to be dishonored by the bank. Nomination Facility This facility for deposit account is available and is restricted to one individual only. Nomination shall be made preferably at the time of opening of the account. Nomination Can be cancelled or changed at any time. Nomination for bank deposit and insurance scheme shall be the same. Sehkari Bank Bima Yojna Register As and when any member opens new account or existing member adopts the scheme, his name shall be entered into the Sehkari Bank Bima Yojna Register maintained at the bank. Statement to Head Office The branches shall send the statement along with draft/advise to the head office about the accounts opened under the scheme during the month. The head

office of the bank shall collect the information of all the branches, consolidate it and shall submit the same to the Punjab State Cooperative Bank Ltd. atleast two days before the last day working of the month for onward submission to the insurance company. Insurance Cover Persons joining the scheme are provided with accident insurance cover under the Group personal accident insurance policy of the General Insurance Company and the following risks are covered. a) Death b) Permanent total disability c) Loss of 2 eyes/feet/hands d) Loss of 1 eye/foot/hand Rs 100000.00 Rs 100000.00 Rs 100000.00 Rs 50000.00

Insurance Premium The insurance premium including service charges determined by the bank from time to time shall be debited to the account of the individual on the date of its opening and subsequently on the date determined by the bank every year towards the insurance premium and banks service charges. In case of premium is not remitted by the bank due to lack of sufficient funds/balance in the account or for any other reasons beyond the scope of the bank, insurance cover will not be available as stated above. Procedure for Claim Immediately after the happening of the accident it should be informed by the claimants to the Concerned branch of the bank where the depositor is maintaining the account and nearest branch of the insurance company. Claim form can be obtained from the bank branch or from the branch of the company and are to be submitted to the insurance company through the branch. Disposal for claim:
The claim shall be disposed off as early as possible and the claim shall be made to the bank for disbursement to the nominee in case of death or to the depositor in case of disablement. Documents required with claims: The following documents should be submitted along with the claim form. a) In case of death 1. 2. Death certificate Post mortem report

3. 4. 5. 6.

Copy of first information report Name of the nominee Any other relevant document Premium remittances confirmation from the bank

b) In case of disablement 1. Photograph of the disabled showing disability. 2. Disability certificate issue by the doctor 3. Police report/ report from Sarpanch of village or Lambardar 4. Any other relevant document. 5. Premium remittances confirmation from the bank

FIXED DEPOSIT AND LONG TERM DEPOSIT Fixed Deposit Fixed Deposit is a deposit scheme wherein a depositor agrees to receive back the principal amount after a specified period agreed to at the time of deposit. Interest may be received by him either periodically or at maturity. Fixed Deposit can be opened for any amount subject to minimum of Rs1000/Long Term Deposit Long term deposit is a deposit scheme wherein a depositor agrees to receive back the principal amount together with interest accrued after a certain period agreed at the time of deposit. Interest earned thereon under this scheme is reinvested at quarterly rests to yield compound interest. Long term deposit accounts are opened with minimum amount of Rs1000/-. The minimum period of deposit is 2 quarters ( 6 months). Account opening form The requirement for opening a Fixed Deposit/ Long term deposit with respect to account opening form, introduction, photographs, specimen signature, requirement of income tax authorities, staff accounts, nomination secrecy. Payment of interest quarterly In case of Fixed Deposit, the customer may get payment of interest when it accrues at every quarter. The instruction to this effect, if customer desires so, be obtained on the account opening form as Please credit the interest accrued every quarter to my Saving account/ Current account/ Recurring Deposit .

Another term deposit in case of existing term deposit account where the customer account Fixed Deposit or Long term deposit is already running he needs not required to open another corresponding account while depositing money for another fixed deposits or long term deposit. The customer needs to fill up pay-in-slip while depositing money writing wherein his Fixed deposit account number or Long term

deposit account number, as the case may be. In this case account opening form will not be required to fill up again by the customer.

ISSUANCE OF FIXED DEPOSIT/ LONG TERM DEPOSIT RECEIPT Preparation of credit voucher and receipt for Term Deposits The depositor should remit cash through the pay-in-slip provided by the bank along with application for opening the deposit account. While writing the receipt, the following particulars should be included. 1. Date to be mentioned in Term Deposit Receipt While writing the date of issue of the Term Deposit Receipt, the numeral of date, month & year should be written legibly in the place provided for. 2. Name to be mentioned on Term Deposit Receipt

The name of depositor should be written in full term on Term Deposit Receipt. In case of joint accounts, names of all joint depositors should be written. 3. Period of deposit on Term Deposit Receipt

Period of deposit should be written in term of months instead of years and for a period below 12 months, it should be written in term of days instead of months. 4. Rate of Interest on Term Deposit Receipt

The rate of Interest applicable for the period of deposit should be written legibly in the space provided for. The latest circular from Head Office regarding current interest rates should be refereed. 5.
Due Date holiday, the

Due Date should be correctly calculated and written. When due date falls on bank

amount is to be paid on next working day. In all such cases, interest for the holiday involved at the contracted rate should also be paid. If the month in which the deposit becomes due does not have the date corresponding to the date of deposit the last day of the month will be the due date. Thus,

the due date for Fixed Deposit Receipt for 18 months issued on 31st August 1998 would be 29th February 2000. However, in case the period of deposit had been expressed in terms of days and not months, the due date should be calculated as per the following rule:

1) Calculated days and not months. If February of that year has 29 days, calculate for 29 days ( not 30 days). 2) Include date of deposit 3) Exclude the date of payment, take the next date Example: The due date for Fixed Deposit Receipt dated 04.10.1999 for 91 days should be Calculated as under: October 1999 (04.10.1999 to 31.10. 1999) November 1999 December 1999 89 days The period of deposit is 91 days, so we must add days 2 days in 89 and it comes out to be 2nd of January, 2000. By applying rule (3) the due date becomes 3rd of January, 2000. 6. Interest runs from The column Interest runs from shall be filled with the date on which the deposit of the overdue deposit. Term Deposit Receipt- typed or written The deposit receipt may either be typed or written in hand. If written in hand, it should be neat and legible. In computerized branches, where term deposit receipt are prepared with the help of printer and computer, paper should be adjusted in such a manner that its printing is legible and at proper place. Number in pay-in-slips and account opening form The deposit receipt number should be written in account opening form and also in the pay-in-slip. Signature on deposit receipt The deposit receipt should be signed by two authorized officer after scrutinizing the pay-in-slip, account opening form and deposit receipt. receipt is prepared. In case deposit is renewed from the back date, the date in this column will be the due date 28 days (including date of deposit)- Rule (2) 30 days Rule (1) 31 days

Acknowledgement from depositor The Depositors signature should be obtained on the back side of the counterfoil in token of receipt of the deposit receipt and the deposit receipt should be handed over to the depositor. Matured amount to be written on long term deposit receipts

In the long term deposit scheme of term deposit, the interest earned is reinvested (compounded quarterly) and paid on maturity. So, in the long term deposit receipt, the matured amount is mentioned therein which should be written both in figures and words. Whereas, matured amount is not written on fixed deposit receipt as the depositor has the option to receive the interest monthly/ quarterly/ half yearly, i.e., before maturity. Entry in fixed deposit & long term deposit ledgers Separate ledgers for fixed deposit & long term deposit should be used. All the relevant particulars such as name of the depositor, date, period of deposit, rate of interest, due date, maturity value, instructions regarding disposal of balance in respect of joint accounts should be entered. Interest Payment Register The details of fixed deposits should be entered in the Interest Payment Register. Entries in Interest Payment Register are not required in case of long term deposits. Payment of interest on long term deposits The interest on long term deposit is compounded quarterly and is paid only on the maturity date of the deposit along with principal amount. The interest should be calculated at the end of each quarter and must be credited in the account of the depositor. Payment of interest on fixed deposits a) Where the deposit is for one year or more while calculating the days for the purpose of interest, the following rules should be observed: 1) Include the first day of deposit 2) Exclude the last day of deposit 3) Each month is considered to have 30 days b) Where the deposit is less then a year If the fixed deposit is made for a specified number of days less than a year, interest should be calculated by taking the actual number days in a month.

Discharge To make payment of fixed deposit/ long term deposit on due date, if the customer present himself to receive the payment, he may be asked to discharge the fixed deposit/ long term deposit receipt on the back of it. His signature on the fixed deposit/ long term deposit receipt shall be tallied with specimen signature in record of the bank.
Closure of long term deposit The receipt and the account opening form should be cancelled by writing words Account closed on --------- (date). The account should be closed in ledger by posting the necessary entries. The ledger and the due date register should be marked with a notation Account closed and cash paid/ amount transferred to SB/ Current account on ---- .

Whereas if there are other term deposits in the term deposits accounts, the account should not be closed. RECURRING DEPOSITS A Recurring deposits is a form of term deposit in which depositor deposits a fixed sum of money by way of monthly installments over a stipulated period and on the expiry of this period. The accumulated amount along with interest accrued is paid in lump sum. Rate of interest The rate of interest on recurring deposit for various periods will be the rate applicable on term deposits for the corresponding period. Interest is compounded at quarterly rests. Amount of deposit A recurring deposit is accepted with a minimum monthly installment of Rs 10/- in multiples of Rs 10/-. Period of deposit The minimum period of recurring deposit is 6 months and maximum period is 120 months with multiples of 3 months Maturity value The maturity value (the amount payable at the end of the period of deposit, comprising the principal and interest accrued thereon) can be calculated from the interest charts supplied to the branches.

Entry in recurring deposit ledger Separate ledger for recurring deposit should be used. All the relevant particulars such as name of the depositor, date, period of deposit, rate of interest, due date, maturity value and amount of installment. Issue of pass book The ledger keeper should prepare the pass book for recurring deposit at the time of opening of account in the personal ledger and it should be authenticated by the officer concerned of the branch before it is delivered to the customer. The date of maturity should not be mentioned on the pass book but month on which it matures can be written therein. The rate of interest can be mentioned therein. The customer should be asked to bring the pass book in the branch whenever he pays the installment. Penal charges In case the installment are not deposited in the respective calendar month in which they due, Penal charges are to be recovered for the delay. The penalty is charged at the rate mentioned below: 1) Rs 1.50 for every hundred rupees per month for deposits upto 5 years and less 2) Rs 2 for every hundred rupees per month for deposits over 5 years.

Loan against Recurring Deposit Loan against Recurring Deposit can be allowed to the recurring deposit holder. To avail the loan, the recurring deposit account holder should lodge the passbook with the Bank duly discharged over the revenue stamp of appropriate value at the space provided for in the last page of the passbook. CURRENT ACCOUNTS WHO CAN OPEN CURRENT ACCOUNT? 1) Person in his own name 2) Two or more persons in their joint names with operations as either or survivor, Jointly/Jointly or Survivor, Anyone or Survivors or Survivor. 3) Cooperative societies, Partnership firms, limited companies, joint stock companies, ssclubs, religious institutions, associations, Local bodies.

WHO CANNOT OPEN CURRENT ACCOUNT? 1) Minor 2) Pardanashin ladies 3) Illiterate Persons 4) Blind Persons --------------------------------------------------------------------------------------------Type of accounts Additional Documents --------------------------------------------------------------------------------------------1) Proprietary concern a) Declaration of sole proprietorship 2) Partnership Firms a) Partnership Letter b) A copy of partnership deed 3) Joint Hindu families a) Joint Hindu family letter 4) Limited companies a) Certificate of incorporation b) Certificate of commencement of business. c) Memorandum and article of Association d) Boards resolution 5) Clubs, Schools, Societies,

a) Certificate of registration or Committee incorporation b) A copy of Byelaws, rules, regulations as the case may be c) Memorandum of Association, if any d) Resolution of the Board of Directors e) Latest copy of Balance Sheet in case of Co-operative Societies.

6) Trusts a) Instrument or document of truck or relevant extract thereof. b) Resolution c) Certificate of registration from charity Commissioner 7) Provident funds a) Trust deed b) Rules of Provident fund c) Resolution 8) Guardians appointed a) Court order or Guardianship by court in respect Certificate of Minors

Minimum Amount: Account shall be opened with minimum balance of Rs.5000/-. Issue of cheque book: Cheque book may be issued to the account holder on the written request only. Cheque book issued to the new account holder for first six month shall be stamped New Account. Borrowings : Rs _________ Lacs Bank has availed borrowing from NABARD and PSCB Chandigarh as on 31-03-2010 Seasonal Agriculture Operations : Revolving cash credit : STNAP C.C.Fertilizers Own resources MT Farm Sector Non Farm Sector Housing Loan STAFF REQUIREMENT Requirements of clerks was made in the bank last in the year 1980. Similarly recruitment of class IV employees was made in the year 1986. A number of posts are lying vacant. This shortage definitely affects the working of the bank. ANNUAL TURNOVER AND AVERAGE WORKING FUND The annual turnover of the PATIALA CENTERAL CO-OPERATIVE BANK for the year 2008-09 is ________ lacs and for 2009-10 is ________ lacs Sanctioned limit for 2009-2010 ___________ ___________ __________ __________ ___________ ___________ ___________ ___________ ___________ ___________ __________ __________ __________ __________ __________ __________

NAME OF THE ORGANISATION POSTAL ADDRESS

The Patiala Central Co-Operative Bank Ltd.H.O.,The Mall Patiala-147001.

MAIN TELEPHONE NUMBERS AT HEAD OFFICE

Managing Director District Manager

5000270 5000271 5000272, 5003648 5000273 5000274 5000275 0175-5003927

Senior Manager

Chairman Account Section Stat Section FAX NO:

NAME OF DEPARTMENT WORKING IN CO-OP. BANK

There are various sections / departments which are working in the Bank. Here we tell us about those departments / sections which play important role in Banking. We tell about his Head of Department, its functions & number of members working in the departments.

FUNCTIONS OF THE DEPARTMENT

To maintain monthly statements etc; like as LIC, Income Tax, GSLI Grievance of public & branches. Yearly statements. Master policy of holder such as EDLT, GI, and House Loan. Statements of NABARD. House Loan To issue charge sheets of employees & maintain it. To maintain Misc. files. To maintain several records (with service book of employees) Transfer of employees. Increment concerned with employees.

Pass T.A. D.A. bill of employees Salary of Employees maintained.

FUNCTIONS OF ACCOUNT SECTION

The Misc. department reconciled the A/c of all the branches. That department issue the drafts of local, state level /aims. Furniture fixture. This department keeps up the current A/c related with commercial bank. It helps to maintain Sundry A/c. Maintain the current A/c with P.S.C.B. Passing the M.C.L. of societies. Sanctioned of cash credit limits of societies. Maintenance of receipt and dispatch register.

FUNCTIONS OF LOAN SECTION

Sanction all types of loans; like as

Consumer Loan / Composite /integrated loan /Vehicle Loan Computer loan only for staff member Sanction all types of limits; like as Cash Credit Traders

Cash Credit Farmers Loan against property Rural Godown Mini dairy Mai Bhago scheme Renewed cash credit limits. Physical verification done before sanctions the limits or loans. Vehicle loan two wheeler, three wheeler, & S.R.T.O. Maintain statements for refinance &send to NABARD.

FUNCTIONS OF STAT SECTION

Planning Renewing

 Compiling Achievements (for net result of the bank) Next year forecasting

ACCOUNT & FINANCE DEPARTMENT

Keeping of account and maintaining books of accounts, preparing profits and loss accounts, preparing budgets, pay rolls, recording receipts and payments, preparing statement of assets and liabilities etc. are office activities of specialized nature. All these are office work and performed by this special office.

MISCELLANCEOUS ACTIVITES
OFFICE TIME: - The P.C.C.B. has fixed the timing for all the employees the
timing of this company is 10.00 a.m. to 5.00 p.m. The recorded of the arrival & departure was recorded through Attendance register company maintenance the attendance registers. All the employees come at 10 a.m. Entered the time in the Attendance register in the first column and at time of lunch. The entire employee entered. The departure time for lunch at 2.00 p.m. When they come after lunch they will entered the arrival time 2.30 p.m. Than duty was complete they will entered the departure time 5.00 p.m. and also entered the total working hours in the full day. There is no extra system for recording the time.

LOGBOOK: - All the vehicles of the company having logbook. Each vehicle has own separate logbook. All the records of this vehicle were kept in this logbook. The perform shows that, how much kilometer are to be used by this log book the person who used the vehicle fill this log book and signed on also fill that for what purpose. The vehicle was used.

FACILITIES FOR STAFF: - The following facility is available to staff members. House Loan facility at subsidiary rate.

 Scooter loan/ motorcycle/ car loan at subsidiary rate. Festival loan. Medical loan LTC Loan (Loan Travelling Concession) DA (daily allowance) TA (travelling allowance)

Cash and Bank Balances: Rs____________ Lacs Bank have maintained cash in hand and bank balances with PSCB Chandigarh and other commercial banks for timely payments to customers the minimum statutory requirement to maintain Cash reserve ratio of Cooperative banks and RRBS is 3% as prescribed by RBI. In the BOD resolution No ___ dated ________ revised the cash in hand / cash with banker limits. It is made clear that these limits are optimum level which the branches are require to maintain. Investments: Rs _________ Lacs Bank has invested to maintain SLR ratio which is prescribed by RBI to DCCBS of their demand and time liabilities at rate of 25% Bank have invested in FDR with PSCB with Chandigarh , govt securities SGL Account with SBOP Patiala and other schedule banks for purpose of SLR .Bank Have also purchased the shares of their Apex bodies Rs._____ lacs to borrow PSCB Chandigarh. Detail of investment is as under: Loans and Advances: The bank finances crop loan, investment credit and allied activities through 272 primary agriculture cooperative societies to farmers in the villages. Bank advances direct loans to farmers for purchase of two wheelers, mini and commercial dairy, revolving cash credit to farmers for their socio, economic needs, construction, repair, renovation of house in rural areas. Bank advances personal loan, consumer loan, vehicle loan, house loan, education loan, Non farming sector, Self help group, Commercial dairy, Loan against property, Non performing advances: Bank is not earning on these assets as RBI introduced income Recognitions and prudential Norms in Cooperative banks to maintain provisions against doubtful assets.

Solvency Ratios :

All Ratios are to be calculated percentage terms.

Ratios 31/03/08 31/03/09 31/03/10

in

Capital Adequacy Ratios N.P.A./ Total Advances Own Funds / Average Working Funds

THE PATIALA CENTRAL COOPERATIVE BANK LTD., H.O.PATIALA. SCHEME FOR FINANCING RURAL HOUSING

Preamble

With a view to provide housing facilities to the masses which is a basic need of human beings, the GOI and State Govt. are attaching utmost importance to the financing of housing sector. Several housing schemes for this are in operation. With a view to supplement these schemes, it has been decided by the Coop. Bank to start housing finance for acquisition, construction, repair/alteration etc. This scheme has particularly been designed for rural people, where other financing institutions are reluctant to advance. The scheme shall be called the

Scheme for Financing Rural Housing and is applicable to individual/members of house building cooperative societies in the state of 1. Area of Operation Punjab and Chandigarh (U.T.) Loan shall be advanced to individual and member of Group Housing Cooperative Societies in the area of operation Banks in the state of Punjab 2. Eligible Borrower and Chandigarh U.T. Individuals Cooperative Housing Societies 3. Loan shall be advanced under Purpose the scheme for purchase of of Loan built up house, construction of a new house or repair/ renovation/addition/alteration of existing house in rural areas. 4. Ceiling on the cost The loan for a dwelling unit may not exceed Rs.15.00 lacs. In case land is being acquired the cost of land may be reckoned as margin money, otherwise cost of land should not be included in the project cost. 5. Quantum of Bank loan for Individual The quantum of loan shall depend upon repaying capacity of the borrowers, subject to 85% of cost of construction or value of property to be purchased. For construction/purchase of new House maximum loan Rs.15.00 lacs Margin Money 15% Repayment period Upto 15 years in monthly/half yearly installments. Due date shall be 30th June and 31st December every year. For Renovation/Repair/Addition/Alteration: Maximum loan Rs.5 lacs (for repair/ addition /alteration of House) Margin money 15% Repayment period 10 years in monthly/half yearly installments.

Loan eligibility shall be calculated on the basis of repayment capacity of the borrower. The repaying capacity shall be determined on the basis of land holding and other known sources of income and commitments/subsistence towards his family. A reasonable installment to income ratio i.e. normally upto 35% of the gross income can be taken as repayment capacity of the borrower. Income of the coapplicant can also be considered for loan eligibility. 6. Period of Loans The maximum period of loan shall be upto 15 years and loan shall be repayable in equated monthly/half yearly installments. The first installment shall become due after expiry of 9 months from the date of drawl of first installment in case of construction and whereas in case of purchase of built up house, it shall start after expiry of 3 months from the date of purchase. 7. Rate of Interest At present rate of Rural Housing is 11% and further it shall be determined by financing bank from time to time and debited to loan account. Interest Is charged as contract made with the loanee. Penal interest @ 2% over and above the normal rate shall be charged in case of default, on the default amount for the default period. 0.5% concession is allowed to women 8. Security The security of the loan shall be first mortgage charge on the house property to be financed by the bank by way of registered regular mortgage. In addition to it collateral security shall be taken @ 100% of the loan amount in the form of agriculture land. Value of agriculture land as per norms fixed by the District Collector from time to time should be taken into consideration. In case of employees of the Govt., semi govt., Boards, Corporation, etc., constructing house within rural areas, loan can be advanced on primary security i.e. mortgage of house to be financed, along with two good sureties and undertaking under section 39 of Punjab Cooperative Societies Act., 1961. (amended vide RCS Circular letter No.Credit/CA-2/HF/201/1/16264 dated 30.10.07) 9. Sanction and disbursement of Loan The loan shall be sanctioned after it is ascertained that the applicant fulfils all the requirements and enjoys reputation as a good pay master. For construction loan, the borrower should be in possession of plot with unquestionable and indisputable title. In case of built up house, the payment shall be made @ 75% of total value of the house/Loan sanctioned. Payment shall, however, be made to third party in lump sum after getting margin money from the borrower and remaining 25% shall be released after obtaining Mortgage Deed in favour of the Bank. For construction of house, loan shall be disbursed in 2 installments, which is as under:1st installment at the time of starting 50% construction up to plinth level 2nd installment after completion up to 50% Roof level. 2nd installment shall be disbursed after ensuring proper utilization of previous installment. 10. Processing Fee & Other Charges

Processing Fees and other charges @ 0.25% of loan amount shall be charged. 11. Documentation & general requirements. Following documents are required for financing under Rural Housing Scheme 1. Application form 2. Loan agreement 3. D. P. Note 4. Two latest attested passport size photographs of the borrowers. 5. Proof of residence. 6. Source of Finance for own contribution. 7. Copy of approved drawing of the proposed dwelling unit to be constructed/purchased from Sarpanch / Numberdar. 8. Agreement of sale deed. 9. Details of cost/estimate from approved Architecture/ Valuer/ Engineer of the house to be purchased/ constructed /renovated /addition to be made. 10. Non-encumbrance certificate. 11. Latest Jamabandi and Girdawari. 12. Certificate of ownership of land/property situated within Red Line (i.e. Phirni) of the village from the Sarpanch/Numberdar/Partwari. 13. The borrower shall mortgage his existing property : to be constructed/purchased in favour of the bank for the full value of loan. 14. The borrower shall be required to submit collateral security @ 100% of the loan amount. SCHEME FOR URBAN HOUSING LOAN SCHEME 1. Short title, Extent and Commencement This scheme may be called Urban Housing Loan Scheme to individual and members of house Building Societies by The Punjab State Cooperative Bank/Central Coop .Bank (s) in the State of Punjab. The scheme shall be implemented through the branches of the PSCB/Central Cooperative banks concerned and shall be limited to urban areas falling in the area of operation of the lending Bank. It shall come into force from the date as the Registrar Coop.Societies, Punjab Chandigarh decides. 2. Definitions In this Scheme unless the context otherwise requires :a) Act means, the Punjab Cooperative Societies Act 1961 as amended from time to time.

b) Bye-laws means registered byelaws the State Central Cooperative Banks concerned. c) Bank means State/Central Cooperative Bank registered under the Act. d) Committee means Governing body of the Cooperative Bank whatever name called to which the management of the affairs of the bank is entrusted. e) Government means Government of Punjab. f) Nominal Member means a by the of / the

person admitted membership of he bank Act. and under Rules Bye-laws. g) Officers means President, Vice President, Chairman, Vice Chairman, Managing Director, Manager, Liquidator and Administrator includes other under any person the the to

empowered rules or the bye laws to give direction in regard to the business of the bank. h) Registrar means person appointed to a

perform function of

the of

the Registrar Cooperative Societies under the Act. i) Rules means the Punjab Cooperative Societies Rule 1963. j) Urban means Nagar Panchayat, Notified Area Committee, Municipal Council, Municipal Corporation and Cantonment Board. k) Family member means Spouse, Son, Sons wife, Unmarried Daughter. 3. Purpose Loan shall be advanced for the purchase of plot, purchase of built up house, construction of house or area area

falling under

repair, renovation, additions, alteration, etc. in the existing house. Loans shall also be given for acquiring a plot, flat, house in an existing or proposed Cooperative House Building Society and approved scheme of PUDA, Housefed, Improvement Trust or any other Govt. Agency. Loan can also be advanced for take over of an existing loan advanced by any other bank/financial institution subject to the condition that the loan account should have remained in the standard category of assets for atleast 4. Eligibility last 2 years in the previous financial institution. An individual residing in the area of operation of the Bank may apply for the loan in his individual name or along with another person being joint owner of the land/property as co-applicant. The applicant and coapplicant, if any will be enrolled as nominal members of the bank under the Act, Rules and Bye Laws. Note : The Borrower should not have defaulted in any other loan. The applicant shall be eligible for a total house building loan not exceeding 75% of the total cost of house (cost of construction + cost of plot, if plot is to be purchased) and the loan out of it for purchase of plot will not exceed 50% of the total loan sanctioned. The remaining, exceeding or upto 50% shall be utilized for construction of house thereon. The employees of the Punjab State Cooperative Bank or Central Cooperative Banks who have already availed house loan under Govt. or Bank Scheme from the Punjab State Coop. Bank or Central Cooperative Banks can also get loan under the scheme subject to maximum of Rs.25 lacs under both house loan scheme. It will be further subject to the repaying capacity of the employee in accordance with their last salary statement. Further this loan to employee will be against second charge on the

5. Quantum of Loan

said property. The quantum of loan will depend upon the repayment capacity of applicant to be calculated by the bank as under : 21 yrs. To 45 yrs of age. 48 times of the net monthly income (NMI) or 4 times of Net Annual Income (NAI) Above 45 years 36 times of Net Monthly Income (NMI) or 3 Times of Net Annual Income Income of the spouse or family member can be considered if spouse or family member is co-applicant or guarantor. Maximum loan amount for construction of house or purchase of house/flat, purchase of plot + construction thereon under this scheme is Rs.25 lacs or 75% of total cost of construction, purchase of house (cost of construction + cost of plot, if plot is to be purchased), whichever is less. The loan for purchase of plot will not exceed 50% of the total loan sanctioned. For repair/renovation maximum amount of loan shall be Rs.5 lacs. For addition/alterations in existing house, maximum loan amount shall be Rs.10 lacs. At present rate of Urban Housing is 11% and further it shall be determined by financing bank from time to time and debited to loan account. Interest Is charged as contract made with the loanee. Penal interest @ 2% over and above the normal rate shall be charged in case of default, on the default amount for the default period. 0.5% concession is allowed to women Maximum period (including moratorium period) shall be 15 years or attaining the age of 65 years whichever is earlier. In case of repair/renovation /addition/alteration loan cases maximum period shall be 10 years. Repayment of the loan shall, however, be in monthly

6. Interest

7. Period of Loan/ Repayment of Loan

equated installment to be started from 9 months after the first installment of loan disbursed. In case of the farmers availing loan under this scheme, repayment of loan may be in half yearly installments i.e. 30th June and 31st 8. Security December every year. Security for the loan is a first mortgage of the property to be financed normally by way of deposit of original title 9. Disbursal of Loan deeds. The loan shall be disbursed after the property is technically appraised, all legal documentation completed and borrower having invested own contribution in full (own contribution is the total cost of proposed property Bank loan). In case of purchase of plot + construction, the disbursement shall be in 3 installments as follows:For purchase of plot 50% Upto roof level After roof level 25% 25%

Loan will be disbursed at one go for purchase of a built up house. However, for construction on pre-owned plot, the disbursement shall be in two installments. 1st Installment for construction after plinth level 50% 2nd Installment for construction of the building after roof level 50% Loan for repair, additions, alterations and renovation shall be disbursed in two equal installments. The second and subsequent installment of loan shall be disbursed only after ensuring the utilization of previous installment to Banks satisfaction. Bank shall not be bound to accept 10. Fee & Other Charges 11. Documentation Pre-sanction stage. progress construction as assessed by builder. A processing fee @0.25% of the loan amount sanctioned will be charged. Identify proof. Residential Proof. 3. Self attested recent passport size photographs of the

applicant and co-applicant (two). 4. Copy of Income-tax Return for the three years duly acknowledged by ITO concerned. 5. Sources of Finance for own contribution. 6. Non-encumbrance certificate. 7. Search report & legal opinion alongwith photograph of the property. 8. Original title deed. 9. Spot Physical verification. 10. 11. 12. Purchase agreement of property. Income Proof/J-Form. Loan application Form 1. Loan agreement. 2. Demand Promissory Note. 3. Mortgage Deed 4. Letter of Lien and Set Off 5. Letter of Waiver 6. Letter of Guarantee Employed applicants : Undertaking from the employee under section 39 of Punjab Cooperative Societies Act, 12. Insurance 1961. Comprehensive insurance in the joint names of the borrower and the bank shall be made of the property mortgaged against fire, riots earthquake lighting floods etc. Incase of default bank will be at liberty to get a policy renewed by debit to house loan account of the 13. Additional Documents in the construction cases borrower. a) Construction Plan approved by a competent authority. b) Detailed Cost estimate from Registered Architect/ Civil Engineer. c) A photocopy of registered title deeds or allotment letter (in case of member of Cooperative House 14. In purchase of Building Societies) a) Agreement of sale/sale deed/detailed cost

Post Sanction Stage

Built Up House cases.

estimate from approved engineer. b) In case of allotment of flat/houses, photocopy of allotment letter and details of balance payment, if any. If at any stage any dispute arises, it will be settled/referred under the Punjab Cooperative Societies Act 1961.

15. Disputes

SCHEME FOR GRANTING OF LOAN AGAINST PROPERTY 1. Short title, extent and commencement:This scheme may be called Scheme of LOAN AGAINST PROPERTY(LAP) ii. The scheme shall be implemented through the branches of the Punjab State Cooperative Bank Limited & Central Cooperative Banks only through an urban branch in the State of Punjab and shall be available to Individuals. Beneficiaries should be enrolled as Nominal Member of the bank. It shall come into force from the date as the Registrar, Coop.Societies, Punjab, Chandigarh decides. 2. Definitions : In this Scheme unless the context otherwise requires :

a) Act means, the Punjab Cooperative Societies Act 1961 as amended from time to time. b) Bye-laws means the registered byelaws of the State / Central Cooperative Banks concerned. c) Bank means State/Central Cooperative Bank registered under the Act. d) Committee means the Governing body of the Cooperative Bank by whatever name called to which the management of the affairs of the bank is entrusted. e) Government means Government of Punjab. f) Nominal Member means a person admitted to membership of he bank under Act. Rules and Bye-laws. g) Officers means the President, Vice President, Chairman, Vice Chairman, Managing Director, Manager, Liquidator and Administrator includes any other person empowered under the rules or the bye laws to give direction in regard to the business of the bank. h) Registrar means a person appointed to perform the function of the Registrar of Cooperative Societies under the Act. i) Rules means the Punjab Cooperative Societies Rule 1963. j) Family member means Spouse, Son, Sons wife, Unmarried Daughter.

3. Purpose The scheme is for providing finance against mortgage of immovable property situated at Chandigarh, U.T. Periphery by Punjab State Cooperative bank and at urban areas (within Municipal Limit) by Central Cooperative bank through its urban branches, and is designed to offer instant solutions relating to socio-economic needs such as childrens higher education, travel, daughters marriage,medical emergencies, etc. The loan will, however be not avail for speculative purpose.
4. Eligibility 1. An individual residing in and having a self occupied immovable property in the area mentioned in the Purppse Clause no.3 may apply for the loan in his individual name or alongwith another person being joint owner of the land/property as co-applicant. The applicant and co-applicant, if any, will be enrolled as nominal members of the bank under the Act, Rules and Bye-laws. The age of borrower should not exceed 65 years at the time of applying for the loan.

2.

Employees of the PSCB/DCCB can avail this loan against property already mortgaged with the bank by creating second charge of property subject to the repaying capacity of the employee as per the scheme of loan.

5. Type and Quantum of Loan: The loan can be given in the shape of Term Loan or Credit Limit. Loan can also be given for both purposes i.e. partly for term loan and partly for credit limit subject to quantum of loan for both the loan and limit will not exceed from Rs.25.00 lacs. Quantum of loan will be three times of net annual income or 50% of value of property, whichever is less. However maximum loan amount will be Rs.25 lacs. Income of family member can be considered for the purpose of eligibility of loan. 6. Interest: Interest shall be charged @ 13% p.a. compounded quarterly or as may be revised by the bank from time to time. In case of defaults a penal interest @ 2% p.a. over and above the normal rate on the default amount and default period shall also be charged. 0.5% concession is allowed to women 7. Security: a) Security for the loan is a first mortgage of the property, against which loan/limit is granted, by way of deposit of title deeds. The valuation of the property will be based on the basis of last reserve price of the auction fixed by the Chandigarh Administration. For the properties situated out side the Chandigarh, it will be the official rates of registration fixed for the same by respective Municipal or Registration Authority or current market value whichever is lower. b) Suitable one guarantee acceptable to the bank. The guarantor should have its net worth equal to or more than the loan amount to advanced. In case the income of family member is taken while calculating loan eligibility, he/she must be taken as guarantor. c) a) Post dated cheques for the months for which repayment of term loan option is due. Loan together with interest is repayable in maximum 72 equal monthly installments. 8. Repayment of Loan: b) Overdraft facility is to be renewed/reviewed annually. 9. Processing Fees: 0.5% of the sanctioned amount shall be charged. In case of limit of 0.25% will be levied every year on the credit limit. 10. Documentation: a. b. c. d. e. f. g. Loan application Form. Loan Agreement. D.P. Note. Mortgage Deed. Non-Encumbrance Certificate. Letter of lien and set off. Map and Current Valuation Report of the property from Govt. Approved Architect.

h. i. j.

Search report and legal opinion along with the photo. Letter of continuity Original Title Deed.

11. Insurance: Comprehensive Insurance in the joint names of the borrower and the bank shall be made of the property mortgaged against fire, riots, earthquake, lightning, floods, etc. In case of default bank will be at liberty to get a policy renewed by debit to loan account of the borrower. 12. Documents required from applicants: Documents required from Salaried Individuals Card/Passport/PAN Card. past 6 months). years. applicant (two). Card/PAN Card. past 6 months). Copies of all Property Documents. Copy of Income Tax Returns for last two years. 13. Disputes If at any stage any dispute arises, it will be settled/referred under the Punjab Cooperative Societies Act 1961 or any other relevant act at the sole discretion of the Bank. Latest Bank Statement/Passbook (where salary/Income is credited for Income proof. Proof Bill/Electricity Bill/Voters Card. Proof of Identity Any one of Voters Card/Drivers License/Employer of Residence Any one of Ration Card/Telephone Copy of Income-tax Returns for last two years. Documents required from the non-salaried individuals Copies of all Property Documents. Self attested recent passport size photographs of the applicant and coLatest 3 months Salary Slip with all deductions & Form 16 for last 2 Latest Bank Statement/Passbook (where salary/Income is credited for Proof Bill/Electricity Bill/Voters Card. Proof of Identity Any one of Voters Card/Drivers License/Employer of Residence Any one of Ration Card/Telephone

SECOND HAND VEHICLE LOAN SCHEME

In the modern era there is a heavy demand for purchase of second hand vehicles and the banks have surplus loan-able funds to diversify the loan portfolio and to provide financial assistance to the borrowers for purchase of second hand vehicle, this scheme has been diversified. A. Short title, extent and commencement:-

a. This scheme may be called Second Hand Vehicle Loan Scheme to individual sole proprietor professional and partnership concern residing in the area of operation of the lending bank by the State and Central Banks as the case may be. b. The scheme shall be implemented through the branches of the State and Central Coop. Banks in UT and in the State of Punjab. c. It shall come into force from the date of approval by the Registrar Coop.Societies Punjab Chandigarh.
d.

The vehicle to be purchased by the loanee should not be more than 3 years old, should be accident free, one time road tax paid, bearing Registration Number of U.T. Chandigarh or the State of Punjab.

B. Definitions : In this Scheme unless the context otherwise requires: a) Act means, the Punjab Cooperative Societies Act 1961 as amended from time to time. b) Bye-laws means the registered byelaws of the State / Central Cooperative Banks concerned. c) Bank means State/Central Cooperative Bank registered under the Act. d) Committee means the Governing body of the Cooperative Bank by whatever name called to which the management of the affairs of the bank is entrusted. e) Government means Government of Punjab. f) Nominal Member means a person admitted to membership of he bank under Act. Rules and Bye-laws. g) Officers means the President, Vice President, Chairman, Vice Chairman, Managing Director, Manager, Liquidator and Administrator includes any other person empowered under the rules or the bye laws to give direction in regard to the business of the bank.

h) Registrar means a person appointed to perform the function of the Registrar of Cooperative Societies under the Act. i) Rules means the Punjab Cooperative Societies Rule 1963. C. Purpose Loan shall be advanced for the purchase of second hand vehicle such as car, jeep, sumo, qualis, etc. for personal/public use. D. Eligibility An individual, sole proprietor, professional and partnership concern residing in the area of operation having permanent account number provided by the Income Tax authority in urban areas and in case of rural area having at least 5 acres of agriculture land and should not be defaulter. The applicant will be enrolled as nominal member of the bank under the Act, Rules and Bye-laws. E. Quantum of Loan: The quantum of loan shall depend upon the model and present value of the vehicle. Present value shall be the value as provided by Sah & Sanghi in the current price Index and also available on Website htpp.www automartindia.com/Sah & Sanghi priceindex.asp or the value approved by the registered surveyor of any GIC with the condition that the insurer has to get insurance cover from the concerned Insurance Company on whose list the name of the surveyor appears, which is lowest shall be the quantum of loan. The maximum loan amount shall be Rs.5 lacs or 75% of the assessed price of the vehicle whichever is less. F. Interest: At present rate of second hand vehicle loan is 13% and further it shall be determined by financing bank from time to time and debited to loan account. Interest is charged as contract made with the loanee. Penal interest @ 2% over and above the normal rate shall be charged in case of default, on the default amount for the default period. 0.5% concession is allowed to women

G. Period of Loan/Repayment of Loan Maximum period of loan shall be five years. Repayment of the loan shall, be in monthly equated installment. In case of urban borrowers and half yearly equated in

case of rural borrowers due on 30th June and 31st December. Moratorium period of one month shall be allowed under the scheme. H. Security The security for the loan is 1st Hypothecation of the Vehicle in the name of the bank entered in RC of the vehicle. Two good sureties residing in area of operation of the bank and having a PAN Card in case of urban areas and two sureties of the status of borrower in case of rural area. The sureties shall be enrolled as nominal member of the bank under the Act. OR A collateral security to the extent of 100% of loan in the shape of assignment of life insurance policy, pledge of NSCs, KVPs, Term Deposits of own bank, in case the borrower is not willing to give sureties. I. Disbursal of Loan The loan will be disbursed after the appraisal of all legal documentation completed and borrower having deposited his share of margin in the SB account. The disbursement will be third party payment by way of banker cheque/Demand Draft in the name of the seller (owner of the vehicle) delivered through and under receipt from borrower. J. Fee and Other Charges A processing fee of 0.25% of the loan amount sanctioned shall be charged. K. Documentation Documents Identity proof Residential proof Two self attested recent passport size photographs of the applicant and sureties each Photocopy of the PAN Copy of Income Tax Return for last three years duly acknowledged by ITO Photocopy of the Driving License 7) b. c. d. Loan application form Loan agreement DP Note
e.

A photocopy of the RC of the Vehicle and case of

rural people copy of Fard, Jamabandi.

Hypothecation deed/Collateral Security/Agreement Bond Sureties.

from

f.

Agreement of Sale. g. Certificate of present value of car assessed by Surveyor of company guide or as determined on the basis of guidelines of the Punjab Govt. on the Subject. L. Insurance Comprehensive insurance in the joint names of the borrower and the bank shall be made at the cost of the borrower. In case of default bank will be at liberty to get a policy renewed by debiting to loan account of the borrower. M. Dispute If at any stage any dispute raised, it shall be settled/referred for arbitration under the provisions of Punjab Coop.Societies Act. 1961 and rules frames there under and bye-laws of the bank.

BRANCHES
A part from its Head Office at Patiala, the bank has been in the service of the people through a network of its 43 branches spread all over the district of Patiala. 16 out the 43 branches of the bank are working at the focal points. Earlier 8 branches were shifted on 14-3-1993 to CCB Fatehgarh Sahib on re-organization of the district. 3 branches were shifted on 1-10-2006 to CCB SAS Nagar Mohali.

Suggestions

1.

More Branches should be opened in the Rural and Urban Areas to Achieve the targets. Samana Sub division is neglected in this Area as only Samana and Gajewas Branches are functing.

2.

Since 1980 no recruitment made in this Bank. Staff should be recruited for smooth working.

3. 4.

Branches may be computerized. Rate of Interest may be reviewed periodically as Mai Bhago Scheme Advances at Rate of 8.5% Bank borrowers funds from Apex Bank at the rate of 10.5%.

5.

11 Single men Branches are functioning so, there is a great operation risk in the Bank.

6.

Individual Loans overdue are increasing in the Loan Portfolio N.F.S/C.C.T. / Consumer Loan.

7.

ATM May be installed, locker facility is provided in all the Branches.

THE PATIALA CENTRAL COOP. BANK LTD., PATIALA. LIST OF FINANCIAL PARAMETERS AS ON 31/03/2010 1.(a) Share Capital Share Outstanding Capital As on 31/03/2008 Members State Govt. 876.23 90.00 Outstanding As on 31/03/2009 1082.97 70.00 Outstanding As on 31/03/2009 5277.36 Outstanding As on 31/03/2009 11570.23 19490.85 31061.08 Outstanding As on 31/03/2010 1304.26 70.00 Outstanding As on 31/03/2010 6164.23 Outstanding As on 31/03/2010 14264.91 20935.13 35200.04 Outstanding As on 31/03/2010 30145.11 (Rs.in Crores) %age Change %age Change (+/-) (+/-) (31/03/08 To (31/03/09 To 31/03/2009) 31/03/2010) 23.59 20.43 -22.22 -(Rs.in Lacs) %age Change %age Change (+/-) (+/-) (31/03/08 To (31/03/09 To 31/03/2009) 31/03/2010) 0.72 16.81 %age Change (+/-) (31/03/08 To 31/03/2009) 2.15 17.30 11.16 Growth Rate (31/03/08 To 31/03/2009) 10.21 (Rs.in Lacs) %age Change (+/-) (31/03/09 To 31/03/2010) 23.29 7.41 13.33 (Rs.in Lacs) Growth Rate (31/03/09 To 31/03/2010) 14.47

1.(b) Own Funds Own Outstanding Funds As on 31/03/2008 5239.28 2.(a) Deposits Time-wise Outstanding As on 31/03/2008 Dem. Deposit Time Deposit TOTAL 11327.18 16616.43 27943.61

2.(b) Deposits Source-wise SourceOutstanding Outstanding wise As on As on Deposis 31/03/2008 31/03/2009 Individuals Coop. Soci etie s Other Sou rces TOTAL 2.(c) 1713.32 1592.98 23892.84 26333.50

1873.22

-7.02

17.59

2337.45

3134.60

3181.71

34.10

1.50

27943.61

31061.08

35200.04

11.16

13.33

Share of Deposit in the District As on 31/03/2008 % age share of 3.72 Deposit of CCB in district. Growth rate to total 14.38 deposits in district Growth rate of 16.30 deposits of CCB

As on 31/03/2009 3.20 29.11 11.16

As on 31/03/2010 3.23 9.35 13.33

2.(d)

Deposits (No.of Accounts)

Deposit A/cs at the beginning of the year Deposit 1166 1189 1092 A/cs 7 1 2 opened during the year Deposits A/cs closed during the year 19682 7996 9090 Deposit 153510157405 s A/cs at the close of the year No. frill A/cs opened during the year No.of Sehkari Bima Yozna A/cs opened during the year No.of deposit A/cs opened in the deposit campaign week, if any, during the year

01/04/2007 to 31/03/2008 161525

01/04/2008 to 31/03/2009 153510

01/04/2009 to 31/03/2010 157405

-1725 --

-1099 --

-2956 --

2.(e) Average Deposits: To be calculated on monthly outstanding balances basis. During 01/04/07 to 31/03/2008 Avg. Deposit 24972.12 During 01/04/08 to 31/03/2009 28703.77 During 01/04/09 to 31/03/201 0 33249.88 %age Change (+/-) (31/03/08 To 31/03/2009) 14.94 %age Change (+/-) 31/03/09 To 31/03/2010) 15.84

3 (a) Borrowings : All types of Borrowings (Specify them). Borrowings Outstanding As on 31/03/2008 Outstanding As on 31/03/2009 Outstanding As on 31/03/2010

(Rs.in lacs) %age Change (+/-) (31/03/08 To 31/03/09) -88.58 38.27 -%age Change (+/-) 31/03/09 To 31/03/10) 735.75 -2.67 --

From PSCB From NABARD From any other

10619.35 32275.92 --

1212.79 44628.80 --

10135.85 43437.97 --

3.(b) Average Borrowings (To be calculated on monthly outstanding balances) (Rs.in lacs) During 01/04/07 to 31/03/2008 During 01/04/08 to 31/03/2009 During 01/04/09 to 31/03/2010 %age Change (+/-) (31/03/08 To 31/03/09) 9.54 %age Change (+/-) 31/03/09 To 31/03/10) 10.17

Average

37505.79

41083.30

45260.69

Borrowing

4.(a) Advances Outstanding Type of Advances Agri. (Crop Loan) R.C.C.(Farmer) C.C. Traders N.F.S. (Comp. Integrated, SRWTO) CD Loan Personal Loan Urban H.Loan Rural H.Loan Vehicle Loan Education Loan Loan Agst.Property Loan Against Coop.Rent Loan for Earnest Money Second hand Car Loan Two Wheelers Loan to Farmers Mini Dairy Loan Commercial Dairy Govt. Sponsored Loan to Staff (on which simple intt.) Other Advances (Head-wise Detail) TOTAL : Outstanding As on 31/03/2008 31772.13 10021.74 1952.15 1548.73 1638.00 1471.08 1043.71 2100.75 354.69 28.84 13.54 ---736.17 403.04 --62.71 13487.57 66634.85 Outstanding As on 31/03/2009 37329.01 9975.33 2132.43 1386.24 1776.28 1559.20 1191.93 2110.89 562.40 38.57 106.05 ---745.72 334.03 --79.19 12130.47 71457.74 Outstanding As on 31/03/2010 43501.76 10465.23 1931.09 1195.35 2147.52 1765.61 1269.44 2323.77 838.86 54.49 136.99 10.00 --709.56 275.17 --120.05 15015.05 81759.94

(Rs.in Lacs) Growth Rate (31/03/08 to 31/03/2009) 17.49 -0.46 9.23% -10.49 8.44 5.99 14.20 0.47 58.56 33.73 683.23 ---1.30 -17.12 --26.28 -10.06 7.23 Growth Rate (31/03/09 to 31/03/2010) 16.54 4.91 -9.44 -13.77 20.90 13.24 6.50 10.08 49.16 41.28 29.17 100.00 ---4.85 -17.62 --51.60 23.78 14.42

Other Advances (Head-wise Detail) Type of Advances S.T.N.A.P. Cash Credit Socy. Loan Agst.Deposit Loan Agst. N.S.C. O.D.to Staff U.L.Society M.T.Agri./Conver. S.H.G./ S.G.S.Y. M-Cycle Loan Rural Godown Computer Loan Sway Rojgar Yozna Car Loan Pension Loan Loan for Bank Bld. Mai Bhago Scheme Loan Single Cow C.Cr.Agst.Property Bhai Lalo Scheme TOTAL : Outstanding As on 31/03/2008 2232.95 114.00 1679.13 62.29 240.91 570.73 8382.02 57.20 1.16 9.49 34.53 13.08 12.16 52.99 3.66 19.01 0.35 1.91 -13487.57 Outstanding As on 31/03/2009 2318.12 168.10 597.92 52.22 344.44 559.75 7084.41 59.42 1.59 9.49 30.42 12.83 7.81 34.42 3.36 778.09 1.88 45.52 10.68 12130.47 Outstanding As on 31/03/2010 2187.24 239.91 711.36 40.36 384.44 532.66 9782.02 93.63 1.05 12.34 27.87 11.10 11.41 17.29 3.11 906.61 3.16 15.67 33.82 15015.05

(Rs.in lacs) Growth Rate (31/03/08 To 31/03/2009) 3.81 47.45 -64.39 -16.16 42.97 -19.24 -15.48 3.88 37.07 --11.90 -1.91 35.17 -35.04 -8.20 3993.06 437.14 22.83 --10.06 Growth Rate (31/03/09 To 31/03/2010) -5.65 42.72 18.97 -22.71 11.61 -4.84 38.08 57.57 -33.96 30.03 -8.38 -13.48 46.09 -49.77 -7.44 16.52 68.09 -65.58 216.67 23.78

4.(b)

No. of Loan A/cs 01/04/2007 to 31/03/2008 29813 3840 01/04/2008 to 31/03/2009 30362 6290 01/04/2009 to 31/03/2010 31804 4961

Indivi.Loan A/cs at the beginning of year Indivi.Loan A/cs opened during the year

Indivi.Loan A/cs closed during the year Indivi.Loan A/cs at the close of the year Total No.of members of PACS (at the close of the year)

3291 30362 142595

4848 31804 146879

5231 31534 150755 (Rs.in Lacs) % age Change (+/-) 31/03/09 to 31/03/2010) 10.35 As on 31/03/10 9152.76 1070.00 (Rs.in Lacs) % age Change (+/-) 31/03/09 to 31/03/2010) 11.37

4.(c) Average Advances (To be calculated on monthly outstanding balances) During During During % age Change 01/04/07 to 01/04/08 to 01/04/09 to (+/-) 31/03/2008 31/03/2009 31/03/2010 (31/03/08 To 31/03/2009) Avg.Advances 58872.80 65380.29 72150.22 11.05 5. Investments (Specify them) Type SLR Investments Non SLR Investments As on 31/03/08 6982.56 344.42 As on 31/03/09 7558.62 494.00

6. Average Working Fund (Based on monthly outstanding balances) Average As on As on As on % age Change Working 31/03/2008 31/03/2009 31/03/2010 (+/-) (31/03/08 Fund To 31/03/2009) 70175.20 7. Non Banking Assets As on 31/03/2008 -2.52 As on 31/03/2009 -2.52 78463.52 87385.73 11.81

Total Amount upto 7 years of acquisition Above 7 years of acquisition 8. Non Fund Income Year

(Rs.in lacs) As on 31/03/2010 -2.52

Total Income 57.30 53.53 84.67

(Rs.in lacs) Growth Rate -7.32 -6.58 58.17

As on 31/03/2008 As on 31/03/2009 As on 31/03/2010

Net Profits Year As on 31/03/2008 As on 31/03/2009 As on 31/03/2010 Growth Rate over last year (31/03/2008 to 31/03/2009)

(Rs.in lacs) Net Profit Profit before Tax Profit after Tax 138.39 133.43 180.45 -3.58 107.49 40.28 125.45 -62.53

Growth Rate over last year (31/03/2009 to 31/03/2010) 10.(a) Particulars Interest Paid on deposits Interest Paid on Borrowings Intt.received on Loans&Advances Intt./Dividend Received on Investments. 10.(b) Interest Paid / Received Outstanding Outstanding As on As on 31/03/2008 31/03/2009 1476.83 2038.50 4487.98 547.98 1828.90 2251.39 4770.99 628.78

35.24

211.44

Outstanding As on 31/03/2010 2090.80 2262.52 5499.14 683.25

(Rs.in lacs) % age % age Change (+/-) Change (+/-) (31/03/08 to (31/03/09 to 31/03/2009) 31/03/2010) 23.84 10.44 6.30 14.74 14.32 0.49 15.26 8.66

Interest Subvention 1/4/07 to 31/3/08 122.13 116.58 1/4/08 to 31/3/09 42.14 -01/04/09 to 31/03/10 157.64 42.14 (Rs.in lacs) % age % age Change Change (+/-) (+/-) 31/3/08 31/03/09 to 31/3/09 to 31/3/10 0.92 -8.76 7.78 4.00 -4.20 -3.77 -4.04 -22.58 -10.75 -63.64 -12.50 -24.88 -5.11 -1.41 -4.23 4.38 -7.60 2.76 24.40 -85.00 42.86 9.09 -4.21

Interest Subvention Claimed Interest Subvention Received 11.

Financing Marginal/Interest Spread During 01/04/07 to 31/03/08 Average Cost of Borrowing Average Cost of Deposits Weighted Avg. Cost of Funds Avg. yield on Loans & advances Average yield on Investment Weighted Avg. yield on Assets Financing Margin (vi-iii) COM (% age to A.W.F.) Risk Cost Misc.Income as %age to A.W.F. Break Even Point (viii+ix-x) /vii Break Even Point 5.43 5.91 5.00 7.62 8.48 7.17 2.17 1.58 0.55 0.08 2.05 74402.3 0

During 01/04/08 to 31/03/09 5.48 6.37 5.20 7.30 8.16 6.88 1.68 1.41 0.20 0.07 1.54 70598.81

During 01/04/09 to 31/03/10 5.00 6.28 4.98 7.62 7.54 7.07 2.09 1.41 0.37 0.10 1.68 67625.36

i ii iii iv v vi vii viii ix x xi

12.

Cost of Management As on 31/03/08 899.44 208.03

As on 31/03/09 891.67 216.92

As on 31/03/10 999.95 228.09

(Rs.in lacs) % age Change % age Change (+/-) 31/03/08 (+/-) 31/03/09 to 31/3/2009 to 31/3/2010 -0.86 4.27 12.14 5.15

Establishment Cost Other Cost

Total 13.

1107.47

1108.59

1228.04

0.10

10.77

Branch Analysis As on 31/3/08 As on 31/3/09 44 -705.93 1624.03 2329.96 122.72 1.22 25.20 2 0.92 11 As on 31/3/10 44 5 800.00 1858.18 2658.18 140.51 1.92 27.91 2 2.85 14

(Rs.in lacs) % age Change % age Change (+/-) 31/03/08 (+/-) 31/03/09 to 31/3/2009 to 31/3/2010 --11.16 7.23 8.39 7.22 -6.15 0.12 --62.30 ---13.23 14.42 14.09 14.50 57.38 10.75 -209.78 21.43%

Total No.of Branches No.of Branches in Loss Deposit Per Branch Loans and Advances per Branch Business per Branch (3+4) Intt. Income Per Br. Non Fund Income Per Branch Cost of Management Per Branch No.of Branches whose COM is above 2% of Ag.Wrk.Funds Profit Per Branch No.of Single-man Br.

44 2 635.08 1514.43 2149.51 114.45 1.30 25.17 2 2.44 --

Employee Analysis Outstanding As on 31/3/2008 Per Employee increase 20.61 in Deposit Per Employee increase 47.94 in Loans Per Employee increase 68.55 in Business (1+2) Business Per 497.77

14.

Outstanding As on 31/3/2009 16.67 25.79 42.46 548.23

Outstanding As on 31/3/2010 23.25 57.88 81.13 657.08

(Rs.in lacs) %age Change (+/-) 31/03/08 to 31/03/2009 -19.12 -46.20 -38.05 10.14

%age Change (+/-) 31/03/09 to 31/03/2010 39.47 124.43 91.07 19.85

Employee Yield Per Employee Profit Per Employee Intt. Income Per Emp. Salary Per Employee No.of Loan A/cs per Employees No.of Deposit A/cs Per Employee Common Cadre Employees Non Common Cadre Employees Govt. Employees Total Employees

26.80 0.56 26.50 4.73 910 808 13 177 -190

29.16 0.21 28.87 4.76 955 841 11 175 1 187

35.21 0.70 34.73 5.62 1024 894 10 168 -178

8.81 -62.50 8.94 0.63 4.94 4.08 -15.38 -1.13 --1.58

20.75 233.33 20.30 18.07 7.23 6.30 -9.09 -4.00 --4.81

Non Performing Advances No.of Accounts As on As on As on 31/03/08 31/03/09 31/03/10 Agri. (Crop Loan) 1 2 1 RCC (Farmers) 418 818 448 CC Traders 723 899 778 NFS Loans (Comp. 2048 2124 2000 Integrated SRWTO) C.D.Loan 2514 2446 2498 845.91

15.(a)

As on 31/03/08 6.46 505.37 412.61 682.49

(Rs.in lacs) Amount As on 31/03/09 62.40 1130.25 523.36 660.49

As on 31/03/10 46.68 698.46 444.24 592.24

790.55 824.08 Personal Loan Urban House Loan Rural House Loan Vehicl e Loan 62 72 105 67.67 57.24 119.49 Education Loan -- -- -- -------- -------------322 39 175 418 75 270 465 87 243 243.46 84.61 292.80 327.52 186.95 400.55 366.60 223.46 338.75

Loan Agst. Property -Loan Agst.Coop.Rent Loan for Earnest Money Secondhand -- -- --Car Loan

---

Two wheelers Loan to Farmers 323 585 Mini Dairy Loan 154 Commercial Dairy ------Govt.Sponsord Loans (specify them) Other Advances (*) (Head-wise Detail) TOTAL :6967 8068 7569 4163.09 5179.04 4583.44 Sub-Standard Assets Doubtful Assets :-188

637 158

81.42 117

138.68 233.12

160.65 230.61

165.98

-200

-190

-707.17

-670.44

-602.81

4480 540 487 571 610.52 643.99 757.71 Unsecured 1872

4587 1

3544 1

2396.34 2.82

3070.48 2.82

2252.18 2.82

2935 3388 585.51 904.78 1040.89 Secured : Overdue from 3-4 yrs 239 228 206 254.67 315.67 290.13 Overdue from 4-6 yrs 185 153 209 258.30 190.45 225.60 Overdue above 6 yrs. 116 106 156 97.55 137.87 162.77 Loss Assets 75 59 66 570.72 559.75 532.66

15.(a) Non Performing

Advances (*) (Detail of Other Advances)

No .of Accounts A mount (Head-wise Detail) (Other Advances) As on 31/03/08 As on 31/03/09 As on 31/03/10 As on 31/03/08 As on 31/03/09 As on 31/03/10 STNAP/Other Socy 11 14 7 32.99 44.21 11.45 C.C.Goods 1 1 1 0.50 0.50 0.50 Precurement 1 6 21

L & C Societies C.C.Indl. Verified Bills 5 5 4 8.93 8.33 7.96 Computer Loan 1

4 17

3 18

29.37 12.37

4.86 7.01

4.27 7.78

2 -0.13 0.58 -S.H.G. O.D. to Staff Sway Rojgar Rural Godown M.T.A.P. 16 4 35 1 7 2 -26.60 4.38 -S.G.S.Y. 2 3 1 0.39 2.16 1.88 U.L. Societies 75 15.(b) Legal Action During 2007-08 5159 3379 During 2008-09 5786 3690 During 2009-10 5939 4289 38 6 48 1 59 40 4 44 1 66 7.46 3.01 8.80 2.73 570.72 16.63 6.40 10.06 2.73 559.74 17.39 4.22 9.15 2.73 532.66

Arbitration cases Prepared Arbitration cases Awarded 16. Head 17. 18. No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Sr.No. 1. 2.

Amount still to be Disbursed from the Head Conversion (Core Banking Solutions) Amount as on 31/03/2009 Amount as on 31/03/2010 -Nil-NilDetail of Expenditure Profitability and Productivity Ratios Ratios Net Profit / Own Fund Ratio Net Profit / Average Working Funds Interest Income/Average Working Funds Interest Income / Total Investments (Including Loans, Advances & Investment)(Avg.) Establishment Expenditure / Total Income Establishment Expenditure/Total Expenditure Cost of Management / Total Expenditure Interest Expenditure / Total Expenditure Total Expenditure / Total Income Provision for N.P.A. / Total Income Cost of Management / Total Income Cost of Management /Average working Fund Increment in Profit / Increment in Assets Ratios Capital Adequacy Ratios N.P.A./ Total Advances 2007-08 2.05 0.15 7.18 7.71 17.66 18.04 22.21 70.51 97.88 6.39 21.74 1.58 0.22 2008-09 0.76 0.05 6.88 7.39 16.35 16.47 20.48 75.37 99.26 2.40 20.32 1.41 -0.86 2008-09 4.19 7.25 2009-10 2.04 0.14 7.07 7.61 15.96 16.28 20.00 70.88 98.00 7.82 19.60 1.41 0.95 2009-10 4.25 5.61

Solvency Ratios : 2007-08 6.81 6.25

3. S.No. 1. 2. 3.

Own Funds / Average Working Funds Ratios

7.47

6.72 2008-09 230.05 90.96 78.41

9.52 2009-10 232.27 92.15 79.82

Efficiency Ratios : 2007-08 C.D. Ratios 238.46 Recovery % age (Separately for Crop 92.85 Loan, Non Farm Sector & Clean Loan) Agri. Advances/Total Advances (% age) 77.87

AUDITED BALANCE SHEET OF THE PATIALA CENTRAL COOP.BANK LTD., PATIALA. FOR THE YEAR ENDING 31.03.2010 FORM OF BALANCE SHEET (See Section 29) Previous Year Figures 31.3.09 250000000.00 CAPITAL & LIABILITIES 1. CAPITAL i) Authorised Capital Share 2500000 of Rs.100/- each ii)Subscribed Capital 1374261 shares of Rs.100/- each iii)Amount called up on share of Rs.100/each less calls unpaid Amount 31.03.2010 250000000.00 250000000.00 TOTAL

a) Indiv idual 108297300.00 b) Cooperative Institutions 130426100.00

7000000.00 77905574.58 5326ii) 5546 1933Agric 4010 .22ultur .22 e (Cre dit) 10631784.87 iii) Building Fund 10631784.87 i)

c) State Government 2. RESERVE FUND & OTHER RESERVE Statutory Reserve

7000000.00 87396549.58

137426100.00

3273702.96 82854.07 109145265.48 4270971.78 2519829.06 32622.81 4835887.73 9544051.43 3495573.87 4824166.07 3736982.75 214988.00 120634521.57

iv) Dividend Equilization Fund v) Special Bad Debt Reserve vi) Bad & Doubtful Debt Reserve vii) Other Fund & Reserve a) Coop.Education & Propaganda b) Share Transfer Fund c) Risk Fund S.F.D.A. d) Gratuity Fund e) Common Good Fund g) Coop.Development Fund h) Primary Coop.Socs.Fund i) Bad and Doubtful Debt Fund j) Pension Fund k) Provision for NPAs 3. PRINCIPAL/SUBSIDIARY PARTNERSHIP FUND ACCOUNT i) Central Coop. Banks

3757078.56 82854.07 110390521.21 4351534.78 2519829.06 32622.81 4835887.73 9664895.43 2752166.87 4120010.07 3736982.75 80563.00 164134521.57 463951812.58

--

-ii) Prim ary

Agric ultur e Cred it -iii) Other Societies

4. DEPOSIT & OTHER ACCOUNTS

i) 1886832794.33 b -) Cent ral Coo perat ive Bank s 62252492.64 c) Other Societies 57772093.32 2093512904.24 ii) -Saving Bank Deposit

Fixed Deposit a) Individuals 2035740810.92

1034000373.72 a) Individuals 1269640307.28 -b) Central Cooperative Banks

83370370.39 -2597 a 2747 6866) 6498 .96Indivi .26 dual s

c) Other Societies iii) Current Deposit

118420155.01

1388060462.29

-b) Central Cooperative Banks

13675240.08 -3629816148.37 3629 8161TOT 48.3AL : 7B/f 4121 0359 12.7 2

c) Other Societies iv) Money at Call & Short Notice TOTAL : C/f

10608135.35 --

38084633.61 -4121035912.72

5. BORROWINGS

3839878118.62 --590263564.00 -------

I) From Reserve Bank of India/State/Central Coop.Banks A) Short Term Loans, Cash Credits and Overdrafts of which secured against: i) Govt. & Other approved securities ii) Other Tangible Securities B) M.Term Loans of which secured against: i) Govt. & Other approved securities ii) Other Tangible Securities C) Long Term Loans of which secured against i) Govt. & Other approved securities ii) Other Tangible Securities II) From State Bank of India A) Short Term Loans, Cash Credits and Overdrafts of which secured against: i) Govt. & Other approved securities ii) Other Tangible Securities B) Medium Term Loans of which secured against: i) Govt. & Other approved securities ii) Other Tangible Securities C) Long Term Loans of which secured against

4399593307.21 --782549644.00 -------

---

---

---

---

---

i) Govt. & Other approved securities ii) Other Tangible Securities III) From State Bank of India A) Short Term Loans, of which secured against

---

i) -- Govt. & -Other approved securities -ii) Other Tangible Securities --B) Medium Term Loans of which secured against: --

--154017000.00 ---

i) Govt. & Other approved securities ii) Other Tangible Securities C) Long Term Loans of which secured against i) Govt. & Other approved securities ii) Other Tangible Securities IV) Loans Other Sources (Sources & Secur.to be specified) 6. Bill for collection being bills receivable as per contra 7. Branch Adjustments 8. Overdue Interest Reserve 9. Interest Payable

--176099014.53 --5358241965.74

5104254.06 6428293.69 46860463.06

5663620.87 17787960.97 41905943.99

5663620.87 17787960.97 41905943.99

21510250.56 8293878092.36 TOTAL : C/f 0.00 9565925986.99

i) On Deposits ii) On Borrowings

21290582.70 21290582.70

8293878092.36 TOTAL : 9565925986.99

B/f

10. Other Liabilities 2117752.20 20000000.00 ii) 23000000.00 Standard Assets Provisions 7576166.50 iii) Sundries Payable 7177258.97 26791207.24 iv) Other Payable 16041739.12 9207000.00 v) Imbalance receivable 9207000.00 61122055.44 11. Profit & Loss Account i) Bills Payable 5696057.35

4028127.60 8363598345.90

Add: Profit for year brought from the P&L A/c Gr and Total:

12782360.33

12782360.33 9639830402.76

Prev PRO A TOT ious PER mou AL Year TY nt AND ASS ETS Figures 31.3.09 PROPERTY AND ASSETS 1. CASH 31.03.2010

224481617.22 In hand and with Reserve Bank, State Bank of India, State 235584141.26

Bank of India, State Cooperative Bank & Central Coop.Bank

2. BALANCES WITH OTHER BANKS 0.00 0.00 435128154.06 i) Current Deposits ii) Saving Bank Deposits iii) Fixed Deposits 3. MONEY AT CALL & SHORT NOTICE 4. INVESTMENTS i) In Central & State Govt. Securities (at Book Value) (Face Value), (Market Value) 676336476.76 911920618.02

320734000.00

292940000.0 0

0.00 494iii) 530 345 000Sha 000 940 00.0res 00.0 000. 0in 0 00

ii) Other Trustee Securities

Coo pera tive Insti tuti ons othe r than in Ite m(5 )bel ow iv) Investment (To be specified)

5. Investments out of Principal/SubsidiaryState Partnership fund

----

5353284385.56

In Shares of :i) Central Cooperative Banks ii) Primary Agri. Cooperative Societies iii) Other Societies 6. ADVANCES i) Short Term, C.C,Overdrafts & Bills discounted of which secured against. a) Govt. & Other approved securities 43501.76 Lacs

6000959255.29

b) Other tangible securities Rs.14735.52 Lac.of the advances amount, due from individuals 13548.02 Lacs

Of the advances, amount overdue Rs.5596.70 Lacs

c) Considered Bad & Doubtful of recovery Rs.532.66 Lacs

1454288926.46

ii) M.T.Loans of which secured against : a) Govt. & Other approved securities Rs.9782.02 Lacs b) Other tangible securities Rs.2549.52 Lacs.Of the advances amount, due from individuals Rs.7234.80 Lacs

1795725111.04

Of the advances, amount overdue Rs.2196.75 Lacs c) Considered Bad & Doubtful of recovery - Nil -

338200659.35 iii) Long Term Loans for which secured against : 376774802.10 8173459168.43 a) Govt. & Other approved securities Rs.3767.75 Lacs

b) Other tangible securities Rs.3767.75 Lacs.

c) Of the advances amount, due from individuals 3767.75 lacs

of the advances, amount overdue Rs.223.68 Lacs

Considered Bad & Doubtful of recovery - Nil -

8175517742.65 TOTAL : 9431319786.45 C/f

8175517742.65 TOTAL : 9431319786.45 B/f

7. INTEREST RECEIVABLE

6468644.00 i) On Deposits & Investment 24178297.00 24178297.00 132475484.60 ii) On Loans of which overdue Rs.419.06 Lacs considered 137254051.36 137254051.36 Bad & Doubtful of recovery Rs.103.46 Lacs.

5104254.06 8. BILLS RECEIVABLE BEING BILLS FOR COLLECTION AS 5663620.87 5663620.87 PER CONTRA

0.00 9. BRANCH ADJUSTMENTS

1309584.76 10. PREMISES LESS DEPRECIATION 1790301.80 1790301.80 18127834.13 11. FURNITURE & FIXTURES LESS DEPRECIATION 16283699.92 16283699.92 12. OTHER ASSETS (to be specified)

4214382.00 i) Interest Relief NABARD 4214382.00 6432.71 ii) Library 5884.46 520424.93 iii) Stationery in Stock

436131.23 136783.00 iv) Security with P & T Department 139523.00 841572.76 v) Sundry Debtors 1393664.12 4687651.75 vii) Recoverable from Govt.of India (Debt Waiver Scheme-2008) 4143982.75 0.00 viii) Other Receivable 436489.25 628219.00 ix) Prepaid expenses/Insurance 368365.00 505806.00 x) Robbery 505806.00 98340.00 xi) Leave Salary Recoverable 458953.00 3748189.55 xii) Embezzlement 2030464.55 9207000.00 xiii) Suspence Imbalance Socs. 9207000.00

23340645.36 8363598345.90 9639830402.76 8363598345.90 9639830402.76

To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and III Phase I The General Bank of India was set up in the year 1786. Next came dSTRICT MANGAER

Mission Promotion and sustainance of economic interest & providing easy finance, cost effective and quality banking services ot customer & PACs. History The Punjab State Cooperative Bank was established on 31st August, 1949 at Shimla vide registration No. 720 has a principle financing institutionof the cooperative movement in Punjab. In 1951 its Head Office was shifted to Jalandhar from where it moved in 1963 to its present building at Chandigarh. In the cooperative Banking structure, the position of the Punjab State Cooperative Bank is extremely important as the whole credit system revolves around it. It has HYPERLINK "http://pbcooperatives.gov.in/DCCB.htm" \l "local branches" 18 branches and 3 extension counter in Chandigarh. There are 19 HYPERLINK "http://pbcooperatives.gov.in/DCCB.htm" \l "dccbs" District Central Cooperative Banks having 813 branches all over Punjab, mostly in rural areas of the State. One new Central Cooperative Bank and 110 new bank branches have been opened during the last four years, 1997-2001.