PROJECT REPORT

KANGRA CENTRAL CO-OPERATIVE BANK LTD. (BRANCH OFFICE RAIT KANGRA H.P) MASTER OF BUSINESS ADMINISTRATION (MBA) 2011-2013

SUBMITTED BY
KAUSHAL KUMAR

L.R. INSTITUTE OF MANAGEMENT

ACKNOWLEDGEMENT
If words are considered as symbol and taken of appreciation then let the words play the heralding role of expressing my sincerest gratitude and thanks I am indebted to Mr.Hem Raj ser.manager of K.C.C. Bank Rait Kangra H.P for providing me an opportunity to go through summer training. I would like to express my sincere gratitude towards Mr. Rajeev Dhiman, Mrs. Sujata Choudhary, and Mrs. Rittika Sharma (project Guide) for guiding me and also for letting me work on this project. I would like to extend my warm gratitude to the other K.C.C members for their help in completing the project.
KAUSHAL KUMAR

PREFACE
History reveals a field of views, a perspective. By looking at what has happened, it enables one to ascertain, usefully and balancedly as far as it can what ought to happen now and next.

The kangra ethos

The Kangra Central Co-operative Bank Ltd. (KCCB) is not just a bank. It is a process envisioned by its founding fathers in 1920 as the financial manifestation of the ethos of the Himalayan area of the pre-independence Punjab. It is an instrument of its financial vision. The KCCB is the organised co-operative vision of its sponsors concretised. Kangra ethos also stands expressed in its fine-grained sandstone rocks which have been chiseled into the temples at Masrur (8th century), Bajura (9th century), baijnath (12th century) and numerous others over the centuries and their sculptures.

The latest manifestation of the rock chiseling heritage of the area of operation of the KCCB is in its contribution to the thematic elegance of the Reserve Bank of India building in New Delhi. These entrance door sculptures fully symbolize the spirit and functions of The Reserve Bank of India. They thus magnificently mark the presence of the presence of the area of operation of the KCCB

CONTENTS
1) Preface 2) Certificate 3) Acknowledgement 4) Objective of study : What is Banking To know about overview of Banking Industry In short to know about KCCB 5) Types of Accounts Saving Account Current Account Term Deposit Account Recurring Deposit Account Fixed Deposit Account

6) Bank receipt / payment

7) Types of Loans 8) Conclusion 9) Appendices

OBJECTIVE OF STUDY

WHAT IS BANKING
Banking industry is a service industry. It provides various services to its customers. Traditionally the services were restricted to deposits and loans. The started by taking deposits from people who had surplus of money and lending this money to borrows who wanted money to invest. They charged interest from borrows and gave interest to depositors. There was difference in rate of interest between deposit and lending and that constituted the major source of revenue of books. Banking started like this but today banking industry is one of the most complex and hugely a portfolio of large number of service. Now a days banks are large and complex organization. Their clients range from individuals and corporate institutions other banks and governments of entire nations. Banking is a service industry means that dont produce physical things but provide service to their clients. The deal with all types of money transactions, borrowing it, lending it, and many other related activities that are use in bank.

TO KNOW ABOUT OVERVIEW OF BNKING INDUSTRY

In modern time, banks play an important role in the global economics. During the recent times, increase in tele communications and other financial technologies, have allowed banks to extend their reach all over the world, and there is no longer a need for customer to visit banks branches for every transaction, as most of the transaction can happen online. The growth in cross border activities has also increased the demand for banks that can provide various services across border to different nationalities. Deposit these advances in cross-border activities; the banking industry is nowhere near as globalized as some other industries.

IN SHORT TO KNOW ABOUT KCCB

THE KANGRA Cooperative tld.started in a very humble way as a small credit society in March 1960 by a few friends of distt. Kangra of himachal to help out the people of himachal residing in Delhi to uplift their economic conditions and tide over the financial hardships.

Dedication sincerity and honesty of these members brought rich fruits and this credit society grew up into a big societies with in 12th years after its information and successful running was converted in to primary urban cooperative bank in 1972 by RBI and was permitted to carry out banking activities including acceptance of deposits from public by opening their saving, current and RD accounts.23years their from in June 1995 it was granted a license to carry out the banking business by the Reserve Bank Of India.

There after, it was granted license to open branches and consequently six more branches were added in February, May, and December 1996, June 1998, October 2008 and the last one in July 2009. In May 1970it purchased paharganj building and reconstructed the same in 1993 in October, 1997 it purchased the present premises at janakpuri to setup administrative and HO. Central accounts and personnel department are functioning from this building. It has a board meeting room. One branch also functions here. The main branch along with its service branch arbitration and recovery department is situated in its on three storied building at paharganj. It purchased another Building in April 2008 at jagatpuri where its one of the existing Branches has already been functioning. The latest audited financial position of the bank as on 31st March 2012 is as follows:-

Membership

36918

Clientele other then members Share money Reserves/ other funds Working capital Deposits Advances Net profit

108543 21.84crores 20.33crores 479.62crores 401.56crores 280.17crores 12.08crores

Based on its financial position of 31st march 2003 the bank was classified as Grade 1 and continues to enjoy this grading till date. It also enjoys Grade A audit classification since long. Bank has been awarded best cooperative Bank award by the government of Delhi in November, 2005.

AGBM and elections, audit etc are held on regular intervals. Bank is giving dividend to its share holders regularly and lastly declared

@ 18%the highest declared so far. Bank has also introduced three scheme of welfare nature of its share holders. First one is where grant of rupees 20000/-is given to the nominee of the deceased members and no interest is charged up to 50000/liability in case of death of the member, the second one is where scholarship @ rupees 150/- and rupees 200/- per month is given to the brilliant wards of the members and staff and the third one is to give one time incentive to those wards of members/ staff who get 90% marks in board examination. Amount of incentive is rupees 3100/- and rupees 5100/- for 10th and 12th class respectively. Board of directors has also prepared a vision document for 2011-12 to 2013-14 according to which various targets have been fixed. Membership has been planned up to 38500. Efforts will be made to maintain the highest percentage of dividend. Clientele 1.15 lacs. Deposits to increase 500crores from 344crores.

Share money up to 25crores.

 Advanced to increase 350crores from 237crores. To increase +the net worth of bank to rupees 45crores. To purchase at least two own buildings for branches on rent. To get scheduled bank status. To create a befitting setup matching the status of the bank.

To op[en the 8th branch, to ext.counters /BCs/BFs, two on site-ATMs and cheque collection canters.

To make efforts to increase general loan to rupees 2lacs. To take steps to provide Quality service to the customers.

Bank has also introduced welfare

Schemes for its employees which includes grant of RS. 1lacs on death and on permanent disability on duty. Additional reimbursement is also given in case serious deceases life heart, kidney transplantations, cancer, T.B etc. In order to improve the knowledge of the staff guest lectures are also arranged on important topics related to the banking activities from time to time.

BANK ACCOUNT

Meaning :->

A bank account is a financial account recording the financial transaction between the customer and their bank and resulting financial position of the customer with the bank.

Types of account
Saving account Current account Term deposit account Recurring deposit account Fixed account

Saving account
The saving account is generally opened by salaried person or by the person who has a fixed regular income saving account is opened to encourage the people to save and collect their saving. The saving

account is holder is allowed to withdraw money from the account two times or three times on a week. At present the rate of interest is3.50%in India.

Feature of saving account :->

The main objective of saving account is to promote saving. The money is being withdrawn either by cheque or withdrawal slip. No loan facility is provided against saving account.

Advantages of saving account :->

It enables t the depositor to earn income by way of interest. It helps the depositor to make payment by may of cheques.

The bank offers number of services to the saving account holder.

Disadvantages of saving account :->

 Rate of interest on the money help in the account is very meager for4%is not even enough to beat the inflation rate of the country which is some where around 7% or more. No of transaction per month/ per year are limited.

Current account
Meaning of current account :->
Current bank account is opened by businessmen who have a number of regular transactions with the bank, both deposits and withdrawals. Current account can be opened in cooperative bank and commercial bank. In current account amount can be deposited and withdrawn at any time without giving any notice. It is also suitable for making payment to creditors by using cheques and they generally do not get by interest.

Feature of current account :->

The main objective of current account is to enable the businessmen to conduct their business transactions smoothly.

 There is no restriction on the number an amount of deposit. There is also no restriction on the withdrawal. Current account is of continuing mature and as such there is no fixed period.

Advantages of current account :->

Current account enables businessmen to conduct his business transactions smoothly. The business men can make direct payment to their creditors with the help of cheques. Current account enables the account holder to obtain overdrafts facility. Current account facilitates the industrial progress of the country.

Disadvantages of current account :->

The rate of interest that one earns on the balance is very low. Service of package account has additional cost.

 Fine print and paper work can be lengthy and perplexing. A limit may be imposed on the amount of funds one can withdraw in a day.

Term deposit account

Meaning :-> `The deposits received by the bank for a fixed
period withdraw able after the expiry of the fixed period and includes deposits such as recurring/ fixed/ term etc. Term deposits can be opened by individual partnership firm, private/ public ltd.

Advantages of term deposit account :->

A low risk investment which is usually guaranteed by the offering institution. A short medium term investment.

A minimum investment amount is required but may be a little as & 500.

Disadvantages of term deposits account :->

 Money can not be readily available in an emergency. If interest rates rise the investment continues to earn the lower rates. No capital growth. No tax advantages.

Recurring deposit account

Meaning :->
Recurring deposit account is generally opened for a purpose to be served to a future date. Generally opened to finance pre- planned future purposes like, wedding expenses of daughter, purchase of costly item like land, refrigerator or air conditioner, etc. In recurring deposit account certain fixed amount is accepted every month for a specified period and the total amount is repaid with interest at the end of the particular fixed period.

Feature of recurring deposit are as follow: In India minimum amount that can be deposited is rupees 10at regular intervals. The rate of interest is higher.

 The bank provides the loan facility. The loan can be given unto 15% of the maturity period. The period of deposit is minimum fix month and maximum ten years.

Advantages of recurring deposit :->

Recurring deposit encourages regular savings habit among the people. The bank may also invest such fund in profitable area. The bank can utilize such fund for lending to businessmen.

Disadvantages of recurring fund :->

Among the notable disadvantages is that you can not with draw the deposited money not units at the expiry of the agreed period of time.

 Money saved in fixed deposit account is mostly affected by inflation saving.

Fixed deposit
Meaning :->
The term fixed deposit means that the deposit is fixed and is repayable only lifter a specific period is over. Under fixed deposit account money is deposited for a fixed period lay six month, one year, five year or even ten year, the money deposited in this account can not be withdraw before the expiry of period.

Features of fixed deposit :->

The amount can be deposits only once for further such deposits, separate account need to be opened. The period of fixed deposits rang between is days to 10 years. A higher interest rate is paid or fixed deposit.

Advantages of fixed account :- >

 Fixed deposit encourages saving habit for a longer period of time. Fixed deposit account enables the depositor to earn a high interest rate. The bank can get the funds for a longer period of time. The bank can lend such fund for short term loans to businessmen.

Disadvantages of fixed deposit account:->

No of transactions per month/ per year are limited. Rate of interest on the money held in the account is very meager 4% is not even enough to beat the inflation rate of the country which is somewhere around 7%or more.

Bank receipt
Meaning:->

A bank receipt contains details information about a financial transaction Conducted at a bank. The transaction receipt generally includes the amount of the transaction, the date it occurred, and the employee, who conducted the transaction. A side transaction involving deposit account, bank receipt are also given to customer bank provide account holder with a copy of the bank receipt and the bank also maintain it on re- part of all transaction.

Bank payment
Meaning:- >
Use bank payment for money that you out a bank account with out using a bank check they work for ATM with drawls cretid card and debit card, purchase automatic transfer and other non- check payment in the goldenseal accounting software use the bank payment for any non check payments for expenses.

Bank draft
Meaning:->

A bank draft is traditionally a check drawn on a banks funds, such as a cashiers check. When paying bill, the term bank draft is some times used to refer to an automatic transfer from where your bank account to your service provide you generally use bank draft when you need to pay some body with guaranteed funds . Bank draft more secure for sellers because the fund are guaranteed by the bank that issued the drafted.