Awareness about debt instrument

1
SUMMER INTERNSHIP PROJECT (SIP) -2014
A PROJECT REPORT
ON
“Awareness About Debt Instrument”
Of
Rajkot Nagrik Shakari Bank
Submitted to;-
Marwadi education foundation’s group of institutions
In partial fulfillment of the requirement of the award for the degree of
. Master of business administration under
GUJRAT TECHNOLOGICAL UNIVERSITY
Under the guidance of:-
Faculty guide: - company guide:-
Prof. Niraj Vyas Manager P.D.VYAS
Submitted by:-
Student name: - Komal Pandya
Enrolment no: - 138270592092
MBA semester - |||
MARWADI EDUCATION FOUNDATION’S GROUP OF INSTITUTIONS
MBA program
Affiliated to Gujarat technological university – Ahmadabad July -2014

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DECLARATION
I Komal Pandya hereby declare that report for “Awareness about debt instrument of
Rajkot Nagrik Shakari Bank”. Is a result of my own work and indebtness to other work
publication, references, if any have been duly acknowledged.
The survey was conducted by me in this organization as a part of training as prescribed
in the curriculum of MBA program. This has been not submitted to any other university.
Place: Rajkot Student signature
Date: Name of student
___________________

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PREFACE
The MBA programme is well structured and integrated course of management
studies. The main objective of practical training at MBA level is to develop skill in
students by supplement to the theoretical study of organization management in
general. Industrial training helps to gain real life knowledge about the industrial
environment and business practices.
Thus since the industrial training offer variety of advantages, the faculty of
management studies in our respective colleges affiliated by GUJARAT
TECHNOLOGICAL UNIVERSITY to offer such industrial training consist of
interesting and purposeful organization visit. It is thus training programme is held
for the taste of management application in industrial world.
To gain practical exposure, students of MBA SEM-3 are required to undertake
industrial training of six weeks in a company. The training gives in-depth
knowledge to a student about various departments: Finance, Marketing,
Production, and Personnel.

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ACKNOWLEDGEMENT
Knowledge is gained by experience. Since knowledge is a social enterprise, assistance
from a selected become necessity and proves encouraging in the view at limitation of
time and resources for the better understanding of this project.
There are many people who are directly or indirectly involved in making our project
successful. We would like to draw attention to those contribution proved valuable for us
in this project. I shall be weakening in my job if I do not put across my gratefulness to my
professors. I am thankful to PROF. NIRAJ VYAS.
I pay my sincere gratitude to the branch Manager of Rajkot nagrik shakari bank who
allowed me to do the project and provided us the golden opportunity to study its
analyzing awareness about debt instrument of Rajkot Nagrik Shakari Bank. We thank the
staff members of the Rajkot Nagrik Shakari Bank.
Thank you
Yours faithfully
Komal Pandya
INDEX

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Sr. no. Particular Page
no.
Part – 1 General information
1) Industry overview:-
1.1 History 01
1.2 Growth and development 02
1.3 Performance and other statistical data [latest] 04
1.4 Market players in the industry 05
2) Company overview:-
2.1 History 06
2.2 Growth and development 07
2.3 Performance and other key performing data 08
2.4 Products / service overview 09
2.5 SWOT analysis 15
Part – 2 Research work
3) Introduction of the study 16
3.1 Background of the study 17
3.2 Review of literature 24
3.3 Objective of the study 25
4) Research methodology
4.1 Introduction of research methodology 26
4.2 Research design 27
4.3 Sampling method 28
4.4 Sampling size 28
4.5 Sources of data 29
4.6 Data collection method 30

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4.7 Data collection instrument 30
5) Analysis and interpretation of data 31
6) Results and finding 41
7) Suggestions and conclusion 42
8) Limitation of the study 43
9) Bibliography [APA format compulsory] 44
10) Webliography 45
Annexure

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HISTORY
Co-operative banks are an integral part of the Indian financial system. They comprise
urban co-operative banks and rural co-operative credit institutions.
Co-operative banks in India are more than 100 years old. Urban co-operative banks
also referred to as primary banks. Play an important role in meeting the growing credit
needs of urban and semi-urban are of country.
Urban co-operative banks mobiles savings from the middle and lower income groups
and purvey credit to small borrowers, including weaker sections of the society.
Scheduled urban co-operative banks are under closer regulatory and supervisory
framework of the RBI. Rural co-operative banks operate mainly for the benefit of rural
areas, particularly the agricultural sector.
Though much smaller as compared to scheduled commercial banks, co-operative banks
constitute an important segment of the Indian banking system.

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GROWTH AND DEVELOPMENT
The co-operative banks credit institutions constitutes the second segment of Indian
banking system comprising of about 14% of the total banking sector asset.
Bulk of the co-operative banks operate in the rural regions with rural co-operative banks
accounting for 67% of the total asset and 67% of the total branches of all co-operative
banks.
Share of rural co-operative in total institutional credit was 62% in 1992-93, 34% in 2002-
03 and 53% in 2006-07.
Co-operative banks have an impressive network of outlets for institutional credit in India,
particularly in rural India.

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Structure of co-operative banking
INSTITUTION No. NO. OF
BRANCHES
ASSETS
SHARE (%)
A) Rural co-operative
credit structure:-
107497 112891 67
i) Short term 106781 111090 58
State cooperative banks 31 938 15
District central cooperative
banks
369 12928 29
Primary agriculture
cooperative societies
97224 97224 14
ii) long term 716 1800 8.3
State cooperative
agriculture and rural dev.
Banks
20 1104 4.4
Primary cooperative
agriculture and rural dev.
Banks
696 696 3.9
B) Urban co-operative
banks:-
49805 56600 33
1)Primary cooperative
banks
1770 8565 29
2)Primary non agriculture
cooperative societies
48035 48035 4

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PERFORMANCE AND OTHER STATESTICAL DATA
Aggregate deposits of scheduled co-operative banks increased at a compounded
annual average growth rate of 17.8 percent during 1969-99, while bank credit
expanded at a 16.3 percent per annum. Banks‟ investments in government and other
approved securities recorded a 18.8 percent per annum during the same period.
In FY01 the economic slowdown resulted in a Gross Domestic Product (GDP ) growth
of only 6.0 percent as against the previous year’s 6.4 percent. The WPI Index (a
measure of inflation) increased by 7.1 percent as against 3.3 percent in FY00.
Similarly, money supply (M3) grew by around 16.2 percent as against 14.6 percent a
year ago.
The growth in aggregate deposits of the scheduled commercial banks at 15.4 percent
in FY01 percent was lower than that of 19.3 percent in the previous year, while the
growth in credit by SCBs slowed down to 15.6 percent in FY01 against 23 percent a
year ago.
The industrial slowdown also affected the earnings of listed banks. The net profits of
20 listed banks dropped by 34.43 percent in the quarter ended March 2001. Net
profits grew by 40.75 percent in the first quarter of 2000-2001, but dropped to 4.56
percent in the fourth quarter of 2000-2001.

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HISTORY OF THE RNSB
Rajkot Nagrik Shakari Bank LTD is a leading Co-Operative Bank in Gujarat State, India.
Bank was established on 5th October 1953 With a small Capital Of Rs. 4890 and
Membership of 59 persons under the leadership of a Chairman, and as a M.D. Bank
has made tremendous & real progress, Bank became pride of saurashtra region &
achieved new heights in banking as well as Co-operative sector under the leadership of
former Chairman.
During past years bank has played vital & leading role for the development of industries,
business & Economy of Rajkot City, Development and nursing of Co-operative
movement in the Saurashtra region of Gujarat State. Bank was the first co-operative
institute to start functioning in the erstwhile state of Saurashtra. Bank was inaugurated
by "SAHAKAR MAHARSHI”.
Bank has developed in manifolds with the time. Membership (Share Holder) of bank is
mounting towards 2,50,000 which is a record by itself & provides an example of how a
mass movement can be turned into the instrument for social upliftment. Today Bank has
more than 7,20,000+ deposit accounts with a deposit base of 2132.73+ Cr. And 40000+
Establishments/Individuals enjoy the facility of Rs 1494.07+ Cr/ of Advances.
Since inception bank was guided by the people with foresight & vision. Being in the
service sector, with a vision of current & future trends, Bank started automation &
modernization way back in 1987 and by 1995 all the Branches were computerized.
Bank is enjoying the SCHEDULE BANK Status Since 1989. In year 2001 Bank was
registered UNDER MULTI-STATE CO-OPERATIVE SOCIETY ACT. With this Bank has
opened a Branch In Mumbai, Economic Capital of India and become MULTI-STATE
SCHEDULE CO-OPERATIVE BANK.

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GROWTH AND DEVLOPMENT OF THE COMPANY
Rupees in Thousands
Sr.
no.
Year
end
ing
Member
Ship
Share
Capital
Reserve Deposits Advances Profit Dividend
First Five Years
1. 1953 59 5 43
2. 1954 504 12 63 64 (3)
3. 1955 1441 32 1 141 173 2
4. 1956 2227 54 2 240 274 8 4%
5. 1957 2897 87 9 646 517 8 4%
Middle Years
6. 1962 7338 781 305 5953 3647 75 5%
7. 1967 11151 1410 1058 12465 5891 123 5%
8. 1972 14790 1460 2395 31670 24393 377 8.5%
9. 1977 23803 2504 7340 96402 59656 939 9%
0 1982 38622 8799 31934 317808 264176 2704 12%
1. 1987 76232 13437 114571 977493 667704 6606 12%
2. 1992 1,09,349 31450 354342 1665565 1428440 10528 12%
3. 1997 167282 51996 856210 3236843 2444557 24003 15%
4. 1998 181359 59814 984465 3790222 2682943 32774 15%
Last Years
5. 1999 187657 62761 113975 4616510 2914626 43503 15%
6. 2000 192923 72729 132953 5701400 4026602 60622 15%
7. 2001 207579 76375 163813 7053544 4874265 73354 15%
8. 2002 210724 76606 209113 6842202 7926075 91211 15%
9. 2003 214540 76823 225201 7117233 7853329 13093 25%
0. 2004 215556 87154 245473 7981260 4215461 14078 15%

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1. 2005 215888 92277 256701 8371989 4289891 81272 15%
2. 2006 216274 98146 263563 8554541 4309082 83115 15%
3. 2007 218006 19587 251234 8640920 8048418 83555 15%
4. 2008 223063 18480 617967 9839567 6293788 12170 15%
5. 2009 224254 25838 317948 1141633 7604200 17160 15%
6. 2010 228203 29540 317618 1344227 9136904 18028 15%
7. 2011 236573 33396 325965 1583966 1112760 28326 20%

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PERFORMANCE AND OTHER KEY PERFORMING DATA
- RNSB proud that achievements are a result of a conscious planning and
excellent team work, where each team members worked with complete
dedication to the bank.
ACHIVEMENT IN BANKING:
1) DEPOSIT:
As can be observed from the above deposits, went up from Rs.2132.73 cr. to Rs.
2572.13 cr. a rise Rs. 439.40 cr. in percentage terms 20.60%.
2) ADVANCES:
Advances went up from Rs. 1494.07 cr. to Rs. 1679.29 cr. a rise Rs. 185.22 cr. in
percentage terms 12.40%.
3) NET PROFIT:
Net profit went up from Rs. 34.06 cr. to Rs. 39.37 cr. a rise Rs. 5.31 cr. in percentage
terms 15.59%.

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PRODUCT OVERVIEW
1) DEMAND DRAFT SERVICE:-
Rules and schedule of the charges for draft services:
DRAFTS ISSUED WITH CHARGES
Current A/c With Clear Balance FREE
Saving A/c With Clear Balance FREE
C.C. A/c Up to Its Sanction Limit FREE
Up to Rs. 20,000/- Rs. 12/-
Above Rs. 20,000/- Rs.12/- + Rs.0.60 per Rs. 1000/-
Through CASH Up to Rs.20,000/- Rs. 17/-
Through CASH Above Rs. 20,000/- Rs. 17/- + Rs. 0.85 Per Rs.1000/-
Institutional Customer / Trust A/Cs Power with GM/ Director Board
FOR ANY OTHER LOCATION WE ARRANGE THE DRAFT FROM OTHER BANKS.
DRAFTS ISSUED WITH CHARGES
Up to Rs. 10,000/- Rs. 24/-
Above Rs. 10,000/- Rs.24/- + Rs.2.25 per Rs.1000/-

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2) MT/TT/ABB (ANY WHERE BRANCH BANKING) SERVICES:-
Bank is offering speediest Transfer of Funds through Mail Transfer / Telephonic
Transfer.
Schedule of Charges
AMOUNT CHARGES
Transferred up to Rs.25,000 Rs. 25.00 + telephone charges
Above Rs. 25,000 <bRs.8.00/10000 + telephone
charges</b
Charges will be increase for Cash Transaction.
3) O.B.C., R.T.G.S. & NEFT
Bank is offering speediest collection of outstation Cheques/Bills. Bank is also offering
RTGS/NEFT services.:-
CHARGES FOR R.T.G.S.(Inward R.T.G.S. Free of charge)
AMOUNT CHAGRES
Rs. 2 Lacs to Rs. 5 Lacs Rs.28.00
More than Rs. 5 Lacs Rs. 56.00
CHARGES FOR NEFT(Inward NEFT Free of charge)
AMOUNT CHARGES
Up to 10,000 Rs. 3.00
10,000 to 1 Lac Rs 6.00
1 Lac to 2 Lac Rs. 17.00
Above 2 Lacs Rs. 28.00
Collection Of Bills (I.B.C)

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AMOUNT OF BILL ON OUR BRANCHES ALL OTHER LOCATION
Up to Rs. 5000 Rs. 14.00 Rs. 28.00
From Rs. 5001 to 10,000 Rs. 28.00 Rs. 56.00
From 10,001 to 1 Lac Rs. 56.00 Rs. 112.00
For Rs. Above 1 Lac Rs.112.00 Rs.168.00
4) CURRENT ACCOUNT
This Account Can be Opened for Any Business Establishment Like.
- Proprietorship Business
- Partnership Business.
- Pvt. Limited Company.
- Limited Company.
- Any Other Institute / Trust / Co-Soc etc.
- Any Individual - Single or Jointly
- Minimum Balance is Rs. 1000
- Nomination facility is Available.
- Lowest Service Charges In the Banking Sector.
5) SAVING ACCOUNT
- Any Individual Can Open This Account.
- Maximum 3 Names Are Allowed In Joint Account.
- Minimum Balance is Rs. 300.
- Institute / Co-Soc./ Mandli/Trust Can Open This Account.
- Account Can be Opened by Minors too.
- Maximum 8 Withdrawals are allowed during the Month.
- Current Rate Of Interest is 4.00 % Subject to Change as per RBI’S Rules.
- No Cheque book Charge is Charged for Regular Usage.
- Extra Cheque books are Chargeable.
- Duplicate Passbook is Chargeable.

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6) SPECIAL SAVINGS
Individual who are not literate and uses their thumb impression instead of
signature can open this type of saving account.
- Any Individual Can Open This Account.
- Minimum Balance is Rs. 50.
- Institute / Co-Soc./ Mandli / Trust Can Open This Account.
- Account Can be Opened by Minors too.
- Maximum 3 Withdrawals are allowed during the Month.
- Current Rate Of Interest is 4.00 % Subject to Change as per RBI’S Rules.
- Cheque book facility introduced.
- Extra Cheque books are Chargeable.
- Duplicate Passbook is Chargeable.
7) RECURRING
Recurring Deposit Account. Ideal Saving Scheme for Salaried Class Investor.
Current Rate Of Interest.
12 Months 9.00%
24 Months 9.00%
36 Months 9.00%
60 Months 9.00%
- Any Individual Can Open Recurring Deposit Account.
- Minimum Amount of Monthly Installment is Rs. 100/-.
- Institute / Co-Soc./ Mandli / Trust Can Open Recurring Account.
- Recurring Deposit is Accepted For Minors too.

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- Current Rate Of Interest is Subject to Change.
- Payment exceed by Rs. 20000 at the time of maturity will be paid to
A/c Pay Order Only.
- Select Maturity Period & Pay Installment Regularly.
- Irregularity in the deposition of installment attracts penalty.
- Deposit installment on any day of the month.
- No TDS - Irrespective of any amount.
8) FIXED DEPOSIT ACOUNT SCHEME
Significant Schemes:-
Re-investment
In this scheme interest is re-invested & compounded on quarterly
basis
Monthly Regular
Income
In this scheme Interest is paid on monthly basis. Ideal scheme for
pensioner / retired / senior citizen
Short Term
Earn Interest on Ideal money by depositing in this scheme for Short
duration i.e. 46 Days to 364 Days
Quarterly
Income
In this scheme Interest is paid on Quarterly/Half Yearly. Ideal
scheme for Trust/ Institute/ senior citizens
For Share Holders Members:-
No TDS Will Be Deducted For Share Holder Member. So Do Give Your Membership No
at the time of Opening of the Account.

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SWOT ANALYSIS
STRENGTH:-
- RNSB gives many social contribution for ex.
1) Donation to educational institution and hospitals
2) Loans to educationally unemployed youth.
3) Promotion of sports activity etc…
WEEKNESS:-
- Technologically it is for behind from other bank.
- It is the same for promotion policy hence there is less no. of efficient staff at
senior levels.
OPPORTUNITY:-
- Co-operative sector is developing so it will have opportunity to develop it
business.
- Provide better quality services to its members and so it can attract big client.
THREATS:-
- Continuous technology up gradation and increasing customer awareness.
- As no. of players are coming in this sector that’s why competition is increasing
day by day.

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INTRODUCTION OF THE STUDY
Lending is the principal business activity for most co-operative banks. The loan portfolio
is typically the largest asset and the predominate source of revenue. As such, it is one
of the greatest sources of risk to a bank’s safety and soundness. Whether due to lax
credit standards, poor portfolio risk management, or weakness in the economy, loan
portfolio problems have historically been the major cause of bank losses and failures.
Effective management of the loan portfolio and the credit function is fundamental to a
bank’s safety and soundness. Loan portfolio management (LPM) is the process by
which risks that are inherent in the credit process are managed and controlled.
Because review of the LPM process is so important, it is a primary supervisory activity.
Assessing LPM involves evaluating the steps bank management takes to identify and
control risk throughout the credit process. The assessment focuses on what
management does to identify issues before they become problems.
This booklet, written for the benefit of both examiners and bankers, discusses the
elements of an effective LPM process. It emphasizes that the identification and
management of risk among groups of loans may be at least as important as the risk
inherent in individual loans.

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BACKGROUND OF THE STUDY
Study means what is covered in the problem. Here, the RNSB is selected from the India
for the best performance to provide services and also earned more profit in current year.
I have a study of all type of loan and interest rate of loan. RNSB to provide all type of
loan. RNSB mainly concentrate on loan of farmer and to help all kind of service to
written a check, how to fillip bank form because all farmer not educated. So all village
people to interest in RNSB. I study of all type of loan because important part of this
bank is loan.
- Type of loan in which people interested.
Cash credit loan
Land and building loan
Education loan
Gold loan
Mukhyamantri awash yojna
Machinery loan

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LOANS AND ADVANCES
1) ADVANCES FIX DEPOSITS:
- Loan AGAINST FD.
- Overdraft in CASH CREDIT / CURRENT A/C.
- FD presented, as a security will be lien marked in favors of bank.
- Third party FD is also accepted as a security.
- Normally interest rate is rate of interest in FD + 1%.
- For third party FD rate of interest is depends up on amount of advances.
- Maximum advances is sanctioned up to 80% Of FD amount + interest payable.
- On it up to last closing.
2) Advance gold ornaments
Your golden investment was right decision.
- To overcome immediate need of small people bank has a gold loan scheme
immediate loan sanction facility rate of interest is 12 %.
- Bullet payment facility for advance up to Rs. 1,00,000/- .
- Installment facility available for advance where amount of loan is more than
1,00,000/- valuation within bank premises gold ornaments will be preserved in
safe under supervision of bank official.
- Hallmarked ornament margin will be 10% without hallmarked ornament margin
will be 15%.
Minimum requirements:-
- KYC docs are mandatory
- Applicant has to be RNSB shareholder (if not then they may subscribe for the
same).
- Up to rs. 1,00,000/- applicant may apply for nominal shareholder more than
1,00,000/-.
- Applicant should be regular member.

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3) ADVANCES LAND AND BUILDING
1. Duration of repayment is 180 months.
2. Rate of interest.
3. Installment.
4. Loan amount can 80 to 100 % of market value or document value as the case
may be
5. Repayment capacity is 50% of total income and evaluation is based on the
income of applicant co-applicant (family member)
6. If property is located at nagarpalika then advance will be furnished.
Type of applicant:
- Minimum requirements.
- KYC docs are mandatory.
- Applicant has to be RNSB shareholder (if not then they may subscribe for the
same) service class applicant.
- Form 16 or salary slip (last 3 month).
- Confirmation from employer for allowing deduction of emi straight from the
salary.
- For proprietor / partnership / company / professional / vocational Self declaration
of income.
- Financial statement (last 3 years).
- Income tax return (last 3 years).
- Shop act license.
- Service tax certificate.
- Partnership deed – latest.
- Registrar of firms.
- Certificate of incorporation.
- Guarantor compliance
- If one guarantor want to furnish then guarantor must has immovable property,
otherwise furnish two guarantors.

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Purpose based rules:
- construction work
- Estimate of cost of construction.
- Authorized / approved plan.
- Requisite permission.
Purchase:
- Recent document deed (register within 1 years from the date of application).
- Satakhat (register within 1 years from the date of application).
4) ADVANCES VEHICLE
- For the purchase of new vehicle 75 % of value of vehicle is sanctioned (max).
- For the purchase of old vehicle up to 5 years old. Truck, matador, station wagon,
tractor etc.
- 5 years old 50 % of value.
- Bank may seek opinion of valuer for old vehicle.
- Normal installment is Rs. 31.55 per 1000 Rs. Of loan.
- Additional security i.e. Land/Building/F.D./L.I.C.policy may be asked.
- 25% margin money should be deposited in bank.
- 40 equal installment for advances up to 1 Lac Rs. rate of int. 13.50%.
- 40 equal installment for advances above 1 Lacs to 10 Lacs Rs. rate of Int.
14.25%
Other Requirement:
- Quotation of vehicle.
- Two person for guarantor of bank member.
- Copy of smart Nagrik card.
- Source of income applicant guarantor both.
- Additional security i.e. Land/building /F.D./L.I.C. POLICY.
- 25% margin money have to deposit in bank.
- After sanction of loan applicant must submit.
- Agreement of hypothecation of vehicle.
- Security deposit or Rs. 1000/- for 2 wheeler.

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- Security deposit will refundable after submit a bill of vehicle, hpa and other
document produced by lone.
- Forms like T.O., T.T.O., H.P.A.
- C.R.L.D, H.P.A. Form, and E.FORM.
- Latter of guarantee from company.

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INTEREST RATE OF LOANS:
Sr.
No.
Type Of Loan
Collateral /Proportion of Extra Security and Interest
Rate
High Net
worth
(HNI
group)
350% or
more
Extra
Security
Special
Platinum
Group
250% or
more
Extra
Security
Platinum
group
100% or
more
Extra
Security
Gold
group
100% or
more
Extra
Security
Silver group
Less than
100% Extra
Security OR
specified
group
(A)
Industrial Loan
1 Cash Credit Hypothecation
/ Pledge
12.00% 12.50% 13.00% 14.00% 15.00%
2 Term loan/Demand Loan
(i) Industrial Machinery/
Truck/Vehicle/Household
Articles etc.
12.00% 12.50% 13.00% 14.00% 15.00%
(ii) Easy Loan - 13.50% 14.00% 14.50%
Only easy
loan upto
` 5 Lac
(Minimum
margin –
125%)
-
B) Permanent Schematic Loan Margin 50% Margin 40%
Margin 30% Margin 20%
1 Industrial Buildings 12.50% 13.25% 14.25% 14.75% -
2 Purchase/Repair of
Buildings
- 14.00% 15.00% 15.50% -
3 Loan against the Property
of NPA A/C holders, now
possessed by the Bank.
12.50% 13.00% 13.75% 14.25%
(Minimum
margin
25%)
(C) Other Loans (Specified Groups)
1 Education Loans - - - - 11.00%
2 NSC/KVP/LIC/Pled gable
Govt. bonds/Valid
Securities/Gold Loan
- - - - 12.00%

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3 Loan against Demat
Shares/Over Draft facility
to the employees of the
Institution getting Salary
from the Bank
- - - - 12.50%
4 Ja.ja./Clean O. D. in
Current Account
- - - - 15%
5 Loan against Bank Deposit
/ O. D.
- - - - Rate of
Deposit +1%

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REVIEW OF LITERATURE
Literature review is very helpful in research. It gives clear ideas about various methods
relating to research. From various review, clear idea of the research can be identified.
Bernanke and Blinder (1998) establish a theoretical macroeconomic model with the
bank lending channel. If supply of bank loan is disrupted ,the bank depended borrower
may incur cost associated with finding a new lender, even being shut off from credit
contractionary monetary policy that reduces bank reserve and deposits will decrease
the availability of bank loans.

36
OBJECTIVE OF THE STUDY
RNSB create awareness about debt instrument. The main objective of RNSB is
customer satisfaction and aware about over product. The board of directors must
ensure that loans are made with the following basic objectives in mind:
- To study that is awareness about debt instrument of RNSB performance
regarding providing loans and funds at reasonable rate of interest.
- To invest the bank’s funds profitably for the benefit of
shareholders and the protection of depositors.
- To serve the legitimate credit needs of their communities.

38
INTRODUCTION OF RESERCH METHODOLOGY
According to Claire seltiz, “a research design is the arrangement of the condition for
collection and analysis of the data in a manner that aims to combine relevance to
research purpose with economy in procedure.
DEFINITION:
Research is “a careful investigation or enquiry especially through search for new
facts in any branch of knowledge.”
“Systematized effort to gain new knowledge”
MEANING:
Research in common parlance refers to a search for knowledge; one can also define
research as a scientific and systematic search for pertinent information on a specific
topic. In fact, research is an art of scientific investigation. Some people consider
research as a movement, a movement from the known to unknown; it is also the voyage
of discovery.
Research is an academic activity and as such the term should be used in a technical
sense. In the encyclopedia of social science research defined as “the manipulation of
things, concepts or symbols for the purpose of generalizing to extend, correct or verify
knowledge, whether that knowledge aids in construction of theory or in the practice of
an art.”
Research is, thus an original contribution to the existing stock of knowledge making for
its advancement, it is the pursuit of truth with the help of study observation comparison
and experiment. In short, the search for knowledge through objective and systematic
method of finding solution to a problem is research. Research methodology includes the
assumptions and values, which are useful for interpreting data and reaching to the
conclusion.

39
RESEARCH DESIGN
According to Bernard S. Phillips, “the research design constitutes the blueprint of the
collection, measure and analysis of the data”.
In the analysis about what types of loans the customer prefer And the features which
attracts the customer, facility provided by bank etc.
RESEARCH PROBLEM
A research problem in general, refers to some difficulty which a researcher experiences
in the context of either a theoretical or practical situation and wants to obtain a solution
for the same.
Title of the problem:
As a part of research study I have selected Co-operative Banking sector at a particular
organization level, the name of the organization is “Rajkot nagrik shakari bank.” And the
title of the problem is “Awareness about debt instrument of Rajkot Nagrik Shakari Bank”.

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SAMPLING METHOD
1) CONVENIENCE SAMPLING METHOD:-
A convenience sampling is one of the main types of non probability sampling
method. A convenience sampling is made up of people who are easy to reach.
An approach to gathering data that uses a readily available sample group, such as all
consumers who visit a bank on a given day. In convenience sampling no attempt is
made to use a random sample or a sample that represents a specific subset of
population.
SAMPLING SIZE
- 70 respondents

41
SOURCE OF DATA
The task data collection begins after a research problem has been defined and research
design chalked out, while deciding about the method of data collection to be used for
study, researcher should keep in mind two types of Data: 1) Primary data 2) Secondary
data
1) Primary Sources:
Primary data are those which are collected a fresh and for the first time, thus happen
to be original in character. Sources of the primary data collection are observation
Method, Interview/Discussion Method, Questionnaire Method etc.
Primary Data have been collected through discussions with executives and
staff of the Bank.
2) Secondary Sources:
Data that is already available, which have already been collected and analyzed by
someone else. Secondary data have been taken from annual report, Balance
sheet, PL A/c, and internal circulated matters from RBI and from the websites.
DATA COLLECTION METHOD
1) SURVEY METHOD:-
A field of applied statistics survey method studies that sampling of individual units from
a population and the associated survey data collection techniques, such as
questionnaire and methods for improving the number and accuracy of responses to
surveys.

42
DATA COLLECTION INSTRUMENT
A questionnaire is used as a data collection instrument for collecting the Primary data by
taking references of the different people. A questionnaire consists of a numbers of
questions printed or typed in a definite order on a former set of forms. It include….
- MCQ
- questionnaire

ANALYSIS AND INTERPRETATION OF DATA
Q.1 MARITAL STATUS:-
INTERPRETATION:-
From the above chart we can interpreted that from the respondent majority where the
married and rest of them are divorced, unmarried and separated where 44%, 36%, 11%
and 9% respectively.
36%
11%
9%
Marital status
MARRIED
UNMARRIED
DIVORCED
SEPARATED
44
ANALYSIS AND INTERPRETATION OF DATA
rest of them are divorced, unmarried and separated where 44%, 36%, 11%
44%
Marital status
married
unmarried
divorced
separated
31
8
25
6
rest of them are divorced, unmarried and separated where 44%, 36%, 11%

Q.2 OCCUPATION:-
BUSINESS 13
SERVICE 30
AGRICULTURE 18
PROFESSION 9
INTERPRETATION:-
From the above chart we can interpreted that from the respondent
service sector and rest of them different different sectors.
0
5
10
15
20
25
30
business
service
19%
43%
Occupation
45
13
30
18
From the above chart we can interpreted that from the respondent 43% comes w
hem different different sectors.
agriculture
profession
26%
13%
Occupation
Series1
43% comes were the

Q.3 LOCATION:-
RURAL AREA 13
SEMI URBAN AREA 24
URBAN AREA 22
METRO CITY 11
INTERPRETATION:-
From the above chart we can interpreted that 3
area, 31% respondent comes from urban area, 19
and 11% respondent comes from metro city.
31%
16%
Chart Title
46
13
24
22
11
chart we can interpreted that 34% respondent comes from semi rural
ondent comes from urban area, 19% respondent comes from rural area
and 11% respondent comes from metro city.
19%
34%
Chart Title
rural
semi rural
urban
metro
4% respondent comes from semi rural
% respondent comes from rural area

Q.4 DO YOU PAY INCOME TAX RETURN?
INTERPRETATION:-
From the above chart we can interpret that
return and rest of them 40% resp
61%
Income tax return
YES
NO
47
Q.4 DO YOU PAY INCOME TAX RETURN?
From the above chart we can interpret that more than 60% of not paying income tax
return and rest of them 40% respondent paying income tax return.
39%
Income tax return
yes
no
27
43
more than 60% of not paying income tax

48
Q.5 WHAT IS YOUR APPROXIMATE MONTHLY HOUSEHOLD
EXPENSE?
40% OF INCOME 24
50% OF INCOME 12
70% OF INCOME 13
ABOVE 70% OF INCOME 21
INTERPRETATION:-
From the above chart we can interpret that out of 70 respondent 34% were consume
40% of income on there monthly household income and rest of them more than 40% of
household expense.
34%
17%
19%
30%
Monthly Household Expense
40% of income
50% of income
70% of income
above 70% of income

49
Q.6 WHAT KIND OF MONEY REQUIREMENT YOU ENERALLY HAVE
WHEN YOU NEED TO BORROW?
INTERPRETATION:-
From the above chart we can interpret that majority of the respondent borrow money
requirement is 61% of unplanned and rest of them 39% respondent requirement is
planned.
39%
61%
Money requirement you need to
borrow
planned
unplanned
PLANNED 27
UNPLANNED 43

50
Q.7 WHICH OF THE FOLLOWING FINANCE PRODUCT YOU ARE
AWARE OF?
INTERPRETATION:-
From the above chart we can interpret that out of 70% the 30% respondent aware about
unorganized product, 26% of respondent aware about personal loan, 24% respondent
aware about purchase finance for occasion and 20% respondent aware about micro
finance.
30%
24%
Finance p
MICRO FINANCE 14
PERSONAL LOAN 18
UNORGENIZED 21
REQUIRED AT SPECIAL OCCASION 17

51
Q.8 WHICH OF THE FOLLOWING FINANCE OPTION YOU USE TO
FINANCE YOUR UNPLANNED NEEDS?
PERSONAL USE 13
GOLD LOAN 23
PRIVATE PARTY 18
OTHER 16
INTERPRETATION:-
From the above chart we can interpret that the majority 33% respondent use gold loan
for unplanned need, 26% respondent use private party option for unplanned need, 23%
respondent use others option for unplanned needs and 18% respondent use personal
option for finance unplanned needs.
18%
33%
26%
23%
Finance your unplanned needs
personal use
gold loan
private party
other

52
Q.9 WHILE CHOOSING ANY GIVEN OPTION, WHAT WAS THE MAIN
SOURCE OF INFORMATION THAT HELPED IN SELECTION?
INTERNET 15
NEWSPAPER 12
FAMILY AND FRIENDS 23
OWN BANKERS 20
INTERPRETATION:-
From the above chart we can interpret that 33% of the respondent choosing main
sources of information as a family and friends, 29% of the respondent choosing own
bankers helped in information and rest of them source of information in internet and
newspapers.
21%
17%
33%
29%
Source of information that helped in
selection
internet
newspaper
family and friends
own bankers

53
Q.10 WHICH OF THE FOLLOWING OPTION YOU HAVE/WOULD LIKE
TO USE TO FINANCE YOUR PLANNED NEEDS?
HOME LOAN 12
VEHICAL LOAN 11
MICRO FINANCE 22
EDUCATION LOAN 8
MORTGAGE LOAN 17
INTERPRETATION:-
From the above chart we can interpret that the 31% are respondent use to micro
finance for the planned needs, 24% of respondent are use in mortgage loan, 17%
respondent are use in home loan, 16% respondent use in vehicle loan, ands 12%
respondent use education loan for planned needs.
17%
16%
31%
12%
24%
Finance your planned need
home loan
vehical loan
micro finance
education loan
mortgage loan

55
RESULTS AND FINDING
After analysis of the above data, I hereby found that the financing activity held by RNSB
in a different category.
- The majority of the respondent borrow money requirement is unplanned.
- The out of 70 respondents 20% respondents are not aware about for financial
product.
- The majority respondents are not paying income tax return.
- The majority respondents come from semi urban area and rest of them comes
from urban, rural and metro city.

57
SUGGESTIONS AND CONCLUSION
- Most of the people’s are not aware about the loan provided by the RNSB.
- And most of the people’s are also not aware about the new lunch ATM service. If
the person is aware but not satisfied to give proper service to the customer.
- The financial liability of the borrower should be checked on more scientific and
statistical base and not depending on relationship banking.
- They should also give the best services to their employees customer.

59
LIMITATION OF THE STUDY
- This research will help the banks to frame effective financial strategy.
- Sample size is 70 which is very small that is not enough to study the awareness
of debt instruments.
- Respondents are not sincere and care full to fill up the questionnaire so we
cannot find right solution.
- As sampling technique is convenient sampling so it may result in personal bias,
so perfect result cannot be achieved.
- The study might also consist of the respondents bias answer.

61
BIBLIOGRAPHY
- Kothari C. R “Research methodology, methods and techniques”, Second
Edition, New age international publisher, New Delhi
- Annual report of RNSB

63
WEBLIOGRAPHY
www.researchandmarkets..com/reports/1716433/cooperative_banks_in_in
dia_functioning_and.pdf
http://explorable.com/convenience-sampling
www.google.com

64
1. Name :- ____________________
2. Gender :- Male Female
3. Age :- ______
4. Marital status :-
Married Unmarried Divorced Separated
5. Occupation :-
Business Service Agriculture Profession
6. Email.id :- _____________________________________
7. Location :-
Rural Semi-urban Urban Metro
8. No of family members :- __________
9. No of earning members :- __________
10. Annual income (personal):- __________
11. Annual family income :- __________
12. Do you pay income tax return ?
Yes No

65
13. What is your approximate monthly household expense ?
40% of income 50% of income
70 % of income Above 70% of income
14 .What kind of money requirement you generally have when you need to
borrow ?
Planned unplanned
15 .Which of the following finance product you are aware of ?
Micro finance Personal loan
Unorganized required at special occasion
16. Which of the following finance option you use to finance your unplanned
needs?
Personal use Gold loan
Private party Other
17. While choosing any given option , what was the main source of information
that helped in selection ?
Internet News paper
Family and friends Employees of the company
18. Which of the following criteria you keep in mind while choosing planned need
finance option (rank from 1 to 5)
Total income Duration Interest rate
Processing charge Income tax benefit
19. Which of the following option you have / would like to use to finance your
planned needs?
Home loan Vehicle loan Micro finance
Education loan Mortgage loan

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