SUMMER PROJECT REPORT

“Study of Banking Operations with reference to Shivdhara Mahila Nagari

Co-Operative Society Ltd.

Submitted to:

Dr. Ambedkar Institute of Management Studies & Research,

Deeksha Bhoomi, Nagpur.

Submitted by:

Ritu Prabhakar Suryatale

Company Guide:

Gajanan Bande

Faculty Guide:

Prof. Rashmi Patel

2023-2024

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 CERTIFICATE

This is to certify that the investigation described in this report titled “Study of
Banking Operationswith reference to Shivdhara Mahila Nagari Co-
Operative Society Ltd.” has been carried out by Ms.Ritu Prabhakar
Suryatale during the summer internship project. The study was done in the
organisation, Shivdhara Mahila Nagari Co-Operative Society, in partial
fulfillment of the requirement for the degree of Master of Business
Administration of R. T. M. Nagpur University, Nagpur.

This work is the own work of the candidate, complete in all respects and is of
sufficiently high standard to warrant its submission to the said degree. The
assistance and resources used for this work are duly acknowledged.

Dr. Sudhir S. Fulzele

(Director)

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CERTIFICATE

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 ACKNOWLEDGEMENT

It is a matter of pride and privilege for me to have done a summer internship

project in “Shivdhara Mahila Nagari Co-Operative Society” and I am

sincerely thankful to them for providing this opportunity to me.

I am thankful to “Mr. Gajanan Bande” for guiding me through this project and

continuously encouraging me. It would not have been possible to complete this

project without his / her support.

I am also thankful to all the faculty members of Dr. Ambedkar Institute of

Management Studies & Research and particularly my mentor “Prof. Rashmi

Patel” for helping me during the project.

Finally, I am grateful to my family and friends for their unending support.

Ritu Prabhakar Suryatale

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 INDEX (table of contents)

Sr.no content Page no.

Part 1

(A) COMPANY PROFILE

 Brief

 Management Structure
4-13
 Product and Services

 Performance and Market share

 SWOT analysis

(B) SECTOR OVERVIEW

 Sector size

 Major player

 Regulations and Regulatory Bodies

14-20
 Sector Contribution to Economy

 Problems Faced by the Sector in general

and the company in Particular

 Future Potential of the Sector

Part 2

(A) Actual Work Done

(B) Finding and Suggestions

21-25
(C) Conclusion

 Appendices

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 COMPANY PROFILE

CO-OPERATIVE BANKS

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.

Co-operative bank generally provide their members with a wide range of banking and

financial services (loans, deposits, banking accounts). They are registered under the

Cooperative Societies Act-1912, and governed by the banking regulations act 1949 and

banking laws (cooperative societies) act, 1965.

Anyonya sahakari mandali, established in 1889 in the province of Baroda, is the earliest

know co-operative credit union in India.

BRIEF HISTORY

Shivdhara Mahila Nagari Credit Co-Operative Society Ltd. Is sub branch of Godavari

Urban Multistate Credit Co-Operative society Ltd. was started in the year 2020 with the aim

to support the people from the grass root level & critical in keeping the nation developing, as

well as making banking services more efficient & accessible especially in the rural area.

Godavari Urban Multistate Nanded Credit Co-Operative Society is an autonomous

association of people united voluntarily to meet their Mutually Social, Economical, Cultural,

Professional and Personal Aspirations.

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GUMCCSL was established and introduced on 8th May 2013 with a compact capital of

precisely Rs 29,700. Initially it was a venture of middle class; presently covering a Lion’s

share in almost Maharashtra, Telangana, Andhra Pradesh, Karnataka and a modest of

Gujarat; fulfilling the dreams of extensive public.

Godavari Urban is now ISO 9001 – 2015 branded for its Quality Management System by

International Standards Organization. Our Credit Co-operative Society has Preferred and

Implemented “CORE BANKING TECHNOLOGY”, which results in prompt and accurate

Service to our customers from every branch.

Vision

Provide personalized up-to-date high quality financial products and service; Operate

conservatively, efficiently and profitably; Contribute to the quality of life in our communities.

Mission

Continuing our promise Commitment while delivering consistent quality experiences and

providing options and banking solutions that meet your needs.

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 MANAGEMENT STRUCUTURE

Structure of Cooperative Banking in India

The structure of cooperative network in India can be divided into 2 broad segments-

 Urban Cooperative Banks

 Rural Cooperatives

Urban Cooperatives

Urban Cooperatives can be further divided into scheduled and non-scheduled. Both the

categories are further divided into multi-state and single-state. Majority of these banks fall in

the non-scheduled and single-state category. Banking activities of Urban Cooperative Banks

are monitored by RBI. Registration and Management activities are managed by Registrar of

Cooperative Societies (RCS). These RCS operate in single-state and Central RCS (CRCS)

operate in multiple state.

 Rural Co-operatives

The rural cooperatives are further divided into short-term and long-term structures. The short-

term cooperative banks are three tiered operating in different states. These are- State

Cooperative Banks- They operate at the apex level in states District Central Cooperative

Banks-They operate at the district levels Primary Agricultural Credit Societies-They operate

at the village or grass-root level. Likewise, the long-term structures are further divided into –

State Cooperative Agriculture and Rural Development Banks (SCARDS)- These operate at

state-level. Primary Cooperative Agriculture and Rural Development Banks (PCARDBS)-

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They operate at district/block level. The rural banking cooperatives have a complex

monitoring structure as they have a dual control which has led to many problems. A Forum

called State Level Task Force on Cooperative Urban Banks (TAFCUB) has been set-up to

look into issues related to duality in control. All banking activities are regulated by a shared

arrangement between RBI and NABARD. All management and registration activities are

managed by RCS.

General Body

Managing
committee

Chairmen

General Manager

Deputy General Manager

Assistant General Manager

Senior Manager Manager Asst. Manager Subordinate staff

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 ACHIEVEMENTS AWARDS AND LATEST DEVELOPMENTS

 The Bank (GUMCCSL) has crossed the business turnover of over rs.204 crore in

financial year.

 The society has been honored with the prestigious “BANKO AWARD”.

 The bank has been awarded with “THE BEST CO-OPERATIVE SOCIETY”.

 The latest development is launched an ATM card facility & mobile application

banking

PRODUCTS AND SERVICES OFFERED

Products offered are:

 Current account

 Savings account

 Cash credit limit

 Overdraft

 Pigmy deposits

 Recurring deposits

 Long term loans

 Short term loans

 Fixed Deposit Receipt

 Deposits

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  Different types of Schemes

Services offered are:

 RTGS & NEFT

 Cheque

 Intra bank deposit portability

 Online trading facility to DEMAT account holder

 Internet Banking

PERFORMANCE AND MARKET SHARE

 The deposits of the society were Rs. 1335, 25,26,153. during the reporting year there

was a rise of Rs. 255,52,86,264 in the deposit of the society, the total deposit of the

society are Rs. 1590,79,12,417. The increase is 19.14%.

 At the beginning of the year the Reserve and other Funds of the society were

Rs.8,23,21,097/- there is rise of Rs.10,29,40,834/- at the end of the year the Reserve

and other Funds of the society are as on 31.03.2022 Rs. 18,52,61,931/- the increase is

125.05%.

 As on 31.03.2021 the investment were 318,01,45,555/-. The during the reporting year

there was a rise of Rs. 43,23,152/- as on 31.03.2022 the total investment of the society

are Rs.361,24,68,707/- the increase is 13.59%.

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 SWOT ANALYSIS

STRENGTHS:

1. UCBs are self–reliant in financial with less risk in operations.

2. UCBs account for nearly 10% of the resources of the entire banking sector in India.

3. They have been filling the credit gap in the urban, sub- urban and semi-urban areas.

4. Provide MICRO FINANCE.

5. UCBs have responsibility for the economic upliftment of the weaker sections of the

community.

6. There were 55 scheduled urban cooperative banks in India as on 31st March 2004.

7. There is a good network of UCBs organized at grassroots levels.

8. Employees of UCBs are from local areas, well versed with their clientele, their needs

and psychology.

WEAKNESSES:

1. Staff recruitment is not done properly in UCBs. There is a shortage of manpower.

2. The process of computerization of UCBs is rather slow. Though computers have been

installed, trained staff is not available.

3. Lack of professional management.

4. Annual General Meetings (AGM) are not convened periodically and effectively.

5. Ineffective supervision over branches and poor inspection.

6. 9. The dual control is creating a lot of confusion in the operation of UCBs.

7. 10. Ineffective supervisory mechanism and internal control system.

8. 11. Lack of initiative and innovation among the staff and members.

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OPPORTUNITIES:

1. On account of their proximity to their members and their firms, UCBs have a good

scope for enlarging the membership.

2. UCBs are integrated into their local environment and their role goes beyond that of

provider of financial services.

3. Collective efforts not only enhance the chances of success but also increase the

economy of scale by reducing the per capita cost of operation and increase

productivity.

4. Setting up of Urban Banks Department (UBD) by the RBI as recognition of this sector

as an important part of the banking system in 1984.

5. Registration of UCBs with multistate presence under the Multistate Cooperative

Societies Act, 2002.

6. 10. RBI regulatory arrangement with the State Government through a Memorandum

of Understanding to facilitate proper and coordinated regulation and supervision of

UCBs.

THREATS:

1. Acute competition in the market.

2. Tightening of Income Recognition and Asset Classification Norms had a direct

bearing on the balance sheet of the UCBs.

3. Higher cost of management especially for interest on deposits and establishment

cost.

4. Increasing litigation between management and employees.

5. Loan waiver announcement of government then and there.

6. Departmental interference in financial matters in various forms.

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 PART 1 (B)

SECTOR OVERVIEW

SECTOR SIZE AND MAJOR PLAYERS

The new regulatory framework for urban co-operative banks (UCBs) is expected to stipulate

a threshold business size of Rs 100 crore, beyond which it will not be life as usual for these

entities. Curbs are also expected to be placed on UCBs on some of their specific activities

(especially on sensitive sectors like realty), so as to restrain their growth, given the less-than-

adequate oversight of them. The Reserve Bank of India (RBI) and the Ministry of Finance are

in discussions on the regulatory and business topography of UCBs after the blowout at the

Punjab and Maharashtra Co-operative Bank.

Major players:

 Saraswat Co-Operative Bank

 Shamrao vithal Co-Operative Bank

 Abhyudaya Co-Operative Bank

 Cosmo Co-Operative Bank

 Bharat Co-Operative Bank

 TJSB Sahakari Bank

 Janata Sahakari Bank

 The Punjab State Co-Operative Bank

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 REGULATIONS AND REGULATORY BODIES

Primary Cooperative Banks, popularly known as Urban Cooperative Banks (UCBs) are

registered as cooperative societies under the provisions of, either the State Cooperative

Societies Act of the State concerned or the Multi State Cooperative Societies Act, 2002. They

are regulated and supervised by the Registrar of Cooperative Societies (RCS) of State

concerned or by the Central Registrar of Cooperative Societies (CRCS), as the case may be.

The applicability of banking laws to cooperatives societies since March 1, 1966 ushered in

‘duality of control’ over UCBs between the Registrar of Cooperative Societies/Central

Registrar of Cooperative Societies and the Reserve Bank of India. The Reserve Bank

regulates and supervises the banking functions of UCBs under the provisions of Banking

regulation Act, 1949(AACS). Within the Reserve Bank, a separate department, viz. Urban

Banks Department, has been entrusted with these functions. Urban Banks Department

functions in close coordination with other regulators viz., RCSs and CRCS.

The functions of the department can be broadly divided into

(i) Regulatory

(ii) Supervisory and

(iii) Developmental.

The Reserve Bank has been vested powers to issues license to UCBs under Section 22 and 23

Banking Regulation Act, 1949 (AACS) to carry on banking business and to open new places

of business(branches, extension counters, etc.) respectively. For this purpose, guidelines on

the eligibility criteria for issue of banking license / branch license are issued to UCBs from

time to time. As a regulator, the Reserve Bank has prescribed prudential norms in various

areas, e.g. capital adequacy, income recognition, asset classification and provisioning,

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exposure to single/group borrowers, exposures to sensitive sectors, loans and advances,

investments, liquidity requirements, etc. Considering the heterogeneity in the sector, a

differentiated regulatory regime is being adopted by Reserve Bank in certain aspects by

grouping the UCBs under two Tiers (Tier I and II) based on their branch network, area of

operation and the level of deposits. The Banking Regulation Act, 1949(AACS) provides for

submission of periodical returns by UCBs to the Reserve Bank of India. Further, under the

powers vested in the Reserve Bank, it has prescribed various other periodical returns to be

submitted by UCBs. The Reserve Bank carries out on-site inspections and off-site

surveillance of UCBs. It also issues directions and operational instructions to UCBs,

wherever necessary to streamline the functioning and to protect the interests of the depositors.

As a part of developmental functions, the Reserve Bank imparts training to the officials of

UCBs to upscale their knowledge, skill and expertise. The Reserve Bank has entered into

memorandum of understanding (MOU) with Central Government and various State

Governments for harmonization of regulation and supervision. The circular instructions

issued to UCBs from time to time are placed in the Reserve Bank’s website. Further, for

discharge of its functions, the Bank has prepared operation manual, Job Cards, manual for

on-site inspection of UCBs, manual of instructions for UCBs, etc. and issues internal

circulars/instructions from time to time.

SECTORS CONTRIBUTION TO THE ECONOMY

India is mainly an agrarian society with more than half of its population still residing in the

villages. Rural sector is the major contributor to the overall GDP of the nation and hence lack

of development in villages means lack of development in India. Cooperative societies are

playing significant role in this and share a major credit in the growth of rural sector which

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along with government and private sectors contribute to the overall economy of India.

Cooperatives cover more than 97%of Indian villages, some run by its members and some by

the government Needs of rural people are served by different forms of private and

government organizations including partnership firms, co-operatives, companies and

charitable trust. Government each year spends lakhs to crores of rupees on rural development.

But co-operatives working in rural areas are playing noteworthy role in this. Gujarat’s Dairy

co-operative and Maharashtra’s sugar co-operative prove their contribution.

Cooperatives originated in the West during the middle of the last century and from there

these came to India. Formally co-operatives were introduced to India in 1904 when the Indian

Co-operative Societies Act was promulgated. Moreover rural indebtedness was the major

force behind the initiation of chit funds and cooperatives in India. Initially these were just to

provide credits to the farmers in the form of credit societies and gradually these start working

in other fields such as banking, processing and marketing. The meager funds of farmers were

pooled in to run cooperative and it was an attractive way to solve their financial problems.

After independence role of cooperative societies grew to encompass socio-economic

development and eradication of poverty in rural India. It became an integral part of five year

plan. With this co-operative societies became a fundamental part of our economy.

Non-credit societies came in 1912. Importance of co-operative was also highlighted in the

Royal Commission on Agriculture in 1928. With the formation of the Reserve Bank of India

(RBI) in 1935, developing more cooperative societies was given due importance.

Main aim of the cooperative was to get the poor and indebted farmers out of poverty and out

from the clutches of money lenders. Within short span of time, role of cooperatives extended

beyond agricultural credit. It started covering activities such as production, farming,

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marketing and processing. Cooperatives are now playing a very significant role in the socio-

economic development of our country especially the rural India.

In 1951 there were 1, 81,000 cooperatives of all kinds in India and this number increased to

manifold within short span of time. During 2007-08 there were 1, 50,000 primary credit

cooperatives and some 2, 60,000 non-credit primary societies of all types. In India there are

four major types of cooperatives –

o The Primary agricultural credit or service societies

o Agricultural non-credit societies

o Agricultural co-operative marketing societies

o Co-operative farming societies

Though the expansion and reach of cooperatives is highly impressive but their way of

working is not Except for few co-operative societies most of these lack motivation. These are

merely run by the government without motivation and enthusiasm of their members. Some of

these even lacks in the required funds. Other factors that lead to the slow progress of these

societies are – mismanagement, manipulation, restricted coverage, lack of awareness, and

political interference. But this does not mean the downfall of the massive projects. Despite all

this, cooperatives are really helping poor in becoming self-reliant. Scope of cooperative

societies in rural India can improve further with women participation.

Cooperatives provide credit to the farmers, the most needed thing in the farming. Apart from

this cooperatives help farmers by providing top quality fertilizers, seeds, insecticides,

pesticides etc at reasonable price. Farmers also get marketing, warehousing facility and

transportation support from the cooperatives. Service cooperative societies help the poor and

marginal farmers with tractors, threshers etc on rent. Rural cooperative societies are now

entering into real estate, power, insurance, and healthcare and communication sector. If these

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keep on working with an objective of development then days are not far when quality of rural

life would be far better than urban India.

PROBLEMS FACED BY THE SECTOR IN GENERAL AND THE

COMPANY IN PARTICULAR

1. The vital link in cooperative finance system i.e. cooperative banks itself remains very poor.

They are too small to operate property and some of them are existing only on the paper.

2. The NPAs of the cooperative banks are higher than those of commercial banks in NPAs to

asset ratios.

3. They are performing the unethical practices by the bodies of chairman.

4. They are largely depends upon govt. capital than the shareholders contributions.

5. The workers participation in the working is much lesser than expected.

6. They are facing infrastructural weakness and structural laws. They do not have potentials

in members, deposits and borrowers.

7. Cooperative banks till now have to depend heavily on refinancing facilities from the govt.,

RBI and NABARD. They are not able to become self reliant through their own resources of

deposits.

8. They are facing from harmfully low or weak quality of loan assets and from highly bad

recovery of loans.

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9. Different regulations have been put on them besides that they are weak in their working. In

fact the existence of multiple regulatory authorities has come in the way of effective

regulations, control and monitoring of cooperative banks.

10. The areas of operation of the cooperative banks are restricted and limited.

11. They are not having the modern practices of banking in there working viz. net banking,

mobile banking, online banking, e-banking, ATM banking and all other modern banking

practices. Due to which they have been eliminated and remained back foot in the modern era

of marketing.

FUTURE POTENTIAL OF THE SECTOR

 Investment with liquidity stood at 962 crore.

 Investment with liquidity stood at Rs 283 crore as against Rs 1186 crore is working

capital.

 Shivdhara Mahila Nagari Co-Operative society ltd. Use this capital to provide loans to

many small businesses. The organization provides support to a lot of different

ventures regularly.

 With the disbursement of Rs 679 crore, the organization continues its strived efforts

towards the achievement of its broader objective.

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 PART 2 (A) ACTUTAL WORK DONE

WEEKWISE DETAILS

WEEKS ACTUAL WORK DONE

Week 1  Introduction of the bank.

 Gave an overview of the work we would be doing.

 Learning about the company rules and regulations.

 Gave information about NETWIN SOFTWARE which is using

on the bank .

Week 2  Creating customer ID.

 Create new account in system:

 Saving account

 Small saving account

 Current account

 Fixed deposit account

 MIS account

 Loan Account

Week 3  Call Customer for KYC and collect document

 Scanned Current Account and Saving Account

Week 4  Passing the entries on netwin software:

 SSD quick entries

 Small saving customer entries

 Fixed Deposit information to given to Customer

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Week 5  Customer deposit entries

 Customer withdraw entries

On the netwin software.

 Passbook printing

Week 6  Loan about information given to the Customer

 Verification of document who are applying loan, and loan

entries as per banking entries in a system.

Week 7  Customer grievance handling.

 Vouchers.

 Covering.

Week 8  Maintain daily transaction with vouchers, covering and detail

day book.

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 PART 2 (B)

FINDINGS

1) To analyze the sources and uses of funds for their trends and patterns.

2) In order to determine how well funds are being managed.

3) The lack of utilization of technology.

4) To assess the management methods employed.

5) Government and political interference.

6) The loan approval process is lengthy.

7) Long procedure for approval of loan.

SUGGESTIONS

1. Minimize and simplify the formalities to be followed by customers for getting the

loans sanctioned and for its disbursal.

2. Banks should manage their increased business professionally with utmost care, so that

profitability of these banks should increase in consonance with their productivity.

3. Internal control systems, inspection and internal audit systems should be strengthened

and strongly implemented.

4. Need based computerization should be immediately introduced.

5. The agricultural sector as well as the industrial sector must be intensely monitored by

the urban cooperative banks and help those sectors by disbursing the loans as per the

direction of RBI, State and Central Governments without any delay.

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6. The innovative operations like computerization, online banking and net banking must

be organized by all the urban cooperative banks immediately to pave the way for the

customers for their easy bank dealing and this would help both customers and bank

staff to avoid the loss of valuable time.

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 Part 2 (C)

CONCLUSION:

The urban cooperative sector has to face the twin challenges of meeting the competition at

the domestic level and at international level. The UCBs instead of bowing to the challenges

should bounce back and take up the challenges and utilize the new opportunities. The stage is

now set for all the stake holders of the urban cooperative movement in India, that is the

Government, policy makers, cooperators and the supervisory authorities to undertake

collective action for review and recognize the activities of the century-old movement and

record the achievements and failures during this long journey to make necessary alterations

and strategies to cope with the changing socio-economic, political and business environment.

APPENDICES

 https://www.facebook.com/p/Shivdhara-Mahila-Nagari-Credit-Co-

Operative-Society-Ltd-Nanded-100063931486617/

 https://godavariurban.com/

 http://indiancooperative.com

 http://timesofindia.indiatimes.com

 http://economictimes.indiatimes.com

 http://www.allbankingsolutions.com

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