Ackno AUTHOR TITLE CONTEXT VARIABLE FINDINGS CONCLUSION

UNDER
wledge STUDY
ment

First,
we are
very
much
grateful
to our
KSV
Univers
ity who
has
program
med
this
kind of
project
as a part
of our
study.

It is our
personal
belief
that no
report is
the
result of
only its
author’s
efforts.
There
are
many
people
who
contribu
te
somethi
ng on
the
other,
and thus
play a
signific
ant role
in
laying
the
effectiv
e report
that is
capable
of
achievin
g its
purpose
.
Therefo
re, we
would
like to
take this
opportu
nity to
thank
all those
people
who
have
helped
us in
presenta
tion of
this
project,
guiding
us
towards
the
achieve
ment of
its
purpose
.

It
gives us
great
pleasure
and
privileg
e to
acknowl
edge to
our
college
LDRP-
ITR and
which
gave us
such a
nice
exposur
e for
gatherin
g
practica
l
knowle
dge.

I would
like to
express
my
gratitud
e to all
those
who
gave me
the
possibili
ties to
complet
e this
thesis. I
would
like to
thank
Prof.
(Dr.)
Surya
Krishn
a
Mantra
la, Head
of
Depart
ment
M.B.A;
Summer
Internsh
ip
Coordin
ator;
Prof.
Hemali
Broker,
Prof.
Mallika
Babu,
and
other
staff
member
who
helped
us
through
out the
project
and also
in the
successf
ul
complet
ion of
my
project.
She has
given a
lot of
extra
input in
our
project.
Besides
practica
l
experie
nce, I
have
gained a
lot out
of this
project.
We are
thankful
to all
the
faculty
member
s of
MBA
departm
ent for
their
continu
ous
support
&
guidanc
e for the
complet
ion of
this
project.

T
his
report is
a
combin
ed
effort of
many
people.
we are
grateful
to all
those
people
whose
inspirati
on and
wisdom
helped
us in
complet
ing our
project.
To
begin
with we
would
like to
express
our
immens
e
gratitud
e to Mr.
Chanda
n Singh
Rathore
(manag
er of
kalupur
commer
cial
coopera
tive
bank
madhup
ura
branch)
and
other
staff
member
s who
helped
us to
guide us
in each
and
every
step of
our
training
which
gives us
deep
sense of
study.

And last
certainl
y not
the
least;
we
thank
all those
who
knowin
gly or
unknow
ingly,
directly
or
indirectl
y have
 helped
us in the
fulfillm
ent of
this
projec

YEAR

2002 Dasgupta Priority

sector
lending:
Yesterday,
Today and
Tomorrow

Dasguta (2002) conducted a study on Priority sector lending and advocated a new approach to
priority sector lending and concluded that a new approach is required to
Ensure flow of credit to ‘priority ‘ sectors for the benefit of banking industry, people and the
economy. The study also found that new profession and new industry might require high level of
incentive because of high risk factor. Researcher advocates a new approach to priority sector
lending, suggesting among other things the reduction of mandatory credit to a larger number of
sectors and sections, including marginal farmers, cottage industries and food crop agriculture as well
as temporary credit to assure credit to new industries and new professions by the non-poor section.

Simona et al (2003) conducted a study on Trade Credit, Bank Lending and Monetary
Policy Transmission and investigated the role of trade credit in the transmission of
monetary policy. Most models of the transmission mechanism allow the firm to access
only financial Markets or bank lending according to some net worth criterion. In their
model they introduced trade credit as an additional source of funding. They predict that when
monetary policy tightens there will be a reduction in market and bank lending, and an increase in
trade credit. This was confirmed with an empirical investigation of 16,000 manufacturing firms.

Mateut et al 2003)3 conducted a study on Trade Credit and Bank Lending and focused that Trade
credit is an important source of finance for firms, but it has typically been excluded from the
analysis of the credit channel. In this paper, they examine a panel of 16,000 manufacturing firm
records for the years 1990 through 1999. They show that the uptake of trade credit varies with the
monetary cycle, increasing when interest rates are high and falling when rates fall; this offers
indirect evidence in support of the bank lending channel. They discover that suppliers evaluate the
creditworthiness of firms on much the same basis as banks, with solvency, credit risk and age all
improving the access to trade credit and finally conclude that trade credit is taken up by firms as a
substitute for bank finance at the margin when they are credit constrained.

Joshi (1998)4 conducted a study on Commercial Banks in Rural Credit and revealed that the
concern expressed in recent times at the inadequacy of Institutional credit to rural sector, especially
to the agricultural sector, is timely. For strengthening the agricultural and rural development, multi-
agency rural credit system has become a crucial element of the ongoing financial sector reforms.
Along with this, credit delivery system has to be hundred percent foolproof. Also, there is no doubt
that commercial banks find it difficult to enforce recovery of loans granted under the priority sector
programmed. In the case of Integrated Rural Development Programmed (IRDP) loans, the recovery
rate as low as 30 percent as per the RBI Report on Trends and Progress of Banking in India for
1996-97.

Raymond L.Rusnak (June 2002 (June 2002)5 conducted a study on Cash flow lending by
commercial banks. Cash flow lending has its allure and its foibles for senior lenders. The study
looks at what mistakes were made and suggests a way that senior lenders can make cash flow loans
to venture fund investments while avoiding some of the pitfalls that are currently causing them
trouble. Cash flow lending to finance acquisitions has been around in one form or another for a long
time. Banks often lent more money than was justified strictly from the value of the assets on the
balance sheet when their best customers believed the purchase of another company or division
would create synergies ..

A.Sinan Cebenoyan (2004) conducted a study on lending at banks and explain how active
management of bank credit risk exposure through the loan sales market affects capital structure,
lending, profits, and risk. The author find that banks that engage in both buying and selling of loans
may be better able to take advantages of positive net-present- value investment opportunities, as
they are able to increase their C&I and commercial real estate loans and are better able to manage
with less liquidity and less capital. The buying and selling at the same time seems to allow banks to
be more flexible and more aggressive. The flexibility reduces the burden of carrying more capitals,
and lower yield higher liquidity assets; and the aggressiveness allows them to increase their higher
risk

Deepak Kumar (2005) conducted a study on banking sector in India and found that changing
environment and government policies are forcing banks to lend more to the agriculture sector. Both
private and public banks are now involving themselves in a lot of agriculture-based lending
activities. Besides financing traditional activities, banks are also involved in training and setting up
consultancies; agriculture clinics, the export and marketing of agricultural produce etc. The study
concludes that existing and new models are only indicative. The need of the hour is to leverage the
existing resources and make banks more participative through policy implementation and create
conducive environment so that the agriculture sector can be cared for like any other sector. Even the
existing and conducive policies are enough if they are properly implemented. Both private and
public sectors are contributing to agriculture in a big way. However, there are many things that have
to be implemented especially financing aspects.

Mannjappa(1997), conducted a study on priority sector landing and viewed finance as a backbone
for accelerating economic development of any country. Financial factor
influence cannot be neglected in over all development of different sector in economy.
Study concludes that the commercial banking system is considered as an important factor for
channel sting pattern of investment in the economy, a developed network of banking can increase
the mobility of funds, access the industrial sector and geographical areas. As a result, the fund can
float to the most productive enterprises, changing pattern of investment an enhancing over all
productivity of investment in the country. Therefore, one cannot ignore the role of industrial banks
in the rapid development of the economy

Gopinathan (1999) Conducted a study on bank lending and revealed that the commercial banks
have been used to this system and are used to treating cash credit limits for long term in actual
practice. The difficulty would be for fls that are used to the system wherein their money lent out to
customers comes back (less the NPAs) periodically. Once the FIs start short term lending in earnest,
the FIs have to get adjusted to the system wherein they have to set apart some of their resources
permanently, without any chance of repayment, towards cash credit limits. The FIs will get the
interest income but have to mobilize fresh resources if they want to continue the so-called short -
term lending.

Dahiya (2003) conducted a study on bank lending and found a significant negative
announcement return for the lead-lending bank when a major corporate borrower announces
default or bankruptcy. Banks with higher exposure to the distressed firm have large negative
announcement period returns. The existence of a past lending relationship with the distressed
firm results in larger wealth declines for the banks shareholders. They found that prior
banking relation ship are valuable for lenders on average, abnormal returns to banks, on the
announcement of a borrower financial distress are significantly and negatively related to
existence of a prior / post borrowing relationship with that borrower. Finally we found that
the announcement of distress also has a significantly negative effect on borrower’s returns in
our sample.

Jalal Akhvein (2002) Conducted a study on Relationship Lending and in this paper we examine the
lending by small banks to small farms. We find that relationships, as
measured by the length of tenure of farm operators, are positively related to bank lending. We also
find that denovo banks have a positive tendency to lend to small farms, similar to the tendency of
denovo banks to lend to small businesses generally. When existing relationships between borrowers
and incumbent lenders are stronger, however, denovo banks have greater difficulties in lending to
small farms. Finally, we find that, even within the category of small banks, lending to small farms
(as a percentage of banks assets) tends to decrease as the bank increases in size. We believe that
small farms are a category of small enterprises that have been under-researched in the lending
literature and that further study of these relationships would yield new and interesting results

Acknowledgement

First, we are very much grateful to our KSV University who has programmed this kind of project as
a part of our study.

It is our personal belief that no report is the result of only its author’s efforts. There are many people
who contribute something on the other, and thus play a significant role in laying the effective report
that is capable of achieving its purpose. Therefore, we would like to take this opportunity to thank
all those people who have helped us in presentation of this project, guiding us towards the
achievement of its purpose.

It gives us great pleasure and privilege to acknowledge to our college LDRP-ITR and which
gave us such a nice exposure for gathering practical knowledge.

I would like to express my gratitude to all those who gave me the possibilities to complete this
thesis. I would like to thank Prof. (Dr.) Surya Krishna Mantrala, Head of Department M.B.A;
Summer Internship Coordinator; Prof. Hemali Broker, Prof. Mallika Babu, and other staff
member who helped us throughout the project and also in the successful completion of my project.
She has given a lot of extra input in our project. Besides practical experience, I have gained a lot out
of this project. We are thankful to all the faculty members of MBA department for their continuous
support & guidance for the completion of this project.
 This report is a combined effort of many people. we are grateful to all those people whose
inspiration and wisdom helped us in completing our project. To begin with we would like to express
our immense gratitude to Mr. Chandan Singh Rathore (manager of kalupur commercial cooperative
bank madhupura branch) and other staff members who helped us to guide us in each and every step
of our training which gives us deep sense of study.

And last certainly not the least; we thank all those who knowingly or unknowingly, directly
or indirectly have helped us in the fulfillment of this projec

Our project title “Report on loan and advances of the kalupur” commercial co-operative bank
limited” Ahmedabad (madhupura branch) is the manager of the is Mr. Mr. Chandan Singh Rathore
and bank staff have both provided all information about the bank.

I have collected primary data from the customers and secondary data from the bank and other source
of the bank. Research design here refers to the method used to collect the require data for the survey.
It is out line of total project It contains the information stating the objectives of the study, scope of
the study methodology of the study, tools and techniques used for the survey, method of data
collection etc. in short research design is the chapter in which the blue print of the whole project is
explained.
. There are various types of products and a service offered by K.C.C.B, and providing loans to
people are one of the important functions of the bank does. As this research study is mainly based
on these schemes, we will discuss more on the loan schemes provided by Kalupur Commercial Co-
operative Bank.