Delhi State Co-operative Bank

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BBA-VISEM
BANKING PROJECT
(DELHI STATE CO-OPERATIVE BANK)

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DECLARATION
This is to certify that I have completed a Project titled " To Study the Financial Instruments of B
ANKING.” under the guidance of MS. SURINDER KAUR WALIA in the partial fulfilment of
the requirement for the award of Bachelors of Business Administration of Bharti Vidyapeeth Uni
versity, New Delhi. Special Thanks to MR. AMARJEET R. DESHMUKH. This is an original
piece of work & I have not submitted it earlier elsewhere.
NEHA(pks)
PREFACE
It is designed in such a way that student can grasp maximum knowledge and can get practical ex
posure to the corporate world in minimum possible time. Business schools of today realize the i
mportance of practical knowledge over the theoretical base. The research report is necessary as it
provides an opportunity to the researcher in understanding the industry with special emphasis on
the development of skills in analyzing and interpreting practical problems through the applicatio
n of management theories and techniques. It is a new platform of learning through practical expe
rience.

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ACKNOWLEDGEMENT
This project is a result of dedicated effort. It gives us immense pleasure to prepare this project re
port on “BANK .”. We would like to thank our project guide To Study the Financial Instruments
of BANKING.” under the guidance of MS. SURINDER KAUR WALIA , for consultative help
and constructive suggestions on the matter on this project. Special Thanks to MR. AMARJEET
R. DESHMUKH. We would like to thanks our Bank manager and colleagues who have helped
us in making this project a successful one.
Name of the student
Neha (pks)

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CONTENTS
CHAPTER PAGE NO.
Chapter 1: Introduction to Company 05-38
1.1 About the Company 05-34
1.2 Environment Scanning 35-36
1.3 Porter five forces model of competition 36-37
1.4 My work areas in bank 38
Chapter 2: ResearchMethodology 39-56
2.1 Statement of problem 39
2.2 objectives and scope of study 39-53
2.3 Managerial usefulnesss of study 53
2.4 Types of research and research design 53-55
2.5 Data collection methods 55
2.6 Limitation of study 56
Chapter 3: Conceptual discussion 57-69
3.1 Review of literature 57-60
3.2 Current issue 61-64
3.3 History and development 64-67
3.4 New development of company 68-69
Chapter 4: Data analysis 70-81
4.1 Methods and Techniques of data analysis 70-78
4.2 Primary data analysis 79-81
4.3 Secondary data analysis 82-85
Chapter 5: Findings 86
Chapter 6: Conclusions and Suggestions 87
ANNEXURE 88-89
BIBLIOGRAPHY 90

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CHAPTER 1
INTRODUCTION TO THE COMPANY
1.1 About the Company
Cooperative movement in India owes its origin to agriculture and allied sectors. Cooperative mo
vement which originated in the west, but the importance that such banks have assumed in India, i
s rarely paralleled anywhere else in the world. In rural areas the supply of credit particularly insti
tutional credit was inadequate and farmers for their financial requirements depend upon money l
enders which in return charge a very high rate of interest. Agriculturists had no securities to offer
for the guarantee of loan so they remain uncared by the banking world. They had no credit beca
use they were poor and they remain poor because they had no credit. Then the need was felt
for an agency which could attract funds from towns and employ them safely and profitably in vill
ages. Then cooperative banks came in existence to provide short term and long term credit at rea
sonable rates of interest. The beginning of cooperative banking in India dates back to about 1904
when official efforts were initiated to create a new institution based on the principles of cooperat
ion which were considered to be suitable for solving the problems related to Indian agricultural c
onditions. The role of cooperative banks in rural financing continues to be important today and th
eir role has also increases in urban areas in the recent years. When national economic planning st
arted in independent India then cooperative banks were given an important role. With the advent
of planning process, cooperatives became an integral part of the five year plans. Cooperative Ban
ks are Government sponsored, government supported and government subsidized financial agenc
y in India. They get financial and other help from Reserve Bank of India, National Bank for
Agriculture and Rural Development (NABARD), Central Government and State Governments. C
ooperative Banks are subject to control and 348 audit under the Cooperative Societies Act of the
state and by the Reserve Bank of India (RBI) under the Banking Regulation Act. RBI and the Sta

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te Government lay down the rules for the investment and loans policies of cooperative banks. Co
operative banks have played a pivotal role in the development of short term and long term rural
credit structure in India. Cooperative banking structure in India comprises Urban Cooperative Ba
nks and Rural Cooperative credit institutions. Urban Cooperative Banks consist of a single tier i.
e. primary cooperative bank referred as Urban Cooperative Banks (UCB). The rural cooperative
credit structure has been divided into short term and long term. Short term cooperative credit inst
itutions have a three tier structure consisting of a large number of Primary Agricultural Credit So
cieties (PACS) at the grass root level, Central Cooperative Banks (CCB) at the district level and
State Cooperative Banks (SCB) at the state level. The smaller states and Union Territories have a
two tier structure i.e. SCB directly meeting the needs of PACS. The long term rural cooperative
structure has two tiers i.e. State Cooperative Agriculture and Rural Development Banks (SCARD
B) at the state level and Primary Cooperative Agriculture and Rural Development Banks (PCAR
DB) at the Tehsil level. Some states have a unitary structure with the SCARDB operating throug
h their own branches.
GROWTH AND REGULATORY FRAMEWORK OF COOPERATIVE BANKS IN INDI
A
Cooperative banks as component of Indian Banking System originated in India with the enactme
nt of Cooperative Credit Societies Act of 1904. Cooperative movement has been initiated and su
pported by the Government but in other countries cooperative movement grew on the strength of
peoples own will. During 107 years of the existence, Cooperative movement passed through vari
ous stages. The movement up to 1947 can be broadly divided into four stages. The first stage cov
ered the period of 1904-1912. In 1904, Cooperative Credit Societies Act was passed and the pass
age of the Act was the first landmark in the Cooperative Movement in India. It was a new experi
ment and people were full of enthusiasm for it. The Act of 1904 provided for the organization of
primary credit societies and stress was on the promotion of agricultural credit only. The conditio
n of societies however, could not said to be good. Loans were generally marked by insufficiency
and delay. Recoveries were far from satisfactory and loan system was defective. The working of
societies formed under the Act of 1904 showed a number of deficiencies, viz., it did not give lega

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l protection to cooperative societies for purposes other than credit. In the second stage (1912-191
9) a new Act was passed in 1912 to remove the deficiencies of the previous Act. The important p
rovisions of the Act were that the Act provided for the registration of non credit societies also. T
he Act of 1912 gave a great stimulus to the cooperative movement. There was a rapid expansion
in the registration of cooperatives in the country, but without any tangible results. Under 351the r
eforms of 1919, cooperation was made a provincial transferred subject, in each state in the third s
tage (1919-1939). Some provinces enacted special legislation to suit their local requirements. Aft
er cooperation became a transferred subject, the movement made very rapid progress and all see
med to be going very well. Its success was, however, more quantitative rather than qualitative in
nature. The rapid growth of the movement during 1919-1930 was characterized by Mr. RamdasP
antulu as the period of unplanned expansion. The world wide economic depression in 1929 gave
a severe blow to the cooperative movement in India which was still in infancy. As a result of slu
mp in the market, prices of agricultural commodities came down, overdues mounted up; liquidati
on of societies had to be resorted to in a few cases. The creation of Reserve Bank of India in 193
4, and setting up of rural credit department in the bank gave a new life and vitality to the coopera
tive movement. The provincial autonomy in 1937 further strengthened the cooperative movemen
t. The abnormal conditions created by the World War II led to some far reaching developments i
n the cooperative movement. As a result of high prices most of the over dues were cleared off. T
hus during the war, the societies gained in strength and vigour. An important landmark of fourth
stage (1939-1947) was the setting up of Cooperative Planning Committee, which drew up plans f
or the development of cooperative movement in various spheres. The attainment of independenc
e in 1947 and the consequent establishment of National Government in the country came in as a
fountain of inspiration for the movement. It was during the Five Year Plans that cooperative cred
it was assigned to play significant role in the economic development of the rural areas. The First
Five Year Plan (1951-56) emphasized the need for expanding the cooperative credit system so as
to bring 50 per cent of the villages and 30 per cent of the rural population in the ambit of primar
y societies with in ten years. The progress of cooperative movement in the First Plan was mixed.
By 352 1955-56, 70 per cent of the villages of the country were covered by Primary Agricultural
Credit Societies against the target of covering 50 per cent of the villages. As against the target of
Rs. 100 crore to be disbursed as short term credit, fresh advances increased from Rs.24.21 crore i
n 1951-52 to Rs. 49.62 crore in 1955-56. The short term loans outstanding increased from Rs. 33

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.66 crore to Rs. 59.84 crore and the medium term loans advanced amounted to Rs. 15 crore in 19
55-56 as against the target of Rs. 25 crore. Second Five Year Plan (1956-61) observed that “the b
uilding up of a co-operative sector as part of the scheme of planned development is, one of the ce
ntral aims of national policy”. The plan aimed that Credit is only the beginning of co-operation.
From credit, co-operation has to extend to a number of other activities in the village, including co
operative farming. Short term loan advanced were Rs. 182.82 crore in 1960-61 against the target
of Rs. 150 crore and medium term loan given was Rs. 19.93 crore in 1960-61 which was less tha
n the target of Rs. 50 crore. In the Third Five Year Plan (1961-66) the cooperatives were assigne
d a vital role in implementing the programmes of agricultural production. There was shortfall in
achievement of short term and medium term loans. With the nationalization of the major 14 com
mercial banks in July, 1969 more or less the monopolistic position held by the cooperatives in di
spensation of agricultural credit came to an end. The loans advanced increased from Rs. 203 cror
e in 1960-61 to Rs. 342 crore in 1965-66 as against the target of Rs. 530 crore. The Fourth Five
Year Plan (1969-1974) gave high priority to the re-organization of cooperatives to make coopera
tive short-term and medium-term structure viable. No increase in the number of societies was en
visaged but an additional increase in membership so as to cover about 60% of agricultural famili
es was provided. As against the target of disbursing short term and medium term loans of Rs. 75
0 crore, the PACS issued loans of Rs. 763 crore in 1973-74. 353 In the strategy of cooperative de
velopment in the Fifth Five Year Plan (1974-79), structural reformation receives special attention
. A major objective of credit policies in the Fifth Five Year Plan was to ensure a substantial incre
ase in the flow of institutional credit to the small farmers, marginal farmers, tenants and share cro
ppers. It has also been decided that concessional finance provided by the Reserve Bank will also
be available to the non- agriculturist and agricultural labourers who are members of primary cred
it societies for purchase of milch cattle and poultry farming activities. The Fifth Five Year Plan
took note of the high level of over-dues. The Sixth Five Year Plan (1979-85) document stated tha
t while all round progress has been made in the field of credit by cooperatives, the rate of growth
of agricultural credit advanced by the cooperatives has lately slowed down. The National Bank f
or Agriculture and Rural Development (NABARD) Act was passed in 1981 and NABARD was s
et up to provide re-finance support to Cooperative Banks to enhance credit flow to the agricultur
e and rural sector. The Seventh Five Year Plan (1985-1990) pointed out that while there had bee
n all round progress in credit, poor recovery of loans and high level of overdues were matters of

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concern. The Plan recommended the development of Primary Agricultural Credit Societies as mu
ltiple viable units. The opening up of the economy in 1990, and the liberalized economic policies
followed by the government since then, led to increasing pressures for various governments, stat
e and central, to bring about changes that would provide cooperatives a level playing field to co
mpete with the private sector. The Eighth Five Year Plan (1992-97) laid emphasis on building up
the cooperative movement as a self-managed, self-regulated and self-reliant institutional set-up,
by giving it more autonomy and democratizing the movement. It also spoke of enhancing the cap
ability of cooperatives for improving economic activity and creating employment opportunities f
or small farmers and training of cooperative functionaries in professional management. Under th
e 354 Ninth Five Year Plan (1997-2002), the Government adopted the Kisan Credit Card (KCC)
Scheme formulated by NABARD which aims at provision of adequate and timely credit support
to the farmers for their cultivation needs including purchase of inputs in a flexible and cost effect
ive manner. The scheme was being implemented through the district central cooperative banks a
nd the primary agricultural cooperative banks. From the Ninth Plan onwards, there has been no s
pecific mention about cooperatives as a part of the Plan. A total of 249.07 lacs KCCs had been is
sued till 30 June 2002. In the Tenth Five Year Plan (2002-07), the recapitalization and revampin
g of the cooperative credit institutions is being considered. Credit growth by the cooperatives to t
he agriculture sector has gradually picked up during the course of the Tenth Five Year Plan. The
number of loan accounts however, declined from 224.6 lacs in 2004–05 to 192.8 lacs in 2005–06
. Continued emphasis will be placed on progressive institutionalization for providing timely and
adequate credit support to farmers with particular focus on small / marginal farmers and weaker
sections of society to enable them to adopt modern technology and improved practices for increa
sing agriculture production and productivity. Eleventh Five Year Plan (2007-12) envisaged the
revitalization of the co-operative credit structure in order to transform them into vibrant and viabl
e democratic financial institutions. It was, therefore, extremely important, that the restructuring o
f co-operative credit now in progress are implemented speedily and rigorously.
(b)REGULATION AND CONTROL
The regulation and control of cooperative banking rests with the Reserve Bank of India (RBI) an
d the State Government. The State Government controls it under the Cooperative Societies Act t
hrough the Department of Cooperation. Department of Cooperation is headed by the Registrar, C
ooperative Societies. Registrar has been entrusted with the duties of promoting, sustaining as wel

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l as guiding the Cooperative Societies in the state. Cooperative banks are registered 355 under th
e Cooperative Societies Act of the states by the Registrar of Cooperative Societies and are gover
ned by the Acts and rules of the State Government. In terms of the Cooperative Societies Act of t
he State, the Registrar of Cooperative Societies have jurisdiction over the incorporation, registrat
ion, management, amalgamation, merger and liquidation. The RBI exercises a promotional and r
egulatory control over cooperative banking under the Banking Laws (Application to Cooperative
Societies) Act, 1965; extending the provisions of RBI Act, 1934; and Banking Regulation Act, 1
949. The Banking Laws Act, 1965, in addition to the regulatory powers of the RBI, has extended
its statutory control to cooperative banks. The Act came into force on March 1, 1966. It extends
to State Cooperative Banks, Central Cooperative Banks and PACSs. With the State Governments
committed to a policy of positive support to cooperative banks, it was felt that the impact of coop
erative credit institutions on the monetary and credit policy was going to become more and more
significant. Hence, the RBI felt that it was a regulatory necessity to bring the banking institutions
operating in the cooperative sector within the statutory control of RBI. After prolonged deliberat
ions on the need for RBI to have control over cooperative societies carrying on banking business,
the Banking Laws (Application to Cooperative Societies) Bill was passed by the Parliament. It r
eceived the assent of the President in September 1965 and the Act came into force from 1 March,
1966. With amendments in the Banking Regulation Act, certain provisions of the Banking Regul
ation Act became applicable to cooperative banks carrying on banking business. The Reserve Ba
nk is now the regulator and supervisor of banking activities carried on by cooperative societies. T
he Registrar of Cooperative Societies of the concerned state continues to be the regulator and sup
ervisor of cooperative institutions.
DEPOSIT MOBILIZATION: Central Cooperative Banks in Delhi have been successful in dep
osit mobilization. Deposits of Central Cooperative Banks in Punjab increased from Rs. 177243.3
2 lac in 1997-98 to Rs. 751261.51 lac in 2009-10 listing an exponential 357 growth rate of 11.92
per cent during the period under study. The share of fixed deposits in total deposits decreased fro
m 56.94 per cent to 49.40 per cent and the share of savings deposits increased from 39.19 per cen
t in 1997-98 to 47.28 per cent in 2009-10. The share of current deposits remained almost the sam
e. Savings deposits recorded the highest exponential growth rate of 14.92 per cent whereas fixed

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deposits recorded the lowest exponential growth rate of 9.33 per cent. At the end of the year 200
9-10, Central Cooperative Bank contributed maximum Rs. 91478.56 lac to the total deposits (12.
18 per cent of total deposits) and the contribution of Central Cooperative Bank to total deposit w
as minimum Rs. 10770.26 lac (1.43 per cent). Coefficient of concentration ranged from 25 to 30
per cent. The data of coefficient of concentration shows that there was no concentration of deposi
ts in few districts. The degree of variation in the growth of deposits was highest for Mansa Centr
al Cooperative Bank (C.V. = 54.37) and the consistency in the growth of deposits was highest in
Jalandhar Central Cooperative Bank (C.V. = 34.04).
CREDIT DEPLOYMENT: The Central Cooperative Banks in Delhi have shown a considerabl
e success in the growth of advances. Advances of Central Cooperative Banks in DELHI increase
d from Rs.232396.10 lac in 1997-98 to Rs. 1126892.49 lac in 2009-10 with an exponential growt
h rate of 12.71 per cent. There is about five-fold increase in loans. The growth rate of advances is
more than the growth rate of deposits during the period under study. The share of short-term adv
ances increased from 61.17 per cent to 86.40 per cent during the study period. The share of medi
um term advances decreased from 30.45 per cent to 7.95 per cent while the share of long term ad
vances decreased from 8.38 per cent to 5.65 per cent. The highest exponential growth rate in loan
s deployment was recorded by Central Cooperative Bank, whereas the lowest for Central Cooper
ative Bank. Sangrur Central Cooperative Bank had the maximum average advances while Mansa
Central 358 Cooperative Bank had the minimum average advances. The variation in the growth
of loans advanced was lowest in N.Shahr Central Cooperative Bank (C.V =32.36) and the variati
on was highest in Fatehgarh Sahib Central Cooperative Bank (C.V =62.93). The Coefficient of c
oncentration of loans advanced of all the Central Cooperative Bank operating in Delhi ranges fro
m 14 to 22 per cent during the period under study. The coefficient of concentration shows that th
ere is no concentration of loans advanced in few districts.
VOLUME OF BUSINESSThe volume of business presents the total of deposits and advances.
The volume of business of Central Cooperative Banks operating in Delhi increased from Rs. 409
639.40 lac in 1997-98 to Rs. 1878154.01 lac in 2009-10 and indicated exponential growth rate of
12.39 per cent during the period covered under study. Fatehgarh Sahib Central Cooperative Ban
k recorded the highest exponential growth rate, while Jalandhar Central Cooperative Bank record
ed the lowest exponential growth rate in volume of business. Average volume of business was m

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aximum in case of Jalandhar Central Cooperative Bank and the minimum for Mansa Central Coo
perative Bank. Throughout the period of study, Jalandhar Central Cooperative Bank contributed
maximum in total Volume of Business. Coefficient of concentration of volume of business range
d from 16 to 22 per cent during the study period. The data of coefficient of concentration shows t
hat there is no concentration of Volume of Business in few districts. The variations in the growth
of volume of business was lowest in Jalandhar Central Cooperative Bank (C.V =32.82), and was
highest in Fatehgarh Sahib Central Cooperative Bank (C.V =58.87).
WORKING FUNDS: The working funds of Central Cooperative Banks operating in Delhi have
increased from Rs. 277573.83 lac in 1997-98 to Rs. 1195956.11 lac in 2009-10 listing an expone
ntial growth rate of 12.84 per cent. Patiala Central Cooperative Bank recorded the highest expon
ential growth rate 16.45 per cent and Ferozpur Central 359 Cooperative Bank registered the lowe
st exponential growth rate of 9.96 per cent. The overall coefficient of concentration ranges from
17 to 20 per cent and the data of coefficient of concentration show that there is no concentration
of working funds in few districts. The highest average working funds were observed in the case o
f Jalandhar Central Cooperative Bank and the lowest in Faridkot Central Cooperative Bank. The
variation in the growth of working funds was lowest in Tarn Taran Central Cooperative Bank (C.
V =38.32) and was highest in Patiala Central Cooperative Bank (C.V = 55.50) during the study
period.
OWNED FUNDS: Owned funds of the bank represent share capital and reserve funds. Owned f
unds are an indication of internal financial soundness of the organization. The amount of owned f
unds increased from Rs. 20747.63 lac in 1997-98 to Rs. 107020.17 lacs in 2009-10 at an exponen
tial growth rate of 15.11 per cent. Central Cooperative Bank recorded the highest exponential gro
wth rate of 21.90 per cent while Ferozpur Central Cooperative Bank recorded the lowest growth
rate of 5.94 per cent. Average owned funds were found maximum in case of N. Shahr Central Co
operative Bank whereas minimum for Mansa Central Cooperative Bank. The variation in the gro
wth of owned funds was lowest in Ferozepur Central Cooperative Bank (C.V =22.32) and was hi
ghest in Amritsar Central Cooperative Bank (C.V =67.24) during the study period. . The overall
coefficient of concentration ranges from 22 per cent to 27 per cent during the study period. The d
ata of coefficient of concentration shows that there is no concentration of owned funds in few dis
tricts.

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MANPOWER: The effectiveness of an organization depends largely on the quality of the manp
ower especially in service industry like banking. The number of staff members of Central Cooper
ative Banks in Delhi decreased during the study period. There is decline in the number of staff m
embers in each Central Cooperative Bank. The exponential growth rate is negative for all the Ce
ntral Cooperative 360 Banks. At the end of March 2010 Jalandhar Central Cooperative Bank has
the maximum number of staff members, i.e., 444 (11.75 per cent of the total staff members) and
Muktsar Central Cooperative Bank has the lowest number of staff members. The average staff m
embers were highest in Jalandhar Central Cooperative Bank and were lowest in Mansa Central C
ooperative Bank during the period of study.
NON PERFORMING ASSETS (NPA) AS PERCENTAGE TO TOTAL ADVANCES:
Average non performing assets as percentage to advances of all the Central Cooperative Banks in
Delhi is 6.53 per cent. The highest average percentage of NPA to total advances pertained to Ce
ntral Cooperative Bank that is, 15.75 per cent during the same period. The top rank in NPA as pe
rcentage to total advances pertained to N.Shahr Central Cooperative Bank while Gurdaspur Cent
ral Cooperative Bank appeared at the bottom.
RECOVERY AS PERCENTAGE TO DEMAND: The recovery performance of Central Coo
perative Banks in Delhi was quite satisfactory, as the percentage of recovery against demand ran
ged from 85 per cent to 90 per cent. Average recovery performance of all the Central Cooperativ
e Banks in Punjab during the study period was 87.37 per cent. The top rank in average recovery
performance was in case of Jalandhar Central Cooperative Bank and the lowest rank was for Gur
daspur Central Cooperative Bank.
PROFITABILITY AND PRODUCTIVITY PERFORMANCE
(a) PROFITABILITY ANALYSIS
(i) STRUCTURE OF INCOME
The main sources of income of Central Cooperative Banks are interest and discount income, com
mission, exchange and brokerage and other receipts. Interest and discount income accounted for
98.45 per cent to 99.57 per cent of the total income, while non-interest income constituted a very
marginal portion. At the end of the study 361 period, Jalandhar Central Cooperative Bank contrib

14. 14
uted the highest share in total income (10.85 per cent) and Mansa Central Cooperative Bank had
the lowest share in total income (2.12 per cent). Total income of all the Central Cooperative Ban
ks recorded an exponential growth rate of 8.65 per cent. The highest exponential growth rate in
total income was observed in the case of Patiala Central Cooperative Bank (11.77 per cent) and t
he lowest in Tarn Taran Central Cooperative Bank (4.49 per cent). Patiala Central Cooperative B
ank had the highest exponential growth rate in interest income (11.76 percent) and the exponenti
al growth rate was lowest for Tarn Taran Central Cooperative Bank (4.32 per cent). At the end of
the study period Jalandhar Central Cooperative Bank contributed maximum share in interest inc
ome (10.87 per cent) while minimum share in interest income pertained to Mansa Central Coope
rative Bank (2.13per cent). Income from other receipts grew at an exponential growth rate of 13.
07 per cent during the period of study. Gurdaspur Central Cooperative Bank had the highest shar
e in other income (12.42 percent) whereas Mansa Central Cooperative Bank had the lowest share
in other income (0.95 per cent).
(ii) STRUCTURE OF EXPENDITURE
Interest paid on deposits and borrowings, manpower expenses, i.e., establishment cost and other
expenses constituted the three main Components of total expenditure of all the Central Cooperati
ve Banks in Delhi. Total expenditure of all the Central Cooperative Banks recorded an exponenti
al growth rate of 8.27 per cent. The highest exponential growth rate in total expenditure was for
Patiala Central Cooperative Bank (10.94 per cent) and lowest for Tarn Taran Central Cooperativ
e Bank (4.63 per cent). At the end of March 2010, Jalandhar Central Cooperative Bank had the hi
ghest share in total expenditure (11.18 per cent) and the lowest share pertained to Muktsar Centra
l Cooperative Bank (1.98 per cent). Interest paid contributed 63 per cent to 71 per cent of the tota
l expenditure of all 362 the Central Cooperative Banks in Punjab. At the end of the study period,
the contribution to interest paid was maximum for JalandharCentral Cooperative Bank (10.83 per
cent) and minimum for Muktsar Central Cooperative Bank (2.12 per cent). The exponential grow
th rate in interest expanded was 8.27 per cent over the study period. Patiala Central Cooperative
Bank had the highest exponential growth rate (12.40 per cent) and lowest exponential growth rat
e pertained to Tarn Taran Central Cooperative Bank (3.23 per cent). Establishment cost which in
cludes cost of management, i.e., salaries, allowances, bonus to staff, etc. contributed 21 per cent t
o 23 per cent to the total expenditure of all the Central Cooperative Banks. At the end of the stud
y period Jalandhar Central Cooperative Bank had maximum share in establishment cost (10.93 p

15. 15
er cent) while minimum share was observed in the case of Muktsar Central Cooperative Bank (1.
15per cent). Kapurthala Central Cooperative Bank recorded the highest exponential growth rate (
10.93 per cent) and the lowest was shown by Muktsar Central Cooperative Bank (3.73 per cent).
The third component of total expenditure is other expenditure which includes stationery, printing
, taxes, etc. The share of other expenses in total expenses was 4 per cent to 7 per cent during the
period of study. The highest percentage to total other expenses pertained to Jalandhar Central Co
operative Bank (16.24 per cent) while the lowest was shown by Mansa Central Cooperative Ban
k (2.05 per cent).
(iii) TREND IN NET PROFIT/LOSSES
The total profits of all the Central Cooperative Banks in Delhi exhibited an exponential decline o
f 2.75 per cent over the study period. At the end of the study period N.Shahr Central Cooperative
Bank contributed the most, i.e., Rs. 882.24 lac (40.07 per cent share in total net profit) followed
by Central Cooperative Bank withRs. 508.98 lac (23.12 per cent share in total net profit).Faridko
t Central Cooperative Bank and Mansa Central Cooperative Bank showed losses at the end of stu
dy period. The highest exponential 363 growth rate in case of net profit was recorded by Fatehga
rh Sahib Central Cooperative Bank (13.58 per cent) followed by Patiala Central Cooperative Ban
k with exponential growth rate of 11.89 per cent. The analysis of coefficient of concentration bri
ngs out that at the end of study period there was concentration of net profit in few districts. At th
e end of study period, only two banks, viz. Jalandhar Central Cooperative Bank and N. Shahr Ce
ntral Cooperative Bank contributed about 63 per cent of the total profits of all the Central Cooper
ative Banks.
(iv) PROFITABILITY RATIOS
The highest overall interest earned ratio and interest paid ratio pertained to Tarn Taran Central C
ooperative Bank, whereas the lowest interest earned ratio and interest paid ratio were observed in
the case of Mansa Central Cooperative Bank and Ludhiana Central Cooperative Bank respective
ly. There is no clear cut trend in the ratio of non interest income to working funds. The special fe
ature of non interest income to working fund ratio was its very small magnitude during the perio
d of study. The ratio was highest for Central Cooperative Bank and lowest for N.Shahr Central C
ooperative Bank. The movement of establishment cost to working fund ratio showed no set trend
. At the end of March 2010, Amritsar Central Cooperative Bank recorded the highest ratio follow
ed by Faridkot Central Cooperative Bank. However, the lowest ratio was recorded by Muktsar

16. 16
Central Cooperative Bank at the end of study period.Moga Central Cooperative Bank had the hig
hest average other expense to working fund ratio, while Kapurthala Central Cooperative Bank ha
d the lowest ratio. Total income ratio and total expense ratio did not indicate any clear cut trend i
n their movement throughout the period of study. The highest total income ratio was observed in
the case of Kapurthala Central Cooperative Bank, whereas the lowest in Mansa Central Cooperat
ive Bank. At the end of March 2010, Faridkot Central Cooperative Bank recorded the highest tot
al expense ratio while the 364 lowest in Muktsar Central Cooperative Bank. The ratio between to
tal spread to working fund of all the Central Cooperative Banks in Punjab taken together during t
he study period showed no set trend. The average total spread to working fund ratio was the high
est for Ludhiana Central Cooperative Bank, while Mansa Central Cooperative Bank recorded the
lowest ratio. The ratio between total burden to working fund was the highest for Amritsar Centra
l Cooperative Bank followed by Faridkot Central Cooperative Bank, and the lowest was recorded
by Muktsar Central Cooperative Bank. The behaviour of net profit/losses to working funds ratio
indicated no set trend. The ratio was positive for all the Central Cooperative Banks in Punjab dur
ing the years 1998-99 and 2000-01 to 2005-06, but at the state level the ratio was positive throug
hout the period of study. The highest ratio was recorded by N.Shahr Central Cooperative Bank,
while Amritsar Central Cooperative Bank showed the lowest ratio. All the Central Cooperative B
anks in Punjab except Amritsar Central Cooperative Bank showed a positive average ratio betwe
en net profit/losses to working fund during the study period.
Key work of Delhi state co operative bank

17. 17
Basic or primary functions of a bank are very important in nature. These functions provide t bas
e of the whole operation of the bank. The basic functions of a bank are as under
1. Accepting deposits:
Accepting deposits is the most important function of all commercial banks. Deposit is the basis o
f commercial banks' activities. In order to attract The general public to deposit their surplus mon
ey in the bank, the bank offers to deposit money in any of the following accounts:
Current or Demand Account:

18. 18
Current or demand account is one where the amount can be withdrawn at any time by the deposit
or. This type of account is operated by businessmen. Withdrawals are freely allowed. No interest
is paid. In fact, there are service charges. The account holders can get the benefit of overdraft fac
ility.
Saving Account:
Saving account is suitable for non-trading and small income earners. Saving account helps in mo
bilization of the saving of low income people. The commercial banks pay interest on this type cf
deposits. This type of deposits encourages saving habit among the public. The rate of interest is l
ow. At present it is about 4% p.a. Withdrawals of deposits are allowed subject to certain restricti
ons. This account is suitable to salary and wage earners. This account can be opened in single na
me or in joint names.
Fixed Deposit Account or Term Deposit Account:
Fixed deposit account is the account in which amounts are deposited for a certain fixed period of
time. The deposits cannot be withdrawn before the expiry of this fixed period. The longer the per
iod of deposits, the higher is the rate of profit.Lump sum amount is deposited at one time for a sp
ecific period. Higher rate of interest is paid, which varies with the period of deposit. Withdrawals
are not allowed before the expiry of the period. Those who have surplus funds go for fixed depo
sit.
Foreign Currency Account:

19. 19
Foreign currency account is opened only in authorized branches. A foreign currency account ma
y be a foreign currency saving account or foreign currency term deposit account. Foreign currenc
y account in Pakistan can be opened in USA Dollar, UK Pound, German Mark, Japanese Yen, et
c. This account is exempted from all taxes and deduction. No income tax or Zakat is deducted fro
m this account.
Advancing Loans:
The second important function of commercial bank is advancing loans to the individuals, busines
smen and government bodies. The loans are granted out of deposited money. Generally, a comm
ercial bank grants short-term loans.
Banks grant loan in any of the following forms:
Overdraft: Overdraft is a short-term loan granted by commercial banks to their account holder
s. Under this type of loan, the customers are allowed to draw more than what they have in their c
urrent account up to a certain limit. The excess amount overdrawn is called overdraft. This type o
f advances are given to current account holders. No separate account is maintained. All entries ar
e made in the current account. A certain amount is sanctioned as overdraft which can be withdra
wn within a certain period of time say three months or so. Interest is charged on actual amount w

20. 20
ithdrawn. An overdraft facility is granted against a collateral security. It is sanctioned to business
man and firms.
3.2.2. Cash Credit:
Cash credit is a very common form of loan granted by commercial banks to businessmen and in
dustrial units against the security of goods. The loan granted under this head is credited to curren
t account opened in the name of borrower. The borrower can withdraw money through cheques a
ccording to his requirement. The interest is charged on the amount actually withdrawn by the bor
rower. The client is allowed cash credit upto a specific limit fixed in advance. It can be given to c
urrent account holders as well as to others who do not have an account with bank. Separate cash
credit account is maintained. Interest is charged on the amount withdrawn in excess of limit. The
cash credit is given against the security of tangible assets and / or guarantees. The advance is giv
en for a longer period and a larger amount of loan is sanctioned than that of overdraft.
Loans:
Commercial banks grant loans for short and medium-term to individuals and traders against the s
ecurity of movable and immovable property. The amount of loan is credited to the borrower's acc
ount. Interest is charged on the entire loan sanctioned.It is normally for short term say a period of
one year or medium term say a period of five years. Now-a-days, banks do lend money for long t
erm. Repayment of money can be in the form of installments spread over a period of time or in a
lumpsum amount. Interest is charged on the actual amount sanctioned, whether withdrawn or not
. The rate of interest may be slightly lower than what is charged on overdrafts and cash credits. L
oans are normally secured against tangible assets of the company.
Discounting bills of exchange:

21. 21
Banks provide short term lean to the businessmen by discounting bills of exchange. Discounting
the bills of exchange means the arrangements of making payments before maturity of bills of exc
hange. The payment made by the bank to the holder of bill of exchange before its maturity is the
amount of loan. The discount charged is the earning of the bank.
The bank can advance money by discounting or by purchasing bills of exchange both domestic a
nd foreign bills. The bank pays the bill amount to the drawer or the beneficiary of the bill by ded
ucting usual discount charges. On maturity, the bill is presented to the drawee or acceptor of the
bill and the amount is collected.
Secondary Functions Of Bank:
The secondary functions of bank can be classified under the following heads.
1. Agency functions
2. General utility functions
3. Miscellaneous functions
1. Agency Functions:
The banks render important services as agent on behalf of their customers in return for a small co
mmission. When banks act as agent, law of agency applies. The agency functions or services of b
ank are as follows:
1. Collection of Cheques:
Commercial banks collect the cheques, bills of exchange, etc, on behalf of their customers. Bank
s collect local and outstation cheques and bills of exchange through clearing house facilities prov
ided by the central bank,The bank collects the money of the cheques through clearing section of i
ts customers. The bank also collects money of the bills of exchange
1.2. Collection of Income:

22. 22
The commercial banks collect dividends, interest on investment, pension and rent of property du
e to the customers. When any income is collected by the bank, a credit voucher is sent to the cust
omer for information.
1.3. Payment of expenses:
The banks make payment of insurance premiums, rent, trade subscription, school fee and other o
bligation of the customers. When any expense is paid by the bank, a debit voucher is sent to the c
ustomer for information.
1.4. Dealer in securities:
The banks carry out purchase and sale of securities on behalf of their customers. Banks do it well
because they are aware of the market conditions.
1.5. Acts as trustee:
The banks act as trustee to manage trust property as per instructions of property owners. Banks a
re required to follow the terms and conditions of trust deed.
1.6. Acts as an agent:
Commercial bank sometimes acts as an agent on behalf of its customers at home or abroad in dea
ling with other banks or financial institutions.
1.7. Obeys standing instructions:
Sometimes, customer may order his bank to do something on his behalf regarding the conduct of
his account. This written order is called standing instruction. The bank being the agent of its cust
omer obeys the standing instructions.
1.8. Acts as tax consultant:

23. 23
Commercial bank acts as tax consultant to its client. The commercial bank prepares general sales
tax return, income tax return, etc. Tiles the same with tax authorities.
Periodic Payments
On standing instructions of the client, the bank makes periodic payments in respect of el
ectricity bills, rent, etc.
Portfolio Management
The banks also undertakes to purchase and sell the shares and debentures on behalf of
the clients and accordingly debits or credits the account. This facility is called portfolio
management.
Periodic Collections
The bank collects salary, pension, dividend and such other periodic collections on behal
f of the client.
Other Agency Functions
They act as trustees, executors, advisers and administrators on behalf of its clients. The
y act as representatives of clients to deal with other banks and institutions.
2. General Utility Functions:
Bank performs different utility functions for their customers. When bank performs utility functio
ns, it does not act as an agent of the customers. The general utility functions are as follows:
2.1. Provides lockers facilities:
Commercial banks provide lockers facilities to its customers for safe custody of Jewelery, shares,
securities and other valuables. This has minimized the risk of losing due to theft.
2.2. Issue of traveler's cheque:

24. 24
Bank issues traveler's cheques to the customers for traveling in and outside the country.
Banks issue drafts for transferring money from one place to another. It also issues letter of credit,
especially in case of, import trade. It also issues travellers' cheques.
2.3. Foreign exchange:
Commercial banks deal in foreign exchange. This enables the individuals and businessmen to ob
tain foreign currency in exchange of their home currency. For dealing in foreign exchange, com
mercial banks have to obtain permission from the central bank.
Transfer of money:
Banks provide facilities for the transfer of money to any place within and outside the country. T
he funds are transferred by means of draft, telephonic transfer, electronic transfer etc.
Finances foreign trade:
A Bank finances foreign trade by accepting foreign bills of exchange. Bank also issues letter of
credit on behalf of its customers to facilitate foreign trade. According to Sir John Poget: "The iss
uing of letters of credit is the basic function of a bank."

25. 25
2.6. Trade information:
Banks collect and provide trade information and tender advice to its customers about financial m
afters. Issues credit cards: Banks issue credit cards to their trustworthy and valued customers. Thi
s facilitates the customers to pay for their necessities of life.
2.7. Modaraba Company:
The Banks act as Modaraba and leasing companies under the provisions of Modaraba Companies
Ordinance, 1980.
2.8. Purchase PTCs:
Banks underwrite or purchase Participation Term Certificate (PTCs), Term Finance Certificates (
TFCs) and Modaraba Certificates. This helps the companies to raise their capital.
2.9. Financial standing:
Banks answer reference letters regarding the financial standing and business reputation of custo
mers. Banks provide this information with great care and utmost secrecy.
3. Miscellaneous Functions:
Banks perform the following miscellaneous functions:
1. Collection of utility bills:
Commercial banks provide facilities for the collection of utility bills from general public on beha
lf of government bodies. This facilitates the public to pay utility bills in time.
2. Zakat Collection:
Commercial banks collect Zakat from their account holders and deposit the same into Central Za
kat Fund, according to Zakat and Usher ordinance - 1980.

26. 26
3. Hajj services:
The commercial banks provide free Hajj sendees to the intending pilgrims. Banks receive Hajj ap
plications. Banks also facilitate to form Hajj groups. Banks make necessary arrangements for the
training of intending pilgrims,
4. Qarz-e-Hasna:
The commercial banks provide Qarz-e-Hasna to deserving patients for medical treatment and to s
tudents for higher studies within the country and abroad. The Qarz-e-Hasna is refund Ale in easy
installments,
5. Electronic banking and E-banking:
Electronic banking is offering improved services to the customers as fellows:
 ATM Cards
 Credit Cards
 Electronic transfer of money
Potential Of Insurance Industry In India :
 Only ONE out of FIVE insurable population in India have insurance coverage.
 In terms of Insurance premium per capita and premium per GDP, India ranks as one of the lowest
in the world.
 Life insurance premium constitutes only 9% of domestic savings.
 By 2010, hundred million elderly look to planning for old age pension and annuities.
 More than 325 million labor forces have no social security.

27. 27
With an annual growth rate of 15-20% and the largest number of life insurance policies in force,
the potential of the Indian insurance industry is huge. Total value of the Indian insurance market
(2004-05) is estimated at Rs. 450 billion (US$10 billion). According to government sources, the i
nsurance and banking services' contribution to the country's gross domestic product (GDP) is 7%
out of which the gross premium collection forms a significant part. The funds available with the
state-owned Life Insurance Corporation for investments are 8% of GDP.
Till date, only 20% of the total insurable population of India is covered under various life insuran
ce schemes, the penetration rates of health and other non-life insurances in India is also well belo
w the international level. These facts indicate the of immense growth potential of the insurance s
ector.
The year 1999 saw a revolution in the Indian insurance sector, as major structural changes took p
lace with the ending of government monopoly and the passage of the Insurance Regulatory and
Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing
foreign players to enter the market with some limits on direct foreign ownership.
Though, the existing rule says that a foreign partner can hold 26% equity in an insurance compan
y, a proposal to increase this limit to 49% is pending with the government. Since opening up of t
he insurance sector in 1999, foreign investments of Rs. 8.7 billion have poured into the Indian
market and 21 private companies have been granted licenses.
Innovative products, smart marketing, and aggressive distribution have enabled fledgling private
insurance companies to sign up Indian customers faster than anyone expected. Indians, who had
always seen life insurance as a tax saving device, are now suddenly turning to the private sector a
nd snapping up the new innovative products on offer.
The life insurance industry in India grew by an impressive 36%, with premium income from new
business at Rs. 253.43 billion during the fiscal year 2004-2005, braving stiff competition from p
rivate insurers. Though the total volume of LIC's business increased in the last fiscal year (2004-
2005) compared to the previous one, its market share came down from 87.04 to 78.07%. The 14
private insurers increased their market share from about 13% to about 22% in a year's time. The f
igures for the first two months of the fiscal year 2005-06 also speak of the growing share of the p

28. 28
rivate insurers. The share of LIC for this period has further come down to 75 percent, while the p
rivate players have grabbed over 24 percent.
There are presently 12 general insurance companies with four public sector companies and eight
private insurers. According to estimates, private insurance companies collectively have a 10% sh
are of the non-life insurance market.
The Insurance Regulatory and Development Authority Reforms in the Insurance sector were initi
ated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its inco
rporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regul
ations and registering the private sector insurance companies.
The other decisions taken simultaneously to provide the supporting systems to the insurance sect
or and in particular the life insurance companies were the launch of the IRDA’s online service fo
r issue and renewal of licenses to agents
ProtectionPlans
a. Life guard
b. Investshield life
c. Investshield cash
d. Investshield gold
e. Premier life
f. Life Time & Life Time II
g. SecurePlus
h. CashPlus
i. CashBak
Child Plans
a. SmartKid regular premium

29. 29
b. SmartKid unit-linked regular premium
c. SmartKid unit-linked regular premium II
New Product will be launched soon.
Retirement Plans
a. Golden Years
b. InvestShield Pension
c. LifeTime Pension II
d. LifeLink Pension II
e. SecurePlus Pension
f. Forever Life
g. General Insurance
h. TERM PLANS
Term insurance protects your family's future and ensures that they lead their lives comfortably w
ithout any financial worries, even in your absence. By offering these plans at competitive rates, t
erm insurance provides an opportunity to enjoy insurance cover at affordable prices.
COMPITERS OF D.S.C.D IN LIFE INSURANCE
Name of organization Market share
ICICI PRUDENTIAL 72%
LIC 88%
BAJAJ ALLIANZ 2.8%
HDFC SLIC 3.2%
TATA AIG 1.3%
BIRLA SUN LIFE 2.3%

30. 30
1.
2. LIFE INSURANCE CORPORATION (LIC)
The Life Insurance Corporation of India (LIC), a public sector enterprise, is the insurance
company in India, selling insurance products and related services.
LIC had a variety of insurance plans to cater to various categories of people and their diverse ne
eds. The company offered life insurance and group insurance. It also provided social security sc
hemes and pension schemes. Each of its business products offered a variety of different plans t
o suit different customers and situations.
Investment in LIC was considered by a majority of its customers to be reliable and secure. Housi
ng loans were granted through its subsidiary and LIC sold its market savings and investment pro
ducts through its mutual fund subsidiary, LIC Mutual Fund Ltd. To serve its 140 million policyhol
ders (2001 end), the insurance giant had 1.25 lakh employees and 6.51 lakh agents across the c
ountry.
SBI LIFE 2.2%
MAX NEW YORK 0.9%

31. 31
The company, which was based in Mumbai, had seven zonal offices, 100 divisional offices, and
2,048 branch offices that spanned the country. LIC's penetration in rural areas was very high; 18
% of its total business came from rural areas.
Since LIC enjoyed monopoly status for over four decades, it emerged as one of the key public fu
ndraisers in India. However, things began changing in the mid-1990s, when the Government of I
ndia decided to privatize the insurance sector. The Malhotra committee's (formed to explore the
possibility/feasibility? of privatizing the Indian insurance industry) recommendations in 1994 bro
ught about a sea change in the industry.LIC found itself in a difficult situation when the newly fo
rmed Insurance Regulatory Development Authority (IRDA) issued licenses to many private insur
ance companies (starting November 2000)
3. TATA AIG
Founded by Jamsedji Tata in the 1860s, the Tata Group's early years were inspired by the spirit o
f nationalism. The Tata Group pioneered several firsts in Indian industry: India's first private sect
or steel mill, first private sector power utility, first luxury hotel chain and first international airlin
e, amongst others.
In more recent times, the Tata Group's pioneering spirit continues to be showcased by companies
like Tata Consultancy Services (TCS), today Asia's largest software and services company, and
Tata Motors, the first car maker in a developing country to design and produce a car from the gro
und up.
The Tata Group is India's best-known industrial group with an estimated turnover of around US
$ 14.25 billion (equivalent to 2.6 % of India's GDP). Known for its adherence to business ethics,
it is India's most respected private business group. With more than 220,000 employees across 91
major companies, it is also India's largest employer in the private sector
THE AIG GROUP
Tata AIG Life Insurance Company Ltd. and Tata AIG General Insurance Company Ltd. (collecti
vely "Tata AIG") are joint venture companies, formed from the Tata Group and American Intern
ational Group, Inc. (AIG). Tata AIG combines the strength and integrity of the Tata Group with

32. 32
AIG's international expertise and financial strength. The Tata Group holds 74 per cent stake in th
e two insurance ventures while AIG holds the balance 26 per cent stake.
Tata AIG Life Insurance Company Ltd. provides insurance solutions to individuals and corporate
s. Tata AIG Life Insurance Company was licensed to operate in India on February 12, 2001 and s
tarted operations on April 1, 2001. Tata AIG Life offers a broad array of life insurance coverage
to both individuals and groups, with various types of add-ons and options available on basic life
products to give consumers flexibility and choice.
American International Group, Inc. (AIG) is the world's leading international insurance and finan
cial services organization, with operations in approximately 130 countries and jurisdictions.
AIG member companies serve commercial, institutional and individual customers through the m
ost extensive worldwide property-casualty and life insurance networks of any insurer.
4. BIRLA SUN LIFE
Birla Sun Life Insurance is the coming together of the Aditya Birla group and Sun Life Financial
of Canada to enter the Indian insurance sector. The Aditya Birla Group, a multinational conglom
erate has over 75 business units in India and overseas with operations in Canada, USA, UK, Thai
land, Indonesia, Philippines, Malaysia and Egypt to name a few.
Birla Sun Life Insurance Company Limited is a joint venture between The Aditya Birla Group, o
ne of the largest business houses in India and Sun Life Financial Inc., a leading international fina
ncial services organization. The local knowledge of the Aditya Birla Group, coupled with the exp
ertise of Sun Life Financial Inc., offers a formidable for your future.
The Aditya Birla Group has a turnover close to Rs. 33000 crores with a market capitalisation of
Rs. 30500 crores (as on 31st March 2005). It has over 72000 employees across all its units world
wide. It is led by its Chairman - Mr. Kumar Mangalam Birla. Some of the key organisations with
in the group are Hindalco, Grasim, Indian Rayon.

33. 33
Aditya Birla Group
The Aditya Birla Group is India's first truly multinational corporation. Global in vision, rooted in
Indian values, the Group is driven by a performance ethic pegged on value creation for its multi
ple stakeholders.
A US$ 7.59 billion conglomerate, with a market capitalization of US$ 7 billion, it is anchored by
an extraordinary force of 72,000 employees belonging to over 20 different nationalities. Over 30
per cent of its revenues flow from its operations across the world. A premium conglomerate, the
Aditya Birla Group is a dominant player in all of the sectors in which it operates. Such as viscose
staple fibre, non-ferrous metals, cement, viscose filament yarn, branded apparel, carbon black, c
hemicals, fertilisers, sponge iron, insulators and financial services. It is:
 The world's largest single location palm oil producer
 A globally competitive, fast-growing copper produce
 The world's eighth largest producer of cement, and the largest in a single geography
 India's premier branded garments player
 Among India's most energy efficient private sector fertilizer plants
 The no. 2 private sector insurance company, and the fourth largest asset management company in
India
Mission
To help our customers achieve financial prosperity and peace of mind.
Vision

34. 34
To distinguish Prudential as an admired multinational financial services leader, trusted partner, a
nd provider of innovative solutions for growing and protecting wealth.
Core Value
Our core values are the principles that guide us daily in hel
ping our customers achieve financial prosperity and peace o
f mind. At all times, we strive to distinguish Prudential as an
admired multinational financial services leader and trusted
brand that is differentiated by top talent and innovative solut
ions for all stages of life.
Worthy of Trust: We keep our promises and are committed to doing business the right way.
Customer Focused: We provide quality products and services that meet our customers' needs.
ROLES & RESPONSIBILITIES OF THE ORGANISATION
As a life insurance advisor with Delhi State Co operative bank, you would be the primary connec
t between customers and Bank. Your main function would be to solicit life insurance business on
behalf of the Company. At the same time, you need to gain trust of the prospects and advise the
m suitably, keeping their insurance needs in mind. As an advisor you would be required to play t
he unique role, whereby, you would be trusted by the customer as well as the Insurer.
 You would be required to interact with individuals and families to.
 Understand their insurance protection and investment needs.
 Identify and recommend solutions that best fit their
requirements.
 Offer the prospect or existing customer a complete product
portfolio.
 Complete the formalities necessary to get the policy issued.

35. 35
1.2 Environment Scanning
ENVIRONMENT SCANNING OF D.S.C.B (PEST)
Political Environment
Endorsing the fact that RBI plays a vital role in proceeding of Delhi State cooperative bank and
Foreign and penetrating rules to the whole Indian banking sector. Hence, the RBI's 1919 monetar
y policy control system accrued the efficiency, competitiveness and productivity between the ban
king sectors. However, with accordance to the Banana banking skims 2010 survey the political in
terference accounted as the major risk for banking sector.
 Economic Environment
Economic fluctuations reflect fragile and lucrative effect to the banking sector financial system.
Considering the "India vision 2020" belayed by planning commission of Indian government in or
der to ideate the banking sector future.
The commission seeks to raise the india's ranking from 11th to 4th in world development report f
rom GDP ratio perspective and transform in india from low income nation to upper middle inco
me nation. To implement the vision, priorities and striving to increase the annual GDP growth fr
om 8.5% to 9 % in next 7 years and Indian vision seeks to mitigate the agriculture share from 2.8
% to 6% which could be prove to SBI term of investment in infrastructure, technology and opera
tion.
 Social Environment
According to 1950-2050 demographic studies India’s fruition rate is waiting from 5.91% to 2.76
% today and is expected to decrease more to 1.8%. Furthermore, India’s demise rate is mitigating
from 22.5% 1950-55 to 8.5 % now and will reach lowest rate 7.9% in 2020-25. The mentioned s
tatistics indicate the sign of longer income of customer to the state bank of india group and the tr
ansition of customer target to the younger customers as india will be entitled as the youngest nati
on during 2010-2025.

36. 36
 Technology Environment
The term information technology has remained a revitalize factor for the success of banking sect
or operation . Thus, the foreign banking sectorsector entered the indian market with asserting the
tecnological based approach while processing new technological innovation . Hence the SBI is re
quired to respond to such approach in order to rebound their market share , as the bank has been
staggering from loss of market share due to being un responsiveness to technological changes.
1.3 PORTER’S5 FORCES MODEL
Porter’s model is, applied microeconomic principles to business strategy and analyzed the strateg
ic requirements of industrial sectors, not just specific c
ompanies. The five forces are competitive factors whi
ch determine industry competition and include: suppli
ers, rivalry within an industry, substitute products, cus
tomers or buyers, and new entrants.
1. Threat of New Entrants. The average person can't
come along and start up a bank, but there are services,
such as internet bill payment, on which entrepreneurs
can capitalize. Banks are fearful of being squeezed out of the payments business, because it is a
good source of fee-based revenue. Another trend that poses a threat is companies offering other
financial services. What would it take for an insurance company to start offering mortgage and
loan services? Not much. Also, when analyzing a regional bank, remember that the possibility of
a mega bank entering into the market poses a real threat.
2. Power of Suppliers. The suppliers of capital might not pose a big threat, but the threat of
suppliers luring away human capital does. If a talented individual is working in a smaller
regional bank, there is the chance that person will be enticed away by bigger banks, investment
firms, etc.
3. Power of Buyers. The individual doesn't pose much of a threat to the banking industry, but one
major factor affecting the power of buyers is relatively high switching cost. If a person has a
mortgage, car loan, credit card, checking account and mutual funds with one particular bank, it
can be extremely tough for that person to switch to another bank. In an attempt to lure in

37. 37
customers, banks try to lower the price of switching, but many people would still rather stick
with their current bank.
4. AvailabilityofSubstitutes. As you can probably imagine, there are plenty of substitutes in
the banking industry. Banks offer asuite of services over and above taking deposits and
lending money, but whether it is insurance, mutual funds or fixedincome securities, chances
are there is a non-banking financial services companythat can offer similar services.
5. Competitive Rivalry. The banking industry is highly competitive. The financial services
industry has been around for hundreds of years, and just about everyone who needs banking
services already has them. Because of this, banks must attempt to lure clients away from
competitor banks. They do this by offering lower financing, preferred rates and investment
services.

38. 38
1.4 My workplace in bank
In my bank i was looking the query desk counter on which my main work was to deal and solve
the query of customer who doesn’t know where to go and on which counter for particular work. I
used to suggest them on which counter they need to go. I was also doing financial transaction
like , NEFT , RTGS, Transer of cheques etc. I was also dealing in cash counter , if any customer
mainly in our bank old age customer come for get his pension so there on large number of
customer used to come to me for cash withdrawn. i was also providing them statement of them
accounts. And if any customer having his passbook so i updated them , I was also helped in bank
operation work .So I learned so many things about banking and finance

39. 39
CHAPTER 2
RESEARCH METHODOLOGY
2.1 Statementof problem
The top 4 challenges facing banks and financial institutions
1. Not making enough money. Despite all of the headlines about banking profitability, banks and
financial institutions still are not making enough return on investment, or the return on equity,
that shareholders require.
2. Consumer expectations. These days it’s all about the customer experience, and many banks are
feeling pressure because they are not delivering the level of service that consumers are
demanding, especially in regards to technology.
3. Increasing competition from financial technology companies. Financial technology (FinTech)
companies are usually start-up companies based on using software to provide financial services.
The increasing popularity of FinTech companies is disrupting the way traditional banking has
been done. This creates a big challenge for traditional banks because they are not able to adjust
quickly to the changes – not just in technology, but also in operations, culture, and other facets of
the industry.
4. Regulatory pressure. Regulatory requirements continue to increase, and banks need to spend a
large part of their discretionary budget on being compliant, and on building systems and
processes to keep up with the escalating requirements.
These challenges continue to escalate, so traditional banks need to constantly evaluate and impro
ve their operations in order to keep up with the fast pace of change in the banking and financial i
ndustry today.
2.2 objectives and scope of study
To stave off the threat from alternative financial services providers and retain their place as cons
umers' trusted providers of choice, banks must learn from the very non-bank competitors that see
k to disinter mediate them.
While some of these non-bank competitors cater to customer segments not served by traditional
banks — with payday lending and check cashing services, for instance — many target banks' exi
sting customers. And while some undoubtedly are flashes in the pan and others potential partners
, many pose a very real threat to banks.

40. 40
The competitor most likely to instill fear in banks today is San Jose, Calif.-based PayPal. HP's (P
alo Alto, Calif.) chief technologist for financial services, Ross Feldman, calls PayPal "the poster
child of new technology," adding, "They are the No. 1 scary emerging player in the eyes of bank
ers." Noting that PayPal's capabilities continue to evolve, Nicole Sturgill, research director for C
EB TowerGroup (Arlington, Va.), says the payments company is "a massive competitor" for ban
ks.
 Bank of America Executive Places Importance on Risk Management as New Banking
Technologies Emerge
 The Pursuit of New Revenue Generators: How Banks Can Monetize New Digital
Technologies
 6 Steps for Building the Next-GenBank IT Workforce
For bankers, the key is not only to determine if alternative financial services providers such as Pa
yPal are friends or foes, but to study what these companies do well (and not so well) and apply th
at knowledge to raise the level of service provided by their own institutions. Think of the quarter
back who watches hours of video of the opposing team's defense — it's critical that the quarterba
ck study the defense's strengths and exploit its weaknesses to make the big plays.
Similarly, for banks to beat non-bank competitors, they need to exploit their opponents' strengths
and weaknesses. Here are five key plays for banks that intend to win:
1. Rethink the Branch Model
Even though most non-bank competitors — sans Walmart and a few others — eschew brick and
mortar for online and mobile delivery channels, banks can advantageously use branches if they r
ethink the branch model, according to Bob Meara, a senior analyst with Boston-based Celent. As
banks continue to migrate customer transactions to less-costly self-service channels, they should
evolve their branch networks into an efficient and effective sales channel simultaneously, he exp
lains.

41. 41
5 WINNING PLAYS FOR BANKS
1. Rethink the branch model.
2. Watch payments closely.
3. Mine data to improve customer.
4. Keep it 'simple.'
5. Get over regulations.
ATMs present a similar opportunity, Meara adds. "Walmart won't have its own ATM fleet anyti
me soon, since it's an expensive channel," he says. "Banks have an opportunity to leverage ATM
s beyond just updating them for Americans With Disability Act (ADA) requirements."
The RHB Banking Group, the fourth-largest financial services firm in Malaysia, recently launche
d Easy, a branch network that comprises mini-branches as well as kiosks located in supermarkets
, light rail stations and post offices that cost 85 percent to 90 percent less than ordinary branches.
RHB designed the branches to attract Malaysia's mass market, an underserved market that other
banks in the country deem unprofitable. "With Easy, RHB turned branch economics on its ear an
d massively increased its footprint," says Meara.
[Are You Making It Easier or Harder for Customers to Do Business With You? ]
Another bank successfully using branches is London-based Metro Bank, the U.K.'s first new hig
h-street bank in more than 100 years. According to reports, customers line up outside when new
branches open. The bank markets its "unparalleled levels of service and convenience," including
non-traditional branch hours and the ability to open an account and receive a debit card in a singl
e visit. The bank opened four "stores" in 2010 and projects 40 by 2014 and 200 by 2020.
RHB's Easy and Metro Bank have changed branch economics, says Meara. In contrast, he questi
ons JPMorgan Chase's strategy of building 5,000-square-foot branches in the southeastern U.S. "
How can those branches be a good financial decision?" he asks.
While physical branches have a place in their physical communities, banks also can leverage bric
ks and mortar to create virtual communities, says TowerGroup'sSturgill. Post a Facebook page or
encourage branch managers to tweet information not only about financial products but happenin
gs in the community, she advises. "By leveraging social media, the branch can serve as a point of
reference for the local community." As an example, the PNC Virtual Wallet has won "rabid cust
omer fans" by creating a virtual community to share information, Sturgill says.
2. Watch Payments Closely
Many non-bank competitors are focused on the payments space, explains BITS president Paul S
mocer. For BITS, the technology division of the Financial Services Roundtable, payments is a lik

42. 42
ely "game-changer," and disintermediation of banks in the payments stream remains a concern, S
mocer says. Payments is not as well established as other banking infrastructures, he notes, but it's
still questionable whether a non-bank competitor can successfully create a new, widely adopted
payments infrastructure.
No matter what payments technology non-bank competitors unleash, however, banks still have a
trump card: Their strong and long-standing relationships with their customers, says Smocer. HP's
Feldman adds, "Trust is very important, and customers are most comfortable with banks due to s
ecurity, stability and history. Banks are good at moving money and need to leverage that expertis
e."
3. Mine Data to Improve Customer Service
Banks have access to a ton of customer data to shape new products and services, notes Feldman.
"Because banks have scale with millions of customers, they are able to move trends quickly," he
says. "Emerging upstarts take more time to move markets."
Non-bank competitors, however, have a very real opportunity to steal away customers disenfranc
hised with banks or those customers just looking for a different financial experience. "Players su
ch as Amazon and Google have the ability to bring technology to market quickly and leverage th
eir extensive customer bases," Feldman warns.
TowerGroup'sSturgill argues that banks have lost trust due to customer service issues. One way t
o repair trust, she suggests, is to improve customer service.
4. Keep it 'Simple'
A payments competitor that should be on banks' radar for its innovative business model is Simpl
e, which promises a full-service banking experience using a smartphone, according to David Alb
ertazzi, senior analyst with Boston-based Aite Group. A quick visit to Simple.com imparts a ver
y easy-to-understand message: Replace your bank. Simple provides the customer interface and m
obile technology, and Bancorp Bank, a $3 billion asset bank headquartered in Wilmington, Del.,
processes and holds the FDIC-insured accounts.
In the physical world, Simple's business model is akin to a one-stop financial products store that
gives consumers access to products from many banks, similar to a department store carrying sho
es and clothing from many designers. Simple serves as the storefront and provides the consumer
service, and Bancorp (and likely other banks as well) supplies the financial products, according t

43. 43
o TowerGroup'sSturgill. Not yet launched, Simple is available by invitation only and has a wait l
ist numbering about 200,000, she says.
Movenbank, another new entrant, headquartered in New York and incorporated in Delaware, is
a mobile and web-based-only bank. But unlike Simple, it follows the model of direct banks such
as ING Direct, explains Sturgill. Movenbank, expected to open its virtual doors late in 2012, is al
so invitation-only and touts, "We're building a better banking experience, and we want you along
for the ride."
5. Get Over Regulations
Of course, non-bank competitors have enjoyed a less-onerous regulatory burden than banks. Ban
ks, meanwhile, must contend with what Martin Cole, president and CEO of Ohio- based Andove
r Bank ($330 million in assets), called "cost discrimination against banks" in testimony before th
e U.S. House Financial Institutions and Consumer Credit Subcommittee in April. To make his po
int, Cole cited the example that banks pay for examinations under the Consumer Financial Protec
tion Bureau (CFPB) while the Federal Reserve pays those fees for non-banks.
Although a definite headwind, regulations can spur bank innovation, believes HP's Feldman. "I d
on't think regulations will make banks a secondary player," he says. "Banks are good at leveragin
g the right technology partners to meet regulatory and security challenges." Since regulations cut
into profit margins, however, banks will be forced to be creative, he predicts.
BITS is looking at the intersection of regulation and innovation, according to the organization's S
mocer, who says BITS tries to educate consumers that although non-bank players may appear att
ractive, the difference between technology firms and banks is that banks have built-in consumer
protections. "Banks have the right controls and risk mitigation in place before they roll out a new
channel or product, and we want customers to understand that," he says.
Yes, banks may feel the pressure from non-bank competitors. But these competitors can teach ba
nks a few things about customer service, employing emerging technology and building communi
ties. If you can't beat them, join them
With Monday as the deadline for applications for niche banking licence, several are queuing to a
pply. Airtel, Oxigen, ItzCash, MobiKwik and FINO PayTech and private sector lenders ICICI Ba
nk and Kotak Mahindra Bank, among others, have evinced interest to apply or partner for one. H
owever, concerns around increased competition and profitability remain.
The Reserve Bank of India (RBI) had released the final guidelines for payment banks in Novemb

44. 44
er last year, allowing telecom companies, retail chains, and corporate houses to apply. Even gove
rnment-owned entities such as India Post.
Non-resident individuals (NRIs) have also been allowed to apply for the niche banking licence, p
rovided they plan to return to India. The central bank has allowed interested parties to form an all
iance with a lender for setting up a payment bank.
Considering payment banks are not allowed to lend, the concern on profitability is key. The majo
r source of revenue would be from fees and income from treasury operations. As a result, it is unl
ikely they will be able to offer above a four per cent interest rate on savings bank accounts, simil
ar to what is offered by most existing lenders. Therefore, attracting deposits might not be easy.
However, players believe the ease and convenience offered to customers could help them tide ov
er the similarity in interest rates offered by other lenders.
In the final guidelines, the regulator has expanded the scope of services of these players, providin
g for additional revenue streams. For instance, they can now provide third-party products such as
mutual funds and insurance. Banks have also been allowed to function as a business corresponde
nt (BC) of another bank and do international remittance.
Despite this, financial viability is a pressing issue. “We will have to focus on technology and vol
ume. This business is that of high-volume and low individual value and, therefore, one will have
to achieve cost efficiency and economy of scale in order to be profitable,” said Dipak Gupta, join
t managing director, Kotak Mahindra Bank.
Airtel M Commerce Services, a wholly-owned subsidiary of BhartiAirtel, is applying for a licenc
e and Kotak Mahindra Bank will acquire 19.9 per cent stake in it.
AmanBhargava, director (financial services advisory) at Grant Thornton India, said the focus for
every player will have to be leveraging on technology to control cost for breaking even faster.
Experts believe payment banks might take at least three years for break-even. RBI’s idea behind
having these niche banks is to deepen financial inclusion. As a result, payment banks need to hav
e at least 25 per cent of physical access points, including BCs, in rural centres.
“Initially, players will have to incur higher costs in setting up the infrastructure in rural areas and
this will require large investments. Though one can tie up with some existing players like retaile
rs for cash-out, the majority of investments needs to be done by the banks,” said Sunil Kulkarni,
deputy managing director, Oxigen. However, since the area of operations will not be limited to t
he hinterland applicants see an opportunity in tapping even the urban unbanked population.

45. 45
“Even after having 25 per cent in rural areas, there is still a significant opportunity in the urban a
reas,” added Kulkarni.
Another challenge is from the large number of potential customers already covered under the Jan
DhanYojana. However, those applying for a licence are trying to see a silver lining in the cloud.
“People in urban areas also have more than two accounts and the same can happen here, too. Indi
viduals who have already opened an account under Jan Dhan can keep that for direct benefits tra
nsfer and the other account for personal use. It is a possibility, as a lot will depend on the service
s and the convenience that payment banks might be able to offer,” said Rishi Gupta, chief operati
ng officer and executive director at FINO PayTech, which has also applied for a licence.
Gupta explains another initial challenge is in brand building and educating of consumers. Since n
iche bank operations will be different from the existing lenders, acceptance by consumers might
be another hurdle.
Payment banks can accept deposits up to Rs 1 lakh and can offer current and savings account dep
osits. They can also issue debit cards and internet banking.
Both cash-in and cash-out services are allowed through various channels such as branches, auto
mated teller machines and BCs. Cash-in could be made through mobile banking and cash-out via
point-of-sale terminals. Payment banks have been allowed to serve as BCs for other lenders as w
ell.
However, payment banks are barred from taking deposits from NRIs.
In-bound remittances into accounts maintained by residents with a payment bank will be treated
as deposits.
The minimum capital requirement for setting up a payment bank has been pegged at Rs 100 cror
e.
The final deadline for applications was earlier January 16, now revised to February 2.
NEED FOR FINANCIAL INCLUSION
According to the NSSO 59th Round Survey results
• 51.4% of farmer households are financially excluded from both formal and informal sources

46. 46
• Of the total farmer households, only 27% access formal sources of credit; one-third of this grou
p also borrowed from non-formal sources
• Overall, 73% of farmer households have no access to formal sources of credit
PAYMENT BANKS’ SCOPE OF ACTIVITIES
Do’s
* Has to use the word ‘Payments Bank’ in its name to differentiate from other banks
* Accept demand deposits, i.e., current deposits, and savings bank deposits from individuals, sm
all businesses and other entities
* To hold a maximum balance of Rs 1 lakh per individual customer
* Will be allowed to set up branches, ATMs, business correspondents
* Allowed to issue debit cards also offer internet banking
* Can accept a large pool of money to be remitted but at the end of the day the balance should no
t exceed Rs 1 lakh
* Can accept remittances to be sent to or receive remittances from multiple banks
* Permitted to handle cross-border remittance transactions in the nature of personal payments / re
mittances on the current account
* Allowed to distribute mutual fund products, insurance products and pension products
* Bank can also undertake utility bill payments
Don’ts
* No NRI deposits should be accepted

47. 47
* Cannot issue credit cards
* Not allowed to set up subsidiaries to undertake non-banking financial services activities
* Other financial and non-financial services activities of the promoters should not be mingled wit
h the working of payment banks
OBJECTIVES OF BANKS
1. SOCIAL WELFARE: It was the need of the hour to direct the funds for the needy and requir
ed sector of the Indian economy. Sector such as agriculture small and village industries were in n
eed of funds for their expansion and further economic development.
2. Controlling private monopolies: prior to nationalization many banks were controlled by priv
ate business houses and corporate families. It was necessary to check these monopolies in order t
o ensure a smooth supply of credit to socially desirable sections.
3. Expansion of banking: In a large country like india the numbers of banks existing those days
were certainly inadequate .It was necessary to spread banking across the country.It could be done
through expanding banking network in the un banked areas.
4. Reducing regional imbalance : In a country like india where we have a urban rural divide; it
was necessary for banks to go in the rural areas where the banking facilities were not available.In
order to reduce this regional imbalance nationalization was justified.
5. Priority sector lending: In a country like india where we have a urban rural divide, it was nec
essary for banks to go in the rural areas where the banking facilities were not available .In order t
o reduce this regional imbalance nationalization was justified.
5. Priority sector lending: In India , the agriculture sector and its allied activites were the larges
t contributor to the national income. Thus these were labeled as the priority sector .But unfortuna
tely they were deprived of their due share in the credit.Nationalisatgion was urgently needed for
catering funds to them.
6. Developing banking habits: In India more than 70% population used to stay in rural areas.It
was necessary to develop the banking habit among such a large population.
VISION & MISSION STATEMENT
CORPORATE VISION OF THE BANK

48. 48
We envision to emerge as a strong vibrant Bank through synchronization of human, financial and
technological resources.
THE MISSION STATEMENT OF THE BANK
To put in place the effective Risk Management and Internal Control System.
To adopt and operationalise high – level technology standards.
To strive to achieve excellence in Customer Service.
To achieve the highest standards of transparency and accountability in the conduct of banking bu
siness.
To adopt professional approach in effectively managing financial as well as nonfinancial risks.
To maximize profitability and profits of the Bank with due compliance of prudential guidelines.
To maximize competitive risk adjusted return on capital, through planned reduction in the averag
e cost of funds, increased yield on advances and investments besides reduction in cost of operatio
ns.
YOUR RIGHTS AS A CUSTOMER OF OUR BANK
As our valued customer, you enjoy the following rights from our Branches network through out
the country:
1. TIME SCHEDULE
1. Receipt of Cash 10-15 Minutes
2. Encashment of Cheques 10-15 Minutes
3. Issue of Cheque-Book/DDs/Pos 15-20 Minutes
4. Opening of an Account 15-20 Minutes
5. Payment of DDs/Pos 10-20 Minutes
6. Payment/Renewal of FDRs 20-25 Minutes
7. Retirement of Bills 20-30 Minutes
8. Updation of Pass Book/ Issue of Account Statement 05-10 Minutes

49. 49
9. Statement of Account to be On every 5th issued regularly of the Month.
10. Collection of Cheques Local : 2-4 days
Outstation: 10-14 days
2. COMMON PRACTICES FOLLOWED BY OUR BRANCHES FOR YOUR CONVENI
ENCE
1. Display of business hours.
2. Attend to all customers present in the banking hall at the close of business hours and rendering
of courteous service.
3. Provide separate ‘Enquiry’ or ‘May I Help You’ at large Branches.
4. Offer nomination facility to all deposit accounts (i.e. account opened in individual capacity) a
nd all safe deposit hirers (i.e. individual hirers).
5. Display interest rates for various deposit schemes from time to time.
6. Notify change in interest rates on advances.
7. Display of Service Charges on issue of Demand Drafts, Pay Orders, Duplicate Drafts, Cancell
ation of Drafts, Collection of Documents, etc.
8. Display Time – Norms for various Banking Transactions.
9. Pay interest for delayed credit of outstation cheques, as advised by Reserve Bank of India (RB
I) from time to time.
10. Display of availability of Locker facility at the Branch.
11. Display of Tax Collection facility at the Branch.
12. Accord immediate credit in respect of outstation and local chequesupto a specified limit subj
ect to certain conditions, as advised by RBI from time to time.
13. Provide complaint/suggestion box in the Branch premises.
14. Display address of Zonal & Head Offices, as well as Nodal Officer dealing with customer gr
ievances/complaints.
15. Name and address of the concerned banking ombudsman.
16. Corruption free service to all customers.

50. 50
17. We have extended business hours in our fully computerized branches in Delhi
CHEQUE COLLECTION SERVICE
1. Policy on collection of cheques payable locally
The customer’s account shall be credited in respect of local cheques latest on third working day f
rom the date of acceptance of cheques at the counters / dropped in drop boxes within the time ind
icated for local clearing on the same day (each branch would specify its own cut-off time depend
ing upon its working hours and distance from the clearing house) and on fourth working day if d
eposited beyond the timings indicated on drop boxes / Notice Board.
2.OutstationCheques
(i) Time frame for affording customer’s Account
Cheques to be collected at major Metropolitan centers in 10 days and at other centers in 14 days.
(ii) Policy of compensation on Delayed collection
The bank will pay interest to its customers on delayed collection as applicable on saving bank de
posit for the delayed period beyond the prescribed period i.e 10/14 days as the case may be . Suc
h interest shall be paid without demand from the customers in all types of accounts.
Facility of Immediate credit of cheques sent for collection local and outstation.
The instant credit of outstation / local cheques are permitted only up to Rs. 5000/-, subject to usu
al safeguards and Bank is satisfied about the proper conduct of the account of customer.
The Bank will extend the facility to all individual depositors without making a distinction about
their status i.e Saving Bank , Current or Cash credit.
If cheques / instrument for which immediate credit has been afforded is returned unpaid bank sha
ll recover interest at clean overdraft rate for the period bank remained out of funds and recover pr
escribed cheque returned charges subject to the following:
1) No interest will be charged to the customer for the period between the date of credit of the out
station cheque lodged and its return.
2) Bank will charge interest from the date of return of the cheque till reimbursement of money to
the bank.

51. 51
3) Where the cheque is credited to a Saving Bank Account ,no interest will be payable on the am
ount so credited if the cheque is returned..
4) If the proceeds are credited in overdraft / Loan account , interest would be recovered at applic
able rate on the amount of returned cheque / instrument .
CREDIT CARD / ATM CARD FACILITIES
Some of the special features of this card are as under.
• Maximum Interest Free Credit period: Buy Now and Conveniently Pay Latter and get the Maxi
mum Interest Free Period on your Gold and Silver card upto 52 days and 50 days respectively
. • Revolving Credit Facility: Pay Just 5% of your Credit Card bill and continue to use card, Man
age expenses conveniently
. • Free Insurance benefits: Get covered with Accident Insurance, Hospitalization Insurance and
much more for free
. • Powerful Rewards Programme:
• Purchase Protection Any thing you buy is insured against damage or loss due to fire or theft. G
et purchase protection uptoRs. 40000/- and Rs. 20000/- on your Gold and Silver Credit Card resp
ectively.
• Limited Lost Card Liability:
• Global Acceptance The card is accepted at over 1,25,000 merchant establishment in India and
Nepal and over 25 million MasterCard accepting establishments worldwide. No need to carry cas
h whenever your travel.
• Balance Transfer: Transfer the outstanding balance of your other Bankcard to your Punjab & S
ind Bank Credit Card and pay lower interest.
• ATM facility:
• Comprehensive Travel Benefits:
• 24 Hour Customer Care Centre:
MARKETING & INSURANCE PRODUCTS
(i) Non Life Products: We are agent of M/s Bajaj Allianz General Insurance Company and sell all
their non-life products through our network of branches across the country.
(ii) Life Products: Our bank has tie up arrangement of Life Insurance business with M/s Aviva Life
Insurance Company India Pvt. Ltd. We are offering their following three products:
(a) Life Bonds

52. 52
(b) Easy Life Plus
(c) Pension Plus The Customers may consult our branches for more details
FAIR BANKING PRACTICES
We request you as our customers to please note the following duties to enable us to serve you bet
ter.
1. Ensure safe custody of cheque book and pass book.
2. Preferably use reverse carbon while writing a cheque.
3. Issue crossed/account payee cheques as far as possible.
4. Check the details of the cheque, namely, date, amount in words and figures, crossing, etc., bef
ore issuing it. As far as possible, issue cheques are rounding off the amount to nearest rupee.
5. Not to issue cheque without adequate balance, maintain minimum balance as specified by the
Bank.
6. Send cheques and other financial instruments by Registered Post or by courier.
7. Bring pass book while withdrawing cash from Saving Bank account through withdrawal slip.
Get pass book updated from time to time.
8. Use nomination facility in all deposits accounts & locker facility.
9.Note down account numbers, details of
10.FDR, locker numbers, etc., separately.
11. Inform loss of demand draft, fixed deposit receipt, cheque leave(s) /book, key of locker, etc.,
immediately to the Branch.
12. Avail standing instructions facility to repeat transactions.
13. Provide feedback on our service.
14. Pay interest, installments, locker rent and other dues on time.
15. Avail services such as ATM, EFT, etc., if offered by the branch.
16. Bring any deficiency in services to the notice of the Branch Manager.

53. 53
17. Not to sign blank cheque(s). So also do not record your specimen signature either on pass bo
ok or on cheque book.
18. Not to introduce any person, who is not personally known to you for the purpose of opening
account.
19. Not to bribe any staff member, to avail corruption free service.
2.3 Managerialusefulness ofstudy
The main motive of this project is to focus on the banking industry how they work in this compet
itive environment. By the help of this we can easily identify our work culture in banking industry
.It is very tough competition in marketing in banking industry. Because there are so many branc
hes are coming which is new in marketing. They are new in technology and also they have good
educated employee and also work dedicated. They have more technology and knowledge about h
ow to deal with customer. By the help of this I know few things about the banking how to talk wi
th the customer, how to acquire new customers, how to deal with irate customer and how to act
with them so they will not leave banking with us.
2.4 Types of researchand researchdesign
SWOT ANALYSIS OF D.S.C.B
Strengths of D.S.C.B
D.S.C.B is the second largest in terms of total assets and market share
Total assets of D.S.C.B is Rs. 4062.34 Billion and recorded a maximum profit after tax of Rs. 51.
51 billion and located in 19 countries
One of the major strength of D.S.C.B bank according to finan
cial analysts is its strong and transparent balance sheet
D.S.C.B bank has first mover advantage in many of the banki
ng and financial services. D.S.C.B bank is in India to introdu
ce complete mobile banking solutions and jewelry card

54. 54
ICICI bank has the longest working hours and additional services offering at ATM’s which attrac
ts customers
Marketing and advertising strategies of D.S.C.B have good reach compared to other banks in Ind
ia
Weaknesses of D.S.C.B
Customer support of D.S.C.B section is not performing well in terms of resolving complaints
There are lots of consumer complaints filed against D.S.C.B
TheD.S.C.B bank has the most stringent policies in terms of recovering the debts and loans, and
credit payments. They employ third party agency to handle recovery management
There are also complaints of customer assault and abuse while recovering and the credit payment
reminders are sent even before the deadlines which annoys the customers
The employees of D.S.C.B are bank in maximum stress because of the aggressive policies of the
management to win ahead in the race. This may result in less productivity in future years
Opportunities of D.S.C.B
Banking sector is expected to grow at a rate of 17% in the next three years
The concept of saving in banks and investing in financial products is increasing in rural areas as
more than 62% percentage of India’s population is still in rural areas.
As per 2010 data in TOI, the total number b-schools in India are more than 1500. This can ensure
regular supply of trained human power in financial products and banking services
Within next four years D.S.C.B bank is planning to open Lots of new branches
Small and non performing banks can be acquired by D.S.C.B because of its financial strength
D.S.C.B bank is expected to have 20% credit growth in the coming years.

55. 55
D.S.C.B bank has the minimum amount of nonperforming assets
Threats of D.S.C.B
RBI allowed foreign banks to invest up to 74% in Indian banking
Government sector banks are in urge of modernizing the capacities to ensure the customers switc
hing to new age banks are minimized
HDFC,ICICI ,AXIS is the major competitor for D.S.C.B, and other upcoming banks like City B
ank , HSBC impose a major threat In rural areas the micro financing groups hold a major share
Though customer acquisition is high on one side, the unsatisfied customers are increasing and m
ake them to switch to other banks.
2.5 Data collectionmethods
The choice of method is influenced by the data collection strategy, the type of variable, the
accuracy required, the collection point and the skill of the enumerator. Links between a var
iable, its source and practical methods for its collection can help in choosing appropriate m
ethods. The main data collection methods are:
· Registration: registers and licences are particularly valuable for complete enumeration, bu
t are limited to variables that change slowly, such as numbers of fishing vessels and their c
haracteristics.
· Questionnaires: forms which are completed and returned by respondents. An inexpensive
method that is useful where literacy rates are high and respondents are co-operative.
· Interviews: forms which are completed through an interview with the respondent. More e
xpensive than questionnaires, but they are better for more complex questions, low literacy
or less co-operation.

56. 56
· Direct observations: making direct measurements is the most accurate method for many v
ariables, such as catch, but is often expensive. Many methods, such as observer programme
s, are limited to industrial fisheries.
· Reporting: the main alternative to making direct measurements is to require fishers and ot
hers to report their activities. Reporting requires literacy and co-operation, but can be back
ed up by a legal requirement and direct measurements.

57. 57
2.6 Limitation of study
Although there is much remains to be done, our work generates important findings in the field of
international banks competitiveness in the foreign exchange market. in other words having ackno
wledged the limitations of this study. Although the present study has yielded some preliminary fi
ndings, its design is not without flaws. A number of caveats need to be noted regarding the prese
nt study.
The main limitations are expressed as follows:
The first limitations concerns the factors of competitiveness of international banks in the foreign
exchange market.To put it in another way there might be some relevant factors , which significan
tly influence on the competitiveness of international banks in the foreign exchange market. Howe
ver the discussion of other relevant factors of competitiveness of international banks in the forei
gn exchange market is beyond the scope of this paper.It is not within the scope of this paper to pr
ovide an extended discussion of the ongoing debates. Factors of competitiveness of international
banks in the foreign exchange market are still tentative , subject to confirmation and modificatio
n through further investigation and examination. Future research would have been more convinci
ng if the research have related more factors to competitiveness of international banks in the forei
gn exchange market. The question is one that deserves empirical scrutiny.