A Study On RDCC Bank

Sources of finance in RDCC Bank Sindhanur 584128
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.
Page 1Department of commerce p. g centre Raichur

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- 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.

Chapter III
The over all company profile of RDCC bank.
Chapter IV
The interpretation data analyzed and collected are stated.
Chapter V
The 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 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

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
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)
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 Bank

Meaning:

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 system
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

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 progress
4) 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 Cooperative 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. Cooperative 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 als
Brief 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 noncooperatives 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 Cooperative 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 Control
However, 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 Exchange
Recent Development
Over
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 state
Functions 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 cooperatives, 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 ownership
3. 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
Long & medium term
term

1. indigenous bankers
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
Short term finance:Meaning of short term finance:-
loans from

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 purchased
5. 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-recourse
1. Recurring bases:It means risk and bad debts by the client.
2. Non-recourse basis:It means risk of credit is borne by the factory
6. 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 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

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:Page 35Department of commerce p. g centre Raichur

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 30 th
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 securities

5. 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- 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

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 cooperative 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 bank

1. self responsibility
2. democracy
3. solidity
In 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
Raichur
2. Gunj branch
Raichur
3. City talkies road
Raichur
4. Gajgarpet
5. Nijalingappa colony
Raichur
Raichur
6. Station area
Raichur
7. IDSMT layout
Raichur
8. Manvi
9. Sindhanur

10.
Gangavati
11.
Koppala
12.
Yalburga
13.
Kukunoor
14.
Kushtagi
15.
Hanumasagara
16.
Lingasugur
17.
Devadurga
18.
Kavital
19.
Koppals station area
THE CO-OPERATIVE STRUCTURE

RESARVE BANK OF
INDIA
NATIONAL BANK FOR AGRICULTURAL AND RURAL
DEVELOPMENT
CO-OPERATIVE CREDIT
AGRICULTURAL
CREDIT
SOCIETIES
SHORT TERM
AGRI
OTHER CO-OPERATIVE
SOCIETIES
NON-AGICULRAL
CREDIT SOCIETIES
LONG TERM
AGRI

Urbancoopebank
Employees
co-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 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 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/C
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
BANKING MEMBERS:COLLECTING OF FUND IN MEMBERS

SL.NO
SUMMERY
31-032010
31-032012

01
COMEETIES
804
828
02
GOVT
001
001
TOTAL
805
829
SHARE CAPITAL:THE BANK COLLECTING OF SHARE CAPITAL

SL.NO
SUMMERY
01
FROM
COMEETIES
FROM
GOVT
TOTAL
02
31-032011
908.03
31-032012
1004.99
381.87
381.87
1289.90
1386.86
FUND:SUMMERY OF VARIES FUND IN BANK ON 31-03-2011

PARTICULERS
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
Depositers:SUMMERY OF VERIES DEPOSITS CONSERN WITH THE BANK

ON 31-03-2011

Summery
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
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.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
RS.24282027.27 PROFIT TRASACTION SUMMARY THE YEAR

OF 2011
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

AMOUNT
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
Cashier
Accountants
Junior assistant
Clarks
Attainders
BALANCE SHEET AS ON 31-03-2009 :

Liabilities
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
Loans & advances
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 Institution
Special
Deposit 14400
small 125654883
Scheme If Any
farmers
Recurring
M T form sector
Deposit 321935
16800705.
Individual & Inst

Kamadenu
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 agri S T loans
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

4
Individual
& 502598.6
fishery production
C C clean A/c
Institution
Clearing
Suspense 32154
S T Marketing Crop 56509870
liabilities
Interest Payable On 3056614.5
Salary
Earners 3538119.4
Deposits
Loan
Others payable Pay 972175
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
26446

44069444
44069444
3.78
3.78
Profit & Loss a/c for the Year Ending 31-3-2010

Expenditure
To
on
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
other 284,172.33 By locker rent
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

Balance sheet as on 31-3-2010
Liabilities
31-3-2010
assets
31-3-2010
Statutory
220.00
Cash in hand
4464377.00

Reserve fund
Fixed
deposit 31307412. Current
individual
Fixed
12
a/c
in 11843254.11
India
deposit 91693167. Other investment
other
24
10,332,468.0
0
societies
Saving
bank 14613082. Other
deposit
63
individual
tangible 415360653.5
securities ST Agri 0
loan & non Agri
loan
Saving
bank 61325151. Jewel loans
7454385.00
deposit other 88
societies
Current
545788.88 Cash credit loans
17438984.00
deposit
individual
Current
14640643. MT Agri & non- 40790621.78
deposit other 46
Agri loans
societies
Head
office 350,490,3
Housing loans
3561095.00
account
97.14
Suspense
1,726,133. Long term loans
liability
54
Interest
3,892,538. Amount due from 545577773.2
payable
50
60972034.00
the individual & 8

societies
Amount over due
48318000.00
Page
of commerce p. g centre Raichur
Over 59Department
due 116,236,9
interest
17.29

Profit and loss A/C for the year ending 31-03-2011:
expenditure
Amount
Incomes
Amounts
Interest
on 12126143.
received 584128
924395
Sourcespaid
of finance
in RDCCInterest
Bank Sindhanur
deposits
50
on investment
Establishment
Charge
1927997
Interest received 15669931

on non-agri loans
5.35
Medical
Allowances
4500
Interest received 30762090

on agri loans
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
Stationary for 10497

office use
Subscription to 1142
Periodicals
National
festival
Expenditure
Petrol charge
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

BALANCE SHEET AS ON 31-03-2011
LIABILITIES
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

Contribution
SB A/C (GFA)
Current
societies
Current
individuals
Unclaimed
Deposits
Suspense
Liabilities
1162625
36129609.60
Salary earner 5169137.61

loan
Petty traders 109216.50
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

7
Some scheme provided by bank to customers

Swarozgar 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 SCHEME

The 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 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

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 .250

7) SB account with cheque facility Rs.500
8) 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 loan
2. non agricultural loan
Agriculture loans
Agricultural loans are provided by the RDCC bank
The agricultural loans includes the followings
1) Short-term loans
2) Medium-term loans

3) 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 loans
Apart
from
the
agriculture
loans
the
RDCC
offers
non
agriculture loans like the followings

1. House loan
2. Small term marketing loan
3. Educational loan
4. Gold loan
5. 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 11.50
2) 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 responsibility
This 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.
ChapterIV
ANALYSIS AND INTERPRETATION
1. What are the various sources of finance?


Sources of finance are reserves, deposits, borrowing from
higher financing agencies etc.
Table 4.1
Sources
of 2010
2011
finance
Reserves
4%
0.4%
Deposits
26%
38%
financing 70%
62%
Higher
agencies
Graph 4.1

80%
70%
60%
50%
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.
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
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
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 goal
s
Table 4.3
Deposits
2010
2011
Fixed deposit
60%
59%
Saving a/c
37%
36%
Current a/c
03%
08%
Graph 4.3
70
60
50
40
sources of finance
public
30 dep
higher age
20
10
0
2010
2011
year
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
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
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
Sources
2010
St agri & non-agri 12%
2011
95%
loan
Jewel loan
Cash credit loan
02%
90%
05%
agriculture and non-agriculture loan, jewel loans and cash

credit loan.
Table 4.5
Graph 4.5
100
90
80
70
60
sources of finance
50
st agri & non-agri loan
jewel loan
40
cash credit loan
30
20
10
0
2010
2011
years

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 &
Sources
Long
2010
term
2011
loan 68%
56%
34%
46%
development
6. Rural goon
Wh
at 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
Graph-4.6
70
60
50
source s of finance
40
lt loan dep
rural godown
30
20
10
0
2010
2011
years
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
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

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 book
Financial management
Author: Page 90Department of commerce p. g centre Raichur

M.Y.KHAN
I.M.PANDAY
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.)
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

A Study On RDCC Bank

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Sources of finance in RDCC Bank Sindhanur 584128

Page 1Department of commerce p. g centre Raichur

Sources of finance in RDCC Bank Sindhanur 584128

Advantages of the study

Disadvantages of the study

Page 2Department of commerce p. g centre Raichur

Sources of finance in RDCC Bank Sindhanur 584128

Page 3Department of commerce p. g centre Raichur

Sources of finance in RDCC Bank Sindhanur 584128

METHODOLOGY:The methodology adopted towards study is descriptive

Sources of finance in RDCC Bank Sindhanur 584128

Limitations of the study:

Page 5Department of commerce p. g centre Raichur

Sources of finance in RDCC Bank Sindhanur 584128

Sources of finance in RDCC Bank Sindhanur 584128

Page 7Department of commerce p. g centre Raichur

Sources of finance in RDCC Bank Sindhanur 584128

money ,cash this

definition shows the origin of banking.

accordingly bank is defined as an institution, which deals money

Page 8Department of commerce p. g centre Raichur

Sources of finance in RDCC Bank Sindhanur 584128

History of Banking in India

Page 9Department of commerce p. g centre Raichur

Sources of finance in RDCC Bank Sindhanur 584128

requirements of the large customers base. Private have been fast

Structure of Indian banking system

Sources of finance in RDCC Bank Sindhanur 584128

Without a sound and effective banking system in India it cannot

Sources of finance in RDCC Bank Sindhanur 584128

Meaning and Definition of Bank

Sources of finance in RDCC Bank Sindhanur 584128

Page 13Department of commerce p. g centre Raichur

Sources of finance in RDCC Bank Sindhanur 584128

monitory policy, including keeping tabs on the

is an important constituent of the

, judging by the role assigned to co operative, the expectations

Page 14Department of commerce p. g centre Raichur

Sources of finance in RDCC Bank Sindhanur 584128

Sources of finance in RDCC Bank Sindhanur 584128

Meaning of cooperative bank:

that makes loans and pays interest on

pooled deposits. Cooperatives in the United States are credit

Cooperatives in the Farm Credit System (FCS) , and state

Page 16Department of commerce p. g centre Raichur

Sources of finance in RDCC Bank Sindhanur 584128

Sources of finance in RDCC Bank Sindhanur 584128

Page 18Department of commerce p. g centre Raichur

Sources of finance in RDCC Bank Sindhanur 584128

Page 19Department of commerce p. g centre Raichur

Sources of finance in RDCC Bank Sindhanur 584128

(Kanjivaram) in the erstwhile Madras province in October, 1904.

Vithaldas Thackersey and Lallubhai Samaldas established on

Sources of finance in RDCC Bank Sindhanur 584128

Committee went a long way in establishing the urban cooperative

Page 21Department of commerce p. g centre Raichur

Sources of finance in RDCC Bank Sindhanur 584128

Page 22Department of commerce p. g centre Raichur

Sources of finance in RDCC Bank Sindhanur 584128

emphasized the need to establish primary urban cooperative

Page 23Department of commerce p. g centre Raichur

Sources of finance in RDCC Bank Sindhanur 584128

operations, interest rates etc.) were to be governed by RBI and