A STUDY ON LOANS AND ADVANCES AT BCCB

SCHOOL OF COMMERCE

A Major Project Report

On

“A STUDY ON LOANS AND ADVANCES AT BANGALORE CITY CO-OPERATIVE

BANK LIMITED”

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

BACHELORE OF COMMERCE

Submitted by

GAGANA.S

(R17BC043)

Under the guidance of

Prof. NAGARAJU L G

SCHOOL OF COMMERCE

April 2020

Rukmini Knowledge park, Kattigenahalli, Yelahanka , Bengaluru -560064

www.reva.edu.in

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DECLARATION

I, Ms. GAGANA.S, student of B.Com (industry Integrated) belong in to school of Commerce,

REVA University, declare that this Project Report/Dissertation entitled “A STUDY ON LOANS
AND ADVANCES AT BANGALORE CITY CO-OPERATIVE BANK” is the result the of project /
dissertation work done by me under the supervision of Dr/Prof. Nagraju.L.G.

I am submitting this Project Report / Dissertation in partial fulfillment of the requirements for
the award of the degree of Bachelor of Commerce in Commerce by the REVA University,
Bangalore during the academic year 2019-2020.

I further declare that this project / dissertation report or any part of it has not been submitted
for award of any other Degree of this University

(Signature of the candidate)

Certified that this project work submitted by Gagana.S has been carried out under my / our
guidance and the declaration made by the candidate is true to the best of my knowledge.

Signature of Guide Signature of Co-Guide, (if any)

Date: ………………. Date: …………………

Signature of Director of School

Date: …………………

Official Seal of the School

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ACKNOWLEDGEMENT
This is a matter of pleasure for me to acknowledge my deep sense of gratitude to REVA
UNIVERSITY and my college, School of Commerce for giving me an opportunity to explore my
abilities via this internship program.

I would like to express my sincere gratitude to our internship guide GAGANA.S for his valuable
guidance and advice in completing this organization study.

Let me take this opportunity to thank School Director, Prof. Shubha A for the whole hearted
support extended to me throughout the conduct of the study. Madam gave me lot of inputs
and suggestions to bring out the best in me. The encouraging words that have been extended
were great boost for the completion of this work.

I would like to record my sincere appreciation and gratitude towards all the official and
employees of BCCB LTD including my external guides of BBCB LTD, without whose kind
assistance ,my internship program would not have succeeded.

I am also very thankful and grateful towards my senior, colleagues and authorities of School of
Commerce, REVA UNIVERSITY for their support, encouragement, and valuable suggestions for
the completion of this organization study.

GAGANA.S

(R17BC043)

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TABLE OF CONTENTS

SR.NO CONTENTS PAGE.NO

1 INTRODUCTION 5-20

2 COMAPANY PROFILE 21-35

3 RESEARCH DESIGN 36-38

4 DATA ANALYSIS AND INTERPRETATION 39-68

5 FINDINGS,SUGGUESTIONS,CONCLUSION 69-73

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CHAPTER-1

INTRODUCTION TO BANKING

Finance is the life blood of trade, commerce and industries. Now-a-days, banking sectors acts as
the backbone as the modern business. Development of any country mainly depends upon the
banking system. The term bank derived from the French word ‘ban co’ which means a bench or
money exchange table.

History of banking

The first banks were the merchants of the ancient world that made loans to formers and traders
that carried goods between cites. The first records of such activity dates back to around 2000BC
in Assyria and Babylonia .later, in ancient Greece and during the Roman Empire, lenders who
were based in temples made loans but added to important innovations: accepting deposits and
changing money. During this period there is similar evidence of the independent development of
lending of money in ancient china and separately in ancient India.

Banking, in the modern sense of the word, can be traced to medieval and early renaissance Italy,
to the rich cities in the north such as Florence, Venice and Genoa. The Bardi and Peruzzi
families dominated banking in 14thcentury Florence, establishing branches in many other parts of
Europe. Perhaps the most famous Italian bank was the Medici bank, established by Giovanni
Medici in 1397.

The development of banking spread through Europe and a number of important innovations took
place in Amsterdam during the Dutch republic in the 16 th century and in London in 17thcentury.
During the 20thcentury, developments in telecommunications and computing resulting in major
changes to the way banks operated and allowed them to dramatically increase in size and
geographic spread. The late -2000sfinancial crisis saw significant number of banks failures,
including some of the world’s largest banks, and much debate about bank regulations.

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BANKING IN INDIA: (Industrial background)

Banking in India originated in the last decades of the 18 th century. The first banks were the
general bank of India which started in 1786, and the bank of Hindustan both of which are now
defunct. The oldest bank in existence in India is the state bank of India, which originated in the
bank of Calcutta in June 1806, which almost immediately became the bank of Bengal.

This was one of three presidency banks, the other two being the bank of Bombay and the bank of
madras, all three of which were established under charters from the British east India Company.
For many years the presidency banks acted as quasi-central banks, as did their successors. The
three banks merged in1921 to form the imperial bank of India, which upon India’s independence
became the state bank of India.

Currently, India has 96 scheduled commercial banks(SCBs)-27 public sectors banks (that is with
the government of India holding a stake),31 private banks (theses do not have government stake;
they may be publicly listed and traded on stock exchanges)and 38 foreign banks. They have a
combined network of over 53,000 branches and 17000 ATMs. According to a report by ICRA
limited, a rating agency, the public sector banks hold over 75 percent of total asset of the banking
industry with the private and foreign banks holding 18.2% and 6.5% respectively.

Meaning:

A bank is a financial institution that provides banking and other financial services to their
customers. A bank is generally understood as an institution which provides fundamental banking
services such as accepting deposits and providing loans.

Definition of banking:

Oxford dictionary defines a bank as “an establishment for custody of money, which it pays out
on customers order”.

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Objectives /Characteristics/ features of a bank:

Following are the characteristics of a bank:

1. Dealing in money: Bank is a financial institution which deals with other people’s money
i.e. money given by depositors.
2. Individual/ Firm/Company: A bank may be a person, firm or a company. A Banking
company means a company which is in the business.
3. Acceptance of deposits: A bank accepts money from the people in the form of deposits
which are usually repayable on demand or after the expiry of a fixed period. It gives
safety to the deposits of its customer .it also acts as a custodian of funds of its customers.
4. Giving advances: A bank lends out money in the form of loan to those who require it for
different purpose.
5. Payment and withdrawals: a bank provides easy payment and withdrawals facility to its
customer in the form of cheque and drafts it also brings bank money in circulation. This
money is in the form of cheques ,drafts , etc
6. Agency and utility services: A bank provides various banking facilities to its customers.
They include general utility services and agency
7. Profit and services orientation: a bank is a profit seeking institution having services
oriented approach.
8. Ever increasing functions: Banking is an evolutionary concept .there is continuous
expansion and diversification as regards the functions ,services and activities of a bank
9. Connecting link : A bank acts as connecting link between borrowers and lenders of
money .Banks collects money from those who have surplus money and give the same to
the who are in need of money
10. Banking business: A banks main activity should be to do business of banking which
should not be subsidiary to any other business.
11. Name identify: A bank should always add the word “bank” to its name to enable people
to know that it is bank and that it is dealing in money

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FUNCTION OF BANKING:

Functions of bank

Primary function Secondary function

Accepting Granting Agency Utility

deposits services services services

PRIMARY FUNCTION OF BANKS:

The primary functions of a bank are also known as banking functions. They are the main
functions of a bank.

These primary functions of are explained below.

1. Accepting deposits:-the bank collects deposits from the public. These deposits can be
different types, such as:-

 Savings deposits:-this type of deposits encourages savings habit among the public .the
rate of interest is low. At present it is about 5%p.a. withdrawals of deposits are allowed
subject to certain restrictions .this account is suitable to salary and wage earners .this
account can be opened in single name or joints names.
 Fixed deposits:-Lump sum amount is deposited at one time for a specific period. Higher
rate of interest is paid, which varies with the period of deposits. Withdrawals are not
allowed before the expiry of the period. Those who have surplus fund go for fixed
deposit.

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 Current deposits:-This type of account is operated by businessman .withdrawals are

freely allowed. No interested paid. In fact, there are services charges. The account holder
can get the benefit of overdraft facility.
 Recurring deposits:-This type of account is by salaried persons and petty traders. A
certain sum of money is periodically deposited into the bank. Withdrawals are permitted
only after the expiry of certain period .a higher rate of interest is paid.
 Lending of funds: - money received by commercial banks in the form of deposits is not
kept idle as it is lent at an interest to business establishments .commercial bank provides
loans and advances on the personal security on the security of some tangible assets.
 Creation of credit:-credit creation is one of the very important function of the
commercial bank, banks are basically manufacturing of money. Creation of credit means
expansion of bank deposits by giving loans and advances.
 Remittance fund: this is a primary function of commercial bank wherein they help their
customers in transferring funds from one place to another by issuing bank drafts, mail
transfer etc.

2. Granting of loans and advance: The bank advances loans to the business community and
other members of the public. The rate charged is higher than what it pays on deposits. The
different in the interest rates (lending rate and the deposits rate)

The types of bank loans and advances are:

 Overdraft: These Types advances are to current account holder. No separate account is
maintained. All entries are made in the current account. A certain amount is sanctioned as
overdrafts which can be withdrawn within a certain period of time say three months or so.
Interest is charged on actual amount withdrawn. An overdraft facility is granted against a
collateral security. It is sanctioned to businessman and firms.
 Cash credit: The client is allowed cash credit up to a specific limit fixed in advances.it
can be given to current account holder as well to other who do not have an account with
bank. Separate cash credit account is maintained. Interest is charged on the amount
withdrawn in excess of limit. The cash credit is given against the security of tangible

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assets and guarantees. The Advances is given for a longer period and a larger amount of
loan is sanctioned than that of overdraft.
 Loans: It is normally for short term say a period of year or medium term say a period of
five years. Now-a-day, banks do lend money for long term. Repayment of the money can
be in the form of installments spread over a period of time or in a lump sum amount.
Interest is charged on the actual amount sanctioned, whether withdrawn or not. The rate
of interest may be slightly lower than what is charged on overdrafts and cash credits.
Loans are normally secured against tangible assets of the company.
 Discounting of bill of exchange: The bank can advance money by discounting or by
purchasing bills of exchange domestics and foreign bills. The bank pays the bill amount
to the drawer or the beneficiary of the bill by deducting usual discount charges. On
maturity, the bill is present to the drawer or acceptor of the bill and the amount is
collected.

SECONDARY FUNCTIONS OF BANKS:-The bank performs a number of secondary

functions also called as Non-banking functions. These important secondary functions of bank are
explained below:

1. Agency functions: The bank acts as agents of its customers. The bank performs a
number of agency functions which includes:
 Transfer of fund: The bank transfer funds from one branch to another or from
one place to another.
 Collection of cheques: The bank collects the money of the cheques through
clearing section of its customers. The bank also collects money of the bills of
exchange.
 Periodic payments: on standing instructions of the clients, the bank makes
periodic payments in respect of electricity bill, rent, etc.
 Portfolio Management: The banks also undertake to purchase and sell the shares
and debentures on behalf of the clients and accordingly debits or credits the
accounts. This facility is called portfolio management.

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 Periodic collections: The bank collects salary, pension, dividend and such other
periodic collections on behalf of the client.
 Other agency functions: The acts as trustees, executors, advisers and
administrators on behalf of its clients. They act as representatives of clients to
deal with other bank and institutions.

2. General utility functions:-The also performs general utility functions, such as:-
 Traveller cheque: These cheques are usually useful for those who travel
frequently.
 Merchant banking: The merchant banking includes variety of services, which
are provided by non-banking agencies and professionals.
 Safe custody of valuable: the bank provides a locker facility for the safe custody
of valuable documents, gold ornaments and other valuables.
 Teller system: Under this, the teller is authorised to receive cash and make
payments up to limited amount without reference to the ledger balance or the
specimen signatures.
 Gift cheques: Banks also sell gift cheques against payments in cash or by debit to
accounts. The gift cheques are usually issued in fixed denominations. These
cheques are usually given as gift and these can be drawn even by non-account
holders.
 Credit cards: Credit cards are basically issued to current and savings accounts
holder, free of change. The holders of credit cards are able to purchase goods and
services up to a certain amount without making immediate payment.
 Tax consultancy: Banks provided consultancy services to enable the tax payers
to pay tax on time.
 Underwriting of securities: commercial banks take the job of underwriting a
portion of the issues of public undertaking. They also underwrite shares and
debentures of joint stock companies.
 Housing finance: directly advances loan to the parties or advance housing loans
indirectly to state housing boards or urban development corporation.

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 Factoring: It is an arrangement between banking institution and the business

concern.
 Leasing finance: Leasing is a method of financing equipment and machinery.
And its use by paying a predetermined amount called “rental” over a period of
time.
 Letter of credit: it refers to letter issued by the importers bank in favour of the
exporter authorising him to supply goods and draw bills up to a certain amount.
 Foreign exchange activities: Banks perform the following activities with respect
of foreign trade. 1) Important packing facilities, 2) Issue of solvency certificates,
3) Dissemination of trade information etc.
 Consultancy functions: Banks undertake a number of consultancy services like
helping small scale industries in providing information about availability of
assistances like marketing, technical, and financial etc.
 Social welfare programmes: It undertakes social welfare programmes, such as
adult literacy programmers, public welfare campaigns, etc.
 Other utility services: It acts as a referee to financial standing of customers. It
collects credit worthiness information about clients of its customers. It provides
market information to its customers, etc. It provides travellers cheques facility.

IMPORTANTANCE OF BANKING SYSTEM IN INDIA:

CLASSIFICATION OF BANKS:

Followings of the types of banks:

1. Savings banks: Savings banks are established to create saving habit among the people.
These banks are helpful for salaried people and low income groups. The deposits
collected from customers are invested in bonds, securities, etc. At present most of the
commercial banks carry the function of savings banks. Postal department also performs
the function of savings bank.

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2. Commercial banks: Commercial banks are established with an objective to help

businessmen. These banks collect money from general public and give short term loans to
businessmen by way of cash credits, overdrafts, etc. Commercial banks provide various
services like collecting cheques, bill of exchange, and remittances money from one place
to another place.
In India, commercial banks are established under companies act, 1956. In 1969, 14
commercial banks were nationalized by government of India. The policies regarding
deposits, loans, rate of interest, etc. Of these banks are controlled by the central bank.
3. Industrial banks /development banks:Industrial banks/development banks collect cash
by issuing shares & debentures and providing long term loans to industries. The main
objective of these banks is to provide long term loans for expansion and modernization of
industries. In India such banks are established on a large scale after independence. They
are industrial finance corporation of India IFCI, industrial credit and Investment
Corporation of India ICICI and industrial development bank of India IDBI.
4. Land Mortgage /land development banks: Land mortgage or land development banks
are also known as agriculture banks because these are formed to finance agricultural
sector. They also help in land development. In India, government has come forward to
assistant these banks.
5. Indigenous banks: Indigenous banks mean money and Sahukars. They collect deposits
from general public and grant loans to the needy persons out of their own funds as well as
from deposits. These indigenous banks are popular in villages and small towns.
6. Central /Federal/National banks: Every country of the world has a central bank. In
India, reserve bank of India, in U.S.A, Federal Reserve and in U.K. bank of England.
These central bank are the bankers of the other banks. They provide specialized functions
i.e. issue of paper currency, working as bankers of government, supervising and
controlling foreign exchange. A central bank is a non profit making institution. It does
not deal with the public but it deals with other banks.
7. Co-operative banks:In India, cooperatives banks are registered under the cooperative
societies act, 1912. They generally give credit facilities to small farmers, salaried
employees, small scale industries, etc. Cooperative banks are available in rural as well as
in urban areas. The functions of these banks are just similar to commercial banks.

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8. Exchange banks: Hong Kong bank, bank of Tokyo, bank of America are the examples
of foreign banks working in India. These banks are mainly concerned with financing
foreign trade.
 Remitting money from the country to another country.
 Discounting of foreign bills.
 Buying &selling gold &silver.
 Helping import &export trade.
9. Consumers bank: Consumers bank is a new addition to the existing type of bank. Such
banks are usually found only in advanced countries like U.S.A. and Germany. The main
objective of the bank is to give loans to consumers for purchase of the durables like
motor car, television set, washing machine, furniture, etc. The consumers have to repay
the loans in the easy installment.

BANKING SCENARIO IN INIDA

The Indian banking system consists of 20 public sector banks, 22 private sector banks, 44 foreign
banks, 44 regional rural banks, 1,542 urban cooperative banks and 94,384 rural cooperative
banks, in addition to cooperative credit institutions. As on March 31, 2019, the total number of
ATMs in India increased to 2,21,703 and is further expected to increase to 407,000 by 2021. As
of 2017, 80 per cent of the adult population has bank accounts. As on March 31, 2019 the
number of debit and credit cards issued were 925 million and 47 million, respectively.

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Following are the various functions of exchange banks:-

Central bank Nationalized Co- operative & associates Private banks

banks(public
sector)
Reserve bank of India Allahabad bank The co-operative bank Axis bank(formerly
(Central bank) and Andhra bank District co-operative bank UTI bank)
supreme monetary Bank of Baroda HDIL HDFC bank
authority Bank European association of co- Kotak Mahindra
of Maharashtra operative bank bank
Canara bank OP financial group Yes bank
Central bank of Credit Agricole Indus land bank
India DZ bank ING vysya bank
Corporation bank Central Co-operative bank Bank of Punjab
Dena bank National co-operative bank Bank of Rajasthan
IDBI bank Cosmos bank City union bank
Indian bank Punjab and Maharashtra co- Dhanalakshmi bank
India overseas operative bank Development credit
bank Co-operative party bank
Oriental bank of Federal bank
commerce ICICI bank
Punjab national Jammu Kashmir
bank bank
Syndicate bank Karnataka bank
Union bank of Karur vysya bank
India South Indian bank
UCO bank

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FUTURE BANKING PROPECTS IN INDIA:

The future forecast discuses the future prospects of different arms of banking industry including
rural banking ,financial cards ,mobile banking, role of technology in rural banking ,pension
funds, and the future course of action and strategies for pension fund industry to be taken at
macro level.

Information has been sourced from books, newspaper, trade journals, and white papers, industry
portals, government agencies, trade associations, monitoring industry news and developments,
and through access to more than 3000 paid databases.

The analysis methods include ratio analysis, historical trend analysis and linear regression
analysis using software tools judgemental foresting, cause and effects analysis.

The Indian banking system, with its extensive branch network spread across the length and
breadth of the country, has both depth and reach today .it is the spine of our entire financial
system and the institutional framework within which financial markets operate. An economy that
is growing at a steady clips of9% needs a vibrant and dynamic banking system to keep pace with
it.

COOPERATIVE BANKING:

INTRODUCTION OF COOPERATIVE BANK:

The cooperative bank in India started functioning almost 100 years ago. the cooperatives bank is
an important constituent of the Indian financial system ,judging by the role assigned to
cooperative, the expectations the cooperative is supposed to fulfill ,their number of officers the
cooperate bank operate. Through the cooperative movement had originated in the west, yet the
importance such banks have assumed in India is rarely paralleled anywhere else in the world .the
cooperative bank play an important role even today in rural financing. Their businesses in the
urban areas also have increased phenomenally in recent years due to the sharp increase in the
number of primary cooperative bank. The cooperative banks are registered under the cooperative
societies Act. They are registered by RBI. They are governed by the banking regulation act, 1949

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and banking laws (co-operative societies) act,1965, they finance the rural area under or: farming;
cattle; milk; hatchery; personal finance. They finance the urban areas under: self employment;
industries; small scale units; home finance; consumer finance; personal finance.

The co-operative movement was started in India in 1904 with the object of providing finance to
agriculture for productive purposes at low rate of interest, and there by relieving them from the
clutches of the money lender. A large number of agricultural credit societies which could not
mobilize funds by their own efforts.

MEANING:

People who come together to jointly serve their common interest often a co-operative society
under the co-operative societies act. When a co-operative society engages itself in banking
business, it is called a co-operative bank.

According to Henry Warf “co-operative is an agency which is in a position to deal with small
man on his own terms accepting the security, he has without drawing on the protecting of the
rich.

The co-operative banking sector consist of State co-operative banks (SEBs), district central co-
operative banks (DCCBs), and primary urban co-operative banks (UCBs). RBI issued the first
set of comprehensive guidelines for these banks in 1984. They finance individuals, co-operative
group, housing societies, housing boards and others who undertake housing projects for EWS,
LIGs, and MIGS.

AIMS OF CO-OPERATIVE BANK:

 To promote savings among members and thereby increase the supply of funds.
 To tap outside sources for the supply of funds.
 To reduce the cost of management through the honorary service.

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FEATURES OF CO-OPERATIVE BANK:

 Co-operative banks are based on the principles of mutual help.

 It is an association of persons, and not of capital.
 Service and not profit is the main motto of co-operative banks.
 The rate of interest is charged by co-operative banks is generally low.
 The co-operative banks basically rural oriented.

PRINCIPLES OF CO-OPERATIVE BANKING:

The important principles of co-operative banking are:

 Principle of co-operative and mutual help.

 Principle of thrift and savings.
 Principle of service and not profit.
 Principle of personalization of credit.
 Principle of ‘one man one vote’ in management.

THREE LEVELS OF CO-OPERATIVE BANKS ARE:

1. PRIMARY CREDIT SOCIETIES: These are formed at the village or town level with
borrower and non-borrower members residing in one locality.

2. CENTRAL CO-OPERATIVE BANKS: These banks operate at the district level having
some of the primary credit societies belonging to the same district as their member.

3. STATE CO-OPERATIVE BANKS: These are the apex (highest level) co-operative banks in
the respective states of the country. The money reaches the individual borrowers from the state
co-operative banks to the central co-operative banks and the primary credit societies.

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TYPES OF CO-OPERATIVE BANK:

Cooperative bank

Agriculture Nonagriculture

cooperativebank cooperativebank

1. AGRICULTURE CO-OPERATIVE BANKS: Agriculture banks are these co-operative

societies that are formed to provide cheap credit to the agriculturalists in rural areas. The
agricultural credit societies may be classified into: short term; long term; medium term.

In India the short term and middle term agricultural credit societies are rural bank at the bottom
level, the central state co-operative banks in the middle level and the state co-operative banks at
top level. The agricultural credit institution in India includes primary land, mortgage banks or
land development banks at the Taluk or district level and central land mortgage banks or land
development banks at the state level.

2.NON-AGRICULTURAL CO-OPERATIVE BANKS: The bank refers to credit societies

formed in towns and cities to provide short term credit to artisans, craft man, small traders,
middle income groups, such as office employees. Non-agricultural credits societies are mainly of
two types are:

1) Urban Banks:

Urban banks are credit societies formed in towns and cities to provide short term credit to
artisans, craft man small traders.

2) Salary Earner societies:

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Salary earner societies are credit societies formed in towns and cities to provide short term credit
to the employees of government officers, semi government officers and industrial and
commercial establishment.

MERITS OF CO-OPERATIVE BANKING:

The main benefits of co-operative banking are:

 The expansion of co-operative banking in rural areas as forced village money lender to
lower their rate of interest and lessen their mall practices.
 Co-operative banking is widely accepted as the only means of eradication poverty and
raising the standard of living of rural masses.
 With expansion of co-operative banking in rural areas. The hold village lender over rural
masses has been considerable loosened.

DRAWBACKS OF CO-OPERATIVE BANKING:

 The co-operative banking structure is weak. A top heavy structure of co-operative

banking is built on very flimsy foundation.
 The size of co-operative banks, particularly the size of agricultural primary credit
societies is very small.
 On account of limited funds as their disposal, co-operative banks are not Be grant
adequate to their members.
 Co-operative banks i.e., primary credit societies in rural areas suffer from stiff
competition from money lenders. This has also contributed to the unsuccessful working
of many village credit co-operative societies.

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CHAPTER-2

COOPERATIVE BANK PROFILE

2.1 HISTORY OF THE BANGLORE CITY COOPERATIVE BANK

LIMITED:-

“THE BANGLORE CITY COOPERATIVE BANK LIMITED “was the first urban
co-operative bank in the country started in April 06 1907 by Sri.Ramaswamy and others.

Source: Author name

The Bangalore city cooperative bank limited was established under the co-operative society act
bearing registration number 314/CS, dated 08.04.1907 from the registration of cooperative
societies in Karnataka and the license was granted by RBI no UBD/KA/642, dated 11.11.1986
for conducting the “banking business”.

The bank has 18 branches along with one administration office and all branches have been
computerised under the jurisdiction of Bangalore city cooperative cooperation Bangalore
development authority and Bangalore urban &peripheral areas.

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Trade mark of “The Bangalore city cooperative bank limited”

In consideration of the application submitted to the Government of India to get registered the
above image of goddess Lakshmi as trademark as per the trade mark act of 1959, sec 23(2),
rule62 (1) trade mark No 943843 dated 31-7-2000 the government approved and registered the
above image as a trademark and has given letter of approval on 15-03-2008.

2.2 NATURE OF BUSINESS CARRIED

The business carried by the bank is generally related with providing short term and long term
loans .it also accepts deposits from the public .BCCB also provides loans for processing ,markets
and consumers as well as agriculture in Karnataka and working capital loans to state level and
national level institutions. They offer all types of banking services to customers like deposities,
loans, DD, pay order. Bank guarantees .cheques collections facility, etc.

 Cash receipts.
 Cash deposits.
 Cash withdrawals.
 Sanction and disbursement of loan.
 Lockers facilities.
 Updating and issuing of new pass books and cheque books.
 Issuing demand draft.
 Issuing of gold coins.

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2.3 VISSION, MISSION of the bank

VISSION

 Accepting deposits for the purpose of promoting savings habit in the minds of the public
and the members
 The BCCB has vision to mobilize deposits Rs.1000 cores and raise advances portfolio to
Rs800 crores in the next years.
 To increase branch network to 26 branches.
 The BCCB believes that every individual from each strata society needs affordable,
relevant and quality banking to fulfil personals aspirations.
 The vision of the bank is to constantly strive towards meeting these social needs by
providing world –class infrastructure for cooperative banking

MISSION

 In fulfilment of its vision ,the bank commits itself to a mission to excel in all its activities
to create an atmosphere of effective banking, induce healthy challenges and competitions
encourages sustainable accomplishments and ensure enriching rewards to everyone
members, staff ,associates and the society at large .
 To meet the growing aspiration of the customers of the bank in particular and other in the
general in the changing environment.
 To bring about total customers satisfaction by the providing quality services.
 To meet the economic and career aspiration of the employees of the bank.
 To promote the effectiveness of the credit and reduce the in granting a credit through
careful and continuous supervision.

2.4 CORPORATE MISSION:

 To meet the growing aspirations of the customers of the bank in particular and others in
general in the changing environment.
 To bring about total customers satisfaction by providing quality services.

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 To promote socio economic development and employment as national and social

objectives.
 To meet the economic and career aspirations of the employees of the bank.

2.5 PRODUCTS /SERVICES PROFILE :- The main operation of the bank (customer
services)

 Withdrawals &Cash receipts.

 Sanctions loan &Lockers facility.
 Clearing cheques &Pay order.
 Updating pass book & Issuing new cheque book.
 Issuing demand draft &Telegraphic transfer.
 Opening of fixed deposit account.

The bank was incorporated on 1907 and it was converted on April 6th on the time of Mysore
Empire. it was established under cooperative society act bearing registration no 314/cs, from the
registered of cooperatives societies in Karnataka .the bank has got “Best city cooperative bank
”award on the time of Shriman maharaja Shri kanteerava Narasimharajaodeyar and it also got
“good cooperative bank in the state” award in the year 2002 and 2004.the bank has 18 branches
along with one administrative office and all the branches have been computerized under the
jurisdiction of Bangalore city corporation ,B.D.A, Bangalore urban and peripheral areas.

Shriman maharaja Shri kanteerava Narasimharajaodeyar has awarded “ The best city co-
operative Bank” the for its excellent services; in the year 1926, 1927 and 1928 and in the year
2002 and 2004 the bank got the “ Best co-operative Bank “ from the state govt. For the purpose
of providing banking services to its member and depositors nearby their residence only. The
bank along with its head office and administrative offices at chamarajapet, have started 18 of its
branches at various areas in the city.

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All these branches have showed a significant progress. In the collection of deposits and
providing loans.In order to bring professionalism in the banking and in the interest of depositors,
the bank has adopted capital to Risk Assets Ratio (CRAR) under the guidelines of R.B.I.

The banking has not limited its services in banking but also has contributed for the natural
calamities like Tsunami, Earth quakes, Floods and it has also donated for building a word in
Bangalore cancer hospital.On 06/04/07 bank completed its 100yrs of excellence in the banking
service. In the recent days there is a serve competition among co-operative, nationalized and
other commercial banks to save its customers keeping these in view, the bank has fully
computerized its transaction and has planned to start core Banking facility in the coming days.

In the next 5yrs, has the to increase its shares and funds to Rs.100 crores. It as also got the plans
of getting recognized as the schedule bank by the reserve bank of India.

Following are some of the Rules and Regulations provided by the bank for the benefit of the
customers:

 Avail nomination facilities to accounts holders including saving bank account and current
account holder
 Bank will exchange mutilated currency notes as per RBI guidelines.
 Bank will give standing instructions for the payment of bills, rents, interest, insurance etc.
 Bank provides required and important guidelines to the lockers holders.

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YEARS AREAS/CITIES

1907 Head office Chamarajapet, Bangalore

1980 Vijayanagar, Bangalore

1981 Jayanagar 9th block, Bangalore

1983 Indiranagar, Bangalore

1988 Chamrajapet ( west), Bangalore

1992 Shantinagar, Bangalore

1994 Sanjaynagar,Bangalore

1994 Mahalakshmipuram, Bangalore

1995 Padmanabnagar, Bangalore

1996 Koramangala, Bangalore

2004 Avalahalli, Bangalore

2004 R.T.Nagar, Bangalore

2009 Jnanajyothinagar, Bangalore

2010 H.R.B.R. Layout, Bangalore

2010 Krishnarajapuram. Bangalore.

2012 Ramanagara Town, Ramanagara town.

2012 T. Dasarahalli, Bangalore.

2013 Kuvempunagar, (Mysore)

2013 Hosur road, electronic city.

THESE ARE BRANCHES AS FOLLOWS:

Source: Bank reference book

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2.6 RESOURSE MOBILIZITIONS:

1. Customer profile:

The bank has maintained a profile important customer and the branch as achieved to a greater
extend by getting new connections from other institutions and individuals.

2. Popularity of deposit scheme:

The different deposits schemes like fixed deposits, Rajatha cash certificates Arunodhaya cash
certificates Nirathara Yogaksma deposits has becoming very popular.

3. Customer services:

The bank is staving these sachem by and loge the services provided by the bank is good and this
are no complaints from the curt services is in Bangalore city cooperative bank is the one of the
reasons for attracting more customers meeting over the recommendation by sub committees and
board meeting.

4. Deployment of fund:

As the bank is situated in residential area the lending rate has been less but by the introducing
new and attractive schemes like rajatha cash certificates etc.The lending has been increasing. The
bank is also making sin cue efforts to bring a significant change in the deployment of funds.

5. Recovery:

The branch is giving it most importance for the recovery for the overdue loans. This is
implemented with the help of the sale officer. The bank has obtained the services of sale officer
with the co-operation of the other three co-operative banks under the law.

6. Human resource

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Staff relationship in the bank is excellent. A sub-committee monitors the day-to-day affairs in the
head officer. This sub-committee corrects the mistakes and gives its previous suggestions to the
staff member to provide excellent service.

7. Profitability:

Sincere effect a made to recover non-performing assets so as to realise un-changed interest cash
remittance is also affected by monitoring the cash holding of the branch with the given
prescribed limits.

The bankers prescribed certain times norms on banking transaction for the benefit of the
customers. There norms a given below.

 Pass book will be updated immediately within 24 hours.

 Customers can purchase a demand draft within 30 minutes.
 Nomination facility is made available.
 Cheque books one issued on demand from depositors.

2.7 BANK DECLARATION:

 To provide professional, efficient, courteous, diligent and speedy services in the matter of
retail lending.
 Not to discriminate on the basis religion, casts, sex, descent or any of them.
 To be fair and honest in advertisement and marketing of loans products.
 To provide customer with accurate and timely discloses of terms costs rights and
liabilities as regard loans transactions.
 If sought to provide much assistance or advice to customer applying for loans.

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 To attempt in good faith to resolve any disputes or differences with customer by setting
up complaint redresses cells within the organisation, and comply with all the regulatory
requirements in good faith.
 To spread general awareness about potential risks contracting loans and encourages
customer to take an independent financial advice and not out only on representation from
the bank.

2.8 BANK ADMINISTRATIVE COMMITTEE:

President – Sri Avalalli Chandrappa R

Vice president- Shri Anjanappa.

2.9 ORGANISATIONAL CHART:

Board of directors

General Manager

Deputy General Manager

Manager

Accountant

Assistant Accountant

Senior Assistant Class W employees

Junior Assistant
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Source: Bank reference book

2.10 HIREARCHY OF CO-OPERATIVE BANKS:

Reserve Bank of India

Re

Agricultural & Rural

State co-operative Banks State Land Development Urban co-operative Banks

Banks

District level (central) co- Central Land

operative Banks Development Bank

Primary Agriculture
Credit Societies
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Primary Land Branches of SLDB’S

Development Bank

Source: Bank reference book

2.11 OBJECTIVES:

 To raise the deposits of the bank to more than the 400crores.

 To providing training facility for the staff bank.
 To get license from the RBI for commencing new branches in T Dasarahalli and
Banaswadi.
 Presently bank has 13 branches in Bangalore city. The main branch providing ATM
facility.

2.12 COMPITITOR’S INFORMATION:

Co-operative bank is facing competition from the commercial banks. They are not providing core
banking facilities ,which make the customers to make banking transaction easy .the bank is yet to
adopt this facility .so core banking provides are main competitor to the bank.

List of competitors:

 ICICI bank
 HDFC bank
 Axis bank
 Karnataka bank

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2.13 FUTURE GROWTH AND PROSPECTIVE:

The bank has 18 branches along with one administrative office under the jurisdiction of
Bangalore city co-operation, Bangalore development authority and Bangalore urban and
peripheral areas.

The banks want to increase its operations by setting up its branches all over the city.

 To raise the deposits of the bank more the 375corers.

 To raise credit facility to more than 310corers.
 To increase net profit of the bank up to 8corers.
 Improve customer’s services by adopting latest technologies.
 To take training programmes for the staff improving the skills.

2.14 SOCIAL COMMITMENT:-

 A part from banking used activities our bank is also committed to social responsibilities
also:
 The bank used to donate generously to prime ministry relief fund/chief ministry relief
fund of the states whenever natural calamities hit and people suffered.
 Bank donated to build a ward in the Kidwai institute of oncology, Bangalore.
 Bank organized free eye and medical check –up camps for the members and general
public.
 The bank is encouraging merit student to do better by identifying and awarding them.
 The bank also used to honour best customers of the bank.
 The bank also organising customers meet to have a cordial relationship with them.

2.15 ACHIEVEMENTS:

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Bank awarded as best urban co-operative bank of the then Mysore province for the years 1923,
1927&1928 with meritorious certificate and shield from the then Yuvaraja of Mysore Sri . Sri.
Sri. Kanteerava Narasimharaja Odeyar Bahadur. Also awarded as best urban cooperatives bank
by the government of Karnataka for the years 2001-02.2003-04,&2007-08.

MILE STONES:

1907 to 1950:-Sri Ramaswamaiah and other co-operators during the beginning of the
cooperative movement founded “The Bangalore city cooperative bank “which was initially
started as a cooperative society in the year 1905 and later converted as urban cooperative bank in
the year 1907.

Awarded as best urban cooperative bank and honoured with certificate and rolling shield during
the year 1926, 1927,&1928 by the erstwhile maharaja of Mysore. Sri Kanteerava Narasimharaja
Wodeyar Bahadur. Bank celebrated silver jubilee in the year 1932.

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1950 to 1975:- bank celebrated golden jubilee in the year 1957 and Diamond jubilee in the year
1967.

1975 to 2000:-

 Bank celebrated platinum jubilee in the year 1977.

 First branch of the bank was opened during in Vijaynagar on 24-02-1980.
 8 more branches opened during the period.

Jayanagar 9th block 25-01-1981

Indiranagar 09-12-1983

Chamarajapet West 07-02-1988

Shantinagar 03-0901992

Mahalakshmipuram 07-07-1994

Sanjayanagar 11-08-1994

Padmanabhanagar 04-09-1995

Koramangala 30-10-1996

 Bank operations were computerized in the year 1993.

 Deposits of the bank have crossed 50.00crores in the year 1997.
 Deposits of the bank have crossed Rs.150.00crores in the year 2000.

2000 ONWARDS:-

 Deposits of the bank have crossed Rs.200, 00crores in the year 2002.
 Migrated to windows based banking software in the year 2001.
 Avalalli branch opened on 16-01-2002.
 R.T.Nagar branch opened on 15-02-2002.

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 Awarded as best urban cooperative bank by the government of Karnataka. In the year
2001-02,2003-04&2007-08.
 Bank celebrated centenary celebrations on 31-03-2007.
 Jnanajyothi Nagar branch opened on 22-03-2009.
 Total deposits have crossed Rs .400crores and loans and advances have crossed Rs.300
crores in the year 2009.
 Total deposits have crossed Rs.500crores and loans and advances have crossed
Rs.400crores in the year 2010.
 Total businesses of the bank have crossed Rs.1000crores.
 BDA allotted a piece of land to the bank at Hosur.
 Bank has purchased site at nagarabhavi from BDA.
 RBI granted permission to open 3 more branches at HRBR Layout, Krishnarajapuram
and at Ramanagara town.
 Bank has extended its area of operation to the whole state of Karnataka in the year 2009.

2.16 LOANS OFFERED BY BANK:

o Vehicle loan, Immovable property loan & Security loan.

o Staff loan, Staff festival loan & Business loan.
o Housing loan, Jewels loan, &Industrial loan.
o Long term loan, Construction loan & Staff consumption loan.

 INTEREST RATES ON DEPOSITS:

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PERIOD OF DEPOSITS INTEREST RATE

General Senior citizen

30 days &above upto45 days 5.50% 6,00 %

46 days & above up to 90 days 6.00% 6.50%

91days & above180 up to days 7,00% 7,50%

181days & above up to 364days 8.00 % 8.50%

1year & above up to 3 years 10,25% 10.75%

Above 3 years & up to 5 years 10.00% 10.50%

Above 5 years 9,25% 10.00%

CHAPTER-3

RESEARCH METHODLOGY:

The study is basically on the analysis of balances sheets of Bangalore city co-operatives bank
limited. Therefore, the study is considered to be descriptive and analytical in nature. To do a
research it is necessary to anticipate all the steps which must be undertaken if the project is

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completed successfully it consist of inter related activity such as identifying research problem,
description of research design and sources of collecting data.

3.1 TITLE OF THE STUDY:

A study on “LOANS AND ADVANCES” with references to “BANGLORE CITY

COOPERATIVE BANK LIMITED”.

3.2 STATEMENT OF THE PROBLEM:

A healthy banking system is essential for an economy trying to achieve good growth and
development and to remain stable in an increasing the competitive global environment in present
scenario getting required funds from banks and financial institution is difficult task.

Objectives of study

 To study the structure of BCCB in Bangalore.

 To analyse the factor and composition of loans and advances with references to 5 years.
 To study loan lending scheme adopted by Bangalore city cooperative bank limited
 To understand the problem faced by them in recovery of loans and advances.
 To study and evaluate bank polices affecting the performance.
 To give meaningful conclusion drawn out of the study and constructive
suggestion for growth and prosperity of Bangalore city cooperative bank limited.

3.4 SCOPE OF THE STUDY:

 The study has been conducted in the Bangalore city cooperative bank.
 It includes understandings the short term, medium term and long term loans of
Bangalore city co-operative bank limited.
 Study is an attempt to find out total magnitude of the loans and advances of the
Bangalore city co-operatives bank limited.

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 Study aims to analyze the recovery strategies in improving the profitability of the
Bangalore city co-operative bank limited.

Research Methodology adopted for study

The study has been conducted with references to the data related to BCCB. The study is an
exploratory and analytical in nature with an attempt to explore the performance of Loans and
advances with special reference to BCCB. This bank has been studies with that is the largest co-
operative bank in the city of Bangalore. The study examines the Analysis of loans and advances
of Cooperative bank and performance of BCCB for the period of 2015-16 to 2019-20 for
evaluating the performance of bank

3.5 SOURCE OF DATA COLLECTIONS:

The research for answer to research question is called of data .data are facts and other relevant
materials ,past and present, serving as basic for study and analysis.

DATA OF TWO TYPES THEY ARE:

 Primary data.
 Secondary data.

Primary data: Primary data are those which are collected for the first time .Primary data
collected by interviewing certain employs, managers who were chosen on the basic of their in
depth knowledge and work experience in the bank . The bank interview was informal in gain as
much as possible.

Primary data collected for study:

1. Discussion with bank manager and employees

2. Observation on bank activities

Secondary data: Secondary data means ,data are already available that refers to the data which
have been collected and analyzed by someone and can save the time of the researcher, secondary

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data may be available in the form of company records, departments of finance in Karnataka state
cooperative agricultural and rural development bank limited

The secondary data sources are:

 Banks annual reports.

 Brochures, annuals, libraries, registers, auditors.
 Articles and Research papers
 Websites.

3.6 REFERNCE PERIOD:

The study collected at Bangalore city co-operatives bank limited is of fifty two days (from 28-
11-2019 to 05 -02-2020)

3.7 LIMITATION OF THE STUDY:

 The study is limited to extent or information provided by the bank.

 The collection of data analysis is registered to Bangalore city cooperative bank limited
only.
 Maximum information is collected through secondary data.
 Much of the information related to the financial activities has not been gathered because
of the bank is not ready to disclose them.

CHAPTER-4

DATA ANALYSIS AND INTERPRETATON

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TABLE 4.1

SHOWING THE TOTAL DEPOSITS

SL.NO YEAR AMOUNT IN TREND %

CRORES
1 2015-16 1521.37 100

2 2016-17 1755.06 115

3 2017-18 1933.57 127

4 2018-19 2049.35 134

Analysis

This above table represents the total deposits of different years. In the year 2015-16 the total
deposits were 1521.37cr. From the year 2016-17 to 2018-19 it increased to 2049.35cr

FIGURE 4.1

GRAPH SHOWING THE TOTAL DEPOSITS

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TREND%
160

140

120

100

80

60

40

20

0
2015-16 2016-17 2017-18 2018-19

Interpretation

The above graph shows the percentage of total deposits position has increased from the year. The
year 2015-16 has been taken as the base year with 100%, 2016-17 it is 115%, in the year 2017-
18 it is 127% and in the year 2018-19 it is 134%. This shows an increase trend in percentage of
total deposits.

TABLE 4.2

SHOWING THE FIXED DEPOSITS

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SL.NO YEAR AMOUNT IN TREND %

CRORES
1 2015-16 597 100

2 2016-17 672 112

3 2017-18 723 121

4 2018-19 808 135

Analysis

The above table represents the total fixed deposits of different year. In the year 2015-16 the total
fixed deposits were 597cr, in the year 2016-17 the total fixed deposits were 672cr, in the year
2017-18 and 2018-19 the total fixed deposits were 723 and 808 cr.

FIGURE 4.2

GRAPH SHOWING TOTAL FIXED DEPOSITS

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TREND %
900

800

700

600

500

400

300

200

100

0
2015-16 2016-17 2017-18 2018-19

Interpretation

The above graph shows the percentage of total fixed deposits position has increased year after
year. The year 2015-16 has taken as the base year with 100%, In the year 2016-17 It has
increased to 112% and in the year 2017-18 and 2018-19 with and increase percentage of 121%
and 135%. This shows an increase trend in percentage of fixed deposits.

TABLE 4.3

SHOWING THE SAVINGS BANK DEPOSITS

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SL.NO YEAR AMOUNT IN TREND%

CRORES
1 2015-16 225.7 100

2 2016-17 286 126

3 2017-18 279 124

4 2018-19 289 128

Analysis

The above table represents the total savings bank deposits of different years. In the year 2015-16
the saving deposits were 225.7cr, in the year 2016-17 the savings deposits were 286cr, in 2017-
18 and 2018-19 the savings deposits were 279cr and 289cr.

FIGURE 4.3

GRAPH SHOWING THE TOTAL SAVINGS DEPOSITS

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TREND %
140

120

100

80

60

40

20

0
2015-16 2016-17 2017-18 2018-19

Interpretation

The above graph shows that the savings bank deposit has increased 126% from 2015-16 to 2016-
17 and there is a decrease by 124% in 2017-18 and again showing an increase by 128% in the
year 2018-19. This shows a fluctuating savings bank deposit.

TABLE 4.4

SHOWING THE CURRENT DEPOSITS

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SL.NO YEAR AMOUNT IN TREND %

CRORES
1 2015-16 2.15 100

2 2016-17 4.75 220

3 2017-18 5.15 239

4 2018-19 5.47 254

Analysis

The above table represents the total current deposits of different years. In the year 2015-16 the
total current deposits were 2.15cr, in the year 2016-17 the total current account deposits were
4.75cr, in the year 2017-18 the total current account deposits were 5.15cr, in the year 2018-19
the total current account deposits were 5.47cr.

FIGURE 4.4

GRAPH SHOWING THE CURRENT ACOUNT DEPOSITS

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TREND %
300

250

200

150

100

50

0
2015-16 2016-17 2017-18 2018-19

Interpretation

The above graph shows the growth of current deposits. The year 2015-16 is taken as the base
year with 100% and there is a drastic increase in current deposit from the year 2016-17 to 2018-
19 by 220%, 239% and 254%.

TABLE 4.5

SHOWING THE TOTAL INVESTMENTS

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SL.NO YEAR AMOUNT IN TREND %

CRORES
1 2015-16 648.22 100

2 2016-17 660.59 101

3 2017-18 785.55 121

4 2018-19 889.50 137

Analysis

The above table represents the total investments of different year. In the year 2015-16 the total
investments is 648.22 in the year 2016-17 the total investments were 660.59 in the year 2017-18
the total investments were 785.55 and in the year 2018-19 the total investments were 889.50.

FIGURE 4.5

GRAPH SHOWING TOTAL INVESTMENTS

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TREND %
160

140

120

100

80

60

40

20

0
2015-16 2016-17 2017-18 2018-19

Interpretation

The above graph represents the total investments of different year. In the year 2015-16 the total
investments were 648.22cr, in the year 2016-17 the total investments were 660.59, in the year
2017-18 and 2018-19 the total investments were increased to 785.55cr and 889.50cr.

TABLE 4.6

SHOWING THE TOTAL LOANS AND ADVANCES

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SL.NO YEAR AMOUNT IN TREND %

CRORES
1 2015-16 998.20 100

2 2016-17 1233.27 123

3 2017-18 1300.23 130

4 2018-19 1336.53 133

ANALYSIS-

The above table represents the total loans and advances of different years. In the year 2015-16
the total loans and advances were 998.20cr, in the year 2016-17 the total loans and advances
were 1233.27cr, in the year 2017-18 and 2018-19 the total loans and advance were 1300.23cr
and 1336.53cr.

FIGURE 4.6

GRAPH SHOWING THE TOTAL LOANS AND ADVANCES

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TREND %
140

120

100

80

60

40

20

0
2015-16 2016-17 2017-18 2018-19

Interpretation

The above graph shows the percentage of total loans and advances which has increased year by
year. The year 2015-16 is taken as base year with 100%. In the year 2016-17 it has increased by
123% and in the year 2017-18 and 2018-19 the loans and advances increased by 130% and 133%
respectively.

TABLE 4.7

SHOWING THE LONG-TERM LOANS

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SL.NO YEAR AMOUNT IN TREND %

CRORES
1 2015-16 654.15 100

2 2016-17 559.70 85

3 2017-18 454.35 69

4 2018-19 395.51 60

Analysis

The above table represents the long-term loans of different years. In the year 2015-16 the long-
term loans were 654.15cr, in the year 2016-17 the long-term loans were 559.70cr, in the year
2017-18 and 2018-19 the long-term loans were 454.35cr and 395.51cr.

FIGURE 4.7

GRAPH SHOWING LONG TERM LOANS

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TREND %
120

100

80

60

40

20

0
2015-16 2016-17 2017-18 2018-19

Interpretation

The above graph shows the long- term loans which varies year by year. The year 2015-16 is
taken as base year with 100%, the long-term loans have decreased in the subsequent years i.e. in
2016-17 it was decreased by 85%, in year 2017-18 it again decreased by 69% and in the year
2018-19 it again decreases by 60%.

TABLE 4.8

SHOWING LONG-TERM HOUSING -LOAN

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SL.NO YEAR AMOUNT IN TREND %

CRORES
1 2015-16 5.53 100

2 2016-17 36.03 651

3 2017-18 52.27 945

4 2018-19 61.99 1120

Analysis

The above table represents the long-term housing loan. In the year 2015-16 the long term hosing
loan were 5.53cr, from the year 2016-17 to 2018-19 the long term housing loan increased
drastically with 61.99cr.

FIGURE 4.8

GRAPH SHOWING LONG-TERM HOUSING LOAN

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TREND %
1200

1000

800

600

400

200

0
2015-16 2016-17 2017-18 2018-19

Interpretation

The above graph shows that there is a drastic change in long term housing loans. The year 2015-
16 is taken as base year. From the year 2016-17 to 2018-19 there is a increase in long term
housing loan by 1120%.

TABLE 4.9

SHOWING THE TRANSPORT OPERATOR LOAN

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SL.NO YEAR AMOUNT IN TREND %

CRORES
1 2015-16 1.97 100

2 2016-17 1.76 89

3 2017-18 1.57 79

4 2018-19 1.37 69

Analysis

The above table shows the transport operator loan. In the year 2015-16 the transport operator
loan is 1.97cr, in 2016-17 it is 1.76cr, in 2017-18 it is 1.57cr and in 2018-19 it is 1.37cr
respectively.

FIGURE 4.9

GRAPH SHOWING TRANSPORT OPERATOR LOAN

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TREND %
120

100

80

60

40

20

0
2015-16 2016-17 2017-18 2018-19

Interpretation

The above graph shows the transport operator loan. Here the year 2015-16 is taken as base year
with 100%. The bank has sanctioned more loans in the year 2015-16. From the year 2016-17 the
vehicle loan was decreased.

TABLE 4.10

SHOWING BUSINESS LOAN

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SL.NO YEAR AMOUNT IN TREND %

CRORES
1 2015-16 4.03 100

2 2016-17 4.76 118

3 2017-18 5.77 143

4 2018-19 6.52 161

Analysis

The above tale represents the business loan of different years. In the year 2015-16 the business
loan was 4.03cr, in 2016-17 it was 4.76cr, in 2017-18 it was 5.77cr, and in the year 2018-19 it
was 6.52cr.

FIGURE 4.10

GRAPH SHOWING BUSINESS LOAN

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TREND %
180

160

140

120

100

80

60

40

20

0
2015-16 2016-17 2017-18 2018-19

Interpretation

The above graph shows the business loan. the year 2015-16 is taken as base year with 100%,
from the year 2016-17 to 2018-19 there is a increase in bank lending business loans by 161% for
the purpose of business transactions improvements.

TABLE 4.11

SHOWING FESTIVAL ADVANCES

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SL.NO YEAR AMOUNT IN TREND %

LAKHS
1 2015-16 4.48 100

2 2016-17 4.5 100.4

3 2017-18 3.5 78

4 2018-19 3.00 67

Analysis

The above table shows the festival advances of different years. In the year 2015-16 the festival
advance was 4.48L, in the year 2016-17 the festival advance was 4.5L, in the year 2017-18 and
2018-19 the festival advances were 3.5L and 3L.

FIGURE 4.11

SHOWING THE FESTIVAL ADVANCE.

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TREND %
120

100

80

60

40

20

0
2015-16 2016-17 2017-18 2018-19

Interpretation

The above graph shows the festival advance given to the employees at the bank. The year 2015-
16 is taken as base year with 100%, there is only slight increase in festival advance in the year
2016-17 by 100.4% and in the remaining subsequent years i.e. 2017-18 and 2018-19 the festival
advance has decreased with 78% and 67% respectively.

TABLE 4.12

SHOWING JEWEL LOANS

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SL.NO YEAR AMOUNT IN TREND %

LAKHS
1 2015-16 27.66 100

2 2016-17 21.56 78

3 2017-18 22.46 81.20

4 2018-19 20.69 75

Analysis

The above table shows the jewel loans of different years. In the year 2015-16 the jewel loan was
27.66L, in the year 2016-17 the jewel loan was 21.56L, in the year 2017-18 and 2018-19 the
jewel loan was 22.46L and 20.69L.

FIGURE 4.12

GRAPH SHOWING JEWEL LOANS

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TREND %
120

100

80

60

40

20

0
2015-16 2016-17 2017-18 2018-19

Interpretation

The above graph shows the jewel loans. In the year 2015-16 it the bank has given more jewel
loans. The year 2015-16 is taken as base year with 100%. In the year 2016-17 the jewel loans
decreased by 78%, and in 2017-18 there is a slight increase in jewel loans by 81% compared to
2015-16, in 2018-19 the jewel loans again decreased by 75%.

TABLE 4.13

SHOWING STAFF VEHICLE LOANS

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SL.NO YEAR AMOUNT IN TREND %

LAKHS
1 2015-16 54.12 100

2 2016-17 61.89 114

3 2017-18 51.94 95

4 2018-19 66.11 122

Analysis

The above table shows the staff vehicle loan of different years. In the year 2015-16 the staff
vehicle loan was 54.12L, in the year 2016-17 it was 61.89L, in the year 2017-18 it was 51.94L,
in the year 2018-19 it was 66.11L.

FIGURE 4.13

GRAPH SHOWING STAFF VEHICLE LOAN

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TREND %
140

120

100

80

60

40

20

0
2015-16 2016-17 2017-18 2018-19

Interpretation

The above graph shows the staff vehicle loan. The year 2015-16 is taken as a base year with
100%. The staff vehicle loan has increased in the year 2016-17 by 114% , and decreased in the
year 2017-18 by 95%, in the year 2018-19 has again increased by 122%.

TABLE 4.14

SHOWING THE OVERDRAFT OF CURRENT ACCOUNTS

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SL.NO YEAR AMOUNT IN TREND %

CRORES
1 2015-16 43.17 100

2 2016-17 56.28 130

3 2017-18 61.28 142

4 2018-19 52.87 122

Analysis

The above table shows the overdraft on current accounts of different years. In the year 2015-16
the od of current account is 43.17cr, in the year 2016-17 it is 56.28, in the year 2017-18 it is
61.28cr, and in the year 2018-19 it is 52.87cr respectively.

FIGURE 4.14

GRAPH SHOWING THE OD ON CURRENT ACCOUNTS

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160

TREND %
140

120

100

80

60

40

20

0
2015-16 2016-17 2017-18 2018-19

Interpretation

The above graph represents the total overdraft on current accounts. The year 2015-16 is taken as
base year with 100%. There is high overdraft in the year 2017-18, which show that there was a
constant raise in loans sanctioned, as there is a higher demand for loans.

TABLE 4.16

SHOWING THE NON-PERFORMING ASSETS

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SL.NO YEAR AMOUNT IN PERCENTAGE

LAKHS
1 2015-16 7013.92 100

2 2016-17 8473.81 121

3 2017-18 9029.55 129

4 2018-19 7763.48 110

Analysis

The above table shows the non-performing assets of different years. In the year 2015-16 the non-
performing assets is 7013.92L, in the year 2016-17 it is 8473.81L, in the year 2017-18 it is
9029.55L and in 2018-19 it is 7763.48L respectively

FIGURE 4.16

GRAPH SHOWING NON-PERFORMING ASSETS

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TREND %
140

120

100

80

60

40

20

0
2015-16 2016-17 2017-18 2018-19

Interpretation

The above graph is the growth of non-performing assets of different years. The year 2015-16 is
taken as the base year, in the year 2016-17 and 2017-18 the non-performing assets increased by
121% and 129% and in the year 2018-19 the non-performing assets decreased by 110%
respectively.

CHAPTER-5

FINDINGS AND RECOMMENDATIONS

5.1 Findings

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 From the last 4 years data, we can find that the growth of loan has increased drastically from
998 crores to 1336.53 crores. This shows that the bank source of income has increased in last
4 years.

 The long-term loans issued by Bangalore city co-operative bank has been decreased year by
year gradually i.e. from 654.16 crores to 395.51 crores.

 The housing loans granted by the Bangalore city co-operative bank has a continuous and
massive growth in 4 years from 5.53 crores to 61.99 crores. This increase in housing loans, as
the risk involved in housing loan is less as compared to other loans.

 The investments made by Bangalore city co-operative bank has increased gradually year by
year from 648.22 crore to 889.50 crores in 4 years. Here the bank is trying to build wealth, as
investment involves higher returns with higher risk.

 There is an increase in overdraft on current account from the data of 4 years from 40.32
crores to 61.5 crores. Apart from getting interest rate, the bank will also get business
overdraft fees. And also, bank has an authority to call of business overdraft at any time.

 The staff vehicle loan is fluctuating year by year, it shows an increase of staff vehicle in the
year 2016-17 and 2018-19.

 The jewel loans are sanctioned by the bank against the pledge of gold ornament. The jewel
loans have continuously decreased year by year. In the year 2015-16 it is 27.66 lakhs and
reduced to 20.69 lakhs in the year 2018-19.

 The business loan provided by the bank has a continuous growth. In the year 2015-16 it is
4.03 crores and it increased to 6.52 crores in 2018-19. The bank helps in the economic
development of the country by providing loans.

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 The transport operator loan of the bank is decreased year by year from 1.97 crores to 1.37
crores.

 The non -performing assets of the bank has a continues increase from the year 2015-16 to
2017-18 by 7013.92 lakhs to 9029.55 lakhs, and has decreased to 7763.48 lakhs in the year
2018-19 which shows the good performance of the bank.

 The net profit of the bank has continuously increased from 16.42 crores to 29.89 crores, this
shows that the bank is well managed and also indicates the future profitability.

5.2 Recommendations

 The bank should verify the credit worthiness of the customers at the time of granting loans
which helps in reducing the non-performing asset (NPA) problems in the bank.

 KYC should be properly maintained by the bank to reduce their NPA.

 The bank has to introduce many more loan schemes which will be useful to middle- and
lower-income groups.

 The bank must weigh the possibility of profits versus the risk of defaults by gathering much
information as possible about the borrower to avoid risk.

 The bank has to maintain a positive relationship with customers and to make borrowers
aware of the benefits they can reap from the bank.

 The bank should try to increase jewel loans, as these are secured loans.

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 Attractive and competitive interest rates should be adopted since it is the main factor
considered for taking loans by the customers.

 A suggestion is made to bank to expand its business by opening up new branches to extend
the banking facilities to more number of customer.

 It is advisable to provide ATM facilities, credit card facilities and online banking facilities to
the customers

Conclusion:

In this study an analysis on loans and advances of Bangalore City Cooperative Bank has been
made.The study reveals that the firm has grown substantially with respect to its loans and
advances.

The contribution of various loans and advances scheme has helped the bank to increase its
profitability, the bank can make an effective utilization of its deposits by making a proper
balance between investments in government securities and introducing new attractive loan
schemes to its customer there by concern the bank into profit center.

The Bangalore city cooperatives bank has to come up with the ever increasing competition with
the other banks, it is advisable to introduce online banking facilities and ATM facilities to attract
more customers.

The overall performance of the Bangalore city co-operative bank is satisfactory and also the bank
playing a dominate role in the co-operative banking industry. So, according this study on BCCB
is growing moderate and satisfactory.

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BIBLIOGRAGHY

Books referred:

Authors Title Publications

Reddy Law and practice of

Himalaya publishers
Appanaiah banking
Shashi, k. Gupta
Financial market &
Nisha agarval Kalyani publishers
services
Neeti gupta

M.Y.khan Financial management Kalyani publishers

Theory &practice of
B.S.Raman United 5th edition
banking

Annual reports of bank

Broachers, manuals, circular of the bank

www.google.com

www.bccbl.co.in

www.rbi.org.in

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