PREFACE

=============================================================

In the course of B.B.A. we have to prepare a project report on

service sector. Under this work, we have to undergo for practical

work in the banking industry for our project work. I have get the opportunity to do the project in banking sector in the segment of agriculture finance from Rajkot Gramin Bank. I have done comparative analysis, market segmentation & research work on agriculture finance. I have collected information & farmers views on different aspects of Rajkot Gramin Bank.

# INDEX #
SR. NO. 1 2 3 4 5 6 7 8 9 10 11 PARTICULAR GENERAL INFORMATION SERVICE DEPARTMENT PERSONNEL DEPARTMENT MARKETING DEPARTMENT FINANCIAL DEPARTMENT SWOT ANALYSIS MESSAGE TO THEIR CUSTOMERS FUTURE PLAN CONCLUSION SUGGESTIONS BIBLIOGRAPHY 53 55 57 59 PAGE NO. 4 17 25 35 45

INDEX
SR N O . 1.1 1.2 1.3. 1.4 1.5 PROFILE OF COMPANY HISTORY AND DEVELOPEMEMT SIZE AND FORMS OF UNIT ORGANATION STRUCTURE ORGANATION CHART PARTICULAR PAGE N O . 6 7 9 10 11

1.1 PROFILE OF THE COMPAY

Name of the Unit Address : : RAJKOT GRAMIN BANK RAJKOT GRAMIN BANK, MOVDI MAIN ROAD, RAJKOT. Day off : SUNDAY. 520 billion : : : : : Staff Officer Clerk subordinate Total Number 97 63 50 210 April to march Medium Scale Unit (02820) 2360441, Mr.Atulbhai 2368181

Investment Of Company: Accounting Year Size Of Organization PH NO. Chairman Employee

1.2 HISTORY AND DEVELOPMENT

RAJKOT GRAMIN BANK has been established under the Regional Rural Bank Act 1976 passed by the central government of India. The bank opened on 26th December 1978 with a view to provide credit facility to poor and down trodden rural mass of region and provide limited banking service to rural people. Bank had played very effective role to uplift the poor rural mass. Then bank was catering the services to targeted people only where very meager scope was available to make bank viable or profitable. After banking sector reforms the RRBs were entrusted full form banking role to make them sustainable. In line with policy RAJKOT GRAMIN BANK too have changed their working and became profit-making unit without loosing its service motto. The Bank has very good network of 53 full fledge branches 6 satellite offices. The bank has very large asset base mainly agriculture credit, it also held handsome core deposit of the region. RAJKOT GRAMIN BANK having its head office at khodiyar colony, aerodrome road, Jamnagar. At present, bank has 53 full fledge and 6 satellite branches in both the districts. The bank has been sponsored by state bank of Saurashtra, H.O., bhavanagar share

capital belongs to SBS,15% state govt. and remaining 50% belongs to Govt. of India. The bank performs all the normal banking activity according to banking regulation act provision. It is under direct
7

Supervision of national bank for agri. and rural development (NABARD) and reserve bank of directors consisting 10 members Including chairman. Govt. of India appoints three members. Three by sponsored bank i.e. state bank of Saurashtra and three by state govt. these include also nominee from Nabard, RBI and also experts from various fields. The bank has an administrative set up consisting of chairman, gen.manager and various dept. heads viz, advances dept., planning dept., personnel dept., audit and inspection dept. etc. at banks head office and branch manager as head at various branches of the bank.

SIZE OF THE UNIT AND FORMS OF ORGANIZATION

In every country Government adopts a different policy for measuring the size of the Unit. In the new policy, Government adopts investment measuring policy. On the basis of capital investment the industry can be divided into the following part: 1. Small Scale Industry (1 to 3 crores) 2. Medium Scale Industry (3 to 100 crores) 3. Large Scale Industry (Up to 100 crores)

So RAJKOT GRAMIN BANKS investment is 520 billion. So this unit is known as large scale unit

ORGANIZATION STRUCTURE
Organizational Structure:
Branch Urban Semi Urban Rural Total Number 2 5 46 53

Branch Network
Urban 4% Semi Urban 9%

Rural 87%

The Bank has two-tier structure. Operational offices which known as branch. Controlling office which known as head office. At present Bank have 53 branch units and 6 satellite centers functioning in two districts i.e. Jamnagar and Rajkot. The branches are providing full fledge banking services to its large cliental base while satellite centers are providing limited service access.
10

ORGANIZATION CHART
1 Organizational set-up at branches:

Branch Manager

Cashier cum clerk

Messenger

11

ORGANIZATIONAL SET-UP AT HEAD OFFICE:

Chairman

General Manager

Vigilance and Inspection department.

Planning and Investment department

Personnel, account and premises, dead stock and stationary department . Loans and Advances department.

12

13

Index

PARTICULAR
2.1 2.2 2.3 INTRODUCTION VIEW OF SERVICE MANAGER LIST OF DIFRIENT SERVICE

PAGE NO.
15 16 17

14

INTRODUCTION

With years, banks are also adding services to their customers. The Indian banking industry is passing through a phase of customers market. The customers have more choices in choosing their banks. A competition has been established within the banks operating in India. With stiff competition and advancement of technology, the services provided by banks have become more easy and convenient. The past days are witness to an hour wait before withdrawing cash from accounts or cheques from north of the country being cleared in one month in the south. This section of banking deals with the latest discovery in the banking instruments along with the polished version of their old systems. Banks in India with the way of development have become easy to apply in loan market. Generally, Loan against Shares, Personal Loan, Home Loan, etc, Loans is given by almost all the banks in the country:

15

VIEW OF SERVICE MANAGER

As per the service manager, the service the facility provided to his customer. There should be sepret department for the customers problem related services provided by bank. In the RAJKOT GRAMIN BANK, there is also sepret department for service. This department provides services related information about facility of bank.

16

LIST OF DIFRIENT SERVICE

===============================================================

DEPOSITS :: Current deposits (account) Fixed deposits (account) Saving Bank Deposit Special Term Deposit

Advances: 1. Crop Loan to farmers. 2. Loan for farm mechanization. 3. Loan for irrigation purpose. 4. Loan for purchase of milk animal. 5. Loan for purchase of land or for rehabilitation of land. 6. Loan to small and medium entrepreneur. 7. Loan to trades and industries. 8. Loan to service sector. 9. Loan for purchase of consumer durables or two wheelers to working class / service class people. 10. Loan for purchase of two wheelers for farmers. 11. Loan to transport operators. 12. Loan for the purchase of house building. 13. Loan for education purpose to students. 14. Loan / over draft facilities against banks fix deposit receipt. 15. Loan against RBI bonds. .
17

18

# INDEX #
1. SR. NO . PARTICULAR PAGE NO.

2. 3.1 INTRODUCTION 3. 4. 5. 6. VIEW OF PERSONAL MANAGER GUIDELINE FOR EMPLOYEE RECRUITMENT AND SELECTION TRAINING AND DEVELOPMENT

26

7. 3.2 ORGANIZATION CHART 8. 3.4 PROMOTION FACILITY 3.5 3.6 WAGES AND SALARY OTHER FACILITY

27 30 31 32

19

3.1 INTRODUCTION
According to French, Personnel management is the recruitment; selection, development utilation of & accommodation to human Resources by organization consist of all initials regardless of their role, who are engaged in any of the origination activity. Manpower is the most important resources among all the resources. He How many finds you have, how much technological advancement manpower. So, man is most important resource so a medium is required to manage these resources. So they are to manage this resource. So there is a personal department Management is the development of people and not mere direction of resources. Human Resources are the greatest assets for any business enterprise. The essential ingredient of Management is leadership and direction of people. Personal management is process of attracting, holding & motivating people involving all managers line & staff.

20

VIEW OF PERSONAL MANAGER

As per the view of personal manager, the employee be selected that, who are very professional and qualified. Because banks transition depend upon that person. The employee should select as per the requirement of the job. Because the extra employee is harmful for the firm and they reduce the profit of the firm.

21

RECRUITMENT & SELECTION

Recruitment is convinced with the identification of sources from where personal can be employed and motivating them to apply for employment. For recruitment of officers and staff members, on advertisement is given in the newspaper, mentioning the requirement of that personal department receives applications. These applications are sovtinised as per the concerned department head. The suitable applicants ate them called for personal interview, which is connected by the interview committee, which normally comprises of two persons from the personal department and one from the administrative department and the connected department head. Here recruitments end and selection start. Selection is a process in which the choice of person is to be made out of available candidate. Selection is a process of choosing most suitable candidates out of total number of applicants. Following are procedures for selection. (A) Application blank (B) Interview (C) Reference checking (D) Placement

After completing the doing formalities the candidates has to undergo orientation and induction program arranged in order to acquaint the nearly rules, polices, working system of every department and to introduce him to the department on the completion of the program the employee has to submit his about observation during induction program.

22

3.4 TRAINING AND DEVELOPMENT

Once in a year training is given to the workers. This is given on the all India level with only difference in language under All India Workers Education Scheme. It was actually started in Baroda on 10th September, 1996 and then in Ahmedabad in 1947. Human resource is most important resource of all the resources. So if this resource is sound and strong it ultimately leads to higher productivity of the organization. In the . have no separate department for training. They give the training through senior employee. The new employee known about work by the superior. In the RAJKOT GRAMIN BANK , Gives wages during the training period of time. This wage is minimum RS. 80 per day.

23

3.2 ORGANISATION CHART

in the RAJKOT GRAMIN BANK . There is personal department. So origination personal department under.

B.O.B

Recruitment Officer

Branch manager

Supervisor

Employee

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3.6 PROMOTION AND TRANFAR

Promotion can be defied as a movement in job, means to move one step forward in post which results in to higher wages and salary, better status and prestige, higher challenger and authority. Promotion is given in this bank on the seniority basis.

Transfer means, the change of work place. In this situation the worker gets same salary, which gets first. Transfer gives for more experience. In this unit transfer also. Transfer gives as employee expectation and bank benefit.

25

PERFORMANCE APPRAISAL
===============================================================

For personnel management a performance appraisal is an important tool. Performance appraisal means persons performance in the company. Ones the employee has been selected trained and motivated, he is then appraised for his performance. Performance appraisal is the step where the management finds out how effective it has been at hiring and placing employee. A performance appraisal consists of evaluating an employees performance of a job in terms of a job in terms of its recruitment. RAJKOT GRAMIN BANK consider its employees as its most valuable and therefore it believes in perfect and accurate performance appraisal system. They believe that employees efficiency, productivity and great performance is a ladder to success. RAJKOT GRAMIN BANK has an efficient performance appraisal system for evaluating their employees performance.

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3.7 EMPLOYEE BENIFIT

This, RAJKOT GRAMIN BANK , gives much facility to the worker. So worker get more benefit .so unit get good result. This bank gives this facility to his worker. >> Promotion facility >> Medicines facility >> Loan facility >> advances facility >> Free account

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28

# INDEX #
SR. NO. PARTICULAR INTRODUCTION VIEW OF MARKETING MANAGER ADVERTISING ORGANIZATION CHART CATALOGUES COMUNICATION COMPETITORS MAJOR COMPETITORS SALES PROMOTION PAGE NO. 36

37 38 39 41 43

29

4.1 INTRODUCTION
Marketing management is an important area of business. Production of good is meaningless unless the goods are slot. Marketing enables a business. The term of marketing has been derived from a word from market. A market menace the buyer and seller of a product and the interdict who facilities the parches and sell. Marketing means, by which product are matched with the demand and through which the consumer is able to use and enjoy the product. Marketing can be defined as THE ACTIVIES OF BUSINESS THAT DIRECTS THE FLOW OF GOODS AND SERVICES FROM

PRODUCERS TO ULTIMATE CONSUMERS

Head of Department

RAJUBHAI

30

VIEW OF MARKETING MANAGER

As per the view of the marketing manager, the marketing activity is most important then other activity of business. The channel of distribution plays an important role in market activity in the movement of flow of funds. If any firm adopt long channel then for him that is very harmful for the bank. In the bank marketing activity is related to give more loan and getting money from the public.

31

4.2 ORGANISATION OF MARKATING

In the; RAJKOT GRAMIN BANK . This type of chart work for marketing department.

Chairman Managing Director

General Manager

Marketing Manager

Sales Manager

Aria Manager

Typist

Branch Manager

Clark

32

4.4 ADVERTISEMENT
Advertisement decision is a very crucial decision because it may effect and reflect the whole marketing strategy. Through advertisement we can increase the sales or produce more and more production. Any paid form of no personal communication of ideas, goods or services By business firms identified in the advertisement message intended to, Lead to sale immediate. Advertisement decision is a very crucial decision because it may effect and reflect the whole marketing strategy. Through advertisement we can increase the sales or produce more and more production. Through the averment can increase demand of commodity or product. So, more customers will come for pures goods. The RAJKOT GRAMIN BANK gives the advertisement through magazines and papers like Times of India, Indian Express, as well as in local magazines etc. And they also give information about product in internet.

33

CUSTOMER CARE DEPARTMENT

In each and every company required to maintain their customer. So RAJKOT GRAMIN BANK. Thinks about of it and they gives customer care department. In this department they give different kinds of services about the customers problems and try to solve their problems.

The customer problems related with the following details. 1) Related to problems about present policy for agriculture instrument. 2). Related to premiums terms and conditions 3). Related to withdraw fund which is invested 4). Related to knowing present offers and benefits 5). Related to cancellation of policy 6). Related to opening account. Customer can contact to the customer care by following details by the phone and also go through bank.

Address:RAJKOT GRAMIN BANK, Movadi main road, Rajkot.

34

COMPETITORE
Bank is facing very little competition as other players were thinking that rural market is not profitable for them according to cost concern. But after application of technology in industry the major banks had reduced their cost to the large extent. Even research figures of last few years also indicate that rural market is growing very rapidly and found quiet potential than its counterpart urban market. This has changed the attitude of other banks and they eye on this growing market segment. Till now the bank has competition from primary agriculture credit societies and co-operative banks. But now private sector banks like ICICI bank, HDFC bank, UTI bank, IDBI bank and even state own large bank SBI is looking forward to tape more and more rural business, specially agriculture business by making tie-up arrangement with dealers of tractors, pump-set manufacturers etc. They also found micro finance as very profitable business because there is very low risk and high return in the business. They are linking more and more Self Help Groups (SHGs) as they can serve 20 people through one single account. The recovery rate in SHG finance in India is very high.

35

CUSTOMERCARE DEPARTMENT

36

4.5 SALES PROMOTION

Generally promotion means to give more salary or more work. And by the sales promotion employee do work good so can archive our goal easily goal. If worker work at one place then he will burring their work. It is harm full for any firm. With the help of promotion we can increase the encouragement of a worker to show better performance. It would be possible only when his needs are recognized and satisfied. It means give to the best post and its benefit is that employee are motivated them and try to do more and more work. When the worker do same type of work in many period of time his interest with the work is come to down and finally he cant do proper work. In the RAJKOT GRAMIN BANK. they give sales promotion and other promotion. If the salesman gets more and more people for open account in bank, they will get one step promotion in his field.

37

38

# INDEX #
SR. NO. PARTICULAR INTRODUCTION VIEW OF MANAGER ORGANIZATION CHART PERFORMANCE CAPITAL STRUCTURE WORKING CAPITAL MANAGEMENT ORGANATION STRUCTURE MANAGEMENT OF FIXED 48 49 50 51 47 PAGE NO. 46

39

5.1 INTRODUCTION
Financial management is an important because it has an impact on all activity of a firm. Its primary responsibility discharge the finance function successfully. It touches where, on all the others business function. All business decision may financial affect different department of an organization. Definition by J.F. Brandly: financial management is the area of business mgt. devoted to a judicious use of capital and a carefully selection of sources of capital in order to enable a business firm to move in the direction of reaching its goal. Head of Department : Mr. Atulbhai

40

Performance highlights of Racket Gramin Bank:

Bank is growing in the region in line with industry growth and improving its market share year by year. As on 31st March 2005 deposit base of the bank was Rs.223.25 cores while the bank advances stood at Rs.135.50 crores and further grew to the extent of Rs.195.00 crores as at the end of September 2005.Banks investments as at on 31st March 2005 stood at Rs.76.33 crores. Credit Deposit Ratio of the bank is around 61 % as on 31st March 2005 well above the state average. Banks productivity is also marginally increased. Per branch business of the bank as on 31st March 2005 was Rs.6.77 crores while it was Rs.6.41 crores as on 31st March 2004. Similarly per employee business also grew and was Rs.1.71 crores as on 31 st March 2005 from Rs.1.59 crores year ago. During the year bank earned profit to the tune of Rs.19.27 lacs after making all expenses and provisions. Bank is also succeeded to bring down its non-performing assets well below the national average. The Banks NPA % to total advance is just 2.90 %.

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CAPITALSTRUCTURE ==========================================

Generally capital is most important factor of any firm and any type of business. Without capital cant possible start any business or any type of activity. In other way we can say capital is a blood of any business. Without capital, business is nothing.

In the RAJKOT GRAMIN BANK have different types of capital its details are as under.

2002-03 Particular Total Assets Net worth Loan Outstanding Pre-tax Profit (Rs in billion) 501 207 454 15

2003-04 (Rs in billion) 559 219 488 15

42

WORKETING CAPITAL MANAGEMENT ==========================================

The need of the working capital cannot be over emphasized. As already observed, the objective of financial decision-making is to maximize the shareholder. To achieve this, it is necessary to generate sufficient profits. The extent of which profits can be earned will naturally depend upon the magnitude of the sales among other things. A successful seller program is in other words necessary for earning profit by and business enterprise. However sellers do not convert into cash instantly. Therefore a need of working capital in the form of current assets to deal with the problem arising out of the lack of immediate realization of cash against goods sold.

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FINANCIAL PLANNING
Planning is master minding the future any attempted to neither do so is foolish human being can neither predict nor central the future. Planning is very necessary for the smooth running business. A business cans not be carried without planning. Planning means deciding in advance what is to be done. There are four basis of planning.

(1) (2) (3)

FUTURE PLANNING OF NEW ACCOUNT PLANNING ABOUT RAISE FUNT

GIVE MAXIMUM LOAN

The RAJKOT GRAMIN BANK. Taking finance some time from cooperatives bank and also state bank of India cash credit and the commercial co-operative bank also gives short-term loan.

44

ORGENATION STRUCTURE

The RAJKOT GRAMIN BANK, this type of organs chart. Financial Manager (ATUL BHAI)

Chief Accountant

Accountant

Accountant

45

SOURCES OF FINANCE
The RAJKOT GRAMIN BANK gets finance from 1 2 3
4

by saving account by long term loan by issue public deposit

by issuing some insurance plane

NO A) BANK FINANCE B) SELF FINANCE VILLAGE M OTA VA LA DA JUVANPAR AMRELI IASWARITA SORTHA PATAMEGAPAR A 25 16 22 15 14 8

PER 100 0 B 0 0 0 0 0 0

SOURCE OF FINANCE
NO.OF RESPONDENT 120 100 80 60 40 20 0 BANK FIN. 0 SELF FIN. PARTICULARS Series1 100

46

5.3 Management in a fix asses

Generally fix capital is also most important part of any organization structure. There is a many al decision-making is to maximize the shareholder. To achieve this, it is necessary to generate sufficient profits. The extent of which profits can be earned will naturally depend upon the magnitude of the sales among other things. A successful seller program is in other words necessary for earning profit by and business enterprise. However seller do not convert into cash instantly. Therefore a need of working capital in the form of current assets to deal with the problem arising out of the lack of immediate realization of cash against goods sold. In the RAJKOT GRAMIN BANK, Has fix deposits. Its information is as under.

2002-03 Particular Total Assets Net worth Loan Outstanding Pre-tax Profit (Rs in billion) 501 207 454 15

2003-04 (Rs in billion) 559 219 488 15

47

Swot analsis

Swot analysis of banks current. Means his strengths, weakness, opportunis, and threath.

STENGTHS

WEAKNESSES

S.W.O.T. ANALYSIS

OPPORTUNITES

THREATS

48

STRENGTH :: This bank is very reputed in local (Rajkot) area. Strong brand equity in local (Rajkot) area. Fully computerized. Profitability & sound liquidity. Branches in all most developed part of Rajkot. No mistake in regular transactions can be found because of small network. Farmer have have trust on this bank.

WEAKNESSES :: Lack of modern management concepts and sometimes communication gap can be found which indicates lack of professionalism.

Bank is not providing A.T.M. facility in the recent developed era and Bank is not fully developed in modern era. Lower volume of advances due to higher rate of interest may affect the expansion of the organization. Not reputed at national level and less no. of the branches.

49

OPPORTUNITIES :: Bank can open branches at state level in near future. Number of branches can be increased in all over nation next 5 to 8 years. Bank can introduce new services like, NRI loan, ATM, student account with minimum Rs. 100 etc. Bank can perform marketing activities by media. Bank open branches in village

THREATS :: Changes in government policies and in rules and regulation regarding bank can be disturbed in regular services of bank. All the depositors may withdraw their money from bank because of any wrong rumors against bank.

Some

times

farmer

withdraw

his

money

at

immediately because of low rain condition.

50

51

FUTURE PLANS
The future plan of the banks diversification of the industry for agricultures wealth. And they are going to established new branches at all village which is under his area. His plane is give insurance to all farmers The plane is open maximum account in that bank. The plane is to give maximum subsidy to the farmer.

52

53

CONCLUSION

As survey is sample survey in the nature and it has limitation it is difficult to conclusively comment on it. But the utmost care has been taken in selecting the villages, which reflects the fair view of both the district. The farmers selected too are the best representatives of the area farmers. I tried my best to justify the task. I also tried hard in getting practical training at Rajkot Gramin Bank, Rajkot branch and did my best to understand their day to day functioning and other related aspects. In this project, I tried to understand the working style of RAJKOT GRAMIN BANK , their various structures, attitude and approach of their officials and other staff in thorough. I found them customer friendly and motivator to the public. The bank has created very good reputation amongst farmers and other people in the region. The existence of the bank had played significant role in the economical development of the region.

54

55

SUGGESTIONS
I give some suggestion to the RAJKOT GRAMIN BANK, as under. Due to globalization competition has increased in the banking also, so this bank should be computerized as early as possible. They should give more adverting through the local news paper and news channel. They should open his branches at all village which is comes in his area. They should issue questionnaire once in year.

56

57

BIBLIOGRAPHY

(1)

Marketing Management

Philip Kotler

(2)

Finance Management

I. M. Panday

(3)

Personnel Management

C. B. Mamoriya

(4)

Material provided by RAJKOT GRAMIN BANK

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