CHAPTER 1

INTRODUCTION
1.1 Background of the Report

The term 'Internship' implies students participation in any organization as a trainee for the partial
fulfillment of the requirement for the award of degree from university. Internship is that sort of
academic curriculum and platform where students get opportunity to gain practical knowledge and
develop the idea about how to implement the theoretical knowledge that get they have been taught in
the university or colleagues.

According to J. Gross man :” An internship is a professional work experience where learning is

built into the business organization.” (2016)

During the Internship, the students takes on responsibility in the business organization and
participates in observing and learning while activity performing duties supporting the business
endeavors. The importance of an internship is for the student make a clear and distinct connection
between their academic learning and professional work place.

As an internee, students are look more practical explore about the market, industry, marketing and
operation compare to what they have known by studying in university or colleagues. As per the
interest of student and decision of college, students are placed in different department like as
marketing, finance and HR.

I . Overview Of Report :

This report entitled “ An Overview Of General Banking & Credit Department “ of The Kangra
Central Co-operative Bank Ltd “ has been prepared as partial fulfillment of the requirement for the
award of degree of Master of Business Administration under the MBA program of “ Gautam Institute
of Management & Technology , Hamirpur under Himachal Pradesh Technical University, Hamirpur
(HP) The internee got the opportunities to work at KCC Bank Ltd, one of the successful and
emerging bank in the Himachal Pradesh.

The internee was under the direct supervision of Dr. Ashok Bansal, Head of Management
Department at GIMT, Hamirpur college for the internship program. The report add up the knowledge
of how organization obtained the debt financing and what sort of provision and criteria are required
to meet to different types loan facilities from the bank.
 ii. Duration of Internship

The Internship program endure for 45 days starting from 3rd June to 17th July 2017. Internee has spent
45 days period in the following departments :

Table No. 1.1.1

Duration of internship in Different Departments

Sr. No. Name of Departments Time period in Days

1 Credit Department 20
2 Customer Service Department 15
3 Treasury & Cash Department 10
Total 45

Training Methodology :

By methodology, we mean how, when, what and where method & techniques are used to gather the
data , information, make the analysis and represent the collected data to draw up the report complete,
valuable and more meaningful. In another word, Methodology is the process of collecting , analyzing
and interpretation of facts and figure and providing solution of the problem.

Data and Information collection.

Data information and other necessary materials that are used to make this report complete and
meaning full gathered from two sources, internally and externally. Some time orally I have collected
information which is not available. And these can be gathered only personal experience

Ways of Data Collection

1. Primary Data : First time collected data. As a internee accumulated from primary data from

a. Observation of Employees : Here primary data are collected through spending 45 days in the kcc
bank during the working hour. Here. I observed the total banking process.

b. Direct Involvement in work.

3.
c. Informal Discussion.

2. Secondary Data : The secondary data had been collected from the MIS of KCCB . To clarify
different secondary sources such web site , register book . In this regards internal sources :

a. Bank Annual Report 2016- 2017.

b. Previous reports and journals relevant to banking industry.

c. Instruction circulation of Head office.

d. Bank issues seminar papers etc.

e. Books And Wikipedia Sources etc

3.

Fig. 1.1 (Sources of Data Collection for preparing the Report

SCOPE OF STUDY :

The duration of the study was a very short span time. It was very much hard to complete a report as
well as assigned task by the bank. So I had to complete this study facing very much time pressure.
This report are cover only Credit Department and General Banking Activities of The Kangra Central
Co-operative bank Ltd. Especially this report emphasis on the comparison of different bank interest
rate and deposit schemes , in a financial products . It consider only one Branch from all well known
public and private banks. 4
Sampling Procedures and Research Design :

I collected primary data by random sampling basis and my sample size is banking employees i.e. 7 .
Collected information is processed by the use of computer system. By using MS Excel and SPSS
software to analyzed one year account opening data. One year data are collected randomly
sequentially and regular interval process. And Research Design is based on Time series basis.

Limitation Of Study :

I. Inexperience on practical to do so.

II. Not proper to perfectly represents on this task.

III. Sometime data is not available.

IV. Only one organization KCCB Ltd.is taken into consideration.

V. Study is mostly secondary based data .

1.2 Objectives of Internship

Internship is become the key for students to get employment. To get an employer, a candidate who
has spent time working for a particular industry shows, dedication to a particular career, enthusiasm
for a particular job and importantly has experience. Moreover, an internship offers you practical
knowledge of professional career.

I internee have selected to do internship at KCC Bank one of the finest bank in Himachal Pradesh
banking on the credit department. The Objectives are internship highlighted as :

General Objectives.

Specific Objectives.

I. General Objectives : 5
To Qualify for the degree of Master of Business Administration.

ii. Specific Objectives :

a. To get the real picture of professional life.

b. To acquire that experience about the activities perform in the credit & Finance dept.

c. To acquire the knowledge about the document needed for obtaining loan.

d. To Analyze the lending process.

e. To identify the types of loan and their importance of business.

f. To identify the role of loan department in bank.

g. To study the efficiency of the management in present competitive banking market.

1.3 Brief Introduction of the Banking Industry :

I. Meaning of the Bank

Bank is the lawful organization which accepts deposits that can be withdraw on demand, pay interest,
clear cheques act as an intermediary and make loan to individual and business those need it A part
from this bank also provides financial services such as wealth management, currency exchange, Safe
deposit, locker and vault facility.

Definition of Banking :

According to Bank Regulation Act Of India (1949)

“ It defines banking as accepting, for the purpose of lending or investment of deposit pf money the
public, repayable on demand or otherwise or withdraw able by cheque, draft order or otherwise.”

II. FUNCTIONS OF BANKS :

A. Primary Functions : Accepting Deposits and Granting advance are the main primary function of
the bank.
1. Accepting Deposits : The bank collects deposits from the public. These deposits can be different
types such as :

I) Saving Deposits ii) Current Deposits

iii) Fixed Deposits iv) Recurring Deposits.

2. Granting of Loan and Advances : The bank advances loans to the business community and other
members of the public. The rate charged is higher than what pays on deposits.. The difference in the
interest rates ( lending rate and the deposit rate) is its profit. The types of bank loans and advances
are :

I) Overdraft ii) Loans

iii) Cash Credits iv) Discounting of Bills of Exchange.

 FUNTIONS OF BANK ( Fig 1.3.1)

B. SECONDARY FUNCTIONS :

The bank performs a number of secondary functions, also called as non banking functions. These
important secondary functions of banks are explained below.

1. Agency Functions :

The bank act as an agent of its customers. The bank performs a number of agency functions which
includes :

I ) Transfer of funds. Ii ) Portfolio Management.

Iii ) Collection of Cheques. Iv ) Periodic Collection.

v.) Periodic Payments. Vi .) Other Agency Functions.

2. Utility Functions

The bank also performs general utility functions , such as :

I ) Issue of Drafts ,Letters of Credits etc.

ii ) Locker and ATM Facility.

Iii ) Underwriting of shares.

Iv ) Dealing in Foreign Exchange.

V ) Project Reports.

Vi ) Social welfare programs.

Vii ) Other utility functions.

CASH RESERVE RATIO : Bank are required to maintain CRR ratio as prescribed by central bank.
CRR is the percentage of deposits liability to be retained by commercial bank and other deposit
money bank as prescribed by central bank.

8.

1.4 INTRODUCTION OF KCC BANK LTD

The Kangra co-operative Bank Ltd started as very humble condition way as a small thrift/credit
society in March 1960 by a few friends of Distt. Kangra of Himachal Pradesh to help out of the
people of Himachal residing in Delhi to uplift their economic conditions and tide over the financial
hardships, Dedications, sincerity and honesty of those members brought rich fruit and this credit
society grew up into a big society within 12 years after its formation and successful running was
converted into primary urban cooperative bank in 1972 by RBI permitted to carry out to banking
activities including acceptance of deposits from non- members by opening their savings, current, RD
A/c’s.23 years there from in june 1995 it was granted a license to carry out the banking business by
RBI.

1.4.1 History Of KCC Bank :

The Kangra Central Co- operative bank Ltd Dharamshala was registered on 18 March 1920. It was
established to facilitate the operation of the Primary Co – operative societies affiliated with it by
raising resources and acting as balancing centre. It was granted license to Open Branchres and
consequently Six more branches were added in February, May, December 1996, June 1998, October
2008 and last in July 2009. The main branch along with its service branch arbitration and recovery
department is situated in its own three storied building at Pacarana. It purchased another building in
April 2008 At Jagatpuri where its one of the existing Branches has already been functioning.

Bank enjoys Grade A audit classification since long Govt of NCT of Delhi gave to the bank ‘Best
Bank Award’ for the years 2004-05,2007-08,2009-10 and 2011-12.

Bank is giving dividend to its shareholders regularly and lastly declared @18% the highest declared
so far, Bank has also introduced three schemes of welfare nature for its shareholders.

Welfare Schemes Of Membership

1. If form the membership of the bank existing as on 31st December 2013, any member
dies, his nominee will be given a death grant of Rs 25000/ from member welfare Scheme and
it and if he has taken any loan , then loan amount up to Rs 75000/ will be exempted from
 interest.

9.

2. Any member enrolled after 31st December 2013 if dies before attaining a membership

of 10 years, his nominee will be given a death grant of RS 15000/ from Member Welfare
Scheme and Loan up to RS 50000/ if will be taken from exempted from intrest.

3. Any Member enrolled after 31st December 2013 if dies after completing membership
of 10 years, his nominee will be given a death grant of RS 25000/ from

4. Member Welfare Scheme and Loan up to RS 75000/ if taken will be exempted from
interest, the second one is where scholarship @ 75000/, if taken will be exempted from
interest, the second one is where scholarship @ RS 150/ & 200/ per month is given to the
brilliant wards of the members and staff I and third one is to give one time incentive to those
wards of members who get 90% marks in Board Examination. Amount of Incentive is RS
3100/ & RS 5100 for 10th & 12th class respectively.

1.4.2 COMMERCE & MANAGEMENT

Branches spread through out the state of Himachal Pradesh. There are 85 branches of all
banks which are serving in the urban areas of the state, 250 branches are serving in the semi
urban areas and1331 branches are serving in the rural areas of the state. In order to fulfil the
demand of long term credit, the Himachal Pradesh state co-operative agriculture and rural
development bank play in important role.

On the other hand, Kangra primary co-operative agriculture and rural development bank
which is located in Dharamshala provides medium and long term financial assistance for
agriculture and allied activities with its 16 branches in 3 Distt’s namely Kangra, Una,
Hamirpur. There are 5 urban co-operative banks eating to the credit needs to their members in
the urban areas of Himachal Pradesh.

As for as the rural short term credit co-operatives are concerned, there is an apex state co-
operative bank and 2 dist. central co-operative banks financing in the concerned districts of
their functioning areas. The Himachal Pradesh state co-operative bank is the apex bank which
also discharges its co-operative role as district central co-operative bank in 6 Ditties.
 Shimla, Kinnaur, and Sirmour respectively.

10.

Where as the operational areas of the Kangra central co-operative bank in Hamirpur, kangra,
Una, Chamba and Lahul spiti Distt.

Of the state. The Jogindra central co-operative bank is functioning in Solan Distt only.

Operation of KCC Bank Ltd

Table 1.4.2 .1

Sr.No. Districts No. of Zonal Number of % Of Business Share

Offices Branches
1. Kangra 7 85 61.96
2. Una 2 22 14.77
3. Hamirpur 3 29 14.45
4. Kullu 2 20 7.20
5. Lahul-Spiti 0 4 1.40

Sources : KCC Bank Management system

Capital Structure

Table 1.4.2 .2

Sr No. Details Figures in Lakhs

1 Share Capital 2765
2 Funds 3525
3 Deposits 73616
4 Loss 45993
5 Working Capital 84401
6 Profit before Tax 1347
7 Net Profit After Tax 833
Sources : The Capital Structure data is issued by Kcc Bank Ltd On 31st March 2016.
 11.

FINANCIAL POSITION Of KCC BANK LTD. ON 31st March 2016

The latest audited financial position of the bank given as follows

Table 1.4.2.3

Membership 45993

Clientele other than members 132578

Share Money 27.65 cores

Reserve Funds 35.25 cores

Working Capital 844.01 cores

Deposits 736.76 cores

Advances 459.93 cores

Net Profit before Tax 13.47 cores

Net Profit After Taxes 8.55 cores

Net NPA 1.40%

CRAR 12.76%

Sources : Financial Report by KCC Bank Ltd on 31st March 2016

1.4.3 MISSON :

KCC Bank’s began operation in 1995 with a simple mission to be a world class Indian bank . We
realized that only a single minded focus on product quality and service excellence world help us get
there. Today the bank is on the way towards that goal. It is currently gratifying that its efforts
towards providing customer convenience has been appreciated both nationally and internationally.

1.4.4 TECHNOLOGY.

KCC Bank Ltd Operations in highly automated environment in term of information

Technology and communication systems . All the branches have online connectivity, which enables
the bank offer speedy funds transfer facilities to its customers.

12.

The Bank’s business is supported by salable and rebuts systems which ensure the our clients always
get the finest services we offer.

In each of the business, the bank has succeeded in leveraging in market position. Expertise and
technology to create a competitive advantage and build market share.

1.4.5 BUSINESS.

KCC Bank offers a wide range of commercial and transactional banking service and treasury
products to wholesale and retail customers. The Bank has two Business Segements :

1. Whole Sale Banking Services

2. Retail Banking Services.

A. WHOLE SALE BANKING SERVICES :

a. Large Range of small and mid size and agricultural business.

b. Provide commercial and Transactional banking services.

c. It includes working capital finance, trade services, transaction services, cash

management etc.

d. Provide Insurance policies in whole customers.

B. RETAIL BANKING SERVICES :

a. It provide Target Market customers a full range of the financial products and banking
services, giving the customer a one stop window for all banking requirements.

b. So as well as provide alternative delivery channels like as ATM’s, Mobile Banking,

Net Banking etc.
1.4.5.1 Vision Document For 2016 -2017 to 2017 – 2018.
All the branches are fully computerized with CBS. The implementations of CTS, NEFT/ RTGS, ATM
has already been done . Board of Directors has also prepared a “ VISION DOCUMENT” for 2016-17
to 2017-18 according to which various targets have been fixed.
1. Membership has been planned up to 48,000.
13.
2. Share Money up to 31 cores.
3. Deposits to increase 850 cores from 730 cores.
4. Efforts will be made to maintain the highest percentage of dividend clientele 1.50 lakes.
5. ATM Card holders up to 17000.
6. To purchase two buildings.
7. To be Eligible for scheduled status.
8. To open two Branches.
9. To computerized HO & CRD
10. To get “A” RBI inspection Rating.
11. To Open onside ATM’s in all branches.
12. To make customer service quick and satisfactory.
13. To Arrange minimum two lectures in a year on important topics such as
a. Investment Schemes.
b. NPA, Credit Appraisal, KYC Norms.
c. Customer Services.
d. Internal Control Profitability.
14. To Maintain Net NPA 0 % and gross NPA not more than 4.5%.

1.4.6 Deposit Policy

Customers are most important visitors in our premises they are not dependent on us we are dependent
on them. We are determined served them in particular and our community as a whole in general with
smile to their utmost satisfaction through co-operatives.

1.4.6.1 Types of Deposit Accounts :

1. Saving Account.

2. Current Account.

3. Term Deposit Account.

1. Saving Bank Account :

Saving Bank account is very name suggest that is intended for savings for the Future.

14.

There are no restrictions on the number and amount of deposit that can be made on any day.

Minimum amount of withdrawal /deposit is RS 10 . Balance in the account earns interest Rate by the
Head Office from time to time. The facility of withdrawal by cheque is also allowed subject to
certain organizations and agencies as approved by RBI.

As required by Law, while opening the account we will satisfy ourselves about the identity, including
verification of address of a person seeking to open an account, to assist in protecting the prospective
customers, members of the public and ourselves against fraud and other misuse of the banking
system duly observing know your customers (KYC) guidelines of RBI.

2. Current Account :

Current Accounts are designed to meet of the needs of such sections of the public who operate their
account regularly and frequently . Traders, Businessmen, corporate bodies or the like who receive
money and make payment very offen . Current Accounts are suitable to such category of customers
as there are no restrictions on the number of withdrawals or deposit. It can be opened by :

1. Individuals.

2. Partnership Firms

3. Private and Public Ltd. Co.

4. HUF’s / Specified associates.

5. Societies and Trust Etc.

3. Term Deposit Account :

The Deposit Received by the bank for a fixed period withdraw after the expiry of the fixed period
and include deposits such as Recurring and Fixed Deposits Etc.

Term Deposit can be opened by

1. Individuals and Partnership Firms.

 2. Private and Public Ltd Companies.

15.

3. HUF and Societies /Trusts Etc.

4. General Accounts :

1. Joint Account.

2. Special Type Account.

3. Minor Accounts

4. Accounts of illitrate Persons.

5. Account of Blind Persons.

6. Repayment under joint accounts.

1.4.6.2 Depositors Rights

1. Right to INFORMATION

A deposit will have right to information about charges, quality or standard of the services offered by
the bank to enable him/her to take an independent decisions.

2. Right to CHOOSE

A depositor will have the absolute freedom to choose among the various services offered by the bank
to suit his/ her requirements.

3. Right to Utilize the PRODUCTS & SERVICES

To right a depositor choose and utilise of Products & services according to our facility

1.4.7 PERSONAL BANKING PRODUCTS & SERVICES

PRODUCT SCOPE

Kcc Bank Ltd Offers a bunch of Products and services to meet the every need of people . The
Company Cares for both individuals as well as corporate and small and Medium entreprises. For
 Individuals and cards assist the customers.

16

The customers are choose the suitable one from a range of products which will suit their life stage
and needs.For organization the company has a host of customised solution the range from funded
services and non funded services, value addition services, mutual funds. Etc. The affordable plans
part from providing long term value to the employees help in enhancing goodwill of the company.

1. ACCOUNTS &

DEPOSITS Saving Account

a. Saving Plus Account

b. Saving Max Account

c. Senior citizen Account

d. Insitutional Savings Account

e. Payroll Salary Account

f. Clasic Salary Account

g. Regular Salary Account

h. Pension Saving Account

i. Family Saving Account

j. Kisan Saving Account.

2. Current Account.

a. Plus Current Account

b. Trade Current Account

c. Premium Current Account

d. Regular Current Account

e. Max Current Account

17

3. Fixed Deposit Account

a. Regular Fixed Account

b. Super Saver Account

c. Sweep In Account

d. Recurring Deposit Account

e. Demat Account

f. Safe Deposit Locker.

2. LOANS

a. Personal Loans

b. Home loans

c. Two Wheeler Loans

d. New Car Loans

e. Used Car Loans

f. Commercial vehicle Finance

g. Working Capital Finance

h. Construction Finance

i. Investment and Insurance

j. Mudra Gold Bar

3. FOREX SERVICES
a. Trade Finance

18

b. Foreign Currency Cheques & Deposits

c. Payment Services

d. Visa Money Transfer

e. NEFT & RTGS Services.

f. Mobile & Internet Banking

g. Branch Network

h. ATM & Locker Facilities.

4. Cards

a. Silver Credit Card

b. Gold Credit Card

c. Women’s Gold Credit Card

d. Platinum Plus Credit Card

e. Value Plus Credit Card

f. Health Plus Credit Card

g. KCC Bank Idea Silver Credit Card

h. KCC Bank Idea Gold Card

i. Wholesale Banking Services

j. Funded Services

k. Non- Funded Services

l. Value Added Services

 m. Internet Banking

19

n. Corporate Salary Account

o. Tax Collection

5. NRI Banking Services

a. Rupee Saving Account

b. Rupee Current Accounts

c. Rupee Fixed Deposits

d. Foreign Currency Deposits

e. Accounts for Returning India

1.5 ORGANIZATION STRUCTURE OF KCC BANK LTD.

The management of affairs of the bank shall best as defined in the laws in the following
boddies and officers.

The General body shall determine the General Policy of the bank

1. The Board Of Directors.

2. The Executive Comitee.

3. The Managing Director.

4. The General Manager.

ADMINISTRATIVE SET UP OF BANK :

1. Board of Directors.

2. Chairman.

3. Managing Director.
 4. General Manager.

20

5. Deputy General Manager.

6. Zonal Manager.

7. Branch Manager.

ORGANIZATION SET UP BY BANK

1. Head Office.

2 Zonal Office.

3 Branch Office.

1.5.1 Our Organization Profile

The Central Co-Operative Bank Ltd.

KCC Bank Kuthera Under Zonal Office Hamirpur Distt. Hamirpur HP

The Kangra Central Co- Operative Bank Ltd Kccb Located in the Dharamshala Dist t Kangra
In the state of Himachal Pradesh. The Branch Office is Located at Kuthera Tehsil Hamirpur
,under zonal office Hamirpur Distt Hamirpur HP.

IFSC Code is an 11 Digit code with the first 4 alphabets characters representing the bank, and
the last 6 characters representing the Branch..

Table 1.5.1.1

KCC Bank Ltd. B.O. Kuthera Distt Details

Hamirpur (HP)

Branch Name Kuthera

IFSC Code KACE 0000166

DSR Code N/A

MICR Code 177850031

Contract Person Customer Care

City Kuthera

Distt. Hamirpur

State Himachal Pradesh

Country India

Toll Free Number 18001808008

E Mail Complaint@KCCB.in

Address Near Bus Stop, Kuthera Teh.Kuthera Distt. Hamirpur HP

Sources : KCC Bank, B.O. Kuthera( Branch Manager)

 About Branch Office ,Kuthera For The Financial Year 2016 -17

Total Number of Employees = 5

Branch Manager Mrs. Suman Thakur

Junior Asistant Manager Mrs. Neelam Kumari

Senior Clerk Mr. Vinay Kumar

Cashier Mr.Amarnath Shukla

H.C.P. Staff Mr. Ramprashad

1.5.2 KCC BANK PROFILE:

KCC Bank History

Come in existence in 17th March 1920.

1.Poinneer banking institution catering needs of public and co- operative societies in Kangra and
Lahul Spiti.

2. Indora banking union was merged and 2nd branch open at Nurpur in Jan. 1956.

3. Plampur banking union was merged and 3rd branch of the bank opened at Plampur in Jan 1957.

4. 4th Branch of the bank opened at Hamirpur in oct.1967.

Main Head Office Details Of Kcc Bank Ltd.

Leading Co – Operative bank in North India.

Head office Situated in Dharamshala Distt Kangra (H.P.)

Name Designation
Company Name The Kangra Central Co-Operative Bank Ltd.

Establishments Year March 1960

Mr. Jagdish Sapehia Chairman

Mr. Kuldeep Singh Pathania Vice- Chairman

Mr. Ajit Paul Mahajan Director

Mr. PC Akela (HAS) Managing Director

Mr. Sudhir Katoch Deputy Registrar

Mr. Ashok Puri General Manager.

Address: H.O. Kachehri Road, Jawahar Nagar Dharamshala , Distt. Kangra Himachal Pradesh
176215.Bank has tie ups Axis Bank, HDFC Bank and ICICI. Bank and also with Maruti Udyog Ltd.

VISION :

To emerge as the most trusted, admired, sought after world class financial institution, and to be
the most preferred destination for every customer and investor and a place of pridge for its
employees

1.6 SWOT ANALYSIS

Introduction of SWOT Analysis

A SWOT analysis is a structure planning method used to evaluate the strengths, weakness,
opportunities and threats involve in a project or in a business venture. A SWOT analysis can be
carried out for a project, place, company, firm or person. It involves specifying the objectives
Organization or project and identifying the internal and external factor that are favorable and
unfavorable to achieve the objectives. The degree to which the internal environment of firm matches
with the external environments expressed by the concept of strategic fit.

1. STRENGTHS : characteristics of the business or project that give it an advantage over

other.
2. WEAKNESS : characteristics that place the organization or project at a disadvantages over
other.

3. OPPORTUNITY : elements that the project could exploit to its advantage.

4. THREATS : elements that environment could cause trouble for the business
or Project.

1. STRENGTH : The biggest strength of bank is direct banking channels. As direct banking
channels saves time and money both as a customer does not need to go to bank for any kind of
transaction except cash withdrawal and cash deposits all other things are done sitting anywhere in the
world.

a. All services and products of Kcc Bank are available through direct banking channels.

b. Free ATM , Mobile and Net Banking Services.

25

c. Very Easy to Access and use.

d. A highly Personalized Services provided by the bank.

e. KCC Direct Banking Channels provide Real Time and Accurate Information.

2. WEAKNESS :

a. Resistance to change

b. One Should have the knowledge of the operation of the computers and all of course the
internet.

3. OPPORTUNITIES :

a. Centralized banking makes easy for KCC Bank to provide services to customers.

b. Huge Markets of Shareholders

4. THREATS :

a. Vulnerable to reactive attack by competitors.

b. Attacks of Web Hackers.

c. Lack of infrastructure in rural areas could constrain investment.

Fig. 1.6.1 (SWOT ANALYSIS)

ABRIDGED BALANCE SHEET AND WORKING CAPITAL RESULTS

PARTICULARS Previous Year Current Year

Balance Sheet (31/03/2016) (31/03/2017)
Capital 216.74 223.19
Reserves and Surplus 79380.9 81703.97
Deposits 741982.03 842757.04
Borrowings 31742.32 53987.58
Other Liabilities 48078.52 53024.45
Total Liabilities 901400.51 1031696.23
Cash & Bank Balance 42754.62 58364.15
Investments 468770.08 554922.9
Loans & Advances 352741.86 382057.28
Other Assets 37133.95 36351.9
Total Assets 901400.51 1031696.23
PROFIT & LOSS ACCOUNT
Interest Income 75752.24 86189.99
Other Income 1667.18 1248.57
Total Income 77419.42 87438.56
Other Expenditure 14240.66 14048.02
Total Expenditure 73154.89 82444.8
Profit /Loss 4264.53 4993.76
OTHER WORKING
RESULTS
CD Ratio 47.54 45.33
Recovery& Performance % 76.12 74.15
Gross NPA s 35909.87 43684.56
Net NPA s 26092.57 32082.03
% of Gross NPA to Total 10.18 11.43
Advances
% of Net NPA to Net Loans 7.61 8.66
Net Worth 67986.41 67951.57
Capital Adequacy Ratio 16.82 14.78
% of saving Deposits to Total 14.81 13.37

CHAPTER 2

WEEKLY PRACTICAL ACTIVITIES

 28

2.0 Weekly Progress Report Structure.

In Table 2.0
All the work are Accomplished by us with Hard Working which can be given to us.

Status of Work Assigned

Table 2.0

Week Name of Work Assignment Work Status

1st Know About the Banking Organization & Various Accomplished

Week Departments

2nd Know About the Various Acoounts and how to open Accomplished
Week them

3rd Know how to make different reports Accomplished

Week

4th Know the process of granting a loan Accomplished

Week

5th Know, how to Transfer of Money by NEFT/RTGS & Accomplished

Week Cheques Collections.

6th Know how to handle the customers Accomplished

Week

7th Know about some Practical aspects of trancations Accomplished

Week processing system

29
In Table 2.0 There are Major Achievements in During the training Period And Working in
Organization as a Respective Employee.

Table 2.0

Some Achievements and Learning

Weeks Major Achievements

1st Week Orientation & Inductions Programs

2nd Week Take knowledge of Opening of an account

3rd Week Take knowledge of various reports

4th Week Take Knowledge of loan schemes

5th Week Take Knowledge About transfer of money

6th Week Take Knowledge Customer Service Department.

7th Week Take Knowledge in Human Resource Activities.

30
2.1 Introduction of the Practical Work Activities / Departments :

As mentioned earlier in the chapter one, Internee has spent to 45 days period in three departments.
Likes as Credit department , CS dept, and Cash departments for 20, 15 and 10 days respectively.

Credit Department :

Credit department is a department in a bank that concern with lending money to general public. It is
actually deals to credit management.

According to Banking Sector “ Credit management is concerned with activities such as accepting the
application, loan appraisal, loan approval, loan monitoring , recovery of non performing loan etc”.

( June. 2010)

Functions of Credit Department :

The main function of credit department is to lend money provide loan to qualified borrowers. In the
course of providing loan to customers credit department perform the following functions :

a. Obtaining Loan Application

The function involves receiving application, borrower detail such as income sources, collateral types
etc.

b. Selection of Borrower

Selection of borrower is the most crucial and vital function. Before a customer enjoys credit facilities
it is important that the applicant should qualify for lending. The below mentioned five C s are
considered to determine whether the candidate is qualified for borrowings or not.

I. Character :- The intention to pay back loan.

II. Capacity :- Borrower's competence in term of utilizing the fund profitability and generate
income.

III. Capital :- Financial strength to cover risk.

IV. Condition :- General condition of business between two parties.

V. Collateral :- Implies addition securities. 31

c. Managing Credit Exposure risk :-Credit exposure is the total amount of credit extended to a
borrower by a lender is exposed to the risk of losses in the event of the borrower's default . In order
to minimize the credit exposure risk credit depart does the following tasks:

I. Credit approval process.

ii. Financial Analysis.

Iii. Market risk and interest risk analysis.

iv. Compeitor edge and market growth rate.

v. Collateral site inspection and analysis.

vi. Recovery

vii. Follow up.

 2.2WEEKLY PRACTICAL WORK REPORT IN DETAILS
1st WEEK : ( 3 June – 10 June)

Work Assignment :Banking System and structure of the Co-operative bank.

Objective : To achieve the knowledge of Banking system and structure:- It is the orientation i.e.
induction programmes. This is my main objective is achieve the knowledge of organization and the
banking system how to work effectively.

Work Description :

• Firstly, I come enter in bank and meets the branch manager of bank. I introduce myself and I
explain the purpose regarding On the Job Training on the requirement of programmes.
• First In Bank manager are introduced me all working employees of bank and said how to
introduced yourself in any organization.
• Branch manager are assigned me work on present the speech on banking customers in the
Topic of KYC (Know Yours Customers) Norms. The Objective of speech how to deal with
audiences and awareness of banking services and KYC Norms.
• Also provide me information on employees job profiles and status of work.
Learning of the week :
1. I learn that working system of bank and how deal with Audiences. Also some learn that
Banking Functional & Operating Area of KCC bank .
2. I learn also Job Profiles and status of work as well as responsibilities and authorities of bank
employees.
3. I also learn about how to introduce your self in any organization. And some other behaviour in
organizations, Norms and Cultures and Rules of organization.
4. The objective of Bank provide finance for number of corporate bodies, and Financial support
of customers. My Work status of week is Accomplished and I say that it is very important to
know the organization.
5. At the end of the week I learn about the whole banking system of india .
33
 2nd WEEK : (11 June – 17 June)
Work Assignment :How to opening a New Accounts in Bank

Objective : To gain the Practical Knowledge of opening a Bank Accounts : This is the primary
and important function of bank employees. Also it is my objective of how to open a new accounts.
Accounts are not personal also take different type accounts internship period.

Work Description :
I do the practical work during the training how to open a new bank account . In this stage, I follow
some steps :
1. Fill up the personal details of customers in application form i.e.
a. Name , Address , Contact No. Id Proof etc.
2. Type of account will be open by customer i.e.
a. Saving Account,OR Current A/c.
b. RD A/C OR FD A/C.
c. Loan A/C.
3. PAN Card Number ( If any)
4. KYC i.e. Aadhar Card Number .
5. Nominee of Account and Fill the details of Nominee.
6. Signature of Accountholder and their Nominee.
7. After Fill the Application form Enter the details of Management system on Different screens
and Scan the Documents and open the account some rupees.
8. After provide the Bank Passbook of Customer.
Learning of the Week:
1. Firstly I learnt how to deal with new customer and ask the purpose of coming bank and
solve out quaries in opening a new accounts.
2. I learn that know the requirements and needs of customers due to the new bank account,
because accounts are different types in bank.
3. I learn also that how to open a new bank account in pratically
So, bank account is the most important work in employees and I gain more knowledge about
this work and accomplished by successfully.

3rd WEEK : ( 18 June – 24June)

Work Assignment : Loan Providing Services.
Objective : To Know how to provide a different types loans by bank :Loan is the another
importance function of the banking organization. In this week, I focus on the loan, because I know
about the loan procedures and I am interested to know bank how to provide a loan . Because Loan is
the source of income generation and bank maintain the NPA Management Policy through the loan.
Work Description:
 In this week, I do work about What types loans are provided the customers by kcc bank. The
following loans are provides as follows :
Table 2.2.1
( Types of Loans Providing The KCC Bank Ltd.)

Sr .No. Particulars Repayment Maximum Credit Limit

Period (Amount In Rupees)
1 Kisan Credit Loan : 12 Months 10000 Not more than 25,000
Crops Loan . (Agricultural Activities)
Allied Activities.
2 Vehicle Loan 7 – 20 Years 5,00,000 ( New Car) or
Two – Wheeler and 2 times of the Annual Income
Four – Wheeler
3 Consumer Loan 5- 7 Years 3,00,000 not less than 35 % of
Gross Salary.
4 House Loan 15- 20 Years 5,00,000 or 35 % of Gross
Construction and Repair. Salary ( New House)
Purchase of Land and Flat.
5 SSI Loans ( Small Scale Industries) 5-10 Years 25,000 – 5,00,000
New Entrepreneurs
Expansion Of Business.
6 SCC ( Swarojgar credit Card Scheme) 5 Years 25000

7 Education Loan 5 Years 25,000 – 5,00,000 or

According to Fee Structure.
Sources : This Data Provide For Branch Office KCC Bnnk Head Office Annually Report.
NOTE : Rate of Interest of all Loans Guidelines Of RBI and as per Head Office Circular Time to
Time I Learn about this Week How to Provide the Bank Loan .and also achieve that How to Check the
criteria of particular Customer to provide loan.
The Bank Check up the Capacity of Re payment of loan and also verify the Assets details of
customers. And after will provide the loan with satisfaction.
Learning of the Week :
1) I learn that Pre sanction Stage of Loan.
Purpose of loan.
Duration of Loan
Source of Repayment.
Biodata of Assets of borrower and gaurantor along with income tax copies.
2. I Learn that how to process of the Loan aplication after pre sanction of loan.
3. I also learn how to create a security of a loan.
(I) Valid mortage of land, building and immovable asset.
(ii) Liquid Security in shape of Bank Fixed Deposits, LIC Policies etc atleast 10% of each
borrowers.
So I say that I take some knowledge about Loan and also Know about practically Loan study during
the internship and successfully achieve the objectives.

4th WEEK ( 25 June -1 July)

Work Assignment : Prepare the Various Reports

Objective : To Achieve the Knowledge About Cash Department: It is the important part or
function of bank ,because without cash has been no transaction of banking system. It is also involves
the collection, handling, usage and cash flow liquidity. So it is very importance to know me about
banking cash system.
Work Description:
In this week , I do the work in Cah Department with the help Cashier. Receipts and Payment of cash
register. And also learn how to dealing with customer . Also I interact with customer and practically
some work with Cashier in Bank. So I Prepare Daily cash balance report.

This tool is especially useful when entering a situation where active cash management is required for
your daily cash flow.

CASH REPORT
It is the sum up of the Total Receipts and Total Payments of the day.
Total Receipts – Total Payments = Cash Balance
FINANCIAL STATEMENTS -BALANCE SHEET
A Balance Sheet is a statement of the financial position of a business which states the assets, liabilities,
and owners' equity at a particular point in time. In other words, the balance sheet illustrates your
business's net worth.
Income Statement for Banks

An income statement is a financial statement that reports a company's financial performance over a
specific accounting period. Financial performance is assessed by giving a summary of how the
business incurs its revenues and expenses through both operating and non-operating activities.
So it is prepared a cash report on daily basis and entry of the cash Receipts and Payments
Sources : This format provided by bank during the work . And registers are issued by Head Office.

Learning of the Week :

1. In this week , learning that how to entry of Receipts and Payment of cash register. And also
learn how to dealing with customer .
2. I learn that how to maintained the cash in bank according to requirement of bank and minimum
reserve of cash in any time.
3. Also I interact with customer and practically some work with Cashier in Bank. So I Prepare
Daily cash balance report. This tool is especially useful when entering a situation where active
cash management is required for your daily cash flow.
37
5th WEEK ( 2 July- 8 July)

Work Assignment : How to transfer of money due to Che ques.

Objective : To gain Practically Knowledge of Che ques : It is the another function of bank
payment through Che ques and transfer the money of account to another account through the NEFT
/RTGS A/c. The main objective of these transactions are cashless . I know about the treatment of Che
ques and entry in register.

Work Description :
In this week , I Do Work have to how transfer the amount of one account holder to another account
holder. In this transactions are following accounts are Dr. & Cr.
NEFT / RTGS A/C DR.
To Customer A/c
Also Learn here Entry of Che ques Collection Register
Table 2.2.3

Sr No. Date Name A/C Drawer Bank Sender Cheque Date Of Amount Date of
No. No. Cheque collect
Paymen
 t

So, I learn that how to entry of the cheques collection & payments and gain of knowledge about
Cheques as well as NEFT/ RTGS. Also I deal some number of customers and learn more and more
new things . It is also, I complete assigned work accomplished successfully.

Learning of the Week :

1. I learn that knowledge of different cheques used by bank.
2. I learnt that how to record maintained by the issuing cheques.
3. I also learn that how to send the cheques of collection by other banks.
4. I fill up some cheques and maintained records in registors.
38
6th WEEK ( 9 July -15 July)
Work Assignment : Distribution Activities
Objective : To Gain Knowledge about Account Statement ,How To work in Customer service
Dpartment.
Work Description :
Distribution Function in mainly three types which are mention below :
a. Account Statement .
b. Cheque Book Distribution .
c. ATM Distribution Procedures.
A. Account Statement : Account Statement are asked by customers to determine the transaction
record. An account statement provides only the account holder or to the bearer of the previously issued
account statement signed by the account holder.
B. Cheque Book Distribution : Cheque book is strictly handed over to account holder issuing the
cheque disbursement register signed by the account holder, in person . However, Cheque requisite slip
can be collected for the bearer, not necessary the account holder. Following Steps are used in cheque
distribution activities.
Figure No. 2.2.4
 Procedure of Cheque Book Distribution

Learning of the Week

1. I learn that how to provide the account statement of the requirements of account holders.

2. I learnt cheque books how to provide, What is charges are received by customers and
procedures of issuing cheque book.

3. I learnt how to maintained thr records of cheque issue registers.

4. I learn also how to keep the records and how to delivered the ATM card to the customers.

7th WEEK : ( 15 July – 17 July)

Work Assignment : Understand the work of customer service department

Objective : To gain about Knowledge of customer services and its dealings.

Work Description :
CSD is the front desk of any organization. It provides all the necessary information in the customers.
For bank, it is the first and most important department which deals with customers more than any
department in any other department in the bank. It is the first place where the customer first get the
service. As different activities such as opening account of customers, closing existing account ,
issuing cheque book, balance enquiry and providing statement, issuing debit card etc are performed.
Similarly, I am also performed the same functions during the internship period at CSD for 15 days.

Customer Counseling :

I. Understanding the need of customers and determining the purpose of visit.

ii. Forwarding the customers to the concerned department as per their need.

Iii. Providing the suitable suggestion about suitable deposit product for the customers.

iv. Making the customer aware of the benefit and service available.

v. Informing the customers about the minimum balance required and service charged.

Role Played at Customers Service Department :

As a internee I spent 15 days at CSD and performed the following activities :

a. Make the print of Cheque book and update the Pass book more than 100 Customers.

b. Kept the record of printed and distributed cheque books in record file.

c. Provide the print account statement of some customers.

d. Open the new account of 10 customers.

e. Closed the account of one customer.

f. Counseling the customers about the products and facilities of KCC Bank ltd.

Learning of the Week:

1. I learn that how to customer counsling as per need of customers.

2. I learn how to identify the needs of customers and know the purpose of visit.

3. I also learn that how to deal with customers and give suitable information about banking products
and services.

42

2.4 Emergence of issues Problem Faced and How these were Solved Addressed :-

2.4.1 Problems Faced during internship

During the internship, as a internee I faced some following problems

I. CAP's have to be prepared according to the nature of loan type, an internee had no idea about this
at the beginning and went through tough time.

ii. Had no idea about making follow up call to client asking them to deposit the repayment
amount.

2.4.2 Solution for Each Problems :

I. Asked the help for supervisor and observed previously made CAP.

ii. Stayed beside of bank staff and observed and learn how they made the follow up call asking the
customer to deposit the repayment amount.
 43

CHAPTER 3
RECOMENDATIONS AND

CONCLUSION
 44

3.1 OVER ALL EXPERIENCE & LEARNING (During The Training Period )

The duration of internship for 45 days and during the course of internship there were various lessons
and I am able to learn. The internship was a great opportunity for me to face real life work scenarios
after two semesters in classroom and it must be said that it was a great learning experience. Some of
the lessons learn during the time of internship are summarized below :

1. Knowledge base learning and experience gained :

Learn the process of providing loan to customers and dealing with client at Credit Department.

Learn the process of opening and closing account, issuing cheque, issuing bank statement and
dealing with customers at CSD .

Learn the risk associate with operations departments

2. Skill base learning and experience gained :

Learn to make the legal documents of credit department.

Learn to use theoretical knowledge in practical working situation.

 Learn to use photocopy machine, printer, scanner,

3. Behavioral based learning and experience gained :

Learn to handle customers visiting in the bank at different department with different
modes and quaries.

Learn the importance of time management and developed interpersonal skills and
communication skills.

Learn the correlation among the operation of various departments for the overall
profitability of the bank.

SUMMARY

After the 2nd semester of Master of Business Administration (MBA) course, an internee was sent to
The Kangra Central Co-operative Bank Ltd.(KCCB), KUTHERA Branch to have a practical
exposure on banking activities under the program me of 'Internship'. KCCB is a leading co- operative
bank which starts it operation from 18h March, 1920. Through its Himachal Pradesh comprehensive
and competitive banking service its to client. General Banking comprise of account opening, bills,
remittance, clearing, cash and computer section while advance banking involves the activities related
to providing borrowing to its customers.

First chapter to introduction of the report focus on background, objective, and brief introduction of
industry focus on the context of banking industry, present situation and challenges and opportunities.
And after then brief introduction to the organization focus on The Kangra cooperative Bank Ltd's
vision , mission and strategy, present situation of the bank and SWOT Analysis.

The Second chapter focus on Practical part analysis of activities done and problems solved, role of
the internee and fitting in the organization Structure, experience in the internship including system
process. Also Occurrences of problems and how these problems solved and observed gap.

The Final section of the report includes conclusion and overall experience and learning knowledge
gained and recommendations.

45
3.2 Recommendations

By working as a internee at KCC bank Branch Office Kuthera and observing its working
environment some areas of improvement are identified. Therefore following recommendation can be
made to the bank for achieving higher efficiency and effectiveness.

KCC Bank should increase the number of ATM machine within and outside the vally so as to
attract the customers.

It has been notice that KCC Bank high employee turnover this, concerned department should
come up with the sound policy and strategy of empowering and retaining talent employees.

Employee training and motivational programs are rarely done, thus employees motivational and
training programs should be organized time to time.

3.3 CONCLUSION :

It is my pleasure to have a chance of doing internship in such a wonderful bank where potential of
employee and internee are truly respected During my 45 days internship program it was different
experience and exposure to real work scenario. I learn about banking sector, loan lending procedure
and banking operation of KCC Bank Ltd. This report had made to know about various kinds of
information and service offered to customer by KCC Bank Ltd. This report is helped me to know an
organization can be different from other through people resources.

The main reason for which the internee had selected banking field to learn about how working
environment in the bank. The prime objective is to obtain the professional experience by exposing
the corporate culture and implementing the knowledge that has been learnt.

46
 ABBREVIATIONS

ATM Automated Teller Machine.

BOD Board of Directors

CAP Credit Proposal

CRR Cash Reserve Ratio.

CSD Customer Service Department

E – Banking Electronic Banking

HP Hire Purchase

HR Human Resources

KCCB Kangra Central Co -Operative Bank Ltd.

KCC Kisan Credit Card.

KYC Know Your Customers

LTFD Long Term Fixed Deposits

N P ANon Performing Assets

S S M E Small Scale & Medium Enterprises.

SSG Self Help Groups

47
 REFERENCES

Bulkaliya, R.(2012), the potential benefits and challenges of internship programmes .

Day . J. (Jan. 2017), from banking business and cross :

J. Grossman, S. (Feb, 2016) Background of internship in details

KCCB , (2016 /2017), Head Office Annual Report , Dharmashala , And Branch Office Financial
Statements.

T. Subramanian ( New Age Publication, 2010) Financial Management Overview.

Singla RS 2013 ( VK Publication,) Money And Banking Book prefer In B. com students under HPU

CR Kothari, Research Methodology (2004) Training Methodology .

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45.