Sources of finance in RDCC Bank Sindhanur 584128 CHAPTER -IIntroduction:- Finance is essential for all organization in order to carry out its day to day activities & to achieve the target of the enterprise. The business cannot run without adequate finance. That is why finance is called life of blood of business.Meaning of sources of finance:- A source of finance means the agencies from which the funds are obtained or called, method of raising finance and period for which funds are requiredObjectives of the study To know from which source bank can get finance. To know about the company policies regarding utilization of financial sources. To know about the adoptness of any other new source to the bank. To know about the to which sources bankers are give the most preference, whether short term or long term finance. To know about the which source of finance is very helpful to bank. To know the effective utilization of sources of finance in bank. To know the how many sources are used to collect the finance. To know the why bankers are give importance to specified source. To know the receipt of interest, brokerage & others as a source.

Advantages of the study Get the information regarding important financial source. We can get the idea which financial sources have high interest & which financial sources have low interest. We can get idea regarding how much interest bank has accept. We can get the information regarding which sources are suitable to bank.

Disadvantages of the study We cannot get the information regarding entire financial sources. It is difficult to understand.

Statement of problem: Finance is very important to every business and companies. By getting finance they are approved to financial sources. But many bank and institutions are not used all financial sources to get the finance that wise I chosen this topic (sources of finances) by analyze why they are not use all the financial sources.

Need of the study:- In the field of business world the finance has been renowned as the life blood of every business concern. The financial sources are the most & very essential to run the bank, without finance nobody cannot do anything in society. So we need to understand the how they are utilizing financial sources in bank. And to know which sources are very essential in bank. Scope of the study:- This study is covers the co-operative bank located in sindhanur city. For this purpose I have chosen RDCC (Raichur Distic Center Cooperative ltd) bank manager & staff to collect the information regarding for the completion of the project.

METHODOLOGY:- The methodology adopted towards study is descriptive in nature. This covers theoretical aspects relating towards the sources of finance.Source of data:- The data furnished in this report has been collected from two sources they are: Primary sources Secondary sources Primary sources:- The data furnished in this project has been collected from direct communication, questioner.Secondary sources:- The Secondary Sources of data as follows: Internet Books Article Journal Bank Manuals.

Limitations of the study: The study of finance is restricted to RDCC bank. The analysis of project is based on the information given by the bank only. The time confined is very limited. Lack of sources.

Chapter scheme Chapter- IThe introduction of sources of finance, History and present scenario of Indian banking system.Chapter IIThe various objectives, statement of problem, need for the study, limitations and methodology used are stated.Chapter III The over all company profile of RDCC bank.Chapter IVThe interpretation data analyzed and collected are stated. Chapter VThe suggestions are given in related in related to findings of data analysis and interrelated.

CHAPTER-II Introduction A bank is an institution which deals in money. It means that bank receives money in the form of deposits from public and lends money to the developments of trade and commerce several economists have defined the term Banking in various ways. Growth is in bank an outline of money says that the present day banker has three ancestors merchant, money lender and goldsmith. a modern bank is something of each of there ,it is said that money has a properties, it is flat that it can be field up it is round that it can circulate the progeny of the money lender are concerned with sound money, circulating money ,cash this definition shows the origin of banking. A bank performs to important functions one is accepting the deposits; the other is lending the deposits to the need people the purpose of accepting deposits is to lend. As such a suitable definition of a bank should include one more very important function, namely creation of credit, accordingly bank is defined as an institution, which deals money and credit .thus a bank barrows money, lends money and credit. In other words, bank buys the credit from it customers sell it own credit to them.

Organization HistoryA Bank is a business which provides financial services for profit. Transactional Banking Services include receiving deposits of money, lending money and processing transactions. Bank plays a premier role in the financial system of a country. The Banking activities include acceptance of deposits repayment of the same on demand, lending the surplus funds to earn profits by way of interest, Commission, brokerage etc.Origin of Bank The word bank or banking is derived from the Italian word banque which means a bench used by the money-changers and money lenders in ancient and medieval items. In Italy, Greece, England and other European countries, the basic function of money lender was the money lending & the money changing. In England the origin of banking can be traged to the gold smiths, who used to perform the functions of lending and changing money. The goldsmiths used to accept deposits of gold or money from the rich people for safe custody and issue receipts for the same. In course of time, because of lack of confidence in goldsmiths, independent banking institutions were set up to finance, commerce, trade & industry. By 1830, big bank formed as joint stock companies under the regulation of government came in to existence in England and later in other countries.

History of Banking in India The Indian banking can be broadly categorized into nationalized private banks and specialized banking institutions. The reserve bank of India acts a centralized body monitoring any discrepancies and short coming in the system. Since the nationalization of banks in1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow moving public sector Banks to fast track approach. The unleashing of products and services through the net has galvanized players at all levels of banking financial institution market grid to look a new at their existing portfolio offering. Conservative Banking practice allowed Indian Banks to be insulted partially from the Asian currency crisis. Indian Banks are now quoting at higher valuation when compared to Banks in other Asian countries that have major problems linked to huge Non-performing Assets and payment default. Co-operative Banks are nimble footed in approached and armed with efficient branch network focus primarily on the high revenue niche retail segments. Meeting the multifarious requirements of the large customers base. Private have been fast on the uptake and are reorienting their strategies using the internet and as a medium the interest as emergency as the new and challenging frontier of marketing with the conventional physical world tenets being just applicable like in any other marketing medium.

Structure of Indian banking system

RESERVE BANK OF INDIA

Non-scheduled banks Development banks

State co-operative bankCommercial banks

Commercial banksCentral co-ope. Banks & primary credit societies

Foreign banksIndian banks

Private sector banksPublic sector banks

New banks (8)Old banks (22)Other nationalized banks(19)SBI & associated banks (07)

Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors.For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process.

The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India.

Meaning and Definition of BankMeaning: A bank is an institution, which deals in money and provides credit. It borrows money from those who have surplus money & lends the same to those who are in need of it. It is a dealer financial systemDefinition: According to h p Sheldons, the function of receiving money from his customer & repaying it by honoring their cheques as & when required is the function above all other functions which distinguish a banking business from any other kind of business.Kinds of banks1. Central bank2. Indigenous bankers3. Regional rural bank4. Co-operative bank

1) Meaning of Central Bank:- Most countries have a central bank which issues the countrys currency and hold the reserve deposits of other banks in that country. It also either initiates or carries out the countrys monitory policy, including keeping tabs on the money supply. 2) Indigenous Bank :- The indigenous bankers who belonged to different communities lend money on the security of jewels and also on promissory notes.3) Regional Rural Bank:- A rural bank is a financial institution that helps rationalize the developing regions or developing country to finance their needs specially the projects regarding agricultural progress4) Introduction of Co-operative Bank

The Co operative banks in India started functioning almost 100 years ago.The Cooperative bank is an important constituent of the Indian Financial System

, judging by the role assigned to co operative, the expectations the co operative is supposed to fulfill, their number, and the number of offices the cooperative bank operate. Though the co operative movement originated in the West, but the importance of such banks have assumed in India is rarely paralleled anywhere else in the world. The cooperative banks in India play an important role even today in rural financing. The businesses of cooperative bank in the urban areas also have increased phenomenally in recent years due to the sharp increase in the number of primary co-operative banks. 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 Regulations Act 1949 and Banking Laws (Co-operative Societies) Act,1965. Cooperative banks in India finance rural areas under: Farming Cattle Milk Hatchery Personal finance Cooperative banks in India finance urban areas under: Self-employment Industries Small scale units Home finance Consumer finance Personal finance

Meaning of cooperative bank: Co-operative bank is an autonomous association of persons united voluntarily to meet their member's financial (loans, deposits, other services), economic, social, and cultural needs and aspirations through a democratically controlled way.Definition of co-operative bank:Cooperative bank Member-owned organization n, similar to a mutual savings and loan association that makes loans and pays interest on pooled deposits. Cooperatives in the United States are credit unions Federal Intermediate Credit Banks, and Banks for Cooperatives in the Farm Credit System (FCS) , and state chartered savings associations in several New England states.Some facts about Cooperative banks in India Some cooperative banks in India are more forward than many of the state and private sector banks. According to NAFCUB the total deposits & lendings of Cooperative Banks in India is much more than Old Private Sector Banks & also the New Private Sector Banks This exponential growth of Co operative Banks in India is attributed mainly to their much better local reach, personal interaction with customers, and their ability to catch the nerve of the local clientele. There are two main categories of the co-operative banks: Short term lending oriented co-operative Banks within this category there are three sub categories of banks vise state co-operative banks, District co-operative banks and Primary Agricultural co-operative societies. Long term lending oriented co-operative Banks within the second category there are land development banks at three levels state level, district level and village level. Features of Cooperative Banks: Co-operative Banks are organized and managed on the principal of co-operation, self-help, and mutual help. They function with the rule of one member, one vote. Function on no profit, no loss basis. Co-operative banks, as a principle, do not pursue the goal of profit maximization. Co-operative bank performs all the main banking functions of deposit mobilization, supply of credit and provision of remittance facilities. Co-operative Banks provide limited banking products and are functionally specialists in agriculture related products. However, co-operative banks now provide housing loans also.UCBs provide working capital loans and term loan as well.The State Co-operative Banks (SCBs), Central Co-operative Banks (CCBs) and Urban Co-operative Banks (UCBs) can normally extend housing loans up to Rs 1 lakh to an individual. The scheduled UCBs, however, can lend up to Rs 3 lakh for housing purposes.The UCBs can provide advances against shares and debentures also. Co-operative bank do banking business mainly in the agriculture and rural sector. However, UCBs, SCBs, and CCBs operate in semi urban, urban, and metropolitan areas alsBrief History of Urban Cooperative Banks in India : The term Urban Co-operative Banks (Cubs), though not formally defined, refers to primary cooperative banks located in urban and semi-urban areas. These banks, till 1996, were allowed to lend money only for non-agricultural purposes. This distinction does not hold today. These banks were traditionally centered around communities, localities work place groups. They essentially lent to small borrowers and businesses. Today, their scope of operations has widened considerably.The origins of the urban cooperative banking movement in India can be traced to the close of nineteenth century when, inspired by the success of the experiments related to the cooperative movement in Britain and the cooperative credit movement in Germany such societies were set up in India. Cooperative societies are based on the principles of cooperation, - mutual help, democratic decision making and open membership. Cooperatives represented a new and alternative approach to organization as against proprietary firms, partnership firms and joint stock companies which represent the dominant form of commercial organization.The Beginnings: The first known mutual aid society in India was probably the Anyonya Sahakari Mandali organized in the erstwhile princely State of Baroda in 1889 under the guidance of Vithal Laxman also known as Bhausaheb Kavthekar. Urban co-operative credit societies, in their formative phase came to be organized on a community basis to meet the consumption oriented credit needs of their members. Salary earners societies inculcating habits of thrift and self help played a significant role in popularizing the movement, especially amongst the middle class as well as organized labour. From its origins then to today, the thrust of UCBs, historically, has been to mobilize savings from the middle and low income urban groups and purvey credit to their members - many of which belonged to weaker sections.The enactment of Cooperative Credit Societies Act, 1904, however, gave the real impetus to the movement. The first urban cooperative credit society was registered in Canjeevaram (Kanjivaram) in the erstwhile Madras province in October, 1904. Amongst the prominent credit societies were the Pioneer Urban in Bombay (November 11, 1905), the No.1 Military Accounts Mutual Help Co-operative Credit Society in Poona (January 9, 1906). Cosmos in Poona (January 18, 1906), Gokak Urban (February 15, 1906) and Belgaum Pioneer (February 23, 1906) in the Belgaum district, the Kanakavli-Math Co-operative Credit Society and the Varavade Weavers Urban Credit Society (March 13, 1906) in the South Ratnagiri (now Sindhudurg) district. The most prominent amongst the early credit societies was the Bombay Urban Co-operative Credit Society, sponsored by Vithaldas Thackersey and Lallubhai Samaldas established on January 23, 1906.The Cooperative Credit Societies Act, 1904 was amended in 1912, with a view to broad basing it to enable organization of non-credit societies. The Maclagan Committee of 1915 was appointed to review their performance and suggest measures for strengthening them. The committee observed that such institutions were eminently suited to cater to the needs of the lower and middle income strata of society and would inculcate the principles of banking amongst the middle classes. The committee also felt that the urban cooperative credit movement was more viable than agricultural credit societies. The recommendations of the Committee went a long way in establishing the urban cooperative credit movement in its own right.In the present day context, it is of interest to recall that during the banking crisis of 1913-14, when no fewer than 57 joint stock banks collapsed, there was a there was a flight of deposits from joint stock banks to cooperative urban banks. Maclagan Committee chronicled this event thus:As a matter of fact, the crisis had a contrary effect, and in most provinces, there was a movement to withdraw deposits from non-cooperatives and place them in cooperative institutions, the distinction between two classes of security being well appreciated and a preference being given to the latter owing partly to the local character and publicity of cooperative institutions but mainly, we think, to the connection of Government with Cooperative movement.Under State Purview: The constitutional reforms which led to the passing of the Government of India Act in 1919 transferred the subject of Cooperation from Government of India to the Provincial Governments. The Government of Bombay passed the first State Cooperative Societies Act in 1925 which not only gave the movement its size and shape but was a pace setter of cooperative activities and stressed the basic concept of thrift, self help and mutual aid. Other States followed. This marked the beginning of the second phase in the history of Cooperative Credit Institutions.There was the general realization that urban banks have an important role to play in economic construction. This was asserted by a host of committees. The Indian Central Banking Enquiry Committee (1931) felt that urban banks have a duty to help the small business and middle class people. The Mehta-Bhansali Committee (1939), recommended that those societies which had fulfilled the criteria of banking should be allowed to work as banks and recommended an Association for these banks. The Co-operative Planning Committee (1946) went on record to say that urban banks have been the best agencies for small people in whom Joint stock banks are not generally interested. The Rural Banking Enquiry Committee (1950), impressed by the low cost of Establishment and operations recommended the establishment of such banks even in places smaller than taluka towns.The first study of Urban Co-operative Banks was taken up by RBI in the year 1958-59. The Report published in 1961 acknowledged the widespread and Financially sound framework of urban co-operative banks; emphasized the need to establish primary urban cooperative banks in new centers and suggested that State Governments lend active support to their development. In 1963, Varde Committee recommended that such banks should be organized at all Urban Centres with a population of 1 lakh or more and not by any single community or caste. The committee introduced the concept of minimum capital requirement and the criteria of population for defining the urban centre where UCBs were incorporated.Duality of ControlHowever, concerns regarding the professionalism of urban cooperative banks gave rise to the view that they should be better regulated. Large cooperative banks with paid-up share capital and reserves of Rs.1 lakh were brought under the perview of the Banking Regulation Act 1949 with effect from 1st March, 1966 and within the ambit of the Reserve Banks supervision. This marked the beginning of an era of duality of control over these banks. Banking related functions (viz. licensing, area of operations, interest rates etc.) were to be governed by RBI and registration, management, audit and liquidation, etc. governed by State Governments as per the provisions of respective State Acts. In 1968, UCBS were extended the benefits of Deposit Insurance.Towards the late 1960s there was much debate regarding the promotion of the small scale industries. UCBs came to be seen as important players in this context. The Working Group on Industrial Financing through Co-operative Banks, (1968 known as Damry Group) attempted to broaden the scope of activities of urban co-operative banks by recommending that these banks should finance the small and cottage industries. This was reiterated by the Banking Commission (1969)The Madhavdas Committee (1979) evaluated the role played by urban co-operative banks in greater details and drew a roadmap for their futurerolerecommending support from RBI and Government in the establishment of such banks in backward areas and prescribing viability standards.The Hate Working Group (1981) desired better utilization of banks' surplus funds and that the percentage of the Cash Reserve Ratio (CRR) & the Statutory Liquidity Ratio (SLR) of these banks should be brought at par with commercial banks, in a phased manner. While the Marathe Committee (1992) redefined the viability norms and ushered in the era of liberalization, the Madhava Rao Committee (1999) focused on consolidation, control of sickness, better professional standards in urban co-operative banks and sought to align the urban banking movement with commercial banks.A feature of the urban banking movement has been its heterogeneous character and its uneven geographical spread with most banks concentrated in the states of Gujarat, Karnataka, Maharashtra, and Tamil Nadu. While most banks are unit banks without any branch network, some of the large banks have established their presence in many states when at their behest multi-state banking was allowed in 1985. Some of these banks are also Authorized Dealers in Foreign ExchangeRecent DevelopmentOver the years, primary (urban) cooperative banks have registered a significant growth in number, size and volume of business handled. As on 31st March, 2003 there were 2,104 UCBs of which 56 were scheduled banks. About 79 percent of these are located in five stateFunctions of district center of co-operative bank in India These are the principal co-operative societies in the districts, in a state, the primary object of which is functioning other co-operatives, particularly the PACBs in the district. The DCCBs came in to existence after the passing of co-operative societies Act, 1912. These institutions also undertake banking business.These institutions act as balancing centers of finance at the district level. They purvey the short term & medium term credit to the agriculturists. They also supervise the PACBs in the districts.

Meaning of sources of finance:- A source of finance means the agencies from which the funds are obtained or called, method of raising finance and period for which funds are required.The finance requirements can be classified into two categories: Fixed capital ( long term financial requirements ) Working capital ( short term financial requirements )Fixed capital:- Long term funds are required to meet the capital expenditures such as purchase of Land and Building, Plant and Machinery, furniture etc.Working capital:- Short term funds are required to meet out day to day expanses such as purchases of row material, payments of salaries and wages etc.Classification of sources of finance:- The sources from which a business meets its financial requirements can be classified as follows:1. on the bases of period 2. on the bases of ownership3. on the bases of sources of generation

On the bases of period:-On the bases of period, the sources of finance can be classified as follows: long term source:E.g. shares, debentures and long term loan. Short term sources:E.g. loans from commercial banks, public deposits, trade credit etc.On the bases of ownership:- On the bases of ownership, the sources of finance can be classified as follows: Own capital: E.g. share capital, retained earnings, reserves and surplus. Borrowed capital:E.g. debenture, public deposits, loans etc.On the bases of source of generation:- On the bases of sources of ownership, the source of finance can be classified as follows: Internal sources:E.g. retained earnings, depreciation fund etc. External sources: E.g. shares, debentures and loan

Classification of Sources of Finance

Short term Long & medium term

1. indigenous bankers Issue of shares 2. customers advance Issue of debentures 3. trade credit plugging back of profit4. bank credit public deposits5. factoring loans from financial institutions6. accruals7. differed incomes8. commercial paper9. installments credit

Short term finance:- Meaning of short term finance:- It is a fund required to meet the short term needs of working capital for a period of 12 months or less than 12 months. It is used for office equipment, furniture, loose tools, payment of salaries & wages, purchase of row materials etc.1. Indigenous bankers:- Private money lenders are called indigenous bankers. They charge very high rate of interest. Business enterprises obtain the loan from indigenous bankers to meet their requirements of working capital.2. Customers advances:- Companies may take advance from their customers for meeting out their short term financial requirements. 3. Trade credit:- It is a credit granted by seller to the buyer for a short period. It is made available to companies who have sufficient financial reputation and goodwill. Trade is granted on an open account bases I.e. the supplier sends the goods to the buyer for the payment to be received in future as per the term of sales invoice.

4. Bank credit:- Commercial banks provide the short term finance to business concerns by way of: Cash credit Overdraft Bill discounted and purchased5. Cash credit:- It is a short term loan given by the banker to customer, against a tangible security or promissory note signed by at least two parties.Over draft:- It is a temporary loan given by the banker to customer against the current account. Usually such loan is repayable within 90 days. Overdraft means the current account holder can withdraw the amount more than the balance maintained in the account. Interest is charged on the actual amount withdrawn. Over draft accounts can be secured or unsecured but usually secured.Bill discounted and purchased:- Bill discounted means taking the bills of exchange receivable by a customer and paying him the amount of bill before maturity after deducting their discount charges.

5. Factoring:- Factoring is a method by which a businessman obtains cash for invoice that he sends to his customers in respect of goods and service to them. Factoring is also called invoice discounting. Factoring is a method of financing under which a business enterprise obtains cash by selling or accounts receivable. The outright sale of accounts receivable by a business concern against cash is called factoring Factoring may render the service on the bases of recourse or non-recourse1. Recurring bases:- It means risk and bad debts by the client.2. Non-recourse basis:- It means risk of credit is borne by the factory6. Accruals:- Companies postpone the accrued expenses in respect of which payment are due. This delay in payments of accrued expenses helps the company to use such amount for meeting their short term financial requirements of expenses like Accrued expenses, wages, salaries, interest and taxes, but delay in payment may reduce the credit worthiness & goodwill of the company.

7. Deferred incomes:- There are the incomes received in advance before supplying the liquidity of a firm.8. Commercial incomes:- Commercial paper represents unsecured promissory notes issued by firms to raise the short term funds. It may be issued event at a discount. The maturity period of commercial paper in India mostly ranges from 91 to 180 days.9. Installment credit:- Purchase of any durable or capital goods like plant & machinery, furniture etc.Paying the cash price by way of installment including interest over a pre-determined period of time. In this system, buyer becomes owner immediately & has to take the possession of goods. Usually interest is charged on unpaid balance.

Long term finance:- It is a fund required to meet the long term needs of working capital for more than 12 month1. Issue of shares:- Meaning of shares:- The total capital of the company is dividend into small units of small denominations. Each unit is called share. Meaning of stock:- The bundle of fully paid up share is called stock. In another wards, the aggregate of fully paid up share is called stock.Equity shares:- These are shares which do not carry preferential right in respect of payment of dividend or payment of capital. Equity share are called ordinary shares or common shares. Equity share capital is ownership capital in a company. Equity shareholders are called owners of a joint stock company. These shareholders have control over the working of the company. Equity shareholders are paid dividend after paying the dividend to preference shareholders. That is why they are called residual claimants the rate of dividend payable on equity shares depends upon the profits of the company. These shareholders take more risk in dividend & return of capital.

Preference shares:- Preference share are those which enjoy two preferential rights over equity share:A. Preference as to payment of dividend at a fixed rate.B. Preference as to the return of capital when the company winds up. Whenever the company has distributable profits, the dividend is first paid on preference capital. Afterwards the remaining profit is distributed as a dividend to other shareholders.2. Issue of debentures:- It is a long term borrowed of capital. A debenture is an acknowledgement in writing of debt taken by a company Meaning:- The word debenture is derived from the Latin word debar which means to owe. Therefore debenture is an acknowledgement give by a company of a debt in the form of certificate: Definition:- Section 2 (12) of the companies Act, debenture includes debenture stock, bonds & any other securities of a company whether constituting a charge on the assets of the company or not

3. Plugging bank of profits:- Part of the profits is retained or reinvested in the company. This process of retaining profits year after year & their utilization in the business is also known as ploughing back of profits or self financing or Internal financing or Internal Financing.4. Public deposits:- Company may invite the general public to deposit their savings with the company at a specified rate of interest for a specified period which may range from 1 year to 6 years. The total amount of such deposits should not exceed 25% of the aggregate paid-up capital & free reserves of the company. In order to help the repayment of deposits maturing during a year, a part of the assets of the company shall, before the 30th day of April of each year, deposit or interest, a sum which shall not be less than 10% of the deposits maturing during the year ending on 31st march next following, in a scheduled bank or government securities5. Loans from finance institution:- These institutions are set up by the government with the objective of stimulating industrial development in the country by financing the industries.

Chapter- IIIIndustrial profile Co-operation is a form of organization wherein persons voluntarily associate together on the basis of equality for the promotion of their economic interest under this system people with limited means are benefited much. Each for all and for each is the philosophy and principle of co-operation.The history of co-operative movement in India began at the end of 19th century. Several credit cooperative societies were established in the states of the Punjab and Uttar Pradesh. During that period the madras government sent Sir Fredric Nicholson to Germany to study the co-operative movement taking place there. Nicholson submitted his report in 1895 and suggested to establish raiffiesen model societies in our country. In 1901 the Famine commission also recommended for the establishment of these societies. Based on this, the government passed Co-operative societies act in 1904. This act laid the foundation for co-operative movement in India. The co-operative societys act 1904 gave opportunity for the establishment of raiffiesen model societys rural areas and Schultz doltish societies in cities. However, there were some defects in this act this act did not provide opportunity for credit societies and the distinction between cities and rural areas was not made on scientific basis therefore, in order to remove these defects the New co-operative societies act was passed in 1912 In 1919 the government promulgated another co-operative act and co-operation was entrusted to the state authority this act has given right to the states either to follow the 1912 co-operative societies act or to enact there own law. As a Result, the states have established co-operative societies according to regional requirements the great depression of the world gave a big blow to co-operative movement but during the Second World War co-operative movement again started flourishing

AFTER INDEPENDENCE: - After independence co-operative movement received good encouragement from the government. Co-operative movement has become the basic principle of planned development during the five year plans. During the plan period different co-operative societies were established. Co-operative movement has achieved rapid progress in the states of Karnataka, U P, Maharashtra, Tamil Nadu, Gujarat, Punjab, Hariyana etc. co-operative movement has spread all over the country . Co-operative societies are especially suitable for the development of small and cottage industries. Therefore co-operative societies were established in every corner of the economy.PROGRESS OF CO-OPERATIVE MOVEMENT Co-operative sector in India is the largest in the world. In 1950-51 the total number of agriculture primary credit societies was 1.05 lakhs with 44lakh members. They had Rs 37.25 crore as working capital and had advanced credit to the tune of Rs 23 crore. In 1998-99 there were 91720 agricultural primary societies with 8.12 crore members. During this period their total working capital was Rs 10718 crore. During the same period 2970 primary land development banks and 7460 primary agricultural marketing societies were functioning with a total membership of 48 lakh. in 1998-99 the total number of all types of societies were 3.95 lakh and the total membership was 18.96 crore. They had Rs 118700crore as share capital.

Board of directors: 1. Mr.vishvanath patil (president)2. Mr.manjunath siddapoor (vice-president)3. Mr.C.ningaraj 4. Mr.halappa achar (director)5. Mr.mnohara maski (director)6. Sharanagoud bayyapoora (director)7. Mr.ramesha vaidya (director)8. Mr.rajashekar nayaka (directer)9. Mr.K.sharanappa(directer)10. Mr.pampanagoud badarli (directorss)11. Mr.anantaraddy halli (director)12. Mr.appanagouda kalakanagouda (director)13. Mr.muniyappa hubli(director)14. Mr.hanumanagouda patil (director)15. Mr.timmayya shetty (director)16. Mr.jabbar beg 17. Mr.narayana raju (special invite director)18. Mr.B.mahadevayya(special invite director)

Values of co-operative bank1. self responsibility2. democracy3. solidityIn tradition of their founders, co-operative members believe in the ethical values of honesty, openness, social responsibility & caring of other.Principles of co-operative bank; 1. Voluntary & open membership only for co-operative societies which are working in raichur district only.2. Democratic member control.3. Member economic participation.4. Autonomy & independence.5. Education, training & information.6. Co-operation among co-operators.7. Concern for community.

Branches of RDCC bank 1. Head office Raichur2. Gunj branch Raichur3. City talkies road Raichur4. Gajgarpet Raichur5. Nijalingappa colony Raichur6. Station area Raichur7. IDSMT layout Raichur8. Manvi9. Sindhanur10. Gangavati11. Koppala12. Yalburga13. Kukunoor14. Kushtagi15. Hanumasagara16. Lingasugur17. Devadurga 18. Kavital19. Koppals station area

RESARVE BANK OF INDIA THE CO-OPERATIVE STRUCTURE

NATIONAL BANK FOR AGRICULTURAL AND RURAL DEVELOPMENT

CO-OPERATIVE CREDIT SOCIETIES OTHER CO-OPERATIVE SOCIETIES

NON-AGICULRAL CREDIT SOCIETIES AGRICULTURAL CREDIT SOCIETIES

LONG TERM AGRICREDIT SOCIETIES SHORT TERM AGRI CREDIT SOOCIETIES Urbanco-opebank Employeesco-ope Credit Societies Primary credit societies Central co-operative banks State co-operative banks Primary credit societies Primary land devpt banks Central land devpt bank Company ProfileIntroduction: - The RDCC (Raichur District Commercial Co-operative Bank) was been established in the year in the year 1919. In between the Krishna & Tungabhadra River middle place Raichur and koppal district has its 18 branches and 215 VSSBN agencies (Vyavasaya Seva Sahakari Bank Niyamita). The RDCC bank has a huge working capital of Rs 28283.53 lakhs and has lent loans of Rs 17209.22lakhs already and has gained satisfaction of the customers through the effective service. The branch of sindhanur has been started in the year 1921.It is the one of the major branch of RDCC bank and has the highest record as compare to the others of Raichur district. The sindhanur branch has landed the loans of Rs 50 crore among which 35 crore in agriculture loan remaining in non agriculture. The RDCC bank not only a lending bank but it also has the facility of different accounts like savings A/c, current A/c and also the fixed deposit A/c. Apart from this the bank offers a special scheme called as YASHASHVINI health insurance scheme for the members of the VSSBN, with just an annual fee of Rs150 for each person which can be extended to is whole family. And also offers a special card called KISAN CREDIT CARD for the farmers who taken loan under this card the loan amount will be transferred and the interest will be charged only to the amount withdrawn. This is one of the unique services of this bank.

The interests for the rate for the different accounts are shown below:Interest of bank in 01 July 2011:SAVING ACCOUNT INTREST : 4.00 (IN %) INTREST OF FIXED DEPOSIT:FIXED DEPOSIT A/CINTREST (IN %)

15DAYS TO 30DAYS4.00

31DAYS TO 45DAYS4.50

46DAYS TO 90DAYS5.50

91DAYS TO 120DAYS6.75

121DAYS TO 180DAYS7.50

181DAYS TO 1YEAR8.50

1YEAR TO 2YEAR9.50

ABOW 2 YEARS9.25

BANKING MEMBERS:-COLLECTING OF FUND IN MEMBERSSL.NOSUMMERY31-03-201031-03-2012

01COMEETIES804828

02GOVT001001

TOTAL805829

SHARE CAPITAL:-THE BANK COLLECTING OF SHARE CAPITALSL.NOSUMMERY31-03-201131-03-2012

01FROM COMEETIES908.031004.99

02FROM GOVT381.87381.87

TOTAL1289.901386.86

FUND:-SUMMERY OF VARIES FUND IN BANK ON 31-03-2011 PARTICULERS31-03-201131-03-2012

RESARVE FUND FREE RESARVE289.39301.34

OTHERS FUND746.73754.25

TOTAL1036.121055.59

Depositers:-SUMMERY OF VERIES DEPOSITS CONSERN WITH THE BANK ON 31-03-2011 Summery31-03-201031-03-2011

1.Organisation DEPOSITS8487.568511.61

2.PERSONAL DEPOSITS8509.259266.64

3.COMEENITY DEPOSITS2237.562417.87

TOTAL19234.3720195.94

BORROWING LOANS:-SL.NOSUMMERRY31-03-2010BALANCE2010-11BORROWING LOAN2010-11REPAYBLE31-03-2011BALANCE

1SHARTE-TERM LOAN9091.878258.589291.878058.58

2MEDIUM-TERM LOAN222.56_62.08160.48

3LONG-TERM LOAN0.76__0.76

TOTAL9315.198258.589353.958219.82

WORKING CAPITAL:-WORKING CAPITAL IN ORGANISATION 31-03-2011 IN RS.3173.14 IN LACK END OF THE YEAR REPORT SHOWING WORKING CAPITAL RS.3227.21 LA

Loans and advances:-

SL.NOPARTICULERS31/03/201031/03/2011

1SHORT-TRM AGRICULTUR13833.7915542.67

2MEDIUM-TRM AGRICUTUR520.58728.57

3MEDIUM-TRM (IN %)24.6311.82

4LONG-TRM AGRICULTUR886.90593.94

5NON- AGRICULTUR (S)4374.744081.69

6NON-AGRICULTUR (M)1151.451535.78

7NON-AGRICULTUR (L)238.08407.97

8EVALUATION COMEETY BALANCE29.1631.95

TOTAL21059.3322934.39

RS.24282027.27 PROFIT TRASACTION SUMMARY THE YEAR OF 2011

SL.NOPARTICULERS%AMOUT(IN RUPEE)

1RESARVE FUND25%6070507.00

2EDUCATION FUND2%364230.00

3DISTRUBUTE DEVIDEND6.50%9014615.00

4AGRICULTURAL CREDIT STABILISATION FUND25%2208169.00

5BAD&DOUTFULL DEBTS FUND25%1656127.00

6INVESTMENT FLACTUVATION FUND10%496838.00

7CONSTRACTION FUND60%2682925.00

8SPECIAL MEMBERS FUND5%89431.00

9ORGANISATION FUND5%84959.00

10DEVIDEND EQULISATION FUND5%80711.00

11YASHASVINI FUND3%46005.00

12NON-DISTRIBUT AMOUNT1487510.00

Promoters:- The RDCC bank is a state government bank which deals as per the instructions of RBI. The bank does not have any other promoters but the bank collects funds from the NABARD bank. Trough the help of APEX bank. The sindhanur branch has the following chair persons.1} Mr. Pampana Gouda badarli [VSSBN]2} Mr. Amare Gouda Virpapur [Urban bank]3} Mr. VenkanGouda Malkapur [TAPCMC]Company mile stone Minimum NPAs only just 3 %. Highest growth rate of 22%. 2008-09 maximum recovery (93%) and good service Award. Bank had created goodwill among the common people.

Objectives of the bank To help the common peoples by providing loans in less interest. Develop the common peoples life in economically Help to formers by providing agricultural loan.

Vision of the bank: To protect collected money. Provide better service. Mission statement of bank: While working on co-operative principles provide resources and provide loans to all borrowers with more forecast on micro finance and non form sector ( NFS ) as also to provide modern banking services has to bring about economic development along with social welfare of its members and to achieve its own violate. Different services of RDCC bank : - Providing loans in to categories agricultural loan Non agricultural loan Crop loan, irrigation loan , forestry loan , pond loan , godown loan, tractor loan etc Gold loan , SME loan , home loan , etc Kisan credit card for the formers. Yashsvini health insurance for the members of the VSSBN Low rate interest rates & safe-deposit locker facility etc Different Accounts facilities

Savings A/c Current A/c Recurring deposit A/c Fixed deposit A/c

Organizational structure:

Branch manger

Assistant manager

Supervisor

CashierAccountants

Junior assistant

Clarks

Attainders

BALANCE SHEET AS ON 31-03-2009 :Liabilities Amount

Assets Amount

Fixed Deposit Societies64036745Bank account 6293649.38

Fixed Deposit Individuals18315944Investment with PGB snd 12340214

Fixed Deposit Institutions6958680Syndicate bank 10240

Reserve Fund Of Societies11630599.84Loans & advances 0

Jeevan Jyothi Deposit Societies12347486S T loans big farmers 18016

Jeevan Jyothi Deposit Individuals1946004S T loans small farmers 58494

Jeevan Jyothi Deposit Institution70141.4K C C big farmers 149959725

Special Deposit Scheme If Any 14400K C C small farmers 125654883

Recurring Deposit Individual & Inst321935M T form sector 16800705.4

Kamadenu Deposit A/c 76338.5S T other crops 1500000

Saving Societies24777843.86M T non form society 481390.1

Savings Individuals11399058.7S T liquidated society425069

Saving Institutions18402270.01M T O loans liquidated 47400

Current Societies4999588.73Non agri S T loans85769

Current Individuals390643.88L T loan land development 23756685

Unclaimed Deposits380674.12Rural godown construction 11506123

Conditional S B A/C (GFA)839625b)housing to general 2506135

Other Liabilities0C C employees societies C C 113520348

Suspense Liabilities1944198.74C C Tapepsts fishery production 610000

Individual & Institution502598.6C C clean A/c 0

Clearing Suspense liabilities 32154S T Marketing Crop56509870

Interest Payable On Deposits3056614.5Salary Earners Loan3538119.4

Others payable Pay Order A/C972175Petty Traders0

Head Office Account241662353.7Over Drafts5297095

NET PROFIT15616371.18S H G Loan4849282

Loan On FD/RD/Contribution3823199

Loan On NSC113296

Other Assets0

Bills Receivable Form GOI792191

Trading Account/Sale Of Forms60883

Furniture & Fixture26446

440694443.78440694443.78

Profit & Loss a/c for the Year Ending 31-3-2010ExpenditureAmountIncomesAmount

To interest paid on Deposits & Borrowings11,538,626.98By interest & discount52,299,155.34

To Rent, Taxes, Insurance, Lighting etc.133,409.00By commission, Exchange & brokerage52,240.00

To stationary, Printing, & Advertisement charges11,632.00By interest on investment & deposits37,282.00

To other Expenditure & contingencies284,172.33By locker rent19,700.00

By miscellaneous incomes936,064.56

Balance of profit before tax41,376,601.59

Total expenditure53,344,441.90Total income53,344,441.90

Balance sheet as on 31-3-2010Liabilities31-3-2010assets31-3-2010

Statutory Reserve fund220.00Cash in hand4464377.00

Fixed deposit individual31307412.12Current a/c in India11843254.11

Fixed deposit other societies91693167.24Other investment10,332,468.00

Saving bank deposit individual14613082.63Other tangible securities ST Agri loan & non Agri loan415360653.50

Saving bank deposit other societies61325151.88Jewel loans7454385.00

Current deposit individual545788.88Cash credit loans17438984.00

Current deposit other societies14640643.46MT Agri & non-Agri loans40790621.78

Head office account 350,490,397.14Housing loans3561095.00

Suspense liability1,726,133.54Long term loans60972034.00

Interest payable3,892,538.50Amount due from the individual & societies545577773.28

Over due interest reserve as per contra116,236,917.29Amount over due48318000.00

DD & pay order payable143,55.00Bill receivable from GOL673,610.00

Service tax payable195.00Interest receivable on loan as per contra116,236,917.29

Subsidy for self help groups2,513,200.00

Total liabilities689128399.68Total assets689128399.68

Profit and loss A/C for the year ending 31-03-2011:expenditureAmount Incomes Amounts

Interest paid on deposits12126143.50Interest received on investment924395

EstablishmentCharge1927997Interest received on non-agri loans156699315.35

Medical Allowances

4500Interest received on agri loans30762090

P,F. contributionBy bank118079Commission &Brokerage 49750

T.A. to staff13435Locker rent received 20288

Office rent82500Miscellaneousincomes 1259768.79

ElectricityCharge54656

Postage &Telephone10830.5

Stationary for office use10497

Subscription toPeriodicals1142

National festivalExpenditure1078

Petrol charge64558

Hire charge54000

Contribution towards PAIS5541

MiscellaneousExpenditure157624.53

Clearing house rent9000

Interest paid onHEAD OFFICE A/C24970916.19

Profit during the year9124770.42

total48715607.1448715607.14

BALANCE SHEET AS ON 31-03-2011LIABILITIESAMOUNTASSETSAMOUNT

Statutory reserve fund51820Cash on hand5200420

Fixed deposits129881532.84Bank balance26242371.06

Societies56367781Investment on STD with national bank4245836

Individuals34779178Short term loans76510

Institution 4208070KCCF BF156670899

Reserve fund societies15417250.54KCCS SF21588151

Jeevana jyothiInstitution17857Medium termAgri33254482.40

Jeevan jyothiIndividuals3066140Long term loan Agri24994498

Jeevan jyothiSocieties15468041Short term loan (non-agri)85769

Recovering deposits557215Cash credit loan23645680

Demand deposits90475782.03M T non agri 1880947.10

SB A/C societies12216119.73SHG loans11888732

SB A/CIndividuals16816931.37S T marketing35354231

SB A/CInstitutions23370171.87L T rural go down24920004

Contribution SB A/C (GFA)1162625Salary earner loan5169137.61

Current societies36129609.60Petty traders109216.50

Current individuals389571.88Gold loan16576532

UnclaimedDeposits390753.12Loan on deposits4041752

SuspenseLiabilities1374666.46House BLDG (gen)4171644

Pay order 174213Short term loans325069

Reserve fundSubsidy (RRG&SHG)3428200Medium term regular47400

Service tax payable29312Other assets601566

Over due interest on loans95742467.68Over due interest on loans95742467.68

Interest receivable on loans21071247.32Interest receivable on loans 21071247.32

Interest payableOn deposits3716171

Head office a/c351834379.92

Profit for the year 2010-20119124770042

Total706904562.67706904562.67

Some scheme provided by bank to customersSwarozgar credit cards for the small business mens.The RDCC bank offers a special scheme called Swarozgar credit card scheme under this scheme the person who have got the credit has a option like as the use so the intrest . It means is that the loan amount will be transferred in that credit card the intrest will be charged only the amount withdrawn by the user of that card. This organization wants to help the government by the providing loans to people & removal of unemployment problem. The RDCC also has a scheme like swasahayaka gumpu yojane. Under this scheme the bank give loan to the youths usually the members of SJSRY (swarna jayanti swarozgar yojane). From that they will earn something return to the bank if they wont earn also bank wont allow intrest on the such loan. After earning again that earned amount is lended to others from that they recover and distribute among the members of such group

Jivan jyothi term deposit scheme and locker Facility. This is a term deposit scheme offered by the RDCC bank in this scheme the interest rate will be given at 6% per annum. They offer compound intrest for the for this scheme. Example if person invested Rs 100000 after one year he will get 106000 Rs if he will invest for 2 years he will get intrest on the whole amount means including the intrest. Locker facilities:- The RDCC offers safe deposit locker facility also at all the branches. Of the district this is one of other feature of this bank. YASHASVINI YOJANE SCHEMEThe RDCC bank offers a special scheme called as yashasvini yojane scheme under this the members of VSSBN (vyavayasaya seva sahakari bank niyamita) has to pay 150 Rs annually and they will get benefit of medical fees while in case of claims. This scheme was promoted by the government of India to protect the farmers against the diseases. The farmers of Raichur district will get benefit of medical facility in the following hospitals i. Rajiv Gandhi hospital Raichur (OPEC)ii. Annadaneshvari hospital Sindhanur iii. R G patil eye hospital Sindhanur. Etc.

Products of bankThere are mainly 3 products are there they are1) Saving account2) Current account3) Term deposit

Saving account Meaning:- An account used to deposit money at a bank or credit union and earn interest on the account over time. Money can be added or removed from the account by visiting the bank. Usually you can add or withdraw funds at any time; there is no cost to do so. Banks may require a minimum to open or to maintain the account.

PROCIDURE OF OPEINING SAVINGS A/C 1) They must submit election id (Xerox) to bank 2) Ration card need to submit 3) 2 Photos with filled form 4) Signature existed A/c holder of that bank 5) Nominee name compulsory.6) SB account with out cheque facility Rs .2507) SB account with cheque facility Rs.5008) Interest rate is 3.50%

Current account Meaning:- The account balance is defined by the some of the value of imports and services plus net returns on investments abroad, minus the value of goods and services, where all these elements are measured in the domestic currency. The Account opening charge is 5000 Rs Term deposit: Meaning:- A deposit held at a financial institution that has a fixed term. These are generally short term with maturities range in anywhere from a month to a few years. Than a term deposit is purchased, the lender or the customer understands that the money can only be withdrawn after the term has ended or by giving a predetermined number of days notice

RDCC bank provided 2 types of loans they are:1. agricultural loan2. non agricultural loanAgriculture loansAgricultural loans are provided by the RDCC bank The agricultural loans includes the followings1) Short-term loans 2) Medium-term loans3) Long-term loans

1) Short-term loans:- These loans refer to the loans which are landed for the period of one year these loans includes the following categories. Kisan credit card Crop loan Cattle loans Tractor loan Kisan credit card:- Its a type of credit card offered by the RDCC bank to the Farmer who took loan called Kisan credit card loan,

Feature of Kinas credit card This card is only for the Farmer who took loan In this card only the loan amount is credited. The interest is charged only on the amount withdrawal from credit card Crop loan :- The crop loan is given to the Farmer on the security of land to purchase the seeds & to incure the expenditure on production of crop.Cattle loans :- The cattle are a special loan lended by the RDCC bank which is helpful to the Farmer to purchase cattles like bullocks etc. Tractor loan : - The RDCC bank provides financial support in purchase of the tractor for the Farmer at a lower interest rate. Its intention is to help Farmer to develop their yielding.2) Medium-term loans:- These loans refer to the loans which have been landed for the period above 1 year to below 10 years. These categories of loans include the following. Pond construction loan Pump set loan etc

3) Long-term loans:- These are the loans which are landed for the period of more then 10 years are to be called as long term loans. Godown construction loan Agriculture implements loan Rural development scheme etc. Irrigation loans

Interest rates for the agriculture loans The RDCC bank is an a government organization which offers the different agriculture loans, the interest rate for the agriculture loan is 11% but the government itself pay 8% to the bank and remaining 3% only the interest charged by the bank on loans. Non-agricultural loansApart from the agriculture loans the RDCC offers non agriculture loans like the followings 1. House loan2. Small term marketing loan 3. Educational loan 4. Gold loan5. Vehicle loan

1) House loan:- The RDCC bank offers the house loan at lower interest rates, the barrower of the loan must have to pledge the documents of the house. Procedure for getting house loan Account open in the bank Surety of a existing account holder in the same Bank Security (Land documents) The house loan will be sanctioned The interest rate for the loan 11.502) Small term marketing loan:- These are the loans provided by the bank to the small scale businessmans to develop their business. Procedure for getting ST marketing loan The account should be opened in RDCC bank. They need to submit 3years balance sheet as well as profit& loss A/c Surety of an existing account holder in that bank. And the loan will be sanctioned within 5-10 days The rate of interest for this loan is 10.50%.3) Educational loan:- The RDCC bank also offers the educational to the students, the educational loan limit up to 5 lakes rupees. The intention before providing educational is to help the students of the rural areas is the motive of this loan. Procedure for getting educational loan :- The loan taker must have an account in the RDCC bank He need to submit his Marks cards to the bank Surety can also be needed , and also the security The interest rate charged for education loan is 13.00%

4) Gold loan:- The bank offers the gold loan also in order to fulfill the needs of the customers. The bank charge interest at 12.00% for gold loan.5) Vehicle loan:- The RDCC bank help the people who desire to own a vehicle by providing them financial help through the vehicle loan. These are the various loan schemes offered by RDCC bank under the category of Agriculture loan.Social responsibilityThis bank not only gives importance to co-operative sector but also gives importance to education, health & social programs & also encourages them. Without any discrimination it helps people according to their qualification. It helps the patients suffering from kidney problem, cancer & other diseases.

Chapter-IVANALYSIS AND INTERPRETATION

1. What are the various sources of finance? Sources of finance are reserves, deposits, borrowing from higher financing agencies etc.

Table 4.1Sources of finance20102011

Reserves4%0.4%

Deposits 26%38%

Higher financing agencies70%62%

Graph 4.1

INTERPERATATION: This table shows that various sources of finance used in RDCC bank. Those financial sources are changed their position year to year.

2. By reaching the bank goal which financial sources bank will selected, why? Deposited collected from the customers is the source to reach the bank goal

Table 4.2

Deposits20102011

Fixed deposit60%59%

Saving a/c37%36%

Current a/c03%08%

Graph 4.2

INTERPRETATION:- This table shows that collection of finance from different sources to reach the bank goal. Collection of finance is changing from year to year, in the year 2009 fixed deposit 60%, saving a/c 37% and current a/c is 03%, but in the year of 2010 fixed deposit 59%, saving a/c 36% and current a/c 08%.

3. How many types of deposits in rdcc bank ? Deposited collected from the customers is the source to reach the bank goals

Table 4.3Deposits20102011

Fixed deposit60%59%

Saving a/c37%36%

Current a/c03%08%

Graph 4.3

INTERPRETATION:- This table shows that collection of finance from different sources to reach the bank goal. Collection of finance is changing from year to year, in the year 2009 fixed deposit 60%, saving a/c 37% and current a/c is 03%, but in the year of 2010 fixed deposit 59%, saving a/c 36% and current a/c 08%.

4. Explain the sources of medium term. Medium term deposit for public and higher agencies in firm of borrowings

Table 4.4

Sources20102011

Public deposit29%28%

Higher agencies52%52%

borrowings09%10%

Graph-4.4

INTERPRETATION:- This table shows that sources of medium term financial sources in bank. In the year of 2010 public deposit 29%, higher agencies 52% and borrowings 09%, in the year of 2011public deposit 28%, higher agencies 52% and borrowings 10%.

5. What are the short term financial sources? Short term financial sources are short term agriculture and non-agriculture loan, jewel loans and cash credit loan.

Table 4.5

Sources20102011

St agri & non-agri loan12%95%

Jewel loan02%

Cash credit loan90%05%

Graph 4.5

INTERPRETATION:- This table shows that short term financial sources in bank. Short term financial sources are changing from year to year , in the year of 2010s t agri & non-agri loan 12%, jewel loan is nil, and cash credit loan is 90%, in the year of 2011 s t agri &

6. What are the long term financial sources? Long term land development, rural godown are the long term financial sources in our bank.

Table no: 4.6

Sources20102011

Long term loan development68%56%

Rural goon34%46%

Graph-4.6

INTERPRETATION:- This table shows that long term financial sources in the bank. This long term financial sources are changing the position from year to year, in the year of 2010 long term loan development 68% and rural godown 34%, in the year of 2011 long term loan development 56% and rural godown is 46%.

CHAPTER-V

Findings and suggestions:1. The financial source is very essential in every company to run the institution.2. Here I find that RDCC bank has given the most preference to agricultural sector.3. Here I find that how to divide the financial sources in bank.4. Here I find that long term financial sources are very essential in bank.5. Here I find that how much interest will charge by proving loan to customers.6. Here I find that to reach the bank goal deposits from customers is useful to bank.7. Here I find that what are the short term, medium term, and long term financial source in bank.8. Here I find that criteria aspects for selecting the best among the long term sources of finance.9. Here I find that bank main aim is develop the common people life in economically.10. Co-ordination among employees is very good

Suggestions1. They are not utilizing much financial sources in bank so they need to utilize all financial sources in bank.2. The bank is giving more importance to the agricultural sector, in the same way they have to give importance to small scale industries.3. Bank should try to innovate new financial sources in bank.4. They have to concentrate on other loans, like home loan, vehicle loan etc.

Conclusion Financial sources are very essential in every organization to accept the deposits and lending the money to customers. Without financial sources banks are cannot run their financial activities in bank. By accepting the finance from financial sources bank financial position will increase, when it is increase they should try to develop their customers life in economically by providing loans in less interest. Sindhanur branch will give most preference to agricultural sector, because this area peoples depends on agriculture, and bank should charge some percent interest on that loan by accepting that interest they can improve their financial position. Finally financial sources are very needed in every institution and person to do any activities in society.

Bibliography Materials Financial statement of past two years. RDCC bank booklets.

Text bookFinancial managementAuthor: - M.Y.KHAN I.M.PANDAY

ANNEXURE1) Which financial sources used to the RDCC bank?A) Public deposit. B) Customer advances.C) Loans from financial institution D) issue of shares

2.) For which sources bank will give the most preference?A) Short term financial sources. B) Long term financial sources.

3) How bank will improve bank financial position? A) By issuing shares B) call for public to deposit in bank. C) By issuing debenture. D) Approved to commercial banks.

4) From which source bank will get more finance? A) By providing cash credit to customer B) By providing overdraft to customers C) By providing bill discount D)

5) Private money lenders are charged more interest compare to other sources A) Yes B) No 6) To run the RDCC bank use more than one financial sources A) Yes B) No 7) According to RDCC bank which source charges less interest? A) Public deposit B) Installment credit C) Issue of shares D) Loans from financial institution

8) According to RDCC bank in which source bank was used effectively in bank? A) Government deposit B) Public deposit 9) RDCC bank have any idea to innovate new sources in bank? A) Yes B) No 10) By using the financial sources, RDCC bank follows the rules and regulation of RBI? A) Yes B) No

Page 57Department of commerce p. g centre Raichur