SUMMER INTERNSHIP PROJECT REPORT

Kodagu District Cooperative Central Bank Ltd

Submitted in partial fulfillment of the requirements for the award of the

Degree of Bachelor of Commerce of CHRIST (Deemed to be University)

Submitted by,
Shayari Shiv. B
Reg No: 2110228
Under the guidance of
Deepika Upadhyay

Department of Commerce
CHRIST (Deemed to be University)
Bangalore- 560029
2023-2024
 DECLARATION

I, Shayari Shiv. B, do hereby declare that the Summer Internship Project has
been undertaken by me as part of my studies in the degree of Bachelor of
Commerce. I have completed this study under the guidance of Deepika
Upadhyay, Department of Commerce, CHRIST (Deemed to be University),
Bangalore.
I also declare that this work has not been submitted for the award of any degree,
diploma, associateship or fellowship, or any other title in this University or any
other University.

Place: Bangalore Shayari Shiv. B

Date: 2110228
 GUIDE CERTIFICATE

This is to certify that the Summer Internship Project submitted by Shayari Shiv.
B is a record of project work done by her during the academic year 2023-24
under my guidance and supervision in partial fulfilment of the requirements for
the award of the Degree of Bachelor of Commerce of CHRIST (Deemed to be
University). This Summer Internship Project has not been submitted for the
award of any degree, diploma, associateship or fellowship or any other title in
this University or any other University.

Place: Bangalore Name and Signature of the Guide

Date: Guide Name: Deepika Upadhyay
CERTIFICATE FROM COMPANY
 ACKNOWLEDGEMENTS

I am indebted to many people who helped me accomplish this internship successfully. Firstly,
I thank the Vice Chancellor Dr Fr Joseph C C of CHRIST (Deemed to be University) for
giving me the opportunity to do my Summer Internship Project. I thank Dr Tomy K
Kallarakal, Dean, School of Commerce, Finance and Accountancy, Dr Karthigai Prakasam, ,
Head of the Department, Dr Naveen Kumara R, Academic Coordinator and Dr Pooja Jain,
Programme Coordinator of the BCom Programme, Department of Commerce for their kind
support.

I wish to take this opportunity to express my deep sense of gratitude to thank Internship guide
Simtha Manager her invaluable guidance throughout my project. I sincerely thank District
Co-operative Central Bank for providing me with an opportunity to be a part of it.

I thank, Deepika Upadhyay for her support and guidance during the course of my Summer
Internship Project. I remember him with much gratitude for his patience and motivation, but
for which I could not have submitted this work.
I thank my parents for their blessings and constant support, without which this

internship would not have seen the light of day.

Student Name: Shayari Shiv. B

Reg No: 2110228

 Table of Contents
SI Title Page No
No

1 Introduction to the Organisation 1

2 Organizational design and functional area 18

3 Key performance areas, organizational control, and 24

strategies

4 Internship Experience 26

5 Weekly Report 29
Chapter 1: Introduction to the organization
1.1 Profile of the organization
The Bank was originally registered on 28th June 1921 and started working from 1st February
1922. A band of enthusiastic Co-operators, Officials and non-officials with Sri. Kodandera
Kuttaiah as the President, set their hands to work for their central organisation. The Bank
began with 45 Co-operative societies and 16 individual members with a paid up share capital
of Rs.4400.00 and deposit of Rs.10000/-. Since then it has made spectacular progress in its
transaction in all spheres of Co-operative Banking activities. At present, there are 288 Co-
operative member societies with total share capital of Rs 2644.52 lakhs and the total business
of the bank is Rs 1975 crores. It is being second district cooperative central bank in the state
to secure license from RBI in the year 1995.

Though advancement in the banking sphere was a challenge to the co-operatives, but with the
sponsorship of NABARD our Bank is fully under Core Banking System with RTGS/NEFT
facilities, SMS, ATM Card Services, IMPS and Mobile Banking Services. With the great
guidelines of NABARD our farmers are given prominence and all KCC holders have come to
the streamline to enjoy the benefits of modern Banking.
1.2 Vision:
To extend the best possible services to our customers is our motto. In order to do this, we
have embarked upon a modernization programme like core banking facilities which will
benefit both our urban and rural customers.
Mission:
To give young people and every creative force an opportunity, offering a serious and humane
alternative banking option.
To offer people a comprehensive range of financial services which will be available to all,
easily accessible and comprehensible but also competitively priced.
To create, the people of the Co-operative Movement a secure, friendly, and efficient working
environment, giving them the scope to evolve with the Organization.
To contribute to society that trusts and supports us, by modernizing and constantly upgrading
our people-centric character.

1
Chapter 2: Organizational design and functional area

2.1 Organization design and structure.

BOARD OF DIRECTORS: The board of directors has 12 members. In that there is one
president and one vice-president and the remaining nine members as the directors of the
board. Whereas the CEO is usually appointed by the government or cooperative society
board.
The various people include:

President Mr. Kodandera P Ganapathy

Vice Mr. Ketolira S Harish Poovaiah

President

Director Mr. Patarapanda B Raghu Nanaiah

Director Mr. H M Ramesh

Director Mr. Kannanda Sampath

Director Mr. K A Subramani

Director Mr. A K Muthappa

Director Mr. B K Chinnappa

Directo Mr. K A Jagadish

r

Directo Mr. S B Bharath Kumar

r

2
Directo Mr. A K Manu Muthappa
r

Directo Mrs. Usha Tejaswini

r

2.2 Policies and procedures followed

 Credit policies: DCCBs have strict credit policies in place to ensure that they lend
money only to borrowers who are creditworthy. These policies typically include
requirements for collateral, repayment history, and financial statements.

 Deposit policies: DCCBs also have strict deposit policies in place to protect the
money that their members deposit with them. These policies typically include
requirements for minimum balance, interest rates, and withdrawal limits.

3
  Remittance policies: DCCBs have remittance policies in place to ensure that money is
transferred safely and securely between bank accounts within India and abroad. These
policies typically include requirements for identification, documentation, and fees.

 Guarantee policies: DCCBs have guarantee policies in place to ensure that they only
provide guarantees to borrowers who are likely to repay the loan. These policies
typically include requirements for collateral, repayment history, and financial
statements.

 Developmental activities policies: DCCBs have developmental activities policies in

place to ensure that their funds are used effectively and efficiently. These policies
typically include requirements for project appraisal, monitoring, and evaluation.

2.3 Products and services, competitors

Any Branch Banking: Any Branch Banking (ABB) is a facility for our customers to
operate their account from any of our networked branches. The branch where the customer
maintains his account is the base branch and the branch from where he carries out his
transactions is referred as the remote branches. Any Branch Banking facility is available in
all branches.
Facilities available under ABB:

 Cash Withdrawal
 Cash Deposit
 Fund Transfers
 Purchase of Demand Drafts / Pay Orders
 Deposit of Local cheques
 Stop Payment facility at Remote Branches
 Repayment to Loan accounts

Eligible Customers:
All adult individual customers and proprietary concerns having an SB, Current account, Corp
4-in-1 Current a/c, Overdraft a/c

Core Banking Solutions:

4
As a part of extension of more and more facilities to our customers, Core banking facility is
also being introduced in our Bank.

ATM Facilities

In Our Bank we introduced ATM Facilities to our Customer as a part of modernization which
is very beneficial to our customers.

Lockers

Safe Deposit Lockers are available at all Branches of the bank of various sizes to suit the
needs of different Customers.

RTGS - (Real Time Gross Settlement)

RTGS is the fastest possible interbank money transfer facility available through secure
banking channels in India.

NEFT- (National Electronic Fund Transfer)

This system of fund transfer operates on a Deferred Net Settlement basis. NEFT operates in
hourly batches from 9 am to 7 pm on week days and 9 am to 1 pm on Saturdays.
Karnataka State Cooperative Bank Kodagu Central Co Op Bank Ltd IFSC code is an 11-digit
code used in online fund transfers. This IFSC code contains 4 Characters that represent
Karnataka State Coop Bank, 5th character is reserved for future use and the last 6 characters
represent the Kodagu Central Co Op Bank Ltd branch code. Karnataka State Coop Bank has
many branches all over the country and physical Cheques cannot be transferred anywhere
across the country to transfer funds hence internet banking is preferred. The IFSC code
KSCB0011001 is used to identify the Karnataka Apex Bank Kodagu Central Co Op Bank Ltd
participating in online transactions via RTGS, IMPS and NEFT systems

Non-Banking Services

Issuing demand draft throughout the country and accepting Cheques, bills, demand drafts etc.
for collection are some of the services offered by the bank.

DEPOSIT SCHEMES AND LOANS

DEPOSIT SCHEME

5
 1) Savings Bank Account

Saving accounts are accounts maintained by retail financial institutions that pay interest but
cannot be used directly as money in the narrow sense of a medium of exchange (for example,
by writing a cheque). These accounts let customers set aside a portion of their liquid assets
while earning a monetary return. For the bank, money in a savings account may not be
callable immediately and, in some jurisdictions, does not incur a reserve requirement. Cash in
the bank's vaults may thus be used, for example, to fund interest-paying loans.
a) The object of the Savings Banks Account is to encourage depositors to save small sums from
time to time. Interest will be allowed at the rates decided by the bank from time to time, on
the lowest balance at credit between the close of the tenth and the last business day of each
calendar month.

b) A person may open an account in his/her own name, but may not open more than one
such account. The person desiring to open an account shall furnish two passport size
photographs and Permanent Account Number or General Index Number as per the
guidelines issued by the Income Tax Authority or in lieu of which a declaration in the
prescribed form shall be given.
c) Nomination facility will be available under section 45ZA read with section 56 of the
Banking Regulations Act 1949 and rule 2(1) of the co-operative Banks (Nominations)
Rules 1985.
d) Accounts may be opened by Secretaries, C. EO, Treasures, Managers or other duly
constituted officers of Corporations whether incorporated or not. The Rules governing
such institutions and all other necessary information should be furnished in writing
when opening the account.
e) Accounts may be opened with a minimum sum of Rs.500/- and the same to be
maintained to keep the account running.
f) Cheque Book facility will be provided to the account holder who maintains a
minimum balance of Rs.1000/-.
g) No charge will be made for the passbook issued to a depositor on account opening or
for any Pass-Book issued to him in continuation of the original Pass-Book

2) Fixed Deposit

6
 A Fixed Deposit (FD) is a financial instrument provided by banks which provides investors
with a higher rate of interest than a regular savings account, until the given maturity date. It
may or may not require the creation of a separate account. They are considered to be very
safe investments. The interest on Fixed Deposit will be paid at rates applicable for the period
of deposit as prescribed under the Reserve Bank of India’s rules/directives/guidelines from
time to time and fixed by the Bank. These investments are safer than Post Office Schemes as
they are covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
Interest is paid at quarterly rests. If required, monthly interest may be paid at discounted
rates. The fixed Deposit account can be transferred from one branch of bank to the other at
the request of the depositor after maturity only. Nomination Facility is available. Necessary
application is to be obtained from the depositor and entries are to be made accordingly in the
Banks records.

Premature Closure:

· The depositor can close the account prematurely. In such case interest will be paid at
the applicable rate of interest for the period deposit remained with the bank.

Renewal of matured deposit:

· The total amount of overdue deposits or part thereof can be renewed from the date of
its maturity till some future date provided the renewal must be for a minimum of 15
days, beyond the date on which it is renewed and the renewal is made within 15 days
from the date of maturity.

· The interest is payable at the appropriate operative rate on the date of maturity of original
deposit and is payable only on the amount of the deposit so renewed.
The rates applicable are

Sl Particulars Rates
No.

1 30days to 45days 4.50

2 46days to 90days 5.50

7
 3 91 days to 179days 6.50

4 180days to 1year 7.00

5 1year to 2years 7.30

6 2year to 3years 7.00

7 3years & above 7.00

For senior citizens the usual rate plus .5% is applicable.

However, the tax on interest from fixed deposits is not 10%; it is applicable at the rate of tax
slab of the deposit holder. If any tax on Fixed Deposit interest is due after TDS, the holder is
expected to declare it in Income Tax returns and pay it by himself. If the customer has
submitted the PAN.
If the total income for a year does not fall within the overall taxable limits, customers can
submit a Form 15 G (below 60 years of age) or Form 15 H (above 60 years of age) to the
bank when starting the FD and at the start of every financial year to avoid TDS.

3) Recurring Deposit

a) Recurring Deposit is a special kind of Term Deposit offered by banks in India

that help people with regular incomes to deposit a fixed amount every month
into their Recurring Deposit account and earn interest at the rate applicable to
Fixed Deposits. It is similar to making FDs of a certain amount in monthly
instalments. Recurring Deposit schemes allow customers with an opportunity
to build up their savings through regular monthly deposits of fixed sum over a
fixed period of time.

4) Pigmy Deposit Scheme

a) Money can be deposited into an account on a daily basis. The amount may be
as small as Rupees five. It can be called a recurring deposit scheme, as the

8
 money is deposited almost daily. The unique characteristic of this scheme is
that a bank agent collects the money daily, from the account holder's doorstep.
b) The scheme was introduced to help daily wage earners, small traders, and
farmers to inculcate a saving habit and also as a means to fund their bigger
capital requirements, such as a wedding, home buying, vehicle purchase. The
scheme is now offered by several other banks in India. But KDCC bank is
giving this facility to business people only.
c) They were treated as part and parcel of the banking and trading system often
carrying legitimate and confidential market and trading information within the
network and contributed to the development of stock exchanges. The trading
system is not complete without recognizing them as the pillars of the funds
deposit system.
d) As they were enjoying high level of confidence amongst the business
community they even took part in personal affairs of traders-big and small and
also took part in various social activities again within the network.
e) Many a competition were held to recognize the efforts of these tiny soldiers
armed with highly noticeable market or marketing skills that led to the
popularity of Pigmy Deposit Collection system.
f) This also generated huge deposits over a period and also created long-term
and sustainable employment to youth who like freedom and also enjoy
mingling with market enthusiasts as well as in creating market sensation.

LOANS
· Loan Sanctioned up to ‘NABARD’ exposure limit
· Insurance compulsory
· The applicant should encash the loan Amount within 3 months from the date of sanction.
· The immovable property should be registered through Sub- registrar in the name of the
Bank. This should be kept under the bank up to the closure of loan.
· KYC norms of RBI are applicable for every person who applies for loan.
· Every form of loan is given to individuals or society after it is verified by the legal adviser.
· After their approval the file is present in the monthly board meeting if it is approved there
then the loan is sanctioned. The maximum limit of loans is

9
 Sl.n Particulars Maximum limit (₨ in lakhs)
o

1 Agriculture loan with subsidy 10

2 Other loan & no subsidy loan (till 31/03/2019) 60

3 Other loan & no subsidy loan (after 31/03/2019) 60

4 Company or society 22cr

1) Short Term Agriculture Loan

Sl.n Amount Rate (in %)

o

1 Below 3 Lakhs 0

2 Above 3 Lakhs 10.75

a) Kissan Credit Card (KCC Loan) – Society

This is a form of loan provided by the bank for agricultural purpose. This is a form of indirect
loan given to the individuals. The loan will be sanctioned to the different primary agriculture
co-operative society and other co-operative society. They in turn will give the loan to their
members. The maximum of 1cr can be sanctioned per society. The term of loan is one year.
The individual must submit the application to the society with the following documents. One
copy of RTC of the land on which they want to take the loan, encumbrance certificate (noc
from other banks stating that they have not taken any such loan in their bank) and two
individuals must sign as surety (surety can’t be their family members), their RTC must also
submitted.

b) KCC Loan – Individuals

10
 Procedure – the individual must submit the application to the bank with the following
documents. One copy of RTC of the land on which they want to take the loan, encumbrance
certificate (NOC from other banks stating that they have not taken any such loan in their
bank) and two individuals must sign as surety (surety can’t be their family members), their
RTC must also submitted.
A form of loan provided individuals for only for agriculture purpose. A maximum of 65
thousand will be sanctioned per acre per individuals. The term of loan is 1year.

2) Medium Term Agriculture Loan: -

Interest rate is 8.9% p.a for all types of Medium Term Agriculture Loan. There is a
government subsidy of 5.90% for this type of loans. Therefore, the individuals have to
pay only 3% interest on this type of loans. This is applicable only for those who pay their
installment on time.

a) Godown, Drying Yard Loan, Sprinkler Loan and Farm Pond Loan
The individual must submit the application to the society with the following documents. One
copy of RTC of the land on which they want to take the loan, encumbrance certificate, the
project plane & estimate and two individuals must sign as surety, their RTC must also
submitted.
Loan is provided for 7years. With a maximum limit of 70,000 per acre per person or the
request amount. And max 10L with subsidy.

b) Farm Mechanization and Coffee Pulper

It is given on agriculture vehicles or implements. Application must be submitted with the
following, quotation of the vehicle or implement must be given to the bank. With the RTC of
their land holdings, encumbrances certificate, surety of two people with their RTC.
Loan is provided for 7yearly installment. With a maximum limit of 70,000 per acer per
person or the request amount or 70% of the quotation whichever is lower. And max 10L with
subsidy.

3) Agriculture Allied Medium Term Loan: -

The different types of loans given under this seems
Apiculture, piggery, Dairy Farming, Pashu Bhagya, Fisheries

11
 Sl.n Particulars Rate (in %)
o

1 Below 50000 0

2 Above 50000 12

The individuals must submit the application along with the following documents such as,
project estimate, a certificate from concerned government department of the above allied
agriculture activity and a certificate panchayath development officer (P.D.O) stating that
individual is allied such activity.
Once the document is submitted and verified by the bank officials the loan is sanctioned.
Here was no further loan sanctioned this year but there was a recovery of 50000/-

4) Other priority sector loan: -

a) Cash credit loan and marketing finance: -

It is provided to the society and business units based on their inventory level. For this the
institutions must provide their stock statement dually sing by the president/M. D in the
security of the institution. This will be physically verified by the branch manager or the
supervisor. Once conform the loan will be sanction.
b) PACS as MSC (Multi Service Centre – Society)
This is a scheme of loan provided NABARD to PACS (Primary Agriculture Co-Operative
Society) through DCC Bank. This loan is given towards the development and construction of
society building. For this the PACS must submit their project report to the bank, they must
also mortgage the property in which the building is there to the bank. A maximum of 50% of
the project can be sanctioned.
c) Pradhan Mantri Mudra Yojana: -
The current policy of Prime Minister Narendra Modi is quite focused on developing the
Indian economy. JanDhan Yojana was born out of this objective of the PM and under this
Yojana. Micro Units Development and Refinance Agency (MUDRA) is a financial
initiative by PM Narendra Modi, created in order to facilitate the micro units and provide
them sufficient funds in order to develop. Small businesses are often unable to avail loans
from banks because of lack of collateral and insufficient funds to pay off the interest.
d) SHG (Self Help Group) Loan: -

12
 Self Help Group is a scheme of government where individuals come together to form groups
to help each other
The loan is given to SHG for caring on their project. Rate of interest is 12% p.an it is given to
a period of 1year. There are two condition to avail this loan

i. Their weekly earnings or savings should be remitted to their savings bank account in
DCC bank.
ii. The books of accounts of the SHG will be monitored by the bank employees.

e) JLG (Joint Liability Group) Loan: -

It is a group of minimum 4 members and a maximum of 10 members. Loan is given to the group
in surety basis, that is one other it surety to each other. Which means it is unlimited liability.
The individual must submit the application to the bank with the following documents. One
copy of the RTC of each member of the group must be given. The rate of interest applicable
is 12% and the term is 1 year.
5) Short Term Non-Agriculture Loan

a) Overdraft loan – General

Only business entities with current accounts can avail of this facility. The business premises
have to be mortgaged, the business license should be given, sufficient inventory must be
maintained which will be verified by the bank staff and there should be a surety of two
individuals. The loan must be repaid within one year which then can e than renewed by
them.
b) Overdraft Loan – Staff: -
It is a special provision given to the bank staff where they can overdraw from their account
for a period of 3 years. The maximum amount that can be drawn is 5 Lakhs rupees. After a
period of 3years, they can renew the overdraft.
For this, the application must be given with a surety of 2(two) other staff. The repayment is
made from their salary. The monthly installment is deducted from their monthly salary.
c) Jewel Loan: -
It is a type of loan given on the mortgage of jewellery to the bank. The value of gold or other
precious metals is decided by the Head Office (HO) based on the market value in regular
intervals.

13
 The loan is given to the public individuals on 85% of jewellery value. The maximum loan
amount of loan that can be sanctioned is 10 lakhs for a period of 1 year at a rate of 10%. After
the period the loan can be renewed.
d) Pigmy Loan: -
Once the pigmy account is opened loan will be given to then after 6 (Six) months and there
should be a minimum balance of Rs20,000/- in the pigmy account. If the above condition’s
are fulfilled the application can be given to the bank with a copy of their RTC two surety
(surety’s RTC) and importantly the applicants business license.

i. Pigmy Deposit Surety Loan: The loan is given to applicants with an interest rate of
13%p. a for a period of 1 year, the maximum amount of loan which can be
sanctioned is up to Rs1 Lakh
ii. Pigmy Deposit Loan: The loan is given to the applicant with an interest rate of
10%p. a for a period of 1year. The maximum amount is 85% of the available balance in their
pigmy account.

e) FD (Fixed Deposit) Loan: For this type of loan, the society or individual must first of all
should have a fixed deposit. To take loan they must pledge their fixed deposit certificate with
the bank and sign a bond & give to the bank.
Loan will be sanctioned up to 85% face value of the fixed deposit and the rat applicable is 2%
more than the fixed deposit rate. The term of this loan is up to the date of maturity of the
fixed deposit.
f) Loan on Recurring Deposits: -
The Bank may grant loans on the security of Recurring deposit accounts not exceeding 80%
of the balance at credit fixed by the Bank from time to time.
g) Surety Loan: -
This loan is given no the already pledge property by the borrowers of any other type of the
above loan. No additional documents are required except an additional surety of two.
A maximum of Rs3,00,000/- per person or 30,000/-per acre of RTC. The maximum period
of this loan is 1 year. But the maturity period is always 31 March irrespective of when the
st

loan is taken.
6) Medium-Term Non-Agriculture Loan: -

a) Building Loan: -

14
 This loan is given to individuals, society, educational institutions, etc. for other than
commercial purposes. For this, the place of the building must be mortgaged to the bank.
RTC, purchase deed of the land, encumbrance certificate must be of 30 years minimum
and other related documents must be submitted. And additional collateral security must
be given like coffee estate, sites.
It has an interest rate of 13.5%p.a. The maturity period is 15 years with an annual
installment.

b) Commercial Complex Loan: -

This loan is given to individuals, society, educational institutions, etc. for commercial
purpose. For this the place of the building must be mortgaged to the bank. RTC, purchase
deed of the land, sometimes previous owners right to property must be enclosed,
encumbrance certificate must be of minimum 30 years and other related documents must
be submitted. And additional collateral security must be given like coffee estate sites.

Maximum limit: For Institutions is Rs.2.00 crore and for Individuals is Rs. 60.00 lakhs
or 70% of the Estimation/valuation. It has an interest rate of 13.5%p.a. the maturity
period is 15 years with annual installment.

c) Vehicle Loan: -
It is given for any kind of vehicle the applicant wants to purchase. Application must be
submitted with the following, quotation (quotation price = ex showroom price + insurance +
registration fee) of the vehicle or must be given to the bank. With the RTC of their land
holdings, encumbrances certificate, surety of two people with their RTC. If the loan amount
is more than Rs10Lakhs collateral security must be mortgaged with the bank.
Term: 5 yearly or 60 monthly or as decided by the loan sanctioning authority.
Maximum limit: - With a maximum limit of 70,000 per acre per person, or the request
amount or 70% of the quotation or Rs.60,00,000/-, whichever is lower. The rate of interest
applicable is 10% p.a.
Eligibility: - For Land holders – Commercial Crop Rs.70000/- per acre, Food Crops –
Rs.20000/- per acre. For Salary class – Eligibility will be based on their home take salary.

d) Personal Loan: -

15
 Also known as salary loan. As the name suggest the individual must be salaried in any
institution. Such individuals can avail this loan by submitting their salary certificate and no
objection/due certificate by the employer must be submitted. This must be supported by
surety of two other employees’ people with their salary certificate. In addition, the individual
must have a minimum service period of 5 years left. If in case it is less than the installment
amount increases proportionately.
Repayment is done in 60 installments over a period of 5years. Rate of interest applicable is
12%p. a
7) Long term Non-Agriculture Loan
a) Site mortgage Loan and Agriculture Land Purchase Loan
The loan is given to both individuals and firms for basically purchase of land of different
types. Maturity period is 10 years with annual installment. The rate of interest applicable is
13%p. a
Maximum limit: For House/site is Rs.20,00,000/-.
Record of Land required is Original title deed, Parent document. Latest RTC. EC for last 13
years up to date, Conversion order, etc.,
b) Housing Loan individual or staff
This loan is given for construction of house by individuals or staff. For this application must
be submitted with the record of Land required is Original title deed, Parent document. Latest
RTC. EC for last 13 years up to date, Conversion order, etc.
Maturity period is 10 years with annual installment. The rate of interest applicable is 13%p. a
with a maximum limit of 70% of the quotation or Rs70,000/- per acre whichever is lower.
c) Tourism Loan
This loan is given to Tourism Company / firm / agents. The rate of interest applicable is
13%p.a
2.4 Business model:
The business model of a district central cooperative bank (DCCB) is based on the cooperative
principle of "one member, one vote." This means that each member of the bank has an equal
say in how the bank is run. The members of the bank elect a board of directors, who in turn
appoint a managing director to run the day-to-day operations of the bank. DCCBs provide a
variety of financial services to their members, including:

 Deposit taking: DCCBs accept deposits from their members in the form of savings
accounts, fixed deposits, and recurring deposits.
16
  Lending: DCCBs lend money to their members for a variety of purposes, such as
agricultural loans, business loans, and housing loans.

 Remittance: DCCBs provide remittance services to their members, allowing them to

send and receive money within India and abroad.

 Guarantee: DCCBs provide guarantees to their members, which can help them to
secure loans from other financial institutions.

 Developmental activities: DCCBs also engage in a variety of developmental

activities, such as providing financial assistance to rural farmers and promoting
entrepreneurship.

DCCBs are regulated by the Reserve Bank of India (RBI). The RBI sets the interest rates that
DCCBs can charge on their loans and the interest rates that they can pay on their deposits.
The RBI also monitors the financial health of DCCBs and can take steps to intervene if they
are in financial trouble. DCCBs play an important role in the Indian economy. They provide
financial services to millions of people who would otherwise not have access to credit. They
also promote rural development and entrepreneurship. DCCBs are a vital part of the
cooperative banking system in India.

2.5 Department/ Divisions/ Areas of the organization

Managers: Whereas the directors define the direction and objectives of a business unit, it is
the managers who decide how to implement them. Community banking will have managers
for areas like new accounts, branch operations, and teller services. Consumer lending will
assign overseers for the department's credit management, direct consumer loans, and home
equity loan functions
Account Opening: This department takes care of opening bank account like Savings Bank
account current account and pigmy account. Furthermore, the transaction related to this
account like cheque debit, transfers, creating joint accounts, linking bank account with
facilities like LPS subsidy etc.
Loan section: Loan section deals with the procedure of taking application for loans, detail
evaluation and review of their application, sanction of loans, recovery of the given loans and
advance. They also have the power to issue No Due Certificate for other public who wish to
take loan from other banks and also maintain their customer relationship which helps the
bank in their future business prospective.

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 Cashier: This department has the responsibility of collecting deposit from customers and
giving money for the customers who demand that. Even though the loan is sanctioned by that
department the amount can be withdrawn in cash department only. It can be one of the
departments which have more risk involved.
Fixed Deposit Section: Even though there is a separate section for creating deposit schemes
fixed deposit is separated from those because the amount involved and procedure of creating
a FD is time consuming and also it takes the burden of the other accounts section.
Accounts Section: This is one of the important departments of the bank as it looks after all
other departments. The main work in this department is accounting all the transactions that
were done the previous day. This helps the bank keep the details of all transaction for future
reference. This department also takes care of the collection of Cheque for its customers from
different banks. This section is designed in such a manner that it checks the works of others,
in other words it is a form of internal audit.
Jewel Loan: Jewel loan has a separate department because there is more number of
transactions of this type loans in this branch approximately 30 – 35 loans are either
sanctioned or renewed or payment of interest.

Chapter 3- Key performance areas, organizational control and strategies

3.1 KRAs of various departments:
The post holder will work closely with the Chief Executive, and Management Board, leading
on defined programs to ensure that.
· Developed a strategy to raise the profile
· Effective governance arrangements,
· Robust business plans for its operation, sustainability and future development,
· Effective communications strategy,
· Effective policy role and function

3.2 System of accounting followed

The bank's accounting system is a method of recording, reporting and analyzing the
financial results of banking transactions.

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 1) Recording/Bookkeeping: -The bookkeeper records the transactions of the bank
in a daily journal/software. These records are then used to generate various
financial reports that provide an historical record of the cooperative’s business
activity. The member records are needed because of the cooperative’s unique role
of providing economic benefits distributed in proportion to each member’s use.

The recording system includes: Daily Journal, General Ledger, Member

Records, Capital Investment, Patronage Accounts, Reporting.

2) Reporting System: -The reporting system covers the balance sheet, income
statement, and statement of cash flows. These financial statements report the
results of the cooperative’s business transactions. This also includes the monthly
cash flow statement, a planning tool for management.

The reporting system includes: Balance Sheet, Income Statement, Statement of

Cash Flows, Monthly Cash Flow Statement.

3.3 Recruitment, performance appraisal system and Training and

development

Recruitment process

1. Notification: The bank releases a notification for the recruitment of various posts on
its official website. The notification contains the details of the posts that are being
recruited for, the eligibility criteria, the application process, and the dates of the
recruitment process.

2. Application: Interested candidates can apply online through the bank's website. The
application form must be filled in carefully and all the required documents must be
uploaded.

3. Preliminary screening: The applications are screened based on the eligibility criteria
mentioned in the notification. Only the eligible candidates are called for the next
round of the recruitment process.

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 4. Written test: A written test is conducted to assess the candidate's knowledge and skills
for the post they are applying for. The test is usually objective in nature and covers
topics related to the post.

5. Interview: The shortlisted candidates are called for an interview. The interview is
conducted to assess the candidate's personality, communication skills, and suitability
for the post.

6. Medical examination: The selected candidates are required to undergo a medical

examination to ensure that they are fit for the post.

7. Declaration of results: The results of the recruitment process are declared on the
bank's website. The selected candidates are issued appointment letters.

PERFORMANCE APPRAISAL

Salary hike on regular intervals (i.e. yearly). Promotion of the deserving staff based on their
seniority. Recognition of individual performance and given them special allowances.
Identification of individual needs on that basis giving them work and allowances.
Determining transfer and job assignment in the employees are performing better in some
areas then they will be made in charge of that department and given transfer to those branch
where that department is performing poorly. Identifying of individual’s strengths and giving
them assignment based on those.

3.4 Financial highlights:

NON-PERFORMING ASSETS AND RECOVERY

A Non-performing asset (NPA) is defined as a credit facility in respect of which the interest
and/or installment of Bond finance principal has remained ‘past due’ for a specified period
of time. NPA is used by financial institution that refers to loans that are in jeopardy of
default. Once the borrower has failed to make interest or principle payments for 90 days the
loan is considered to be a non-performing asset. Non-performing assets are problematic for
financial institutions since they depend on interest payments for income. Troublesome
pressure from the economy can lead to a sharp increase in Non-performing asset and often
results in massive write-downs.

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The total NPA of the of the branch is only 0.33% for the year end 2016 which is a very good
sign which shows that the bank has a very good recovery policy and they are working
efficiently to achieve their targets.

Sl.no Particulars O/D (no of days NPA

after due
date/installment)
1 KCC Loan 180 days From 181 th

day
2 Other 90 days From 91 day
th

Agriculture
loan
3 Personal 3 installment From 4 th

Loan installment
4 Jewellery 90 days From 91 day
th

Loan
5 Any other 3 installment From 4 th

loan installment

RECOVERY

The Kodagu District Co-operative central bank has a record recovery since its inception. The
recovery rate was increasing year after year helping the bank to achieve no.1 status among
the Co-operative Banks in the country.

State Government Interest Waiver Scheme, as well as interest subsidy scheme, has helped our
bank to recover of Agriculture loans. The Recovery of agriculture loans to 90 to 95% and
non-agriculture loan recovery is above 95%

3.5 Information technology:

ATM: This feature helps customers to get money from anywhere at any time and they need
not frequently visit the bank to withdraw.

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SMS services: this service provides customers to know their bank balance every time they
withdraw money.

Systems are updated: The CBS of DCC bank is in Mumbai. The systems are regularly
checked and updated.

The facility of the Internet: There is an Internet facility that helps in faster transactions and
switch in traditional approach to system-based approach.

3.6 Key success factors and strategies;

 Brand image
 Size of the Bank
 Location and Convenience
 Different type of services
 Best rates
 The industry itself.

Once the loan becomes NPA the following steps will be taken

· The branch manager will call up the customers who are due.

· Then a recovery team will visit customers place.

· If the still didn’t pay, then an official notice is sent to the customers by the Head Office.

· If there is no response, then a Suit is filled with the District register (DR)

· If there is disagreement with the decision the Suit is filed with Joint Director (JR)

· If there is still disagreement with the decision an execution petition will be filed in the
court which has court cost.

· The suit will be filed for the value of outstanding loan plus interest amount due till the
date of filling return.

3.6 SWOC analysis

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 STRENGTHS

1) Significant experience and strong brand name: - The goodwill of the bank which was
slowly built by them over the past 95 years.

2) Social Principles: - The Cooperative movement had emerged as an alternative to other forms
of business organization to safeguard the interest of the weaker section of the society.
Improving the economic conditions of the members is the primary objective of the co-
operatives.

3) Mutuality: - “Each for all and all for each" is the essence of co-operation. Through mutual
help, the common goal is achieved.

4) Rural Accessibility: - Rural Penetration is an important strength. Private sector and

multinational banks do not have the accessibility to the extent the co-operatives have. The
Co-operative credit institutions and dairy co-operatives have more accessibility in rural areas.

WEAKNESS

1) Inefficient IT department: - The servers are very slow which makes the customers unhappy
about the service of the bank.

2) Inefficient HR department: - There is no proper recruitment and shortage of staff, which is

largely because of government interference.

3) The slow process of granting loan: - In case of some loans which should be approved be
HO or BOD that would take some time.

4) Lack of Autonomy: - Nowadays cooperative bank suffer from lack of autonomy. State
partnership in cooperatives caused the introduction of many restrictive provisions in various
state cooperative societies’ acts. The restrictive provisions eroded the autonomy and
independence of cooperatives banks.

OPPORTUNITIES

1) Diversification of Activities: - The cooperatives can diversify their activities, their products
and the services.

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2) Still there is a large untapped potential customer’s: - As Coorg is basically an agricultural
and plantation district every year the number of people applying for loans had been in a
constant rise.

3) Expansion of Business: - This can be achieved by setting up new branches.

Challenges

1) Competition: - Banks may face tough competition from the private sector. The private
sector banks provide better service than the service provided by cooperative barks. The bank
is not able to meet the expected standards and quality.

2) Disloyalty of Members: - Not all modern banking technique is being introduced which will
encourage the customers to go for other banks which provide those facilities to the customers.

3) Default risk run into losses due to the counter party defaulting on their liabilities.

3.7 Future plans for the growth of the organization.

The bank aims to get more depositors than its current depositors. The bank is looking forward
to expanding into online payment facilities such as google pay and phone pay. It wants to
reduce the NPA and encourage more entrepreneurship and increase its lending ability. The
bank is aiming to improve its CBS and technology. It is aiming to expand and improve its
security. The bank is working to improve its mobile application

Chapter 4- Internship Experience

4.1 Departmental Insights:

Loan department: The loan department is responsible for lending money to the bank's
members. This department is critical to the bank's financial health, as it generates most of the
bank's income. The loan department must carefully assess the creditworthiness of borrowers
before approving loans. It must also monitor the repayment of loans to ensure that the bank
does not incur losses.

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Deposit department: The deposit department is responsible for accepting deposits from the
bank's members. This department must ensure that deposits are safe and secure. It must also
offer competitive interest rates on deposits to attract and retain depositors.

Developmental activities department: The developmental activities department is responsible

for carrying out various developmental activities in the bank's district. This can include
providing financial assistance to rural farmers, promoting entrepreneurship, and building
infrastructure. The developmental activities department plays an important role in promoting
economic development in the district.

4.2 Internship Experience:

Week 1:
I started my internship on 29th May. The first task I was assigned was to write a withdrawal
slip. I observed the jewel loan sanctions and the NEFT and RTGS transactions. I understood
that there are various rates of interest, the charges levied on NEFT is 18 and RTGS is 30
irrespective of the amount that is being transferred. I understood the jewel loan sanctioning
process, where the lender gives their ornaments to the bank and they check the purity and
weightage of the asset. This is then written on the sealed pouch where the ornaments are
stored and registered in a ledger and it is signed by the lender/ customer.
Learning outcome:
 Withdrawal slips help me understand the importance of having accuracy and avoiding
errors by paying attention to minute details. The process of jewel loan. This helped
me understand the process and the requirements This exposed me to the digital
banking process and how technology has helped the bank and customers for faster
services.

Week 2:
In the second week, I had the opportunity to write the cheques. This included for both NEFT
and RTGS and for transfer between the banks and the societies. I understood that during
NEFT or RTGS transactions we have to include the charges on the process on the cheques,
failing to mention we can attach a debit slip mentioning the amount. When the customers
asked for cheques for giving to the society it was for renewal of cheques or transfer of
money. There were three PACS (primary agriculture cooperative society) that come under

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Murnad branch ie, Hoddur PACS, Maragodu PACS and Murnad PACS. When the amount
was transferred from the Bank to society the customers were given advisory slips. I learnt the
loan sanction process, how various interests rates are levied depending upon the type of loan.
Learning outcome:
 Talking to customers help me build rapport and improve my communication skills. I
learnt the charges with RTC it is 9% and without RTC is 10% interest. Importance of
maintaining the debit slip and providing advisory slips.
Week 3:
On the 3rd week of my internship I learnt to sort vouchers, filling bank account opening
applications and filling FD forms. This task helped me to know the interest rate provided for
various FD's. It is 7.75% for 365 days. The number of FD depositors were good as people
understand the importance of investing their money in the right way. Filling bank account
opening applications helped me to maintain accuracy and avoid mistakes. Sorting vouchers
are essential as the act as an evidence during the auditing process.
Learning outcome:
 Importance of sorting vouchers and maintenance of credit and debit slips
 Awareness about the various interest rates.
Week 4 and 5
On the 4th and the 5th week of my internship I learnt about closing and updating the pigmy
deposit Scheme. This is what I learnt about Pigmy Deposit Scheme. This is a type of Deposit
Scheme where the Depositor accumulates money daily.
 A bank agent collects the money from the account holder everyday.
 The customer can start the Scheme with minimum deposit of ₹50
 The interest is paid annually. If they close the account before 6 months, charges are
levied and if they close between 6-12 months no charges are levied.
 This scheme will benefit daily wage earners, farmers and,small business for
procuring larger capital requirements.
 No penalty is charged if they fail to pay.
Learning outcome:
 Helping customer create multiple streams of income. Helps customers to maintain
good relationship with the bank and efficienciently use their money. Paying attention
to credit and balance amount.
4.3 Students Recommendation

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  Introduce new products and services: The bank could introduce new products and
services, such as mobile banking.
 The bank could introduce a more customer-friendly website that is easy to navigate
and use.

 The bank could offer more training and development opportunities for its staff to
improve their skills and knowledge.

 The bank could implement a more robust risk management system to mitigate the
risks associated with lending and investing.

 The bank could improve its internal controls to ensure that its operations are
conducted in a fair and transparent manner.

 The bank could conduct regular self-assessments to identify areas for improvement.

4.4 Conclusion

Commercial banks play an indispensable role. The Governments, both central and states,
shall continue to help the cooperative banks, but they shall not interfere in the functions of
banks. Restrictive provisions in the existing cooperative laws must be eliminated by making
amendments in the lines of the Model Cooperatives Societies Act, 1991 or the Multi - State
Cooperative Societies Act, 2002. This will pave the way for the development of true
cooperative bank and help them achieve their goals and objectives.

I felt like whatever we learn in our college or degree is actually not applied in the industry
rather they have their own procedure and policies that has to be followed. What we learn is
just for the sake of knowledge.

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