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A Study On RDCC Bank
A Study On RDCC Bank
CHAPTER -I
Introduction: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 required
Objectives 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.
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:-
Chapter scheme
Chapter- I
The introduction of sources of finance, History and present
scenario of Indian banking system.
Chapter II
The various objectives, statement of problem, need for the study,
limitations and methodology used are stated.
Page 6Department of commerce p. g centre Raichur
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
very
important
function,
namely
creation
of
credit,
Organization History
A 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
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.
niche
retail
segments.
Meeting
the
multifarious
Non-scheduled
banks
State cooperative
bank
Commerci
al banks
Indian
banks
Public sector
banks
SBI &
associated
banks (07)
Development
banks
Central co-ope.
Banks & primary
credit societies
Commercial
banks
Foreign banks
Private sector
banks
Other
nationalized
banks(19)
Old banks
(22)
New banks
(8)
The government's regular policy for Indian bank since 1969 has
paid rich dividends with the nationalization of 14 major private
banks of India.
Definition:
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 banks
1. Central bank
2. Indigenous bankers
3. Regional rural bank
4. 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
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 progress
4) Introduction of Co-operative Bank
The Co operative banks in India started functioning
almost 100 years ago.
The
Cooperative bank
Indian Financial
System
Federal
Intermediate
Credit
Banks,
and
Banks
for
communities,
localities
work
place
groups.
They
credit
society
was
registered
in
Canjeevaram
Urban
Co-operative
Credit
Society,
sponsored
by
credit
societies.
The
recommendations
of
the
sound
framework
of
urban
co-operative
banks;
Banking
related
functions
(viz.
licensing,
area
of
their
futurerolerecommending
support
from
RBI
and
the
years,
primary
(urban)
cooperative
banks
have
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:-
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:-
Short
Long & medium term
term
Issue of
shares
2. customers advance
Issue of
debentures
3. trade credit
plugging
back of profit
4. bank credit
public
deposits
5. factoring
financial institutions
6. accruals
7. differed incomes
8. commercial paper
9. installments credit
loans from
4. Bank credit:-
Long term finance:It is a fund required to meet the long term needs of
working capital for more than 12 month
1. 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
Chapter- III
Industrial 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
Page 37Department of commerce p. g centre Raichur
the
states
have
established
co-operative
societies
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)
Page 40Department of commerce p. g centre Raichur
11.
12.
13.
Mr.muniyappa hubli(director)
14.
15.
16.
Mr.jabbar beg
17.
18.
Raichur
2. Gunj branch
Raichur
Raichur
4. Gajgarpet
5. Nijalingappa colony
Raichur
Raichur
6. Station area
Raichur
7. IDSMT layout
Raichur
8. Manvi
9. Sindhanur
Page 42Department of commerce p. g centre Raichur
Gangavati
11.
Koppala
12.
Yalburga
13.
Kukunoor
14.
Kushtagi
15.
Hanumasagara
16.
Lingasugur
17.
Devadurga
18.
Kavital
19.
CO-OPERATIVE CREDIT
AGRICULTURAL
CREDIT
SOCIETIES
SHORT TERM
AGRI
OTHER CO-OPERATIVE
SOCIETIES
NON-AGICULRAL
CREDIT SOCIETIES
LONG TERM
AGRI
land
devpt
banks
Central land devpt
bank
Company Profile
Introduction: The RDCC (Raichur District Commercial Cooperative 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 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:
: 4.00 (IN %)
INTREST (IN %)
15DAYS TO 30DAYS
4.00
31DAYS TO 45DAYS
4.50
46DAYS TO 90DAYS
5.50
91DAYS TO 120DAYS
6.75
121DAYS
TO 7.50
180DAYS
181DAYS TO 1YEAR
8.50
1YEAR TO 2YEAR
9.50
ABOW 2 YEARS
9.25
SUMMERY
31-032010
31-032012
COMEETIES
804
828
02
GOVT
001
001
TOTAL
805
829
SUMMERY
01
FROM
COMEETIES
FROM
GOVT
TOTAL
02
31-032011
908.03
31-032012
1004.99
381.87
381.87
1289.90
1386.86
31-03-2011 31-03-2012
RESARVE
FUND 289.39
FREE RESARVE
OTHERS FUND
746.73
301.34
TOTAL
1055.59
1036.12
754.25
31-03-2010
31-03-2011
1.Organisation
DEPOSITS
2.PERSONAL
DEPOSITS
3.COMEENITY
DEPOSITS
8487.56
8511.61
8509.25
9266.64
2237.56
2417.87
TOTAL
19234.37
20195.94
BORROWING LOANS:SL.
NO
SUMM
ERRY
31032010
BALA
NCE
SHARTE 9091.
-TERM
87
LOAN
MEDIU
222.5
M-TERM 6
LOAN
LONG0.76
TERM
LOAN
TOTAL
9315.
19
201011
BORRO
WING
LOAN
8258.58
201011
REPA
YBLE
62.08
160.4
8
0.76
8258.58
9353.
95
8219.
82
9291.
87
31032011
BALA
NCE
8058.
58
SL.NO PARTICULERS
31/03/2010
31/03/2011
13833.79
15542.67
520.58
728.57
24.63
11.82
886.90
593.94
4374.74
4081.69
1151.45
1535.78
238.08
407.97
29.16
31.95
21059.33
22934.39
2
3
4
5
6
7
8
SHORT-TRM
AGRICULTUR
MEDIUM-TRM
AGRICUTUR
MEDIUM-TRM (IN
%)
LONG-TRM
AGRICULTUR
NONAGRICULTUR (S)
NONAGRICULTUR (M)
NONAGRICULTUR (L)
EVALUATION
COMEETY
BALANCE
TOTAL
SL.N
O
1
PARTICULERS
RESARVE FUND
25%
EDUCATION FUND
2%
DISTRUBUTE
6.50% 9014615.0
DEVIDEND
0
AGRICULTURAL
25%
2208169.0
CREDIT
0
STABILISATION FUND
BAD&DOUTFULL
25%
1656127.0
DEBTS FUND
0
5
6
11
INVESTMENT
FLACTUVATION
FUND
CONSTRACTION
FUND
SPECIAL
MEMBERS
FUND
ORGANISATION
FUND
DEVIDEND
EQULISATION FUND
YASHASVINI FUND
12
NON-DISTRIBUT
7
8
9
10
AMOUT(IN
RUPEE)
6070507.0
0
364230.00
10%
496838.00
60%
5%
2682925.0
0
89431.00
5%
84959.00
5%
80711.00
3%
46005.00
1487510.0
VSSBN
Branch manger
Assistant manager
Supervisor
Cashier
Accountants
Junior assistant
Page 53Department of commerce p. g centre Raichur
Clarks
Attainders
Amount
Fixed
Deposit 64036745
Assets
Amount
Bank account
6293649.3
Societies
Fixed
Deposit 18315944
Individuals
Investment
with 12340214
PGB snd
Fixed
Deposit 6958680
Syndicate bank
10240
Institutions
Reserve
Fund
Of 11630599.
Societies
Jeevan
84
Jyothi 12347486
loans
Deposit Societies
farmers
Jeevan
Jyothi 1946004
loans
big 18016
small 58494
Deposit Individuals
farmers
Jeevan
K C C big farmers
Jyothi 70141.4
149959725
Deposit 14400
small 125654883
Scheme If Any
farmers
Recurring
M T form sector
Deposit 321935
16800705.
Deposit 76338.5
S T other crops
1500000
A/c
Saving Societies
Savings Individuals
Saving Institutions
Current Societies
24777843.
86
society
11399058.
society
18402270.
01
liquidated
4999588.7
non
form 481390.1
liquidated 425069
loans 47400
85769
3
Current Individuals
390643.88
loan
land 23756685
development
Unclaimed Deposits
380674.12
Rural
godown 11506123
construction
Conditional S B A/C 839625
b)housing
(GFA)
general
Other Liabilities
to 2506135
employees 13520348
societies C C 1
Suspense Liabilities
1944198.7
Tapepsts 610000
& 502598.6
fishery production
C C clean A/c
Institution
Clearing
Suspense 32154
liabilities
Interest Payable On 3056614.5
Salary
Earners 3538119.4
Deposits
Loan
Petty Traders
Over Drafts
5297095
S H G Loan
4849282
Order A/C
Head Office Account
24166235
3.7
NET PROFIT
15616371.
18
Loan
On 3823199
FD/RD/Contributio
n
Loan On NSC
113296
Other Assets
Bills
Receivable 792191
Form GOI
Trading
Account/Sale
60883
Of
Forms
Furniture & Fixture
Page 56Department of commerce p. g centre Raichur
26446
44069444
3.78
3.78
Amount
interest
Incomes
paid 11,538,626 By
Deposits
& .98
interest
Amount
& 52,299,155
discount
.34
Borrowings
To
Rent,
Taxes, 133,409.00 By
commission, 52,240.00
Insurance,
Exchange
Lighting etc.
brokerage
To
By
stationary, 11,632.00
Printing,
&
interest
investment
Advertisement
&
on 37,282.00
&
deposits
charges
To
Expenditure
19,700.00
&
contingencies
By miscellaneous 936,064.56
incomes
Balance of profit 41,376,601
before tax
.59
Page
57Department
of commerce
p.income
g centre Raichur
Total
expenditure
53,344,441
Total
53,344,441
.90
.90
Liabilities
31-3-2010
assets
31-3-2010
Statutory
220.00
Cash in hand
4464377.00
individual
Fixed
12
a/c
in 11843254.11
India
other
24
10,332,468.0
0
societies
Saving
deposit
63
individual
tangible 415360653.5
securities ST Agri 0
loan & non Agri
loan
Saving
7454385.00
deposit other 88
societies
Current
17438984.00
deposit
individual
Current
deposit other 46
Agri loans
societies
Head
office 350,490,3
Housing loans
3561095.00
account
97.14
Suspense
liability
54
Interest
payable
50
60972034.00
48318000.00
Page
of commerce p. g centre Raichur
Over 59Department
due 116,236,9
interest
17.29
expenditure
Amount
Incomes
Amounts
Interest
on 12126143.
received 584128
924395
Sourcespaid
of finance
in RDCCInterest
Bank Sindhanur
deposits
50
on investment
Establishment
Charge
1927997
Medical
Allowances
4500
P,F.
contribution
By bank
T.A. to staff
118079
Commission &
Brokerage
13435
Office rent
82500
Locker
rent 20288
received
Miscellaneous
1259768.
incomes
79
Electricity
Charge
54656
Postage &
Telephone
10830.5
49750
1078
Hire charge
54000
Contribution
towards PAIS
5541
64558
Miscellaneous
157624.53
Expenditure
Clearing house 9000
rent
Interest paid on 24970916.
HEAD
OFFICE 19
A/C
Page 61Department
of commerce p. g centre Raichur
Profit
during 9124770.4
the year
2
AMOUNT
ASSETS
AMOUNT
Statutory
reserve fund
51820
Cash on hand
5200420
Fixed
deposits
Societies
129881532.8
4
56367781
Bank balance
26242371.06
4245836
Individuals
34779178
Investment
on STD with
national bank
Short
term
loans
KCCF BF
KCCS SF
Institution
4208070
Reserve fund 15417250.54
societies
76510
156670899
21588151
Jeevana
jyothi
Institution
Jeevan jyothi
Individuals
17857
Medium term
Agri
33254482.40
3066140
24994498
Jeevan jyothi
Societies
15468041
Recovering
deposits
Demand
deposits
SB A/C
societies
557215
90475782.03
Long
term
loan
Agri
Short
term
loan
(nonagri)
Cash
credit
loan
M T non agri
12216119.73
SHG loans
11888732
SB A/C
Individuals
16816931.37
S T marketing 35354231
SB A/C
Institutions
23370171.87
L T rural
down
85769
23645680
1880947.10
go 24920004
1162625
36129609.60
389571.88
Gold loan
390753.12
Loan
on 4041752
deposits
House
4171644
BLDG (gen)
Pay order
174213
Reserve fund
Subsidy
(RRG&SHG)
3428200
Service
tax
payable
Over
due
interest
on
loans
Interest
receivable on
loans
Interest
payable
On deposits
Head
office
a/c
Profit for the
year
20102011
29312
Other assets
95742467.68
Over
due 95742467.68
interest
on
loans
Interest
21071247.32
receivable on
loans
Total
706904562.6
1374666.46
21071247.32
16576532
Short
term 325069
loans
Medium term 47400
regular
601566
3716171
351834379.9
2
9124770042
706904562.6
facility also at all the branches. Of the district this is one of other
feature of this bank.
YASHASVINI YOJANE SCHEME
ii.
iii.
Products of bank
There are mainly 3 products are there they are
1) Saving account
2) Current account
3) 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
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
Page 68Department of commerce p. g centre Raichur
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,
from
the
agriculture
loans
the
RDCC
offers
non
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%
ChapterIV
ANALYSIS AND INTERPRETATION
Table 4.1
Sources
of 2010
2011
finance
Reserves
4%
0.4%
Deposits
26%
38%
financing 70%
62%
Higher
agencies
Graph 4.1
sources of finances
40%
reserves
30%
Deposits
Higher age
20%
10%
0%
2010
2011
years
INTERPERATATION:
This table shows that various sources of finance used
in RDCC bank. Those financial sources are changed their
position year to year.
Table 4.2
Deposits
2010
2011
Fixed deposit
60%
59%
Saving a/c
37%
36%
Current a/c
03%
08%
Graph 4.2
70
60
50
sources of finance
40
30dep
public
higher age
20
10
0
2010
2011
year
Table 4.3
Deposits
2010
2011
Fixed deposit
60%
59%
Saving a/c
37%
36%
Current a/c
03%
08%
Graph 4.3
Page 79Department of commerce p. g centre Raichur
70
60
50
40
sources of finance
public
30 dep
higher age
20
10
0
2010
2011
year
Sources
2010
2011
Public deposit
29%
28%
Higher agencies
52%
52%
borrowings
09%
10%
Table 4.4
Graph-4.4
60
50
40
pub dep
30
higher age
borrowings
20
10
2010
2011
2010
2011
95%
loan
Jewel loan
Cash credit loan
02%
90%
05%
Table 4.5
Graph 4.5
100
90
80
70
60
sources of finance
50
jewel loan
40
30
20
10
0
2010
2011
years
Sources
Long
2010
term
2011
loan 68%
56%
34%
46%
development
6. Rural goon
Wh
Graph-4.6
70
60
50
source s of finance
40
lt loan dep
rural godown
30
20
10
0
2010
2011
years
INTERPRETATION:-
CHAPTER-V
Suggestions
1. 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
Bibliography
Materials
Financial statement of past two years.
RDCC bank booklets.
Text book
Financial management
Author: Page 90Department of commerce p. g centre Raichur
ANNEXURE
1) Which financial sources used to the RDCC bank?
A) Public deposit.
B) Customer
advances.
C) Loans from financial institution
D) issue of
shares
2.)
B) Long term
financial sources.
deposit in bank.
C) By issuing debenture.
D) Approved to
commercial banks.
D)
B) No
B) No
B) Installment credit
C) Issue of shares
institution
B) Public deposit
B) No
B) No