A REPORT ON

THE CO-OPERATIVE BANK OF RAJKOT LTD. (RAJ BANK)

Submitted To :: SAURASHTRA UNIVERSITY

Submitted By :: LIMBASHIYA CHIRAG G. (S.Y. B.B.A)

Guidance :: MR. NIRAJ PANDYA

Academic Year :: 2005-2006

College :: R.P.BHALODIA COLLEGE RAJKOT.

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PREFACE
Practical training is the part of our study in B.B.A. it is compulsory for each student to take training for 15 days in any service sector and prepare the project report on that service sector. The training has been undergone at THE CO-

OPERATIVE BANK OF RAJKOT LTD. for the knowledge of practical study of unit. This report contains the true knowledge and all the aspect over gone in the practical. It covers all the various department like marketing department, financial department and personnel department. THE CO-OPERATIVE BANK OF RAJKOT LTD. Sahkar Sarita Panchanath Road, Rajkot 360 001. Phone : (0281) 2224120 / 2234733 / 2233155. Fax : (0281) 2236682. Email : raj bank. I have prepared the report of THE CO-OPERATIVE BANK OF RAJKOT LTD. on the basic of information, which I collected from various department of the company. I got all the information, which I wanted from this company. DATE PLACE :: - ___________ ::- ___________ (SIGNATURE) (LIMBASHIYA CHIRAG G.)

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ACKNOWLEDGEMENT
The preparation of the report is my own work, but I have taken help from many persons. I am thankful to all those persons who helped me in activity out this work. I express my deepest of gratitude the manager of THE CO-OPERATIVE BANK OF RAJKOT LTD. and all the members who provided all the necessary information. He gives me grate pleasure in thanking Mr. NIRAJ PANDYA who helped me out in my work. Without him ever ready help, whole hearted guidance, never ending encouragement and enthusiasm. It was difficult to bring this report to its present form. I would be failing my duty if I will not mention thanks to family members, relatives and friends to helping me throughout. DATE PLACE :: - ___________ ::- ___________ (SIGNATURE) (LIMBASHIYA CHIRAG G.)

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DECLARATION
I, the undersigned LIMBASHIYA CHIRAG G. student of S.Y.B.B.A. from the Shri R.P.BHALODIA COLLEGE of Commerce & Business management & Computer studies, declare that this project report is prepared by me. I had taken a help of my college and professor for the purpose of guidance only and to add that, myself prepare this report.

DATE PLACE

:: - ___________ ::- ___________ (SIGNATURE) (LIMBASHIYA CHIRAG G.)

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CONTENTS
Preface Acknowledgement Declaration Banking Sector In India General Information Of Co-Op. Banks 2 3 4 9 11 - 19
12 13 14 16 18 19

Introduction Definition Of Co-Operative Principles & Characteristics Types Of Co-Operative Bank Role Of Co-Operative Bank Registration & Licensing

RAJ BANK At Glance

20 - 32
21 22 23 24 29 30 32

Introduction Corporate Mission The Executive Committee Branch Network & Structure Awards & Accolades Corporate Governance & RAJ BANK Relationship Management

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Services At The RAJ BANK

34 - 52
35

Introduction Depository Services Current Deposit Saving Deposit Term Deposit Recurring Deposit Children Deposit

36 - 42
36 38 40 41 42

Advance Services Business Loan Medical Equipment Loan Term Loan Mortgage Loan Secured Overdraft Clean Overdraft Personal Loan Vehicle Loan Loan against NSC / KVP / LIC. Home Loan

43 - 49
43 44 44 45 45 46 46 47 48 49

Other Services Safe Deposit Vault Cash Card Facility ATM Facility Cheques Depository Service

50 - 52
50 51 52 52

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H. R. M. At The RAJ BANK

53 - 63
54 55 57 58 59 60 62 63

Introduction Human Resource Policies & Program Recruitment Selection Orientation & Placement Employee Remuneration Training & Development Promotion & Transfer

Marketing At The RAJ BANK

65 - 68
66 67 68

Introduction Promotional Activities Marketing Research & Information

Finance Management At The RAJ BANK 69 - 81

Introduction Financial Planning Capital Structure Of The RAJ BANK Capitalization Cash Management Ratio Analysis Finance Information Progress Report NPA & Recovery Management Risk Management

70 71 72 73 74 75 76 77 79 81

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S. W. O. T. Analysis Future Plan Suggestion Conclusion Bibliography

83 86 88 90 92

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Banking Sector In India

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BANKING SECTOR IN INDIA

The importance of banking as the nerve sector of economic development can not be over emphasized. Banking industry has acquired a key position in mobilizing resources for defense & for socio economic development of the country. It is said that Bank which are that need of & great wealth of our country have got to be kept very sacred. Just as water is for irrigation, good banks are for the countrys industry & trade. Since the beginning of planning in India banking industry has grown not only in size but also in depth this industry has become one big complex. Today banks have become a part & parcel of our life. Ti was the time when the dwellers of city alone could enjoy their services. Now banks offer access to even a common man & their activities extend to areas hither to untouched & after the globalization & liberalization policy of India, many foreign banks have entered in Indian market with different services & innovation technologies. Apart from their traditional business oriented functions, they have now come out to fulfill national responsibilities. Todays banks cater to the needs of agriculturists, industrialist, traders, women, students & to all other sections of the society. Thus they accelerate the economic growth of a country & steer the wheel of the economy towards its goal of Self reliance in all fields. Hence today banking sector has become the lifeline of the economy. In present age in India there are many banks including foreign banks, public sector, private sector, commercial banks & co-operative banks.

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General Information of Co-Operative Banks

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INTRODUCTION
Over the year the difference between co-operative banks & commercial banks has blurred as they all have come under a common law. All products & services are offered by co-operative banks are on the par with commercial banks, with a few exceptions related to government business. In 1904 the cooperative movement started in India with a view to provide finance to the agriculturist at a low rate of interest. The cooperative society has to take the place of the money lenders & provide cheap loan to the farmers for productive purposes. Even though many types of co-operative societies have been started particularly for the artisans & others, the most common form of such societies deal in rural credits. And today co-operative banks have started verities of services with different technologies. Once the Mahatma Gandhiji has remarked that there is sweetness in co-operation; there is no one who weak or strong among those who co-operate. Each is equal to other. So, after having such easy government policy, today many co-operative banks have started in India. And they are catering to the all section of the society, & also today co-operative sector has grown in all over the world, with globalization of the world they have also started to implement new technologies & various management tools. Now, they are in same market with all the other banks. So, by this way the co-operative banks are in the key position in the economy.

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DEFINITION OF CO-OPERATION
Co-operation has been defines in slightly different ways in various sciences & by various scholars. This is due to its flexible nature which can lend itself to variety of purpose & social system, in order to have a through understanding of the concept some well known definitions are discussed below. Co-operation is a form of organization where in persons voluntarily associate together as human beings on a basis of equality, for the promotion of economic interests of them selves. -Hubert Calvert Another protagonist is an association for the purpose of joint trading, originating among the weak & conducted always in an unselfish spirit, on such terms that all who are prepared of assume the duties of membership my share in its reward in proportion to the degree in which they make use of there association. - C. R. FAY

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PRINCIPLE & CHARACTERISTICS

Careful analyses of the above definitions will reveal the following principles & characteristics of co-operative organization.

VOLUNTARY ASSOCIATION ::Co-operative organization is purely a voluntary association if individual who join together for betterment of their economic interest through collective efforts. A member is at liberty to leave the organization at any time & withdrawal his capital by giving due notice. But it should be remembered that a member is not allowed to transfer his shares to another person as found in the company organization.

OPEN MEMBERSHIP ::Membership of co-operative organization is open to all irrespective of religion caste, colour, creed, political affiliations belief & status to which a person belongs. The membership fees & the entrance fees are kept relatively low so as to enable the economically weak to become the members.

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 EQUAL VOTING RIGHTS ::Equality is the quintessence of co-operative organization. Members have equal voice in the management of its affairs with the underlying principle ONE FOR ONE VOTE .

SERVICE MOTIVE ::It is mainly intended to goods first to its members & then to outsiders at profit the primary aim of any co-operative organization is to render service to its member. So these are the primary motive or principles. There are other principles, cooperative organization has to follow those principles like state control, democratic organization etc.

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TYPES OF CO-OPERATIVE BANKS

There are mainly three types of co-operative banks in India.
State co-operative banks Central co-operative banks Urban co-operative banks

STATE CO-OPERATIVE BANKS ::These banks are also known as apex bank & are registered under co-operative societies act 1912. In fact these banks are established to function as a leading co-operative financial institution of the state offer co-operative societies should grow. The apex banks as they are called are they to render financial help as & when the co-operative societies are in need of their help.

CENTRAL CO-OPERATIVE BANKS ::A district level of central co-operative banks is functioning as a commercial bank & that too as an independent unit. They are there in order to strengthen the co-operative movement in the country. In fact these banks are the key link between people & apex bank & render valuable services to downtrodden & rural folk in taking them out of the financial wood central co-operative banks get funds from (A) share capital (B) deposits (C) financial help from state cooperative banks (D) state bank of india & (E) commercial banks. Their working capital is usually provided by state government.

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 URBAN CO-OPERATIVE BANKS ::Urban co-operative banks are organized & established in towns on the pattern of joint stock banks but are established under co-operative societies act 1912. For funds these banks depend on their own sources. However central co-operative banks are helping them in financially viable. Central co-operative banks are directly links with the state co-operative banks. Urban primary co-operative banks provide funds to rural folk in easy terms to help them in agriculture work aid its development today they have started playing a significant role in rural upliftment. They are in tune with the government policies & program.

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ROLE OF CO-OPERATIVE BANKS

Now-a-days co-operative banks are progressing very fast then any commercial or nationalized banks. The customer service lending services & other banking facilities given to the society is being better than other banks. So people are also being attracted & interested in co-operative banks. The main aim of the bank is to extend credit facilities to the small traders, workers & other middle class people. This bank derive their funds for working partly through share capital contributed by the members & partly through deposits collected from members, general public & render usual banking services. The liability of members is normally unlimited. This enables the society to raise funds from outside agencies & also encourages member to take keen interest in working of the society.

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REGISTRATION & LICENSING

There should be co-ordination between the state cooperative department & RBI for the registration & licensing of urban banks. Urban banks should build up their share capital & reserve to the revised minimum level with in period of 3 year which can be extendedly by the RBI to a further period of 2 years whenever necessary. For organization or urban co-operative bank in each state there should jointly survey local areas & identify the potential growth centers where urban banks could be organized once such centers are located prominent person of the locality might be contacted to seek their assistance for registration of the urban banks. New banks are to be organized in backward areas or by weaker section of the community may not be able to collect the initial minimum share capital required for obtaining license. Government assistant in the form of share capital contribution for such new banks may be equal to that collected by members. These banks derive their funds for working partly through share capital contributed by the numbers & partly through deposits collected from members & non-members & renders usual banking services. The shares are of higher value. But the liability of the member is limited to the extent to the shares hold by them.

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Raj Bank

At A Glance
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INTRODUCTION
The co-operative bank of Rajkot ltd. popularly known as Raj bank is established on 25 - 11 1980 under the strong, effective leader ship of one of the national co-operative hero honor Shri Ramnikbhai Dhami with the intention of survive the common man. The local intensity of the bank in its customer centric approach, hassle free execution of the decision & technologies are their main difference from commercial banks, also high level of commitment at all levels of management & self committed ground level staff makes them different from other commercial banks. At present Raj bank has achieved a key position in the market of saurashtra. It has 11 branch in all over Saurashtra including main branch with the advanced technologies and educated staff, as it it said that In the emerging competitive business environment Co-operative banks who adhere to strict Financial discipline. Only will survive On this basis at present Raj bank is becoming more prestigious in the banking sector.

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CORPORATE MISSION
Survive to the common man. Enhance the value of share holders. Emerge as a symbol of public trust & confidence by creating a positive image. Maintain excellence in operation & management by bringing in transparency & integrity. Develop & motivate human resource there by cultivating professional culture in the banking operation. Ensure speedy & satisfactory customer services through continuous product innovation & aggressive marketing strategies. And the last but not least that is. To assist the weaker section of the society Is the primary motto of the Raj Bank.

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THE EXECUTIVE COMMITTEE

Sr.
1 2 3

Designation
Chair Man Vice Chair Man Managing Director Joint Managing Director

Name
Ramnikbhai Sejpal Bhanjibhai Patel Ramnicbhai Dhami

Occupation
Industrialist Industrialist Advocate ------

Kamalbhai Dhami

5 6 7 8 9 10 11

General Manager Director Director Director Director Director Director

Satyaprakash Khokhara Kiritbhai Kamdar Manubhai Nasit Manharbhai Shah Chandubhai Pamphar Jamnadas Faldu Chandrakantbhai Patel

-----Architect Industrialist Businessman Charted Eng. Industrialist Industrialist

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12 13 14 15 16 17 18 19 20 21

Director Director Director Director Director Director Director Director Director Director

Govindbhai Khunt Dr. Vallabhbhai Hirani Gopalbhai Karia Shsikantbhai Maheta Shirishbhai Dhruv Madhusudan Donga Muljibhai Chauhan Bakulbhai Zalavadia Lilaben Dhami Arunaben Chudasama

Businessman Doctor Businessman Builder Engineer Industrialist Govt. Contractor C. A. Social Worker Social Worker

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BRANCH NETWORK & STRUCTURE

1 Panchnath Road Branch ( With ATM) Sahkar Sarita Panchnath Road Rajkot 1. Phone : 2233722, 2234454 At Your Service From : 25111980 ( RBI Licence No. ACD.Gj.219 Dt :- 12081980) Mr. D. M. Dave Mr. S. K. Makwana Mr. N. S. Patel Mr. S. M. Kalyani Mr. K. D. Dalsania 2 Dhebarbhai Road Branch Near Trikon Baug, Rajkot 360 001. Phone : (0281) 2236766, 2227948 At Your Service From : 10-041989 ( RBI Licence No. UBD.BL 1937 Dt. 261087) Mr. B. P. Vekaria Mr. U.S. Padalia Mr. J. C. Solanki Manager Asst. Manager Asst. Manager Manager Dy. Manager Dy. Manager Asst. Manager Asst. Manager

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Saurashtra Uni. Road Branch (With ATM) Saurashtra Uni. Road, Rajkot 360005 Phone : (0281) 2573600, 2573601 At Your Service From : 05041993. ( RBI Licence No. UBD. AH/4 Dt. 12081994) Mr. R. S. Boda Mr. V. N. Maheta Mr. N. R. Boda Mr. V. H. Chavda Manager Asst. Manager Asst. Manager Asst. Manager

Jasdan Branch Jeram Plot, Chitalia Kuva Road, Jasdan 360050. Phone : (02821) 220830. At Your Service From : 16011996. ( RBI Licence No. UBD. AH/95 Dt : 09-08-1994) Mr. H. T. Joshi Mr. Z. P. Kalkani Asst. Manager Asst. Manager

Morvi Branch 1, Kalika Plot, Ravapar Road, Morvi 363641, Phone : (02822) 230920. At Your Service From : 05-06-1995 ( RBI Licence No. UBD. AH/96 Dt : 09-08-1994) Mr. S. V. Patel Mr. M. C. Vadaviya Dy. Manager Asst. Manager

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Jetpur Branch (With ATM) Kanakai Plot, Jetpur -360 370 Phone : (02823) 223151. At Your Service From : 16-01-1996 ( RBI Licence No. UBD. AH/94 Dt : 09-08-1994) Mr. M. K. Sheth Mr. V. K. Siddhpara Dy. Manager Asst. Manager

Upleta Branch Raj Marg, Upleta 360 490 Phone : (02826) 222955. At Your Service From : 15-01-1999 ( RBI Licence No. UBD. AH/334 Dt : 19-06-1997) Mr. S. M. Virapara Mr. R. J. Lunagaria Asst. Manager Asst. Manager

Gondal Branch Kailash Complex, Kailash Baug, Gondal 360 311. Phone : (02825) 223143 At Your Service From : 15-01-1999. ( RBI Licence No. UBD. AH/348 Dt : 25-09-1997) Mr. H. J. Pipariya Mr. R. M. Chuhan Asst. Manager Asst. Manager

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Sahakar Society Area Branch Hasan Wadi Main Road, Nr. Trishul Chowk, Rajkot 360 002. Phone : (0281) 2363536 At Your Service From : 26-01-2002. ( RBI Licence No. UBD. AH/610 Dt : 10-08-2001) Mr. K. R. Viradia Dy. Manager

10

Raiya Raod Branch Omkar Towers, Opp. Nirmala School. Rajkot -7. Phone : (0281) 2589494. At Your Service From : 27-01-2002. ( RBI Licence No. UBD. AH/608 Dt : 10-08-2001) Mr. D. V. Maheta Manager

11

Junaghar Branch (With ATM) Sardar Bhavan Maharshi Arvind Marg, Junaghar 362 001. Phone : (0285) 2621313 At Your Service From : 31-10-2003. ( RBI Licence No. UBD. AH/642 Dt : 28-05-2003) Mr. Sarfaraz Munshi Asst. Manager

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AWARDS & ACCOLADES

1) Zero NPA excellence bank award given by Mr. Ghanshyambhai Amin 2) Sahkar Ratna award to managing director Mr. Ramnikbhai Dhami given By Mr. Jayrambhai patel & Mr. Vallabhbhai Kathiriya 3) From beginning Raj bank has been awarding As Audit calls A By district register.

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CORPORATE GOVERNANCE & RAJ BANK

As Co-operative banks come under common law but then also the banks have to follow such guidelines of the RBI. The prudential measures have been stipulated by RBI for the urban co-operative banks according to which the position of Raj Bank is as follow.

Prudential norms of RBI

Capital adequacy ratio is to Maintain at 9%. Prohibition on advance Being made to share booker. Prohibition on advance against shares & debentures. Maxi. 2% debt can be Obtain from call money Market (This 2% will be on the deposit of the P. Y.)

Raj Banks position

Raj Bank has maintain this Ratio at more then 31%. Raj Bank has never made Such advances. Raj Bank has never made Such advances. Raj Bank has never borrowed any debt from call money market from the date of incorporation.

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Prohibition to keep fix deposit With other urban co-op. bank. Urban co-op. bank. It is compulsory for nonScheduled co-op. bank To invest 15% of NDTL in Govt. approved securities. Scheduled co-op. banks should compulsorily invest 25% in govt. & other approved govt. securities.

Raj Bank has never maintainEd fix deposit with any other

Raj Banks investment in such type of security is more then 25%.

Inspite of Raj Bank is non-scheduled bank, it's investment in such Securities are more then 25%.

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RELATION SHIP MANAGEMENT

The importance of relationship can not be measurable in our life. In our life we have to maintain such relation, we can not across it. In earlier we use to call it maintenance for relation but now a days it is being called as relationship management. Without maintaining relation, firm can not go further or can not get development. Because without customer or employee, who will give importance to the organization. But an organization needs to keep its eye on every side and need to manage every relation. For every organization there are main three relations such as customer relation, employee relation and social relation.

EMPLOYEE RELATION
To provide best service to customer it would be difficult task for Raj bank if there would not proper human resource management. In success of any organization, relationship between employee and employee, employee and management employee and labours etc. should be good. Raj bank takes care its employee just like a family member. And not only looks after their intelligence but also takes care of there emotional and spiritual quotient. Bank has maintain healthy relation with there employee, bank also tries to satisfied there need.

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 SOCIAL RELATION
Bank has maintained health relation with society also. Society consist of other bank, government, businessman etc. bank has to maintain good relation with societal factor. So by this way for Raj bank relationship management is as important as other management and as a result of good relationship management, today bank has very strong market position and goodwill in society.

CUSTOMER RELATION
Raj bank believes that customer satisfaction is its best reward by providing best services so customer is a king for Raj bank. Bank always tries to maintain healthy relation with customer.

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Service Of The Raj Bank

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INTRODUCTION
It was a time when a function of the banks limited to the collection saving from the public & lending to the people who are in of money. But in modern age, now its not like that , in modern time banks have become the important part of colony due to the only expansion in the function. One reason for development in banking function is that the developing of the market means todays competition & to maintain position in the market banks they have to develop their services. The modern function or the services provided by the banks are as follows. To collect spare funds from peoples saving & pay them interest. To make these funds available to the businessman & industrialist as loan & advance. They charge interest from them. They also help in assisting international trade by arranging exchange of currency to another one. Banks render services for the welfare & development of weaker section of the society, they help in setting up small industries, cottage etc. Banks help farmer to buy tractors & other agricultural equipments, middle class people to buy home appliances like T. V. & provide finance for house. In RAJ Bank out of these services most of services are being served. Not only that but also they are providing ATM facility, Cash card facility, Demand draft facility & many other services.

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CURRENT DEPOSIT
Current account refers to regularity of transecting in account with in banking hours on all working day. The bankers liability in this regard is to honor all the demand of the customer to the extent to which his account shows a credit balance. It is because of this obligation current account deposit is known as bankers demand liability & in order to fulfill this liability they keeps sufficient cash ready every moment. A current account is an account which is generally opened by businessmen, companies, institutes, corporations, industrialists etc. Who have huge working capital in their hand. Who are interested in keeping money safe. Who transect with their banker daily. Who received and make payment usually through cheques. Who utilize the agency services of the banker frequently Who are engaged in large scale business activity, social services and government activities.

At present in RAJ BANK the condition of current account is as under.

No. of depositors 10,748 total deposit amt. 30, 32, 78,368.52 % of total deposit 10.59%

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Features of the current account And Facilities provided to the current account holder.
Easy Procedures for account opening. 24 hours banking facility through their ATM centers. Personalized services & special facility by the way of telephonic inquiry. Regular bank statement is provided at home through post or E-mail. Special facility of over draft cleans O.D. & secured O.D.

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SAVING DEPOSIT
Saving deposit account is an ideal account or those who 2have money to save but who can not advantageously invest them any where else as their saving are not of much significance to the capital market because their saving are too small. This amount is therefore meant of smaller saver. The account is therefore encourages small saving and tries to forge a saving habit in the general public. The attitude to save is important which this account tries to create and thus mobilize such small savings for greater social good saving deposits account is for that section of society and put to fruitful utilization.

Features of the saving deposit

Restriction on with drawl of amount. Restriction on deposit of amount. Payment of interest.

At present in RAJ BANK the condition of saving deposit is as follows.

No. of depositors 50,314 total deposit amt. % of total deposit 71,23,43,463.83 24.87%

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Extra features to the saving account holder of the Raj Bank.

Attractive Rate of interest (3.5%) Easy procedure for account opening. 24 hours banking facility through their ATM centers. Personalized services & special facility by the way of telephonic inquiry. Regular bank statement is provided at home through post or E-mail. Attractive computerized passbook. No charges for saving account holder.

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TERM DEPOSIT
This account attracts those customers who have money invest for a longer period but do not want to take much of risk. Such person prefers to deposit with commercial banks for a specified period at a specified rate of interest. The interest rate varies from one period to another. A deposit of 15 days attracts a smaller rate of interest and deposits for 5 or more years. The highest rate of interest. The period for which deposits are to be made depends upon the depositor himself. However, once a decision is taken by the depositor any money deposit usually he is not allowed to withdrawal the same before the interest earned till that date or accepts a lower rate of interest than stipulated at the time of deposits.

At present in RAJ BANK the condition of the term deposits is as under.

No. of depositors 77,750 total deposit amt. 182,84,67,000.00 % of total deposit 63.84%

Interest rate structure on fixed deposits.

Between 6% to 8% 8% to 10% 10% to 12% above 12% No. of depositors 40,626 17,997 15,365 3,755 Total deposit amt. 49,70,61,053.63 68,02,61,362.86 50,57,25,251.47 14,54,19,938.10 % of total deposit 17.35% 23.75% 17.66% 5.08%

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RECURRING DEPOSIT
To encourage regular saving habits in the depositing public the bank in the country provide an opportunity to them to save regularly. According to their capacity and need and earn more than what saving deposit accounts offers to them. The following are the main features of the recurring deposits. The deposits are made every month of fixed amount say Rs. 5,10,15,25 and so on. The deposit is made for fixed period say 6, 12,24,36,48,60,72,84, months and so on. The account can be transfer from one bank to another in the country on request by customer. This account can be opened by every one competent to enter in to contract including the minor one. A passbook is supplied to the customer and entry is made there in every month after every deposit. The account attract higher rate of interest. The customer is allowed to raise loan against his recurring deposit account to the maximum limit of 75% of the deposit he has made till the date of raising the loan. As far as concerned with recurring deposits at the Raj Bank, than these are the features are the provided to the recurring deposit holders. Easy and simple account opening procedure. Speedy and timely services. Account can be opened with any convenient amount, Attractive rate or interest and special rate for senior citizenship.

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CHILDREN DEPOSIT
The main purpose of such account is to develop a habit of saving in student community. The main features of this account are as follows. The student can deposit a minimum of paisa. The banks branch is usually operated in the school premises. The student may withdrawal the money as and when they choose to do so. On a balance of Rs.5 and above interest at saving deposit account rate is allowed.

Features of the children deposit scheme at the Raj Bank.

A special scheme for school and college students. Attractive rate of interest. Special gift will be provided to them on extra ordinary performance in academic and other curriculum activities. No withdrawal will be allowed from such account point to maturity. Attractive passbook will be provided with their printed name on it.

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BUSINESS LOAN
Any kind of traders, businessmen or a person, who is going to start a new business, can get business loan. Bank grants business loan for the purpose of fulfillment or short term working capital need in the business. Bank grants this type of loan Rs. 2 lacs to maximum 25 lacs. Bank charges rate of interest as under.

CREDIT RATING
Prime AAA AA A

ROI
BLPR + 00.00% BLPR + 00.25% BLPR + 01.25% BLPR + 02.25%

BPLR 10.75% w.e.g. 01-08-2004

A person who is gating business loan he has to mortgage land, building or any other fixed assets. Document of properties have to be given to the bank by a person. Bank takes all these documents as a security. A person has to give reference of two people who are depositor in the Raj Bank as guarantors.

NECESSARY DOCUMENTS ARE

Application form, other documents specified in the application form, if applicant want mortgage than he need to submit the whole file of that assets valuation report of that assets. Proof of guarantors income (one time only).

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MEDICAL EQUIPMENT LOAN

Any registered medical practitioners whose age should be 25 years to 55 years and should have at least one year experience. Purpose of this loan is to build a new clinic, to purchase other medical equipments or any property for clinic. Bank grants this loan up to 3 crores. Rate of interest charged on this loan is 10% to 11%. As a security a person has to mortgage any fixed assets whose reliable market value is enough in proportion of loan. Loan repayment period is maximum 6 years.

TERM LOAN
It is one of the major sources of debt finance for a long term project. Term loans are generally repayable in more than a year but less than 10 years. These loans are offered by all Indian financial institutions. Term loans are generally secured through a first mortgage or by way of deposit of title deeds of immovable properties. Any business operator for the purpose of purchase necessary building, build a building or purchase a new machinery. For the purpose of this loan is to invest in long term capital. Bank grants these loan 2 lacs to 25 lacs. Rate of interest charged on this loan is 10% to 13%. As a security a person has to mortgage any fixed assets whose reliable market value is enough in proportion of loan.

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MORTGAGE LOAN
Any kind or traders, businessmen or an industrialist can get mortgage loan. Bank grants mortgage loan for the any purpose. Bank grants this type of loan Rs. 50,000 to maximum 10 lacs. Bank charges rate of interest on this loan is 12.5% to 13.5%. A person who is gating mortgage loan he has to mortgage land, building or any other fixed assets. Document of properties have to be given to the bank by a person. A person has to give reference of two people who are depositor in the Raj Bank as guarantors. Loan repayment period is 3 years to 7 years.

SECURED OVERDRAFT
Any kind of traders, businessmen, personally, professional & industrialist can get secured over draft. Bank grants secured overdraft for the purpose of fulfillment or short term working capital need in the business. Bank grants this type of over draft Rs. 1 lacs to maximum 100 lacs. Bank charged interest on this over draft is 10.75% to 14%. As a security a person has to mortgage any fixed assets whose reliable market value is enough in proportion of over draft. A person has to give reference of two people who are depositor in the Raj Bank as guarantors.

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CLEAN OVER DRAFT

Any kind of traders, businessmen, personally, professional & industrialist can get clean over draft. Bank grants secured overdraft for the purpose of fulfillment or short term working capital need in the business. Bank grants this type of over draft Rs.50, 000. Bank charged interest on this over draft is 12%. As a security a person has to mortgage any fixed assets whose reliable market value is enough in proportion of over draft. A person has to give reference of two people who are depositor in the Raj Bank as guarantors.

PERSONAL LOAN
Any localize person can get this loan. Bank grants personal loan for the purpose of purchase fridge, T. V., washing machine or any other thing which can be useful for home management. Bank grants this type of loan Rs. 10,000 to maximum 50,000 or 70% to 90% of the quotation price of the product. Bank charges rate of interest on this loan is 11%. Applicants need to make such documents of purchase products of purchased product in favor of the bank as a security. A person has to give reference of two people who are depositor in the Raj Bank as guarantors. Loan repayment period is 3 years to 5 years.

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VEHICLE LOAN
Any kind of traders, businessmen, personally, professional or any person can get this type of loan. Bank grants personal loan for the purpose of purchase old or new vehicle for personal or business use. Bank grants this type of loan Rs. 15,000 to maximum 10, 00,000 or 70% to 90% of the quotation price of the product. Bank charges rate of interest on this loan is 11%. Applicants need to make such documents of purchased vehicle in favor of the bank & in RTO applicant need to register as a hire purchased vehicle as a security. A person has to give reference of two people who are depositor in the Raj Bank as guarantors. Loan repayment period is 3 years to 7 years. Quotation of vehicle, proof of guarantors income (one time only), RTO certificate & other documents are required with the application form.

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LOAN AGAINST NSC, KVP, LIC.

Any person who should have share certificate on his own name or any LIC policy holder. Bank grants loan for any purpose. Bank grants this type of loan 70% to 90% of the price of the NSC, KVP, LIC. Bank charges rate of interest on this loan is 11.50%. Applicant need to give share certificate or LIC policy. Applicant has to repayment this loan within the due date of that certificate or policy. Application form, other documents specified in the application form and if an applicant has to give Share certificate or policy than need to sign in favor of the bank.

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HOME LOAN
Any localize person can get this loan. Bank grants personal loan for the purpose of purchase or to build home. Bank grants this type of loan Rs. 15,000 to maximum 15,00,000 or 70% to 90% of the price of the home. Bank charges rate of interest on this loan is 11.50%. Applicants need to make such documents of purchased home in favor of the bank & bank takes all the documents as a security. A person has to give reference of two people who are depositor in the Raj Bank as guarantors. Loan repayment period is 3 years to 15 years. Application form, other documents specified in the application form and if an applicant want to mortgage any assets than he need to give whole file of that assets and title report through advocate approved by bank only proof of guarantors income (one time only).

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SAFE DEPOSIT VAULT

Safe Deposit Vault (locker facility)
At Raj bank there is a proper locker department at ground floor here locker facility has been providing to the customer. Customer can keep all the ornaments, important documents and many other papers and many things. For every bank this facility is become just like primary function and for providing best customer service Raj bank is managing this service too. Any shareholder or depositor can easily get their personal locker of bank. There are mainly three types of lockers at Raj bank Small size locker, Medium size locker, and large size locker. And for to maintain best services Raj bank has different department and enough staff for locker department. Different charges and deposits for different locker are as under.

Types of locker
Small Medium Large

Yearly rent
200 250 300

Deposit
5000 10000 15000

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And for the management of this locker department they are mainly follow these activities.
They have locker attendance register in which the identification, address, full name and signature of locker holder are being maintained. Before any locker holder open his/her personal locker the staff member has been verifying the signature of that parson and than they allow him to open locker. They are also maintained time register in which the entry time and exist time a locker holder is being written. So this is very essential function for Raj Bank.

CASH CARD FACILITY

Cash card facilities totally new and plastic product is started by only Raj bank among the nation by cash card any customer can every with drawl amount up to Rs. 15000 from ATMs by cash card. There are no charges for cash card and in also one silent feature is there is no minimum balance require for cash card system. It is a unique facility of Co-Operative bank of Rajkot ltd. Cash card is given instead of token for the payment of cheques.

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ATM FACILITY
ATM has given a new dimension to banking by giving rise to self service banking. Customer have long been constrained by conventional banking services which have been characterized generally by fixed location and fixed timing on the other hand. Customers not desiring to keep much money on them expect their money to be available to them. Whenever and wherever they need money, 24 hours banking services is available for any time. ATM can be used for withdrawal of cash. For Raj bank it is a matter of great proud that it is pioneer in introducing ATM in the entire Saurashtra region in Co-Operative banking sector. At present Raj bank has four ATM. By this ATMs any customer can easily withdrawal maximum 10000 per day.

CHEQUE DEPOSITORY SERVICE

For the purpose of providing best customer service with advanced technologies to their customer, Raj bank has also started Cheques depository service through cheques depository machine. This service provided to the customer 24 hours of 365 days. CDM facility started on 17th July 2004 at main branch. Now any customer can easily deposit cheques through CDM at any time and any day without filling big slips and without standing in big queue.

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H. R. M. At The Raj Bank

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INTRODUCTION
Human resources in any organization, be it public private of Co-Operative constitute perhaps the most vital assets of that organization. An organization will fail if its human resources are not competent to execute the work assigned to them. There is no getting away from fact that human resources represent a subsystem which dominates all other sub system to the organization. Moreover, people are the only assets of an organization that appreciate over a period of time while all the other assets depreciate. The more an organization is investing in human resources, the greater the return from the investment is likely to be and it has been rightly pointed to in one of the books of inter national Co-Operative alliance The gains accruing out of structural reforms can be best capitalized only it the personnel maintained by the Co-Operative institution are in a position to execute the policies effectively. This implies the need and necessity of proficient and capable human resources which is on e of the primary aims of ht human resource management. According to national institute of personnel management of india Personnel management is that part of management concerned with people at work and with their relationship within the organization it seeks to bring together men and women who make u an enterprise enabling each to make his own best contribution to its success both as an individual as a working group.

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H. R. POLICY AND PROGRAMMES

A sound foundation for selection of the right kind of human resources is laid with the formulation of sound human resources policies. According to William R. Spiegel a human resources policy can be defined as, A body of principles and rules of conduct that governs the enterprises in its relationship with its employees. Thus the sound personnel policies set the tome for proper administration of the personnel programmers, So as to achieve the objective of the organization. As Raj Bank is one of the leading Co-Operative bank in the Co-Operative sector, though its performance is very good but than also such policies for human resources they can not make by their own. It has to follow the rules of policies given by the government and RBI so in the matter of the personnel policies Raj Bank is restricted to some level. Than also the bank have adopted a policy of recruiting only CA and MBA for their management level for better management. So, by this way where they get chance they are making or improving personnel policies at Raj Bank.

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The next important stage in the selection process is the human resource planning. Planning applied in the field of personnel it is the comprehensive and on going process. Broadly conceive human resource planning as Thomas H Patten Jr. states, Human resource planning is process by which an organization ensures that it has right no. and kinds of people in the right place at the right time doing the things which they are economically most useful. In the Raj bank there is a very educated staff as it is concerned with the human resource planning recently they has adopted policy of selection only C.A. & M.B.A. For their human resource has as far as concerned with the human resource planning. There is no long term planning but at a time or requirement of staff they used to recruit staff either out side or from with in the firm through transfer or promotion.

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RECRUITMENT
Among the function of human resource manager, one man function is to procure best people for their organization, means search of prospective employees to suit the job recruitment. A firm has to pass through well and good recruitment process for having best human resource this recruitment can be possible through many sources. A firm can recruit proper candidate mainly through two success recruitment sources these are as under.

Recruitment Sources
Internal sources
1) Transfer 2) Promotion 3) Relative & friends

External sources
1) Advertisement 2) Education institutes 3) Placement agencies 4) Labours contractor

In case of Raj bank, the main source or recruitment is daily news paper advertisement. They also recruit employees by transfer and promotion. Generally as per the recruitment of the job they give advertisement in newspaper and collect the pool of application.

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SELECTION
Managing people is not easy but it can be made easier if you make sure that you have selected the right people in the first place. And also it said that selection of people is easy but selection of right people is difficult task. The selection procedure is concerned with securing relevant information about an applicant is secured. The objective of selection process is to determine whether the applicant meets the qualification for a specific job and to choose the applicant who is most likely to perform well in that job. Thus an effective selection program is a non random process because those selected had been choose on the basis of the assumption that they are likely to be better employees then those who have been rejected. Selection process or activities typically follow a standard pattern being with an initial screening of applicant, interview and concluding with final employment decision. The selection procedure of raj bank is quit simple. The stages of including in the selection process are as follows. New paper advertisement Receipt of application Screening Arrangement and interview Selection Placement and confirmation

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ORIENTATION
After the selection of employee, management of the firm has to pass through such process. So new employee can be aware of the atmosphere of the firm and also can be familiar with the other employee. This process is called orientation or induction. In any organization this process performs very vital role because this is the only process which can create better environment in the organization and a new comer can be aware about his working condition, his area of responsibility and everything about organization. Proper orientation process can be beneficial to both, a new comer as well as organization.

PLACEMENT
Once an employee has been selected he should be placed on a suitable job. Putting the right man at the right job is as important as hiring the right person. Placement is a process of assigning a specific job to each one of the selected candidates. It involves assigning a specific rank of and responsibilities of an individual. It implies matching requirement of a job with the qualification of a candidate. In other words, placement is the determination of the job which an accepted candidate is to be assigned and his assignment to the job. As Raj bank is very careful about this process. And one thing is that, at the time of requirement only they hire new employees. So hire it is specified that for which job they are recruiting. After the final selection, they have been marking the job of the new employee.

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EMPLOYEE REMUNERATION
Remuneration is the compensation an employee receives in return for his or her contribution to the organization. Remuneration occupies an important place in the life of an employee. Standard of living of employee, states in the society, motivation, loyalty and productivity depends upon the remuneration. For the employee remuneration is significant because of its contribution to the cost of production. For human resource management, remuneration is the major function. The HR specialist has a difficult task of fixing wages and wage differentials acceptable to employee and their leaders. There are mainly 3 three components of employee remuneration. These are as follows.. 1) Wages and salary, 2) Incentives and 3) Non monitory benefits. As far as it is concerned with the Raj bank, there is a specific policy of employee remuneration formed by RBI and govt., and it self also. So and also for the management of employee remuneration there is a specific administration department which cares of wages and salary and all things about remuneration.

WAGES & SALARY :: Wages represent Hourly rates of pay and, salary refers to

the monthly rate of pay irrespective of the number of hours put by an employee. Wages and salaries are subject to annual increments they differ from employee to employee and depend upon the nature of job seniority and merit.

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INCENTIVES ::Incentives are also called payment by result are paid in

addition to wages and salaries. Incentives depend upon productivity, sales, profit or cost reduction efforts there are. 1) 2) Individual incentive schemes and Group incentive program Individual incentive are applicable to specific employee are applicable to specific employee performance. Where a given task demands group effort for completion, incentives are paid to the group as a whole. The amount is later divides among incentives refer to variable rewards granted to the individual in terms of changes in specific results in organizational setting besides wages and salaries, employees are paid incentives depending upon their performance. Incentives payment is quite substantial and is paid as regularly as wages and salaries. The primary advantage of incentives is the inducement and motivation of workers for higher efficiency and grater output. It option schemes and the like perquisites are offered to retain competent executives.

NON MONITORY BENEFITS ::These include challenging job responsibilities. Recognition

of merit, growth prospects, competent supervision, comfortable working condition and job sharing. As far as Raj Bank is concerned that is specified department who cares about employee remuneration. Apart from salaries they are also provides bonus (one month salary) also provides provident fund scheme and gratuity and also VRS scheme, group insurance too.

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TRAINING & DEVELOPMENT

Training is the process of increasing the knowledge and skills for doing a particular job. It is an organized procedure by which people learn knowledge and skills for a definite purpose. The purpose of training is basically to bridge the gap between job requirement and present competence of an employee. Training is aimed at improving the behavior and performance of a person. It is a never ending or continuous process. In any organization their should be proper training program to improve employee resources, as well as organization development. Training involves helping an individual learn how to perform his present job satisfactorily. On the other hand development is long term education process utilizing a systematic and organized procedure by which managerial personnel learn conceptual and the critical knowledge for general purpose. So in the any organization the importance of the training and development is very vital, nobody can ignore it. As far as it is a continuous process there. training and development is required. At present every employees of the firm are getting trained by its own EDP department n advanced computer technologies. They are also organizing internal seminar for improvement of the firm and also they are sending their employees outside like Gandhinagar, Ahmnedabad,Delhi, Pune and Mumbai to o\o for the better development. As it is banking firm there is continuous training and development program organized by other banking firm and association for improvement of whole banking sector in India. Raj bank is working with advanced technologies. At every step better

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PROMOTION AND TRANSFER

Mobility and flexibility in the workforce are necessary to cope with the changing requirement of an organization. Job changes provide necessary flexibility, employees move from one job to another one through transfer, promotion. So the importance of employee movement in the organization in very important.

Promotion:: Promotion refers to advancement of an employee to a

higher post carrying grater responsibilities higher status and better salary. It is the upward movement of an employee in the organizations hierarchy to another job commanding grated authority higher status and better working condition when an employees is assigned a higher level job with more pay and powers he is said the promoted promotion may be temporary or permanent depending upon the needs of the organization so this is just like tool which can be useful in two way one way it is a motivation second way it becomes a source of recruitment from with in a organization so the promotion in the organization is who is present as other activities in case of the Raj bank as it is CoOperative sector they have to follow promotion policy of government is merit cum seniority in case of promotion they are not independent too.

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Transfer::A transfer refers to a horizontal or literal movement of an

employee from on a job to another in the same or organization with out any significant change in status any pay. It has defined as A literal shift causing movement of individual from one position to another. Usually without involving any marked change in duties as responsibility will needed of compensation. The need for transfer may grid due to several reason transfer mane of which the following objective. To meet organizational need To satisfy employee needs To better utilize employees To make the employee more versatile To adjust the work force To provide relief To punish employees. The transfer is beneficial in many ways the benefits of the transfer is as under Increase in productivity and effective need of the organization. Greater job satisfaction to employees Stabilize fluctuation work needs Improve employee skills Remedy for faulty placemen Develop employees for further promotions Avoid monotony and boredom. So, the transfer is also important as far as concerned with Raj bank there is no specific transfer policy but according to requirement and for convenience of the employee they use to make transfer.

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Marketing Department

At Raj Bank
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INTRODUCTION
Today, marketing is spread in every field of like hospitals, services, goods even politics and many more. In banking sector too the importance of marketing also can not measurable, still it has not developed in public sector it is only limited to foreign banks and private sector. The reason for success of foreign in India is only best marketing efforts. Today in banking sector there is a cutthroat competition among public sector, private sector and foreign bank. Marketing is a human activity directs at satisfying the needs and wants of customers, there are five stages of bank marketing firstly marketing g is advertising, sales promotion and publicity, secondly marketing is smiling and Co-friendly atmosphere, thirdly marketing is innovation like the ATMs or cheques with drawls on fixed deposits, fourthly marketing is positioning. When all banks advertise and innovate, they look alike so, they should try to position themselves differently, even through symbols, logos or aggressive advertising so that the customer can distinguee between one bank and another and finally marketing is analyzing, planning and control. At Raj bank though there is no specific marketing department. for marketing of different services but providing vest services to their customers and getting good customer satisfaction, and doing such efforts of marketing like promotion activities they are in directly getting benefits of the marketing. Today they are also planning for such continuous marketing efforts. And with in the few years they will have aggressive marketing department.

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PROMOTIONAL ACTIVITIES
Promotion tools are also essential in the banks marketing mix. We need personal selling in customer contact, development, personal service. And so on. Similarly, bank marketing program need advertising as mass communication tool. The bank is a sponsor. It sends a message to prospective buyers (the audience) by means of a medium (The carrier of the message). An advertisement in bank marketing is a promise3 a promise of satisfaction to prospects who buy or use the service offered by the bank or who are willing to patronize the bank. Banks are using all media of advertisement such as newspaper, radio television, magazines etc., for advertising their services and for getting the business. Bank marketing also uses sales promotion devices such as point of purchase materials, advertising specialties (ball pens, calendars, diaries, notes pads etc.) brochures and booklets describing bank services, etc. a bank has also to use public relation as mode of promotion to build up and maintain its bright image in the community. As far as it is concerned with promotion activity than Raj bank is not doing any personal selling but bank is believe in very strong goodwill and also best customer satisfaction they are using advertising they are giving their advertisement in news paper like Sandesh, Gujarat samachar etc. and also in banking magazine and for publicity they are organizing such shows like recently they have organized three bug shows. First in Morvi and second and third in Rajkot with Sunidhi Chauhan and Anu Malik and second with great Andnd Murti Guruma. By this way be using very simple and less expenses tools of marketing like advertising and publicity. They are getting goods response from society and for Raj bank work of work of month is their best publicity.

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MARKETING RESEARCH AND INFORMATION

Good marketing decisions are not made in a vacuum. Hence, even in bank marketing. We need marketing research and information to enable bank executive to make sound decisions. The increase in the use of marketing research in bank marketing is due to two forces: competition pressures to be right, and Customer orientation in marketing planning and program. Banks are now establishing a separate marketing organization. Conduction marketing research, setting up sales training program and adopting sales promotion divides promotion devices to attach customer we have special bank advertisement through radio. T.V. and newspapers. Marketing research may be defines as The scientific and controlled process of gathering of none routing, marketing information, helping management to solve marketing problems. As far as it concerned with the marketing research process at Raj bank. They have been continuously doing such research from beginning. But one positive point for marketing research is that they not doing any big expenses for marketing research and for executives. Banks staff member themselves goes to market and gathers requited information or data. Such information or data they are collection from direct RBI or other banks. So, by this way they are getting benefits by using marketing research process.

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Finance
Department

At Raj Bank
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INTRODUCTION
Finance is the fuel of administration. Without adequate financing no business enterprise can raise its potentials for growth and success. And it would be worthwhile to recall what Henry Ford once remarked Money is an arm or leg. You either use it or lose it. This statement though apparently simple and quite meaningful, it brings home the significance of money or finance. In the modern money oriented economy finance is one of the basic foundations of all kind of economic activities. Finance management is indeed the key to successful business operations. Without proper administration and effective utilization of finance, no business enterprise can utilize its potentials for growth and expansion. Organization and control of these function is important for all types of business units. Specially in public undertaking massive investment has so far been much less productive, it is necessary to organize the finance functioning such a manner that should help the business in achieving its basic objective with minimum cost. According to Hoagland Financial management is

concerned mainly with such matter as how of business corporation raises its finance and how it make use of that.

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FINANCIAL PLANNING
Planning is very necessary for the smooth running of the business can not be carried on without planning. Planning means deciding in advance what is to be done for each functional area of management. The planning of each area should link to the objectives of the organization. Financial planning means deciding in advance the financial activities to be carried on to organization. So, the basic purpose of financial planning is to make sure that adequate funds are raised at minimum cost and they are used widely. A proper planning of the business on one hand and to allow a fair return to their contribution on the other.

Thus financial planning includes the following

1) 2) 3) Determination of financial objectives. Formation of financial policy. Development of financial procedure. In Raj Bank, the financial planning has been done through proper management in various areas like liquidity planning, investment planning, profit planning, cash management etc.

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CAPITAL STRUCTURE OF THE RAJ BANK

Capital structure decision is yet another important area under financial management. Capital structure refers to the mix or proportion of firms permanent long term financing represented by debt preference must ensure the maximization of wealth of shareholders so even the capital structure decision must be taken in the light of wealth maximization objectives. That particular mix of debt and equity which maximizes the value of the firm is known as optimum capital structure in simple word capital structure refers to the composition of capital.

Capital structure = Long term debts + Preference share

capital + Equity share capital + Reserves.

1. 2. 3. 4. 5.

Capital Reserves & surplus Deposit Borrowings Other liabilities & provision

Rs.

4,60,00,000.00

Rs. 45,41,50,000.00 Rs. 2,86,41,00,000.00 Nil Rs. 2,70,00,000.00

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CAPITALIZATION
Capital plays an important role in any business at the time of corporation of the business, it is the first problem before promotes to decide how much capital is to be required and in what form. It is not an easy task. A financial plan is to be prepared form the purpose of explaining the abort term and long term needs of finance to the company. Sever consideration would be kept in mind such as cost of capital fair return to the contributors of capita risk involved flexibility etc. while taking decision in this regard it required proper capitalization. Proper capitalization reveres to the total amount of capital required in the long run to run the business smoothly capitalization uses in its quantities aspect and reveres to the amount at which a companys business can be valued most of the traditional authors define the terms in this sense the sum total of the par value of all share. After definition of capitalization are being reproduces below in order to understand the term well. E.F. Lincoin, The amount of capital at any time should not excepted none should it be less than the amount required in both situation it there firm will be loser. These conditions are called under capitalization and for capitalization. In case the amount is hiring than it is required the company his have to pay more interest on the surplus capital are they rescuing the proper of the concern of the total capitalize not sufficient to discharge the function of the business the concern with not be in a position of even reasonable profits due to lack of funds it is there fore, necessary to have proper capitalization.

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CASH MANAGEMENT
Cash is the medium of exchange which allows management to carry on the various activities of the business on day to day basis. And management of cash is one of the most important answers of over all working capital management due to the fare there cash is the most liquid type of current assets. As such it is the responsibility of the finance function to see that the various functional areas of the business have sufficient cash were ever they require the same at the same time if has also it be ensured that funds are not blocked in the form of idle cash as the cash remaining idle also involves cost in the form of interest cost and opportunity cost as such the management of cash have to kind a mean between these two extremes of shortage of cash as well as idle cash. The basic objectives of cash management of are to reduce the operating cash balance requirement to maintain possible extent without affecting the routine transaction. For the management of cash flow statement is the most important tool cash low statement provided information about the cash ratio and payment of a firm for again period. It provides important information that compliments the profit and loss account and balance sheet.

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RATIO ANALYSES
Financial analyses of an organization depend to a large extent on the use of ratios. The technique is commonly known as financial ratio analyses. Ratio analyses is a very powerful analytical tool useful for measuring performance of an organization the ratio analysis helps the management to analyses the past performance of the firm and to make further projection. Ratio analysis is a process of comparison of on figure against the calculation of ratio relatively easy and simple task but the proper analyses and interpretation of the ratio can be made only be the skilled analysis. The ratio of The Raj Bank of the last year is as under.

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FINANCIAL INFORMATION
The liberalization of the financial sector is the key for the over all liberalization process. Gradually, the structure of the financial market itself has begun to change, in the changing Financial Market; The Co-Operative Bank Of Rajkot Ltd. has market the progressive growth and profitability both the financial year 2004-2005 which is reflected in the following Financing since inception:

(Rs. In Lacs) Particulars Members Share Capital Deposit Advances Net Profit Working Capital 31-3-04 27,400 Rs. 475 Rs. 2620 Rs. 1120 Rs. 805 Rs. 28100 31-03-05 29,100 Rs. 480 Rs. 2860 Rs. 1420 Rs. 810 Rs. 32425

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PROGRESS REEPORT
NET PROFIT
AMOUNT (Rs. In Lacs)

1000 780 750 500 250 0 2003

805

810

2004 YEAR

2005

INVESTMENTS

AMOUNT (Rs. In Crore)

200 150 100 50 0 2003 2004 YEAR 2005 125.5 130 147.5

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DEPOSITS

AMOUNT (Rs. In Lacs)

300 212 200 100 0 2003

262

286

2004 YEAR

2005

ADVANCES 200

AMOUNT (Rs. In Crore)

150 112 100 50 0 2003 2004 YEAR 92

142

2005

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NPA & RECOVERY MANAGEMENT

The core banking business is of mobilizing the deposits and utilizing if leading to industry. Leading business is generally encourages because it has the effect of funds being transferred from the system to products purposes which results into economic growth. However leading also carries credit risk which arises from the failure of borrower to fulfill its contractual obligation.

Meaning of NPA ::An asset is classifies as non performing assets (NPAs) if

dues in the form of principle and invest are not paid by the borrower for a period of 180 days however with effect from march 2005 defaulters would be differs to a borrower if dues are not paid for to days if any advance or credit facilities arranged to that borrower is non performing with out having any regard to the fact that there may still exist certain advances credit felicities having performing status.

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As the Raj Bank is concerned than there is gross NPA is ZERO since beginning and net NPA is also very nearest to ZERO. Today the net NPA is 00.26%. And for managing this NPA they constantly affording for the best and also the have centralized department for advances this is one of the result for having ZERO NPAs. And before granting any loan they used to concern the repay capacity of the applicant and for granting the loan every branch head a power to grant loan up to 2,00,000 lacs only. But more tan that amount that loan only by a permission of a main branch and management will grant and for they used to make credit report of that person in that report the name, history, business, annual income and other information to be prepared by C.A. of the bank or other staff members. And step by step procedure takes place. And for recovery they have very strong department. But according to them they only care at a time of granting the loan so, they have no need to very strong recovery and for recovery these are the steps followed by the bank. First by the telephone and that bank notice and than personal visit and tan notice through advocate and lastly they do government procedure through court.

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RISK MANAGEMENT
Risk management is the strategic tool, which helps I identifying, quantifying, monitoring and controlling risk. Risk management protects an organization from dying due to insolvency resulting from the adverse effects of risk. Though universally relevant it is of immense importance to a banking organization or financial institution. In view of the same Risk management is analysis here from the banking perspective. However with large corporate house establishing their own independent dealing rooms, risk management systems are no longer limited to banking organization.

Classification of Risks:Risk normally has to dimensions i.e. the quality of risk and

the quantity or risk. Quality of risk is essentially the probability of the risk during into an actual loss. Quantity of risk is the financial effect of the risk turning into a loss. Both these dimension are extremely difficult to measure, primarily because it is an estimation of the future, which is highly uncertain. To understand risk management it is extremely important to understand the various types of risks, their characteristics and their inter relationships.

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Liquidity Risk:Liquidity risk is essentially a result of adverse movements of other risks i.e. credit risk, interest rate risk, foreign exchange risk. Small information in the market about the liquidity problems faced by a bank may result into withdrawal of enormous deposits, thereby affricating the problem. Liquidity risk also includes rising of funds at an abnormal cost to need its commitments. Management of interest rate risk and liquidity risk is together knows as assets liability management. Thus asset liability management is a subset of the whole gamut of risk management tools.

Credit Risk:Credit risk is the most fundamental risk faced by a banking company. Credit risk is the risk of default by a borrower of funds or decline in the credit standing of a borrower. It is the most difficult to quantify due to the large amount of subjectivity involved in it. Thus credit risk management can assist in decision making; it can not be a substitute to the judgmental decision of a credit officer.

Market Risk:It is the risk of loss due to adverse movements in the market rates during the compulsory holding period having an impact on the portfolio held by market is also important in constantly determining the true worth of a collateral security provided by the borrower. Foreign exchange risk is often regarded as a part of the market risk, but may be bifurcated for facilitating better analysis.

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S. W. O. T. Analysis
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STRENGTHS ::Net NPA Zero since inception. Professional management & Co-Operate team spirit. Strong Brand equity. Fully computerization and Automation. Respectable ranking and position in Gujarats top CoOperative banks. Profitability and sound liquidity. Branches in all most developed parts of saurashtra.

WEAKNESS ::Lack of marketing expertise. Lack of modern management concepts. Sometimes communication gap is found which signs lack of professionalism. Lack of scheduled status which may affect expansion of their business. Lower volume of advances due to higher rate or interest. Strong need for a more disciplines, smooth and sophisticated. Environment for working and customer service.

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OPPORTUNITIES ::General insurance business at higher level. No. of branches can be increased in all overall state. After getting scheduled status we may apply multi state bank to expand their business. Introduction of various retail services. Tax consultancy can be provided by using the skills of the professional personnel and experienced seniors.

THREATS:Confidence crises in the co-operative banking sector can disturb the banks progress. Changes in govt. rules and regulation. Cut throat competition and entry of new foreign bank and its sound financial structure.

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Future Plan of Raj Bank

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VISION - 2010
To maintain excellence in operation & management by bringing I transparency & integrity. To emerge as symbol of public trust & confidence by creating a positive image. To ensure speedy & satisfactory customer services through continuous product innovation & aggressive, marketing strategies. To adopt policy for technological up gradation& advancement to boost up total computerization & inter branch connectivity for all the branches. To develop & motivate human resources there by cultivating processional culture in the banking operations. To strive for continuous growth & profitability through branch expansion & modernization. To introduce more ATM centers & various plastic products for better customer services. To maintain the asset quality at the optimum level by continuous efforts for credit risk management. To provide multi dimensional services to customers by incorporating various modern service areas like insurance, bill collection and providing one door service to clients. To explore more non-fund based business like latter of credit, bank guarantee, custodial services to increase banks non interest income. To achieve business turnover of Rs.650 cores & net worth of 80 cores by 2010. To continue to maintain the NET NPA at ZERO level. To plan Banks balance sheet with judicious ALM.

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Suggestion

To Raj Bank
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SUGGESTION
As improvement is a constant requirement for every one and if we try to learn from a little things also. Than every minute we will improve ourselves. And for constant improvement in organization management should keep their eye on every concern, during my visit at bank I have tried to cover everything and according to my knowledge I am trying to give suggestion to the Raj bank and I am sure that it surely will be helpful in progress of the bank. First and foremost suggestion for Raj bank is that, yet they are not using such marketing tools in the area of cutthroat competition in banking sector. Each bank should try for better and different marketing. Raj bank should make one group of executive, who can help to the management and can provide different services like collection from home only and they should use such slogan for innovative products like only one call can make your life better. This slogan can be sued for assets product. So by using not only simple advertisement but also strategic marketing tool bank can improve a lot in the market. And last but not least that is there is need to improve web site of Raj bank during my report work I have found very poor contents in the web site of Raj bank as Bank have their own EDP department with high educated staff. And by creating attractive web site bank surely will be able to create good image. And one thing is also there should professionalism in management at every level.

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C O N C L U S I O N
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CONCLUSION
After having all the required information for preparing my report, I have tried to analyze each and every function of the Raj Bank. During my report all the staff member of the Raj bank had well co-operate me. And also I have found that the, there is a very good level of commitment in all the staff members. During my report I have tried to cover each functional area of the bank and after having clear idea about everything in the bank, I can conclude that the Raj bank is one of the leading firm in the bank, I can conclude that the Raj bank is one of the leading firm in the co-operative sector, and with advanced technologies and educated staff to trying to positioning in the banking market. But than also due to such weaknesses of co-operative sector Raj bank is also suffering from such limits. So, at last we can conclude that the Raj bank is being leader in the market and due to great leadership of Mr. Ramnikbhai Dhami (Managing Director) bank is getting great goodwill in the market and also great goodwill of the other director helps director helps to the bank in creating good image in the field of the bank. For, better future a great success my all good wishes always with the Raj bank. I wish them for better achievement

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B I B L I O G R A P H Y
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BIBLIOGRAPHY
Books ::Human Resource Management & Personnel

Management By :- K. Aswatthappa Publication :- Tata Mc-Graw Hill Marketing Management By :- S. A. Sherlekar Publication :- Himalaya Publication House Finance Management By :- B. S. Shah Publication :- S. B. Shah on Behalf of B. S. Shah

Web Sites::WWW.RAJBANK.NET WWW.GOOGAL.COM

25th Annual Report Of The Raj Bank (2004-2005)

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