s

Internship report on
A STUDY OF AGRICULTURE LOAN AT PANCHAGANGA
FARMERS
SERVICE COOPERATIVE SOCIETY LTD. HEMMADY

SUBMITED BY
SAKSHATH S SHETTY
P19NX21M0013

In partial fulfilment of the requirements for the award of degree in

MASTERS OF BUSSINESS ADMINISTRATION
Under the guidance of

INTERNAL GUIDE EXTERNAL

GUIDE
 CHAPTER 1

Introduction
I did my internship at Panchaganga Farmers Service Cooperative Society Hemmady, with
the help of my internal guide Mrs Shilpa and external guide Mr
The project internship has taken 4 weeks from

This internship gave me an opportunity to help and work in the society’s operations. It is
an
Opportunity to every student to improve their knowledge in the work environment. Here
we try to convert, what we have obtained theoretical knowledge from the college to
practical
Knowledge in the work place.

The study has been conducted by collecting relevant primary and secondary data. The
report
Prepared there on and presented here is divided in to five parts.

During the first two weeks I understood the banks profile, structures, functions, services,
and
Area of operations.

During the third week data was collected and it was to be edited, coded and tabulated. During
the fourth week data was analysed and conducted and the project was finalized and
submitted.

2
 Table of Content

Chapter Title Page

no no
1 Introduction

Industry profile
I. Back ground
II. Nature of Business
III. Vision Mission and Quality policy

IV. Service profile

V. Ownership pattern

Table of Content
1.Introduction
Agriculture
Agriculture is the backbone of the Indian economy. It is the largest industry of
the country. In India 70% of workforce still engaged in Agriculture and allied activities.
In 1990s Agriculture is the main source of supply and support for Indian transport.

The agriculture is the main source of raw material for leading industries. It is
largely stands for prosperity of our country. The agriculture gone through the various
stages like Green, Yellow, and White revolution to floriculture. The drastic changes
take place from independence to today.

Role of Agriculture in India

 Agriculture sector is more important for the development of the Indian economy.
 Since farming is less a business than a traditional in India. Even at this stage about
80% population lives in rural areas, directly or indirectly depends on Agriculture
for its live hood.
 About 85cores of persons which are further multiplying at the rate of 2.5% per
annum depends on Agriculture sector.
 Most of our traditional industries depends on the our bluk or foreign earnings
draw their raw material from this sector.
 The surplus generated by this sector would help Indian economy to reach the
“Golden stage”.
 The share of Agriculture in national income plays curical indicator in the
economic development of country.
 It supplied the necessities of life today Agriculture is feeding about 100 million
people food production crossed mark of 200million tones in 1999-2000.
 Agriculture has greater role in economic development in the less developed
countries as it provides livehood to a vast majority of people living in the country.
 It provides offers enoous scope of alternative employment.
 Agriculture exports constitute a major portion of India’s export’s and accounted
for 50% of the export at present.
 Agriculture

Food National Income Industry Foreign Exchange

Employment Trade Rural Development

Vocation

Figure: Contribution of agriculture in different sector

The rural area become more and more independent on the moneylender. It was
necessary to relive the poor farmer from the clutches of village moneylender and stop
their exploitation after many days the financial institution are introduced like
government, commercial, private and co-operative socities and introduced and they act
as a financial support to the farmers to Agriculture production.

Today the agriculture has boom all over the world.

Introduction to financial sector in India

After the globalized economical process, lot of growth opportunities

incorporated in service sector. Hospitality, Entertainment, Tourisum, Banking
Insurance and Finance sectors grown up fastly not only in terms of employments but
also started offering various products and services to customers. Among the above-
mentioned service sectors the banking and finance sector is proved to essential
component of consumer’s life so far as financial need are concerned.

Now-a-days the consumers are concerned about financial products in terms of

personal loans, educational loans, and Agricultural loans. Being a student of financial
management, I have decided to study the agricultural loans as a financial product.
 History of Agriculture

 10,000 years ago, the man invented agriculture

 A primitive form of agriculture was shifting cultivation of crop
 After few years when these plots lost fertility and heavily infected with grass and soil
born pests, the cultivator would shift to new site.
 It is backbone of Indian economy.

Agriculture in India
 Agriculture is prime source of live hood of most of the population in India.
 It provides food for population and raw materials to various industry.
 60% of the Indian population is engaged in agriculture and agro -based industries.
 At present it occupied 35% shares of the Indian economy.
 India is exporting fruits, tea, coffee, basmati rice and also many other agriculture
commodities, which help to get foreign exchange.
 India is the only country having all types of soil and climatic conditions suitable for
growing variety of crops.
2. Industry profile

The cooperative moment in India owes its origin to agriculture and allied sectors. It was
started in the year 1904 as a credit moment and now was it is seen that almost all
economic activities are undertaken by the cooperatives.

Cooperative is a form of organisation were in person, voluntary associates together as

human beings on the basis of equity for the promotion or furtherance of their common
economic interests. It is a self-help through mutual help. The philosophy behind
cooperative movement is “All for each and each for all.”

In order to cover Cooperative Society with membership from more than one
providence, the Government of India enacted the Multi-Unit Cooperative Society Act,
1942. This Act was an enabling legislative instrument dealing with incorporation and
winding up of cooperative societies having jurisdiction in more than one provience.
With the emergence of national federations of cooperative societies in various
functional areas and to obviate the plethrona of different laws governing the same type
of societies, a need was felt for a comprehensive Central legislation to consolidate the
laws governing such cooperative societies. Therefore, the Multi-State Cooperative
Societies Act,1984 was enached by Parliament under Entery No 44 of the Union List of
the Constitution of India.

After India attained Independence in August,1947, cooperatives assumed a great

significance in poverty removal and faster socio-economic growth. With the advent of
the planning process, cooperative became an integral part of the Five Years Plans. As a
result, they emerged as a distinct segment in our national economy. In the First Five-
year plan, it was specifically stated that the success of the Plan would be judged, among
other things, by the extent it was implemented through cooperative organizations.

The All-India Rural Credit Survey Committee Report, 1954 recommended an

integrated approach to cooperative credit and emphasized the need for viable credit
cooperative societies by expanding their area of operation, encouraging rural savings
and diversifying business. The Committee also recommended for the Government
participation in the share capital of the cooperative.
In view of these recommendations, different States drew up various schemes for the
cooperative movement for the organizing large-size societies and provision of State
partnership and assistance. During 1960s, further efforts were made to consolable the
cooperative Societies by their re-organization. Consequently, the number of primary
agricultural cooperative credit societies was reduced.

Highlights and Milestones

1. The Cooperatives were first started in Europe to serve the credit starved people in
Europe as a self-reliant, self-managed people movement with no role for the
Government.

2. British India replicated the Raiffeisen-type cooperative movement in India to

mitigate the miseries of the poor farmers, particularly harassment by moneylenders.

3. The first credit cooperative society was formed in Banking in the year 1903 with the
support of the Government of Bengal. It was registerd under the Friendly Societies Act
of the British Government.

4. Cooperative Credit Societies Act of the India was enacted on 25th March 1904.

5. Cooperative became a State subjected in 1919, 501 Centeral Cooperative Unions

were renamed as Central Cooperative Banks.

6. Land Mortgage Cooperative Banks were established in 1938 to provide loans

initially for debt relief and land improvement.

7. Cooperatives have played an important role in the liberation and development of our
country.

8. The word Cooperative has become synonymous for dedicated and efficient
management of rural credit system.

9. Reserve Bank of India started refinancing cooperatives for Seasonal Agriculture

Operations from 1939.
10. From 1948, Reserve Bank started refinancing State Cooperative Banks for meeting
the credit needs of Central Cooperative Banks and through them the Primary
Agricultural Cooperative Societies.

11. Only 3% of rural familes availed farm credit in 1951.

12. In 1954, the All-India Rural Credit Survey Committee recommended strengthening
of DCC Banks and PACS with State partnership and patronage to solve the farmers’
financial requirements.

13.Register of Cooperative Societies became the custodian of Cooperative from 1962

with the enactment of respective State Acts.

14.Reserve Bank introduced Seasonality and scale of Finance for crop loans and
provided for conversion, re- phasement and re-schedulement to tide over crop loss due
to clamities.

15 The Primary Agricultural Cooperative Socities became multi-purpose.

16.Reorganisation of PACS into viable units, FSCS, LAMPS started under action
programe of RBI in 1994.

17. The finding of All India Rural Credit Review Committee that coverage of
cooperative is limited

18. The establishment of Regional Rural Banks from 1975 has not reduced the problem
of rural creadit as they rechead only 6% of the farmers.

19. Cooperatives have contributed their part in the implementation of 20-point

programes and Integrated Rural Development Programme.

20.Though the the Cooperatives were lagging behind in rural credit till 1991, they
regained their prime place with 62% share in rural crop loans between 1991 and 2001.

21. In 2015, the United Nations included cooperative enterprises in its Sustainable
Development Goals, recognizing their contribution to sustainable development, poverty
reduction, and economic growth
Theoretical background of the study:
1.Agriculture
Agriculture is most important enterprise in India. It is a very broad term
comprising all aspect of production It provides food for population fodder for livestock
& fulfill needs like fiber, Fuel, timbre, wood & Raw Material to various industries.

2) Agricultural Finance
The funds are required for the agriculture & for its allied activities. it provides financial
assistance to various purposes or agriculture operation for short & medium periods like
minor Irrigation, Land Development, soil conservation, Farm mechanization,
Horticulture, cold Storage & other Allied activities. Plantation &

3) Direct Agriculture loans

It means short term production & investment loans provided directly to farmers for
agriculture purposes. This would also include such loans provided directly to farmers
for agriculture Purposes.

4) Need of agriculture finance

2/3rd population depends on agriculture. Low growth in agriculture output results in
rise in food prices. Majority of the poor are farmers, a labor& casual labortherefore for
reduction ultimately & elimination of poverty. Agriculture has a significant share in
GDP. If GDP is low then overall GDP is fall down.

5) Agricultural Finance
Since independence India has made substantial progress in respect of agricultural
finance. The reports of all India Rural Credit Survey Committee and All India Rural
Credit Review Show That farmers were entirely dependent sources of credit. Money
Enders are main sources of credit. They were most convenient and easiest source. his
administration as simple and flexible. The Indian government launched the three-tier
banking structure in India. At the apex is NABARD at the middle level are the urban
co-operative banks (UCBS) and a few public sector banks (PSBS); and at the base are
Primary Agriculture credit societies (PACS).
• NABARD
• UCB PSBs
• PACS
6) Finance in villages is of two types
1. Agricultural finance (credit)
2. Non Agricultural finance

1)Agricultural credit is of two types

1. Production credit
2. Consumption credit

PRODUCTION CREDIT
a. Short term:
Loans for 15to 18 months.
Loans for meet daily working requirements

Cash components
Kind component: co-operative marketing societies.
b. Medium term
Loans for 15months to 5 years.

NABARD gives loan for 1 to 7 years.

• Creating capital asset
Purchase livestock, machinery, equipment

C. LONG TERM
5-7 YEARS
Land fencing mechanization construction of farm house, storage facilities

2) CONSUMPTION CREDIT
It is basically for survival of farm families.
Sources of agricultural credit

A) Co-operative credit
Primary co-operative credit short term
• Co-operative land development bank: medium term

B) RBI
THE National agree credit fund(long term & stabilization RBI guidelines
• Margin and Security
Credit norms finance: cash to kind proportion.
Recovery are default

C) SBI
IT provides financial assistance to marketing.

D) Commercial Banks
Direct finance is granted for agricultural operation for short period.

E) Agricultural refinance
Co-ordinate, guide and assist long term finance.
Help in reduction of regional imbalances.
Reduce regional disparities.

F) RRB
Rural based
Cater to need back word areas
Authorized capital structure: Rs. 1 crore
G) NABARD
(National bank for Agriculture and Rural development)
Serve as a an apex refinancing agency.
Co-ordination the rural financing activity.
Monitoring and evaluation of projects refinanced by it.

H) Government finance
To assist farmers overcome emergencies.
Land Improvement loans Act 1883- Long term.s
• Agriculturist loans Act 1884- short term.
.
 Chapter
Organization proflle
.Organization profile
Name of the Firm : Panchaganga Farmers Service Cooperative Society Ltd,
Hemmady

Registration Number : DRG/2599

Head Office : Car Street, Hemmady -576230 Kumdapur Taluk Udupi,

Telephone-08254-278083,

Branch Offices : Tallur, Kundabarandadi, Hosadu,

Working Places : 16 Revenue villages.

Selling Depose : Hemmady, Devalkund, Tallur, Uppinakidru,

Hattiyangadi,

Kenchanur, Kundabarandadi, Hakladi, Senapura, Hosadu,

Movadi, Kanchugodu, Gujjady, Trasi

Present Management of the society

Serial Name of The Designation

Members
1. Santosh Kumar President
Shetty
2. Chandra Naik Vice President
3. Suresh A Poojary C.E. O
4. S Raju Poojary Bank
Representative
5. Sandeep Kumar Cluster supervisor
Shetty
6. H. Rajee via Director
Devadiga
7. Anthony Lewis Director
8. Anand. P. H Director
9. Ananth Movadi Director
10. Sharath Kumar Director
Shetty
11. Santhoshkummar Director
Shetty
2.1 Background

The Panchaganga farmers’ cooperative society was established in the year 1973,
According to the cooperative societies Act 1969 (section 98). The main objectives of
the bank is to developing the savings habits among the members and guiding them in
update technologies of the modern agricultural techniques. It has it working in 16
village – Hemmady, Tallur, Uppinakudru, Hattiyangadi, Kanyana, Kanchugodu,
Devalkunda, Katbelthur, Noojady, Kundabarandadi, Haklady, Senapura, Hosadu,
Gujjady, Trasi and Gangolli.

Year 2018 2019 2020 2021 2022

A class 12143 12166 8763 9097 9359

member

Share 211.54 231.94 255.75 284.11 289.86

capital

Funds 159.91 193.76 241.77 278.44 362.78

Deposit 3803.2 4247.0 5031.2 5444.5 6025.8

7 5 1 4 6
 Yearly 24866. 28287. 32719. 37372. 42161.
transacti 44 98 08 65 16
on

Working 6651.8 7426.1 8580.1 9816.7 9278.2

capital 8 5 3 8 4

Loans 4561.5 5151.3 6110.2 6481.5 6777.0

Landed 0 8 8 9

Loans 4354.9 4946.3 5860.3 6624.7 6976.5

Outstand 5 6 3 8 5
ing

Recover 95.04 95.25 94.19 94.24 93.17

y%

Net 75.97 86.23 85.28 103.35 108.12

profit

Panchaganga Farmers Service Cooperative Society Ltd Hemmady

Banks Yearly development statistics (Rs in. Lakhs)

Objectives OF the Society

1) To promote savings habit among the members by limiting their expenses and guide

them to invest the savings in profitable areas.

2) To give knowledge about the modern agriculture techniques and equipments.

3) To give small medium- and long-term loans to members and special perferance is

given to small and micro scale agriculturist.

4) To provide agriculture, materials like seeds fertilizers, chemicals, medicines, and

technologyically updated machinery.

5) To provide water facilities by providing financial assistance to install new machines

and pipe line

6) To give marketing assistance to members in order to promote products they cultivated.

7) To increase revenue of members by giving loans to start foul try farm, artisan

products, homemade products etc.

8) To give financial assistance in the form of tractor, power tiller, sprayers, pumps-sets,

of their own or form other organizations for hire.

9) To give storage facilities to crops raised by formers.

10) To provide loans on gold and other mortages.

11) To accept deposits from members and lend loans on security.

12) To accept cheques, draft, bills, dividend, warrants and non-negotiable instruments.

13) To provide financial assistance to unemployed youths to start business.

14) To provide safe locker facilitates to its customers.

15) To give financial assistance to purchase motor cycles, machinaries etc,

16) To give education loan to members and children of members.

 2.2 Nature of Business

1. Legal status:
This society is a body corporate registerd under the applicable state Act with perpetual
succession having a common seal. It can acquire, hold and dispose of properties, enter
into contracts and it can sue and it can be sued.

2. Voluntary association:
Co-operative societies are essentially an organizational or an association of persons
who have come together for the common purpose of economic development or for
mutual help.

3. Self – help and mutual help:

This Co-operative societies office bearers/executive committee is elected as per
democratic election procedure. The Co-operative Sociert function under the principle of
self help and mutual help which means each will help for themselves and will help
other.

4. Democratic controls:
The control of this Co-operative enterprise in not in the hands of capitals who can
corner the share capital and control the interest in any undertaking which would be a
private undertaking.

5. Equallity:
In this society, the principle of “One man one vote” is provided in the statute so as to
ensure that the capital does not dominate the admistration of Co-operative Society.

6. Opean Membership:

Any person can aply for membership of the society without any discrimination. The
membership is opean for all.
7. Social approach:

As the Society is working on democratic principle and the office bearers of the society
will be functioning like a trustee for the better management of the society and there are
no separate benefits to the executive committee members. Service is the main motto
and the profit is not the main concern in co-operative societies.

8. Profits and returns to the members:

The cooperative Society is an association of members and certain percentage profits

earned by the society, as decided in meeting of the Genral body will be distributed in
the form of dividend to members.

9. Limited interest on share:

Irrespective of the shareholding, each member has only one vote in the decision-making
in the Genaral body meeting or at the time of election of the committee for
management. The shares are not traded in the stock exchange. The State Co-operative
Act also prescribes the maximum amount, which a member can hold as a share capital
in any society.

10. Personal participation:

The shareholders have to personally attend the meeting or for voting. They are not
allowed to appoint proxies for attending the general body or for voting in the resolution
to be passed.

11. Educations and co-operation:

Every society has to contribute towards the education fund maintained and looked
after by the district co-operative educational Board as per the notification issued from
time to time for educating the members or the office bearers of the society.

12. Co-operation amongst co-operative Institution:

The funds generated or mobilized through the co-operative societies have to be

deposited or invested in the Co-operative Sector only.
 Act and Rules Applicable

Panchaganga Formers Service Co-operative Society Ltd functions as per the provisions
of

1. Co-operative Societies Act

We have number of Co-operative Societies Acts functional in different states like –

Maharastra Co-operative Societies Act 1960, - Pondicherry Co-operative Societies
1972, Karnataka Co-operative Societies Act 1959, Delhi Co-operative Society Act
1972, Kerala Co-operative Societies Act etc. When the area of operation is restricted to
one state, the State Co-operative Act and Rules, under which the society is registered
will be applicable.

In a particular state, if Co-operative Act and rules is not enacted, the Central Act which
is known as The Co-operative Act, 1912 and its rules will be applicable.

When the area of operation of Society is spread in two or more states. The Multi-State
Co-operative Societies Act, 2002 and its rules shall be applicable.

2. Co-operative Societies Rules A set of rules is also framed under the respective state Co-
operative Act for procedural aspects.

3. Bye-laws Each society also registered with the bye-laws for internal management of the
societies duly approved by the register at the time of registration of the society. They
bye laws of society constitute a contract between a member and the society and it
provide for the management of the society. The bye laws are farmed within the
provisions of the Act and the rules made there under.

4. Notification and Orders issued from time to time by the government, or any other
Authority as prescribed under the Act, Rules there under.
2.3 Vision, Mission, and Quality policy

Vision
To encourage, thrift self- helped and co-operation among the members and deposit of
the bank. To open branches sub branches offices etc. in whatever name called the area
of operation of the bank with the prior permission of the Registrar and the Reserve
Bank of India and to frame rules or their working. To create funds and to be utilized for
the promotion of Education, Housing and other sectors development under the rules
framed by the Board.

Mission
They aspire to fulfil their customers needs for the best services, time value, satisfactory
interest rates, etc. Earning the administration of all their customers and delighting them
by providing honestly service. Attracting customers by discipline office and customers
friendly services.

Quality policy
We are committed for enhancement of co-operative credit structure and ensuring
complete customer delight by offering them trustworthy innovative banking product
and hassle-free financial services in a secured environment, while generating
competitive advantages and continental qualitative improvement with commitment
towards upholding our ethics, good business practices and also comply with legal and
other requirements in our processes and services.
 2.4 Service profile

Deposits

Panchaganga Farmers Service Co-operative society offers three types of deposits

namely savings, fixed and current deposits account to its customers Deposits are the
acceptance of funds / money from the members as well as from non-members i.e, the
genral public. They constitute a very important part of an all-bank business. Most of the
activities of the bank are chiefly dependent upon the deposits. The time range various
deposits accepted extends from 15 days to 10 years. A deposit account is a current
account, savings account or other type of bank account, at a banking institution that
allows money to be deposited and withdrawn by the account holder. These transactions
are recorded on the bank’s books and the resulting balance is recorded as a liablity for
the bank, and represents the amount owned by the bank to customer. Some bank
charges a fee for this service, while others may pay the customer interest on the funds
deposited. The primary Co-operative banks required to obtain the approval of
respective boards for the interest rates that they offer on deposits of maturity of over
one year. The banks are also advised that at any point of time the individual banks have
to adopt uniform rates of interest at all their branches and their customers.

1) Savings deposits account

A saving deposit account is an account provided by a bank for customers

to save moneyand earn interest on the cash held in the account. A saving account can be
used save money for specific expenses or for longer term undefined goals, all while
earning interest in the money in the account.

Some restrictions are imposed on the depositor under this account. For example, he can
withdraw only a specified sum of money in a week. The depositers are given the
cheque facilities to withdraw money from this account. The rate of interest allowed to
this account is rather low it is 4%. This deposit account would encourage small savings
among members.
2) Fixed deposits account
Money in this account is accepted for a fixed period, say one two or five years.
The money so deposited cannot be withdrawn before the expiry of the fixed period. The
rate of interest on this account is higer than that on other accounts. The longer the
period, the higher is the rate of interest. In technical language, this type of deposit is
known as Time or Term deposit. It matures at a definite period of time and entails an
interest penalty if it is withdrawn earlier due to some emergence by the depositor.

Table

Period Rate of Interest

15-45 days 3.5%
46days – 3months 4.0%
3months- 6month 5.0%
6months- 1year 6.5%
1 year above 8.5%
More than 9 years (double)
Senior citizen 0.5% (more)

3) Recurring deposits account

Recurring deposit account is generally opened for a purpose to be served
at a future date. Generally, this account is opened to finance pre-planned future purpose
like, wedding expenses of daughter, purchase costly items like land, car, etc. Recurring
deposit account certain fixed amount is accepted every month for a specific period and
the total amount is repaid with interest.

Loans
In case of loan the Banker advances a lump sum for a certain period at an agreed rate
of interest. The entire amount is paid on an occasion either in cash or by credit in his
current account which he can draw at any time. The interest is charged for the full
amount sanctioned whether he withdraws the money from his account or not. The loan
may be repaid in instalments or at the expiry of a certain period. The loan may be made
with or without security. A loan once repaid in full or in part cannot be withdrawn
again by the customer. In case a borrower wants further loan, he has to arrange for a
fresh loan. Panchaganga farmers cooperative society lends the loan for short-term,
medium-term and long-term to the members. The interest charged by the society are as
follows.
Table

Sl.no Particular Bank to Soceity Loan

society to direct
member from
s members
1) Crop loan 10.3% 12% 12%
2) Medium term loans to 9.1% 12% 12%
agriculture purpose
3) Loans to non agriculture 13% 13% 13%
purpose-NFS
4) Non- agriculture loans 13% 13% 13%
A) Short term laons
 Produce loan 13% 13% Nill
 Other purpose (IST 13% 13% Nill
loans)
 Agriculture land or 13% 13%
rubber plant purchasing
B) Medium term loan
i. Housing loan
Up to 50,000 11.50% 11% 12.50%
50000- 200000 11.50% 12% 13%
Above 200000 12.50% 13% 13.50%
ii. Vehicle loan
Old vehicles 12% 12% 12%
New vehicles 10% 10% 10%
iii. Educational loan 11% 12% 12%
 iv. Other all purpose 13% 13% 13%
(MTN AP/MT others)
v. House/building 12% 13% 13.5%
fledge loan

vi. Employees credit 14%

cooperative societies
vii. Loans to P.A.C.S for 13%
construction of go-don &
office building
5) Cash credit loans (c.c.l)
a) C.C.L(B) necessary 10% - -
things
b) C.C.L(B)other 10%
c) C.C.L-C 10%
d) C.C.L-M 10%
e) C.C.L-J 10%
f) C.C.L-(W) work society 10%
6) Banks loans to nominal
members
a) Jewel loan 12% 10% 10%
b) Loans to salary earners 14%
c) Loans to purchase 14%
consumer durables
d) Loans to self-help group 9% 10.5% 10.5%

Other services
Panchaganga farmer service cooperative society also provide the service of
distributing Ration items which is provided by government. It has 16 selling depose in
near villages.
Ownership pattern
2.SWOT Analysis
SWOT Analysis is simple but effective tool of analysis which helps in policy
formation. It visualizes the future on the basis of present status. The strengths of the
sector the result of successful strategies of the past and the opportunities can be reaped
with blend of new and old strategies. The weaknesses and threats are the hurdles for the
development may be due to past mistakes and newly emerging trends. The present
chapter devotes its attention to the SWOT analysis of Pachanga farmers service
cooperative society ltd hemmed.

Strengths

 Awarded for best customer services

 Good relationship with customer
 Better infrastructure
 Customers and members support the society and in turn society supports them.
 Benefit of local skilled staffs
 Maximum number of SHGs
 High percentage of innovative farmers.

Weaknesses

 More number of competitions

 Less number of branches
 Less number of deposits when compared with other nationalized bank
 Depends on aids from state and central governments

 Political interference in the management of the society.

 Complicated loan procedure
 Opportunities
 Opportunity to give best services
 To increase the number of customers
 Increase numbers of service facilities.
 Diversification of activities
 Up gradation of technology
 Accelerated dissemination of innovative technology through SHGs and KVMs

Threats
 Government regulation
 Regular changes in interest rates
 Poor of advanced technology
 More competition from nationalized banks.
 CHAPTER- 4
DATA ANALYSIS AND INTERPRETATIONS
Gender of the respondents Members of Panchaganga farmer service
cooperative society

GENDER NO OF PERCENTAGE
RESPONDENT

Male 28 70%

Female 12 30%

Total 40 100%

Analysis: In the above table 70% of male 30% is female.9

FEMALE
30%

MALE
FEMALE
MALE
70%

INTERPRETATION
The above chart indicates that male farmers have majority 28 in number at
70%.
The minimum number of female farmers 12 in numbers at 30%.
Age Group

Age Group No of Farmers Percentage

20-40 8 20%
40-60 17 42.5%
60-80 15 37.5%
Total 40 100%

Analysis : In the above table 42.5% are belonged to 40-60 age group

20-40
Years
60-
80Year
s

40-60
Years

INTERPRETATION
The above graph indicates classification of number of farmers in terms of age
group. Maximum number of farmer belong to the age group of 40-60, 17 in members
42.5%. Minimum number of farmer belong to age group 20-40, 8 in members at 20%.
Land holding farmers

Land in acres No of farmers Percentage

Small (less than 1 acres) 19 47.5%
Medium (3-10 acres) 12 30%
Large (more than 10 acres) 9 22.5%
Total 40 100%

Analysis : In the above table 47.5% are belonged to small farmers

Land in acres

Large (more than 10

acres

Small (less than 1 acres)

Medium (3-10acres)

INTERPRETATION
The above graph indicates that classification of number of farmers in terms of
land holding in Acres. The maximum number of farmers having small (less than 1
acres) 19 farmers at 47.5%. The minimum numbers of farmers belongs to large (more
than 10 acres) 9 farmers at 22.5%.
Primary source of income

Source of income No of respondent Percentage

Agriculture 35 87.5%
Others 5 12.5%
Total 40 100%

ANALYSIS: As above table out of 100% ,87.5%are dependent on

agriculture

Agriculture Other source

13%

88%

INTERPRETATION
The above graph indicates that, 35 of respondnets source of income is
generated through agriculture and 15 of respondents income is generated by others
sources.
 Which type of farming operation do you prefer

Opinion No of Respondent Percentage

Crop production 6 15%

Dairy production 6 15%

Poultry production 4 10%
All of the above 24 60%
Total 40 100%

Analysis : Above table shows that out of 100%, 60% respondent prefer all types of
farming

60%

50%

40%

30%

20%

10%

0%
Crop production Dairy production Poultry production All of them

Prefarance

INTERPRETATION :
Above chart shows that 24 respondent prefer all types of farming
operation, 6 respondent says crop production only, 6 respondent says dairy production
only, 4 respondent says that poultry production only.
Purpose of Agriculture loan

Purpose No of respondent Percentage

Purchase of land 5 12.5%
Purchase of equipment 11 27.5%
Livestock and feed 10 25%
Seeds and fertilizers 14 35%
Total 40 100%

Analysis : In the above table shows that most of the respondent borrow loan for seeds and
fertilizers

Purpose of agriculture loan

40.00%

35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
Purchase of land purchase of euipment Livestock and feed Seed and fertilizers

Purpose of agriculture loan

Interpretation
I n this above chart indicates that, Maximum number of respondent use

their loan amount for seeds and fertilizers, Minimum number of respondent
use their amount for purchase of land.
 Seeking of loan amount
Amount No of respondent Percentage
Less than 1,00,000 10 25%
1,00,000-3,00,000 14 35%
3,00,000- 500,000 11 27.5%

More than 500000 5 12.5%

Analysis In the above table shows that 35% respondent takes a loan of 100000 to 300000

Amount

35%

30%

25%

20%

15%

10%

5%

0%
Less than 100000 100,000-300,000 3,00,000- 5,00,000 More than 5,00,000

Amount

Interpretation
In the above chart indicates that Maximum number of respondent seeking loan
amount100000 to 300000 at 14 members . Minimum number of respondent seeking loan
amount of more than 5lakh at 5 members.
 Collateral security issued for a loan
Security No of Percentage
Respondent
Jewellery 10 25%
Records Of Rights, Tenancy 25 62.5%
And Crops (R.T.C) 
Other 5 12.5%
Total 40 100% Ana
lysi s: In
the above table shows that .62.5% of security issued for loan is (R.T.C)

Security

13%
25%
Jewellery
Land (R.T.C)
Others

63%

Interpretation
In the above chat shows that 25 respondent take a loan by issuing a security of
Records Of Rights, Tenancy And Crops (R.T.C), 10 respondent take a loan by issuing a
security of jewellary.5 respondent take a loan by issuing a other document.
Rate of Interest

Interest rate No of respondent Percentage

Fixed 26 65%
Variable 14 35%
Total 40 100%

Analysis In the above table shows that 65% of respondent farmer says that fixed rate
of interest

Fixed Variable

Interpretation
In the above chat shows that 26 respondent says that fixed interest rate.14
respondent says that variable interest.
 Eligibility criteria for availing of agriculture loans in panchaganga farmer
cooperative society
Eligibility criteria No of respondent Percentage
Minimum age of 18 6 15%
years
Minimum landholding 18 45%
of 1 acre
A good credit scores 7 17.5%
All of the above 9 22.5%

Analysis : In the above table shows that eligibility criteria for agriculture loan , 45%
respondent minimum landholding of 1 acre,

Eligibility criteria

All of the above

A good credit score

Minimum landholding of 1acre

Minimum age of 18 Years

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Eligibility criteria

INTERPRETATION
In the above chart shows that 18 respondent says that Minimum
landholding of 1acres, 6 respondent says that minimum age of 18 years ,7 respondent
says that a good credit score, 9 respondent says that all of the above given data.
The maximum loan amount available to farmers in Panchaganga farmers
cooperative society for agricultural purposes

Amount No of Respondent Percentage

Rs.2.5 lakhs 9 22.5%
Rs. 5 lakhs 10 25%
Rs. 10lakhs 18 45%
Rs. 25 lakhs 3 7.5%
Total 40 100%

Analysis
In the above table shows that 45% respondent says that maximum amount available
to farmers in panchanganga farmers cooperative society is 10 lakhs.

Amount
20
18
16
14
12
10
8
6
4
2
0
Rs 2.5 lakhs Rs 5 lakhs Rs 10 lakhs Rs 25 lakhs

Amount

INTERPRETATION
In the above chart shows that 18 respondent says that maximum amount
available to farmers in panchaganaga farmers cooperative society is 10 lakh, 10
respondent says that maximum amount is 5 lakhs, 9 respondent says that maximum
amount is 2.5 lakhs and 3 respondent says that maximum is 2.5 lakhs.
The interest rate charged on agriculture loans in panchaganga farmer
cooperative society
Interest No of Respondent Percentage
10% 9 22.5%
12% 10 25%
13% 13 32.5
15% 8 20%
Total 40 100%

Analysis : In the above table show that 32.5% respondent says that 13% interest rate
charge by panchaganga farmers cooperative society.

Interest rate

10% 12% 13% 15%

INTERPRETATION
In the above table shows that 13 respondent says that rate of interest is 32.5
%, 10 respondent says that rate of interest charged is 25%, 9 respondent says that rate
of interest charged is 22.5%, 8 respondent says that rate of interest is 20%.
The repayment period for agriculture loans in panchaganga farmer
cooperative society
Years No of Percentage
Respondent
Less than 1 year 21 52.5%
1 to 5 years 10 25%
More than 5 years 9 22.5%
Total 40 100%

Analysis: In the above table show that 52.5% respondent says the repayment of
agriculture loan below 1 years.

Repayment of agriculture loan

Less than 1 years 1 to 5 years More than 5 years

INTERPRETATION
In the above chart shows that 21 respondent says that repayment of loan
less than one year, 10 respondent says that repayment of loan between 1 to 5 years, 9
respondent says that repayment of loan more than 5 years.
The margin requirement for agriculture loans
Margin percent No of Respondent Percentage
10% 19 47.5%
20% 13 32.5%
30% 5 12.5%
40% 3 7.5%
Total 40 100%

Analysis: In the above table shows that 47.5% respondent says that margin requirement
for agriculture loans at 10%.

Margin requirment

50.00%
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
10% 20% 30% 40%

Margim percentage

INTERPRETATION
In this above table shows that 19 respondent says 10% margin required for
agriculture loan, 13 respondent says that 20% margin requirement for agriculture loan 5
respondent says that 30% margin requirement for agriculture loan and 3 respondent
says that 40% agriculture loan. Actual requirement is 10%.
 Processing fee charged for agriculture loans in panchganga farmers
cooperative society?
Processing Charges No of Respondent Percentage
0% 5 12.5%
1% 6 15%
2% 13 32.5%
3% 16 40%
Total 40 100

Analysis : In the above table shows that 40% respondent says that agricultural loan
processing charge by cooperative society at 3%.

Processing charges
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
0% 1% 2% 3%

Processing charges

INTERPRETATION

In the above chart says that 16 respondent says that agriculture loan processing
charge by cooperative society at 3%, 13 respondent says that
Any government subsidies available for agriculture loans in panchganaga
farmer cooperative society

Subsides No of Respondent Percentage

Yes 38 95%

No 2 5%

Total 40 100%

Analysis : In this above table shows that 95% of respondent says that government
subsidies available for agricultural loan in panchaganga farmer cooperative society.

Subsidies available

Yes No

INTERPRETATION

In this above table shows that 38 respondent says that government subsidies
available for agriculture loan for 9 months after 9 months interest will added.2
respondent says that government subsidies not available for agricultural loan.
Do you have defaulted loan before

Opinion No of Respondent Percentage

Yes 10 25%
No 30 75%
Total 40 100%

Analysis : In the above table shows that 75% of respondent don’t have any defaulted
loan before.

Defaulted loan

Yes No

INTERPRETATION

In the above chart shows that 30 respondent pay their before end of loan period.10
respondent have a defaulted loan.
Which financial institution assist agricultural loans to Panchaganga
cooperative bank

Opinion No of Respondent Percentage

State Bank of India 7 17.5%
Reserve Bank of India 8 20%
National Bank for 23 57.5%
Agriculture and Rural
Development
(NABARD)
Punjab National Bank 2 5%

Total 40 100%

Analysis : Above table shows that 57.5% respondent says that NABARDA will assist
panchaganga cooperative society for agriculture loan process.

Column1

Punjab National bank

NABARDA

Reserve bank of India

State bank of India

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%

Column1
 INTERPRETATION

In the above chart shows that 23 respondent says that (NABARDA) will assist the
panchaganga cooperative society, 8 respondent says that Reserve bank of India will
assist Panchaganga cooperative society, 7 respondent says that State bank of India will
assist the panchaganga cooperative society. 2 respondent says that Punjab national bank
will assist cooperative society.

Do you compared the interest rates offered by different banks

Opinion No of Respondent Percentage

Yes 22 55%
No 8 20%
May be 10 25%
Total 40 100%

Analysis : Above table shows that 55% of respondent compared rate of interest offered by
different banks.

Yes No May be
INTERPRETATION

In the above table shows that 22 respondent says they compared interest rate
from the other banks, 10 respondent says may be compared interest rate from different
banks and 8 respondent says that they didn’t compare a interest rate from the other
banks.