KASABA SOCITY

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CONTENTS

1. INTRODUCTION TO PROJECT REPORT

2. INTRODUCTION TO CO-OPERATIVE SOCIETIES

3. INTRODUCTION TO AGRICULTURAL FINANCE

4. MANAGEMENT AND WORKING OF S.K.V.S.S.B

5. HISTORY AND EVALUTION OF K.V.S.S. BANK

6. DEPOSIT SCHEMES AND CREDIT FACILITIES IN

S.K.V.S.S.B.

7. SURVEY ANALYSIS AND FINDINGS

8. SUGGESTIONS AND CONCLUSION

ANNEXURE

Questionnaire

Bibliography

Sahyadri Arts & Commerce College, Shimoga1


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CHAPTER - 1

INTRODUCTION TO PROJECT REPORT

Introduction

Objectives

Purpose of study

Methodology and scope of study

Need of the Study

Limitation



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INTRODUCTION TO PROJECT REPORT

Introduction

Agriculture is the back bone of our country in India more than 75% of

people are resulting in source area and more than 69% of people depend on

agriculture for their Vigor. As agriculture is the main source of the national

Income of the country, it is also the primary source of savings and capital

formation. It accounts for about 32% of National Income of the country.

Indian formers are financially very poor. There is also rural

indebtedness. The seriousness of the rural indebtedness in India has been very

well brought out by the statement. Indian Formers are both in debts, live in

debts and die in debts.

For the successful development of agricultural in the country, an

adequate supply of finance to indispensable only when finance is available in

required amount, agriculture can be carried on as a commercial preparation

successfully. So, this Project Report is oriented and instituted soon and

advances to agricultural sector under government schemes.

This Project Report is oriented to know how the Government provides

financial ass8stat to the agricultural people and their development.

The Kasaba Bank Shikaripura has been selected for the study as to how

government work in providing financials to the needy people in the rural bank.

The following are the important objectives that we contemplate in this study.



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To make a brief study of working and management of S.K.V.S.S.B.

To study the growth and financial resource of the S.K.V.S.S.B.

To make a brief study of the customer's service provided by the

S.K.V.S.S.B.

To identify the problem faced by the S.K.V.S.S.B.

To suggest solutions by studying the problems relating to the society.

To find sources for further information concerning the society

problems.

To know about the service provided by the S.K.V.S.S.B.

To know about the service provided by the S.K.V.S.S.B.

Purpose of study:

The main purpose of Study is to know the problem faced by the Bank

and to suggest solutions to the problems faced by bank and formers problems.

Besides these purpose object are.

To know the Government helped and is helping to the agricultural people.

To study the problem faced by the agricultural people on matter of loan

borrowing.

To know the credit-facilities of Government

To Study about performance of the branch a bank.

To get general opinion about the customer.



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To get-opinion about agriculture finance provided by bank for agriculture.

To know the problem faced by bank.

To suggest solution for their problem.

To make suggestion regarding development of services to attract customer.

To know how the bank helps in development of Agriculture.

To know whether credit facilities are satisfactory to the agriculture.

To know about the recovery of loans.

Methodology and Scope of study:

The data is collected is of two types they are primary data and the

secondary data

Primary data and other type of data is collected from library books,

newspapers, literature etc, which have been enumerated in the bibliography.

This is secondary data the data has been tabulated analyzed and interpreted.

The case study has been made in the KASABA VYAVASAYA SEVA

SAHAKARA BANK Branch B H Road SHIKARIPURA

Need of the study:

1. The study makes us to know the performance and growth of the

S.K.V.S.S.B.

2. The report is helpful to understand the working and management of the

S.K.V.S.S.B.



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3. The report is helpful in knowing about the Members wants to the society's

service.

4. The study helps in knowing the financial position of the S.K.V.S.S.B.

5. It increases the knowledge regarding co-operative operations and activities.

Limitation:

The Survey however suffers limitation of time & money. Even then,

sincere efforts have been made to make the survey a realistic one to ascertain

the really and to suggest remedies for the problems.

The following are some of the limitations of the study

1. The study is conducted only on basis of data provided by

K.V.S.S.BANK

2. Conclusions are drawn on the basis of limitation data available

3. Time was limited to conduct a detailed study.

4. Customers are reluctant to give information. Hence information

provided by them may be biased.

5. Partial justice is made in this report to lack of time. As recent

information, regarding number of Kasaba co-operative societies in

India were not available at the time of preparing this project. It has not

been included.



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CHAPTER 2

INTRODUCTION TO CO-OPERATIVE SOCIETIES

Introduction

Meaning and Definition of Co-operative Society

Characteristics or Principles of Co-operative Society

Formation of a Co-operative Society

Co-operative Movement in India



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INTRODUCTION TO CO-OPERATIVE SOCIETIES

Introduction:

Co-operative societies are one of the forms of business organization.

They are found all over the world. Generally, they are formed by the working

and lower middle class people who constitute the weaker sections of the

society for the purpose of safeguarding their interest against exploitation by

powerful businessmen. Unlike, the capitalistic form of organization which has

the motto "all for himself", co-operative societies follow the motto "each for

all, and all for each", the principal theory of true co-operative society is the

elimination of profit the idea begin to provide goods and service to members at

cost. Thus, poor farmers may form co-operative credit societies to get cheap

credit facilities and protect themselves against the exploitation of the

moneylenders. Similarly, small producers may form co-operative marketing

societies to sell their products at favorable prices and protect themselves

against the exploitation to the traders. Consumers belonging to the middle and

low income group may form consumer's co-operative societies so as to get

essential commodities at fair price and protect themselves against the

exploitation by the retailers.

The idea behind a co-operative society is that an isolated and powerless

man, in association with others, can lift himself as well as others out of



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weakness into strength, " Co-operative (i.e., work together) for working out

(i.e., Solving) your economic problems is the theory of co-operation.

MEANING OF CO-OPERATIVE SOCIETY:

The word "co-operative' is derived from the Latin word co-operative.

Co means together and operari means to work. In other words, co-operation

means to work together to achieve common purpose.

Co-operative societies are a type of business organizations on which

individuals generally belonging to the homogeneous group voluntarily

associate together on the basis of equality for the furtherance of their common

economic interest. In other words a co-operative society is a form of business

origination, in which economically weak persons voluntarily associate

together as human begins, on the basis of equality of opportunity and control,

equity of distribution of profits and mutuality (i.e., self-help and mutual help)

for the promotion of their common economic interests.

DEFINITION OF CO-OPERATIVE SOCIETY:

A "Co-operative society" means, a co-operative society registered

under the co-operative societies Act, 1912 or under any law for the time begin

in force in any state for the registration of co-operative societies.

Co-operation has been defined in different ways by different

authorities.



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Some of the important definitions are as follows:

(1). H. Calvert, defines co-operations as " a from of organization where is

persons voluntarily associate together as human begins on the basis of equality

for the promotion of the economic interest of themselves". According to

Calvert, a Co-operative society is a voluntary association.

(2). Dr. C.R.Fay, defines a co-operative society as "an association for the

purpose of joint trading originating among the weak and conducted always in

an unselfish spirit on such terms that all who are prepared to assume the duties

of membership may share in its rewards in proportion to the degree in which

they make use of their associations"

(3). Mr. Talmaki, defines a co-operative society as "an association of the

weak who gather together for a common economic need and try to if

themselves and others out of weakness into strength through Business

organizations, conducted for the common benefit of all who joint it".

(4). According to Dr. K.N.Katju " Co-operation is self help as well as mutual

help. It is joint association or Enterprise of those who are not financially

strong and are enable stand on their own legs, and therefore, come together not

with a view to get profits but overcome disability arising out of want of

adequate financial resources and thus better their economic conditions",

(5). Professor. Lamert observes " Co-operation as an enterprise formed and

directed an association of users, applying within itself the rules of Democracy



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and directly intended to server both its own members and community as

whole".

Characteristics or principles of co-operative society:

The Main characteristics or principles of a co-operative society are as

follows:-

1). Body Corporate:

The Registration of a society under the co-operative societies Act

renders it a body corporate. It becomes entitles to enjoy certain privileges as

are enjoyed by a company on its incorporation. Among others , mention may

be made of the following privileges:

1. The society becomes a body corporate.

2. The society enjoys perpetual succession.

3. The society has its own common seal.

4. The society can hold property in its name.

5. The society can enter into contracts with other persons.

6. The society can institute and defined suits on other legal proceedings.

7. The society can do all others thongs necessary to carry on its activities

with reference to the object for which the society has been formed.



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2) Voluntary Association:

A Co-operative society is essentially a voluntary association of

individuals. A persons is free to join a co-operative society as its member.

Similarly, he is free to leave the society any time by giving due notice to the

society. Thus, there is no compulsion either to become a member or to

continue as a member.

3) Association persons:

A co-operative society is an association of persons, and not of capital.

Individuals join a co-operative society as human begins, and not as capitalists.

4) Unrestricted Membership.

There is no limitation on the membership of a co-operative society.

The number of members of a co-operative society can be increased to an

unlimited extent.

5) Equal Voting Rights:

In a Co-operative society, each member has only one vote whatever

may be the number of shares held by him. "One member, one vote", and

not :One share one vote" is the basic principle of a co-operative society. This

principle enables the members to have equal voice in the management of the

society.



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6) Democratic Management:

Democratic management is the fundamental principle of a co-operative

society. As a co-operative operates on a local scale, generally , all the

members attend the meetings. Further at the meetings each member has only

one vote. Again at he meetings only those policies, which promote common

interests are laid down. Thus, the day-to day affairs of a co-operative society

are conducted on the democratic principle of "each for all, and all for each".

7) Service Motive:

A Co-operative Society is formed primarily for the purpose of

rendering maximum services to its members, and not for earning maximum

profits. : Service, not profit" is the main aim of a co-operative society.

8) Equity of Distribution of profits:

The principle of equity is adopted in the distribution of the profits of a

co-operative society. The entire profits of co-operative society are not

distributed as dividend among the members. A low rate of dividend, generally

6 % is allowed on the capital contribution by the members. A portion of the

profits is transferred to general reserve. A small portion of the profits is used

for the general welfare of the locality in which the society is working. The

rest of the profits of the society are distributed among the members in

proportion to their business with the society.



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9) Liability:

The liability of the members of a co-operative society may be limited or

unlimited. The liability of the members is limited in the case of a limited co-

operative society, and unlimited in the case of an unlimited co-operative

society.

Formation of a co-operative society:

In India, the formation and registration of co-operative societies if

governed by the provisions of the INDIAN CO-OPERATIVE SOCIETIES

ACT OF 1912 or The State Co-operative society Act in force in various states.

Formation of a co-operative society, there should be at least ten

members who are bounded together by a common bond (i.e., belonging to the

same locality, class or occupation and having a common economic need).

These members (called promoters) should submit an application for

registration to the Registrar of co-operative societies of the state in which the

society's office is to be located.

The application for registration should state:

The proposed name of the society;

The aims and objects of the proposed society;

Its area of operations;

Particular of share capital proposed to be raised by issue of shares and

The nature of member's liability.



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Further the application for registration should be accompanied by two

copies of the proposed bye-laws of the society. The bye-laws contain the rules

for the internal; working of the proposed society. The bye-laws are generally

prepared in accordance with the model bye-laws available with the Registrar

concerned.

On receipt of the application for registration and the bye-laws, the

registrar of co-operative societies will examine them and if he is satisfied, will

register the society and will issue the certificate of registration. On

registration the society comes into existence and becomes a body corporate

with a distinct legal entity, perpetual succession and a common seal.

After its registration, the co-operative society admits new members and

proceeds to conduct the business for which it has been formed.

Co-operative movement in India

In recent years, the co-operative movement has received a great

impetus. In India, the idea of co-operative took concrete shape for the first

time in 1904. With the passing of the co-operative credit societies Act which

was a measures to combat rural indebtedness and provide for credit societies.

Government extended various kinds of help to promote the objectives of these

societies.



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The essential features of this Act were as follows:

A society could be formed by any ten persons living in the same village or

town.

The co-operative societies were classified as rural and urban

The rural societies were bonded to have unlimited liability, in case of urban

societies the question was left to their option.

The Act provides only for the formation of credit .

The area of operation with in which societies could operate was callously

restricted.

The society could advance loans to members on ly on personal securities.

The interest of a member in the share capital of the society was strictly

limited. No member could hold shares for more than Rs 1000.

The account of every society work to be audited by the register .

Societies were excepted from payment of income tax , stamp duties and

registration fees.

The societies work given a leangle personality and were authorized to rise

found and carry on they business in a co operative society.

In 1912, Statutory provision was made for non credit forms of co-

operation in such activities has production, purchase, insurance, sale housing,

ext.. and the creation of union of primary co- operative societies for mutual



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control and audit of central and provincial banks to help the primary societies

with credit

In order to review the progress and lay down the future pattern of

growth for co-operatives, the Macaroon committee was appointed in 1914. In

the light of the recommendation of this committee, co operative societies

were recognized and provisions and was made for the association of non

official institutions and individuals with this movement. Under the Act of

1919, co- operation become a provincial transferred subject. However, the

Government of India continued to take interest in the growth of the movement

and established the Agricultural Credit Department in the Reserve Bank of

India, in 1935 . IN 1945 the co-operative planning committee was appointed

which recommended that primary society should be converted into multi-

purpose societies and that within a period of ten years 50% of the villages and

30% of the rural population should be brought within the ambit of the

reorganized societies.

The committee of direction appointed in 1951, by the Reserve Bank of

India surveyed the rural credit structure and its report was published in

December 1954. The committee recommended an "Integrated scheme of Rural

Credit".



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CHAPTER-3

INTRODUCTION TO AGRICULTURAL FINANCE

Introduction

Types of Agricultural Financial

Sources of Rural Credits

Institutional Sources of Finance



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INTRODUCTION TO AGRICULTURAL FINANCE

Introduction:

In India most of the formers are poor and they will not be in a position

to manage the funds, which requires for the agriculture. So the agriculture lists

are borrowing funds in the form of credit from various sources.

Agricultural finance means extending financial requires support for the

agriculture. It means going financial assistance to the agriculture for

discharging of Agriculture Activities.

Types of Agricultural Loan

The financial requirements of Indian farmers can be classified into 3

types Viz..



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1. Short term credit: - Short-term credit, for a period of 12 to 15 months

is needed for agricultural purposes, such as the purchase of seeds and

fertilizers and payment of Wage of Farm workers, and for domestic expenses.

2. Medium-Term credit: - Medium-Term credit, for a period of 15 months to

5 years is needed for the purpose of buying cattle and Agricultural

implements, construction of bunds and embankments on agricultural lands and

for making other minor improvements on lands.

3. Long-term credit: Long-term credit for a period of 5 to 20 years is need

for making permanent improvements on lands such as digging of wells,

installation of pump sets, purchase of farm machines, acquisition of additional

lands and also for the payment of old debts.

Sources of rural credits:

There are various sources of rural credit.

There are various sources of rural credit. They can be broadly classified

into broad categories viz.

1) Non-Institutional sources

2) Institutional sources.

Non-Institutional:

Non-Institutional sources of finance refer to individuals like money

lenders, traders and commission agents, etc, who provide agricultural finance.



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Non-institutional sources were very important in the past. Today, their

importance has declined, and they account for just 20% of rural finance.

The Important non-intuitional sources of finance are:

1. Money-lenders:

The money-lenders relay on important role in rural finance. They are

called the CUSTODIANS OF THE PERSON TO HONOR as they are the

sole supporters of the peasants in times of famine and scarcity, at the births of

sons and at the marriages of daughter, The importance of money lenders in

rural finance is mainly due to their easy accessibility, easy lending procedure,

their willing new to lend for any purpose against any security and their

estimate knowledge of the rural people.

2. Traders and commission agents:

The traders and commissioner agents finance about 2% of the financial

requirements of the formers. They advance loans to the formers against the

security of agricultural crops. They charge very high rates of interest.

3. Landlords:

Land Lards provide finance to their tenants. They change very high

rates of interest. The volume of finance provided by turn is negligible.

Institutional sources of finance:

Institutional resources of finance refer to institutions, such as the

Kasaba bank, commercial Banks etc. Which finance the requirement of



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farmers? Institutional sources meet about 80% of the credit needs of rural

areas. The important institutional resources of finance are.

1. Rural Credit Societies:

Rural Credit societies at Agricultural Credit societies are the cheapest

and best source of rural finance. Since the advent of planning. They have been

playing a leading role in agricultural finance. In 1993-94. They have provided

finance to the court of Rs. 6,460 Corers. They finance about 35% of the credit

needs of the agriculturists. They provide short-term and medium term finance.

Loans are, generally, given for productive at agricultural purposes, such as the

purchase of seeds and fertilizers and agricultural implements and for the

payment of wages. Sometimes, loans are also given for domestic purposes.

Loans are ordinarily given against the personal security of the borrower

supported by the personal security of another member. Loans are also given

against mortgage of Loans. The rate of interest charged on the loans is very

low, usually, about 6% per annum

2. Land Development Bankers

Land development banks grant loans to formers for long periods

varying from 15 years to 25 years. Loans are repayable in easy installments.

Loans are given at moderate rates of interest. Loans are given against the

mortgage or security of Lands. Loans are given for development purposes,

such as purchases of machinery, legging of wells, installation of pump sets and



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making of other permanent improvements and making of other permanent

improvements on lands and also for the resumption

In India, the progress of land development banks was slow before the

Second World War. But it picked up some momentum after 1947. Since then,

a number of land development banks were started in several states .

3. Government (TACCAVI Loans):

The Short term and Long term loans given by the state Governments to

agriculturists are known as TACCAVI Loans.

The Long term loans are granted under the Land improvement on

Lands, such as the reclamation of lands, construction and repairs of well,

purchase of Agricultural implements, etc.

The Short term loans are granted under Agriculturists Loans Act 1884

for purchase of seeds, fertilizers and for the payment of wages. These loans

were formerly granted through the agency of community development and the

agricultural securities. Now they are routed through the kasaba credit societies

and land development banks.

4. Regional Rural Banks or Rural Banks:

Regional rural are banks engaged in the granting of direct loans and

advance to small and marginal formers, rural artisans and landless laborers for

productive purposes at least rates of interest.



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5. Commercial Bankers:

In the part, commercial Banks played on significant role in agricultural

finance. They met just 5.5% of the credit requirements of the agriculturists.

Now ever, after the nationalization of the major commercial banks in the

country, the commercial banks have been participating in agricultural finance

to a greater extent. They have opened thousands of branches in rural areas, and

through their rural branches they have financed a considerable portion of the

credit needs of the farmers. Today, they finance about 39% of the total credit

requirement of the rural people.

6. State Bank of India:

Since its inception in 1955, the state Bank of India has been playing on

actress role in the field of rural credit at agricultural finance. It has bas been

helping the farmers and financing agriculture in many ways.

7. Research Bank of India:

The Research Bank was not expected to provide financial assistance to

agriculture directly. It should give financial assistance to agriculture only

indirectly i.e. through the state kasaba banks, central and mortgage banks, the

State Governments and the agricultural Reference corporation.

8. Agricultural Re finance and Development casaba bank

The Agricultural Refinance and Development kasaba Refinance Set

up on 1st July, 1963, under the Agricultural Refinance Casaba Act of 1963.



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CHAPTER - 4

MANAGEMENT AND WORKING OF S.K.V.S.S.B

MANAGEMENT

Introduction

Election procedure

The structure of management of S.K.V.S.S.B.



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MANAGEMENT AND WORKING OF KASABA SOCIETY

Introduction

The management of a co-operative society is entrusted to a committee

known as managing committee'. The members of the managing committee are

elected directly by the members of the co- operative society at annual meeting.

Generally, a co- operative society has the following office bearers

President

Vice precedent

Secretary

Treasurer.

The Managing committee determines the detailed programs and

procedures of the society. It is accountable to the general body members.



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The secretary is responsible for the conduct of the day to day affairs of

the society in accordance with the decisions of the managing committee . He is

accountable to the managing committee

MANAGEMENT OF S.K.V.S.S.B.

Democracy is the keynote of the management S.K.V.S S.B it is based

on the principle of 'one number, one vote'. The management of this society is

entrusted to two bodies , viz.

1. A general committee : it consists of all the members of the society.

2. A managing committee: it consists of 15 directors chosen among the

members of the general committee at its general meeting.

The administration of the society is vested in the hands of the

committee, which has been elected in the general body meeting and general

body is ultimate authority for all matters of the society.

Executive committee of S.K.V.S.S.B consists of a president, vice-

precedent, and the 13 directors. The general committee elects the members of

the managing committee, appoints an honorary secretary and adopts the annual

balance sheet submitted by the managing committee subject to orders and

reports of the registrar and auditor.

Thus the management of S K.V.S.S.B is carried on by the board

directors elected by the shareholders on the basis of 'one member one vote'.



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ELECTION PROCEDURE OF S.K.V.S.S.B

Election is an indication of democracy. Democracy is a symptom of

give and take policy. In this co- operative scenario, 'give' indicates co-

operation through valuable services for the society growth and development.

This body work can be seen in S.K.V.S.S.B electoral process. The election

procedure of S,KV,S,S,B is according to Karnataka state co- operative

societies Act (sec-14) and comprises the following clauses:

1.Elections are held according to Karnataka state co-operative societies

(Amended)(Sec-14)(sec 134).

2.According to byelaw No 31 of the society, total board of directors of

restricted ro 15, and one is reserved for female members.

3.Default members are not eligible to contest and cast their votes according to

section 20 of the Act.

4.The Secretary of the society elected nominated applications.

5.Elected/ nominated application must be signed by the ten eligible members

[sec 14(8)]

6.Nomination applications are rejected when they are issued after the last or

without the consent of the candidate [sec14(9)].



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7.Every elected or nominated application must have deposit of Rs.10 and get

the voucher or demand draft from the society [For male members the

deposit amount is Rs. 50] Sec 14 (10)].

8. Deposit amount are for forfeited in case the candidate failure to get 1/10 th

of the total valid votes [sec.14(11) and (12).]

9.The candidate must be present, both nominated and constant at the time of

withdrawal of nomination [sec14(17)]

10. Symbols of election are printed on the notice board. In the application

form, the candidate can write for three symbols, ultimately, the chief

election officer has full power to assign symbols.

11. Contestant must present at the time of scrutinizing the application.

12. According to 13-A the voting candidate must have the identity card, which

has been issued by the secretary or his sub ordinates to cast the votes and

sign the voting register.

13. The person for candidature should not posses disqualification's according

to 29c of co- operative socialites Act.

In addition to the electoral clauses, a separate timetable is given for

detail information about election time, venue ect., After the election,

among the directors; one is elected as president and vice president.

Usually, the president can preside over the meetings.



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The structure of Management of S.K.V.S.S.B can be shown in a chart as

follows:


SHAREHOLDE

PRESIDENT

VICE

DIRECTORS

SECRETARY

ACCOUNTANT

CLERKS CUM

CASHIERS

SERVANTS


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Office Staff

SHAREHOLDERS

Shareholders are the real owners of the co- operative society, they

purchase shares by paying its face value as their shares in the total capital of

the society.

They exercise their rights through casting their votes; thereby they look

after the welfare of the society with the help of directors, who have been

elected with the votes of shareholders.



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Usually, share holders believe in the directors and they see overall

performance of the society at the annual general body meeting in which the

final accounts are presented by the secretary.

In case of shortage of capital or surplus of capital can read jested by

refunding or raising vice versa as the case may be with the help of directors.

Shareholders are not only the owners, but also the custodians of the

society. With the help of directors and secretary, they give their valuable

suggestions in the annual general body meetings.

As we know that, capital is the main criteria to build up the financial

strength of this society. There fore, on the basis of quantum of capital

shareholders are to be classified as;

Qualification for membership:

As per byelaw of the society, the members must be fairness and come

under Shimoga District jurisdiction and must attained 18 years old. The board

of directors have the full power to accept or reject the membership

applications.

Disqualification for Membership:-

The membership may be cancelled for the three following reasons-

1) Not to take more time than restricted time.

2) Loan amount cannot be used for other than purpose.



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3.Lunatic, insolvent, misconduct and other dis-qualifications.

Liability of Membership:

The liability of the members of the S.K.V.S.S.B is limited to the extent

of the full of the shares held by them.

President

President is chief executive body of the society: as he is to preside over

all the meetings and functions of the society.

Shareholder are given voting power to control and look after day to

day's business of the society. But, in practical, it is not possible to all of them

to come out and see the affairs of the society. For that, as per Society elected

procedure they elect directors and among the directors, one is elected as the

president of the society. He can presume his power as president for a year.

Vice President :-

He is basically a director. In the absence of president, he extends his co-

operation and suggestion in case of decision making process.

Vice precedent is elected by the directors. He cans executive officer of the

society. Thus, he has the power to frame the rules regarding working and

management of the society.



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DIRECTORS:

Society represents the collective responsibility of its members and its

prosperity is being carried by them, (Shareholders)

I t is not possible for all shareholders in the day to day. Management

0f the society, as they are large in number and are scattered over Shimoga

District. So, the shareholders of the society elect among themselves some

members good in society management as their representatives to manage the

day to day affairs of the society. The members or representatives elected by

the shareholders to manage or direct the day to day affairs of the society. The

members or representatives elected by the shareholders to manage or direct the

Day- to day affairs of the society are known as DIRECTORS. As per byelaw

No. 31 of the society, total board of directors are restricted to 9 and one is

reserved for female member.

POWERS OF DIRECTORS:

The board of directors of the society enjoys all such powers as are

enjoyed by the society itself. Thus, the board is entitled to exercise al such

powers and do al such acts and things as the society is authorized to exercise

and do. This means that, the powers of board of directors are co - extensive

with those of the society, i.e, as great as those of the society.

There are however, the following important powers of the directors:



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1. Directors can set a limit of loan.

2. Interest rate is to be fixed at the board meeting.

3. Power to disqualify the application of the new members.

4. Disqualification of membership of default members (i.e, voting

power).

5. Power to call a special meeting of members.

6. Power to invest the funds of the society.

7. Power to verify the accounts of the society.

8. Power to appoint a secretary and internal auditor.

9. Power to get loans and meeting allowances.

There are however, the following important limitations upon the powers

of directors:

1. They must exercise their powers subject to the provisions contained in

the co operative societies Act 1912.

2. The board of directors cannot exercise those powers, which are

required to be exercised by the members in the general body meeting.

3. They cannot sale or borrow outside funds without the knowledge of

society members.

MEETING OF S.K.V.S.S.B DIRECTORS

In case of every society, the meeting of its directors must be held at

once every month and at least 12 such meeting a must be held in every year. In



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case of important decisions or policy matters interim meeting may be called .

It is important to note here there is not provision as to the interim meetings

are concerned.

According to the society, the notice of every board must be given

before one work, in writing to every director at the time being in Shimoga.

And to every other director at gives notice to any director at his usual address

for communication. It may be noted that, the failure to give notice to any

director renders the meeting invalid. The quorum for the board meeting (i.e,

the minimum number of directors required for meeting) is 1/3 of its total

strength or 5 directors whichever is higher.

The proceedings of the board are to be conducted in the manner

provided for in the clause of Karnataka State Co- operative Societies Act. The

Act provides that, a majority shall decide the questions at the meeting The

maters decided in the meeting are put in the form of resolution may also be

passed by circulation. The resolutions of the board are binding on all the

directors and all of them are bound to help others in carrying out the decisions

taken by the board.

The resolution passed at the meeting are entered in the minute book of

the society, which is to be signed by the president of the succeeding meeting.

DUTIES OF DIRECTORS:



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We know that, the directors of a society occupy an important position

in society's management and enjoy immense power. However, they should

exercise their power for the protection of the interest of the members. The

byelaw of the society therefore requires them to perform duties in order to

prevent the abuse of power. The duties of directors may be given as follows:

1.Duty to call annual every year.

2 Duty to maintain secret of the society

3.Duty to approve balance sheet and profit and loss account before they

are submitted to the auditors for their report.

4. Duty to attend board meetings.

5. Duty to send to the registrar of co- operative society copies of special

resolutions.

6. Duty to keep the register of members.

7. Duty to see that proper accounts are kept, profit and loss account and

balance sheet are prepared and are placed at every annual general

meeting along with the auditor's report and directors report.

8. Duty to perform the functions of the society personally and not

delegate them to other persons.

9. Duty to disclose the interest of the society.

SECRETARY:



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Secretary is an important officer of the society. However , he is only a

subordinate officer and has managerial functions. He is being appointed by

the board has no original authority. He is required to perform the duties

assigned to him under the co- operative societies Act, and by the board of

directors. He is responsible for the day to day working of the society,

especially his duties include.

1. To keep and maintain various of the society (such as Register of

members, register of directors etc)

2. To carryout the orders of board of directors.

3. To file with the register of co- operative society, necessary document

and returns (i.e. annual return, annual account etc.)

4. To submit and verify miscellaneous statements, forms and returns.

5. He is required to advise and guide the directors on all important legal

business matters affecting the working of the society.

6. He should draft the director's report to be presented at the annual

general meeting.

7. He should arrange for the payment of dividends to the shareholders.

8. To perform all statutory requirements on behalf of directors.

9. To attend all meeting of board directors and shareholders and record the

proceedings of all such meetings.

10.To organize and control the staff of the society and to supervise their

work.



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11.To look after all the internal or office management of society.

We know that, a secretary is appointed to perform all administrative

functions, in which an accountant, internal auditor, cahier-clerks, servants

support him in carrying out society's day to days activities.

WORKING OF S.K.V.S.S.B.

S.K.V.S.S.B day to day work is carried on with the help of eminent

staff members. They are much essential to carryout its financial transactions.

These peoples are treated as work force tot he financial activities.

The society works with total staff members, viz,.

Secretary

Accountant

Internal Auditor

Cashier

Two clerks

Two servants

The society has regular meetings to sort out the problems faced by them

in caring out their work; they're by achieving effective co ordination and

functioning among the staff members.

OBJECTIVES OF THE SOCIETY:

The main objectives of the society are:



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To extend credit facilities or financial assistance to the members at

reasonable rate of interest.

To provide loans to increase agricultural production, animal husbandry,

poultry and agricultural equipments.

To provide loans to improve Irrigation facilities to dry lands.

To provide co- operative education and publicity of so

To border or extend facilities of co-operative society to its members.

To encourage the habit of saving among the members.

To educate small and middle class people to understand co- operative

principles.

Source of funds:

The following are the important of source of income of S.K.V.S.S.B.

a. Share capital:

Share capital is a capital, which has collected from its members for the

primary primary membership.

b) Deposits:

It is revenue deposited by the members who have saving habits in

accordance with their earnings.

FUNCTIONS PERFORMED BY THE S.K.V.S.S.B.

The SKVSSB performs various functions they are as follows:

1.Receiving of deposits:



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The society records different types of deposits from the customers. The

society has introduced several schemes to attract deposits, they are:

Saving deposits

Kasaba Nitya Nidhi deposits

Kasaba Nigadi deposit.

Kalpavruksjha deposit

Bhavishyanidi deposit

Shivanagadhu deposit

Bhadratha deposit.

2. Granting of loans and advances:

The society grants and advances to its members at the reasonavble rate of

interest. The society provides followings types of loans ,viz.,

Shivanagadhu paper loan

Kasaba Nigadhi deposi loan

Kasaba NIthya Nidhi loan

Gold ornament loan

Vehicle loan

NSC loan

Staff future fund loan

BENEFITS SCHEMES TO MEMBERS:



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1. Members welfare fund:

In the year 1989 this scheme was introduced. Under this scheme, the

membership fees of Rs 500/- on the death of the members it provides Rs 10,00

/- as compensation.

2. Endowment Education Fund:

This scheme is introduced in the 1999. Under this scheme it distributes Rs,

54,710/- to the students of its members.

Recently it is also encouraging handicapped students with the help of this fund

3. Safety Locker Facility:

Safety locker facilities provided at the society with a cheaper rate to

protect its customers from the uncertainties like, robbery, theft, fire ect.

With this lookers facility an additional deposit is provided to attract

customers moderately.



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CHAPTER- 5

HISTORY AND EVALUTION OF K.V.S.S. BANK

INTRODUCTION

THE FIRST DIRECTORS OF BANK

PROFILE OF K.V.S.S BANK

BALANCE SHEET OF K.V.S.S. BANK

GROWTH AND DEVELOPMENT



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HISTORY AND EVALUTION OF K.V.S.S. BANK

Introduction:

The DCC Bank K.V.S.S. bank utopia lit the bank to be opened

operating on 31/12/1943 in utopia a taluk Recovery or Repayment of loans is

important factor, which is directly effecting the development of Bank. The

loans which is not performing assets to the bank. The non-recovery of loans

will effects the relation of funds, Therefore Bank must take bank must take

keen interest in effecting the maximum recovery towards better performance

of the bank taking timely and effectively steps in this regards.

State Government has enacted law enabling speedy recovery of over

dues recover of dues of banks. The sold low many at May not for the fuelling

of a suit in a credit about generally such laws provide for recovery through

revenue officials at through separate farmers. The states may restrict the

applicability of such laws only to certain types of loans.

BENEFITS:

A subscriber to the fund of he K.V.S.S. bank

1. A simple lone to the extent of money paid by him with any securities

2. A loan of a higher amount on the mortgage of jewels etc these loans will be

allowed at



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THE FIRST DIRECTORS OF BANK

1. S. HALAPPA

(president)

2. G.S. GEEDDAPPA

(secreatary)

3. D.R. GURUSHAMHA

(treasure)

4. K. NAGARAJA

(manager)

5. E. RAMAPPA

(land holder)

6. MAYAPPA

(land holder)

SHARE HOLDING DCC BANKIN K.V.S.S. BANK LIMITED

A community wise classification 1908

Community no of member amount of share holders

1.Sarawathi 850 33.723

2. Shivli 299 16.704

3. Devenga 102 12.290

4. Goldsmit 26 02.348

5. Jain 51 03.699



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PROFILE OF K.V.S.S BANK:

Start on 31/12/1944 at utopia of Karnataka foundation as

K.V.S.S.BANK in 1944 by late Halappa philopher this small seed

blossomed in to a limited company as K.V.S.S. BANK limited in 1944 and

become a kasaba bank in 1969 after bank shikaripua Branch is a Banking

Company registerd under the regional rural bank Act 1944, established in the

Year of 1944, it has its administrative office in shikaripura kasaba Bank

shikaripura branch performs banking business on rural lending.

99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08

Capital 3.41 4.07 5.48 7.13 8.53 8.74 10.16 10.90 11.45

Surplus 2.91 3.02 3.02 3.64 4.09 5.80 8.67 10.42 15.94

Deposits 5.21 11.06 10.22 13.56 10.68 14.82 20.26 22.85 38.50

Advances 20.62 26.80 39.22 51.22 77.35 95.24 103.4 118.1 130.2

Investmen

t

26.80 39.22 51.72 77.35 95.24 103.4 118.1 130.2 123.8

Total

income

7.85 8.21 10.65 13.38 20.80 24.43 20.75 27.50 15.59

Interest

expended

7.44 7.92 10.08 12.76 20.29 24.09 20.44 27.48 15.34

Operating

expended

5.09 6.81 8.57 11.40 18.44 22.46 18.63 25.08 13.07

Profit 2.76 1.40 2.14 1.98 7.36 1.97 2.09 2.24 2.52

Total 7.85 8.25 10.65 13.38 20.82 24.43 20.72 27.50 15.50



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BALANCE SHEET OF K.V.S.S. BANK

Balance sheet as on 31st mach 2008

Particulars Sl no As on 31/3/2007 As on 31/3/2008

Capital 1 10.16.000-00 11.49.700-00

Surplus 2 7.60.600-00 17.45.763-00

Deposits 3 1.30.11.988-00 14.77.9168-00

Borrowing 4 11.70.450-00 48.82.500-00

Liabilities 5 7.72.644-00 21.71.739-00

Total 16.73.1.682-00 24.72.8.870-00

Asses of bank 6 16.05130-00 37.75.842-00

Balance with money 7 5650-00 5650-00

Fixed assets 8 10.16.000-00 11.49.700-00

Other assets 9 94.5.330-00 10.56.850-00

Total 3.60.4.814-00 6.04.2.846-00

Net profit 10 24.1.756-00 23.9.259-00



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GROWTH AND DEVELOPMENT

As we know that branch was opened in the year of 1985. In the fast

year ended March 1986 the branch had not made any profit even the branch

had deposits of RS. 4 Lakhs and advances of Rs. 6 Lakhs.

Only after the year ended March 1989 the branch had made profits of

Rs. 69.000 for the first time. Then it reduces to R. 60000 in the year of March

1990, with the deposits of Rs. 25 lakhs and advances of Rs. 35 Lakhs.

The following information reveals the growth and development of the

branch

Year Deposits Advances Profits

March 1989 4 6 -

1990 6 11 -

1991 16 21 -

1992 21 34 1.68

1993 25 36 1.52

1994 27 37 2

1995 29 40 2.501996 32 42 3

1997 34 46 2.72

1998 44 48 2.45

1999 63 43.22 2.52

2000 82.76 44.31 2.70

2001 71.06 33.27 2.45

2002 90.95 55.91 4.28

2003 96.87 58.44 4.11

2004 156.27 68.23 3.23

2005 168.36 72.42

2006 172.53 81.632007 174.72 83.12

2008 190.01 86.72



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BRANCH PERFORMANCE IN LAST 2 YEAR

2006-07

Particulars Branch Bank

Average Deposits 73.75 4432.22

Aggregate deposits

Demand deposits

Term Deposits

95.69

28.17

67.52

5533.60

2054.25

3479.35

Credit Disbursement

Priority Sector

Non Priority Sector

48.22

39.12

9.10

2010.66

1175.93

634.73

Advance O/S position 88.38 4161.49

Recovery percentage (June 66.70 76.08

LPD position

No. of a/c Amount

213

16.31

1725

168.27

N.PA Position 23.01 610.77

Profits 4.21 235.70

2007-08

Particulars Branch Bank



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Average Deposits 112.66 5488.84

Aggregate deposits

Demand deposits

Term deposits

146.27

33.65

112.62

6892.72

2573.20

4319.52Credit Disbursement

Priority Sector

Non priority sector

67.23

53.51

13.72

3006.65

2408.18

598.47

Advance O/s position 110.9 5077.85

Recovery percentage June 72.31 77.80

L.P.D position

No. of a/c Amount

92

13.85

1395

201.24

N.P.A position 23.57 645.30

Profits 3.13 252.02



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TOTAL POSITION OF THE BRANCH BANK

2007 2008

B.I. CODE 0913 0913

REGION Mangalore MangaloreZONE Udupi Udupi

TOTAL DEPOSITS 38678279 37660741

Total advances B 4597154 60062334

Net Profit 561918 127193

Net Loss - -

No. of Deposit A/c S 3708 4137

No. of Borrower A/C s 1091 1273



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CHAPTER 6

DEPOSIT SCHEMES AND CREDIT FACILITIES IN S.K.V.S.S.B.

Deposit schemes

Introduction

Types of deposits



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DEPOSIT SCHEMS AND CREDIT FACILITIES IN S.K.V.S.S.B

Deposit scheme

Deposit constitute the main source of S.K.V.S.S.B . The society

receives deposits from the customers on various accounts . They are as

follows:

Savings A/C

Kasaba nitya nidhi deposit

shi nagadu deposit

Kalapavruksha deposit

Bhavishyanidhi deposit

Bhadhrata deposit.

1. Saving A/C:

This account is generally opened by all members of the society. In this

account, the depositor can deposit money at any time. Minimum amount to

open S.B.A/c is Rs 250 /- and at present interest offered by the society on such

deposits is 5%.

2.Kasaba Nitya Nidhi Deposit:

The business class, petty shop owners ect., generally opens this

account, in this a/c the depositor can with draw money at any time. There is



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no interest offered by the society on this account. Minimum amount to open a

Kasaba NItya NIdhi A/c is Rs 250/-

3.Kasaba NIghadi A/c

The society accepts kasaba Nighadi A//c deposits from its members .

The maximum period of this deposit is 3 years. The rate of interest offered by

the society various from 8% to 9% i.e, up to one year. The rate of interest is

9% P.a and above one years the rate of interest is 8% p.a.

4.Kalpavruksha Deposit:

It is also known as cumulative deposit. The maximum period pf this

deposit is 3 years. The rate of interest offered by the society various from 8%

to 9% p.a i.e,, deposit for up to one year, the rate of interest is 9% p.a. and

deposit for above one year, the rate of interest is 8% p.a. Quarterly accrued

interest on such deposit will be added to the principle amount

5 Bhavishyanidhi Deposit:

This deposit is also called as cumulative deposit. The maximum period

of this deposit is 3 years. The rate of interest offered by the society varies from

8% p.a to 9% p.a.i.e,; deposit for up to one year , the rate of interest is 9% p.a.

and deposit for above one year. The rate of interest is 8% p.a.

CREDIT FACILITATES IN S.K.V.S.S.B

The S.K.V.S.S.B provides loans and advances to its member. The

society provides credit facilities both to regular members and nominal



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members. The society deploys its funds by the great of loans and advances to

its members depend upon their needs.

The loan is given according to the purpose for which the loan is

required and the resources where from the borrower is expected to repay have

also an important bearing not only on society liquidity, by its desirability too.

If the loan is required for non productivity and speculative purpose, the society

should think twice before entertaining the proposition.

TYPES OF CREDIT PROVIDED BY THE SOCIETY:

The various types of credit facilities provided by this society are given

below:-

Kisan Credit Crop loan

Kalpavruksha Deposit loan

Shiv nagadi Deposit loan

Vehicle loan

Gold Ornament loan

Business deposit loan

Kasaba Nithy Nidhi loan]

Wage based loan

Animal Husbanding loan

Cloth loan



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1.Kissan credit loan :-

This loan is provided by the society to its members on their own

responsibilities without interest for a start period. It provided self loan to its

members without interest up to 5000 with 15 % rate of interest. This loan is

repayable in 100 installments.

2.Kalpavruksha deposit loan

Kalpavruksha deposit is a loan provided by the society to its members

on the security of other members. It provides loan amounting into Rs, 20,000/-

for a member. For member family which does not have permanent property. It

provides loan amount at Rs. 30,000/- and for the members family which have

permanent property it provides loan up to Rs, 80,0000 the rate of interest in

both the cases will be minimum 16% and maximum 18%. The member can

repay this loan in 100 installments.

3.Shiv nagadu deposit loan:

This loan is given to small farmers for the improvement their loans. The

maximum amount of loan given is Rs. 5000/- and maximum limit Rs

1,00,000/- . The repayment period is limited to 12 monthly installments. The

interest charged is 17%.

4. Gold Loans:

Gold loan is a loan; Gold loan is a loan provided on the security of

gold armaments. The society provided the loan against the gold armaments for



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a maximum amount of Rs ,1,00,0000. The loan is given on the basis of 60% of

the appraiser value of the gold. The rate of interest charged is 17%.

5. Recovering deposit loan

The society provides loan to its members as the security of deposits

made by them. Thus loan is given on the basis of amount deposited by the

members. The loan is given tot he extent of 90% of the deposit amount. The

rate of interest charged as loan is one rupee more then the interest given for

that fixed deposit.

6 Kasaba Nithya Nidhi

Kasaba Nithya Nidhi loan is a loan given on the security of building

owned by its members. The minimum loan amount is Rs 40,000/- and

maximum up to Rs. 150000/-. The rate of interest charged is 17%. It also

given subsidy at 3% a rate of interest. On prompt payment of loan.

7. Wage based loan:

Wage based loan is a loan provided to its members on the security of

member's house property. The society provides maximum amount of house

loan up to 5 lakhs. This loan is also provided to purchase a new house. The

rate of interest charged by the society is 17%. The society gives subsidy at 3%

in rate of interest for prompt repayment of loan.

8. Animal husbandry loan:

Provides for all members of the society having own agriculture land.

9. National saving Certificate Loan:



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The society provides a loan to its members on the security of national

saving certificate. The loan is given on 70% of face value of the national

saving certificate. The rate of interest charges by the society is 17%.

10. Vehicle Loan:

Vehicle loan is a medium and long term loan. Vehicle loan is provided

on the security of two wheeler and three wheeler and four wheelers vehicles.

The society provides the vehicle loan 75% of the invoice price of the

vehicle. It is repayable in 60 monthly installment w3ith 17% rate of interest

for 4 wheeler and 40 monthly installments with 17% rate of interest for 3

wheelers.

Problems Of Agricultural Problems An Recoueries

Agricultural occupies a significant place in Indian economy majority of

the people depend on it for their lively hood its contribution the national

income is very significant but undertunately agricultural economy of Indian

present aperture of prosperity



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CHAPTER - 7

SURVEY ANALYSIS AND FINDINGS



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CHAPTER - 7

SURVEY ANALYSIS AND FINDINGS

The Survey how been carried out for collecting data to know perception

of the customer and analyzing and to interpreting the data for suggesting

method for improvement.

Area of Survey

The Survey covered 50 customers of the bank. Customers are selected

on the basis of their occupation, education, most of the customers are

agricultural people dealing in the branch and the customers are village people

who are belonging to survey and other 8 to 12 nearly villagers. The following

tables give the analysis of perception of respondents.

AGE GROUP

Age is an important factor that influences on human activities the customer are

classified on the basis of their into categories ranging from below 25 to above

50



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TABLE-1

Age group No of respondents PercentagesBelow 25 04 08

25 TO 35 34 68

35 TO 50 09 18

Above50 03 06

total 50 100

From the above table it is clear that out of the total respondents so

conducted 8% of them belong to age group blow 25 year in the age 25 to 35

there are 68% respondent and above 50 there are 6%respondent the bank has

become successful in attracting middle aged customers as they are more sagely

cons ions and save more


4

34

9

3

0

5

10

15

20

25

30

35

Below 25 25 TO 35 35 TO 50 Above50


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Table -2

EDUCATIONAL QUALIFICATION

The following table shows the distribution of respondents on the of there

educational qualification

Qualification No of respondents Percentages

Up to Middle Scholl 15 30

Up to Higher Scholl 18 36

P U C 13 26

Graduation 04 08

Total 50 100

From the above table we can final that the majority of the customers belonging

to the up to higher secondary level since 36% of individual depends and

considered as educated up to PUC


Up to M iddle Scholl

33%

Up to Higher Scholl

39%

P U C

28%


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Table 3

LAND HOLDING:

The classification of customers on the basis of their land holding is made into

categories which is show in the following table

Land holding No of respondents Percentage

1 to3 acres 13 26

3 to 6 27 54

6 to 10 06 12

10 above 04 08

Total 50 100


1 to3 acres

26%

3 to 6

54%

6 to 10

12%

10 above

8%


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Classification of barrowers on the basis of working status and annual

income

Table 4

Working Status Below25.000 Below25,000 25,000 To50,000 Above1.00,000

Agriculturist 0 20 30 10

Businessmen 06 20 12 06

Employees 0 0 4 4

Labour 0 4 0 4

Total 06 24 46 24

This Table shows annual income of barrowers according to their

occupation.

The annual income of borrowers is decided in to 4 groups i.e. below

25000, 25000 to 50,000, 50,000 to 1.00.000, above 1.00.000. Among the

Agriculturist, 20 persons come under income of Rs. 25000 to 50,000, another

30 persons come under the group of 10,000 to 1.00.000, only 10 persons come

under the group of above 1.00,000. Among agriculturist the income below

25.000 shows nil.


0

5

10

15

20

25

30

35

Below 25.000 Below 25,000 25,000 To 50,000 Above 1.00,000

Agriculturist

Businessmen

Employees

Labour


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Money borrowers on the basis of education and age

Table - 5

Age / Education Below 25 25-40 40 & above Total

Illiterates 0 0 10 10Up to & above high school 05 54 10 70

Graduation & above 10 06 04 20

Total 16 60 24 100

From the above table we can concludes that among person below 245

year age, 6 persons some under the group up to and above high school and

remaining 10 person completed their degree.

Under the age group 25 to 40 years, no one is an illiterate, 54 persons

come under the group up to and above high school and remaining 6 persons

belonging to the group graduation and above.

Among the 24 persons under the group 40 and above aged persons, 10

persons were illustrates. Another 10 persons were up to and above high

school, and remaining 2 persons come under the education group graduation

and above.


0

5

10

0

54

6

10 10

4

0

10

20

30

40

50

60

Below 25 25-40 40 & above


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Opinion of borrowers to the rate of interest on deposits with their types of

deposits

Table 6

Opinions S.B Recurring

Deposit

Fixed

Deposit

Kamadhenu

Deposit

Total %

Attractive 0 02 10 08 20 20%

Satisfactory 24 08 16 12 60 60%

Not

satisfactory

16 0 4 0 20 20%

Total 40 10 30 20 100 100%

The above table shown that the borrowers deposit their amount in 4

types of deposit schemes.

40 persons deposit their amount in savings bank account. Among these

persons no one opinioned that the rate of interest on deposits is attractive. 24

persons opinioned that rate of interest on deposits in satisfactory and

remaining 8 persons opined that it is not satisfactory.

Among to 10 recurring deposit holders the interest charged on deposit

is satisfactory.

Among the total respondents 30 persons deposit their amount in fixed

deposits schemes. Among these respondents 10 opined that interest on deposit

is attractive, another 16 persons response that rate of interest is satisfactory.

According to remaining 4 people interest on deposit is not satisfactory.



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Graph shows Opinion of borrowers to the rate of interest on deposits with

their types of deposits


0

24

16

2

8

0

10

16

4

8

12

00

5

10

15

20

25

S.B Recurring Depos it Fixed Depos it Kamadhenu Depos it

Attractive Satisfactory Not satisfac tory


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Opinion of borrowers to the rate of interest on various types of loans

borrowed

Table 7

Opinion No of respondents PercentageLow 0 0

Satisfactory 56 56

High 44 44

Total 50 100

Among 100 persons no one opinioned that interest on loan borrowed is

low. 56 person viewed that rate of interest is satisfactory. But according to 44

people interest on deposit to high.


0

56

44

0

10

20

30

40

50

60

Low Satisfactory High


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TABLE-8

Response of the borrower to the customer service in Bank

Response No. of Respondents PercentageExcellent 80 80

Satisfactory 20 20

Not satisfactory 0 0

Total 100 100

The borrowers are satisfied about various customer services in bank.


Excellent

80%

Satisfactory

20%

Not satisfactory

0%


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Opinion about the bank performance in agricultural finance and rural

development.

Table -9

Performance of Bank No. of Respondents Percentage

Excellent 10 10

Satisfactory 76 76

Improving 14 14

Total 100 100

According to 10% of the borrowers the performance of bank in

agricultural finance is excellent. Majority of borrowers i.e. 76% of the people

opinioned that bank performance is satisfactory. And 14 persons opinion that

performance of bank is improving it can be shown in the following diagram.


Excellent10%

Satisfactory76%

Improving14%

Excellent Satisfactory Improving


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IMPORTANT FINDINGS OF SURVEY

The Survey helps us to know perception of the customers and it is

helpful for suggesting methods for improvement of branch and bank.

The Survey shows that majority of Customers are agriculturists. And it is

clear that agriculturist get maximum help from the bank.

As the agriculturists are large in number, the annual income of borrowers

belongs to income group 10,000 15000

The Education of Majority of the borrowers is up to and above high school.

Less number of borrowers completed their degree..

60% of borrowers satisfied on the rate of interest on deposit and some

borrowed dissatisfied about that and it should increased from the point of

view of customers.

Major numbers of customer have 12 barrowed crop loans. But few people

barrowed allied already loan.

The interest charged in loans is considerable to majority of people but

some borrowers felt that his high.

Borrowers have good opinion about the customer services are bank.

Customers have good opinion about the punctuality of staff.

The Repayment period of loans is satisfied to majority of borrowers. But

few of them not satisfied.

Major number of borrowers used their loans for primary purposes.



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CHAPTER -8

SUGGESTIONS AND CONCLUSION



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SUGGESTIONS

While the survey was conducted the customers of S.K.V.S.S.B

complained about a number of problem, they are as follows:

1 Lack of Staff

Staff is an essential element in providing facilities to the members.

While getting the response. The customers have made complaint about

scarcity of staff. The management should take necessary steps to appoint more

employees to fulfill the needs of the customers. This may result in reduction of

burden of the employees. There fore management should make arrangement

for staffing in the society sufficiently.

2 Rate of interest on Deposits:

The society should take necessary steps to increase the rate of interest

offered on deposits.

3.Enquiry Counter

Facilities are known to the members through publicity and wide

turnover, but unfortunately, society has a number of illiterate and innocent

members for them, enquiry counter is essential to know about the society's

facilities.

4. Complaint Box :

Sometimes, members can highlight their grievances about the

translations of the society through complaint box. There fore the management



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should take necessary steps to provide complaint box to the members for

solving their problems.

5 Simplification of loan procedure:

Only the educated and business knowledgeable persons understand the

procedure of sanctioning the loan. It creates problems to a common man.

Hence, it should be simplified with minimum risk.]

6 Interest On Loans:

Total disbursement is an indication of solvency of the society with

minimum rate of interest, but in S.K.V.S.S.B. the rate interest charged on

loans is comparatively high. As for as possible the society should reduce the

rate interest on priority sector and it is advisable for the society to get some

amount of income from other facilities. That means the society should invest

its funds in profitable ways.

7 Locker Facilities :

The society should provide lockers facilities to the members with

minimum locker commission.

8 New Loans and advance Schemes:

During the survey, some of the customers opinioned that, the types of

loans are few. There fore the society should take necessary steps to increase its

loan facilities to building construction. Loan on Jewell Aries and other

valuables, which are put at society locker. This encourages the needing people

to get more facilities.



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9 Branch Expansion:

Since inception of the society, the members have been increasing due to

its handsome facilities. Hence, the membership has been overflow and it has

proved more work to the staff members. With the help of opening one more

branch, over flow can be minimized.

10 Lack of current A/C Facility:

Large numbers of society borrowers are related to business class and

petty shop owners. They are very much interested in opening the current a/c

facilities for their day to day transaction. Therefore, it is advisable for the

society to improve current a/c scheme for the benefit of its customers.

11 Use of mechanical devices:

Improvement should be made in accounting software even through; the

society has made a milestone in introducing "Kannada " as a medium in

computers.



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CONCLUSION

"A co operative society is a form of business organization in which

financially weak persons voluntarily associate together as human beings on the

basis of equality of opportunity and control, equality of distribution of profits

an mutuality for the promotion of their common economic interests".

Democratic management is the fundamental principle of a co-

operative society. As a co operative society operates on a local scale,

generally, all the members must attend the meetings since in the meetings the

policies, which promote common interest, are laid down.

The study was under taken with an objective to analysis working and

management of S.K.V.S.S.B. and to know how the society satisfies the credit

needs of its members. The study was also made about how best the members

utilize the credit schemes of the society.

Suggestions have been given for improving the working conditions of

the society. The study reveals that the society has fulfilled the objectives for

which purpose it was set up.

From one year to another year, the society has gained more and more

profit and has economic progress. The society has worked a lot for the

upliftment of the poorer class of people to come forward . It has been observed

that recovery of loan is more than expected. It has been strengthening the



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financing position of the society and its member's financials soundness. The

recovery of loans is very much satisfactory.

At the same time, the borrower member should also assist in improving

society's performance by proper repayment of loans borrowed. This helps not

only the society, but also the members themselves. Therefore, it can be

calculated that, the society has fulfilled "EACH FOR ALL AND ALL FOR

EACH" principle ( co opera ration) and the society can flourish better by

proper co- operation of director's and its valuable shareholders



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ANNEXURE

Questionnaire

Dear Respondent

I am student of final year B.B.M of the department of business

management Sahyadri Commerce College, Shimoga which is affiliated to

Kuvempu University I have under taken the matter of Agriculture Finance

with special reference to Kasaba Vyavasaya Seva Sahakara Bank Lit,

Shikaripura Taluk

Kindly fill up my questionnaire and give valuable suggestion the data

that is give by you will be used only for academic purpose

Thanking you

Yours sincerely

Raghavendra. E.R.

1. NAME.................................

2. ADDDRESS.............................

.................................................

3. AGE

BELOW 25 [ ]

25 TO 35 [ ]

35 TO 50 [ ]

ABOVE 50 [ ]



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4. SEX

MALE [ ]

FEMALE [ ]

5. QUALIFICATION

UP TO MIDDLE SCHOOL [ ]

UP TO HIGHER SCHOOL [ ]

P U C [ ]

GRADUATIONER ABOVE [ ]

6. OCCUPATION

AGRICULTURIST [ ]

BUSINESSMAN [ ]

OTHERS [ ]

7. HOW MUCH LAND DO YOU POSSE

1 TO 5 ACRES [ ]

5 TO 10 ACRES [ ]

10 ABOVE [ ]

8. YOURS ANNUAL INCOME

25.000 TO 50.000 [ ]

50.000 TO 1.00.000 [ ]

1.00.000 ABOVE [ ]



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9. LAND HOLDING IS

LRRIGTED [ ]

NONLRRIGTED [ ]

10. ARE YOU MEMBER OF KASABA VYAVASAYA BANK

YES [ ]

NO [ ]

11. DO YOU HAVE ANY IN THE KASABA BANK

YES [ ]

NO [ ]

12. BORROW MONEY FOR

AGRICULTURE PURPOSE [ ]

TO REPAY OLD LAND [ ]

OTHERS [ ]

13. INTEREST PAYABLE ON YOU DEPOSIT BY SOCITY IS

ATTRACTIVE [ ]

SATISFACTORY [ ]

NON SATISFACTORY [ ]

14. LOAN IS TAKEN FOR

PURCHASING SEEDS [ ]

PURCHASING MANARE [ ]

HARVESTING [ ]



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15. ARE YOU SATISFIED DISCOUNT ON AGRICULTURAL LOAN

YES [ ]

NO [ ]

16. DO YOU REPAY THE LOAN PROMPTLY

YES [ ]

NO [ ]

17. WHAT IS OPINION SERVICES AT THE BANK

GOOD [ ]

SATISFACTORY [ ]

NON SATISFACTORY [ ]

18. DOSE THE BANK STAFF ASSIST YOU IN GETTING THE LOAN

YES [ ]

NO [ ]

19.YOUR SUGGESTION GUIDELINES RELATING TO

BANK ...........................................

DATE

PLASE SIGNATURE



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Documents

KASABA SOCITY