CHAPTER -1

INTRODUTION

1
INTERNSHIP

An internship is a temporary work experience offered by an institution or other

to student, for a fixed period, where they can gain practical knowledge and

skill in a particular field. Internship are often structured to provide hands–on

learning opportunity and exposure to real-world work environments, helping

individuals bridge the gap between academic learning and professional

practice. An internship consists of an exchange of services for experience

between the intern and the organisation. Internship is used to determine

whether the intern still has an interest in that field after the real-life

experience. Internship can provide current college students with the ability to

participate in a field of their choice to receive hands-on learning about

particular future career, preparing them for full-time work experience.

The purpose of my internship is to fulfil the internship requirements for the

HDC &BM course.

Generally an internship consists of an exchange of service experience

between the student and the organization. This is an internship at Vendar

Service Co-operative Bank Ltd No 236. Its various departments, the functions

and working are studied, with the interaction made with several employees. It

helped to know the working environment of the bank apart from theoretical

knowledge about the current scenario of the bank all organizations has a

management structure, it determines the relationship between different

activities and the members and assign roles, responsibilities and authority to

carry out different tasks. The purpose of internship is to learn and observe the

2
banking activities and banking administration and management. I choose

deposit operations of the bank for project.

OBJECTIVES OF AN INTERNSHIP

The objective of an internship typically include gaining practical experience in

a specific field or industry, applying theoretical knowledge to real-world

situations developing professionals, and exploring potential career paths. The

primary objective of an internship report is to document and reflect on your

internship experience, showcasing your activities, achievements and how it

aligns with your academic and career goals, while also evaluating your

learning and professional growth. The basic objective of the following are:

 The detailed study of Vendar service co-operate bank Ltd No 236

 The detailed study of deposit andadvance in the bank.

 To analyse the procedure followed by the bank by accepting deposit

and issuing loans.

 To study the self-help group, Agricultural finance, Micro finance, etc. in

rural development.

SCOPE OF THE INTERNSHIP

An internship is a professional learning experience that offers meaningful,

practical work related to student’s field of study or career interest and it gives

a student the opportunity for career exploration and development, and to learn

new skills. The scope of an internship can vary widely depending on the

organization and the role. It involves hands-on learning, gaining practical

3
experience, and contributing to projects within a specific field and it often get

exposure to various aspects of the organization operations, work closely with

mentors and supervisors, and may have opportunities to network and build

professional relationships and provide unique opportunities for learning

outside of academic settings. It can expose you to new tasks and help you

learn goal specific skills to complete those tasks.

INTERNSHIP ACTIVITIES

An internship is a professional learning experience that offers meaningful,

practical work related to a student’s field of study or career interest. An

internship gives a student the opportunity for career exploration and

development, and to learn new skills. Certain internship activities are as

follows:

 To make internship program engage and beneficial, incorporate

activities mentorship programs.

 To make opportunities for real world projects and skill developments,

alongside intern orientation program.

 To provide clear project description for work experience.

 To develop and achieve learning goals.

 To gain experience and skills in a particular field.

 To develop professional contact.

4
LIMITATION OF AN INTERNSHIP

Internship often has limitation like limited duration, pay and a narrow

scope of responsibility. Additionally,interns may not always receive the

same benefits or recognition as full-time employees, and opportunities

for growth can be limited compared to permanent positions.

Also,interns may not always have the chance to work on high-impact

projects or gain exposure to various aspects of the organization. The

major limitation of including potential lack of pay, limited responsibilities

and a lack of long-term career opportunities.

A successful internship consists of:

 A part or full-time work schedule that includes not more than 25% or

clerical or administrative duties.

 Provides a clear job/project description for the work experience.

 Orients the student to the organization, its culture and proposed work

assignments.

 Help the student develop and achieve learning goals.

 Offers regular feedback to the student inter.

An internship consists of an exchange of service for experience

between the intern and the organization. Internship is used to

determine whether the intern still has an interest in the field after the

real life experience.

5
METHODOLOGY

The methodology applied in this internship is divided into two parts. They are

methodology for research projects and methodology for personal project. It

means they were two project should be done in this internship. Each project

has different tasks and purposes, but the main aim is still correlated. This is a

study based on primary and secondary data. Primary data were collected

through interaction with the secretary, staff and members of the society. The

secondary data were collected from books, byelaw and audit report of the

Vendar service co-operative bank Ltd no: 236

6
 CHAPTER -2

OVERVIEW OF THE
CO-OPERATIVE INSTITUTION

7
 INSTITUTIONAL PROFILE

PROFILE OF VENDAR SERVICE CO-OPERATIVE BANK

[Link].236

Name : Vendar Service Co-operative Bank,

Ltd No: 236

Address : Vendar Service Co-operative Bank,

Ltd No:236,Vendar Po Kottarakkara Kollam

Head office : Vendar

Branch : Kottathala

Date of registration : 17-10-1921

Date of functioning : 06-11-1921

Area of operation : Kottathala, Vendar

Class : 2

Audit classification : C

Liability : Limited

Number of members : 9615

Number of board members : 11

Total deposits : 161333592.38

Total loans : 122610355

Total working capital : 177568248.67

IMBP : 10 Lakhs

MBP : 150 times of paid up share capitals

Audit : Group Concurrent Audit

Number of employees : 9

8
HISTORY OF THE BANK

Vendar Service Co-operative Bank Ltd No 236 is situated at Vendar,

Kottarakkara Taluk, and Kollam District. The society was registered on 17-10-

1921 and working on 6-11-1921 and it is the head office. The first name was

Vendar Nair service society, the member of the society was only nair

community. Travancore, Cochin and Malabar was the only state for existence

and there was no special co-operative act. The society was registered under

the act of 1914. Gradually performance of the society was improved. The

loan was given to the people under kettuthengusystem the loan repayment

were made out of the selling of coconuts were collected from loans under this

scheme. Apart from this activity there was no other activity in the society. In

1949 Vendar Nair service society was renamed as Vendarservice co-

operative society no 236 as per general body meeting. In 1972 the bank new

Byelaw were approved. A ration shop was allotted under the ownership of the

society. In 1982 the bank was able to acquire its own property and building.

Later the bank started accepting deposit from members and lends loans to its

members. Bank started neethi store in Vendar and Kottathala. The new

branch was started on august 2010 at kottathala. In 2008 the bank was fully

computerised.

The Vendar bank constructed a new and modernised building with all facilities

for its members. It is inaugurated in 16-02-2024 by honourable finance

minister shri. [Link]. The director board and staff are very dedicated.

They are trying to make all citizens attained 18 years as its members and also

9
hard working to connect deposits. New generation technique like RTGS and

NEFT are also available here.

OBJECTIVES OF THE BANK

The main objective of Vendar service co-operative bank, Ltd No: 236 as per

Byelaw is as follows

 To encourage thrift, self-help, service mentality among its members.

 To provide short term and medium term loans to members.

 To provide short term and medium term loans, ordinary loans and

credit, overdraft, purchasing facilities etc. to the members for their

agricultural, non-agricultural and small scale industrial purposes.

 To supply seeds, fertilizer, pesticides and implements for agricultural

purpose.

 Moderation self-reliance and mutual service among members to

encourage the virtues and make plan, importance and propagate them.

 To sell the product and industrial product to the benefits of the member

through marketing societies.

 To arrange and maintain own, or hire go-down for procuring and

storing agricultural producers of members.

 To provide help and assistance to the members for producing new

improved variety of seeds.

 To purchase and keep modern costly agricultural implements with the

aim of giving it to members on hire.

10
  Submit to arbitration any dispute that may or may arise between

members of the group.

 Carry out other non-financialactivities such as food grains, fertilizers,

daily necessitiesetc. are provided to the members.

 To provide facilities to the members individually or group for producing

fertilizer insecticides, pesticides with in the area of operation of the

society.

 To act as an agent and change price on the scale of seeds,

fertilizers,agricultural implements etc.

AREA OF OPERATION

 The area of operation of the bank has extended to the whole ward of

the Kottathala and Vendar.

 The branches of Vendar service co-operative bank, Ltd No:236 is

situated in kottathala

 Taluk is kottarakkara.

LIABILITY

As per section 5 of KCS Act, societies with limited liability can be registered,

so the liability of the bank is limited.

11
CLASSIFICATION OF BANK

 As per the classification, Vendar service co-operative society is class

second in general classification. Bank is in “C” grade status of audit

classification.

 Audit is special concurrent audit.

 The bank is a type of business organization that is classified based on

Co-operative principles and structure.

MEMBERSHIP

Member means a person joining in the application for the registration of a co-

operative society or a person admitted to membership after such registration

on accordance with this Act ,the rule and the byelaw.

PROCEDURE FOR GRANTING MEMBERSHIP

Membership in Vendar service co-operative bank is open to all people

residing within the area of operation or occupying land in the area of operation

of bank. Any person fulfilling the conditions and also laid down in the Act, Rule

and Byelaws of the society will apply for membership. A decision of an

application for membership should be taken by the managing committee of

the society within two months from the date of receipt of the application. A

member get the rights of membership only after paying the admission fees,

subscription to share capital and other payments required to be made under

the byelaw of

12
the society. Membership is open to all peoples who need membership in the

society. There are A class, B class, C class membership in bank.

A class membership

 The society admits and person as a member who has attain to the age

of 18 years having sound mind residing in the area of operation of the

 society or is in occupation land of in the area of operation of the

society.

 A class members are the ordinary members of the society and they

have voting right and their value of share is Rs 20 not pay more than

Rs 50 to each share

B Class membership

 The b class membership is issued to the government/ panchayath

 Value of the share is Rs.10

C Class membership

 The C class me membership is issued to the nominal or associate

members.
 The value of the share is Rs.10.

13
The table and chart showing the variations of numbers in the society from the

year

YEAR MEMBERSHIP

2021-2022 9497

2022-2023 9378

2023-2024 9615

MEMBERSHIP
YEAR
2021--2022
2022--2023
2023--2024

SOURCE OF FUND

 Share
 Loans and deposits
 Contributions
 Special receipts /income
 Undistributed profits
 Reserve and other funds approve by Registrar

SHARE CAPITAL

The share capital of the bank is Rs.6100000 comprising of one lakh

lakhs A class
share of Rs.50 each 2000 B class share of Rs.500 each and 10000 C class
share of Rs.10 each. Class C share can be issued for taking gold loan from
the bank, subscribing to chitty (GDCS) and standing as security.

Any person should have taken at lealeast

st one share in the resolution as a
member of the group but no person take up shares for an amount in excess of
what is provided in the Act.

14
Share can be transferred only after a minimum 3 years have passed since the
acquition. Share cannot be transferred without the prior approval of the board
of directors.

At the end of the financial year 2022-23 they were 9615 members and the
share capital of Rs.5212727. At the end of the financial year 2023-24 they
were 9497 members and share capital has increased to Rs.6223682.

Table shows the share capital of the society.

YEARS SHARE CAPITAL

2021-2022 5161327

2022-2023 5212727

2023-2024 6223682

7000000

6000000

5000000

4000000 Column3
3000000 Column2
Column1
2000000

1000000

0
YEARS 2021-2022 2022-2023 2023-2024

VISION

The major function of Co-operative bank is to provide service to normal

people and help in improving the standard of living. The main objective is to
expect deposit and provide loan to members. The vision of the bank is to

15
become first in customers satisfaction. The adoption of all modern
technologies for better fast and secured service will be priority of the bank in
future and by providing valuables service to its customer.

MISSION

The main aim is to attain the goal is service motive. The aim is to provide loan
and accept deposit from members. To make the world better place to live by
Co-operation. The main peculiarity is providing loan in a small locality only
and their improvement.

CORE VALUES

● Integrity
● Fairness
● Courtesy
● Commitment
● Insight and spirit
● Enthusiasm for work
● Business ethics

BOARD OF DIRECTORS

 Board of director is the committee responsible for the proper

functioning of the group.
 The board of director shall contain 11 members out of which 6
members shall be from the general. Consistency and 1 member shall
have a deposit of less than 10000 in the bank. 3 members will be from
women category and 1 member will be from SC/ST category.
 The member of the board of director shall serve without remuneration
provided that the fee may be paid subject to the order issued by the
registrar of co-operative society from time to time. The president may
draw in honorium at such rate as may fix by the Registrar of Co-
operative society.
 The board of director shall consist of members elected in accordance
with Byelaw 27(a) and nomine of Deputy Registrar. The ultimate
authority vests with a general body.

16
MANAGING COMMITTEE MEMBERS
1. JAYAKUMAR. A (PRESIDENT)
2. SAJIMON. N
3. SURESHKUMAR. K
4. BIJUKUMAR.S
5. JAYAKUMAR. J
6. JESSY. V. R
7. RAJESHKUMAR. A
8. ANITHA LALU
9. GIRIJADEVI. D
10. SASIKALA. V

RECORDS MAINTAINED BY THE SOCIETIES

 Admission register
 Day book
 General ledger
 Cash book
 Saving account register
 Land register
 Attendance register
 Stock register
 Voucher file
 Service book
 FD register
 Register of monthly receipt and disbursement
 Register of dividend
 Minutes book
 Purchase book
 Notice book
 GDCS register
 Coin bar register

17
ACTIVITIES AND SERVICES

 Deposits

 Loans

 GDCS

 Fertilizer depot

 Safe deposit locker facilities

 Neethi medicals

 Neethi store

 School store

PROCESS AND PROCEDURE

The main services provided by Vendar Service Co-operative Bank are the
following:
• Deposits
• Loans and Advances
• Group Deposit and Credit Scheme (GDCS)
• Other activities

DEPOSITS
The primary function of a bank is to accept deposit and lending money. They
borrowmoney by accepting deposits from the public including members and
non-members ofthe bank. A deposit is a financial term that means money held
at a bank. A deposit is atransaction involving a transfer of money to another
party for safe keeping. Deposits areregarded as the life blood of banking
Business. The deposits mobilized by the bank fromitscustomers forms part of
its total borrowed Fund. The co-operative bank offers variestypes of deposit
facilities. They are:
• Saving bank deposit
• Current deposit

18
• Fixed deposit
• Recurring deposit
• Soubhaghya deposit
• Home safe deposit
• Unemployment account deposit

Saving Bank Deposit

A saving bank deposit is a moderate interest- bearing deposit account held at
bank of financial institutions. This account is meant to promote the habit of
thrift and saving among members. This account encourages small savings
and tries to improve saving habit in among the general public. Vendar Service
Co-operative Bank provide an interest rate of 4% of all SB Deposit and 4.5%
for senior citizens.
The table showing saving bank deposit amount from 2021 – 2024:

YEAR SAVING DEPOSIT

2021-2022 21595489

2022-2023 17543787

2023-2024 21467665.61

25000000

20000000

15000000

10000000

5000000

0
YEAR 2021-2022 2022-2023 2023-2024

19
Current Deposit

Current deposit means a form of non-interest bearing demand deposit where

from withdrawals Are allowed, any number of times depending upon the
balance in the account or up to a particular agreed amount and will also
include other deposit accounts which are neither savings deposits nor term
deposits .
The table showing current deposit amount from 2021 – 2024:

YEAR CURRENT DEPOSIT

2021-2022 89456

2022-2023 50567

2023-2024 9818.02

100000
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
YEAR 2021-2022 2022-2023 2023-2024

Fixed Deposit
A fixed amount of money deposited for a fixed period of time is known as fixed
deposit since these deposits are repayable only after the expiry of a specific
period. The depositor gets a fixed deposit receipt on opening of fixed deposit
account. The present interest rate of FD in this society is 8.25%

20
Table shows the fixed deposit in the year 2021-2024

YEAR FIXED DEPOSIT

2021-2022 11785684

2022-2023 15678450

2023-2024 13453217

18000000
16000000
14000000
12000000
10000000
80000000
60000000
40000000
20000000
0
YEAR 2021-2022 2022-2023 2023-2024

Recurring Deposit
Recurring deposit is a unique term deposits. RD are those deposits in which
the depositor deposits a fixed sum of money every month for an agreed
period. The interest rate is calculated at 8.75% per annum. Cheque facility is
not allowed in this deposit. The minimum time period is one year and
maximum time period is 72 month. Recurring deposit is also called cumulative
deposit.

YEAR RECURRING
2021-2022 3467881
2022-2023 2575675
2023-2024 1639450

21
Soubhagya Deposit

It is a long term deposit for a period of 1 year. The amount will be doubled
after maturity period. The rate of interest of these deposits is 8.25%. It is a
compound scheme.

Home Safe Deposit

Home safe deposits include a box that is provided by the bank to the
customer. The customers can look their small savings in the box. This
scheme is mending for lower income groups. Minimum of Rs.100 should be
deposited for opening a home safe deposit. The interest rate of Home safe
deposit is 5%.

Unemployment Account Deposit

Unemployment account is a type of account which was maintained by the
Vendar service co-operative Bank. This account is mainly open for the
‘Thozhilurappu’ persons.

The minimum amount for opening this account is 100. The interest rate
for this accountis as same as the saving bank account that is 4%. At present,
the unemployment accountis not maintained in the Vendar Service Co-
operative Bank.

22
DISBURSEMENT OF DEPOSIT DURING THE YEAR 2023
2023-2024
2024

Type of deposit Amount of deposit received in

the year 2023-2024
137573162
Fixed deposit
Saving bank deposit 21467665.61

Recurring deposit 1639450

Current deposit 9818.02

DISBURSEMENT OF DEPOSIT DURING THE YEAR 2023

2023-2024

FIXED DEPOSIT
SAVING BANK DEPOSIT
RECURING DEPOSIT
CURRENT DEPOSIT

LOANS AND ADVANCES

Any amount borrowed or lend is called loan. Since loans and advances are
being regarded as tthe
he main sources of income. The bank is compelled to
deposit its resources in an effective manner. Loan is a method of lending
under which bank gives credit to a borrower for a fixed period and For a
specific purpose. This bank issue the following types of loan to its members.
They are:
• Deposit loan
• Gold loan

23
• Housing and House maintenance loan
• Agricultural loan
• Muttathemulla
• Self Help Group loan (SHG)
• Daily collection loan
Kisan credit card

DOCUMENTS NEEDED FOR SANCTIONING A LOAN

Following documents are required for sanctioning a loan in Vendar service co-
operative bank are
● Application form
● Title deed of the property
● Previous Documents of the property
● Possession certificate from the village office
● Income certificate
● Location and sketch of the property
● Recent tax receipt
● Encumbrance certificate for the past 14 years
● Gahan
● Copy of Aadhar
● Copy of ration card
● Copy of PAN card
● Recent passport size photo
● Signature

SECURITY FOR LOANS

An asset that is put up to guarantee a loan. If the loan is not repaid, the lender
may sell the asset to get its money back to .Various securities that are used to
get a loan are:
• Gold and other valuable ornaments

24
• Properties
• With the surety of another person
• when the landed property offered as security by the member is not sufficient
for the loan applied for by him, house property, commanding rental value may
be accepted as additional security subject to such conditions as the Registrar
may prescribe

MODE OF REPAYMENT
A member who has taken a loan shall repay the amount together with the
interest due there on either by equal or equated monthly/quarterly/half
yearly/annual instalments as fixed by the Bank from time to time. Nothing
however shall prevent or debar a member from repaying at any time a larger
sum than the annual instalment or from discharging the whole in a single
payment

PROCEDURE FOR SANCTIONING LOAN

A member has to apply in the prescribed form for availing a Loan from the
society in the application form. He has to furnish him name,Address,
membership number and purpose and the period of loan, extent Of land
owned or possessed, method of cultivation, the society offered Along with the
declaration properly signed on receipt of the application Form. The secretary
shall scrutinize the proposal after verifying the Following particulars:
▪ Loan eligibility of the member
▪ Actual requirements
▪ Genuiness of purpose
▪ Period of loans
▪ Repaying capacity of member
▪ Credit worthiness of members
▪ Security offered
▪ Whether the applicant is a defaulter of any previous loan
▪ Correctness of the details
▪ Application is properly filled or not
▪ Repayment character of previous loans if any
In the case of mortgage or immovable property, a legal verification of the Title
deed and encumbrance certificate is inevitable to clear the legal title

25
Deposit Loan
Loan against FD is a type of secured loan where customers can pledge there
fixed depositas Security and get a loan in return. The amount of loan depends
upon the fixed depositamount.
Gold Loan
A gold loan is a secured loan where in the borrower keeps there gold ranging
up to
5lakh. Interest rate is provided at 7.5%

Housing And House Maintenance Loan

A housing and house maintenance loan is a secured loan that is obtained to
purchase aproperty by offering it as collateral. Home loans offer high value
funding all economicalinterest rates and For loan tenors. They repaid EMIs.
After repayment, the properties titleis transferred back to the Borrower.
Agricultural Loan
Agricultural loans are classified into short term and medium term. This
scheme meetsthe financial requirement of farmers at various stages of
farming. This scheme aims atproviding adequate and timely credit support to
meet the short term credit requirementsfor cultivation of Crops. Farmers may
use them to readly purchase agricultural inputssuch as seeds, fertilizers,
pesticides etc… Medium term loans are provided by thediary/poultry farmers.
Muttathemulla
A rural micro finance scheme was started on the instructions of the
Government of Kerala to Protect the common man from exploitation by
interest bearers and micro finance companies in rural areas. An amount of 3.6
crores has been distributed to 12 selected Kudumbashree unit. Interest rate of
one Kudumbashree unit is 9%.

Self Help Group (SHG) Loan

Kudumbashree SHGs, which are effective in the wards of the bank, have
openedaccounts in our bank. Loans are also sanctioned on the basis of the
banks assessmentof the activities Of the group. Kudumbashree groups are
currently being paid up Rs. 5 lakhat 9% interest.

26
Daily collection Loan
Daily collection loans at special interest rates to meet quick cash needs and
can berepaid in Comfortable instalments. The loan is provided on surety of
two persons. Thistype of loan is Mainly based on business persons.

TYPES OF LOAN AMOUNT

AGRICULTURAL LOAN 312000

NON-AGRICULTURAL LOAN 552000

GOLD LOAN 944000

DAILY COLLECTION LOAN 440000

KUDUMBASREE LOAN 491000

MUTTATHE MULLA 540000

1000000
900000
800000
700000
600000
500000
400000
300000
200000
100000
0

27
GROUP DEPOSIT AND CREDIT SCHEME (GDCS)
GDCS or Chits funds are a unique combination of saving cum loan
investment. Moreover, there is no Interest charged on borrowings. The person
can borrow any timeand for any purpose. A group of people pool in a fixed
sum of money every month.

OTHER ACTIVITIES
I. Fertilizer depot
II. Neethi medicals
III. School shop
IV. Seasonal market
V. Safe deposit locker

FERTILIZER DEPOT

There is a fertilizer depot for the bank. A fertilizer depot is working under the

control of Vendar service Co-operative bank. All types of fertilizers are

available according to the need of the farmers. The farmers get fertilizers at

the lowest rate than the market price.

NEETHI MEDICAL STORE

The Vendar service co-operative bank has started the Neethi medical store in

Kottathala junction. Neethi medical is very useful to the members as well as

the public in getting consumer goods at reasonable price.

SAFE DEPOSIT LOCKER

Locker facility is available in the headoffice. It is very helpful for the customers

of the bank. Yearly the rent for the locker is Rs.10000 and security of 1500.

The security amount will repay the customer with interest when the time of

vacation. The locker facility available for member and non-members and they

can keep their valuables under safe custody, without any fear of theft.

28
NEETHI STORE AND SCHOOL SHOP

Neethi store and school shop are associated to the bank building. These
activities are very useful to the members as well as the public in getting
consumer goods at reasonable.

PROFIT/LOSS

Profit or loss is the working result of an institution. Profit is excess of income

Over expenditure and Loss is the excess of expense.

The table showing net profit/loss of the Vendar service co-operative bank of 3
years is given below .

YEAR NETPROFIT/LOSS

2021-2022 -8282107.25

2022-2023 -6027680.80

2023-2024 -7462345

0
2021-2022 2022-2023 2023-2024
-1000000

-2000000

-3000000

-4000000

-5000000

-6000000

-7000000

-8000000

29
STAFF PATTERN

SECRETARY

ACCOUNTANT

SENIOR CLERK

JUNIOR CLERK

ATTENDER

PEON

30