MERCHANT BANKING FINANCIAL SERVICES

REPORT
ON
BANK VISIT

THE COIMBATORE DISTRICT CENTRAL COOPERATIVE BANK

BY
JANANI . M

14MBA104

KRITHIHASRI.C.V. 14MBA108
MASIPERIYANNAN .S 14MBA110
TAMILSELVAN

CHAPTER 1
2

14MBA137

INTRODUCTION
1.1 BACKGROUND OF THE INDUSTRY
Co-operative banks are small sized units organized in the co-operative sector with operate
both in urban and non-urban centers. These banks are traditionally centered around communities,
localities and work place group and they essentially lend to small borrowers and business. While
the co-operative banks in rural areas mainly finance agricultural based activities including
farming, cattle, milk, hatchery, personal finance etc. along with some small scale industries and
self-employment driven activities, the co-operative banks in urban areas mainly finance various
categories of people for self-employment, industries, small scale units and home finance.
Co-operative banks in India are registered under the co-operative societies ACT. The
cooperative bank is also regulated by the RBI. They are governed by the Banking regulations
ACT 1949 and banking law act 1965.
This bank provides most services such as savings and current accounts , safe deposit
lockers, loan or mortgages to private and business customers. For middle class users, for whom
a bank is where they can save their money. Even today, the cooperative credit structure has the
largest outreach and delivers credit to the largest numbers of clients in the rural areas in
comparison to other institutions, although the quantum of credit delivered is second to
commercial banks.
District central co-operative bank popularly known as DCCS bank is a cooperative
banking network established in India to serve cooperatives and rural areas. It was established to
provide banking to rural hinterland for agriculture sector with the branches primarily established
at rural and semi-urban areas.
The banking model consists of a district central bank for each district in every state of
India known with a name as a respective district central cooperative bank. The members and
their elected directors who represent multitude of professional cooperative bodies like milk
union, urban cooperatives and rural cooperatives, agricultural and non-agricultural cooperative
and various others, in turn would elect the banks president. These banks are collectively
3

represented by a state apex central cooperative bank for each state and its acts as the ultimate
bank and apex body for the DCCs bank under each state. It has been widely observed all over the
country that the local politicians who hold the sway over the cooperatives get elected the
president post of the DCC bank and a president post would mean nurturing for their future
political ambitions. However , this trend which became as national phenomena carries its own
advantages and disadvantages.
The central co-operative banks are located at the district headquarters or some prominent
town of district these banks have a few private individuals also who provide both finance and
management central co-operative bank have source funds

Their own share capital and reserves

Deposits from the public
Loan from the state co-operative banks.

INSTITUTIONAL ARRANGEMENTS OF RURAL CREDIT

RESERVE BANK OF INDIA

SCHEDULED COMMERCIAL
BANKS

GOVT OF INDIA

REGIONAL RURAL BANKS

RURAL
COOPERATIVE

METRO BARNCHES

SCB

URBAN BRANCHES

DCCB

SEMI URBAN BRANCHES

PACS

RURAL BRANCHES

LDB

PLDB

1.2 MARKET SIZE OF CO-OPERATIVE BANK IN INDIA

Co-operative banks are government supported financial agency in India, which are organized and
managed with the dictum of co-operation, self-help and mutual help. It functions with the no
profit and no loss model. As other bank in the country, co-operative banks perform all the basic
banking functions like borrowings and lending of credits.
In India, cooperative banks are working for nearly hundred years. Cooperative banks are
considered as one of the important financial institutions in the country. The major contributions
of these banks are mostly in rural areas where they play the most vital role in rural financing and
micro financing. The major strengths of co-operative banks are their easy local reach, transparent
interaction with the customers and their efficient service to common people.
There are 23 District Central Cooperative Banks in the State with 717 branches mostly in
rural areas to serve the Primary Agricultural Cooperative Banks and the rural public. The District
Central Cooperative Banks raise resources through public deposits and also from Tamil Nadu
State Apex Cooperative Bank and channelize them through Primary Agricultural Cooperative
Banks for agriculture and rural credit. In addition, they meet the credit needs of dairy,
handlooms, sugar and such other affiliated cooperatives. They also lend directly to the public for
nonagricultural purposes within the area of operation of their branches.
As on 26.3.2014, the District Central Cooperative Banks have extended credit to Primary
Agricultural Cooperative Banks to the tune of Rs.1323.20 crores for crop loan of which
Rs.985.59 crores is from their own funds and Rs.337.61 crores from National Bank for
Agriculture and Rural Development refinance.
The 171 bank branches and the following are affiliated to PACS to the bank have been
serving the rural clientele in the entire District.

Primary Agricultural Co-operative Societies : 293

Handloom Weavers Co-operative Credit Societies : 61
Employees Co-operative Credit Societies : 252
Other Societies : 619

The Government of Tamil Nadu show case a unique experiment of Single Window Credit
Delivery System (SWCDS), as a first of its kind in the country under which, both investment and
production credit for agriculture is provided at the grass root level through a single agency.
5

DCC HO

DCC BRANCHES

PACS

OBJECTIVES

Engage in rural financing and micro financing

Main objective is to remove the dominance of common man by the middle man and

money lenders.
Ensure credit services to farmers at low rate of interest providing socio-economic

conditions to the people.

Provide financial support for the needy people and farmers in the rural areas.
Provides personal finance services for those engaged in small scale industries and selfemployment driven activities for peoples in rural areas as well as in urban areas.

ROLE AND FUNCTIONS OF DCCB

The district central co-operative consist of many role and functions some are discussed below;
1. BANKING ENTITY
6

The DCCBs are banking entities recognized by the Reserve Bank of India under the
Banking Regulations Act. They accept deposits from general public and provide loans to
individuals and institutions including primary cooperative societies. They are governed by the
various regulations stipulated by the Reserve Bank of India from time to time. Special provisions
have been incorporated in the Banking Regulations Act 1949 considering the special nature of
their ownership, development role etc.
2. LEADER OF COOPERATIVE MOVEMENT
One of the most important functions of the District Central Cooperative Banks is to
provide financial support to the Primary Cooperative Societies that are affiliated to it in the
district. These societies belong to highly diverse categories like the primary agricultural credit
societies, the producers cooperative societies, handloom and handicrafts cooperative societies,
salary earners' cooperative societies consumers' cooperative societies, primary urban cooperative
banks, etc. However, one of the most important role of the District Central Cooperatives Bank is
to support and develop the Primary Agricultural Credit Societies. The officials of the DCCB
inspect the PACS affiliated to them periodically. The main source of funds for the PACS is the
DCCB and the lending programmer of PACS is regularly supervised by the supervisors of the
DCCBs. Among the most important line of credit provided by the DCCB to PACS is that for
providing production loans for crops to members of PACS. Many PACS also undertake multiple
activities like sale of fertilizers and other agricultural inputs and several act as distributors of
ration items under the Public Distribution System (PDS). The financial assistance for such
activities and other loans provided to members are also sourced from the DCCBs as the PACS
usually do not have major resource base of their own. The important source of own resources of
the PACS is the deposits placed with it by the members. A specified percentage of such deposits
collected by PACS are kept with the DCCBs as reserve deposits to protect the interest of the
member depositors. The DCCBs also provide capacity building support to PACS. They conduct
training programs for secretaries and directors of the board of the PACS. Periodical seminars are
also conducted to update the staff and members of PACS on important developments affecting them.
3. LEADER IN AGRICULTURAL LENDING

The DCCBs have been considered as the most important financial institution to support
the short term credit requirements of the agricultural sector. These loans include both production
loans and marketing loans provided to the members. Usually the production loans are provided
7

on the basis of the "Scale of Finance" which is fixed for each major agricultural crop in the
district. The scale of finance is computed by taking the total cost of production of the crop based
on average price of inputs, including labor. The yield and market value of the output are also
computed and the credit required per hectare for raising the crop is determined. The scale of
finance is fixed by a committee called the "District Level Technical Committee" and the DCCB
is the convener of this committee. The members of the DLTC include the representatives of the
agricultural department, banks, NABARD etc.
FUNCTIONS

To meet the credit requirements of member in society

To perform banking business
To act as balancing center for the PACS by dividends
The surplus funds of some societies to those face shortage of funds
To undertake non-credit activities
To maintain close and continuous contact with and provide leadership and guidance to

them.
Supervise and inspect the PACS.
Safe place for the investment resource of PACS

1.3 MAJOR PLAYERS

Chennai District Central Cooperative Bank

Cuddalore District Central Cooperative Bank
Dharmapuri District Central Cooperative Bank
Dindigul District Central cooperative Bank
Erode District Central Cooperative Bank
Kancheepuram Dsitrict Central Cooperative Bank
Kanyakumari District Central Cooperative Bank
Kumbakonam Disrict Central Cooperative Bank
Madurai District Central Cooperative Bank
Vellore District Central Cooperative Bank
Salem District Central Cooperative Bank
Namakkal District Central Cooperative Bank
Trichy District Central Cooperative Bank
Nagapattinam District Central Cooperative Bank

CATEGORIES OF CO-OPERATIVE BANK

Cooperative credit structure in india
8

Agri credit

Non agri credit

Short term

Long term

State cooperative
bank

State cooperative

Central land
development bank

Primary credit
societies

State industrial
cooperative

Central cooperative
bank

Urban bank
Employees credit
societies

Farmer services
Cooperative societies
Large size multi purpose
societies

The need of cooperative banks in India is much important to support the financial
Gramin bank

requirements of the people. To provide much established support to every person in the country
and for the nation, co-operative banks are categorized at various dimensions and at various
levels.
The cooperative bank can be divided into two categories based on their functions they are

Long term co-operative banks

Short term co-operative banks

LONG TERM CO-OPERATIVE BANKS

Institutions functions and provide services at three levels
9

State levels
District levels
Village levels

SHORT TERM CO-OPERATIVE BANKS

Institutions are further divided into three sub categories

State co-operative banks

District co-operative banks
Primary agricultural co-operative societies .

Apart from these classification, the co-operative banking structure in India is further divided into
five main groups.

CO-OPERATIVE BANKS

PRIMARY URBAN COOPERATIVE BANKS

DISTRICT CENTRAL COOPERATIVE BANKS

10

LAND DEVELOPMENT BANKS

PRIMARY AGRICULTURAL
CREDIT

STATE CO-OPERATIVE
BANKS

SOCIETIES

Co-operative banks function on the basis of non profit no loss co-operative banks as a
principle, do not pursue the goal of profit maximization .This exponential growth of co-operative
banks in India is attributed mainly to their much better local reach, personal interaction with
customers.
FUNCTIONS

The cooperative banks functions with the objective of fulfilling the credit requirements

and needs of people living in the rural and urban areas

Perform multiple activities and functions at large extent to carry out development and
regulation in the society the strengthen the co-operative movements.

PRIMARY URBAN CO OPERATIVE BANK

The urban banks are those that function in urban bank and semi urban areas. Generally it
is referred as primary co-operative banks. The functions of PUCBs are

Lending money to small borrowers and business

Provide working capital loans and term loans
Provide advances against shares and debentures.

PRIMARY AGRICULTURAL CREIDT SOCIETES

These institutions act as a core of Indian co-operative movement. The main objectives of
PACs are:

Raising the capital of the bank to provide the loans and support for customers
11

Motivating the habit of savings amongst customers and collecting deposits.

To provide services and inputs t people for their welfare and development.
To support and motivate various income augmenting activities.

DISTRICT CENTRAL CO OPERATIVE BANKS

The primary agricultural credit societies are affiliated to the DCCBs. The functions of
DCCBs are:

Act as a support center for district central cooperative financial agencies

Arranging credit to primaries
Managing banking business
Approve supervise and control implementation of polices.

LAND DEVELOPMENT BANKS

The LDBs are used to meet the needs of agricultural sector through long term credits. The
LDBs functions at two level. One is the central LDBs operating at the state level and the other is
primary LDBs operating at district level or taluka level. The functions of LDBs are:

Provide services to meet the requirements for developing areas

Providing loans on the security of mortgages
Raising their resources by floating debentures the market.

Although co-operative banks mainly do business in the agricultural and rural areas, some groups
Like PUCBs, DCCBs and SCBs operates in semi urban, urban and metropolitan area also.
2.4 GOVERNMENT POLICIES AND REGULATION
The Government of India has accepted the Vaidyanathan Committee recommendations
and rolled out the programme for Revival of the Cooperative Credit Structure. NABARD is the
nodal implementing agency for the programme. By April 2008, 19 states had accepted the
package and commenced implementation.
12

2.5 CHALLENGES FOR THE INDUSTRY

Cooperative banks are face multichannel integration challenges. These banks are paying
additional costs for every module or interface and add-on features they desire to install to
the base system. This is a huge challenge for these cost-constraint banks.

Customers in smaller towns and cities are looking for automated services such as ATMs,
POS, mobile payments and other.

CHAPTER 2
COMPANY PROFILE
2.1 HISTORY AND BACKGROUND
This is the basic philosophy which made the pioneers to conceive the idea of cooperative way of
living; because of the sufferings they had undergone to meet their requirements. The history of
the cooperative movement various countries confirms this basis and thus the cooperative
movement emerged and spread through the world.
ORIGIN OF THE BANK
K,427 the Coimbatore district central cooperative bank Ltd.,No.80, bank road(opp. Railway
junction), Coimbatore-641018 is registered as a cooperative society under India act X of 1904
and registered on 30.09.1910 and commencement of its business from 16.10.1910. it is
celebrated its 100th year and the bank has entered its 101 st year. It has been serving the people
and customers with high motives and on the principles of cooperation and mutual help.

13

The business boundaries of the Coimbatore district central cooperative bank at the times of its
included the present Coimbatore district, Tiruppur district, erode district, Nilgiris district and also
Kollegal Taluk which is now in the district of Mandya in the state of Karnataka.
In the year1951 marked the first phase in the history of this bank when Nilgiris district central
cooperative bank was formed and detached from this bank and started functioning
appreciations far and wide. It operates most effectively by granting loans and strengthening the
collection of deposits. in fact there is a fight of deposits which registers a significant growth in
number, size and volume of business handled.
FOUNDER AND MISSION STATEMENT
During the first phase of its working, ie., from 1910 to 1929, Sri T.S.Balakrishnan Ayer
had the honor of being the founder chairman. then there ushered and era of development from
1929 to 1952. During this period Sri.T.A.Ramalingam Chattier decorated the chair and honored it
by donating his own land which was in the center of Coimbatore city, the site where the present
district central cooperative bank is functioning well. More over in the same site bestowed by
him, there started one cooperative educational training Center. Now this center is functioning as
ramalingam cooperative management training center in Coimbatore. From 1952 to 1955
Sric.Rathina Sabhapathy honored the chair as the chairman. he has also rendered his service as
the president of the Coimbatore town assembly. r.s.puram, the present business center in
Coimbatore city is functioning the memory of the legend Rathina Sabapathy.From 19555 to 1972
Sris.K.Sennaiaooa Gounder of erode was the chairman.
2.2 MISSION STATEMENT
The Mission of the Bank is to mobilize resources, provide banking products and other
professionalized services to the people, strengthen the affiliates, provide vibrant leadership to the
co-operative banking system, achieve sustained growth and ultimately to attain prime position in
the banking industry.
2.3 PRODUCT AND SERVICES
PRODUCTS
14

The products offered by the cooperative banks includes

DEPOSITS

Savings bank account

Current account
Recurring deposits
Fixed deposits
Cash certification

LOANS

Waiver agricultural loans

Credit supply to weaker section
Jewel loans
KCC scheme
Micro credit card
House mortgage
Loan on self help groups
Loans through TAMBECEDO and TAMCO
Staff loans
Loans for working women
Loans of petty traders joint liability groups
Consumer loan

SERVICES
Services offered by the CDC cooperative bank includes

Clearing
Safe deposit locker
Demand draft / pay order

LOANS
A. Kisan Credit Card Scheme
The Kisan Credit Card Scheme is being implemented to disburse timely credit to the
farmers. Under this scheme, farmers have the flexibility to draw the credit as per their
requirement within the sanctioned credit limit.
15

B. Credit to weaker sections

The Primary Agricultural Cooperative Credit Societies are devoting special attention to
meet the credit aspirations of the weaker sections. The NABARD has fixed 30% of the short
term credit to be provided to small and marginal farmers.

C. Pledge Loan for agricultural produce

The scheme of Pledge Loan for agricultural produce has been designed to help the small
and marginal farmers to get a remunerative price for their produce by holding their stocks during
peak harvest season when the prices are down and selling at a more opportune time after the
prices have recovered. In 2013-14 it is proposed to disburse Rs.100 crore of
D. Investment Credit for agriculture and allied activities
Sufficient investment in agriculture is essential to ensure a sustained growth in
agriculture output and productivity. Keeping this in mind, cooperative banks and credit societies
have been extending credit for investment activities such as micro-irrigation, milk animals, land
development and agriculture machinery. For the year 2013-14, a target of Rs.300 core has been
fixed for the disbursal of loan under this head.
E. Micro Credit Scheme
The concept of group lending has been introduced for the petty vendors in the urban
areas. The District Central Cooperative Banks and Urban Cooperative Banks are implementing
this scheme. Under the scheme, a loan of Rs. 10,000 is being provided without any security for
doing small business like selling of flowers, vegetables, fruits and petty shops. During 2013-14,

16

(up to 31.07.2014), a sum of Rs.26.89 core has been lent as micro credit as against the annual
target of Rs.125 core.
F. Credit to Self-Help Groups
The Self Help Group movement in Tamil Nadu was started with the active support of
cooperatives in Dharmapuri2 District. The Cooperative credit structure will continue to support
the Self-Help Groups and will try to fulfill all their credit needs. In 2013-14, it is proposed. to
disburse Rs.500 core. Up to 31.07.2011, Rs.97.72 core has been disbursed.
G. Women Entrepreneur Loan Scheme
The District Central Cooperative Banks and Urban Cooperative Banks are providing
loans up to Rs.10 lakh to women entrepreneurs to start small industries and to take up service
activities. During 2014-14, a target of Rs.40 core has been fixed and up to 31.07.2014, a sum of
Rs.6.70 core has been disbursed as loan to 1997 women entrepreneurs.

2.4 FINANCIAL POSITION AND PERFORMANCE

The following areas are reviewed critically:
i) The Asset Quality: The two most important assets of the bank are the loans and advances and
the investments. During inspection the quality of the banks portfolios under these two categories
are critically analyzed. The policies of the bank in building its assets, the adherence to various
laws, rules and prudential practices and quality of the portfolios are analysed. Any deviations
from norms, suspicious trends, concentration in any specific sector etc. are reviewed.
ii) Solvency and Capital Adequacy: The solvency of the bank means, as in the case of any other
business, that the net worth of the bank is positive. This means after taking into consideration all
losses, provisions required for bad loans, investments, frauds etc., the bank has a positive capital
base. The capital adequacy is a concept which ensures that the bank has a minimum positive net
worth to take care of its normal business risk. The capital adequacy ratio is stipulated by the
Reserve Bank of India. Though a specific stipulation has not yet been prescribed in the case of
17

DCCBs, the inspection computes the capital adequacy to ensure that the bank's overall financial
position is healthy.
iii) Liquidity: The liquidity position is one of the most critical aspects of banking in general.
Liquidity of the bank ensures that the depositors can be paid their money either on demand or
when the term of their deposits expire. The liquidity is assessed in two aspects. The first is the
compliance to statutory requirements. All DCCBs are required to maintain 3% of their total
Demand and Time Liabilities (DTL) as liquid cash either with them or as current account
balances with the State Cooperative Banks. Similarly, they are also required to invest 25% of
their DTL in fixed deposits with State Cooperative Banks or other investments approved by the
Reserve Bank of India. The second critical analysis is about the term for which bank has built up
assets and liabilities. The bank must ensure that the total volume of its loans/advances and
investments that gets repaid/matured in one year's time is equal to the volume of deposits are
borrowings that it has to repay during one year's time. Such analysis can be done for different
buckets of time, like two years, more than two years etc.
iv) Borrowings: The bank often has to borrow from higher financing institutions to provide
adequate funds for loaning. The borrowings are always made either from or through the State
Cooperative Bank. The bank is eligible for refinance from higher financing agencies like
NABARD etc. These borrowings are made through the SCB, while direct borrowings are also
made from them. The terms and conditions of such borrowings, the actual need for borrowing,
rate and the proper utilization and timely repayment etc. are evaluated during inspection.
v) Earning Performance: The two most important parameters that is reviewed during inspection
to assess the earning performance of the bank are (a) the Net Interest Margin and (b) the Net
Margin. The Net Interest Margin (NIM) is the difference between the total interest paid by the
bank on its deposits and borrowings and the total interest earned on its loans/advances and
investments. The Net margin is arrived at after deducting all the other expenses from the NIM
and then adding all other income of the bank to it. It is usually expressed as a percentage to total
assets.
2.5 STATEMENT OF CHANGES IN WORKING CAPITAL
Working capital means the excess of current assets over current liabilities. Statement of changes
in working capital is prepared to show the changes in the working capital between the two
18

balance sheet dates. This statement is prepared with the help of current assets and current
liabilities derived from the two balance sheets.
Working Capital = Current Assets Current Liabilities

2.6 ADUIT
On the date of transferring the amount to the Fund, the bank should maintain customerwise details verified by the concurrent auditors, including payment of up-to-date interest accrued,
that has been credited to the deposit account till the date of transfer to the Fund, with respect to
interest bearing deposits. With respect to non-interest bearing deposits and other credits
transferred to the Fund, customer-wise details, duly audited, should be maintained with the bank.
The concurrent auditors should also verify and certify that, as per the banks books, the returns
have been correctly compiled by the bank in the monthly and yearly returns submitted to RBI.
The above returns shall also be verified by the statutory auditors at the time of annual audit and
an Annual Certificate shall be obtained from statutory auditors and forwarded to RBI, certifying
that the returns have been correctly compiled by the bank.

2.7 BENEFITS
The accounting programs carry out functions such as invoicing, dealing with payments, paying
wages and providing regular accounting reports such as trading and profit and loss accounts and
balance sheets etc. The introduction of computerization provide major advantages such as speed
and accuracy of operation, and, perhaps most importantly, the ability to see the real-time state of
the banks financial position.
When using a computerized accounting system the on computer, input screens have been
designed for ease to use. The main advantage is that each transaction needs only to be inputted
19

once, unlike a manual double entry system where two or three entries are required. The
computerized ledger system is fully integrated. This means that when a business transaction is
inputted on the computer it is recorded in a number of different accounting records at the same
time.

2.8 CAS COMMAN ACCOUNTING SYSTEMS

All co-operative societies in district keep record as per the Common Accounting System
(CAS) as suggested by the Hon'ble Vaidyanathan Committee. All concerned have trained for
implementing the same. Printed material regarding CAS is available at bank and it is provided to
all societies. As per NABARD's instruction all societies are followed the instructions regarding
record keeping. All PACS have maintained records from 1-4-2009 as per CAS. The training
regarding the CAS is still continued by interval to all concerned

2.9 FINANCIAL PERFORMANCE

MEMBERSHIP
TABLE :1
YEAR
2005-06
2006-07
2007-08
2009-10
2010-2011
2011-12
2012-13
2013-2014
2014-2015

NO OF MEMBERS
1056
1051
1051
1065
1068
1068
1072
1078
1078

20

SHARE CAPITAL PERFORMANCE

TABLE : 2
YEAR
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15

MEMBERS
1690.01
1865.75
1935.98
2018.17
2278.10
2693.32
3058.14
3327.25
3749.52
4235.04

GOVT.
217.10
217.10
217.10
177.10
177.10
87.10
53.40
53.40
53.40
53.40

21

TOTAL
1907.11
2082.85
2153.08
2195.27
2455.25
2780.42
3111.54
3380.65
3802.92
4288.44

SOURCE OF FUNDS
TABLE :3
YEAR

SOURCE
SHARE CAPITAL
MEMBER

2007-08

1935.98

GOVT.

117.10

TOTAL
BORROWINGS

ICDP

SCB

100.00

NABARD

3862.15

3033

2018.17

117.10

2009-10

2278.10

117.10

60.00

6332.31

4355

62423.37 17930.54 93496.42

87.10

10020.23

6200

69531.49 13951.18 102483.32

23979.30 0

2011-12
2012-13

2693.32
3058.14
3327.25

53.40
53.0

3577.95

3373

42944.87 15751.28 67744.38

2008-09

2010-11

60.00

DEPOSIT Reserves

49622.21 17911.55 76679.98

76361.85

15489.69 118942.38

34748.29 0

85957.14 15073.52

139159.60

2013-14

3749.52

53.40

24359.72

122714.67 15093.84 165971.15

2014-15

4235.04

53.40

26358.36 0

138129.32 15769.64 184545.76

22

DEPOSITS
TABLE : 4
YEAR
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15

SAVINGS
46.71
59.35
60.89
62.82
88.39
73.14
147.16
87.91
126.80
133.07

CURRENT
16.76
19.94
23.31
17.93
37.79
27.27
32.56
30.26
27.91
36.28

FIXED
269.74
257.78
287.74
344.01
407.23
486.89
470.62
578.61
695.61
746.8041

23

RD
2.20
2.05
1.62
3.33
2.91
2.95
7.15
9.54
4.39
4.53

OTHERS
30.96
43.48
55.88
68.13
79.91
105.06
106.12
153.25
372.44
460.61

TOTAL
366.37
382.60
429.44
496.22
624.23
695.31
763.62
859.57
1227.15
1381.29

LOW COST DEPOSITS

TABLE : 5
YEAR

SB

CS

TOTAL

%TOTAL

2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15

46.71
59.35
60.89
62.82
88.39
73.14
147.16
87.91
126.80
133.07

16.76
19.94
23.31
17.93
37.79
27.27
32.56
30.26
27.91
36.28

63.47
79.29
84.20
80.75
126.18
100.41
179.72
118.17
154.72
169.35

DEPOSITS
17.32
20.72
19.61
16.27
20.21
14.44
23.04
13.75
12.61
12.26

BORROWINGS
TABLE : 6
YEAR

TNSC BANK

NABARD
24

TOTAL

TO

2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15

11968.60
7989.60
3862.15
3577.95
6332.31
10020.23
23979.30
34748.29
24359.72
26358.36

0
0
3033
3373
4355
6200
0
0
0
0

11968.60
7989.60
6895.15
6950.95
10687.31
16220.23
23979.30
34748.29
24359.72
26358.36

INVESTMENTS
TABLE : 7
YEAR
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15

TOTAL
182.60
164.58
155.48
190.79
276.66
272.63
254.52
280.24
515.20
708.79

ISSUES AND RECOVERY PERFORMAANCE LOANS

TABLE : 8
YEAR
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13

LOAN ISSUE
27631.82
28897.02
38830.05
47084.40
53464.41
73453.53
123997.11
164973.62

% OF GROWTH RECOVERY

0
4.58
40.53
70.40
93.49
165.83
359.60
497.04

RECOVERY
55.69
71.19
76.72
89.85
89.00
95.28
97.57
98.09

15388.16
20571.78
29790.41
42305.33
47583.32
59089.72
111067.78
145759.72
25

OF

2013-14
2014-15

176305.79
170053.09

538.05
515.42

152420.16
157205.16

GROSS NPA %
22.80
13.14
9.22
17.19
9.40
7.55
6.71
6.53
7.42
6.92

NET NPA
2.80
0.57
0
0
2.15
1.30
1.61
2.27
2.87
2.29

97.65
97.49

NPA MANAGEMENT
TABLE : 9
YEAR
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15

TOTAL NPA
88.59
52.15
45.66
100.39
63.65
62.82
68.13
78.89
90.37
83.28

PROFIT AND LOSS POSITION AND AUDIT CLASSIFICATION

TABLE : 10
(RS In Lakhs)
YEAR
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15

PROFIT/LOSS
148.66
768.81
1312.86
1312.86
533.72
682.46
700.07
792.76
904.41
934.96

DIVIDEND ISSUED

AUDIT

7%
7%
12%
7%
8%
8%
9%
10%
10%
10%

CLASSIFICATION
B
B
B
B
A
A
A
A
A
A

26

CD RATIO AND CRAR ANALYSIS

TABLE : 11
YEAR
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15

CD RATIO
73.39
71.50
86.59
92.86
88.73
101.99
133.00
140.44
99.23
87.12

CRAR
8.45
10.18
10.53
10.32
10.03
10.10
9.52
9.18
9.50
9.50

2.10 CHALLENGES

Bank should take initiative to organize training and awareness programs of their
customers to boost use of e-banking.

Bank should better customer service while operating the ATM

27

2.11 AGRI CREDIT STRUCTURE

COOPERATIVE CREDIT
STRUCTURE

SHORT TERM

LONG ERM CREDIT

THREE TIRE

TWO TIRE

STATE / CENTRAL
COOPERATIVE BANK

STATE / CENTRAL COOPERATIVE

AGRICULTURAL DEVELOPMENT

DISTRICT CENTRAL
COOPERATIVE
BANK
PRIMARY COOPERATIVE
AGRICULTURAL RURAL
DEVLOPMENT

PRIMARY
AGRICULTURAL
CREDIT SOCIETY
TYPE

28

ORGANIZATION STRUCTURE
CHAIRMAN

MANAGING
DIRECTOR

GENERAL MANAGER

CHIEF REVENUE
OFFICER

AGM

AGM

AGM

AGM

AGRI CREDIT

NON AGRI CREDIT

ESTABLISHMENT

DEVELOPMENT

29

AGM
BANKING

CHAPTER 3
CONCLUSION
The bank visit has provided practical exposure on these areas besides the practical knowledge
gained to regular classroom lectures. We have learned various functions and their activities in
that organization. Efficient management of the DCCB requires multi-dimensional approach. On
the one hand the Board of Directors have to provide direction and leadership by giving adequate
operational autonomy to the functional managers. The management of DCCBs therefore requires
understanding of these multiple dimensions and performing accordingly to match the
expectations of the stakeholders. The day to day function of the various departments carried
perfectly and efficiently.

30

REFERENCES
K.R.Kulkar ni,Theory and Practice of Co-operation in India and Abroad,
Vol.I, Co-operators Book
Audit Book Of The Year 2011-12 Of The Coimbatore District Central
Cooperative Bank.
A Success Story Of The Coimbatore District Central Cooperative Bank.
WWW.TNSAPCB.org.in

31

ABBREVIATIONS

Dccb District Central Cooperative Bank

Pacs Primary Agricultural Credit Society

Cdcc Coimbatore District Central Cooperative Bank

Tsapc Tamil Nadu State Apex Cooperative Bank

Nfs Non Farm Sector Loan

Kcc Kisan Credit Card

32