OPERATIONS OF CO-OPERATIVE BANK

An Internship Program Report Submitted to Thiruvalluvar University,

Serkkadu, Vellore in partial fulfillment for the award of the degree of

MASTEROFSCIENCE
IN
MATHEMATICS

by

T ALAMELU ([Link]: 20723P20001)

Under the guidance of

[Link], [Link].,[Link].,[Link].

Head of the Department, PG Department of Mathematics,

KING NANDHIVARMAN COLLEGE OF ARTS AND SCIENCE.
Thellar

KINGNANDHIVARMANCOLLEGEOFARTSANDSCIENCE
Thellar,606603

2024 – 2025
 (SEMESTERIII)
CERTIFICATE

This is to certify that an internship program report entitled

“ OPERATIONS OF CO OPERATIVE BANK ” is done by Ms. T ALAMELU ([Link].
20723P20001), II [Link]., Mathematics, King Nandhivarman College of Arts and Science, Thellar, during
2024 - 2025 (Semester III).
Submitted to Thiruvalluvar University, Serkkadu, Vellore in partial fulfillment of the
Requirement for award of the Degree of MASTER OF SCIENCE IN MATHEMATICS
and that the report has not previously formed any basis for the award of any other Degree and
that the report represents independent and original on the part of the candidate under my
mentorship.

Head of the Department Signature of the Mentor

Principal
 DECLARATION

I hereby declare that an internship program, report entitled “OPERATIONS OF

COOPERATIVE BANK“ submitted to the Thiruvalluvar University, Serkkadu, Vellore in
partial fulfillment of requirements for the award of the Degree of MASTER OF SCIENCE IN
MATHEMATICS is a work done by me under the mentorship of [Link]
[Link].,[Link]., [Link]., HOD PG Department of Mathematics, King Nandhivarman College of
Arts and Science, Thellar and it has not formed any basis for the award of any Degree / Diploma
/ Associate ship / Fellowship or other similar title to any candidate of any University.

Date: Signature of the candidate

Station: Thellar (T ALAMELU)
[Link]. 20723P20001
 ACKNOWLEDGEMENT

At the out set I expressed my heart full sentiments of gratitude to the almighty God,
to whom I own everything, and whose continuous inspiration, institution and enlightenment
made me construct this Internship report.
First of all I express my sincere thanks to The Secretary an Correspondent, of
Primary Cooperative Agricultural and Rural Development Bank Ltd for giving holistic
support to my study.

I am grateful to my guide to express my thanks to Head of the department in

Mathematics, MrS. MADASAMY [Link]., MPhil., [Link]., I received sustained
encouragement and help throughout the period of my study. He is really a source of
inspiration to complete my study successfully.

I wish to express my sincere thanks to [Link].,MA.,[Link].,Ph.D.,

Principal, King Nandhivarman College of Arts & Science – Thellar, for his constant
encouragement and valuable support.

I wish to express my thanks to [Link].,[Link].,[Link].,[Link].,

Assistant Professor Department of Mathematics King Nandhivarman College of Arts
&Science – Thellar for her kind support

I wish to express my thanks to [Link].,[Link].,[Link].,[Link]., Assistant

Professor Department of Mathematics King Nandhivarman College of Arts &Science –
Thellar for her kind support

I offer my humble thanks to my classmates and all the members of the Department of
Mathematics at King Nandhivarman College of Arts & Science – Thellar for the valuable
support during the period of my study.

I would like to extend my gratitude to my Parents & Brothers & Sisters and my dear
friends.

Place:THELLAR (T ALAMELU)

Date:
 TABLE OF CONTENT
Sr. No. Contents Page No.

1 Introduction

• Background of study
• Industry profile
• Recent industry trends

2 Company profile

• Company history
• Company vision and mission
• Achievements
• Services and product profile
• Company process
• Other details

3 Methodology & Analysis

• Scope of study
• Objectives of project
• Sources of data collection
• Presentation of data
• SWOT analysis
4 Findings

Conclusion

Limitations of project

5 Observations & Learnings from project

Suggestion/Recommendation and contribution to the company

6 Appendix

• List of Charts
• Bibliography
Annexure as required
 [Link]

1.1 BACKGROUND STUDY

Co-operative bank, in a nutshell, provides financial assistance to the people with small means to
protect them from the debt trap of the money lenders. It is a part of vast and powerful structure of
co-operative institutions which are engaged in tasks of production, processing, marketing,
distribution, servicing and banking in India. A co-operative bank is a financial entity which
belongs to its members, who are at the same time the owners and the customers of their bank. Co-
operative banks are often created by persons belonging to the same local or professional
community or sharing a common interest. These banks generally provide their members with a
wide range of banking and financial services (loans, deposits, banking accounts...). Co-operative
banks differ from stockholder banks by their organization, their goals, their Values and their
governance. The Co-operative Banking System in India is characterized by a relatively
comprehensive network to the grass root level. This sector mainly focuses on the local population
and micro- banking among middle and low income strata of the society. These banks operate
mainly for the benefit of rural areas, particularly the agricultural sector.

Banking sector plays an important role in the development of an economy. Any problem in this
sector will often extend to real sector. Assets quality was not a prime concern of the banks till
1991. Banks mainly focused on expansion, development of rural areas, priority sector lending etc.
But now the prime challenge is mounting pressure of NPAs. NPAs engulf the public sector banks
as well as private sector also. It not only affects the banking sector but the whole economy as
well. Banks often lean into the risk free investment that is not conducive for the growth of
economy. The level of non-performing assets (NPAs) best indicates the soundness of the banking
sector of a country. The assessment of private sector banks reveals that the growth rate of NPAs
is low as compared to the nationalized banks. Schumpeter, the first modern economist considered
banks to be the most important of all the financial intermediaries in the financial system of a
country. But in recent times the banks have become very cautious in providing loans, the reason
behind is the non-performing assets. Non-Performing Assets are defined as the loans which have
ceased to generate any income for a bank whether in the form of interest or principal amount. The
main source of data for this study is the past records prepared by the bank. It is to determine that

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the NPA’s of the bank since its inception and to identify the ways in which the performance
especially the non- performing assets of BUCCS can be improved.

What is a Non-Performing Asset?

A non-performing asset (NPA) is a classification used by financial institutions for loans and
advances on which the principal is past due and on which no interest payments have been made
for a period of time. In general, loans become NPAs when they are outstanding for 90 days or
more, though some lenders use a shorter window in considering a loan or advance past due.

A loan is classified as a non-performing asset when it is not being repaid by the borrower. It
results in the asset no longer generating income for the lender or bank because the interest is not
being paid by the borrower. In such a case, the loan is considered “in arrears.”

Sub-Classifications for Non-Performing Assets (NPAs)

Lenders usually provide a grace period before classifying an asset as non-performing. Afterward,
the lender or bank will categorize the NPA into one of the following sub-categories:

1. Standard Assets

They are NPAs that have been past due for anywhere from 90 days to 12 months, with a normal
risk level.

2. Sub-Standard Assets

They are NPAs that have been past due for more than 12 months. They have a significantly
higher risk level, combined with a borrower that has less than ideal credit. Banks usually assign
a haircut (reduction in market value) to such NPAs because they are less certain that the borrower
will eventually repay the full amount.

3. Doubtful Debts

Non-performing assets in the doubtful debts category have been past due for at least 18 months.
Banks generally have serious doubts that the borrower will ever repay the full loan. This class of
NPA seriously affects the bank’s own risk profile.
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4. Loss Assets

These are non-performing assets with an extended period of non-payment. With this class, banks
are forced to accept that the loan will never be repaid, and must record a loss on their balance
sheet. The entire amount of the loan must be written off completely.

1.2 INDUSTRY PROFILE

The Co-operative banks are an important constituent of the Indian Financial System, judging by
the role assigned to them, the expectations they are supposed to fulfill, their number, and the
number of offices they operate. The co operative movement originated in the West, but the
importance that such banks have assumed in India is rarely paralleled anywhere else in the world.
Their role in rural financing continues to be important even today, and their business in the urban
areas also has increased phenomenally in recent years mainly due to the sharp increase in the
number of primary co-operative banks. Co-operative bank regulated by Reserve Bank of India,
NABARD & Apex bank.

The co-operative banks in rural areas mainly finance agricultural based activities including
farming, cattle, milk, hatchery, personal finance etc. along with some small scale industries and
self-employment driven activities, the co-operative banks in urban areas mainly finance various
categories of people for self-employment, industries, small scale units, home finance, consumer
finance, personal finance, etc. Though registered under the Co-operative Societies Act of the
Respective States the banking related activities of the co-operative banks are also regulated by the
Reserve Bank of India. They are governed by the Banking Regulations Act 1949 and Banking
Laws (Co-operative Societies) Act, 1965.

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1.3 RECENT INDUSTRY TRENDS

Banking systems and financial institutions are integral parts of an economy. Seamless functioning
of these sectors is important for an economy to grow. Due to the advent of digital technology,
banking and financial services have undergone a massive shift in their mode of operations. New
trends are gaining momentum at a fast pace as the customers find it convenient and also flexible
at the same time. The emergence of financial technology has resulted in the introduction of
several technological advancements in the industry. Fintech companies, internet banking and
mobile banking are just some examples that mark this shift. Today, we will read about the latest
trends that are revolutionising the Indian banking and financial sector.

Digitalization

With the rapid growth of technology, digital services became an indispensable part of banking
operations as these institutions needed to keep up with the changes and introduce innovations that
made services convenient. In India, the initial phase of digitalization began in the 1980s when
information technology was used to perform basic functions like customer service, bookkeeping,
etc. Gradually core banking solutions were also adopted to improve customer experience. The
main shift came during the 1990s when liberalization opened the Indian market to the global
world. Private and international banks which came into operation boosted technological changes
in the banking sector. Features like online banking, IMPS (Immediate Payment Service), RTGS
(Real Time Gross Settlement), telebanking enabled customers to avail banking facilities from
anywhere.

Mobile Banking

Almost a decade back, even though digital services came into the picture, it was only done
through desktop computers which means the customer must be at home or at a place with a
computer and internet connection. But the vast penetration of smartphones created a need among
customers to avail banking services on their mobile phones. Cheap data charges also contributed
towards the increase in usage of mobile banking.

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Unified Payment Interface (UPI)

UPI is a trend that emerged in the last couple of years and it is revolutionizing the way we pay
and receive money. Transactions can be done within seconds using this interface. Goggle Pay and
BHIM (Government of India) are two major interfaces among numerous other services that
enable easy payment even if you are out of physical cash.

Blockchain

Blockchain is a robust technology that is still in the development phase. Security is a major factor
as far as digital services are concerned. Despite technical advances, fraud practices are still a
challenge in the digital domain. Blockchain is the answer to these challenges. Like the way in
which it operates, there is no scope for any malpractices in it. The technology works on computer
science, data structures and cryptography.

Artificial Intelligence (AI) Robots

Many private and nationalized banks have started to make use of chatbots or Artificial
Intelligence (AI) robots for assistance in customer support. The practice is still in its initial stage
but will definitely evolve and make the entrance to the general public in the near future. Chatbots
are one of the emerging trends that are estimated to grow.

Fintech Companies

Fintech or financial technology is indeed a disrupting force in the sector. Due to the changing
landscapes in the Indian financial sector, many companies have emerged to be a significant part
of this ecosystem. Fintech companies specialise in developing technology solutions that help
companies to manage the financial aspects of their business, like new softwares, applications,
processes as well as business models. Investments made on Fintech companies have increased
drastically in the past decade making it a multi-billion dollar industry globally.

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Digital-only Banks

Digital-only banks operate only through IT platforms which can be accessed using mobile
phones, laptops or tablets. Digital-only banks operate in a paperless and branchless model and
seem to overtake the traditional system of banks in the future. These banks provide high-speed
banking facility at a low transaction charge. These virtual banks are an ideal choice for the
current fast-paced world.

All these recent trends will reshape the banking and finance industry by bringing revolutionary
changes in the traditional models. This shift is not devoid of challenges, but the customers are
quite open to innovations and the government is also showing great support for these trends.

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 [Link] PROFILE

2.1 COMPANY HISTORY

Buldana Urban Cooperative Credit Society was formed on 15 August 1986. Chairman (Mr.)
RadheshyamjiChandak started it with capital of 210 USD and 72 members. In a span of 35 years
and mainly in last decade under managing director Dr SukeshZamwar, [2] the Credit Society has
grown to size of 2.1 billion dollar business with more than one and half a million (1700,000)
membership. The area of operation is mainly in central and western India in four states of India.
Now the society has 465 branches in 4 states of India. and 7000 employee and
350+ warehouses. Total built up area for Warehouse is 7.10 milllionsq feet and capacity of
7,00,000 metric tons. It maintains a presence in most of the metro cities of India and also in rural
areas.

 Society carries out the activity of collecting deposit and lending amount to
needy persons.

 Provides money to agriculture and some other associated activities.

 Society performs financial mediator for many activities.
 Provide loans at very low rate of interest to middle/lower class groups.

2.2 VISION AND MISSION

Vision

To be a multi-faceted, world-class financial entity rooted in co-operation and social

responsibility.
To establish a branch in every district across Maharashtra and a 'Godam' (warehouse) wherever

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required.
To achieve 0% N.P.A. ( Non Performing Assets)

Mission

To work with strategic focus on excellent quality, affordable cost, timely delivery and complete
customer satisfaction
To take our responsibility, as a global citizen, seriously
To go beyond just finance to ensure sustainable economic future for the common man.

2.3 ACHIEVEMENTS

 Vice president of global youth network on cooperative (First Indian)

 Chairman international cooperative alliance Asia pacific youth committee (UN affiliated
highest body of cooperative in Asia) (first Indian)
 Chief India coordinator of Asian confederation of credit union (a conglomerate of 27
nations)
 Advisor to BRICS (Brazil Russia, India, China, South Africa) cooperative bank forming
committee
 Chief managing director of urban co-op credit society (India's largest)
 CMD of international operations Maharashtra federation of credit Co-operatives
 Receive highest award for best credit co-op society two times by Nour,APEX body of
cooperative in India
 Innovative banking award in THIALAND
 World corporate ascellence and by CMO Asia
 Best youth CEO award by prestigious banking frontier magazine
 Closely associated with Nepal cooperative movement along with finance ministry Nepal
and central bank Nepal.
 Associated with SAARC cooperative movement

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2.4 SERVICES AND PRODUCT PROFILE

1. Loan on fixed deposits

2. Loans on cumulative deposits

3. Loan on gold and silver ornaments

4. Loans on vehicles

5. Service of cash credit

6. Loans on immovable property

7. Loan for education.

8. Loan on crop.

9. Various types of deposits.

 Loan on fixed deposit: society collect the deposits from the general public in
the form fixed deposit and provide loans on these deposits on certain term
pertaining to banking regulation.

 Loans on cumulative deposits: society provides the loans to customer in the

form of cumulative deposit which can be more benefitted to customer.

 Loans on gold and silver ornaments: society provides loans on the gold and
silver ornaments of the customer. It is returned when customer has paid loan
amount dues.

 Loans on vehicle : in recent period loan on vehicle has increased larger rate.
Certain terms and conditions has to be fulfilled by customer while loans on
vehicle.

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  Service of cash credit : society also provides service of cash credit to it is to its
customer in which it has to be repaid in the stipulated time period. Society
charges some amount of commission on these services.

 Loans on immovable property : society also gives the loans on immovable

property on which the customer is going to pledged for taking loan.

 Loan for education : society also provide the loan for education to students,in
which it has to be repaid after completion of education.

 Loan on crop : society gives loan to farmers on their crop,it is returned in

single instalment after crop production.

 Various types of depos

deposits : society also provide various types of deposits i.e.
Saving Deposits, Term Deposits, Recurring Deposits

2.5 COMPANY PROCESS

The banking system of Buldana Urban Cooperative Credit Society is divided into three major
divisions. These divisions are –

 General banking department

 Credit and advances department
 Cash department

GENERAL BANKING

CREDIT AND
BUCCS ADVNCES

CASH

GENERAL BANKING :

General banking is the starting point of all the banking operations of BUCCS. It is the
department, which provides day
day-to-day
day services to the customers and develops
develop banker
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customer relationship by opening different types of account and by providing prompt
services to the customers.

Officers of this department have to perform the task given below,

- Opening new account
- Account closing
- Cheque book issue
- Clearing house activities

Account Opening Section:

To establish a banker and customer relationship account opening is the first step. Opening of an
account binds the Banker and customer into contractual relationship. But selection of customer
for opening an account is very crucial for a Bank. Indeed, fraud and forgery of all kinds start by
opening account. So, the Bank takes extremely cautious measure in its selection of customers. A
customer can open different types of accounts through this department
Clearing Section :
Clearing is a system by which a bank can collect customers fund from one bank to another
through clearing house. For example, a client of BUCCS received a cheque of another
bank which is located within the clearing range deposit the cheque in his account at
BUCCS. Now BUCCS will collect the money and credit his account.

Credit And Advance Department :

Bank’s basic work is to create a channel through depositing money from the surplus unit
and provide funding to borrowers. Thus the necessity of credit department in bank occurs.
The credit department is a very important department of a bank. The money mobilized
from ultimate surplus units are allocated through this department to the ultimate deficit
unit (borrower). The success of this department keeps a great influence over the profit of a
bank. Failure of this department may lead the bank to huge losses or even to bankruptcy.
BUCCS credit department also tries to do their job [Link] the members of the
societies are entitled to get loans from them. Most of the loans are short-term loans and
are for agricultural purposes. Low interest rates are charged on the [Link] societies are
expected to increase amounts of loans to the weaker sections of the rural community,
particularly the small and marginal farmers.

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Cash Department :

Cash department is the most vital and sensitive organ of the branch as it deals with all
kinds of cash transactions. This department starts the day with cash in vault. Each day
some cash that is opening cash balance are transferred to the cash officers from the cash
vault. Net figure of this cash receipts and payments are added to the opening cash balance.
The figure is called closing balance. This closing balance is then added to the vault. And
this is the final cash balance figure for the bank at the end of any particular day. At SBL
Mirpur Branch the cash section is divided into two parts. Two officers receive and make
payment of cash and two officers are engaged with bills collection.

Function of Cash Department:

Cash Payment:Cash payment is made against cheque and withdrawl slip. This function is
known as payment on demand. At the time of making payment in cash the respective
officer has to check the following things on the cheque:

 Valid and correct date .

 Verifies the sign of account holder .
 Amount written in numeric figure and amount written in word.

Cash Receipt:Receive deposits from the depositors in form of cash. So it is the

“mobilization unit” of the banking system. It collects money only in its receipts forms.
Some mandatory fields to check are:

 Whether The Deposit Slip Is Written Properly .

 Amount Of Money Is Given By The Customer.

Cash packing:After the banking hour cash is packed according to the denomination. Notes are
counted and packed in bundles and stamped with initial.

2.6 OTHER DETAILS

 Buldana urban is running 21 English medium schools with 30000 students are getting
[Link] schools are equipped with all modern day facilities and world class
[Link] are getting digital education and high class scientific education.

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  They are also working in health related activities by having an association with ICICI
LOMBARD health to have concept of health insurance in rural India almost 600000
people are benefitted from health insurance.
 They have around 40 ambulances at different places for serving the people.
 They used to organize eye camps, vaccination camps and up till now we did health
checkups of 100000 people.
 Building hostels for member's children or for members in PUNA.
 Building hostel for working woman and students in BULDANA.
 Building old age home for old [Link] future number of old people will increase and to
cater their future need we build old age home.
 Adoption of 120 villages in rural area benefitting population of 250000
 Innovative TEXTILE meal making yarn directly from cotton without pressing at very low
cost.
 Cleaning and grading unit.
 Bag packing units.
 Warehouse facility for farmers to store grains.
 urban has build 5 guest houses in religious places
 They are also opening vaidic school to promote vedas

2.7 SWOT ANALYSIS

 Strengths :
 The bank offers the variety of retail banking such as ; current account,
mortgages,loans, credit card and varius investments.
 Bank provides its costomers with latest facilities like internet banking facility and
mobile banking facility.
 Bank has many attractive deposits scheme.
 It has well reputation in market.
 Weaknesses :
 Suffering from the lack of professional management.
 Suffer From Too Much OfficialisationAnd Politicisation.
 Lack of promotional activities.
 Opportunities :
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  The bank should introduce new products and schemes to bring in new customers. It
should also build relationships with existing customers to retain them.
 The bank should come up with better governance and be more transparent, in order
to restore customer confidence in the processes of the bank.
 By doing social welfare activities it can creat good impact on public mind

 Threats :
 Competitor banks increasing their activities.
 Highly competitive environment.
 Policies of the government
 Banking technologies are changed.

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 3. THEORETICAL BACKGROUND

Introduction of Non-Performing Assets:

NPA is the most important data which needs to be compared amongst banks. NPAs of a bank can
affect other ratios, operations and revenue. Correct analysis of NPA will give you a fair idea of
which bank is performing better among its peers.A bank’s primary source of income is the
interest it receives on the loans it provides. When a bank loans money, they expose themselves to
credit risk. It means that there are chances that the borrower might fail to repay bank’s [Link]
this happens, the loaned amount is classified as Non-Performing Asset.

A loan is classified as a non-performing asset when the repayment is overdue for more than
90 days. It negatively affects bank’s ability to generate adequate income and profitability.A wise
manager will always set aside some funds as reserves in case of such bad debts. In banking terms,
this is called the Provisional Reserves. Such provisions eat into your profits because you can’t
use this money elsewhere. But this is very important for banks to safeguard themselves from
huge [Link] total defaults are classified as Gross NPAs (GNPA). The balance amount which
remains after deducting the provision is classified as Net NPA (NNPA).

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 Gross NPA and Net NPA

Gross NPA is the total amount of NPAs without deducting the provisional amount.

Net NPA is simply the gross NPA minus the provision left aside. It is used as a measure of the
overall quality of the bank’s loan book.

For example, a bank loans out Rs. 100 Crores and the provisional amount set aside is Rs. 30
Crores. By the end of the financial year, the bank manages to collect Rs. 45 Crores only.

The total default of Rs. 55 Crores is the Gross NPA. The formula to calculate Net NPA is –

Net NPA = Gross NPA – Provisional Reserves

Gross NPA (total NPA) of Rs. 55 Crores – provision of Rs. 30 Crores = Net NPA = Rs. 25
Crores.

16 | P a g e
Banks classify Gross NPAs further into three categories – substandard, doubtful, and loss
assets.

a. Sub standard assets

Assets which are NPA for a period less than or equal to 12 months are sub standard assets.

b. Doubtful assets

An asset that remains NPA for a period exceeding 12 months is doubtful asset. They have a
significantly higher risk level compared to substandard asset.

c. Loss assets

When a loss has been identified by an auditor and the amount has not yet been fully written off, it
is classified as a loss asset. In other words, such an asset is considered uncollectible. Its record as
an asset is not warranted although there may be some recovery value.

Factors that Contribute to Non-Performing Assets (NPA)

The factors that contribute to Non-Performing Assets (NPA) are as follows:

 The bank’s lending to the corporations/persons etc. whose creditworthiness is not

guaranteed and taking a lot of high risks. (NPA in Banking)

 The banks are not able to diminish their losses by a complete understanding of the
sufficiency of the bank in terms of the loan or capital loss at a specific time frame.

 The funds are being redirected elsewhere by the promoters of the companies.

 The banks that try to fund projects that are not viable.

 Not enough means to collect as well as distribute credit information in between the
commercial banks and

 Non-efficient recovery of the debts from the overdue borrowers.

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 Impact of High NPAs and how to interpret it

High NPA’s are a red flag for investors. It suggests that the particular bank is not viable. This
immediately impacts the banks’ cash flow and future [Link] these NPAs were paid on time,
they would’ve generated additional capital for the banks. This could have been used further by
the banks to extend more loans. In fact, banks have to create additional provision if their NPA
percentage keeps on increasing.

Funds kept aside as provision could have been sourced from the future profits of the bank which
otherwise could have been used to maintain stable [Link] simple words, high NPA stops
possible future revenue generation.

How can the NPA crisis be resolved?

NPA is like a bone stuck in the throat of the Banks and the Indian Government. Government is
planning many steps to recover the lost NPA’s so as to balance the current scenario of the
Banking Sectors. As of March 2019, there was approximately 8.06 lakh crore NPA in the market.

Few steps that could be taken to solve this crisis are as follows:

• Devise role, purpose and business strategies for the Public Sector Banks.
• Incentivize Public Sector Banks to attract better talents for Job.
• Penalize wrong actions and enforce strict enforcements.
• Create a secondary market for NPA’s and promote transparency and autonomy.
• Couple the business intelligence to meet traditional means.
• Strengthen RBI’s Supervisory capacity.

Latest Measures Taken by RBI to Prevent NPAs (NPA in Banking)

The primary measures taken by the Reserve Bank of India for preventing NPA (NPA in Banking)
are as follows:

 The community of lenders should adhere to strict timelines for a resolution plan.

 The lenders must be given certain incentives for agreeing to resolution plans that are
underway.
18 | P a g e
  There should be initiatives to improve the present restructuring procedure,
restructuring of large values etc.

 The future borrowing for the non-cooperative borrowers with the lenders must
necessarily be made more expensive in resolution.

 The asset sales must necessarily be given regulatory treatment that is more liberal.

 In case a loss is being disclosed, the lenders must necessarily be allowed to spread the
losses on the sale for at least two years.

 Leverage buyouts by specialized entities for acquiring ‘stressed companies’ should

necessarily be allowed.

 Necessary steps should be taken for facilitating the better functioning of the Asset
Reconstruction Companies.

 The Private equity/Sector-specific Companies should be helped for playing a very

active role in the market of stressed assets.

3. RESEARCH METHODOLOGY

The report is descriptive in nature. The information was collected from both primary and
secondary sources of data. The study requires various types of information of present policies,
procedures and methods of Banking Operation.

3.1 SCOPE OF STUDY

this report covers Urban Co-Operative Credit Society’s services and products, organizational
overview, management and organizational functions. It also covers overview of general banking
divisions,processes and [Link] consist of my job observation and on job experience during
the internship period.

3.2SOURCES OF DATA COLLECTION

Primary data sources

 Practical desk work

 Face to face conversation with the respective officers and clientsof bank.

The primary data was collected as follows : The questions that were asked for respective officers
of BUCCS’s included questions about personal details of the respondents, facilities provided by

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the bank, about CSR activity of the bank,the percentage of total advances given to the priority
sector, about training programmes conducted by the bank, employee turnover of the bank, period
of various types of loan disbursed, how the bank brings NPA's under control ; ISO
certification,the rates of interest the banks charge for various types of loans, about bank assurance
and core banking facility, the various measures adopted by the banks to increase profitability,
about various problems faced by the bank, profitability of the bank, about cooperative banks
expansion programmes, about sources of finance, about number of members having banking
experience, and how cooperative banks face competition from public , private and foreign banks
etc...

The questions that were asked for BUCCS’s customers included their personnel details, in which
type of bank (Commercial, private, women etc..,) they have their account, various problems faced
in obtaining bank loan, about the procedure how customers can complain about arrogant staff,
about customer complaint handling mechanism, customers needs and expectations, customers
satisfaction level, various improvements required by the banks in case of working hours, services
of the staff, loan and membership procedure of the banks, rating of the bank, involvement in the
management of banks, etc..,

Secondary data sources

 Website of Urban Co-Op. Credit Society Ltd.
 Annual Report of the Urban Co-Op. Credit Society Ltd
 Daily diary(containing my practical activities in bank)
 Various publications on banking operation.

4. DATA ANALYSIS
4.1 Analysis of NPAs

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 4. FINDINGS,CONCLUSION,LIMITATIONS OF PROJECT

FINDINGS :
From results of survey, we can see that during last few years, numbers of clients of Urban Bank
has grown rapidly, which indicates that the bank has been successful to attract clients. But there
are certain factors that the bank management should look at. Customers are not happy with the
interest rate of Loan as most of the competitors of Urban Bank are offering lower interest rate,
which attracts more clients to those banks. Respondents consider the interest rate on savings
account of Urban Bank is pretty reasonable, where as they consider the interest rate on FDR is
not very attractive. Respondents strongly recommend that the bank should immediately install
more ATM Booth all over the district. Most of the respondents are attracted to the deposit
schemes of the Urban Bank as they think these schemes will be able to help them to fulfill their
financial needs. Customers also expressed their concern about the lengthy process for applying
and getting loan. Most of the respondents appreciate the security facilities of Urban Bank. Staffs
are adequate enough to provide efficient services. Scarcity of staffs is a very important problem
Last but not least majority of the respondents think opening account in Urban Bank is helpful
for their business purposes as well individual purposes.

CONCLUSION :

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The bank has successfully made a positive contribution to the economy of India with in very
short period of time. Its profit is gradually increasing. It plays a great role in collecting scattered
Deposit, Loan settlement etc. The Bank ensures quality services to the customers. For better
growth and healthy economic position, it should introduce new and attractive long-term credit
schemes especially for new investors and schemes for poverty alleviation like micro credit. I
hope Urban Bank do more work for socio-economic development besides their banking
business. To keep pace with ever-changing uncertain domestic business environment and face the
challenges of revised global economic scenario, the bank should be more pro-active and
responsive to introduce new marketing strategy to hold the strong position in rular and urban
area. For the future planning and the successful operation in its prime goal in this current
competitive environment I hope this report can provide a good guideline. I wish continuous
success and healthy business portfolio of Urban Co-Op. Credit Society Ltd, Malkapur branch

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