DECLARTION

I ANJALI. R here by declare that this project report entittled as “Astudy of various
types of deposits and loans VALLANGHY VITHANASSERY service co-opertive bank
LTD is a bonfied record of the project work carried by me, during the accademic year 2018-
19 in partial fullfillment of the requirements for the award of the degree of b.com of the
university of calicut.

I further declare that this project has not submitted previously for the award of any
degree /diploma in university on institute according to the best of my knowledge.
 ACKNOWLEDGEMENT

My endeavous stand in complete without dedicating . my gratitude to a few peoples

who have contributed to a lot towards the successful complition of the study.
First I would like to thank to all righty god fun guiding me in the right way fun the
successful complition of the project work with in time.
I am extend my sincere obligation to our principal sr. TRESA ARIKKAT for giving a
wonderful oppartunity to take up the report.
I extent my thanks and extremly greatfull to mrs SUVARANA for the valueable
suggestions and encourgement through out the project report.
I wish to take this oppartunity to express my deep sence of gratitude to the authorites
of the VALLANGHY VITHANASSERY service co-opertive bank LTD for then valuable
gudiance in this regard.
Above all I am extremly thankfull to my class teacher , my parents , family members
&to my teachers for their co-operation and help during the course to my study
 CHAPTER 1

INTRODUCTION

The bank serve an important role in the Indian economy, especially in rural areas
urban areas, they mainly serve to small industry& self employed workers.They are registered
under the co-operative societies act,1912.
The banks are traditionally centered around communities, localities and work place
groups and they essentially lend to small borrowers & business. They are governed by the
banking regulations act 1949 & banking low act,1965.
The bank that holds deposits makes loans and provides other financial serves to co-
operatives & members owned organizations also known as banks for co-operatives.
A bank is a financial institution which deals with money and credit. It accepts
deposits and lends money to those who are needed. Hank helps to transfer the money from
one place to another. It will be difficult to provide a clear cut definition to bank because
modern banks are performing a number of functions. -
According to banking regulations Act 1949, "bank is one which transacts the business
of banking which means the accepting for the purpose of lending of investment of deposit of
money from public repayable on demand or otherwise withdrawal by cheque, draft, and order
or otherwise". The main function of the bank is to accept deposit from public and giving
loans and advances to needed public. Loans are an arrangement in which a lender gives the
property or repays the money usually along with interest in some future period of time.
Deposit is given in advance to some intention to complete the purchase of a property.
At present, there are several co-operative banks which are performing multipurpose
functions of financial, administrative, supervisory and development in nature of expansion
and development of co-operative credit system. Co-operative banks are the institution
established on principles of co-operation and it deals ordinary banking business. The main
feature of co-operative bank is that it has no profit motive. Mainly they collect funds, accept
deposits from the public and then grand loans to public. The bank provides short term loans
for agricultural purpose. Mainly, they focused on service. The grant short-term loans for
agricultural activities and medium term loans for self-help group/kudumbasree. They provide
the rate of interest on gold loan for agricultural is usually 7% and 13.75% is usually for
ordinary gold loan.
The project has been undertaken with an object to study the different types of deposits
and loans in co-operative bank. Co-operative bank in rural areas mainly finance agricultural
based activities including farming, cattle, milk and personal finance etc. along with the small-
scale industries and self-employment driven activities, the co-operative bank in urban areas
mainly finance various categories of pupil for self-employment, industries, small-scale units
and home finance.
A co-operative bank is a financial entity belongs to its members who are the same
time the owners and the customers of the bank. Co-operative banks are often created by
persons belonging to the same local or professional community or sharing a common interest
The present study deals with relationship between deposits and loans scheme and
analysis of co-operative bank. Co-operative bank are originated under the co-operative credit
society Act 1904, a number of co-operative credit societies were started owing to the
increasing demand for co-operative credit, a new Act was passed in1912 which provide for
the establishment of co-operative central banks union of primary credit societies and
individual.
 Three Tier Structures
Co-operative bank has three tier structures. At the top there is a state co-operative
bank and its area of co-operation. State co-operation banks are the apex which governs the
entire co-operative bank in a district. Generally there is one central bank at the district level.
At the end there are primary credit co-operative societies at the village level.

State Co-operative Bank

Central co-operative Bank

Primary Agricultural
Credit :Societies

State Co-operative Bank

According to the Kerala co-operative societies Act, an apex society is a society having
the whole of the state as its area of operation and having as its members only other societies
with similar objects and declared as such by the the Registrar.
Central Co-operative Bank
A central co-operative bank is a financing bank of the primary co-operative societies
in the district. It is the middle tier in the co-operative credit structure. In Kerala, there are 14
central co-operative banks at present.

Primary Agricultural Credit Societies

These are the societies functioning among the common people at villages. It is the
base level in the co-operative credit structure.
 OBJECTIVES OF THE STUDY

 To understand the various types of deposit schemes introduced by the Vallanghy

Vithanassery co-operative bank ltd.
 To analyze the different types of deposits and its interest rates.
 To understand the different types of the loans provided by the bank to the rural
customers.
 To analyze the interest rates of different loans provided by the bank.
 To evaluate the financial performance of the bank.
 To identify the deposit is more demand by the customers.
 To make a trend analysis on the deposit scheme of the bank.
 To evaluate the credit worthiness of the bank.
 To evaluate the performance of the bank.
 To analyses the functioning of the bank.
 To analysis the different types of deposit and to understand which types of deposits is
more profitable to the customers.
 To study the effect of demonetization under co-operative banking sector.
 To analyze the other loan schemes provided by the co-operative bank.
 To study the different types of deposits and its importance.
 To compare the interest rate of deposits between current year and previous year.
 To study the depositing behavior in the co-operative bank.
 To study the different types of aids provided by the co-operative bank to its
customers.
 What are the roles performed by the co-operative bank to promote the habit of saving
among ordinary people.
 RESEARCH PROBLEM
A study on various types of deposits and loans of Vallanghy Vithanassery Service Co-
operative Bank Ltd"

PERIOD OF THE STUDY

The study was conducted for a period of 14 days in Vallanghy Vithanassery service co-
operative bank Nemmara.

TOOLS USED FOR THE DATA ANALYSIS

 Trend Analysis
 Tables and Graphs
 Charts
 LIMITATIONS OF THE STUDY

 The area if the bank which is only confined to the Nemmara Grama-panchayath.
 The time span of the study is limited
 Most of the data were collected through secondary method. So it could be
 subjected to inaccuracy
 The data is subjected to confidentiality.
 Bank will not give all details of loans and deposits.
 It is difficult to understand the material fact relating to collected data
 Lack of experience
 “An Analysis of the Deposits Behavior of
Banks in Nigeria”
-Tomola A.M. Obamuri
The study examines the extent to which banks in Nigeria have performed their
intermediation functions of deposits mobilization and the effect on their performance. He
opined due to reforms and the developments in the capital market particularly the
development of non-banking financial companies there is much more awareness among the
investors and deposit mobilization has become competitive and challenging for the banking
industry. According to him the present investors are ready to face the situation by investing
their money in the high risk and high return investment which also facilities other avenues
like tax exemptions and concession. The study employs secondary data obtained from the
annual reports and accounts of the selected bank, publications of the central bank of Nigeria
like the statistical bulletin and annual reports and accounts, Nigeria deposits insurances
corporation publication and other related. publication.
Pathanla and Singh (1998) in their study titled, "A study to performance of HP state
co-operative bank" observed that the performance of the Himachal Pradesh state co-operative
bank ltd in terms of membership drive, share capital, deposit mobilization, working capital
and advances has improved over the period of five years. However, recovery performance
was unsatisfactory and overdoes had increased sharply. This was due to the after effects of
loan waiver scheme. The per member and per branch performance of the bank revealed that
there is a significant growth in share capital, deposits, borrowings, advances and profit. They
suggested that the context of globalization and liberalization of economy, co-operative bank
should ensure their business on healthy lines by having professional manpower, training and
sense of competition.
Kalyanakan (1983) in his study titled “willfull default in loans of co-operatives”
examined the trends in deposits.share capital, working capital overdues and recoveries at the
district level financing instituting, social economic factors responsible in projecting and
promoting future development in the operations and approaches at the co-operative credit
organizations were also considered and examine the specific progress make by central co-
operative bank of purbhani district. The study reveated that the cropping instensity,
inauguration facility and working capital of societies were the major factors for explaining
overdues at primary agricultural credit societies level. The socio- economic factors were not
responsible for increasing overdues at the borrowers level but overdue,were mainly mounted
due to the non economic factors in case of will full defaulter.
Bhatia (1978) in his study titled, “Banking structure and performance. A case study
of the Indian banking system” attempted to analyze the economic performance of Indian
banking system as reflected by its output, price and profitability during the said period has on
upward trend. The study suggested deregulation of interest rates to enhance the profitability
of financial institutions and ensure a competitive banking environment which would
ultimately result in better services.
Chopra (1987) in her book, studied operational efficiency of some selected public
sector bank, she found the lack of protessionalism in banking industry and stressed for the
introduction of scientific management practices to enhance profits and profitability of public
sector banks. She recommended comprehensive management of costs as well as earning of
the banks.
Satyanarane(1998) in his paper titled "Profitability and Productivity Analysis of
Banks and Financial Institutions" developed a program to measure the profitability of
financial sector institutions. He presented a simple but comprehensive framework of
profitability analysis of bank. He had suggested a three-tier framework to analyze the
profitability of the bank or zone of a bank. The first part of a framework emphasized the
compilation of the profit earned, the second indicted the cost and yield parameters of funds
and the final part depicted the return and appreciation to the shareholders of a bank.
Kapoor (1999) in recognition of the relevance and catalytic role of co-operative
banks in the development of agriculture and non-agricultural sector in Indian rural economy,
Government of India on 9th April economy, appointed a task force under the chairmanship of
Jagadish Kapoor for revival of co-operative banks. The main objective of the committee was
to review of functioning of co-operative credit structure and suggest measures to make them
member driven professional business enterprises. The committee suggested as under:
1. The licensing of DCCB's be bought under the provision of Banking Regulations Act 1949
2. DCCBs should be induced in 2nd schedule of RBI Act
3. Assets and liabilities management should be implemented in the SCBs and DCCBs
4. NABARD should establish a co-operative development fund
5. RBI/NABARD should issue guidelines for a common accounting system in SCBs and
DCCBs.
 BANK PROFILE

The co-operative bank was service registered in 1st December 1961. The co-operative
banks are controlled by board of directors. The affairs of these co-operative banks are
controlled by them which consist of 13 members. At the present employees are working
under the Vallanghy Vithanassery Service Co-operative Banks Ltd No. 282. The branches of
co-operative banks are: pezhumpara, kaipanchery and prabhatha sayannah branches in
Nemmara.
The main aim of co-operative bank in vithanassery is to promote agricultural
activities. The function performed by the bank is agricultural improvement and banking
business. Thus, the working of branch is beneficial to members of Vithanassery for
agricultural requires and also for banking service: Now they provide short-term loan for
agricultural purpose and medium-term loans for self-help group of kudumbhasree. They
supply goods and services in festive season like Onam, Vishu, and Christmas etc... Similarly
they are dealing in marketing for students. Such as books and other materials. They provide
rate of interest on gold loan is usually 7%. They can enjoy banking facility to • improve their
standard of living.

AREA OF OPERATION
As per bye-law, the area of operation of the bank is extended to Nemmara, Vallanghy and
Pothundy villages.
 SCOPE OF THE CO-OPERATION BANK
 Issuing agricultural loans and gold loans to farmers to get better price
 The bank providing short-term agricultural loan at concessional rate of interest .
 In festive season they supply goods and service related with agriculture and students
for.marketing
 Providing helps to SHG or Kudumbhasree
 They provide MMBS

MISSION
The continuously strive for synergy between technology, systems and human
resources for providing products and services that meet the quality, performance and
aspirations of the vast clientele and to maintain the highest standards of ethics and societal
responsibilities constantly invest products and processes and develop teams that increase the
momentum of the bank of excellence

MEMBERSHIP
A person may got the membership if he/she fulfils the condition which is described in
bye-law of the society. It includes three classes, 'A' class which is mainly for share-holders,
'B' class which is mainly for government and 'C' class which is mainly for nominal members.
 OBJECTIVES OF THE BANK

The principle object of the bank is to promote of all its members to attain their social
and economic betterment through self-help and mutual aid in accordance with co-operative
principles
 Accepting funds and deposits from the members and non-members and convert it as
short-term and medium-term loans to members for useful purpose.
 To undertake collection of bills, cheque, on behalf of members and to provide
facilities for transmission of funds to and on behalf of members by issue of drafts,
cheques and discounting of bills.
 To promote and encourage thrifts, self-help and mutual help among the members • To
borrow or raise money.
 To lend or to advance money either with or without security to members and other as
permitted by RBI.
 To draw, make, accept, buy, sell, collect and deal bills of exchange, bundies, drafts
etc...
 To buy and sell good, silver bullion and other species.
 To purchase and to sell bonds, shares, scripts or other forms of securities on behalf of
constituents.
 To grant and issue letter of credit, travelers cheque and circular notes + To do any
other business as permitted by RBI.
 To collect and transmit money and securities.
 To negotiate loans and advances.
 ORGANIZATION STRUCTURE OF "VALLANGHY
VITHANASSERY SERVICE CO-OPERATIVE BANK LTD."

GENERAL BODY

BOARD OF DIRECTORS

SECRETARY

ASSISTANTS

CHIEF ACCOUNTANT

BRANCH MANAGER

INTERNAL AUDITOR

HEAD CLERK

SENIOR CLERK

JUNIOR CLERK

ATTENDEER

PEON
 CO-PERATION IN KERALA
Before independence India states were ruled by royal kings. In those states unified
laws were not operating. The Kerala state was formed this in two different laws were in the
existence via Travancore Cochin co-operatives societies act. This was in force in Travancore
Cochin area and Madras co-operative society's act 1932 was force-in Malabar area which was
a part of the madras province.

 Cochin co-operative society act 1913

 Travancore co-operative society act 1914
 Madras co-operative society act 1932
 Travancore Cochin co-operative society act 1952

Kerala co-operatives societies act 1969 (KCSA) to the co-operative, society in the state.
The act has come in to force on 15th may 1969.

Today the co-operative societies provide many services to its customers. So the co-
operative banks are the institution established on principles of co-operation and it deals
ordinary banking business. The main feature of the co-operative bank is that it has no profit
motive. Mainly they collect funds, accept deposits from the public and then grant loans to
public. The banks provides short term loans for agriculture purpose. Mainly they focused on
service. They grant short term for agricultural activities and medium term loan for self -help
group or Kudumbashree.
 DEPOSITS
Deposit mobiliiaiion is one of the main functions of the bank. They use their deposits
for lending money to the villagers. Deposits contribute the major part of the working capital.
The bank can accept deposits from members and non-members. But the preference is given to
the members.

In addition to the deposits of bank is collecting the required fund from the share
capital, borrowing from district co-operative banks, state government donation, special
contributions, reserve funds, other funds and undistributed profits. For convenience of
members the bank accepts different types of deposits for different period.

The interest rate is different for each type of deposits and is declared by the board of
directors,actofding to the instructions of the registrar. The different types of deposits that can
be by the bank are as follows.

TYPES OF DEPOSITS

The different types of deposits that can be by the bank are as follows:-

1. Fixed Deposits
2. Savings Deposits
3. Current Deposits
4. Recurring Deposits
5. Samrithi Cash Certificate

‘
 FIXED DEPOSITS

Fixed deposits are accepted by banks for a fixed period. They are normally repayable
after the expiry of period. The minimum balance that can be invested as fixed deposit of co-
operative bank is Rs. 1000. The minimum period of deposit is 15 days and maximum period
is 120 months. Bank generally pays a high rate of interest for these deposits.

As the date of repayment of the fixed deposit is determined in advance, the banker
need not keep more cash reserves against it can be utilized such amount more profitably.
Fixed deposits constitute more than half of the total bank deposits in India. Fixed deposits are
made by people who are expecting a fixed steady income at regular intervals in a fixed period
of time. There is no fixed rate of interest to the fixed deposits. It varies according to the
period of which fixed deposits are taken normally the rate of interest ranges from 6%-10%.
The rate of interest given to fixed deposit is higher than other type of deposits.

The bank may provide loan up to 85% of the fixed deposits and they charge a fixed
rate of interest against the loan provided. If the depositor wishes to renew his account he
should be apply to the bank office in the prescribed form. The depositor has the right to
nominate a person as his legal representative.
Features of Fixed Deposits
 The money deposited by the depositor will be safe in the hands of the bank.
 Deposits get high rate of interest .
 It guarantees a high as well as already income to the depositor.
 The depositor can avail loan against fixed deposits in case of financial difficulties.
 The procedures for opening fixed deposits are rather simple.

SAVING DEPOSIT

Saving bank accounts mainly meant for non-trading customers. It aims at promoting
the habit of saving among ordinary people. Banks pay a moderate rate of interest on the
savings deposits. Bank imposes certain restrictions on the operation of the savings deposit
account. These are restrictions on the number of withdrawals that can be made in a year. Also
there are restrictions on the amount of withdrawals that can be made on any day. Money
deposited in the savings bank account can be withdrawn by means of cheques on withdrawal
slips. Any person or institution can open a savings bank account. The interest on savings
deposit is calculated on the lowest balance in the account from the 10th day of the month.

The depositors have the right to nominate one or more persons as his legal
representatives. And these nominees have the right to receive the amount after the depositor.
A pass book is provided by the bank at the free of cost and if lost, the bank provides a
duplicate by paying Rs. 10. The present rate of interest on saving deposits is 4%.

Features of Savings Deposits

 It is generally meant for middle and low income groups.
 In a savings bank account of a customer can deposits any amount subjects to
maximum of Rs. 5/-.
 The rate of interest payable by any banks on the savings banks deposits is prescribed
by the reserve bank.
 A savings bank account can be opened with a very small deposit say Rs. 1000/- is
required to open an account with cheque facility
 CURRENT DEPOSIT
Current deposits accounts are generally meant for commercial and industrial
undertakings, public bodies etc... which have numerous and continues banking transactions.
This account is running account which may be operated upon any number of times during a
working day. These accounts are •also called demand deposits or demand liabilities since the
banker undertakes the obligation to pay cheques against such deposits on demand.

Feature of Current Account

 It is generally meant for commercial establishments who have to handle numerous
cash transactions daily.
 No restrictions are imposed on the account and the number of withdrawals to be made
each day.
 Banker has to keep large amount of liquid cash to meet the demand of current account
-holders. Therefore no interest is allowed on current deposits.
 The account holder is allowed the facility of sending bills and cheques for collecting
including third party cheques.
 Deposits can be made by pay-in-slips and withdrawals by cheques.


Recurring Deposits

This is a special type of savings bank account introduced by bank in recent years. In
recurring or cumulative deposit a fixed amount is deposited at regular intervals for an agreed
period. Recurring deposits are intended for people who have regular income. Hence, the rate
of interest offered on reccurring deposit is almost the same are offered on fixed deposit. The
main objective of the scheme is to enable the member to fulfill his special needs by receiving
the principle amount with interest after expiry of the fixed period. The period of the scheme
varies from 12 months to 120 months. The minimum amount required to open this account is
fixed at Rs. 10/- and maximum unlimited.
Features of Recurring Deposits
 High rate of interest identical to the fixed deposit rates.
 The amount paid into the account should be the multiple of Rs. 5 or Rs. 10.
 The period of these deposits ranging from 1 to 10 years
 Recurring deposit schemes aims to indicate a regular habit of saving among the
public.


Samrithi Cash Certificate

Samrithi cash certificate is one of the type of fixed deposit (doubling); a fixed amount
deposited for a fixed period then the value will be doubled.

LOANS
A loan is an arrangement which a lender gives money property to a borrower. A loan
is granted by banker in a separate account knows as loan amount. The amount sectioned is
either paid or credited in the account of customer. The interest is charged on the whole
amount of loan. The loan can be repaid in installments or in maturity. There is a
predetermined time for repaying a loan and generally the lender has to bear the risk that the
borrower may not ' repay the loan. The lending organization usually wants the background of
the owner or owners and the financial position.

A loan is an advanced granted by a bank to its customers who are expected to be

withdrawn and the subjects to the directive issued by the Reserve Bank of India from time to
time.
There are different types of loans granted by the Vallanghy Vithanassery Service Co-
operative Bank Ltd. for the period of last five years 2013-18 as follows.

The Total Loans are Issued under Four Heads

 Agricultural Loans
 Medium-Term Loans
 Ordinary Loans
 Gold and Pledge Loans
 LOANS

Agricultural Loan Medium-term Ordinary Loan Gold and Pledge

Agricultural Loan

Kissan Credit Medium-term Loans Non-Agricultural Gold Loan

Loan (surety loan)
Kissan Credit Dairy Loans Deposit
card 2 Non-Agricultural PF Loan

Agricultural Gold Mortgage Loan

Loans
Employee’s
Overdraft
Home Appliances
Self Help Group
Loan
EMS Housing Loan
 1. AGRICULTURAL LOANS

Agricultural loans are financial assistance to all direct/indirect agricultural and allied
activities like rising of crops, trading in agricultural inputs like fertilizers, input seeds and
agricultural equipments.

Agricultural loans include the following loans:

 Kissan' Credit Card 1

 Kissan Credit Card 2
 Agricultural Gold Loan

Kissan Credit Card (KCC 1)

It is an agricultural based loan under the central government policy. It aims at

adequate and timely support from banking system to the farmers for their cultivation needs
including purchase of inputs in a flexible and cost effective numbers. For fixing the interest
the balk taken into account. The duration of the loan is one year and maximum amount of
loan is Rs. 50,000/-(2.5 acre) interest rate is 7%.

Kissan Credit Card 2 (KCC 2)

Kissan credit card II is the agricultural loans which are provided by the bank in
Kerala. It is an interest free loan for 6 months duration. It is mainly focused on providing
agricultural financial aid to the members. The rate of interest for the loan exceeds the period
of 6 months is 7%.
Agricultural Gold loans

Agricultural gold loans are targeted to providing the financial assistance to all
direct/indirect agricultural and allied activities like rising of crops, meeting working capital
inputs, seeds and the agricultural equipments etc. agricultural gold loan is available against
pledge of gold ornament owned by the borrower or member. The duration of the loan is 6
months. The rate of interest is 7%.

2. MEDIUM-TERM AGRICULTURAL LOANS

Medium-term agricultural loan given for the creation of assets which will increase the
production and productivity of agricultural and allied activities, usually for a period of 3-5
years as per NABARD classification. Term loans are closely related to, but are to be
differentiated from, purchased by banks of installment contracts arising from the sale of
commercial and industrial equipments. It includes the following loans:

 Medium-term Loans
 Dairy Loans

Medium-term Loans
The agricultural loan is granted to the members who are have engaged in agricultural
activities. Normally the period of 3-5 years loans are called medium-term agricultural loans.
The interest will be between 0-14%

Dairy Loans
This type of loans is issued to the dairy form as subsidies scheme for cattle fed
purchase of goods verify of cow sheds etc...
The village extension officer [VEO] is the selected authority and the cattle should
acquire doctor's certificates at the time of taking loan up to 50% subsidiary by the
government. The interest rate is between 0-14%.
 3. ORDINARY LOANS

Ordinarily loan is also known as consumption loans. These loans are provided under
different schemes.
 Non-agricultural Loan (Surety Loan)
 Non-agricultural Mortgage Loan
 Employees Overdraft (EMPOD)
 Home Appliances Loan
 Self-help Group Loan(SHG)
 EMS Housing Loan

Non-agricultural Loan (Surety Loan)

A non-agricultural loan of surety loan is issued for non-agricultural activities. A

surety loan is granted over the society of responsibility for the debt obligation of a borrower
default. The person provides this promises is also known as surety.
The person to whom the promise is made by the surety to secure the loan is called
principal. A surety is a short-term loan issued under the security of three members as persons
it include three person's principals and two guarantees.

Non-agricultural Mortgage Loan

The word mortgage is derived from a "law French" term used by English lawyers in
the middle ages meaning "death pledge", and refers to the pledge ending (dying).when either
the obligation is fulfilled or the property is taken through foreclosure. It is a pledging loan
issued to members under the security of their own property.

Employees Overdraft
Employees overdraft is the facility provided by the bank employees to over drawn a
sum of money for their urgent monetary requirements. The overdraft is limited to Rs. 2500/-
for each employee. The interest rate of this loan is 12%.
Home Appliances Loan

Home appliance loan is provided by the bank to its members for purchasing of home
appliances as per the quotations given by the members. The duration of this loan is two years.
The rate of interest is 16%

Self-help Group Loan

Self-help group is village based finance intermediary usually composed of 10-20 local
women members make small regular savings or contribution over a few months until there is
enough capital in the group being lending. It is a group loan provided to a group registered as
"kudumbasree." project with a maximum of Rs. 50,000 is approved as loan. The rate of
interest is changed on this loan is 9-12%

EMS Housing Loan

This type of loan is issued by bank to its members for construction of his house • with
the device of panchayath authority with proper verification of documents and the law
applicable of taking loans laid by the Government of Kerala.

4. GOLD AND PLEDGE LOANS

Gold loans are among the most accepted assets today for quick cash. Especially in
countries like India where people need cash for rolling purposes, gold loans can be of great
help. Gold and pledge loan is including the following loans.

 Gold loan
 Deposit loan
 Provident fund loan
Gold loan

It is a type of pledging loan under the security of gold ornaments. The loan amount is
given 70% of the market value. The duration of the loan is one year. The rate of interest is
charged on this loan is 0-14 percent.

Deposits Loans

It is granted over the deposits made by the members. The members can take loan up
to 80% of deposit amount.

Provident Fund Loans

This loan is provide to the employees of the bank take loan from their provident fund
contribution the employees make small contribution their provident fund and take loan from
this amount of their personal requirement the rate of interest for provident fund loan is 12%.
 DATA ANALYSIS AND INTERPRETATION

Analysis is the process of critically examining in details of accounting information

given in the financial statement. For the purpose of analysis individual items are studied their
interrelationship with other related figure. Analyzing financial statement to obtain a better
undertaking of firms' position and performance. Both analysis and interpretations are inter-
related and complementary to each other. Interpretation is not possible without analysis of
data and analysis has no use without interpretation.

Interpretation simply means drawing inference based on analysis about the financial
position about earning capacity and to describe in a simple manner for those who are
interested.

Here we are analyzing the deposit data of 5 years 2014-2018 and showing the trend
percentage increase in deposit scheme.
 DEPOSITS
Fixed Deposit

Table 1: The table showing the fixed deposit for the period of 2013-2018

YEAR 2013-14 2014-15 2015-16 2016-17 2017-18

AMOUNT(IN
3551.75 4242.63 5084.18 6170.33 6986.77
LAKHS)

PERCENTAGE 100 119.45 143.14 173.72 196.71

CHART 1
250

200

150 PERCENTAGE

100

50

0
2013-14 2014-15 2015-16 2016-17 2017-18

INTERPRETATION
The trend percentage of fixed deposit shows an increasing trend. The increasing trend
shows good working and confidence among the investors to invest in the bank.
Saving Deposit

Table 2: The table showing the saving deposit for the period of 2013-18

YEAR 2013-14 2014-15 2015-16 2016-17 2017-18

AMOUNT(IN
657.43 758.10 756.79 849.39 937.62
LAKHS)

PERCENTAGE 100 115.31 115.11 129.19 142.6

CHART 2

160

140

120

100

80
PERCENTAGE

60

40

20

0
2013-14 2014-15 2015-16 2016-17 2017-18

INTERPRETATION
The trend percentage of saving deposit shows an increasing trend.
Recurring Deposit

Table 3: The table showing the recurring deposit for the period of 2013-18

YEAR 2013-14 2014-15 2015-16 2016-17 2017-18

AMOUNT(IN
23.53 23.27 24.56 33.88 27..67
LAKHS)

PERCENTAGE 100 98.89 104.37 143.98 117.58

INTERPRETATION
The recurring deposit shows a decreasing trend in the years 2014-15 and 2017-18.
But it shows increasing trend in the years 2015-16 and 2016-17.
Samridhi Deposit

Table 4:The table showing the samridhi cash certificate for the period of 2013-18

YEAR 2013-14 2014-15 2015-16 2016-17 2017-18

AMOUNT(IN
657.43 758.10 756.79 849.39 937.62
LAKHS)

PERCENTAGE 100 115.31 115.11 129.19 142.6

INTERPRETATION
The samridhi cash certificate shows a decreasing trend compared with the base year.
 LOANS
Agricultural Loans

Table 5: The table showing the agricultural loans for the year period of 2014-2018

Medium-term
2013-14 2014-15 2015-16 2016-17 2017-18
Agricultural Loans
[in lakhs]
193.77 213.21 216.91 308.59 273.84

Percentage 100 110.03 112 159.33 141.39

INTERPRETATION
The agricultural loan shows an increase in the first three years but in 2017-18it shows
decrease.
Medium- term Agricultural Loans

Table 6:The table showing medium-term agricultural loans for the period of 2014-18

Medium-term
2013-14 2014-15 2015-16 2016-17 2017-18
Agriculgtural
Loans[ in lakhs] 1577.60 1941.38 2370.56 3020.76 2866.32

Percentage 100 123.05 150.25 191.46 181.67

INTERPRETATION
By analyzing the medium-term agricultural loans 2013-14 to 2017-18, chart shows a
suddenly increase in the first three years but in 2017-18 it shows decrease..
Ordinary Loans

Table 7:The table showing Ordinary loans for the period of 2014-18

Ordinary Loans [in 2013-14 2014-15 2015-16 2016-17 2017-18

lakhs]
148.01 137.10 2370.56 3020.76 2866.32

Percentage 100 123.05 150.25 191.46 181.67

INTERPRETATION
The ordinary loan chart shows decline . It shows likely uniform decrease.
Gold and Pledge Loans

Table 8: The table showing Gold and Pledge loans for the period of 2014-18

Gold and Pledge 2013-14 2014-15 2015-16 2016-17 2017-18

Loans[ in lakhs]
567.60 735.93 778.43 674.92 489.00

Percentage 100 129.65 1337.14 118.90 86.15

INTERPRETATION
By analysing the gold and pledge loan 2013-14 to 2016-17,chart shows an increase in
the first two years but after it shows a sudden decrease.
Table showing various types of loans provided by the vallanghy vithanassery service co-
operative bank for the period of 2014-18

Table 9
Types of Loans Amount (in lakhs)
Agricultural loans 1206.32
Medium-term Agricultural Loans 11776.32
Ordinary Loans 609.74
Gold and Pledge Loans 3245.88

INTERPRETATION
From the above table, we can understand there various types of loans provided by the
vallanghy vithanassery service co-operative bank ltd. Among these loan this bank gives a
large amo9unt to the medium –term agricultural loan.

Table 10: Comparison in Total Deposit

YEAR 2013-14 2014-15 2015-16 2016-17 2017-18

AMOUNT(IN 4275.20 5043.97 58881.10 7064.63 7957.51
LAKHS)
PERCENTAGE 100 118 137.6 165.3 186.2

INTERPRETATION
The chart shows the trend percentage of total deposit in “Vallanghy Vithanassery
service co-operative bank ltd” for the past five years 2014-18. It shows an increasing trend in
total deposits of the bank.

Comparison of Total Loans

Table 11
YEAR 2013-14 2014-15 2015-16 2016-17 2017-18
 AMOUNT(IN 2487.01 3027.62 3495.57 4608.87 3719.52
LAKHS)
PERCENTAGE 100 121.74 140.56 185.33 149.57

INTERPRETATION
The chart shows the total loans issued by “Vallanghy Vithanassery service co-
operative bank ltd” for the last five years 2014-18 and its trend percentage. The chart shows
increase in the first three years. Then it shows sudden decrease.

Years Agricultural Medium-term Ordinary Gold and

Loans Agricultural Loans Pledge Loans
Loans

2013-14 193.77 1577.60 148.01 567.60

2014-15 213.21 1941.38 137.10 735.93
2015-16 216.91 2370.56 129.66 778.43
2016-17 308.59 3020.76 104.61 674.92
2017-18 273.84 2866.32 90.36 489.00

BIBLIOGRAPHY
BOOKS
 Basics of banking and insurance (4th semester B.com Calicut university)
 Venugopal,co-operation

WEBSITES
 WWW.Wikipedia.com
 WWW.Co-operative bank.com

EXTRACT
Deposits (in lakhs)

Loans(in lakhs)

INTERPRETATION
The trend percentage of fixed deposit shows an increasing trend. The increasing trend shows
good working and confidence among the investors to invest in the bank.

Years Fixed Deposits Saving Deposit Recurring Samrithi Cash

Deposit Certificate
2013-14 3551.75 657.43 23.53 42.49
2014-15 4242.63 758.10 23.27 19.98
2015-16 5084.18 756.79 24.56 15.57
2016-17 6170.33 849.39 33.88 11.03
2017-18 6986.77 937.62 27.67 5.45

33
 Vallanghy Vithanassery Service Co-operative Bank Ltd
 Current Interest Rate of Fixed Deposit

Sl. No. Validity of Deposit Interest Rate(%)

1 15 Days to 45 Days 6.00

2 46 Days to 90 Days 7.00

3 91 Days to 179 Days 7.50

4 180 Days to 364 Days 8.00

5 Above 1 Year

FINDINGS

 The fixed deposits show an increasing trend. The bank has adequate fund for
investments.
 Saving deposit shows a decreasing trend in the year 2015-2016 then it shows
increasing trend in the year 2016-18.
 Recurring deposit shows a decreasing trend compared with the base year.
 Samridhi cash certificate shows decreasing trend in the year 2013-2018
 Total deposit of the bank shows increasing trend.
 While evaluating deposits the overall position of the bank is good.
 The more demanded deposit is fixed deposit.
 By analyzing various loans given by the bank during the period 2013-2018 it
is found that medium term agriculture loan shows a significant growth.
 The ordinary loan shows fluctuating nature.
 The bank mainly provides services to due rural farmers.
 The loans provided by the bank are also satisfactory.
SUGGESTIONS

 If the bank tries to increase the fixed deposits, this can be utilized for productive
investment purpose.
 Promoting the daily deposit will increase the saving habit of the customers.
 The introduction of new deposit scheme will induce the customer to invest and it will
make more funds to the bank.
 The formalities of giving loan can be minimized.
 Bank should ensure that the use of loans is for productive purpose.
 Adequate steps can be taken to ensure collection of overdue loans.
 The bank can use advanced technologies like ATM facilities, online Banking etc

CONCLUSION

The project entitled to the organization study with reference to "VALIANGHY

VITHANASSERY SERVICE CO-OPERATIVE BANK LTD" gives all relevant
information's about the bank and the different fundamental functions. The bank provides
various types of deposits to different customers and also provides loans to rural customers for
improving their standard living. To conclude the bank's deposits and loan rate are
satisfactory. Through this study I was able to understand that this bank provides more
beneficiaries to the agricultural sector and also support the farmers for their livelihood.