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While writing this acknowledgment my emotions are being generated by the remembrance of my past life. However, it’s the time to make a mention of all those persons who helped me directly or indirectly in reaching at this acme of life. At the very onset , I thank God with utmost humbleness and reverence for the gift of a wonderfully blessed life. It is my proud privilege to express my deep sense of gratitude and indebtness to all my teachers of Department of Business Management , Dr. Y. S. Parmar University of Horticulture and Forestry , Nauni , Solan and Mr O. C.
Rana,Chairman,Parvatiya Gramin Bank , Mr Ravinder Singh Thakur and all the staff members of the bank who supervised and guide me throughout the training. Words fall short to express thanks to my friends for providing me moral support and time spent with them immemorable during the course of study. Care and love showered upon me by my parents and brother , helped me a lot in making my ambition a possibility and success. Needless to say errors and omissions are mine. Place : Nauni. Shweta Thakur. CONTENTS •A Brief Profile – Chamba District. •Origin of Regional Rural Banks. •Owners and Operators of RRB. Management of RRB’s. •PGB – Bank’s Brief Introduction. •Composition of the Share Capital of the Bank. •Board of Directors. •Organizational set-up of the Bank. •Adherence to RBI Norms. •Different Schemes of the Bank. •Types of Advances. •Determination of Quantum of Working Capital. •Loans and Advances Schemes. •Performance of the Bank. •Balance Sheet of Parvatiya Gramin Bank. •Analysis of Balance Sheet. •Social objectives of the Bank. •Rural business initiatives of the Bank. •SWOT Analysis of Parvatiya Gramin Bank. •Suggestions and Recommendations. •Personal Learning. •Conclusion. •Refrences.
PARVATIYA GRAMIN BANK A BRIEF PROFILE – CHAMBA DISTRICT : Chamba district lies in the Himalayas and partially fringes the Shivalik range of hills. It is bounded in the northwest and west by the state of Jammu and Kashmir , on the east by district of Lahaul and Spiti of the state of Himachal Pradesh and south by district of Kangra (H. P. ) and Gurdaspur (Punjab). The entire district is mountaineous and altitude ranges between 2000 feets to about 21000 feets above sea level. The temperature varies between mild hot to extreme cold and during winter , temperature drops to sub zero mark in some parts of the district.
Chamba is one of the largest districts of Himachal Pradesh with an area of 6528 square kilometers spread over 1144 inhabited villages. The literacy rate is 44. 70 . There are 7 tehsils and 7 development blocks , out of which 2 blocks (Pangi and Bharmour) are categorised as tribal areas. Pangi sub-division remains cut off from rest of the world for about 6 months in a year due to heavy snowfall. Salooni and Tissa blocks of the district have been declared as backward. The district is industrially backward and agriculture continues to be the main activity with small and marginal land holdings.
Apart from agriculture , a majority of rural hoseholds are engaged in traditional vocations such as handloom weaving , wood and metal works , leather foot wear , rearing of goats and sheep etc. “Chamba Rumal and Chamba Chappal” are items of national fame. Besides , slate mining , small-scale industries , trading , tourism and transport are other major activities of this district. Chamba , Bharmour and Dalhousie centres have also attracted investment in few hotels. Of late floriculture has also picked up in Tissa and Bhattiyat blocks. A few micro hydel projects are also coming up in Bharmour belt of the district.
The district is having a network of 76 branches of various Banks (Commercial Banks – 27 ; State Co-operative Banks – 19 ; RRB – 30 and State Agriculture Rural Development Banks – 2). C. D. Ratio and recovery percentage of various banks in the district was 34. 39 and 73. 86 respectively , as on 31st March,2010. ORIGIN OF REGIONAL RURAL BANKS : The Regional Rural Banks (RRBs) were introduced as per recommendation of a working group on Rural Banks. The group was appointed by Government of India on 1st July 1975 under the Chairmanship of Sh.
Narsimhan , the then Additional Secretary in the Union Finance Ministry. On the basis of recommendation of this working group Central Government enacted an act known as RRB Act 1976. Section 3 of RRB Act 1976 says that Central Government , if requested so to do by a sponsor Bank , by notification in the Official Gazette , establish in a State or Union Territory , one or more RRBs with such name as may be specified in the notification and may by said or subsequent notification , specify the local limits within which each RRB shall operate. OWNERS AND OPERATORS OF RRB :
The RRB’s are sponsored by scheduled banks , usually public sector banks and jointly owned by Government of India ,concerned State Government and Sponsor Bank. The authorized capital of each bank shall be five crores of rupees divided into five lac of fully paid up shares of One Hundred Rupees each. MANAGEMENT OF RRB’s : The general superintendence , directions and management of the affairs and business of an RRB vests in a Board of Directors. The Board of Directors shall consist of Chairman appointed by the Sponsor Bank and following other members namely : a)Two Directors , Non-Official , to be nominated by Central Government. )One Director , an officer from RBI , to be nominated by RBI. c)One Director , an officer from NABARD , to be nominated by NABARD. d)Two Directors , officers from Sponser Bank , to be nominated by Sponser Bank. e)Two Directors , officers of concerned State Government , to be appointed by State Government. The central government may increase the number of members of the board. However , the number of directors shall not exceed 15 in aggregate. PGB – BANK’s BRIEF INTRODUCTION : Parvatiya Gramin Bank is a Regional Rural Bank , having it’s Head Office at Chamba. Parvatiya Gramin Bank is sponsored by State Bank of India.
The bank was established on 2nd November,1985 under Regional Rural Bank Act 1976. The bank has been in operation for the last 24 years. The bank is restricted to Chamba district only. The bank has a network of 30 branches. Twenty eight branches of the bank are located in Rural areas and only two branches, that is , Dalhousie and Chamba are located in semi-urban centres. The names of blocks and number of branches located therein are as under : ? The number of branches in Chamba Block are 8 branches. ?In Mehla Block there are 4 branches of Parvatiya Gramin Bank. Tissa block is having 2 branches. ?Number of branches in Salooni Block are 4 branches. ?Bharmour Block have 4 branches. ?In Bhatiyat Block there are 7 branches of Parvatiya Gramin Bank. ?The Sach of Pangi Block have 1 branch. Thus the total number of branches of Parvatiya Gramin Bank in District Chamba are 30. The business levels and growth recorded by the Bank during past three years is as under : (Amount in crores) MARCH 2008 (Absolute figures) % GROWTHMARCH 2009 (Absolute figures) %
GROWTHMARCH 2010 (Absolute figures) % GROWTH DEPOSIT148. 41 30170. 36 15200. 00 17 ADVANCES81. 00 30106. 77 20133. 00 25 TOTAL229. 41277. 13333. 00 Credit to Deposit (C. D. ) Ratio has gone up from 60 in 2008 to 66 in 2010 , which is highest among all banks in the state. Recovery percentage of the bank 88%. COMPOSITION OF THE SHARE CAPITAL OF THE BANK : Bank’s authorized and paid up capital is Rs 1. 00 crores. This is a public sector bank and is jointly owned by Government of India , State Bank of India and Government of Himachal Pradesh.
Their contribution towards paid up capital is in the ratio of 50% , 35% and 15% respectively. The bank was selected for restructuring by the Central Government for which an amount of Rs 278. 29 lakhs has been received from Government of India , State Bank of India and Government of Himachal Pradesh in the ratio of 50:35:15. BOARD OF DIRECTORS : The composition of Board of Directors is as under – S. No. NOMINATING AGENCYNUMBER OF DIRECTORS 1. State Bank of India1 Chairman. 2. State Bank of India2 Directors. 3. Reserve Bank of India1 Director. 4. NABARD1 Director. 5. State Government2 Directors. 6.
Government of India2 Directors. All the important matters pertaining to policy issue and other guidelines are being placed before the Board of Directors for smooth functioning of the bank. ORGANIZATIONAL SET UP OF THE BANK : The organizational structure of the bank is as under – CHAIRMAN General Manager Manager Chief Branches Manager (Personal) (Technology) Inspector Branches Manager Manager Manager Manager (Accounts) (Credit) (NPA) (Planning and Budgeting) ) Head Office : The Head of the Bank is managed by following officials – POSITION INCUMBENCY 1. Chairman : SMGS – V 2. General Manager : MMGS – IV 3. Chief Inspector : MMGS – III 4. Manager (Personnel) : MMGS – III 5. Manager (Advances) : MMGS – II 6.
Manager (Accounts) : MMGS – II b) Branches : Branches are managed by Branch Managers. In all the bank has 31 units including one Head Office and 30 Branches. The staffing pattern of a branch is as under : BRANCH MANAGER Field Officer Officer / Accountant Clerk cum Cashier Cashier Clerk cum Cashiers Bank has 105 staff members including Chairman comprising of following categories – Chairman : 1 General Manager : 1
Officers : 44 Clerks : 35 Subordinates : 24 TOTAL : 105 c) Staff Profile : PARTICULARSOFFICERSCLERICAL SUB STAFF TOTAL As on March,2010. 42 35 24 101 Officers on deputation from sponsor bank. 04 —- —- 04 ADHERENCE TO RBI NORMS : PARTICULARS RBI NORMS BANK’s POSITION (%) 31-3-2010 CD Ratio 60 66 Priority Sector Advances 40 85 Agriculture Advances to Total Advances 18 20 Credit to Weaker Section 10 39
Women Entrepreneurs 05 25 DIFFERENT SCHEMES OF THE BANK : Deposit Schemes – Different deposit schemes of the bank are as under – a) Current Account. b) Saving Bank Account. c) Term Deposits : i. Recurring Deposit Accounts. ii. Term Deposit Accounts. iii. Special Term Deposit Accounts. Position of different deposit schemes prevailing in the bank for the last three years with account numbers and amount outstanding is as under : (Amount in 000’s) SCHEME NUMBER OF ACCOUNTS AMOUNT 1/3/200831/3/200931/3/201031/3/200831/3/200931/3/2010 Current Account 536 637 704 44298 45284 59811 Saving Bank Account 48475 58387 74826 595132 726414 930918 Term Deposit 27372 26285 24025 844656 931867 1014226 TOTAL 76383 85306 99555 1484086 1703565 2004955 TYPES OF ADVANCES : Advances are catagorised mainly in three forms – 1. Term Loans. 2. Cash Credit. 3. Demand Loans. ?Term Loans – (a)Term Loans are sanctioned to purchase fixed assets which are used to achieve sales target to earn profits over a long period of time.
Installments of these loans are fixed by calculating the income received from the assets purchased out of bank loan. Loans can be disbursed in one / two or even in more occasions. Recovery is started after machinery / assets start earning. The period from disbursement to the start of the first installment is termed as Gestation Period. (b)Agriculture Term Loans : Agriculture Term Loans are given to the farmers for the development of their farming activities and improve or to start activities allied to agriculture. In short these loans are given for adopting to modern methods of cultivations.
Ordinarily Parvatiya Gramin Bank gives these types of loans for – •Threshers. •Minor irrigation. •Plantations / Floriculture. •Cowshed. •Plough Bullocks. •Dairy , fishery , poultry etc. ?Cash Credit – (a)Cash Credit Loans are also called Working Capital Loans. These loans are defined as the funds required to carry the required levels of current assets (stocks , book debts) to enable the industry to carry on its operations at the expected levels. These loans can further classified as : •Permanent Working Capital : It is minimum amount of investment in Current Assets (CA) for carrying out operations. Fluctuating Working Capital : It represents additional assets required at different times during the operating period due to cyclic reasons. •Seasonal Working Capital : It is required for additional current assets due to seasonal nature e. g. thresher etc. •Adhoc Working Capital : It means additional funds for meeting the needs arising out of special circumstances such as execution of special order. DETERMINATION OF QUANTUM OF WORKING CAPITAL : Various methods are used for determining the quantum of Working Capital requirement but the most popular method is ‘Operating Cycle Method’.
The Operating Cycle – An industry is characterised by a cycle of operations consisting of purchasing raw materials for cash , converting these into finished goods and realizing cash by the sale of such finished goods. REPRESENTATION OF OPERATING CYCLE Components of Operating Cycle : i. Time taken to acquire raw material and average period for which they are in store. The time taken in first component is 90 days. ii. Conversion process time (converting raw material in to finished goods) . Time taken in this component is 20 days. iii.
Average period for which finished goods are in stores. Time taken in this component is 10 days. iv. Average collection period of receivables / sundry debtors. The time taken in this component is 30 days. The length of the Operating Cycle of a unit would be the sum of above four individual components of time. Therefore the Operating Cost is (90+20+10+30)days which is equal to 150 days. This means there are 365/150=2. 43 cycle of operations in the year. Now suppose that the estimated sales of a unit is Rs. 10 lac and operating expenses are expected to be Rs. 8 lac for a sales of Rs. 0 lac. Now the determination of Working Capital requirement will be as under : Since operating expenses are 8 lac , this should also be the quantum of working capital needed. We also know that there will be 2. 43 cycles of operation during the year. This means that each Rupee of working capital employed during the year is turned over 2. 43 times. Thus the working capital requirement of a unit is calculated to be Rs. 8/2. 43 lac = Rs. 3. 30 lac. This only implies that to meet it’s operation expenses , a unit does not need Rs. lac but only a certain fraction of it , since the same Rupee is available for redeployment 2. 43 times during the year. (b) Agriculture Cash Credit Loans – These loans are given to meet the seasonal agriculture operations. Loan limit is fixed for different input with the help of Scale of Finance for each crop which is determined by the technical committee of the district probably once in an year. These loans are repaid within two months after harvesting of the concerned crop. The disbursement of these loans is made in cash and kind portion as per farmer’s need. Demand Loans – In Parvatiya Gramin Bank these loans are granted mainly against pledge of specific securities viz. bank’s own term / Special Term Deposits , RD Deposits and against the assignment of LIC Policies. These loans are also given to the pensioners particularly Defense Pensioners who obtain pension from the bank. These loans are opened with one debit for the entire loan amount and no further debts are made except for interest , expenses etc. these loans are repayable on demand and the borrower can pay the loan gradually or at a time.
LOANS AND ADVANCES SCHEMES : Bank’s loans and advances have been catagorised into undernoted broad segments- •Agricultural Segment. •Micro , Small and Medium Enterprises (MSMEs) Segment. •Personal Segment. A)Agricultural Segment – Agriculture Segment includes following schemes – i. Kisan Credit Card Scheme (Crop Loans) : The purpose of this scheme is to provide adequate and timely support to farmers for their production and input needs e. g. seeds , fertilizers , insecticides , pesticide , irrigation , harvesting , threshing , marketing and related labour.
The crop loan limit is worked on the basis of scales of finance worked out for different crops by District Technical Committee to be grown on the basis of cost of cultivation and area of land where crops are to be grown. ii. Kisan Gold Card Scheme (Agri Term Loan) : General purpose loan for production/consumption. 80% of the eligible limit can be utilized for creation or purchase of any productive asset , other than for purchase of land , construction of farm houses , purchase of tractor and accessories. iii. Tractor Financing : The purpose is the purchasing of tractors. iv. Purchase of Two Wheeler Under Agri. Segment :
The purpose is purchase of two wheelers to farmers. v. PGB-Krishak Uthan Yojna : Tenant farmers and share croppers are financed for improved seeds , fertilizers , pesticides etc. as per cost of cultivation , upto Rs25000/- with simple appraisal and documentation. vi. PGB-Debt Swap Scheme : The objective is to mitigate acute distress farmers facing heavy burden or debt from non-institutional lenders/sahukars. vii. Land Purchase Scheme : The purpose is to assist small/marginal farmers and landless agricultural labourers for purchase , development of waste land/consolidation of land holding. viii. Floriculture Financing :
Bank provides finance for growing different flowers like Carnation , Gladulous , Lilium , Marigold etc. ix. Vegetable and Fruit Financing : Bank also provide finance for the growing of various vegetables and fruits. x. Kisan Club : Its activity is to facilitate dvelopement of farmers through credit , technology transfer , awareness and capacity building and to discuss loan delinquency and facilitate loans recovery. B)Small and Medium Enterprises (SMEs) Segment – Small and Marginal Enterprises Segment includes – i. SME Credit Card : Its purpose is to meet any type of credit requirement like hassle-free , onvenient product , simplifying credit delivery , no cumbersome procedure for reviews and renewals , no stock statement , balance sheet and other statements. The maximum amount under this segment can be upto Ten Lakhs only. ii. PGB Shoppe : The objective is the purchase of new/old shops/establishment , officers modernization/renovation/face lifting , expansion/addition/alteration , dealer’s showroom under tie-up arrangement , building for training centres , service centres , repair centre/garage , for consultant/chartered accountants , all furniture or fixtures , electrical fittings or other accessories. ii. Swarojgar Credit Card : The purpose of this is to provide adequate , timely , flexible , hassle-free and cost effective credit with reasonable consumption needs. iv. PGB General Credit Card Scheme : The objective of the scheme is to provide hassle-free credit to bank’s customers based on the assessment of cash flow and the income of the entire household without insistence on security , purpose or end-use of the credit. This will be in the nature of the cash credit with no end use stipulations. v. PGB Traders Easy Loan :
It is for the prosperity of the trade and services sector – a convenient banking product for hassle free finance , which will liberally meet working capital and term loan requirements without cumbersome appraisal procedures. The maximum loan limit under this scheme is 20. 00 lakhs. vi. PGB Paryatan Plus : The purpose is the construction/renovation/additions to hotel/yatri niwas/dharamsalas/offices/purchase of office equipments , computers by travel agents etc. amusement parks , health clubs , house holds , luxury coaches , cars , taxis etc. vii. PGB Car Loans for SMEs :
Its purpose is to provide term loan to the promoter/partner of the SME units having borrowing arrangements with the bank of their family members either in their own or in the units name or in the unit’s name for purchase of passenger cars , jeeps , multi utility vehicles (MUVs) and sports utility (SUVs) etc. viii. PGB Artisan Credit Card : The objective is for working capital requirements as well as cost of tools and equipment required for carrying out the manufacturing process. C)Personal Segment – Personal Segment includes following schemes – i.
Vehicle Loan Scheme : The purpose of this scheme is to purchase a new car / jeep / scooter / motor cycle. ii. Old Vehicle Loan Scheme : Its purpose is to purchase an old (2nd hand) car / jeep / scooter / motor cycle to the extent of 705 of profit cost. iii. Public Housing Loan : The objective of Public Housing Loan is to purchase / construct / renovate / repair of house/flat or purchase of plot for construction of house. iv. Pensioners Loan Scheme : Its purpose is to meet personal expenses. Advance is granted against Pensions due. v. Education Loan Scheme :
This scheme is to meet tution , hostel and other related expenses in India or abroad for studies in +2 , graduation , post graduation and professional course. The maximum loan limit is Rs 20 lakhs only. vi. Sahayog Niwas : The purpose of this scheme is to finance Self Help Groups (SHGs) for on lending of their members for – •Purchase or construction of houses / house-cum shed for dairy , poultry , store or any other activity. •Renovation or repair of existing house not more than 15 years old in case of tiled / RCC roof and 5 years in other types of houses. •Extension of existing house or work space. Purchase of plot for the purpose of house construction. •The maximum loan limit for : ?construction of house is Rs. 50000 per member. ?repair/renovation is Rs. 25000 per member. vii. Rural Sanitation : The purpose of rural sanitation scheme is the construction of twin-structure of toilet and bathing room. viii. Gram Niwas Yojna : The main purposes of the Gram Nivas Yojna are – •Purchase and construction of house / house-cum shed for dairy , poultry , store or any other activity. •Renovation of repair of existing house not more than 15 years old in case tiled / RCC roof and 5 years in other types of houses. Extension of existing house / work space. •Purchase of plot for the purpose of house construction. PERFORMANCE OF THE BANK :- S. NoPARTICULARS200820092010 A. KEY PERFORMANCE INDICATORS 1. No. of Districts Covered111 2. No. of branches293030 a)Rural282929 b)Semi-Urban111 3. Total Staff [Excluding Sponser Bank Staff]92103101 Of which , Officers374242 4. Deposits148408617035652004955 Growth %12%15%18% 5. Gross Loans & Advances Outstanding89005810676911330286 Growth %302025 6. CD Ratio606366 7. Investment Outstanding660683654185735662 Growth %(-)3(-)112 B. AVERAGES 8. Average Deposit141257615825421883398 Growth %91219 9.
Average Gross Loans & Advances 7321069031261132440 Growth %222325 C. LOANS ISSUES DURING THE YEAR 10. Loans issued during the year474603518144637214 Growth %42923 D. PRODUCTIVITY 11. Per Branch8186792375111175 Per Staff258062690530022 E. RECOVERY PERFORMANCE 12. Total Demand 194116247420310391 Recovery 166416213265273203 Overdues 277003415537188 Recovery (%)868688 13. Farm Sector Demand 6315793400109559 Recovery 541868280997190 Overdues 89711059112369 Recovery %868889 14. Non – Farm Sector Demand130959154020200832 Recovery 112230130456176013 Overdues 187292356424819 Recovery (%)868588 PROFIT AND LOSS ACCOUNT : S. No.
PARTICULARS31-03-201031-03-200931-03-2008 1. INCOME Interest 192208176030146357 Other Income926081246975 TOTAL201468184152153332 2. EXPENDITURE Interest Expended1114449364178181 Operating Expenses539046070554770 Provisions and Contingencies12563118818495 TOTAL177911166227141446 3. PROFIT/LOSS Net Profit/Loss for the Year235571792711886 Profit/Loss Brought Forward700945216743847 TOTAL936517009455733 4. APPROPRIATION Transfer to statuory reserves706053783566 Balance Carried Over to Balance Sheet16497125498320 TOTAL235571792711886 PROFITABILITY ANALYSIS 1. Interest paid on a)Deposits 7577390211109903 b)Borrowing 240834301541 2.
Salary 282353133935616 3. Other Operating Expenses265352936618258 4. Interest received on a)Loans and Advances80448102434127012 b)Current Accounts with SBI & other Banks89144 c)Investments/Money at Call/TDR with SBks & Approved Securities681037231166866 d)Investments145917271344 5. Misc. Income697581249260 6. Profit / Loss 118861792723557 OTHER INFORMATION 7. Share Capital Deposit Received278292782927829 8. Interest Derecognised a)During the year4591367940 b)Cumulative158920512067 9. Loans written off during the year a)No. of Accounts36915 b)Amount 3069193 10. Reserves 223562773434804 BALANCE SHEET OF PARVATIYA GRAMIN BANK :-
CAPITAL AND LIABILITIES 31-03-2008%GROWTH 31-03-2009%GROWTH 31-03-2010%GROWTH A) Liabilities Capital37829-37829-37829- Reserves and Surplus7452419924502411601825 Deposits 148408612170356515200495518 Borrowings 43507126801956695002 Other Liabilities and Provisions106823311281612014668814 TOTAL174676813203002416237499017 B) Assets Cash and Balance with Reserve Bank of India11736127107801(-)813865329 Balance with Banks and money at call & Short Notice15225(-)3129051-97092(-)25 Investments 660683(-)3654185(-)173566212 Advances 87670630105379520131346725 Fixed Assets330316151385651420 Other Assets73490(-)9800909849746
TOTAL174676813203002316237499017 ANALYSIS OF BALANCE SHEET : The Capital Adequacy Ratio of the bank for the last three years is 13. 49% , 12. 51% and 12. 36% which is well above the National Bench Mark of 7%. 1. During reported years bank’s profitability increases in absolute and percentage terms , thus raising its reserves and surpluse amount from 24% to 25%. 2. During last year (2009-2010) , bank has curtailed its borrowings from 24% to 25%. 3. During reported years , banks investments (including with RBI , Different Banks and Approved Financial Institutions) showed increasing trend , which is very good inn terms of its liquidity position. . Loans and Advances of the bank are also increasing in an absolute and percentage terms from 20% to 25%. 5. Deposits of the bank has also shown increasing trend from 15% to 18%. SOCIAL OBJECTIVES OF THE BANK : The bank is playing an important role in the district in meeting its socio-economic obligations by way of lending to priority sector , small and marginal farmers , rural artisans and weaker sections of the society. Bank has been exceeding the targets under Annual Action Plan year after year. Bank maintain close rapport with government sponsoring agencies , district administration , Gram Panchayats and other sponsoring agencies.
The bank has covered as many as 696 of 1144 inhabited villages in the distrit. The bank has given more thrust towards its rural clientail and has opened 76383 deposit accounts disbursed loans to 13918 borrowal accounts. Upto the year 2009-2010 , the bank has covered 100% households allotted by state government under financial inclusion programme. The bank is making every endeavour to meet all banking including credit needs of the population in the area of operation of branches in the district. The bank is also playing an important role in the implementation of SGSY and other government sponsored schemes.
For successful implementation of these schemes , the bank is closely associated at various steps of implementation of the programme in the district . The performance of the bank under various government sponsored schemes during the last 3 years is as under : 2007-2008 2008-2009 2009-2010 NO. AMOUNTNO. AMOUNTNO. AMOUNT (in lakhs) a) SGYS Application received 135 125. 11 181 148. 32 227 209. 77 Sanctioned 131 120. 21 181 148. 32 227 209. 77 Distributed 126 118. 46 181 148. 32 227 209. 77 b) HP SC/ST DEVELOPMENT CORPORATION Application received 249 96. 2 273 115. 53 162 70. 51 Sanctioned 234 6. 42 273 115. 53 162 70. 51 Distributed 215 81. 98 273 115. 53 162 70. 51 c) KVIC/KVIB Application received 66 255. 11 15 64. 67 25 65 Sanctioned 61 243. 31 15 64. 67 25 65 Distributed 60 238. 08 15 64. 67 25 65 Performance of the bank in the upliftment of the low income people of the society through Self Help Groups (SHGs) is also commendable. Bank has performed key role in formulation and linkage of SHGs in the district. Cummulative achievement of the bank under SHGs is as under during last 3 years :
GROUP FORMED GROUP CREDIT LINKED (Rs in Lakhs) NUMBER AMOUNT DEPOSIT NUMBERAMOUNT OF ADVANCE YEAR 2007-2008 1172 60. 82 852 729. 98 2008-2009 1235 75. 25 1031 880. 48 2009-2010 1386 85. 41 1186 1063. 26 Bank’s efforts were appreciated by NABARD , who awarded a trophy at a state level function. Bank has also performed key role in the upliftment of small and marginal formation by granting agriculture loans. Bank has introduced Kisan Credit Card Scheme. KCC Scheme is very popular among all the farmers of the district.
The year wise cumulative position of finance under KCC Scheme is as following : YEARNUMBER OF KCC ISSUEDAMOUNT IN ADVANCE 2007-2008 6247 1181. 61 2008-2009 7770 1552. 41 2009-2010 10185 2041. 58 RURAL BUSINESS INITIATIVES OF THE BANK : Bank has brought some initiatives to promote business and generate employment in the rural areas of the district. a)Self Help Groups (SHGs) : The bank has formulated 1225 SHGs ; out of which 1186 SHGs have been credit linked . The bank has been given the State Level First Prize in SHGs linkage during the year. )National Rural Employment Gurantee Act (NREGA) : The bank has opened 26975 accounts under NREGA and achieved 100% financial inclusion. c)Financial Inclusion through Technology : The bank has initiated financial inclusion project for extending financial services through Business Correspondant Model and enabling contactless smart technology. Zero Mass Foundation / Little World are the Business Correspondents and Technology providers. d)Doodh Ganga : Bank is pioneer in introducing Doodh Ganga Scheme launched by NABARD and State Government by financial quality milch cattle to the villagers. Progress Under the Scheme –
Total Investment NUMBER OF BENIFICIARIESAMOUNT IN LAKHS 41 30. 07 e)Floriculture / Polyhouses : Bank is doing pioneering work in financing of Poly-Houses in Tissa , Nakrot , Sahoo and Chowari blocks of the district Chamba. Bank has met credit needs of about 200 units for Rs 2. 00 crores. f)Farmers Club : Bank has also taken a lead in the formation of farmers clubs. Bank’s 30 branches have formulated 45 farmers clubs in the district Chamba. g)Rejuvination of Apple Orchards : To meet the small financial needs for maintainence of small Apple Orchardists bank has selected Bharmour and Tissa blocks. 0 orchardists has been financed by the bank under this scheme so far. SWOT ANALYSIS : A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as Strengths (S) or Weaknesses (W) , and those external to the firm can be classified as Opportunities (O) or Threats (T). Such as analysis of the strategic environment is referred to as a SWOT Analysis. In simple form , a SWOT Analysis can be understood as the examination of an organization’s internal strengths and weaknesses , and its environments opportunities and its threats.
It is a general tool designed to be used in the preliminary stages of decision-making and as a precursor to strategic planning in various kinds of applications. An understanding of all external factors , (threats and opportunities) together with an internal examination of strengths and weaknesses assists in forming a vision of the future. SWOT Analysis is used to develop a plan or find a solution that takes into consideration many different factors , and maximizes the potential of the strengths and opportunities while minimizing the impact of the weaknesses and threats.
While developing a strategic plan or planning a solution to a problem , after you have analysed the external environment (for example , the culture , economy , competition , technical ability , sources of funding , demographics , etc. ) SWOTs can be performed by managers , designers or by the entire project team. Group techniques are particularly effective in providing structure , objectivity , clarity and tend to focus discussion about strategy that might otherwise tend to wander. SWOT ANALYSIS FRAMEWORK SWOT ANALYSIS OF THE BANK : •Strengths – 1. Focused strategy is in place for Human Resource Management and Development. . Well qualified and trained staff. 3. Young age group of the staff. 4. Dedicated staff offering good and value services to its customers. 5. Strong reputation of the bank in its area of operation. •Weaknesses – 1. Restricted area of operation. 2. Hilly terrain and inaccessible topography. 3. Low infrastructure network in the district. 4. Less scope of branch expansion. 5. Small staff with shallow IT skills. •Opportunities – 1. Tremendous scope of tourism industry expansion. 2. Large scope in floriculture , medicinal herbs production. 3. Tremendous scope for the off seasonal vegetables and horticulture produce. 4.
Construction of Micro Hydel Projects in the area. •Threats – 1. Less scope of further expansion. 2. Limited scope of industrialization in the area of operation. 3. Competition with large number of commercial bank branches. 4. Low speed of technology upgradation. SUGGESTIONS AND RECOMMENDATIONS : To run any organization successfully the management needs to think always for the betterment of their services and products. There is always a chance of improvement in the functioning of every organization. In the past there was very less competition in the market and the banks had less pressure to provide better facilities to the people .
But in recent years the competition has increased due to the entry of the public banks , private sector banks and other money lending units. Considering this the banks neeed to be more careful and needs to take such steps which favours them to stay ahead in the market. Some of the suggestions and recommendations are : •A healthy relationship should be established with the customer. •More mass awareness campaigns should be organized in order to enhance market share of the bank. •Customer’s satisfaction must be the top priority of the bank. •Customer’s care centers should be established. Help line number should be given to every customer. •Online banking should be provided to customers for their better service. •The Bank can extend its business by marketing new products like insurance policies. •ATM should be installed by the bank so that maximum customers can take advantage of this facility. •Banking time should be increased from 8am to 8pm. •Time to time review of the customers should be done. •More seminars on the working of the bank should be held time to time. •More refresher training to the employees should be given time to time. •Staff should be more supportive with the customers. Supporting environment should be provided to the employees. •Proper use of machinery and the infrastructure should be done. •Intimation of the customers about the deposition of the cheque into their account should be given to the customer by any communication medium. •Market status of the bank should be informed to the customers periodically. •Customers should be treated as family members. •Website should be updated regularly and the details of the different policies and interest rates must be shown properly. •More and more information pamphlets should be provided to the customers. •E-Banking must be introduced by the bank.
PERSONAL LEARNING : Working with Parvatiya Gramin Bank , Chamba as a part of summer training is a highly knowledgeable experience for me. While doing training in the bank I have learned many things about banking about which I was unaware previously. It was my prevelage to get training in an organization which has very high reputation and faith of the people of the area. Parvatiya Gramin Bank is doing wonderful service in the upliftment of the poor people , agriculturists , traders and other people. During the training period I have learnt many facts about banks , some of them are as under : •What is a bank and why we need banks. Role of banks in the development of society. •Various reasons behind the establishment of banks in India. •Types of banks in India. •Meaning of Rural Bank and their need in the development of the society. •Various departments of the bank and how they work. •Positional status , mission and vision of Parvatiya Gramin Bank. •How the various orders/instructions/circulars are issued to different branches. •Different types of loan facilities provided by the bank to the customers. •How the interest is calculated on the loans. •Why the bank need a guarantor of the person applying for a loan. Restrictions on the branch for sanctioning of loans. •Procedure of repayment of loans. •Procedure of recovery of the loans if not paid at time. •Procedure of sanctioning of the loans to the customers. •How new deposit and loan accounts accounts are opened. •How cash is deposited and withdrawn from the bank. •The documentation involved in opening of new account. •What are the responsibilities of the cashier? •Different types of accounts in PGB provided to the customers. •Difference between the transfer , deposit , withdrawing , draft forms. •How different types of vouchers are entered into the system. How recruitment and transfers of the new/old employees are done. •How annual confidential reports of the employees are prepared. •Difference between crossed cheque and normal cheque. •The job training has motivated me to join bank’s job. •Practical experience of work in an organization teaches how to follow the senior officers and to obey their orders. It helps in understanding how to build healthy relationships within organization. CONCLUSION : Parvatiya Gramin Bank , Chamba provided training to me at its head office and two branches namely ‘Kariyan’ and ‘Chamba’.
During the training period I studied the functioning of head office and branches. Head Office performs the functions of a controller and banking business is done at the branches. Analysis of balance sheet and profit and loss account shows that bank is on sound footing. Bank is in continuous profit for the last 18 years , deposits , advances ,CD Ratio , recovery percentage has shown increasing trends. Bank has highest CD Ratio in the state. Network of its 30 branches has provided excellent service to the customers and has contributed significantly in the developmental activities of the district.
Bank has also contributed in providing agricultural loans to the farmers and has won various awards for its appreciable work done in the field of providing loans to Self-Help Groups and agriculturists. Bank is also known for its excellent customer services. REFRENCES : ?www. nabard. com ?www. google. com ?www. rbi. com ?www. wikipedia. org ?Annual Report of Parvatiya Gramin Bank. ?Advances booklet of PGB Chamba. ?Other documents provided by the bank employees. ?Interaction with Bank’s Officials.