Summer Internship Program On A Study on consumer’s perception regarding selected loans At Gujarat Mercantile Co-operative Bank Ltd Submitted to Institute Code

Summer Internship Program
On
A Study on consumer’s perception regarding selected loans
At
Gujarat Mercantile Co-operative Bank Ltd
Submitted to
Institute Code: 123
Institute Name: SHRI CHIMANBHAI PATEL
INSTITUTE OF MANAGEMENT AND RESEARCH
Under guidance of
Prof. Rajesh Desai
In partial fulfillment of the requirement of the award of the degree of
Master of Business Administration (MBA)
Offered By
Gujarat Technological University
Ahmedabad
Prepared by:
Resham Shah
177680592138
MBA (SEMESTER-III)
June 2018

Students Declaration
I hereby declare that the Summer Internship Project Report titled “A Study on consumer perception regarding selected loans” in Gujarat Mercantile Co-operative Bank Ltd is a result of my own work and my indebtness to other work publications, references, if any, have been duly acknowledged. If I am found guilty of copying from any other report or published information and showing as my original work, or extending plagiarism limit, I understand and I shall be liable and punishable by the university, which may include ‘Fail’ in examination or any other punishment that university may decide.

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Enrollment no. Name signature
177680592138 Resham Shah Place: Ahmedabad Date:

Preface
Banking industry is the primary requirement for the financial development of the country. Up to the mid after the liberalization, privatization, globalization process private sector bank, co operative bank and multinational banks have emerged strongly. The banking sector has the potential to become special sector of the next decade. In terms of savings mobilizing, employment generation, rural development and also financing the government in building up the infrastructure in the economy. Here as management student this to study and observe the overall development of the banking sector and Financial statement analysis.

I realized how theories, principals and the laws implied with the practical manner. Thus practical exposure of the industry is important to learn and observe for the management students. It was interesting to have summer training at the Gujarat Mercantile Co-Op Bank Ghodasar.

This Bank has performed well. GMC Bank has achieved their target of money deposit. Even the Bank gets always ‘A’ grade from Audit.

ACKNOWLEDGEMENT
It is my personal belief that no report is the result of only its author’s efforts. There are many people who contribute something on the other, and thus play a significant role in laying the effective report that is capable of achieving its purpose. Therefore, we would like to take this opportunity to thank all those people who have helped me in presentation of this project, guiding me towards the achievement of its purpose. It gives us great pleasure and privilege to acknowledge to our college SHRI CHIMANBHAI PATEL INSTITUTE OF MANAGEMENT AND RESEARCH.
I am also thankful to our faculty – PROF. RAJESH DESAI for providing me guidance regarding internship and project report.
I take this opportunity to express my profound gratitude and deep regards to my guide Mr.Hitendra Makwana for his guidance, monitoring and constant encouragement throughout the course of this thesis. The blessing, help and guidance given by them time to time shall carry me a long way in the journey of life on which I am about to embark. I also take this opportunity to express a deep sense of gratitude to the manager of GMC Bank, Mr. Amit Shah for his cordial support, valuable information and guidance, which helped me in completing this task through various stages. I am obliged to staff members of (GMC Bank), for the valuable information provided by them in their respective fields. I am grateful for their cooperation during the period of my assignment.

TABLE OF CONTENTS
SR NO PARTICULARS
PART 1 INTRODUCTION
1.1 BANK
1.2 INTRODUCTION OF CO OPERATIVE BANKS
1.3 CLASSIFICATION OF CO OPERATIVE BANKS
1.4 ROLE OF COOPERATIVE BANKS
PART 2 DETAILS OF GUJARAT MERCANTILE CO OPERATIVE BANK
2.1 HISTORY
2.2 RBI GUIDELINES
2.3 FACILITIES
2.4 SERVICES
2.5 SWOT ANALYSIS
PART 3 INTRODUCTION TO LOANS
3.1 HOUSING LOAN
3.2 BUSINESS TERM/MORTGAGE LOAN
3.3 VEHICLE LOAN
3.4 EDUCATION LOAN
3.5 GOLD LOAN
PART 4 LITERATURE REVIEW
PART 5 RESEARCH METHODOLOGY
5.1 PROBLEM STATEMENT
5.2 OBJECTIVE OF STUDY

5.3 SCOPE OF STUDY
5.4 RESERCH DESIGN
5.5 SAMPLING
POPULATION
SAMPLE SIZE
SAMPLE TECHNIQUE
SAMPLING UNIT
SAMPLING INSTRUMENT
5.6 DATA COLLECTION SOURCES
5.7 BENEFICIARIES FOR STUDY
5.8 LIMITATIONS OF STUDY
PART 6 DATA ANALYSIS AND INTERPRETATION
PART 7 KEY FINDINGS AND RECOMMENDATIONS
PART 8 LEARNING FROM SIP
PART 9 CONCLUSION
PART 10 REFERENCE
PART 11
ANNEXURE

PART 1
INTRODUCTION

1.1 Bank
Banks are the financial institutions which accept deposits and give loans to the people for the purpose of consumption.According to section 5(b) of the Banking Regulation Act, 1949, “banking” means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdraw able by cheque, draft, and order or otherwise. Banking Company means any company which transacts the business of banking in India. No company can carry on the business of banking in India unless it uses as part of its name at least one of the words bank, banker or banking.

Banking in India has a long history starting from the late 18th century. The modern banking started from 1770 in the name of “Bank of Hindustan” by English agency ‘House of Alexander ; Co’ in Kolkata but it was closed in 1832. Further in 1786 “General Bank of India” was started and it failed in the year 1791.

The evolution of banking in India can be divided into following phases

In 1839, ‘Union Bank’ was the India’s first bank and it established by some Indian merchants in Calcutta but it could not survive due to economic crisis. 
In 1865, “Allahabad Bank” was established as a joint stock bank.  This bank is considered as the oldest bank in India.

After 18th century, The Indian banking had experienced tremendously. The initial banks in India were engaged only in financing activities. Banking industry in the pre-independence phase came up with the Presidency Banks, which were transformed into the Imperial Bank of India and then into the State Bank of India. The initial days of banking industry saw a major private ownership and a highly volatile work environment.
Public ownership and accountability were made with nationalization in 1969 and 1980 which transformed the banking in India. The industry in recent times has recognized the importance of private and foreign players in a competitive market and has moved towards r liberalization.

In the evolution of the banking industry spanning over two centuries, immense development have been made in terms of the regulations, the ownership structure, products and services offered and the technology deployed.

Types of banks
Commercial banks:Commercial banks are the most important types of banks. It focuses on business. In other words, commercial banks are essentially profit-making institutions.

Development banks:Development banks are part of a country’s capital market. In India they are called public financial institutions. They supply long-term finance to large and medium industries.

Co-operative banks:The co-operative banks are set up under the provisions of the Co-operative Societies Act. Such banks provide credit to agricultural sector at low rates of interest. However, some co-operative banks also function in rural areas.

Land development banks:
These banks (land mortgage banks in India) provide long-term credit to farmers for land development. They also give long-term loans to farmers for acquiring new land.

Investment banks:When a corporate entity wants to issue new securities, this bank serves the role of an intermediary. They sometimes also make investment in these companies through purchase of equity shares.

Merchant banks:A merchant bank helps a company to sell its new shares to the general public. The main job of a merchant bank is raise money to lend to industry.
Foreign banks:There are many foreign banks in India like the Citi Bank, the Hong Kong and Sanghai Bank, The Bank of America and Abu Dhabi Commercial Bank. These are not nationalized institutions like Indian commercial banks.

Central bank:The Central bank is the bankers’ bank. It controls the entire banking system of the country. The Reserve Bank of India (RBI) is India’s central Bank
1.2 INTRODUCTION TO CO-OPERATIVE BANK
The co –operative Banks Act, 2007 defines a co-operative bank as a co-operative registered as a co-operative bank in terms of the act whose members
Are of similar occupation or profession or who are employed by a common employer or who are employed within the same business district.

Have a common membership in an association or organization, including a business, religious, social, co-operative, labor or educational group.

Reside within the same defined community or geographical area.

They provide limited banking products and are specialists in agriculture-related products.

Cooperative banks are provides finance to agricultural activities, small-scale industries and self-employed workers.

Co-operative banks function on the basis of “no-profit no-loss”.

Anyonya Co-operative Bank Limited (ACBL) is the first co-operative bank in India located in Vadodara, Gujarat.

7 co operative principles:
Voluntary, open ownership.

Democratic owner control
Owner economic participation
Autonomy and independence
Education, training and information
Cooperation among cooperatives
Concern for the community
History of cooperative bank
Indian Cooperative Banks was born out of distress prevalent in Indian society.

The Cooperative Credit Societies Act, 1904 led to the formation of Cooperative Credit Societies in both rural and urban areas. The act was based on recommendations of Sir Frederick Nicholson (1899) and Sir Edward Law (1901). Their ideas in turn were based on the pattern of Raiffeisen and Schulze respectively.

The Cooperative Societies Act of 1912 further gave recognition to the formation of non-credit societies and the central cooperative organizations.

In independent India, with the onset of planning, the cooperative organizations gained more leverage and role with the continued governmental support.

Machlagan Committee in 1915 highlighted the deficiencies of in cooperative societies which seeped-in due to lack of proper education to the masses. He also laid down the importance of Central Assistance by the Government to support the movement.

The Royal Commission on Agriculture 1928 enumerated the importance of education of members/staff for effective implementation of cooperative movement.

Saraiya Committee, in 1945, further recommended the setting up of a Cooperative Training College in every state and a Cooperative Training Institute for Advanced Study and Research at the Central level.

Central Committee for Cooperative Training in 1953, constituted by RBI for establishing Regional Training Centres.

Rural Credit Survey Committee, 1954 was the first committee formed till then to first delve into the problems of rural credit and other financial issues of rural society.

Indian co-operative structures are one of the largest networks in the world with more than 200 million members.

1.3 CLASSIFICATION OF CO-OPERATIVE BANK
The co operative banking structure of India comprises of:
1. Urban Co operative Banks
2. Rural Co-operative Banks
Some co-operative banks are scheduled banks and others are non scheduled banks. For eg, State Co-operative banks and some Urban Co operative banks are scheduled banks but other co-operative banks are non-scheduled banks.

Scheduled banks are those banks which have been included in the second schedule of the Reserve Bank of India Act, 1934.

URBAN CO OPERATIVE BANKS
Urban Co-operative Bank also known as Primary Co-operative Banks by Reserve Bank of India. The RBI defines Urban Co-operative banks as” small sized co-operatively organized banking units which operate in metropolitan, urban and semi-urban centers to carter mainly to the need of small borrowers, viz.owners of small scale industrial units, retail traders, professional and salaries classes”
RURAL CO-OPERATIVE BANKS
Rural Co-operative Banking plays a major role in satisfying the needs of rural population of India. It provides funds to agricultural and rural sector. Rural Co-operative Structure is divided into 2 parts:
I. Short-term Rural Co-operatives
II. Long-term Rural Co-operatives
I. SHORT-TERM RURAL CO-OPERATIVE BANKS
The Short-term Rural Co-operative provides loans to farmers and rural artisans for short term purpose.

II. LONG-TERM RURAL CO-OPERATIVE BANKS
The long-term rural co-operative provides medium and long-term loans for making investments in agriculture, rural industries and housing.

1.4: ROLE OF CO-OPERATIVE BANK
The distinctive feature of Co-operative bank is to provide service at a lower cost. Co-operative banks in rural area plays an important role, and their business in the urban areas also has increased tremendously in recent years mainly due to increase in the number of primary cooperative banks. In rural areas, as far as the agricultural and related activities are concerned, the supply of credit was inadequate, and money lenders would exploit the poor people in rural areas providing them loans at higher rates. So, Co-operative banks mobilize deposits and purvey agricultural and rural credit with a wider outreach and provide institutional credit to the farmers.

Co-operative bank has also been an important instrument for various development schemes, particularly subsidy-based programmers for poor.
Co Operative Banks in rural area mainly finance agricultural based activities including farming, dairy, fish culture, along with some small scale industries and self employment activities. The importance of Co-operative banks in such area is mainly due to the fact that, they provide sustainable development to agriculturists. This is done through developing infrastructures and support facilities.

Co Operative Banks in urban area finance various categories of people for self employment, industries, small scale units and home finance. They provide credit to small scale industrialists, employees, and urban people.

PART 2
DETAILS OF GUJARAT MERCANTILE CO OPERATIVE BANK

2.1 HISTORY OF GMC BANK
Considering the need for banking services in Ghodasar area of Ahmadabad, Gujarat Mercantile Co-operative bank has started its operation on August 24, 1999. Within 15 years of duration our bank is being known as one of the most reputed bank of the city.
As on march 2015, the bank has achieved more than 2767 members and 91.42 lacs rupees of share capital.
They are constantly getting class “A” in auditor’s report since inception.

Gujarat Mercantile Co-operative bank Ltd is a name of the bank where the bank is ready to serve its banking services to all customers.

The bank is governed by the Gujarat co-operative societies act, a legislation enacted by the state of Gujarat in India.

Gujarat Mercantile Co-operative bank Ltd was promoted by an experienced and visionary entrepreneur named Mr. Dahyalal I Thakkar; he is the founder chair person of the bank and continues to supervise its growth and development.

The bank started off with exemplary combination of talented boards and potential staff team, with extreme professionalism and well designed contours of working method.

The bank emerged as an exemplary unit offering a wide range of specialized service in various sector. Unlike majority of the banks were working timing are linked with employee-convenience, Gujarat Mercantile Co-operative bank Ltd decided to hold timing as per convenience of the cluster of client whom it caters.
Purpose of Gujarat Mercantile Co-operative bank Ltd to open in Ghodasar is to provide good service and banking facility to customers because there is no any single bank in this area.

Type: Co-operative
Industry: Banking, Financial servicesFounded:12 December, 1998
Headquarter: Ghodasar, Ahmadabad, India
License No:GUJ1674
Key people:Dahyalal I Thakkar(Chairman)
Products: Consumer banking,
Corporate banking,
Finance and insurance,
Investment banking,
Mortgage loans,
Private banking,
Wealth management.

Profit: 36.31 lacs (2017-18)
Total equity: 100.13 lacs (2017-18)
Employees: 16 (2017-18)
Board of Directors of GMC Bank
Sr. no. Name DesigNATION
1 Dahyalal. Thakkar Chairman
2 Rameshkumar Akhani Vice Chairman
3 Arvindbhai Vakhtaria Managing Director
4 Pankajbhai P. Thakkar Director
5 Yatinbhai S. Gupte Director
6 Vasant M. Anarkat Director
7 Laxmichand N. Krishnachandani Director
8 Ashokbhai R. Desai Director
9 Sukhdevbhai H. Thakkar Director
10 Rishibhai L. Vakhtaria Director
11 Hemantbhai D. Mandloi Director
12 Shekhar S. Yadav Director
Management Of GMC Bank
sr.no. NAME Designation
1 Mahendra Gupta C.E.O
2 Amit Shah Manager
3 Hitendra Makwana Head of Loan Department
4 Ketan Patel Officer
5 Piyush Patel Officer
6 Pushpa Koshti Cashier
7 Bharat Desai Head of clearing Department
8 Sandip Rajput Clerk
9 Isha Patel Clerk
10 Hanshraj Joshi Clerk

Organizational chart

Vision of the bank
The prime objective was to work for the less fortunate members of the community by enhancing their economic enterprises and create ample funds for providing financial aid to all deserving members.

Growth of the bank
T he Working Capital of the bank is Rs.296752000 for the year 2017-18. The net profit of for the year 2017-18 is Rs.3270613.85. Profit after tax is 2276613.85.

The distribution of profit for the year 2017-2018 is as follow:
Particulars Percentage (%) Amount
Reserve fund 25 567653.46
Dividend 12 1287144.00
Education Fund 2 45412.28
Bad Debt Reserve 15 340592.08
Charity Fund 1 22706.14
Members Welfare Fund 15 1065.88
Building Fund 70 4974.13
Erosion Fund 10 710.59
Dividend Equalization 5 355.29
Financial Strength about bank of Last five years:
(Amt in lacs)
Particular 2012-2013
2013-2014 2014-2015 2015-16 2016-17
Audit std A A A A A
Share capital 82.47 89.57 91.42 96.68 100.13
Reserve and other fund 129.96 161.08 182.68 213.18 239.98
Deposits 1718.14 1877.00 1956.62 2068.86 2319.61
Loan and advances 733.74 895.80 874.24 1035.39 1039.62
Working capital 2010.74 2174.68 2288.42 2446.53 2765.28
Dividend 12% 12% 12% 12% 12%
Profit 51.65 41.53 48.53 44.30 36.31
2.2 RBI GUIDELINES
1. Deposit
The total deposits of 20 top depositors should be less than the 20% of total deposits of Bank.

2. CRAR
Credit Risk Asset Ratio
The minimum CRAR for co-operative banks is 9%.

CRAR = Tier 1 + Tier 2
It should not be less than 9%.

Tier 1:
Paid up capital
Perpetual non-cumulative preference share
Free Reserve
DTL-Deferred Tax Liability
Tier 2:
Undisclosed Reserve
Revaluation Reserve
General provision ; loss reserve (1.25% of total risk weighted asset)
3. CD ratio:
Credit Deposit ratio
CD ratio of the banks should be less than 70%.

CD ratio = Loans/Deposits*100.

4. NDTL
Net Demand Time Liabilities.

NDTL is a summation of;
All deposits
Interest payable to all accounts
Pay slip issue
Demand draft payable
Provision for expenses
Share money application
Secured deposits (Agent security )
Swach Bharat (0.5%)
Service charge (14%)
Krishikalyancess (0.5%)
SLR: Statutory Liquid ratio
21.25% of NDTL should be invested in Government securities.

CRR: Cash Reserve Ratio
CRR should be 4% of NDTL amount
5. Inter –Bank Deposit 🙁 Prudential)
Interbank deposit should be not more than 20% of last year’s total deposit.

Maximum 5% deposit in individual bank.

Every month the interbank deposit report is submitted to RBI by all Co-operative banks
Bankers List:Syndicate Bank (Ashram Road, Ahmedabad)
Axis Bank (Maninagar, Ahmedabad)
Development Credit Bank (C. G. Road, Ahmedabad)
The Gujarat State Co-operative Bank Ltd (Relief Road, Ahmedabad)
HDFC Bank (Navrangpura, Ahmedabad)
The Ahmedabad District Co Op Bank Ltd (Income Tax, Ahmedabad)
Dena Bank (Ahmedabad)
State Bank Of Patiala (Maninagar, Ahmedabad)
State Bank Of India (Isanpur, Ahmedabad)
6. Exposure
Co-operative banks can be grant 15% amount of total worth as a loan to individual & 40 % amount of total worth to the group as a loan.

Credit Exposure (Loans & Advances)
Investment Exposure (Non SLR)
2.3 FACILITIES:
DEPOSIT FACILITIES
Saving Account
Saving accounts are primarily a sense of savings for the future, accumulating funds over a period of time. Account holder cannot withdraw above Rs.10000 through withdrawal slip. The rate of interest payable is 4%.

2. Current Account
Current bank account is opened by businessmen who have a higher number of regular transactions with the bank. It includes withdrawals and contra transaction. It is also known as demand deposit account.

3. Fixed deposit
Person who wants to get monthly or quarterly interest than he must has an account in GMC bank.

As per RBI rules, if any customer makes F.D up to Rs.100000 than GMC Bank take insurance on F.D amount on behalf of customer because in future, if bank is not able to return customer’s F.D amount.

4. Recurring deposits
The term recurring deposit refers to the periodic placement of a fixed sum of funds with a bank or financial institution into a special term account, with a specified tenure, generally between one and five years. At the end of the tenure, the funds are typically withdrawn by the depositor with accrued interest.
Minimum amount that can be deposited in Rs.100 at regular intervals.

The period of deposit is minimum 12 month and maximum 10 year.

The rate of interest on recurring is 9.5% and 10 % of senior citizen.

5. Daily Deposits
Minimum deposit of Rs. 50/- per day or multiple ; monthly deposit of Rs. 100/- per month or multiple.

Interest rate will be 4.5%.

DEPOSIT INTEREST RATES
46 DAYS TO 180 DAYS 5%
181 DAYS TO 1 YEAR 6.25%
ABOVE 1 YEAR UPTO 3 YEARS 7.25%
ABOVE 3 YEARS UPTO 5 YEARS 7.50%
5 YEARS ABOVE 7.25%
SAVINGS ACCOUNT 4%
DAILY DEPOSIT SCHEME 4.50%
** Above 1 Year ; Monthly Income Scheme Is Available (Senior Citizen Gets 0.50% More)
** Above Interest Rates Also Liable For Recurring Deposit Scheme.

LOAN FACILITIES
Personal loan
Personal loan is available up to 50000 to meet with the expenses of social, religious occasion, medical treatment, minor repairs to property etc.

Auto loan
Auto loan is available for the purchase of two wheeler, three wheeler, four wheeler and commercial vehicles. Bank will give loan up to 80% quotation. For 2 wheeler and commercial vehicle rate of interest is 14% and for 4 wheeler, the rate of interest is 9%
Housing loan
Housing Loan up to Rs.47/- lacs is available for construction/purchase of old/new flat, bungalow, raw house and also for carryout addition/alteration in the existing residential house. The rate of interest is 8.50% and Maximum repayment period is 20 years.

Education loan
Education loan is available up to Rs: 10/- lacs for higher study in the faculty of Medical, Engineering and IT. Students who have secured 60% and above marks in 12th standard can avail loan facility.

Consumer durable loan
Consumer durables loan is available for purchase of T.V., Refrigerator, Furniture, Computer, Musical System, A.C. etc
Machinery term loan
Machinery term loan is available for purchase of old/new machinery. Trading / Manufacturing units, Traders, Business community can avail credit facility for development of business. Bank will sanction loan up to 70% of quotation amount for new machinery. In case of old machinery, valuation report of the machinery is required from the approved valuer.

Hypothecation loan
Hypothecation of stock / book-debts credit facility is available as a working capital for development of business against prime security of stock or book debts. Trading / Manufacturing units, Traders, Business community can avail the credit facility. The rate of interest is 12% and tenure up to 1 year.

Gold loan
Time period of loan is up to 12 month than interest rate is 15 %, if more than 12 month than bank charge interest rate 18%.

Lending amount is up to Rs.100000 or as per the decision of Board.

2.4 SERVICES:

2.5 SWOT ANALYSIS
A: Strength:
Business among members: The bank focus on development of member.

Trust within the member: Trust is the key factor for effective functioning of cooperative
bank.

Affordable interest rate: The bank offers of loans at reasonable interest rates to their
member
Non-discrimination against caste, class, creed, religion, and gender.

Leaders are elected by the members of the cooperative society who work alongside the
employed professionals.

B: Weakness:
Staff recruitment is not done properly in Cooperative bank.

There is a shortage of manpower.

Lack of technical knowledge: The members generally lack domain certification i.e.
financial degree etc.

Lack of infrastructure: the banks lack in implementation of latest technology such as ATMs
and Computers.

Small area of operation: the bank operates only in limited area.

Lack of professionalism: the members lack right training and education that is necessary
for customer satisfaction.

Poor image in the minds of people about cooperative institutions.

Lack of initiative and innovation among the staff and members.

Absence of job rotation and transfer of employees from one branch to another.. C: Opportunities:
Collective efforts not only enhance the chances of success but also increase the economy
of scale by reducing the per capita cost of operation and increase productivity.
Bank has very good opportunities in Industrial area.

The bank should introduce new products and schemes to bring in new customers. It should
also build relationships with existing customers to retain them.

The bank should come up with better governance and be more transparent, in order to
restore customer confidence in the processes of the bank.

D: Threats:
Acute competition in the market
Increasing incidence of frauds and misappropriation
Higher cost of management especially for interest on deposits and establishment cost.

Increasing litigation between management and employees.

External pressure to finance ineligible borrowers.

Departmental interference in financial matters in various form

PART 3
INTRODUCTION TO LOANS

3.1 HOUSING LOAN
3.2 BUSINESS TERM/MORTGAGE LOAN
3.3 VEHICLE LOAN
3.4 EDUCATION LOAN
3.5 GOLD LOAN

Housing Loan

Housing Loan up to Rs.47/- lacs is available for construction/purchase of old/new flat, bungalow, raw house and also for carryout addition/alteration in the existing residential house.

Applicant details:Copy of Last Three years income tax return, Pan Card
If Applicant is businessman in that case last three years copies of balance sheet, income tax return of the proprietor/partner, statement of capital account.

If property is to be purchased under housing scheme, the copies of documents, such as share certificate, allotment-letter, sale deed, revenue records of 7/12.

Copy of authorized building plan.

Copy of receipt of advanced payment-made/copy of agreement to sale
Copy of title clearance certificate given by the advocate/ solicitor.

Consent letter from the society about noting of charge of the bank.

Three copies of Photograph
Copy of PAN Card
Address proof – electric bill /telephone bill (any one)
Photo proof – Pan card / Voter card / Driving license (Any one)
Guarantor details:Photograph-2 Copies
Last tax bill
Last income tax return copy
Address proof – electric bill /telephone bill (any one) As per KYC norms
Photo proof – Pan card / Voter card / Driving license (Any one) As per KYC norms
Conditions:Two guarantors are required.

Original documents of property to be submitted to the bank. Registered mortgage of property to be done in favor of bank. Bank charge will be noted in society’s book.

Valuation of the property will be required for old property. Bank will give loan of 80% of valuation amount.(for old property)
Bank will give loan if property is having N.A.N.O.C and BU permission.

Applicant will have to take insurance of the building in favor of bank.

One guarantor required for loan.

Loan amount with interest will be repaid within 180 equal monthly installments.

Applicant has to submit original share certificate of the Society/Association, Municipal Tax bill, Tax receipt, sales deed etc, for registered mortgage of the property.

Title clearance and valuation report will be done by approved lawyer and value of the bank. Applicant has to pay their fees.

Applicant has to submit 30 cheques for repayment of installments and remaining cheques as per bank’s instruction.

Applicant has to take share @2.50% of the limit.

No any Processing charges
Rate of interest Tenure
8.50% 20 years

Business Term Loan/ Mortgage Loan
Business Term Loan is available as working capital against registered mortgage of residential, office, shop, go down, and shed building as a prime security. Trading/Manufacturing units, Traders, Business community can avail credit facility for development of business.

Applicant details:Last three years balance sheet, copy of 3 year income tax return , copy of Partner’s personal return in case of firm, Memorandum and Article of Association in case of limited company, resolution for loan application.

Three photographs of Applicant.

Business proof of Applicant.

Applicant Pan Card / Partner’s Pan Card / Limited Company’s Pan card.

Bank statement of last 2 years.

Applicant has to show all original documents to the bank for verification with photo copy. Original documents will be returned to applicant after verification.

Address proof – electric bill /telephone bill (any one) As per KYC norms
Photo proof – Pan card / Voter card / Driving license (Any one) As per KYC norms
Guarantor details:Photograph-two copies
Last tax bill
Last 3 year income tax return copy
Address proof – electric bill /telephone bill (any one) As per KYC norms
Photo proof – Pan card / Voter card / Driving license (Any one) As per KYC norms
Conditions:Two guarantors are required.

Original documents of property Such as share certificate, sale deed, tax receipt, allotment letter are to be submitted to the bank. Registered mortgage of property to be done in favor of bank. Banks charge will be noted in Association / society’s book.

Bank will give loan if property is having N.A.N.O.C and BU permission.

Applicant will have to take insurance of the building in favor of bank.

Title clearance and valuation report will be done by approved lawyer and valuer of the bank. Applicant has to pay their fees.

Applicant has to provide two guarantors.

Business-mortgage loan is to be repaid with interest within 60 equal monthly installments. Whereas business mortgage overdraft facility is subject to renewal after 12 months.

Limit will be decided on turn over basis i.e. 20% of the turnover or 70% of the value of the property, whichever is less.

Applicant has to submit 30 cheques for repayment of installments and remaining cheques as per bank’s instruction.

Applicant is required to submit stock statement creditors list and statement of book-debts on half yearly basis i.e. 30th September and 31st march each year. And the copy of balance sheet as on 31st march every year.

Applicant has to take share @2.50% of the limit.

Processing charges of 0.5% will be levied on sanction.

Rate of interest Tenure
12.40% 3 to 10 years
Vehicle Loan:(Two & four wheeler)

Following documents are required for vehicle Loan:-
Hypothecation of Agreement Annexure
Guarantee Agreement Annexure (IT return, address & ID proof, Photo)
Copy of Authority Letter A-279
Installment Letter in A-281
Registered with RTO Office done in 35(A)
Arrangement Letter.

Vehicle Quotation
KYC Proof
Bank Statement(Last 6 Month’s)
Guarantor’s proof
Required all proof mention above except Quotation
Following documents are required after granting vehicle loan.

1 Bill of vehicle
2 Payment slip
3 Insurance copies
4 RC books
Condition:
Bank gives a loan on 80% of quotation (base) price. For old car, applicants have to submit valuation report. Bank will give loan up to 60% of the valuation report.

Particular MARGIN Interest rate
Two wheeler 20% 14 %
Four wheeler 20% 9 %
Commercial vehicle 20% 14%

Education LoanEducation loan is available up to Rs: 10/- lacs for higher study in the faculty of Medical, Engineering and IT. Students who have secured 60% and above marks in 12th standard can avail loan facility.

Applicant Details:Applicant has to submit copy of mark sheet, result sheet, school leaving certificate pertaining to 12th standard.

Photograph-two copies
Copy of 3 year income tax return of the father who will be Co. Borrower for the loan.

Copy of PAN card of the co-borrower.

Bank Statement of last two years.

Address proof -Electric bill/ telephone bill (any one)
Photo Proof- Voter card / Driving license (any one)
Guarantor details:Photograph-2 Copies
Last tax bill
Last 3 year income tax return copy
Address proof – electric bill /telephone bill (any one)
Photo proof – Pan card / Voter card / Driving license (Any one)
Conditions:Two guarantors are required.

Father of the student has to submit document of the property for registered mortgage in favor of bank. Bank charge will be noted in Association / Society book.

Valuation of the property will be required in case of old property.

Title clearance and valuation report will be done by approved lawyer and valuer of the bank. Applicant has to pay their fees.

Bank will keep 25% margin on tuition fee, Hostel fee or total package of fees.

Applicant has to submit admission letter and details of college / University.

Applicant has to submit progress report of each semester.

Loan is to be repaid along with interest in 60 equal monthly installments. The repayment will start as soon as applicant completes study and obtain degree. During study period the applicant has to pay interest on regular basis.

Father will stand as co-borrower.

Applicant has to provide one guarantor.

Applicant has to submit 30 cheques for repayment of installments and remaining cheques as per bank’s instruction.

Applicant has to take share @ 2.50% of the limit.

Processing charges of 0.5% will be levied on sanction.

Gold Loan:

This type of the loan given to nominal member/share holder of the bank.

Lending amount is up to Rs.100000 or as per the decision of Board.

Before sanction loan, get “fine” of ornaments through goldsmith who is appointed by GMC Bank.

After getting “fine” report through goldsmith, bank fix loan amount.

This type of Loan has been given only individual.

Time period of loan is up to 12 month than interest rate is 15 %, if more than 12 month than bank charge interest rate 18%.

Account holder has to pay interest every month.

Bank gives loan 75% of gold amount.

Party has to pay charge of gold value.

PART 4
LITERATURE REVIEW

.
S Krishna, VB Gopal (2017) in their study diversifying activities of a rural co operative bank reported that the short term co operative credit structure ,which is primarily crated for the provision of agriculture credit, should provide at least 15% of agriculture credit in its operational area, gradually increasing to 30%.

Chavan, P. ; Gambacorta, L Empir Econ (2018) in their research title “Bank lending and loan quality: an emerging economy perspective” analyses how non performing loans in the emerging economy behave through cycle.1% point increase in loan growth is associated with an increase in NPLs over total advances of 4.1% in the long run with the response being higher during expansionary phases.

Sandhu (2013) evaluates the access of formal housing finance in the context of the urban poor in India. The study uses qualitative method of analysis and presents the analysis in the descriptive approach. Author found that the housing finance set-up favors the higher income groups and sidelines the low income groups, largely due to the prerequisites for accessing housing finance Its associated bank group and New Private sector bank group are more successful as compared to other bank groups as their percentage increase in income side is more than the percentage increase in expenditure side.

Kavitha N (2012) in their article entitled, “An Insight into Determinants of Funds
Management In Indian Scheduled Commercial Banks” Analyze the Banks in India, R.B.I., especially SBI Group, Nationalized Banks Group and the Private Banks Group They use variables like Government Securities, Assets, Investments, Approved Securities, Investment, Deposits, Return on Investments, Debt Equity Ratio, Capital Adequacy Ratio, Term Deposits, Total Deposits, Liquid Assets, Provisions, Contingencies, Cash, Deposits, Other Assets, Credit Ratio and Investment Deposit Ratio, Deposits and Credits of Scheduled Commercial Banks per Office, Role of Scheduled Commercial Banks in the Priority Sector Lending, diagnostic and exploratory in nature and makes use of secondary data. This study is confined only to the specific areas such as Aggregate Deposits mobilized by these banks, Loans and Advances, Credit-Deposits Ratios, Investment-Deposits Ratios, for the ten years’ period starting from the year 2000 to the year 2009. In order to analyze the data and draw conclusions in this study, various statistical tools like Descriptive Statistics, test and Correlation have been applied. This research paper reveals that the operational performance of Indian Scheduled Commercial Banks has improved since the year
2000. Aggregate deposits show a constant increase. The percentage of time deposits to aggregate deposits mobilized by the Scheduled Commercial Banks was high in 2009. It was found that there is a positive correlation between demand deposits and time deposits. Credits deployed and investments made by these banks have shown significant performance. The Indian Scheduled Commercial Banks have been more efficient by maintaining the C-D ratios in an increasing trend over the period of the study
Raikar (2011): made an attempt to study the performance of District Central Cooperative Banks
(DCCBs) in India. For analyzing the performance, ratio analysis, and Data Envelopment Analysis
(DEA) were used. It was found that, number of CCBs on efficient frontier and above efficiency score showed a fluctuating but declining trend, this indicates declining efficiency of CCBs over the study period. It was also found that there is significant growth of CCBs in terms of financial parameters, i.e., reserves, deposits, investments, loans & advances, income etc. But the performance was deteriorating due to weak capital base and huge NPAs. It was suggested that to improve the performance of CCBs, there was need to improve their recovery performance.
Gayathri B.R. (2010) reported that the expectations the consumers should be under stood and powerful strategies are to be implemented by the banks. The value of services provided should be measured in terms of quantity and quality.
Ganesa. N (2009) A study on “Data Envelopment Analysis of State and District Co-operative Banks in India: Exploratory results” in 2009. A sample size of 30 State Co-operative Banks (SCBs) and 20 District Central Co-operative Banks (DCCBs) in India were selected for the study purpose.

It covered a period of 2002-06. The researcher analyzed the performance of SCBs and DCCBs with the help of direct empirical method. It calculated the self-efficiency of each SCB and DCCB in each state by applying Data Envelopment Analysis (DEA). The efficiency score was derived after completing the regional wise grouping of SCBs and DCCBs. The study highlighted the performance of SCBs and DCCBs in terms of technical efficient score.
Rutamu and Ganesa (2008) in their research article titled, “Profit and Profitability of Co-operative Banks: The Case of Banques Popularizes (Peoples’ Bank) of Rwanda” stated that financial institutions in general and banking sector in particular play a strategic role in the financing stage of capital formation. In the banking sector, cooperative banks undertake the responsibility of mobilizing the scarce savings of the community and channelizing these savings for productive investment in the economy. They discussed the performance of Banques Popularizes and the determinants of its Profit and Profitability. It had been noted that the net profit was not distinguished from Gross Profit in the years 1994-2004. The empirical results from the six models of Profit and Profitability showed that total assets per branch, other earnings and total deposits per branch were the determinants of profit in Banques Popularizes, while total assets per branch, and the number of branches were the determining variables of profitability of Banques Popularizes. The low return from investment of Banques Popularizes indicated a lack of cost control and unsatisfactory sources of income other than interest from advances. It was, therefore, crucial that Banques Popularizes should make further effort for the improvement of its efficiency in operations so that the low profitability might be uplifted
Heiko and Martin (2007) IMF conducted a study on co-operative banks and their financial stability. The study was based on individual bank data drawn from the Bank Scope Database for 29 major advanced economies and emerging markets that were members of the Organization for Economic Co-operation and Development (OCED). They found that co-operative banks in advanced economies and emerging markets had higher scores than commercial banks, suggesting that co-operative banks were more stable. These findings, perhaps somewhat surprising at first, were due to much lower volatility of co-operative banks’ returns, which offsets their relatively lower profitability and capitalization.

Singh and Singh (2006) examined the in study titled, “Funds Management in Central
Cooperative Banks-Analysis of Financial Margin” attempted to estimate the impact of identified variables on the financial margin of the central co-operative banks in Punjab with the help of correlation and multiple step-wise regression approach. The ratio of own funds to working funds and the ratio of recovery to demand were observed to be having positive significant influence on financial margin, whereas over dues to total loans were found to be negatively associated with the concerned parameter. A high percentage of own funds and timely recovery of previous loans outstanding, as a source of funding new loans by the bank, increased the financial margin in these banks
DJ hand, MJ Crowder during (2005) measuring customer quality in retail banking describe such a model that separates the observed variables for a customer into primary characteristics on the one hand and indicator of previous behavior on the other, and links the two via a latent variable that is identified as customer quality.
Ramakrishna Reddy G. and SHREE Bhargavi. T. (2004) examined the study entitled “An appraisal of Indian Securities was to be assessed at regular intervals for the proper provisioning of doubtful and loss assets. Banking from NPA Perspective” by Ramakrishna Reddy G. and Shree Bhargavi. T. was reported in 2004. The researcher highlighted the impact of increase in NPA on bank’s profitability, and on bank’s existence. The researcher suggested some guidelines for the effective management of NPAs, viz., (a) early for starting stage of sickness have to be identified and proactive remedial action to be initiated warning signals (b) Attention had to be paid to high value NPAs. (c) Banks had to take up the rehabilitation of deserving units only. (d) Securities were to be assessed at regular intervals for the proper provisioning of doubtful and loss assets.
Samwel Kakuko Lopoyetum (2003) examined the “Performance Appraisal with Special
Reference to Profitability and Viability Dimension-Uthamapalayam Urban Co-operative Bank, Theni District” was made by Samwel Kakuko Lopoyetum in 2003. The research aimed at studying 48 the growth of business operations, profitability and viability of Uthamapalayam Urban Cooperative Bank for the period 1992-2001. It pointed out the fact that membership, share capital, reserves, loan and advances grew steadily over the period. The trend of loan recovery registered wide fluctuations. The researcher applied number of ratios to assess the performance of the bank and inferred that better quality of services and efficient management were the main reasons behind the success of the bank.
.

PART 5
RESEARCH METHODOLOGY

5.1: PROBLEM STATEMENT:

Co-operative banks follow a policy of restricted sanctioning of loans because of less availability of fund. Hence this study is undertaken in order to find out the perception of consumer towards loan facility provide by GMC
5.2: OBJECTIVES OF THE STUDY
To understand the structure of the Co-operative Banking Industry
To know different type of loans preferred by different sets of customers.

To know the satisfaction level of the customers from Banks lending policies.

5.3: SCOPE OF THE STUDY
The information and the data related to the project will be collected from various people who borrow money from Co-operative bank. Primary data will be collected from Ahmedabad, Gujarat.

5.4: RESEARCH DESIGN
Descriptive research is used in this study in order to identify the lending practices of Bank and determining customer’s level of satisfaction. The method used was administration of a structured questionnaire which was personally filled by the researcher through interaction with the customers of Gujarat Mercantile Bank.

5.5: SAMPLING
(A) POPULATION
The population in our study includes all 200 customers who have taken loan from the bank.

(B) SAMPLE SIZE
A sample of 100 is chosen for the purpose of the study.

(C) SAMPLING TECHNIQUE
The sampling technique that will be used for the purpose of the study is Convenience Sampling.
(D)SAMPLING UNITS
The Study population includes all the customers of GMC

(E)RESEARCH INSTRUMENT
Questionnaire will be used as the instrument for collecting the primary data.

5.6: DATA COLLECTION SOURCES
PRIMARY SOURCES
Questionnaires

SECONDARY SOURCES
Information collected from bank, Internet, Broachers, Circulars of GMC
5.7: BENEFICIARIES OF STUDY
Bank
Customer
Society
5.8: LIMITATION OF THE STUDY
The study is limited up to GMC Ghodasar Branch Ahmedabad area only.
The main source of the data for the study was primary data with the help of self-administered questionnaires. Hence, the chance of biased information is more.

Due to time constrain limited study on the project has been done.
Accurate findings and results cannot be generated because of limited sample.

PART 6
DATA ANALYSIS AND INTERPRETATION

1) Gender
No of respondents Percentage
Male 64 64
Female 36 36
Total 100 100

INTERPRETATION:
From the above graph, majority of our respondents are male customers which is 64% and females customers are 36%.

2) Age Group
No of respondents Percentage
18-22 10 10
23-35 40 40
36-60 45 45
Total 100 100

INTERPRETATION:
From the above graph there is comment that majority of our respondents are in the age group of 36-60 also to the contrary the negligible contribution is of the age group between 18-22 i.e. 10% and above 45% of the respondents fall under 36-60 age group which is comparatively high percentage than other age groups. There are also 40 % respondents who fall under age group of 23-35.

3) Income
No of respondents Percentage
Below 2,00,000 48 48
2,00,001-5,00,000 31 31
5,00,001-10,00,000 14 14
10,00,000 above 7 7
Total 100 100

INTERPRETATION:
From the above data there are 48% of the respondent’s income is below 2, 00,000. Followed by 31% respondent’s income is Rs.2, 00,001 to 5, 00,000. 14% respondents income is Rs.5,00,001 to 10,00,000 and 7% respondents income is 10,00,000 above.

4) Occupation
No of respondents Percentage
Professional 28 28
Salaried 45 45
Business 20 20
House maker 7 7
Total 100 100

INTERPRETATION:
Mostly the salaried persons have account in this bank as we can see in the above graph i.e. 45%.
28% respondents are professional and self employed with 20% followed by house maker with 7%

5) Qualifications
No of respondents Percentage
SSC 9 9
HSC 15 15
Graduate 23 23
Post graduate 42 42
Professional 11 11
Total 100 100

INTERPRETATION:
It is been found that majority of respondents 42% are Post Graduate then 23% respondents are graduates. 15 and 9% respondents are passed out HSC and SSC respectively. It seems that literate people use Banking services more.

6) What type of facilities do you enjoy with the bank?
No of respondents Percentage
Savings account 39 39
Current account 24 24
Locker 5 5
Demat 4 4
Loan 28 28
Total 100 100

INTERPRETATION:
From the above chart, we can conclude that there are 39% people hold saving account and 24% respondents hold current account out of 100 respondents while 28% respondents have loan account in a bank. And 5% respondents have locker in a bank. Remaining has demat account in a bank.

7) How long are you the customer of this bank?
No of respondents Percentage
Less than 5 years 21 21
6 to 10 years 41 41
More than 10 years 38 38
Total 100 100

INTERPRETATION:
From the above graphical presentation we can conclude that there are 38% respondents are those who are dealing with the bank from last more than 10 years and have good relationship with the bank. From the study we can also say that most customers are bank’s old customers and have their account in a bank from many years.

8) Reason for selecting this bank.

No of respondents Percentage
Nearest to the residential area. 29 29
High rate of interest in FD 21 21
Prompt services 10 10
Customer relationship 15 15
Quick processing 11 11
Easy to get loan 14 14
Total 100 100

INTERPRETATION:
From the study, 29% customers have selecting bank because it is nearest too their area.

21% customers have selected this bank because of high rate of FD. 15% customers have selected bank because of good relationship with customers. Only 11% and 10% customers have selected this bank because of quick processing and prompt services respectively.

9) What type of loan you have availed?
No of respondents Percentage
Housing loan 27 27
Vehicle loan 23 23
Education loan 20 20
Gold loan 13 13
Cash credit loan 7 7
Personal loan 10 10
Total 100 100

INTERPRETATION:
From the above graph, it is likely to be said that 24.44% respondents have opted got vehicle loan followed by education loan i.e.22.22% and only 6.67% have taken gold loan.

10) Are you satisfied with the overall services of the bank?
No of respondents Frequency
Yes 81 90
No 9 10
Total 90 100

INTERPRETATION:
From the above chart we can conclude that majority of the customers are satisfied with the overall services of the bank.

Home loan
11) While taking home loan, which things attract you the most?
No of respondents Percentage
Interest Rate 9 33.33
Payback period 7 25.93
Service provided 6 22
Margin Amount 5 18.52
Total 27 100

INTERPRETATION:
It is likely to be said that interest rate attract the most while taking the home loan (33.33%) followed by payback period (25.93%) and service provided by 22%.

12) From where have you got the information about home loan schemes?
No of respondents Percentage
Newspaper 13 48.15
Magazine 2 7.41
Hoardings/Banners 3 11.11
Word of mouth 9 33.33
Total 27 100

INTERPRETATION:
48.15% of respondents have got information regarding home loan scheme through newspaper.

33.33% of respondents have got information through word of mouth.

13) What problem did you face while getting home loan?
No of respondents Percentage
Lack of Knowledge 6 22.22
Procedural delays 10 37.04
Incomplete information regarding loan. 11 40.74
Total 27 100

INTERPRETATION:
From the above chart, it can be concluded that 40.74% customers feel bank provides them incomplete information regarding loan and 37.04% customers feel there is procedural delays while taking loans.

14) How do you rate the sanctioning procedure?
No of respondents Percentage
Highly satisfied 13 48.15
Satisfied 9 33.33
Neutral 4 14.81
Dissatisfied 1 3.71
Highly dissatisfied 0 0
Total 27 100

INTERPRETATION:
From the above graph, we can conclude that majority of the customers are satisfied with the sanctioning procedure of the bank.

15) Are you satisfied with the services provided?
No of Respondents Percentage
Highly satisfied 14 51.86
Satisfied 8 29.63
Neutral 3 11.11
Dissatisfied 2 7.41
Highly dissatisfied 0 0
Total 27 100

INTERPRETATION:
From the above graph, we can conclude that majority of the customers are satisfied with the service provided by the bank.

Vehicle loan
16) Are you a first time vehicle buyer?
No of respondents Percentage
Yes 13 56.52
No 10 43.48
Total 23 100

INTERPRETATION:
From the above graph, we can conclude that maximum no of customers are first time buyer (56.52)
17) What would be the price range of the car you would intend to buy?
No of respondents Frequency
1-5 lakhs 11 47.83
5-10 lakhs 10 43.48
10-15 lakhs 2 8.69
15-20 lakhs 0 0
Above 20 lakhs 0 0
Total 23 100

INTERPRETATION:
From the above graph, we can conclude that 47.83% are interested in buying a car that ranges from 1-5 lakhs and only 8.69% respondents are interested in buying a car that ranges from 10-15 lakhs.

18) What type of rate of interest facility do you prefer on your vehicle loan?
No of respondents Percentage
Fixed 19 82.61
Floating 4 17.39
Total 23 100

INTERPRETATION:
From the above graph, we can conclude that majority of the customers (82.61%) prefer fixed rate of interest.

19) What is the loan tenor do you expect? (In years)
No of respondents Percentage
1 0 0
2 2 8.69
3 7 30.43
4 5 21.74
5 9 39.13
Total 23 100

INTERPRETATION:
From the above graph, we can conclude that 39.13% customers prefer 5 years loan tenor. 21.74% customers prefer 4 years tenor and 30.43% customers prefer 3 years tenor.
20) Are you satisfied with the vehicle loan schemes provided by this bank?
No of respondents Percentage
Yes 20 86.96
No 3 13.04
Total 23 100

INTERPRETATION:
Approx 87% respondents are satisfied with the vehicle loan schemes provided by the bank and only 13% are not satisfied with the scheme. Gold loan
21) Which of the following is the most preferable thing at the time of availing gold loan?
No of respondents Percentage
Rate of interest 2 22.22%
Maximum per gram 3 33.33
Flexibility 2 22.22%
Customer dealing 2 22.22%
Total 9 100

INTERPRETATION:
From the above chart, it is likely to be said that 33.33% respondents wants maximum per gram at the time of availing gold loan while 22.22% prefer to consider rate of interest at the time of availing the loan.

22) Are you satisfied with the current gold scheme?
No of respondents Percentage
Yes 7 77.77
No 2 22.22
Total 9 100

INTERPRETATION:
77.77% respondents of GMC bank are satisfied with the current scheme of gold which is a positive thing for the bank.

Education loan
23) For which course you have taken education loan?
No of respondents Percentage
MBA 2 10
Professional courses(CA,CS) 4 20
Engineering 8 40
Doctor 6 30
Total 20 100

INTERPRETATION:
From the above graph, we can conclude that 40 % respondents have taken education loan for the study of Engineering and 30% have taken loan for the study of Doctor, followed by professional courses (CA, CS) i.e. 20%.

24) Do the interest charged by the bank on education loan is reasonable?
No of respondents Percentage
Yes 14 70
No 6 20
Total 20 100

INTERPRETATION:
We can conclude that 70% respondents are satisfied with the interest rate charged by the bank on education loan.

25) Are you satisfied with the service provided by the bank?
No of respondents Percentage
Yes 18 90
No 2 10
Total 20 100

INTERPRETATION:
From the above chart, we can conclude that 90% of consumers are satisfied with the banking facilities and services. This shows a positive relationship between consumer and bank.

PART7
KEY FINDINGS AND RECOMMENDATIONS

FINDINGS
From the study of survey the following are the findings:

GMC is having considerable loyal customer as many of them i.e. 41% respondents are having account with GMC more than 6 years.

The customers who are using services provided by GMC are 64% male.
It has been found that majority of respondents (42%) are Post Graduates, it seems that literate people use Mobile Banking services more.
81% customers are satisfied with the overall services of the bank.

Most of customers are satisfied with the rate of interest on the savings, loans, and deposits.
Majority (27%) of the customers are taking housing loan.

There is a simple procedure followed by the bank for loan.

Majority of customers are having current accounts and saving accounts in cooperative
bank.

Majority of customer select this bank because of the nearest bank to their office/residence.

Nowadays the trust on co-operative bank is steadily increased because bank has good
relation with the customers..

Majority of the customers are satisfied towards employees’ behavior because of the polite
reception, good counseling, immediate response, etc.

RECOMMENDATIONS
The bank employees should understand customer preferences and get proper feedback.

Bank can also do a market survey for improvement on its own performance.

Gujarat mercantile Co-Operative Bank is not doing any special marketing efforts for deposits and loans, I would like to recommend for aggressive marketing efforts to deepen its roots and to have strong base in Ahmedabad, to increase its profit level and to progress faster.

They should try to provide better services to attract maintain current customers.

Bank should go for branch expansion and through they can expand their business.

The bank should make its procedures less time consuming, for an example loan section, deposits, etc.

Currently at GMC a lot of time wasted updating passbook for savings account holders, this time can be saved by providing passbook printing facility from ATM.

Bank has to motivate the recovery staff to increase recovery rate
Timely visit by field staff and making personal contact with borrower.

PART 8
LEARNING FROM SIP

It facilities experience based learning.

It helps to understand the functioning of the bank.

It provides knowledge about various department of the bank.

It provides experience about the corporate world
It provides awareness about the variety in work culture.
It is a learning tool for understanding professional network and its associate medium.

It helps in developing new skills.

PART 9
CONCLUSION

According to project report, I can conclude that GMC is one of the reputed cooperative banks in India. From the research work, I conclude that many customers are satisfied while many customers are highly satisfied with the services provided to them by bank. Reason for giving priority to Gujarat mercantile Co-Operative Bank is local reach, very good reputation, high profit margin, safety, simple procedure, co-operation of bank and strong back-up from the directors. The staffs of the bank are very kind and hard working. They are always tried to provide better services to their customers. They always reply politely of the questions asked by the customers and always try to solve the problems face by the customers. From the research, customers are not satisfied with the paper work.

From the above survey and analysis done for the bank, it can be said that there is lot of scope for the bank to do better if they take into consideration certain improvement in service of customer satisfaction.

The bank should therefore look forward to promote investment opportunities during their visit through banners, leaflets and pamphlets, etc. and increase the awareness level.

PART 10
REFERENCES
www.gmcbank.inwww.scribd.comwww.aequitasjuris.com/banking-lawyers-in-india
https://www.bankexamstoday.com/2017/01/history-of-banking-in-india-key-points.htmlhttps://www.jagranjosh.com/articles/what-are-cooperative-banks-and-its-different-types-1426500560-1www.quora.com

PART 11
ANNEXURE

Questionnaire
1) Name:
2) Gender:
Male
Female
3) Age Group
18-22
23-35
36-60
4) Income
Below 2, 00,000
2, 00,001-5, 00,000
5, 00,001-10, 00,000
10, 00,000 above
5) Occupation
Professional
Salaried
Business
House maker
6) Qualifications
SSC
HSC
Graduate
Post graduate
Professional
7) What type of facilities do you enjoy with the bank?
Savings account
Current account
Locker
Demat
Loan
8) How long are you the customer of this bank?
Less than 5 years
6 to 10 years
More than 10 years
9) Reason for selecting this bank.

Nearest to the residential area.

High rate of interest in FD
Prompt services
Customer relationship
Quick processing
Easy to get loan
10) What type of loan you have availed?
Housing loan
Vehicle loan
Education loan
Gold loan
Cash credit loan
Personal loan
11) Are you satisfied with the overall services of the bank?
Yes
No
Home loan
12) While taking home loan, which things attract you the most?
Interest Rate
Payback period
Service provided
Margin Amount
13) From where have you got the information about home loan schemes?
Newspaper
Magazine
Hoardings/Banners
Word of mouth
14) What problem did you face while getting home loan?
Lack of Knowledge
Procedural delays
Incomplete information regarding loan
15) How do you rate the sanctioning procedure?
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied
16) Are you satisfied with the services provided?
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied
Vehicle loan
17) Are you a first time vehicle buyer?
Yes
No
18) Which vehicle do you intend to purchase?
_____________________
19) What would be the price range of the car you would intend to buy?
1-5 lakhs
5-10 lakhs
10-15 lakhs
15-20 lakhs
Above 20 lakhs
20) What type of rate of interest facility do you prefer on your vehicle loan?
Fixed
Floating
21) What is the loan tenor do you expect? (In years)
1
2
3
4
5
22) Are you satisfied with the vehicle loan schemes provided by this bank?
Yes
No
Gold loan
23) Which of the following is the most preferable thing at the time of availing gold loan?
Rate of interest
Maximum per gram
Flexibility
Customer dealing
24) Are you satisfied with the current gold scheme?
Yes
No
25) Which is following the main reason for satisfaction?
Rate of interest
Flexibility
Customer Dealing
Others
Education loan
26) For which course you have taken education loan?
MBA
Professional courses (CA, CS)
Engineering
Doctor
27) Do the interest charged by the bank on education loan is reasonable?
Yes
No
28) Are you satisfied with the service provided by the bank?
Yes
No

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