A

REPORT ON
THE STUDY AND ANALYSIS ON DEPOSITS
OF
SHIKSHARI SAHAKARI BANK LTD.

M.B.A. (BUSINESS APPLICATION)

For the Academic Year 2008-2010
Submitted By
MR. MAULIK KADAO & MR. SHASHANK AGRAWAL

Under the Guidance of

MRS. SMITA CHOURE

CENTUM LEARNINIG CENTER

Nagpur
AFFILATED BY ANNAMALAI UNIVERSITY
 A
REPORT ON
THE STUDY AND ANALYSIS ON DEPOSITS
OF
SHIKSHARI SAHAKARI BANK LTD.
Submitted
2008-2010

M.B.A. (BUSINESS APPLICATION)

For the Academic Year 2008-2010
Submitted By
MR. MAULIK KADAO & MR. SHASHANK AGRAWAL

Under the Guidance of

MRS. SMITA CHOURE

CENTUM LEARNINIG CENTER

Nagpur
AFFILATED BY ANNAMALAI UNIVERSITY
 CENTUM LEARNING CENTER, NAGPUR
AFFILIATED BY ANNAMALAI UNIVERSITY, CHENNAI

CERTIFICATE

This is to certify that the project entitled “THE STUDY AND ANANLYSIS OF
DEPOSIT WITH RESPECT TO SHISHAK SAHKARI BANK LTD. NAGPUR” submitted in
partial fulfillment/ of the degree in Master of Business Administration to Annamalai University.
Project report is result of bonafide work carried out by Mr.Maulik Kadao & Mr. Shashank Agrawal
a student of M.B.A. of CENTUM LEARNING CENTER Under my guidance and supervision.
The candidate has satisfactorily prosecuted his project for not less than one academic
session. The project work is result of his original work and is sufficiently high standard to warrant
its presentations for evaluation and adjudication for award of the degree.

Place:- Nagpur
Date:-
Counter Signed

Mrs. Smita Choure Mr. Sanjay Choure

(Project Guide) (Managing Director)

C.L.C ,Nagpur C.L.C Nagpur

 CENTUM LEARNING CENTER, NAGPUR
AFFILIATED BY ANNAMALAI UNIVERSITY, CHENNAI

ACKNOWLEDGEMENT

I take this opportunity to express my sincere gratitude to the management of, “ Shishak
Sahakari Bank Ltd.” Mr. Prakash K. Puranik(Chief Executive Officer),and Mr. Shrikant G.
Vaidya (Administrative Officer), for giving me opportunity to work with organization for
purpose of project completion .
I am indeed grateful to Mr. Manoj T. Chakradhari (Assistant Manager) of Head office of
Shishak Sahakari Bank Ltd. for extending their invaluable guidance keen interest, co-
operation, and of course moral support to me during my project work.

I am also thankful to management of Main Branch(Itwari) Mr. Shrikant S. Naringe(Deputy

General Manager), Mr. Ravikant S. Ghuse(Branch Manager), Mr. Shirish S. Purohit(Assistant
Manager) & all Staff of main branch.

I am thankful to my worthy of HOD Director Mr. Sanjay Choure Sir for giving
me opportunity to do the training in this organization & all the lecturers of my
Dept. who have imported us to predict knowledge which has help me during our
training.

Submitted By,

Maulik kadao & shashank agrawal

 CONTENT
Sr. No. TOPIC PAGES
CHAPTER 1 EXECUTIVE SUMMERY
CHAPTER 2 INTRODUCTION

2.1] Introduction of Co-operative Bank

2.2] Features of Co-operative Bank
2.3] Co-operative Bank
CHAPTER 3 HISTORY & DEVELOPMENT OF THE
BANK
3.1] About the Bank
3.2] Aim of Bank
3.3] Social Aspects of the Bank
3.4] Silent feature of Bank
3.5] Achievements
4 RESEARCH METHODOLOGY
4.1] Sources of Data
5 STUDY OF BANKING & It’s PRODUCT
5.1] Definition of Banking
5.2 ] About Deposits
5.3] Different Types Of Deposits & Services Provided by Bank
6 BALANCE SHEET OF THE YEAR 2008
7 ANALYSIS AND INTERPRETATION OF DEPOSITS OF
YEAR 2007 AND 2008
7.1] Analysis By Pie- Chart & Bar Chart
8 CONCLUSION & SUGGESTIONS
8.1] Conclusion
8.2] Suggestions
9 BIBLIOGRAPHY
 CHAPTER 1

EXECUTIVE SUMMRY
 EXECUTIVE SUMMERY

With the growing competition in the market and globalization coming into role it has become essential
for every bank /organization to keep in touch with the recent technology. My subject of project mainly
target the deposit in the bank with reference to Shishak Sahakari Bank Ltd. Process that has been
adopted. Thus a bank to survive and do business in market it is very essential to fallow the rules and
regulations of RBI as it is the governing body of every bank.

In the present economic scenario it is very necessary for bank to accept deposits as to do business in the
market if they will not except deposit how they will give loans to the public. On keeping this in mind
we are doing study of deposits on shishak sahakari bank ltd.

We had shown different schemes of behalf of which the bank accepts deposits from public and also how
it is growing in a rapid speed.

In many financial services deposits play vital role in all institution without which the organization
cannot survive. Shishak Sahakari Bank Ltd. Has very efficient deposits schemes for public. It has
separate department to handle the deposit schemes of bank which are equipped with very good system.
The departments acts in a more proactive and calm and respectful manner.

7
 CHAPTER – 2

INTRODUCTION

I ] INTRODUCTION OF CO-OPERATIVE BANKS

The co-operative banks are small-sized units organized in the co-operative
sector, which operate both in urban and non-urban centres. They finance
small borrowers in industrial and trade sectors besides professional and
salary classes. Regulated by the Reserve Bank of India, they are governed
by the Banking Regulations Act 1949 and Banking Laws (Co-operative
Societies) Act, 1965. The co-operative banking structure in India is divided
into 4 components
a) Primary Co-operative Credit Society
The Primary Co-operative Credit Society is an association of borrowers and
non-borrowers residing in a particular locality. The funds of the society are
derived from the share capital and deposits of members and loans from
central co-operative banks. The borrowing powers of the members as well
as of the society is fixed. The loans are given to members for the purchase
of cattle, fodder, fertilizers, pesticides, implements, etc.
b) Central Co-operative Banks
These are the federations of primary credit societies in a district and are of
two types - those having a membership of primary societies only and those
having a membership of societies as well as individuals. The funds of the
bank consists of share capital, deposits, loans and overdrafts from state co-
operative banks and joint stocks. These banks finance member societies
within the limits of the borrowing capacity of societies. They also conduct
all the business of a joint stock bank.

2
c)State Co-operative Banks

The state co-operative bank is a federation of central co-operative bank and acts
as a watchdog of the co-operative banking structure in the state. Its funds are
obtained from share capital, deposits, loans and overdrafts from the Reserve
Bank of India. The state co-operative banks lend money to central cooperative
banks and primary societies and not directly to farmers.

Although co-operative banks are underrated in terms of their contribution to

Indian Financial System. They form an important faction of the same Their
performance has been exemplary in accordance to the role assigned to them,
the expectations they are supposed to fulfil, their number, and the number of
offices they operate. Although the genesis of the co-operative movement can
be traced back in the West. The importance that such banks have assumed in
India is rarely paralleled anywhere else in the world. Their role in rural
financing continues to play a pivotal role even today, and their business in the
urban areas also has increased in recent years mainly due to the sharp increase
in the number of primary co-operative banks

3
II] FEATURES OF CO-OPERATIVE BANKS

In India, co-operative movement has attained its maturity. The activities of co-
operative institutions cover a wide range of activities such as production,
processing, marketing, and distribution, servicing, and banking in India and
have vast and powerful superstructure. Co-operative Banks are important cogs
in this structure.

At the advent of this century, availability of credit in India was inconspicuous,

more particularly in rural areas, where agricultural and related activities were
starved of organized, institutional credit. The rural folk were depended
entirely on the moneylenders, who lent often-imposed high rates of interest.
The co-operative banks arrived in India in the beginning of 20th Century as
part of governments efFort to develop a new type of institution, based on the
principles of co-operative organization and management, suitable for
problems particular to Indian conditions. These banks were conceived as
substitutes for moneylenders, to provide timely and adequate short-term and
long-term institutional credit at reasonable rates of interest.

4
III] CO-OPERATIVE BANK :

 Are organized and managed on the principle of co-operation , self-help .

and mutual help.They are fully democratic in their approach.

 Function on "no profit, no loss" basis. Co-operative banks, do not conduct

activities to pursue the goal of profit maximization.

 Co-operative bank performs all the main banking functions of deposit

mobilization, supply of credit and provision of remittance facilities. Co-operative
Banks provide limited banking products and generally focus on agriculture related
products. However, co-operative banks are now diverted to housing loans also.

 UCBs also provide working capital loans and term loan as well.

 The State Co-operative Banks (SCBs), Central Co-operative Banks (CCBs)

and Urban Co-operative Banks (UCBs) can normally provide housing loans upto
Rs 1 lakhs to an individual. The scheduled UCBs, however, can extend their
lending upto Rs 3 lakhs for housing purposes- The UCBs can provide advances
against shares and debentures also.

 Co-operative bank functions business mainly in the agriculture and rural

sector. However, UCBs, SCBs, and CCBs operate in semi urban, urban, and
metropolitan areas also. The urban and non-agricultural business of these banks
has grown over the years. The co-operative banks demonstrate a shift from rural
to urban, while the commercial banks, from urban to rural.

5
 Co-operative banks are perhaps the first government sponsored,
government-supported, and government-subsidised financial agency in India.
They get financial and other help from the Reserve Bank of India and NABARD,
central government and state governments. They form the "most favored" banking
sector with risk of nationalisation. For commercial banks, the Reserve Bank of
India is lender of last resort, but co-operative banks it is the lender of first resort,
which provides financial resources in the form of contribution to the initial capital
(through state government), working capital, refinance.

 Co-operative Banks can be classified in to the money market as

well as to the capital market. Primary agricultural credit
societies extend short term and medium term loans.

 Land Development Banks (LDBs) provide long-term loans. SCBs and

CCBs also provide both short term and long-term loans.

 Co-operative banks are financial intermediaries only partially. The sources

of their funds (resources) are (a) central and state government, (b) the Reserve
Bank of India and NABARD, (c) other co-operative institutions, (d) ownership
funds and, (e) deposits or debenture issues. Ironically the intra-sectoral flows of
funds are much greater in co-operative banking than in commercial banking.
Inter-bank deposits, borrowings, and credit from a significant part of assets and
liabilities of co-operative banks. This means that intra-sectoral competition is
absent and intra-sectoral integration is high for co-operative bank.
6
 Some co-operative banks are scheduled banks, while others are non-
scheduled banks. For instance, SCBs and some UCBs are scheduled banks but
other co-operative banks are non-scheduled banks. At present, 28 SCBs and 11
UCBs with Demand and Time Liabilities over Rs 50 crores each included in the
Second Schedule of the Reserve Bank of India Act.

 Like other scheduled and non-scheduled Co-operative Banks are

subject to CRR and liquidity requirements. However, their
requirements are less than commercial banks.

 Since 1966 the Reserve Bank of India has directly regulated the
lending and deposit rate of commercial banks. Although the
Reserve Bank of India had power to regulate the rate co-operative
bank but this have been exercised only after 1979 in respect of
non-agricultural advances they were free to charge any rates at
their discretion.

Although the main aim of the co-operative bank is to provide cheaper credit
to their members and not to maximize profits, they may access the money
market to improve their income so as to remain available.

7
 CHAPTER-3

HISTORY & DEVLOPMENT

OF THE COMPANY

Shishak Sahakari Bank ltd. is firstly started with the intension

for only fulfill the basic needs of the thachers. The founder of its was
teachers.. The 21 people started it on 1st January 1979 by keeping
the ideal as a teacher to Dr.Sarvapalli Radhakrishanan. After some
time then it had been commarcialise for the all people now this is
works as a scheduled bank in the cooperative sector the shishak
sahkari bank cover wider area. According to the geography the
shishak sakari bank reach towards the urban as well as rural people,
the main moto of the bank is to fulfill the needs and satisfaction of the
“Customer” Approach in its services.

ABOUT THE COMPANY

Company’s introduction :

Shikshak Sahakari bank (SSB) is a leading co-opretive bank providing the

entire of banking services. The Bank founded in 1979 by some teachers
together, Now it has 20 branches including one main branch and one
extension counter. It has branches at Nagpur, Wardha,
Chandrapur,Gadchiroli, Bhandara, Yawatmal, Districts in Maharashtra.

Aim :-

The bank wishes to fulfill all type of needs of common man to increase the
standard of living.

SSB provides a breadth of banking services including costumer services,

investment banking, corporate financing, various types of loans etc.

8
Social Aspects :-
The bank's philosophy is entirely customer centric, with a clear focus on
providing long term value addition to costumers, Bank excels in Social
Banking , overlooking the profit aspect. The social aspect covers Priority
Sector, Agriculture, Small Scale Industries, Builder, Servicemen, Small
Businesses, Association etc. Bank is advancing loans to professional, to
industries, against immovable property, personal security loan, gold loan,
and also loan against LIC policies, NSC,KVP etc.

SALIENT FEATURES OF THE BANK :-

1. All branches of the bank work in two shifts, morning and evening.

2. All branches are computerized and inter connected with main branch.

3. Locker facility is available in the bank.

4. Teller counter is available in some of the branches of SSB.

ACHIVMENTS :-

1 . In year 1996-97, bank achiveved its aim to complete 100 corer

deposits and on 22/05/1999 it achieved status of “SCHEDULED BANK”

2 . It is the only cooperative bank, which achieved ‘Scheduled Bank’

status in only 20 years. It secured 1st rank in Vidharbha region for
highest deposits in year 1999-2000.

9
ORGANIZATIONAl CHART
 Board of
Directors

General
Manager

Administ Planning Audit Credit Recovary

-ration A/c. &
& Departme Departme Departme
Depart. Treasury.
Develop. nt. nt nt

Deputy Deputy Deputy Deputy Deputy Deputy

General General General General General General
Manager Manager Manager Manager Manager Manager

Manager Manager Manager Manager Manager Manager

As
sit
an
Assitant Assitant Assitant Assitant Assitant
tM
Manager Manager Manager Manager Manager
an
ag
er
Departm Departm Departm Departm Departm Departm
ent Staff ent Staff ent Staff ent Staff ent Staff ent Staff

10
 CHAPTER – 4

RESERCH
METHODOLOGY
A) SOURCE OF DATA

The Research is done on the basis of Primary Data and

Secondary Data.

1. Primary Data

For the study purpose the primary data will be collected from the
various Employees & officers from Shishak Sahakari bank ltd First I have
asked questionnaires related to the subject and then I have collected required
information from them.

2. Secondary Data

The secondary data for study collected from various manuals and
records of company. Balance sheet of the company.

20
1
 CHAPTER-5

STUDY OF BANKING
&
DEPOSIT PRODUCTS

1] What is Banking ?
Ans: - The banking regulation Act, 1949 defines the term banking. ‘Accepting for the
purpose of lending or investment of deposits of money from the public, repayable on
emand or otherwise, and withdrawals by cheques, draft, order is called banking.

The phrase “ DEPOSITS OF MONEY FROM THE PUBLIC” has great

significance. The banker accepts deposits from the public i.e., whoever offers
his/her money as deposit. However a banker can refuse to open accounts for
undesirable person. The definition also explains the time and mode of withdrawal.
The banker does not refund the money on his own accord, but the customer has to
demand for the same either through an order, cheque, draft or otherwise.

2] What is deposit?
Ans:- Deposit is the credit creation and investment in securities, both require bank
to mobilize deposit heavily from the market place. Deposit are the foundation
upon which bank thrives and grow.
In today’s intensely competitive and increasingly deregulated market place, both
the cost and amount of deposit of the banks are heavily influenced by the pricing
schedules and maneuvering of scores of bank and non –bank institutions offering
similar services. The globalization of the financial markets has widened the
avenues of fund for the banks in the capital market. Banks are now able to raise
capital both the national and intentional markets. Nevertheless, deposit gathered
from local markets are considered the primary support for assets in most of the
banks. Deposits have typically lower interest cost than the other types of funds.
Another important feature of these deposits is their relative stability compared to
hot money hot money i.e,. the money raise from the money market etc. these two
22
features of the deposits-stability and low cost sources of funds, make them 2
more preferred sources of fund by banks. All things being equal, banks that have a
greater deposit base are more valuable than the banks with poor deposits.
In India, traditionally banks have been offering only mass banking products. Some
of the most common deposits products are saving bank, current account ,and term
deposits account. The common lending products are cash credit and term loans. In
the past, banks had little choice in the matter and had to accept deposits at rates and
amounts fixed by Reserve Bank of India. Bank rate, which is dictated by the RBI,
is the benchmark for interest on the lending products. Further, remittance products
were limited to issuance of drafts, telegraphic transfer, bankers cheque and internal
transfer of funds.

3] Which type of deposits and services are provided by the bank ?

Ans: Types of deposits offered by the banks
a] Transaction(Payment) deposits
 Non-interest Bearing Demand Deposits
 Interest Bearing Demand Deposits
b] Non – Transaction(Saving, or Thrift) Account
 Current Account
 Saving Bank Account
c] Term deposits
d] Fixed deposits scheme
 Reinvestment scheme
 Cash Certificate
 Recurring Deposit Scheme
e] Pigmy Deposits
23
g] Dhanwardhini Yojan
3
 and various loan services also provide such as Over draft, Cash Credit , Term
Loan, Personal Security loan, Housing Loan, Loan Against Deposit, Loan
Against Tangible Security etc.

3] Explanation of Different deposits ?

Ans :- Deposits are accepted in different ways. Differentiation of deposits types
may arises from the type of customer who holds the deposits, tenure of the
deposits, its nature and the interest factor, based on these parameters, the deposits
can be broadly classified into transaction and non-transection.

Transection( Payments) Deposits :-

A deposit which facilitates the account holder to transact through a negotiable or
transferable instruments, cheque, a written order of withdrawal, telephone order to
transfer funds, or other similar means of makings payments and transferring
monies to third parties is known as a transaction account . these are one of the
oldest deposits services offered by banks where banks make payment on behalf of
its customers. This transaction or demand deposits service requires the bank to
honor cheques and withdrawals. Transaction deposits include regular non-interest ,
bearing demand deposits, which do not earn an explicit interest payment but
provide the customer with payment services, safe keeping of funds and records
keeping for any transactions carried out through cheques. They also include
interest bearing demand deposits that provide all of the foregoing services and pay
interest to the depositor. Current account and Savings account are the most widely
use transaction accounts.

Non-Interest bearing demand deposits:- 24

4
There are no interest payments on the current a/c. payment of interest on checking
accounts has been prohibited with the passage of the Glass-Steagall Act In the
U.S.. These demand deposits are among the most volatile and list predictable of
bank’s sources of funds, with the shortest potential maturity as they can be
withdrawn without notice. Most non deposit bearing liabilities are held by business
firms. Many of the individual a/c. holders have moved towards other types of
deposits that pay interest.

Non-Interest bearing demand deposits:-

In the early 1970s in New England, hybrid checking-savings accounts were
introduce in the form of Negotiable Order of Withdrawal(Now Accounts). NOWs
are interest bearing saving deposits that give the bank the right to insist of prior
notice before customer withdraws funds.
Two other important interest bearing transaction accounts were created in 1982
with the passage of the Garn-St Germain Depository Institution Act. Bank and non
bank thrift institution could offer deposits competitive with the share accounts
offered by money market funds that carried higher, unregulated interest rates and
were backed by a pool of high quality securities. Banks pay interest rates enough to
attract and hold the customer deposits. The customer is usually restricted to limited
transfer of or withdrawals per month, with no more than three transactions cheques
written against the account the interest rate paid on a money market account is
usually higher than that of regular passbook savings rate. Money market accounts
also have a minimum balance requirements.

25
Non-Transection(Saving, or Thrift) Accounts :- 5
When the deposit account does not facilitate routine payments or transfer of funds
for other transaction purposes, it is a non-transaction account. These deposits are
designed to attract funds from customers who wish to set aside certain amount in
anticipation of future expenditure or financial emergencies. These deposits pay
higher interest rates compared to transaction deposits. While their interest cost is
higher, thrift deposits are generally less costly for a bank to process and to manage.
Most familiar examples of such accounts are the term deposit accounts.
Based on this differentiation of transaction and a non-transaction account, the
deposit mobilized by the Indian bank are generally classified into Current
Account , Saving Bank Deposits and Term Deposits a detailed discussion on the
features of these deposits accounts the computation of interests etc. is given below.
Bank receive through three types of basic accounts: Demand Deposits , Saving
Deposits and Fixed-time deposits.

CURRENT ACCOUNT:-

The depositor can withdraw the money at any time (as long as money
available in the account) and also can order the bank to use the money to pay third
parties, generally through a cheque. Bank may or may not to pay interest on these
accounts. If they pay interest, the account is called a “NOW”(negotiable order of
withdraw) account. It is possible that bank may charge fees for demand deposit
accounts but in many cases these fees can be reduced or avoided by maintaining a
minimum balance or by satisfying other criteria established by the bank.
Some features are given below :-
 Current account is transitioned accounts and hence are offered to
26
business firms. 6
  Due to ease of the business firm have in depositing and withdrawing funds
from this account, it actually facilitate cash management for the firms.
 No advance notice is required to withdraw the amount.
 It being an operating account, these customer can easily withdraw fund from
current account using cheque facility.
 However banks do require the account holder to maintain a certain amount
of minimum balance continuously.
 In some cases depending on the credibility of the customer, the bank may

also allow the deposit holder to overdraw form the current account as the
amount enables easy liquidity, the deposit in this account does not earn any
interest.
 These account are non interest bearing liabilities of the bank, they are not

expense free as they generate processing cost to cover these cost, the bank
usually collect service charges related to account activity or account balance
or both .

Saving Bank Account:-

The depositor usually plans to maintain the fund in the account for an extended
period of time. Bank pay interest on these accounts. Bank may also charge fees for
saving accounts, but in many cases these fees can reduce or avoid maintaining
minimum balance. Other than for business purpose, operating accounts are also
necessary for individuals, trusts, non-profit organization etc. However these type of
deposit holders have fewer transactions when compare to business firms. Savings
bank account facilitates liquidity to these depositors.

27
7
 Similar to the current account the bank do not generally requires any
advance notice for withdrawals for the SB account.
 The SB account also has cheque facility, only limited numbers of cheques

can be written. Again , banks requires the deposit holder to maintain a

minimum balance. while the required minimum balance may vary from
bank to bank, most banks require the depositor to maintain this amount on a
continuous basis.
 Some banks require the depositor to maintain the minimum balance on an

average over a period of time , say three month.

 The bank may charge for any shortfall in this minimum balance. Some of
the new private banks are however offering zero balance facility i.e.,
deposit holder need not maintain a minimum balance.

The steaps to involved for saving a/c transaction are:-

A) The steaps involved to deposit money in our saving a/c.

1) In saving a/c we first had to fill a slip for depositing the money.
In slip we had to clearily mention out saving a/c no., date, name of a/c
holder, amount that we had to deposit, different nomination of types of note
that we had depositing, etc are the details we had to mention in the
depositing slip while depositing money in our saving a/c.
2) Then we had to take token to depositing money in saving a/c.
3) Then we had to go to the cash receipt counter to deposit our money in our
a/c.
4) Then we will get a acknowledgement slip with stamp of the bank and sign of
the cashier after the cashier accept our money.
5) Then after receiving acknowledgement our money is deposited in our a/c.

28
8
6) And finally our money is deposited in our saving a/c.

B) The steaps involved to deposit a cheque in saving a/c:-

1) The slip of deposit cheque is to be filled by the saving account holder to

deposit cheque in his saving account.
2) In slip we had to clearily mention out saving a/c no., date, name of a/c
holder, amount that we had to deposit, different nomination of types of note
that we had depositing, etc are the details we had to mention in the
depositing slip while depositing cheque in our saving a/c.
3) Then we had to attach cheque with that slip and deposit it at the cheque
deposit counter at bank.
4) After the cheque is cleared the bank will deposit the amount in our a/c.

B) the steaps involved to withdraw money from the saving account:-

1) The cheque book that we had got from the bank of our account we had to
take 1 leaf of that cheque book and mention on it in the favour self and the
amount that we had to withdraw from our account with the signature of the
account holder on the cheque.
2) Then we had to give the cheque to the counter and collect token from the
counter.
3) Then we had to go to the cash withdrawal counter to withdraw cash from our
account. The cashier will give cash on against token to the account holder
after verifying all the details of the account like account holder signature,
amount, date, name etc.
4) The account holder will receive cash and entry is passed from there account.

19
These are all the transaction passed in the bank in relation to saving account.

Term Deposits :-

Term deposits are a form of “debt investments” a customer lends, which in

essence, means that he is lending a sum of money to a bank or financial
institution for a specific period of time and the bank in turns pays him a “rental
stream”(interest) for privilege. These accounts pay higher interest rate than any
other deposits accounts. This type of account is called a certificate of
deposit(CD). These are the accounts of funds to which depositors have no
access for fixed period of time and penalties apply for early withdrawals.
Cheques cannot be written on term deposits or CDs. Other than liquidity,
which SB account and current account ensure, depositors would also prefer to
earn interest on their surplus balances. Banks facilitates this through term
deposits. This account enables savings plans for funds that can be kept as a
deposits for a period of more than 15 days. It is 7 days in case of bulk deposits.
While the maximum tenure of the term deposits is 10 years, banks generally
would not favor deposits with tenures beyond three to five years. For tenure
beyond three years, there will be a flat interest rate structure and this in fact
acts as a disincentive for the depositor.
The other feature of the term deposit is the de-regulated interested rates. Banks
are free to set their own rates depending on the size of the deposit and the
tenure. This interest will be paid on a quarterly compounded basis. Apart from
the annual compounding, if the interest is compounded monthly/quarterly/half-

20
yearly, the effective rate of interest for such periods will be different from the
nominal rate.
r = (1+k/m) -1
where,
r = Effective Rate
k = Nominal Rate
m = frequency of compounding per year
eg.- for instance the nominal rate of interest on a 2 year term deposit is 9.5
percent and the interest amount is compounded on a quarterly basis then the
effective rate can be assessed as follows:-

r = (1+0.095/4)m-1= 9.84%

Fix Deposit Scheme:-

In this scheme, a lump sum amount is deposited for a fixed term during which
the amount cannot be withdrawn. However, the interest is paid on a
monthly/quarterly /half-yearly/annual basis. This scheme provides liquidity to
the depositor as it can be withdrawn during these periods. By withdrawing the
amounts, the depositor can actually earn a return(interest) on this interest
amount. However, if monthly interest is withdrawn for the reinvestments, the
return earned will be more than that earned for quarterly repayment. To avoid
this, the interest rate that is paid for a monthly withdraw scheme should be
such that on reinvestment it shall not yield more than the quarterly returns.
Eg.:- Discounted monthly Interest = P*R / (12+r)

21
 Where,
P = Principal/Fixed Deposit Amount
R = Interest Rate
r = Reinvestment Rate for the monthly interest
for a 2 year FD deposit of Rs. 50,000 with the interest rate of 10.5percent
a. Ascertain the interest amounts if the payment is made on a quarterly, half-
yearly and annual basis.
b. What should be the interest rate if the interest rate is withdrawn every
month and transferred to the savings bank account?
Solun:- a. quarterly interest amount = 50000*0.105/4 = Rs. 1312.50/-only
Half-yearly interest amount = 50000* 0.105/2 = Rs. 2625/-
Annual interest amount = 50000* 0.105 = Rs. 5250/-

b. Discounted Monthly Interest = 50000 * 0.105 =Rs.436.04

12+0.04
This can be verified by adding the monthly interest of 3 months and the interest
earned during that period is as follows:-
(436.04 * 3) + (436.04 * 0.04 * 3/12)= 1312.50/-.

Dhanwardhini Yojana:-

This type of deposit is provided by by the bank to the customer and general
public who is entitled to keep there money for more than 1 year. In this scheme

22
the customer get more profit than general fix deposit. They get compound
interest on their deposited amount. Which will be benified to the customers.

For eg. -
If for 1 year Dhanwardini deposit of Rs.1000 with Shishak Sahakari Bank Ltd.
the rate of interest 10 percent interest calculate on quarterly basis Rs.1025/-per
quarter and next interest paid on amount 1025 Rs.the interest calculate by
compound interest .

Pigmy Deposit :-
This is a type of deposit provided by the shishak sahakari bank ltd. to their
customer who is entitled to deposit money on daily basis. It is also called as
daily deposit. They will get interest every year on there deposit as per the fixed
deposit receipt rate. This deposit scheme is in focus to all the general public &
the people who take the loan for small business according to their deposit
ability.
A pigmy agent is appointed by the bank to collect the money from the
bank customer and deposit the money daily into the bank.

23
CHAPTER -6

BALANCE SHEET
OF
YEAR 2008
 SHISHAK SAHAKARI BANK LTD.
BALANCE SHEET AS ON 31.03.2008
PREVIOUS LIABILITIES AMOUNT AS AMOUNT AS AS ON ASSETS AMOUNT AS
YEAR ON ON 31-03-2008 31-03-2007 ON 31.03.2008
31-03-2007 31-03-2008
50,00,00,000.00 1.AUTHORISE 50,00,00,000.00 50,00,00,000.00 6,32,23,900.67 CASH IN HAND 6,44,08,338.04
SHARE SHARE BALANCE IN CURRENT
CAPITAL A/C
21,75,54,350.00
24,05,10,000.00 24,05,10,000.00 WITH BANKS
PAID UP
SHARE
CAPITAL STATE /CENTRAL 1,86,17,428.29
24,33,806.04
CO-OPERATIVE
2,25,85,02,577.1 FUNDS 2,38,11,03,342.5
5 0 BANK
DEPOSITS
5,98,61,84,129.4 CURRENT 5,98,61,84,129.4
25,06,44,208.96
6 A/C. 6 RESERVE BANK 46,30,18,848.05
38,05,06,602.03 46,30,18,848.0
SAVING
1,69,74,64,739.9 OD INDIA 5
A/C.
2
FIXED
DEPOSITS 1,04,91,133.92
1,29,41,44,783.2 52,12,108.18 S.B.I. AND
OVERDUE
4
FIX & TIME OTHER NOTIFIED
DEPOSITS
7,73,11117.50 BANK
RECURRING
DEPOSIT
PIGMY 1,93,67,906.85
7,01,09,845.50 81,00,886.87 OTHER BANKS
DEPOSIT
4,81,21,701.00
SHUBHM.
MONEY AT
YOJANA 6,00,00,000.00
CALL & SHORT
51,44,663.00
DHANWA.
NOTICE
YOJNA
2,39,99,20,015.5
DHANSHRE. 2,04,87,41,132.00
4 2,05,07,49,049.0 INVESTMENT
YOJNA
0
SLR
MISCLLEA-
12,30,55,798.12
NEOUS
DEPO. NON SLR
SHARES
PIGMY SEC. 1,31,29,100.00
1,31,29,100.00
DEPOSIT NMC BOND 50,00,000.00
50,00,000.00 2007
SSB
35,61,619.57
CAPITAL UNIT OF 50,40,96,444.49
GAIN
70,00,000.00 MUTUAL
7,65,703.00
CREDIT FUND
BAL.IN
LIMIT A/C.
FIXED
BILLS FOR 45,09,67,672.87
1,59,39,934.61 DEPOSITS
COLL.BEING
33,42,56,974.44
1,22,88,769.30 BILLS
RECEIVABL 2,10,35,250.74
LOANS & ADVANCES
3,07,16,60,431.94
2,10,35,250.74
CLEARING
3,40,00,92,428.1
0 SUSPANCE
1,39,135.00

1,34,03,05,382.27
INTEREST
CLEARING
ADJUSTME RECEIVABLE
1,20,63,57,627.6
61692.06 85,756.42
0 A/C.
85,756.42
INTEREST
ACCURED 5,41,10,617.00
INVESTMENT
& PAYABLE
5,01,38,791.86 ON 5,02,84,882.53
2,10,35,250.74
5,02,84,882.53 3,60,47,698.12 BILLS
OTHER
LIABILITIES RECEIVABLE
7,20,28,538.96 7,08,80,838.01
1,22,88,769.30 BEING BILLS
7,08,80,838.01
FOR COLLECTION

BRANCH ADJUSTMENT 32,15,680.93

 25

CHAPTER 7

ANALYSIS AND
INTERPRETATION
OF DEPOSITS
YEAR 2007 AND 2008
 DEPOSITS OF THE YEAR 2007 DEPOSITS OF THE YEAR 2008
Name of the account Deposit amount Name of the account Deposit amount
Current account 216124140.63 Current account 250644208.96
Saving account 1320485784.63 Saving account 1697464739.92
Fixed deposits 1197927064.45 Fixed deposits 1294144783.24
Overdue fixed and 72996173.52 Overdue fixed and 77311117.50
time deposit time deposit
Recurring deposit 59291595.00 Recurring deposit 70109845.00
Pigmy deposit 35391638.00 Pigmy deposit 48121701.00
Shubhmangal yojna 5638363.00 Shubhmangal yojna 5144663.00
Dhanwadhini yojna 2380167887.72 Dhanwadhini yojna 2399920015.54
Dhanshree yojna 23901919614.12 Dhanshree yojna 123055798.12
Miscellaneous yojna Miscellaneous yojna
a.pigmy deposit 2716257.57 a.pigmy deposit 3561619.57
b.ssb capital gain 414070.00 b.ssb capital gain 765703.00
Credit balance in 11338814.24 Credit balance in 15939934.61
limit account limit account
Total 5541511402.88 Total 5986184129.46

Aim:- To know the variances Between the amount of various scheme

deposit
 26

Aim:- To See the Growth In Deposits are increasing or decreasing the

year by year.
Observation :-According to the above Pie Chart Shows that the
growth is increasing in year 2008 as compare to year 2007.

2007

2008

DEPOSITS, DEPOSITS,
52% 48%

The above chart shows the difference between the deposit amount of the
year 2007and 2008
 27
Aim:- To see the growth of various account wise which is
provided
by the shishak sahakari bank to their customer.
Observation :- According to the above Bar-Chart shows that the
speculating line between the two years deposits shows that
some deposits accounts are increase the amount of deposits
as compare to year 2007 and some deposits are decrease the
amount of deposits.

100%

80% 2008
2008 2008 2008 2008 2008 2008 2008 2008 2008 2008
60%

40%
2007
2007 2007 2007 2007 2007 2007
20% 2007 2007 2007 2007

0%
. Cu .S F O R P Sh D Dh ... .C
rr e avin ix De verd ecur igmy ub h hanw ans Misc r edi
nt g p u r l h t
A/ A/c osit e fix in g D Depo axmi ardh ree Y. Yoj B ala
c & i a n
tim ep os sits Y oja n i Yo ojan na (P ce . i
e D it s na jn a a ig m n L
ep
os y S imit
its ec A
ur i / c
ty
De
p o.+
Ca
p i

2007 2008

The above chart shows the differences in deposit by A/c. between the
year 2007 & 2008
 28

CHAPTER – 8

CONCLUSION
&
SUGGESTIONS
 8.1 CONCLUSION

1) It has been concluded that the deposits are increasing year by year.
2) According to this study the different deposit schemes are very
helpful to general public and customers.
3) On increasing the deposits of the bank the bank can lead more
money and can gain more profit.
4) On increase of pigmy deposit the total deposit amount of bank has
been increased.
5) Regular Contact with their depositor by giving him quick updates of
their account as well as their clearing .
6) one of the reason of increase the deposits is time scheduled of the
bank in two shifts it will helpful to their depositor to deposit their
whole day cash in bank, so that security purpose bank is helpful for
their depositor so it may be one of reason to increase the depositor .
7) facility of tailor counter upto 5000 Rs. Cash can easily whithdraw
without taking any token.
 29

8.2 SUGGESTIONS

1) The banks should adopts ATM facility and mobile facility so that it will
be benefited to the customers and also to the bank too.
2) The bank should develop their web site on which it can become global.
3) The bank should adopt online banking facility so that it should be more
Benefited to the customer.
4) The bank should also adopt core banking facility so that it will be easy to
handle the customer and branches too.
5) To increase the deposit bank should increase the branches in rural areas
to focus the poor people.
6) To keep the regular contact and keep in touch with high value
depositors it will increase deposit of the banks.
 30

CHAPTER- 9

BIBLOGRAPHY
SR. REFERENCE
NO.

1 - Balance sheet of Shishak

Sahakari Bank ltd. of the year
2007-2008
2 Refer Book of “Commercial banking “ by ICFAI
University

3 Internate
31