A Project Report

On
“LOANS AND ADVANCES”
AT
SRI GANAPATHI URBAN CO-OPERATIVE BANK LTD., SAGAR
By
SWATHI
USN: 1KI16MBA47
Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI

In partial fulfillment of the requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION
Under the guidance of
INTERNAL GUIDE EXTERNAL GUIDE
Mr.Shamanth Kumar B U MBA Mr. Anand Rao T R
Assistant Professor, Manager,
Department of MBA SGUC Bank Ltd.,
KIT, Tiptur Sagar

Department of MBA

KALPATARU INSTITUTE OF TECHNOLOGY

B.H.ROAD, TIPTUR-572202

2016-18
 ACKNOWLEDGEMENT

It is my privilege to express through the pages of report, a few words of gratitude to all those
who have guided me all along.

I wish to my deep sense of gratitude to Kalpataru Institute of Technology, Tiptur that provide
me an opportunity in fulfilling my most cherished desire of reaching my goal.

I am thankful to my beloved principal Dr. Nandeeshaiah M.E., Ph.D., (I.I.T,-B) of KIT, Tiptur who
was always a constant support to all my formalities. I am indebted to my beloved HOD Prof.
DeepthiAmith, for providing constant encouragement and guidance that has made my project a
success. I am thankful to my guide Mr. Shamanth Kumar B U for her continuous support and
guidance.

I am thankful to Mr. Anand Rao.T.R, manager, Sri Ganapathi Urban Co-operative Bank
Limited, Sagar for giving me an opportunity to complete my project as part of our curriculum
for MBA Course. And I wish gratitude to all the members of Sri Ganapathi Urban Co-
operative Bank Limited who have supported and rendered me all the facilities during the
training.

Last but not the least I like to thank My Family members and friends for their support and
encouragement.

CONTENTS
 LIST OF TABLES i
LIST OF CHARTS ii
LIST OF FIGURES iii

EXECUTIVE SUMMARY iv

1. INTRODUCTION 1

1.1. Introduction………………………………………………………………… 1
1.2. Industry Profile of Banking………………………………………………… 2
1.2.1. Core Banking System (CBS)……………………………………….. 2
1.2.2. Meaning of Banking………………………………………… . 3
1.2.3. Organizational structure of Banks in India………………………… 4
1.2.4. Co-operative Bank………………………………………………….. 5
1.2.4.1. Introduction of Cooperative Bank …………………………. 5
1.2.4.2. History of co-operative banking……………………………... 6
1.2.4.3. Definition of co-operative bank…………………………… 6
1.2.4.4. Values of Co-operative Banks……………………………. 6
1.2.4.5. Co-operative movement in India………………… ……………. 7
1.3. Company Profile of SGUC Bank……..………………………………………. 8
1.4. Promoters of SGUC Bank…………………………………………………...….. 11
1.5. Vision and Mission Statement of SGUC Bank…………………………….…. 11
1.5.1. Vision statement of SGUC Bank………………………………………. 11
1.5.2. Mission Statement of SGUC Bank……………………………………. 11
1.5.3. Quality policy of SGUC Bank………………………………………… 12
1.6. Service profile of SGUC Bank……………………………………………… 12
1.6.1. Loans………………………………………………………………… 12
1.6.2. Deposits……………………………………………………………… 13
1.7. Infrastructure Facilities of SGUC Bank…………………………………….. 14
1.8. Competitors information of SGUC Bank……………………………….…… 15
1.9. Area of Operation of SGUC Bank………………………………………….. 15
1.10. SWOT Analysis of SGUC Bank……………………………………. 16
 1.10.1. Strengths of SGUC Bank…………………………………………… 16
1.10.2. Weaknesses of SGUC Bank…………………………………………. 16
1.10.3. Opportunities of SGUC Bank……………………………………….. 16
1.10.4. Threats of SGUC Bank……………………………………………… 16
1.11. Future growth and prospectus of SGUC Bank……………………… 17
1.12. Financial Statement of SGUC Bank……………………………….. 18

2. CONCEPTUAL BACKGROUND AND LITERATURE REVIEW 20

2.1. Theoretical background of the study……………………………….. 20

2.1.1. Introduction……………………………………………….. 20
2.1.2. Meaning of Loans and Advances………………………………… 20
2.1.3. Definition of Loans…………………………………………….. 21
2.1.4. Principles of Funds Management or Sound lending…………… 21
2.1.5. Types of Loans…………………………………………………. 22
2.1.6. Rate of interest on loans………………………………………….. 23
2.2. Literature review………………………………………………………… 24

3. RESEARCH DESIGN 28

3.1. Statement of the problem…………………………………………….. 28

3.2. Need for the study…………………………………………………… 28
3.3. Objectives of the study………………………………………………….. 28
3.4. Scope of the study……………………………………………………….. 29
3.5. Research Methodology…………………………………………………… 29
3.5.1. Data collection tool…………………………………………….. 29
3.5.1.1. Primary Data……………………………………………. 29
3.5.1.2. Secondary Data………………………………………… 29
3.6. Limitations of the study……………………………………………….. 30
3.7. Chapter scheme……………………………………………………….. 30

4. ANALYSIS AND INTERPRETATION 31

 4.1. Types of Ratios…………………………………………………………… 31
4.2. Growth of Deposit Ratio………………………………………………… 32
4.3. Growth of Net Profit Ratio……………………………………………… 34
4.4. Interest Cost to Deposits Ratio…………………………………………. 36
4.5. Return on Assets Ratio…………………………………………………. 38
4.6. Interest Earned on Total Income Ratio………………………………… 40
4.7. Other Income to Total Income Ratio…………………………………… 42
4.8. Interest Incomes to Advance Ratio……………………………………… 44
4.9. Advances to Deposits Ratio…………………………………………… 46
4.10.Growth of Advance Ratio……………………………………………… 48

5. FINDINGS, SUGGESTIONS AND CONCLUSIONS 50

5.1. Findings…………………………………………………………………… 50
5.2. Suggestions……………………………………………………………………… 51
5.3. Conclusion…………………………………………………………………………52

BIBLIOGRHAPHY
ANNEXURE

LIST OF TABLES

1.1 showing profit and loss account 18

1.2 showing Balance sheet as on 31st March 2017 19
4.1 Showing the variation of current year deposits and previous year deposits 32
4.2 showing the variation of current year net profit and previous year net profit 34
4.3 showing the variation of Interest paid and Deposit 36
4.4Showing the variation of Net Profit and Total Assets 38
4.5 showing the variation of interest earned on total income 40
4.6 showing the variation of other income to total income 42
4.7 showing the variation of interest income to advance 44
4.8 showing the variation of advances to deposits 46
4.9 showing the variation of current year advances and previous year advances 48

i
LIST OF CHARTS

1.2.3 Showing organization structure of banking in India………………………….. 4

4.1 Showing Growth of Deposits Ratio……………………………………………… 33
4.2 Showing Growth of Net Profit Ratio…………………………………………… 35
4.3 Showing Interest Cost to Deposits Ratio…………………………………………. 37
4.4 Showing Return on Assets Ratio………………………………………………… 39
4.5 Showing Interest Earned on Total Income Ratio………………………………… 41
4.6 Showing Other Income to Total Income Ratio………………………………….. 43
4.7 Showing Interest Income to Advances Ratio……………………………………. 45
4.8 Showing Advances to Deposits Ratio……………………………………………. 47
4.9 Showing Growth of Advances Ratio………………………………………………. 49

ii

LIST OF FIGURES

1.3 Showing the front view of SGUC Bank, Sagar……………………………………… 8

 iii

EXECUTIVE SUMMARY

This report is contains the introduction to banks, which includes past, present and future of banks
and challenges for banking industry in future. Banks plays the most important role in providing
various services. Earlier the banks were engaged in accepting and lending money. But in the
recent past the scope of services provided by the banks has changed. The growing competition
requires prompt and efficient services to the customers at reasonable time and cost. These days
bank aim to provide maximum satisfaction and quick service to their customers.
The next part of the report consist of the knowledge about the co-operative banks in India. It
includes history of co-operative bank in indianite features and services provided by it in rural and
urban sector. The structure of co-operative bank in India is also includes in it.

The next section provides information about the loan and credit facility provided by bank. This
section consist various loans provided by bank the detail regarding those loans, procedure to
recover it, actual position of bank in loans area and recommendation and the various proposals
that the co-operative bank.

iv