Back ground and management of the Karnataka Bank The bank was incorporated on Feb 18, 1924 as the

Karnataka Bank Ltd at Mangalore, in Karnataka state to cater to the banking needs of the south Karnataka region. The certificate to commence business was obtained on May 23, 1924. During the period of four decades, i.e., from 1906 to 1945, the district attained renown as the cradle of a banking revolution in the country, since as many as 22 banks of different sizes had their origin in the district, 9 of which were from Mangalore, which is the capital and also the trading and commercial activities of the district, (5 leading banks including Karnataka Bank Ltd). Inspired by the Swadeshi movement, a few prominent and enterprising citizens of the district, mostly hailing from the communities of farmers, merchants, doctors, advocates incorporated the banking institution in the district. One such pioneer was Sri. B.R. Vyasaraya Achar, who along with his contemporaries promoted the Karnataka bank ltd, in 1924 under his chairmanship,

In the stride towards progress and expansion, the bank got reinforced by the takeover of 3 banks, viz. Sri Sharada Bank Ltd., on April 1 st 1960, Chitradurga Bank Ltd., on December 30th 1964, and The Bank of Karnataka on December 29th 1966. And during the year 2003, the bank has taken up corporate agency for marketing the various life policies of Met Life India Insurance Co Ltd.

Sri Rama Co-operative Bank is situated in Malleswaram, Bangalore. It is a bank established mainly to meet the financial needs & requirements of the poorer section of the society of that particular area. Sri Rama Co -operative was established in June 3rd 1953.

Later Sri Siddavanahalli Krishna Sharmagi a noted gandian, freedom fighter journalist, a social worker and more than all a great humanist was the Founder and also Chief Promoter of this Bank. Since 1953 -54 to 1967 68 continually around 15 years he has served as director to wards improvement of this Bank.

Later Sri Siddavanahalli Krishna Sharmagi and Dr. H. Srinivasayya, BF, FIA, CA, Deputy General Manager, Bharat Earth Movers Ltd. (Rtd) Bangalore and others with their grate obedient groups have made enormous efforts to improve this Bank & are the bedrocks of the Banks foundation.

History of bank(est-1976-35 years) Karnataka's Ediga Samaja leader like late K N Guruswamy, late Venkataswamy and Ashok Sindhe in in meeting decided that the ediga samaja has gone fully backward in area of education social growth banking and so on so that the supearate ediga bank should be started in banglore and its function should be extended to whole of Karnataka.

The meeting held on 18-01-1975 was headed by the k.n guruswamy and venkataswamy and chief guest declared that sri b anjaneyalu was considered as CEO including 15 members who are selected for starting up of the bank, those the bank according to the guidelines of cooperative department collected share amount of 35 100 and deposited in Bangalore cooperative bank ltd" and the bank requisted for granting of licence to RBI Mumbai in 1976 the 15 member from cooperative society under leader ship of sri raju helped in obtaining the licence from RBI.

Later in 1990 the RBI decided to cancel the license of sudha cooperative bank and considered bank as sick unit because the bank as not attained the objective of it share capital membership loan and so. The RBI fixed the target of rupees of 1561acks and required to collect in June 1987 so on that time the bank members conducted various program and collected rupees 22.241acks deposits as share capital rupees 186.521acks its has deposits 141.59 lacks has loans on 30-06-

1991 so those by observing the growth of bank the RBI giving license permitted bank to start a new branch in jayanagar.

The

bank

again after

decides progress

to of

start these

new

branch

in the

yeshwanthapura

two

branches

management decide to start 3rd one i.e majestic branch.

Before 1991 the bank have only one branch but from 1993-97 the bank was fully developed and opened 3 branch but now it had a 5 branches. As on 31-03-2010 the bank share capital is 92.031acks deposit collection of 8151acks loans is 610.701acks net profit increased to 33.091acks.

INTRODUCTION ON ANANDA CO-OPERATIVE BANK LTD

Formation of Ananda co-operative bank Ltd., ANANDA CO-OPERATIVE BANK LTD has registered by joint registrar of co-operative Societies on 23rd August 1979, Reg. No. JRB/Regn/7/4884/79-80 and then later it is licensed by Reserve Bank of Indian on 31st March 1989.

Jurisdiction; The area of the Operation of the bank shall extend to the whole of Bangalore City Corporation and Bangalore Development Authority

3.2 Aims and Objects of the Bank;

The aims and objects of the Bank shall be as under; 1) To encourage thrift, self-help and co-operation among the Members, nominal members and depositors of the Bank. 2) To do Banking Business as defined in clause (b) of Section 6 of the Banking Regulation Act, 1949 (as applicable to co-operative Societies) and also engage in such other business as is permitted under Section 6 of the said Act, on cooperative principles.

3)

To tend money to its members on hire purchase basis.

a)

Borrowing or raising money lending or advancing of money either On surety or security, drawing, accepting, discounting buying, selling collectingand dealing bills of exchange, hundies, drafts, Railway receipts, debentures and other instruments and securities Whether transferable or negotiable or not, the granting and issuing Of letter of credit, travelers cheques, receiving of all kinds of Bonds, scripts or valuables on deposit or for safe custody, Providing sa collecting and transmitting of money and security. b) To act as agent of any Government or local authority or any other Person or persons; the carrying of agency business of any Description including the clearing and forwarding of goods, giving Of receipts and discharges and otherwise acting as an attorney on Behalf of the customers; c) Transaction public and private loans and negotiating and issuing the same;

4)

To open branches, sub branches, offices etc., in whatever name Called with in the area of operation of the bank with a prior Permission of the Registrar and the Reserve Bank of India. And to frame rules of their working. To draw, accept, negotiable, sell and collect bills of exchange and other negotiable instrument, for and on behalf of the bank in Accordance with the rules framed by the Board.

3.3

Authorized Share Capital of the Bank;

The authorized share capital of the bank shall be Rs. 25 lakhs made up of one lakhs shares of Rs. 25 each. The face value of the each Share not is exceeding rs.25.

3.4 Rules and regulations of the Bank

The Banking Regulation Act of 1949 as application to Co-operative Societies. Which had come into force form 1st March 1966? Has Vested the Reserve Bank with various statutory powers of control of Supervision over the Co-operative Bank. Section 5: In terms of this section of a primary co-operative bank Means a co-

operative society other than primary agriculture credit Society. 1) The primary object principle business or which in the transaction of banking business. 2) The paid up share capital and reserves of which are not less than One Lakh of rupees. 3) The bye laws of which do not permit admission of any other co-Operative society on a member.

Section 6;

1)

The govt. of India by a notification dated 12/12/1995 has

specified

Hire purchase and equipment leasing as forms of Business in which it is lawful for a co-operative bank of engage.

(2)

The Government of India by notification has notified insurance as a form

of business which may be undertaken by the co-operative Bank. Section 8; A co-operative bank cannot undertake trading activities. Section 9; A co-operative bank is prohibited from holding any Immovable property howsoever acquired except such as is required for its own use. Section 20; prohibits sanction of loans advances on the security of its own

share and also unsecured loans & advance Ro direct or the firms of private companies in which they are interested.

3.5 Constitution of Board of Directors;

Since the directors are elected from amongst the Members (except Co-opted and nominated Directors) The Board of directors is primarily concerned with the formulation of policies keeping in view the guidelines issued by RBI & state /Central Govt. The board should also excise overall supervision and control over the functioning of the Bank. Leaving day to bay administration to the Chief execution officer.

3.6 Duties and powers of the Board;

 To admit members and nominal members. To allot shares and sanction transfer of shares. To invest funds of the bank in government & approved securities. To consider the Annual report. To hear and deal with complaints. To regulate the rate of interest on deposits. To appoint appraisers and valuators. To make the appointment of the staff of the bank.

3.7 General Body Meeting;

With three months form the date of registration of the bank; the Chief promoter shall convene the first General Body Meeting of all People who have signed in the application for registration of the Bank. In the first General Body meeting, the following business shall be transacted ; Election of a Chairman among the members present to preside Over the meeting. Admission of new members. Election of the members of the board. Fixing up of the limit up to witch the funds may be borrowed. Quorum for the general Body meeting; 1/5th of the total members.

3.8 The functions of the General Body Meeting shall be:

1) To approve the programme of activities of the Bank prepared by the board for the ensuing year. 2) To record the results of election of the members of the board. 3) To appoint persons as local Auditors duly qualified to audit the accounts. 4) To sanction distribution of profit and dividend. 5) To frame, alter and revise the Bye-laws.

KYC Guidelines or principle :( Know Your Customer) RBI has issued several guidelines relating to identification of Depositors & advised the banks to put in place systems & procedures to Prevent financial frauds identify money laundering & suspicious Activities & for scrutiny/ monitoring of large value of cash transactions. ECS (Electronic Clearing Scheme) Credit clearing; RBI has Introduced ECS scheme effective from 1 st April 1995. The Scheme is now available in all the major cities, where there is electronic clearing.

3.9 Audit & Internal inspection; Internal Audit; the bank should introduce a sound system of internal audit. The head of the inspection dept at the H.O. Should be a sufficiently senior person and should report directly to the Chairman. The officer posted to this dept should have sufficient experience & Exposure & the dept should be headed on official of sufficient seniority & process integrity the periodicity of the internal audit & the branches should be at least once in the every 12 months which should be really of purpose character.

3.10 Guidelines of the Reserve Bank of India for customer service:

1. Commencement of employees working hours 15 minutes before commencement of business hours can be operative banks at Head office and Branches.

2. All the customers who enter the banking hall before the close of business hours should be attended to.

3. Staff at the counters should undertake the following transactions during the extended business hours ( branches to indicate the timings)

a)

Non-voucher generating transaction

 Issue of pass book/statement of accounts. Issue of cheques book. Delivery of term deposit receipts /draft. Acceptance of share application from.

b) Voucher generating transaction Issue of term deposit receipts(TDR Acceptance of cheques for locker rent due Issue of traveler cheques Issue of gift cheques.

3.

To ensure that no counter remains unattended during the Business hours and uninterrupted service is rendered to the Customers. All branches, except, very branches, should have Enquiry Or may I help you? Counter, either exclusively or combined with other duties, located near the entry point of the banking hall.

4. Unless the customer prefers not to nominate,(this may be recorded, without giving scope for conjecture of non-compliance) nomination should be a rule, to cover all other existing and new accounts. 5. Trilingual brochures and pamphlets should be actively promoted, containing myriad customer- useful information. 6. Dishonored instrument may be returned / dispatched to the customer within 24 hours.

3.11

Management of Ananda co-operative bank Ltd:

The management of a bank is entrusted to a committee known as board of Directors. The members of the managing committee are elected directly by the members of the co-operative bank at the annual general body meeting.

3.12 The Ananda co-operative bank has the following office bearers:

1. President 2. Vice-president 3. 11 Directors

The

board

of

directors

determines

the

detailed

programmers

and

Procedures of the bank. The office-bearers are responsible for the conduct of the day-today affairs of the bank in accordance with the decision of the board of directors. They are accountable to the managing committee

The Ananda co-operating bank has three sub committees they are; 1. Audit sub committee 2. Enrollment sub committee 3. Loan sub committee 1) Audit sub committee; In this committee office bearers verify the receipts payments and balance sheet of the previous month

2) Enrollment sub committee: in this committee office bearers approve the new membership application.

3) Lone sub committee: In this committee office bearers are scrutinize the lone applications and sanction the amount.