Industry profile:

The Banking sector;

According to RS Meyers, Banks are institution whose debits are referred to as

bank deposits & they are commonly accepted in final settlement of other peoples debts

Section 5(1) (C) defines a banking company as, Any company which transects the
business of banking in India

Overview of Banking

The banking system in India is significantly different from that of other Asian
nations because of the countrys unique geography social and Economic characteristics .
India has a large population and land size, diverse culture, and extreme disparities income
,which are marked among its regions. There are high levels of illiteracy among a large
percentage of its population but, at the same time, the country has a large reservoir of managerial
and technologically advanced talent between about 30 to 35 percent of the population resides in
metro and urban cities and the rest is spread in serveral semi-`urban and rural centers.

The country s economic policy framework combines socialistic and capitalistic feature
with a heavy bias towards public sector investment. Indian as followed the path of growth led
export rather than the exported growth of other Asian economies, with emphasis on self-
reliance through import substitution. These features are reflected in the structure, size, and
diversity of the countrys banking and financial sector.

The banking system has had to serve the goal of economic policies enunciated in successive five
year development plans, particularly concerning equitable income distribution, balanced regional
economic growth, and reduction and elimination of private sector monopolies in trade and
industry.

In order for the banking industry to serve an instrument of state policy, it was the subjected to
various nationalization schemes in different phases (1955, 1969, and 1980).As a result, banking
remained internationally isolated (few Indian banks had presence abroad in international
financial centers) because of preoccupation with domestic priorities, especially massive branch
expansion and attracting more people to the system. Moreover, the sector has been assigned the
role of providing support to other economic sector such as agriculture, small-scale industries,
export, and banking activities in the developed commercial centers (I, e., metro, urban, and a
limited number of semi-urban enters).

The banking systems international isolation was also due to strict branch licensing controls on
foreign banks already operating in the country as well as entry restrictions facings new foreign
banks.
 THE STRUCTURE OF INDIAN BANKING

The Indian banking industry has Reserve Bank of India as its regulatory authority. This is
a mix of the Public Sector, Private Sector, Co-operative banks and foreign banks. The Private
sector banks are again split into old and new banks.

Reserve Bank of
India

( Central Bank )

Scheduled banks

Scheduled Scheduled

Commercial Banks Co-operative Banks

Public Sector Private Foreign Regional

Sector Banks
Banks Banks Rural Banks

Nationalized Old Private

Banks
Sector Banks
Banks Scheduled Urban Scheduled State

Co-operative Co-operative
Banks Banks
SBI & its New Private
associates Sector Banks
Types of Banks:

Banks activities can be divided into

Reserve Banks of Indian:

The Reserve bank of India was set by the government of India in April 1935 .The Reserve bank
of India , the central bank of our country does not directly provided finance to the exporters .RBI
develop by various schemes to encourage commercial bank to provide a export credit to the
export sector .

Retail banking: Dealing directly with individuals small businesses.

Private bank :Those bank in which majority of stake are hold by private individuals nd not by
the government .

Investment Banking: Relating to the financial markets. Most banks are profit-making,
private enterprises. However, some are owned by government, or are non- profits.

Commercial Banks: A bank collects money from those who have it to spare or who have
saving it out of their incomes , and its lends this money to those who require it.

Community Banks: Locally operated financial institution that empower employees to make
local decisions to serve their customers and the partners

Central Banks: A central bank function as the apex controlling institution in the banking and
financial system of the country . .

Savings Banks: Their original objective was to provide easily accessible savings products to
all strata of population.
Key affecting factors of banking industries

They can be broadly classified into two:

1. Internal Factors
2. External Factors

Internal factors: As the name suggests, Internal Factors are those which affect the share
prices internally, i.e. they are internal to the company or more specifically banks. Some of the
major internal factor that affect are as follows:

Earnings of the banks

Investors invest money in the companies who earn well and in turn give good return on
investment. Thus, a wealthy and a profitable company have good investors and thus have
positive rice movements. Price/Earnings ratio also gives
Market capitalization
A company or banks with high market capitalization turns out to be more popular among
investors. For example, HDFC BANK, ICICI BANKS and SBI are more popular among
investors than other banks because they have huge market share and market
capitalizations.AS market capitalizations. increase, the shares price tends to increase and
as market capitalization decrease, the share price tends to decreases.
Price earnings ratio
Price /Earnings ratio pr the P/E ratio gives us a fair idea of how companys share price of
earnings. If the price of the share is too much lower than the earnings of the company the
stock is has the undervalued and its as the potential the price rise in the future.
External Factors:
Economic factors: includes the structure of the company the industrial,
The industrial, agricultural, tariffs, transport and trade policies of the country, the and
pattern of national income and distribution, the condition obtaining in the primary,
secondary and tertiary sector, the situation obtaining in of payment and balance trade and
various economic policies, these all affect will stock broking industry. Government
changes rules regulation in business.
 Technological factor: now a day the technology as change day by day all the
companies adopting in terms banks now installed their own ATM, through the country
convenient location. Debit card, net banking, phone banking.
Environment factor: Environment factor will also affect the banking industry.
Other factors:
Other factors : like growth of the company, figures of deposits, advances, balance
sheet, profit and loss account. Etc. also affect the share prices drastically for the same is
done in later part of the report
COMPANT PROFILE:

SUCO BANKS IS;

The first co-operative bank to be registered under Karnataka souharda Sahakari Act, 1997.The
first bank to adopt Electronic Fund Transfer Scheme. The first ISO-9002 certified urban co-
operative bank in the country.

SHARING THE SUCCESS:-

The bank believes in sharing its success among the members. The track record of the bank in
distributing annual dividend for the year 1995-1996 is 15 percentage and 1996 to 2002 I 18
percentage. Vardhaman cooperative Bank merged with SUCO Bank. HUBLI

The Vardhaman cooperative Bank with two branches in Hubli and Gadag has merged with
Bellary based Souharda Sahakari Bank (SUCO),which as six branches in the Hyderabad-
Karnataka region.

Chairmen of SUCO Bank and Vardhaman Bank Manohar Maski and A.S. Mantaganikar,
respectively, told presspersons here the merger took place as per the guidelines of RBI and the
new branches of SUCO Bank would be functional in may.

The new branches would be known as Varadhman Branches of SUCO Bank.

Inauguration:

Addressing presspersons on the eve of the inauguration of banks first branch in Hubli, Mr.
Maski said that the bank would be acquiring two more urban cooperative Bank in Belgaum
district and in the Hyderabad Karnataka region shortly.

He said that the Varadhaman cooperative bank of Hubli, which as incurred loss of Rs.6 crore,
had been merged with SUCO Bank and all employees of bank had been retained.

He said that since April, the bank has repaid deposits to the tune of Rs.6 crore to old customers
and mobilized fresh deposits worth Rs.2.5 crore.
Business:

The bank, which was first ISO: 9001-certified urban cooperative bank in the country, had done
business of Rs.105 crore the last financial year and had a net NPA of 1.25 percent, Mr. Maski
said.

Mr. Manohar Maski is one of chef promoters of the Bank. He is the chairman of the bank since
its inception. Born in maski, he did his bachelor of Arts in Raichur and became a social worker
of Akhil Baharatiya Vidyarthi parishad (ABVP), the leading student origination. He worked in
Shimoga and Chickmagalur Districts. He started first Kannada Daily in sindhanur. Soon he
developed a team of young activist who were keen to do something big and constructive. Their
concerted effort resulted in established Janatha Bazaar, a Cooperative body, in 1989. The Janatha
Bazaar is the ONLY profit making organization of its kind in Karnataka state. The success of
the Janatha Bazar made the team to dream still big.

The result of SUCO Bank, which began its operation in may 1995. The bank grew leaps and
bound in terms of innovative services. It is worthy to noted at dozen such urban cooperative bank
were established in Raichur and Bellary districts, taking a leaf out of SUCO Bank success.

Mr.Maski is now in the board of directors, Karnataka Cooperative urban banks Federation
Limited, the apex body of the urban Cooperative Bank of Karnataka state. He is also the
technical Cell of institution.

Mr. Maski is now the Vice Chairman of the newly constituted National Yuva cooperative, a new
initiative by the central Government. He is also the Karnataka head of sahakara Bharati, a social
organization for cooperatives.

SUCO Bank is completely computerized from the day one and believes in catering to the need of
the customer efficiently at all times. The customer can have the luxury of one-to one service,
without having to shuffle between tables. Every staff is capable of providing the customer with
all the information and service needed.
ANY BRANCH BANKING:

This facility is no longer the future tech savvy Multi-National/commercial banks. SUCO Bank
has been providing the service to its rural and semi urban customers since 1997, by using the
high-end software and hardware and network.

LONG TRANSACTION HOURS:

SUCO Bank was the only bank to provide a transaction facilities from 10 am to 6.30 pm. This
amply display commitment of the bank to the customer service.

TELE BANKING FACILITY:

t SUCO Bank will provided Tele-banking facility. SUCO Bank as ensured that the customers
can access the details of the account through telephone lines without leaving the comfort of their
home and not having to travel long distances.

ELECTRONIC FUND TRANSFER SCHEME:

Electronic fund transfer is use to settle a credit card transaction for

transferring fund between the seller and the bank, which as used the credit
card to the customer.

A. SERVICES:

SUCO bank is completed computerization from the day one and believes to the need of the
customer efficiently at all times. The customer can have the luxury of one-to one service,
without having the shuffle between tables. Every staff is capable of providing the customer with
all information and service need

B. Nature of Business Carried :

SUCO BANK Cooperative Bank is the community based organization. They believe in team
spirit and work for the benefit of all those who are in need of financial Assistance to the future
their causes. SUCO Bank Cooperative Bank is a democratic organization in the real sense that it
strictly follows the cooperative principals.
 C. Corporate Vision, Mission, Quality Policy:

Mission statement of SUCO Bank

Aim to provide a range of financial service to the customer.

Practice judicious management of risks and offer services to customers satisfaction.
Maintain transparency in dealing with customers and invariably fulfill all
commitments.
Train employees to render professional and pleasing service.
Give fair return to its members and contribute to their general welfare.

Vision statement of SUCO Bank:

Accuracy and reliability shall be the main stay of service of the bank to provide
utmost customer satisfaction.
The bank ensure safety and profitability of assets by due diligence and by adopting
appropriate information technology.
The bank maintains sufficient bank up of the system and data.
The bank gives maximum opportunity for career advancement of the employment

Product/Service profile:

Products offered by SUCO bank to its customers:

Loan Product:

Auto loan, loan Against property, Loan Against Security, Personal loan,2wheelerloan,
commercial Vehicles Finance, Home loan, Tractor loan, Working Capital Finance, Construction
Equipment Finance, Education loan, Gold loan

Deposit Product:

Savings a/c, current a/c Fixed Deposit, Recurring Deposit a/c Safe deposit Lockers.
Investment & Insurance: Bonds knowledge center insurance, General Health insurance, Gold
Bar/coins.

Services provided by the SUCO bank:

Technology Savvy, Any Branch Banking, Long Transaction Hours, Tele Banking Facility,
Electronic Fund Transfer Scheme, Electronic Fund Transfer.

Area of operation:

SUCO Bank has spread its wings with branches i.e.

Hospet
Hubli
Sindhanur
Bellary
Gangavathi

Ownership pattern:

In SUCO bank shareholder are only the ownership the of the bank. Share are issued to the public,
tax deducted at sources is exempted for shareholder. The bank is managed by 10 Board of
directors elected by shareholders. Precident and Vice president will be elected among the
elected directors.

Competitors information:

SUCO Bank Co-operative bank has competition with all nationalized bank & co-operative
banks. Some are;

SUCO Banks: Success and growth walk together. Within a span of four years of inception,
SUCO Bank has spread its wings with three more branches being started at Gangavati (August,
1998), Raichur (June, 1999) and Koppal (sept, 1999).
The interiors and infrastructure of the branches are in tandem with that of any multinational bank
branches, thus providing the customers a glimpse of how banking business can be conducted.

The competitors for SUCO Bank Co-operative Bank for all nationalized & other co-operative
banks. The other banks competitors with SUCO Bank, as its does not have ATM facility,
Internet banking, In Area of operation, & in other facilities.

Infrastructural Facilities:

Fully computerized
Fully Air-conditioned
Branch license
Fake note testing machine
Fully computerized

The bank had adopted computerization from the day to deliver quick & efficient services to its
customers. Moreover, the bank has nurtured a policies of minimum use of paper its offices. The
bank upgraded its DOS based banking software to a window based version, with more robust &
dynamic futures.

Fully Air-conditioned: Bank had installed the air conditioned environment from the day one.

Fake note testing machine: The bank has provided fake currency defecting machine for
customers it has also installed dual display not counting machines for a reliable & quick services.
WORK FLOW DIAGRAM OF VIKAS SOUHRDA CO-OPERATIVE BANK
LTD.,

Customer (beneficiary)

Choice of scheme

Approaching of bank

Interaction with the officer or branch manager or

Loan application

Doesnt fulfill criteria Fulfills the criteria/ complies to leading terms/ conditions

Reject the application Processing for proposal

Sanction

Customer satisfaction
Future Growth & Prospects:

SUCO Bank is a co-operative bank operating in over a 8 districts of Karnataka with strength of
over 50 employees serving over 32,000 customers. SUCO Bank is a premier Co-operative Bank
which adopt a new technologies to serve better over a 4 branches. SUCO Bank is the NO.1 Co-
operative Bank in Hyderabad Karnataka region whose key focus in service. They are looking
for exceptional talents for the following positions to partner them in the growth.

The Bank closely observe the turns socio economic situation will take in the day to come the
changes that would take place in the climate, agriculture, irrigation,.

Achievement/ Awards:

SUCO Bank has always been the first institution to respond innovative concept. The first co-
operative bank to be registered under Karnataka .

Souharda sahakari act.1997.

The first co-operative bank to adapt electronic fund transfer scheme in karanataka. SUCO Bank
is the co-operative bank to go for managers and acquisition and the this bank.

successively did M&A by mergion to co-operative banks of north karanataka that is shree
varadhaman co-operative bank of Hubli and mahila co-operative bank of Bellary . First
souhardha co-operative bank to go for core banking facility(CBS).The first ISO-9002 certified
urban co-operative bank in the country.
 SWOT ANALYSIS OF SUCO BANK :

STRENGTHS: WEAKNESS:

SUCO Bank is the NO.1 Cooperative Less number of branches

Bank in the Hyderabad Karnataka
region whose key focus is services
.
Yearly 365 days services to customers.

12 hours/day banking facility

E-stamping

OPPORTUNITIES: THREATS:

New technologies Economic down turn

Potential acquisition / merger Competition from co-operative & other

considering improving financial health. nationalized banks
TABLE SHOWING BALANCE SHEET OF SUCO SOUHARDHA SAHAKARI BANK LTD
IN 31/03/2014

LIABILITIES AMOUNT ASSESTS AMOUNT(RS) AMOUNT(RS)

DEPOSIT 183076913.95 CASH IN HAND 1,51,42,876.00
CURRENT 1,48,45,098,.22 Cash in hand 1,51,01,776.00
ACCOUNT
CA-Society 8,20,755.62 ATM cash A/C 41,100,.00
CA-Others 7,30,855.89 CASH WITH 36,01,32,508.19
BANKERS
CA-Personal 1,32,93,486.71 Cash with 1,18,03,352.41
Syndicate Bank
OVERDRAFT 4,72,645.01 CAIDBI Bank 12,50,504.72
CR
BALANCE
RESERVES 16,58,146.00 Cash with HDFC 66,56,002.50
DEPOSITS Bank
RD-Staff 25,000.00 RTGS A/C HDFC 38,15,57,374.82
Bank
RD-Personal 16,33,146.00 Cash with SBI 17,15,007.00
SAVINGS 4,65,08,560.22 LOANS AND 38,17,31,825.86
BANKS A/C ADVANCES
SB A/C-Staff 1,74,865.48 Aaa Term Loan 2,04,94,622.93
SB A/C- 4,61,42,858.74 Aaa Term Loan 2,03,95,550.93
Personal per Half yearly
SB A/C- 671.00 Aaa Term loan 99,072.00
Others Oth Half Yearly
SB A/C 2,507.00 BILL 34,00,000.00
sarvatra PURCHASED
AND
DISCOUNTING
SB A/C 4,000.00 Cheq purchase 34,00,000.00
Premium and discounting
Basic SB 1,83,658.00 BUSINESS LOAN 5,37,01,897.96
Account
SPECIAL TD 1,71,04,700.50 Business loan 5,37,01,897.96
personal
TERM 1,70,69,483.50 Business Loan- 2,09,050.00
DEPOSIT others
OTHER 1,59,56,258.07 CA DEBIT 3,47,069.16
LIBILITIES BALANCE
OTHER 1,59,56,258.08 Current 3,47,069.16
Account
PROFIT & 4,22,25,932.90 CASH CREDIT 62,830.00
LOSS
ACCOUNT
CONTRA 5,00,000.00 CC Personal 62,830.00
INTREST 63,71,088.53 CONSTRUCTION 65,053.00
PAYABLE LOAN
ON
DEPOSITS
CL Personal 65,053.00
INTER 77,91,50,748 CONSUMPTION 15,85,347.08
BRANCH LOAN
ADJ
Sindhanoor 4,84,26,232.61 CC Personal 15,85,347.08
Branch
Gangavathi 75,29,705.60 EMERNCY BUS 48,83,334.00
Branch GOALD LOAN
Raichur 3,96,01,953.75 Emer bus loan- 48,83,334.00
Branch personal
Koppal 4,95,22,797.48 Emer bus loan- 34,030.00
Branch others
HUbli 1,68,73,509.60 GEN TERM 87,86,927.80
Branch LOAN
Royal Circle 55,76,87,762.00 Gen term loan- 87,86,927.08
Bellary personal
Sirguppa 5,47,25,612.00 GOLD LOAN 1,70,15,111.80
Branch
Hospet 47,83,175.00 KANKA VARSHA 9,92,717.34
Branch LOAN
Kanka Loan- 9,92,717.34
personal
KEY LOAN 14,48,05,547.00
Key Loan- 14,48,05,547.00
personal
LOAN ON FD 54,21,877.00
LOAN ON RD 4,051.00
Loan on RD 4,051.00
personal
MORTGAGE 6,46,12,251.44
LOAN
Mortgage loan- 6,46,12,251.44
personal
OVERDRAFT 35,46,968.00
PERSONAL
SITE PURCHASE 48,36,092.00
LOAN
VEHICLE LOAN 2,40,79,530.73
TEMP OD 13,319.00
 OTHER ASSESTS 98,005.00
CONTRA 5,00,000.00
OTHER 9,10,61,571.07
INTER BRANCH 89,88,79,171.75
ADJ

TOTAL 1,02,72,80,941 TOTAL 1,02,72,80,941.5

2013