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Vijay Commercial Cooperative bank

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									               A REPORT ON
          (VIJAY BANK)
Submitted To :: -

Submitted By :: -
            BHALANI SUNIL A.
                 (S.Y. B.B.A)
 Guidance :: -
               MISS KHYATI PANDYA

Academic Year :: -

College :: -
               R.P.BHALODIA COLLEGE
To be successful in any field, just academic qualification
does not work. One has to have detailed knowledge about
the practical aspect on it. Practical training is a heart of
management education. Being unlearned about this, the
practical study of an industry has been included in the
curriculum of Bachelor of Business Administration (B.B.A)
course by Saurashtra University.

As a student of Second Year B.B.A., I have prepared a project
report on Vijay Commercial Co-operative Bank Ltd.

This project is based on the information colleted from various
departments of the bank. A sincere effort has been made to
cover all aspect and provide the latest information about
bank’s policies and practices

                                     Sunil A. Bhalani

      The preparation of the report is my own work, but I have
taken help from many persons. I am thankful to all those persons
who helped me in activity out this work.

      First of all I would like to thank Saurashtra University who
give me this golden opportunity. I express my deepest of gratitude
the manager (Banking) Mr.M.D.Thakar and mr. Anuragbhai
LTD.”and all the members who provided all the necessary

      He gives me grate pleasure in thanking MISS.KHYATI
PANDYA who helped me out in my work. Without him ever ready
help, whole hearted guidance, never ending encouragement and
enthusiasm. It was difficult to bring this report to its present form.

      I would be failing my duty if I will not mention thanks to
family members, relatives and friends to helping me throughout.

                                                 Sunil A. Bhalani

      I, the undersigned SUNIL A. BHALANI student of

S.Y.B.B.A.   from   the   Shri   R.P.BHALODIA     COLLEGE      of
Commerce & Business management & Computer studies, declare
that this project report is prepared by me. I had taken a help of
my college and professor for the purpose of guidance only and to
add that, myself prepare this report.

                                           Sunil A. Bhalani

Preface                                 2

Acknowledgement                         3

Declaration                             4

Banking Sector In India                 9

General Information Of Co-Op. Banks   12 - 20
    Introduction                       13
    Definition Of Co-Operative         14
    Principles & Characteristics       15
    Types Of Co-Operative Bank         17
    Role Of Co-Operative Bank          19
    Registration & Licensing           20

VIJAY BANK At Glance                  21 - 28
    Introduction                       22
    Corporate Mission                  23
    The Executive Committee            24
    Branch Network & Structure         25
    Awards & Accolades                 26
    Relationship Management            27

Services At The VIJAY BANK                29 - 40
    Introduction                           30
    Depository Services                  31 - 33
         Current Deposit                   31
         Saving Deposit                    32
          Fixed Deposit                    33
    Advance Services                     34 - 38
         Business Loan                     34
         Term Loan                         35
         Personal Loan                     36
         Loan against NSC / KVP / LIC.     37
         Home Loan                         38
    Other Services
         Safe Deposit Vault                39

H. R. M. At The VIJAY BANK                41 - 53
    Introduction                           42
    Human Resource Policies & Program      43
    Recruitment                            45
    Selection                              46
    Orientation                            47
    Placement                              48
    Employee Remuneration                  49
    Training & Development                 51
    Promotion & Transfer                   52

Marketing At The VIJAY BANK                54 - 57
    Introduction                            55
    Promotional Activities                  56
    Marketing Research & Information        57

Finance Management At The VIJAY BANK 58 - 64
    Introduction                            59
    Financial Planning                      60
    Capital Structure Of The VIJAY BANK     61
    Capitalization                          62
    Cash Management                         63
    Finance Information                     64

S. W. O. T. Analysis     65
Future Plan              68
Suggestion               70
Conclusion               72
Bibliography             74

In India
                BANKING SECTOR
                          IN INDIA
      The importance of banking as the nerve sector of economic
development can not be over emphasized. Banking industry has
acquired a key position in mobilizing resources for defense & for
socio economic development of the country. It is said that “Bank
which are that need of & great wealth of our country have got to
be kept very sacred. Just as water is for irrigation, good banks are
for the country’s industry & trade.” Since the beginning of
planning in India banking industry has grown not only in size but
also in depth this industry has become one big complex.

      Today banks have become a part & parcel of our life. Ti was
the time when the dwellers of city alone could enjoy their
services. Now banks offer access to even a common man & their
activities extend to areas hither to untouched & after the
globalization & liberalization policy of India, many foreign banks
have entered in Indian market with different services &
innovation technologies. Apart from their traditional business
oriented functions, they have now come out to fulfill national
responsibilities. Today’s banks cater to the needs of agriculturists,
industrialist, traders, women, students & to all other sections of
the society. Thus they accelerate the economic growth of a
country & steer the wheel of the economy towards it’s goal of
“Self reliance in all fields.” Hence today banking sector has
become the lifeline of the economy.

     In present age in India there are many banks including
foreign banks, public sector, private sector, commercial banks &
co-operative banks.

      Over the year the difference between co-operative banks &
commercial banks has blurred as they all have come under a
common law. All products & services are offered by co-operative
banks are on the par with commercial banks, with a few
exceptions related to government business. In 1904 the co-
operative movement started in India with a view to provide
finance to the agriculturist at a low rate of interest. The co-
operative society has to take the place of the money lenders &
provide cheap loan to the farmers for productive purposes. Even
though many types of co-operative societies have been started
particularly for the artisans & others, the most common form of
such societies deal in rural credits. And today co-operative banks
have started verities of services with different technologies. Once
the Mahatma Gandhiji has remarked that “there is sweetness in
co-operation; there is no one who weak or strong among those
who co-operate. Each is equal to other.”

      So, after having such easy government policy, today many
co-operative banks have started in India. And they are catering to
the all section of the society, & also today co-operative sector has
grown in all over the world, with globalization of the world they
have also started to implement new technologies & various
management tools. Now, they are in same market with all the
other banks. So, by this way the co-operative banks are in the key
position in the economy.

      Co-operation has been defines in slightly different ways in
various sciences & by various scholars. This is due to its flexible
nature which can lend itself to variety of purpose & social system,
in order to have a through understanding of the concept some
well known definitions are discussed below.

      “Co-operation is a form of organization where in persons
voluntarily associate together as human beings on a basis of
equality, for the promotion of economic interests of them selves.”

                                                -Hubert Calvert

      “Another protagonist is an association for the purpose of
joint trading, originating among the weak & conducted always in
an unselfish spirit, on such terms that all who are prepared of
assume the duties of membership my share in it’s reward in
proportion to the degree in which they make use of there

                                                 - C. R. FAY

      Careful analyses of the above definitions will reveal the
following principles & characteristics of co-operative organization.

      Co-operative organization is purely a voluntary association if
individual who join together for betterment of their economic
interest through collective efforts. A member is at liberty to leave
the organization at any time & withdrawal his capital by giving
due notice. But it should be remembered that a member is not
allowed to transfer his shares to another person as found in the
company organization.

      Membership of co-operative organization is open to all
irrespective of religion caste, colour, creed, political affiliations
belief & status to which a person belongs. The membership fees
& the entrance fees are kept relatively low so as to enable the
economically weak to become the members.

      Equality is the quintessence of co-operative organization.
Members have equal voice in the management of it’s affairs with
the underlying principle “ ONE FOR ONE VOTE .“

      It is mainly intended to goods first to it’s members & then
to outsiders at profit the primary aim of any co-operative
organization is to render service to its member. So these are the
primary motive or principles. There are other principles, co-
operative organization has to follow those principles like state
control, democratic organization etc.

        There are mainly three types of co-operative banks
in India.
              State co-operative banks
              Central co-operative banks
              Urban co-operative banks

        These banks are also known as apex bank & are registered
under co-operative societies act – 1912. In fact these banks are
established to function as a leading co-operative financial
institution of the state offer co-operative societies should grow.
The “apex banks “as they are called are they to render financial
help as & when the co-operative societies are in need of their


        A district level of central co-operative banks is functioning
as a commercial bank & that too as an independent unit. They
are there in order to strengthen the co-operative movement in the
country. In fact these banks are the key link between people &
apex bank & render valuable services to downtrodden & rural folk
in taking them out of the financial wood central co-operative
banks get funds from
(A) share capital (B) deposits (C) financial help from state co-
operative banks (D) state bank of india & (E) commercial banks.
Their working capital is usually provided by state government.

      Urban co-operative banks are organized & established in
towns on the pattern of joint – stock banks but are established
under co-operative societies act – 1912. For funds these banks
depend on their own sources. However central co-operative banks
are helping them in financially viable. Central co-operative banks
are directly links with the state co-operative banks. Urban primary
co-operative banks provide funds to rural folk in easy terms to
help them in agriculture work aid its development today they
have started playing a significant role in rural upliftment. They are
in tune with the government policies & program.

                          ROLE OF

      Now-a-days co-operative banks are progressing very fast
then any commercial or nationalized banks. The customer service
lending services & other banking facilities given to the society is
being better than other banks. So people are also being attracted
& interested in co-operative banks.

      The main aim of the bank is to extend credit facilities to the
small traders, workers & other middle class people. This bank
derive their funds for working partly through share capital
contributed by the members & partly through deposits collected
from members, general public & render usual banking services.
The liability of members is normally unlimited. This enables the
society to raise funds from outside agencies & also encourages
member to take keen interest in working of the society.

      There should be co-ordination between the state co-
operative department & RBI for the registration & licensing of
urban banks. Urban banks should build up their share capital &
reserve to the revised minimum level with in period of 3 year
which can be extendedly by the RBI to a further period of 2 years
whenever necessary.

      For organization or urban co-operative bank in each state
there should jointly survey local areas & identify the potential
growth centers where urban banks could be organized once such
centers are located prominent person of the locality might be
contacted to seek their assistance for registration of the urban
banks. New banks are to be organized in backward areas or by
weaker section of the community may not be able to collect the
initial minimum share capital required for obtaining license.
Government assistant in the form of share capital contribution for
such new banks may be equal to that collected by members.

      These banks derive their funds for working partly through
share capital contributed by the numbers & partly through
deposits collected from members & non-members & renders
usual banking services. The shares are of higher value. But the
liability of the member is limited to the extent to the shares hold
by them.

Vijay Bank
  At A


      Vijay commercial co-operative bank ltd. popularly known as
Vijay bank is established on 25 - 11 – 1975. At present Vijay bank
has achieved a key position in the market of Rajkot. It has 4
branches in all over Rajkot including main branch with the
advanced technologies and educated staff, as it said that “In the
emerging competitive business environment Co-operative banks
who adhere to strict financial discipline. Only will survive” On this
basis at present Vijay bank is becoming more prestigious in the
banking sector.

Survive to the common man.
Enhance the value of share holders.
Emerge as a symbol of public trust & confidence by creating
a positive image.
Maintain excellence in operation & management by
bringing in transparency & integrity.
Develop & motivate human resource there by cultivating
professional culture in the banking operation.
Ensure speedy & satisfactory customer services through
continuous product innovation & aggressive marketing


Chair man       : Mr. Pravinbhai Dholkia
Vice chair man: Mr.Vimaybhai Rajguru
Gen. Manager : Mr.Bakulbhai Doshi
Managers       : Mr.M.D.Thakar
Directors       : Mr. Gunvantbhai Delavala
                 Mr. Vajubhai kotak
                 Mr. Bhaichandbhai gadhiya
                 Mr. Kalpakbhai doshi
                 Mr. Mukeshbhai doshi
                 Mr.Rameshbhai dhetiya
                 Dr. Jitendrabhai amlani
                 Dr. Kamalbhai parikh

1   Main Branch.
    “Vijay bhavan” kanak Road Rajkot –360001.
    Phone : 2222785, 2234748

2   Marketing Yard Branch
    Near marketing yard, Rajkot.
    Phone : (0281) 2704575

3   Sorthiya Vadi Branch.
    80feet Road, Rajkot.
    Phone : (0281) 223420

4   Stock Exchage Branch
    Sadar bazar, Rajkot.
    Phone : (02821) 2490122




      The importance of relationship can not be measurable in
our life. In our life we have to maintain such relation, we can not
across it. In earlier we use to call it maintenance for relation but
now a days it is being called as relationship management.
Without maintaining relation, firm can not go further or can not
get development. Because without customer or employee, who
will give importance to the organization. But an organization
needs to keep its eye on every side and need to manage every
relation. For every organization there are main three relations
such as customer relation, employee relation and social relation.


      To provide best service to customer it would be difficult task
for Vijay bank if there would not proper human resource
management. In success of any organization, relationship
between employee and employee, employee and management
employee and labours etc. should be good. Vijay bank takes care
it’s employee just like a family member. And not only looks after
their intelligence but also takes care of there emotional and
spiritual quotient. Bank has maintain healthy relation with there
employee, bank also tries to satisfied there need.


      Bank has maintained health relation with society also.
Society consist of other bank, government, businessman etc.
bank has to maintain good relation with societal factor. So by this
way for Vijay bank relationship management is as important as
other management and as a result of good relationship
management, today bank has very strong market position and
goodwill in society.


      Vijay bank believes that customer satisfaction is it’s best
reward by providing best services so customer is a king for Vijay
bank. Bank always tries to maintain healthy relation with

Of The
      It was a time when a function of the banks limited to the
collection saving from the public & lending to the people who are
in of money. But in modern age, now it’s not like that , in modern
time banks have become the important part of colony due to the
only expansion in the function. One reason for development in
banking function is that the developing of the market means
today’s competition & to maintain position in the market banks
they have to develop their services. The modern function or the
services provided by the banks are as follows.

      To collect spare funds from people’s saving & pay them
      To make these funds available to the businessman &
      industrialist as loan & advance. They charge interest from
      They also help in assisting international trade by arranging
      exchange of currency to another one.
      Banks render services for the welfare & development of
      weaker section of the society, they help in setting up small
      industries, cottage etc.
      Banks help farmer to buy tractors & other agricultural
      equipments, middle class people to buy home appliances
      like T. V. & provide finance for house.

      In Vijay Bank out of these services most of services are
being served. Not only that but also they are providing Cash card
facility, Demand draft facility & many other services.

                 CURRENT DEPOSIT
      Current account refers to regularity of transecting in
account with in banking hours on all working day. The banker’s
liability in this regard is to honor all the demand of the customer
to the extent to which his account shows a credit balance. It is
because of this obligation current account deposit is known as
bankers demand liability & in order to fulfill this liability they
keeps sufficient cash ready every moment.

      A current account is an account which is generally opened
by    businessmen,      companies,     institutes,   corporations,
industrialists etc.

      Who have huge working capital in their hand.
      Who are interested in keeping money safe.
      Who transect with their banker daily.
      Who received and make payment usually through cheques.
      Who utilize the agency services of the banker frequently
      Who are engaged in large scale business activity, social
      services and government activities.

                  SAVING DEPOSIT
      Saving deposit account is an ideal account or those who
have money to save but who can not advantageously invest them
any where else as their saving are not of much significance to the
capital market because their saving are too small. This amount is
therefore meant of smaller saver. The account is therefore
encourages small saving and tries to forge a saving habit in the
general public. The attitude to save is important which this
account tries to create and thus mobilize such small savings for
greater social good saving deposits account is for that section of
society and put to fruitful utilization.

                    FIXED DEPOSIT
      This account attracts those customers who have money
invest for a longer period but do not want to take much of risk.
Such person prefers to deposit with commercial banks for a
specified period at a specified rate of interest. The interest rate
varies from one period to another. A deposit of 15 days attracts a
smaller rate of interest and deposits for 5 or more years. The
highest rate of interest. The period for which deposits are to be
made depends upon the depositor himself. However, once a
decision is taken by the depositor any money deposit usually he is
not allowed to withdrawal the same before the interest earned till
that date or accepts a lower rate of interest than stipulated at the
time of deposits.


                BUSINESS LOAN
      Any kind of traders, businessmen or a person, who is going
to start a new business, can get business loan. Bank grants
business loan for the purpose of fulfillment or short term working
capital need in the business.

      Bank grants this type of loan Rs. 2 lacs to maximum 10
      A person who is gating business loan having repaying
      capacity and mortgage land, building or any other fixed
      Document of properties have to be given to the bank by a
      person. Bank takes all these documents as a security.
      A person has to give reference of two people who are
      depositor in the Vijay Bank as guarantors.

      Application form, other documents specified in the
application form, if applicant want mortgage than he need to
submit the whole file of that assets valuation report of that
assets. Proof of guarantor’s income.

                       TERM LOAN
      It is one of the major sources of debt finance for a long
term project. Term loans are generally repayable in more than a
year but less than 10 years. These loans are offered by all Indian
financial institutions. Term loans are generally secured through a
first mortgage or by way of deposit of title deeds of immovable
      Any business operator for the purpose of purchase
      necessary building, build a building or purchase new
      For the purpose of this loan is to invest in long term capital.
      Bank grants these loan 2 lacs to 10 lacs.
      Rate of interest charged on this loan is 11%.
      As a security a person has to mortgage any fixed assets
      whose reliable market value is enough in proportion of loan.

            PERSONAL LOAN
Any localize person can get this loan.
Bank grants personal loan for the purpose of purchase
fridge, T. V., washing machine or any other thing which can
be useful for home management.
Bank grants this type of loan Rs. 10,000 to maximum
50,000 or 90% of the quotation price of the product.
Bank charges rate of interest on this loan is 10.5%.
Applicants need to make such documents of purchase
products of purchased product in favor of the bank as a
A person has to give reference of two people who are
depositor in the Vijay Bank as guarantors.
Loan repayment period is 3 years to 5 years.

              LOAN AGAINST
                NSC, KVP, LIC.

Any person who should have share certificate on his own
name or any LIC policy holder.
Bank grants loan for any purpose.
Bank grants this type of loan 90% of the price of the NSC,
KVP, and LIC.
Bank charges rate of interest on this loan is 11%.
Applicant need to give share certificate or LIC policy.
Applicant has to repayment this loan within the due date of
that certificate or policy.
Application form, other documents specified in the
application form and if an applicant has to give Share
certificate or policy than need to sign in favor of the bank.


                     HOME LOAN
    Any localize person can get this loan.
    Bank grants personal loan for the purpose of purchase or to
    build home.
    Bank grants this type of loan up to 10, 00,000.
    Bank charges rate of interest on this loan is 12%.
    Applicants need to make such documents of purchased
    home in favor of the bank & bank takes all the documents
    as a security.
    A person has to give reference of two people who are
    depositor in the Raj Bank as guarantors.
    Loan repayment period is 3 years to 10 years.
    Application form, other documents specified in the
    application form and if an applicant want to mortgage any
    assets than he need to give whole file of that assets and
    title report through advocate approved by bank only proof of
    guarantor’s income.

              SAFE DEPOSIT VAULT
     Safe Deposit Vault (locker facility)

      At Vijay bank there is a locker department at main branch
and marketing yard branch Customer can keep all the ornaments,
important documents and many other papers and many things.
For every bank this facility is become just like primary function
and for providing best customer service Vijay bank is managing
this service too.

       Any shareholder or depositor can easily get their personal
locker of bank. There are mainly two types of lockers at Vijay
bank Small size locker and large size locker. And for to maintain
best services Vijay bank has different department and enough
staff for locker department. Different charges and deposits for
different locker are as under.

    Types of locker              Yearly rent       Deposit
          Small                     350             10000
          Large                     500             15000

    And for the management of this locker
department they are mainly follow these activities.

    They have locker attendance register in which the
    identification, address, full name and signature of locker
    holder are being maintained.
    Before any locker holder open his/her personal locker the
    staff member has been verifying the signature of that
    parson and than they allow him to open locker.
    They are also maintained time register in which the entry
    time and exist time a locker holder is being written. So this
    is very essential function for Vijay Bank.

H. R. M.
The Vijay
      Human resources in any organization, be it public private of
Co-Operative constitute perhaps the most vital assets of that
organization. An organization will fail if its human resources are
not competent to execute the work assigned to them. There is no
getting away from fact that human resources represent a
subsystem which dominates all other sub system to the

      Moreover, people are the only assets of an organization that
appreciate over a period of time while all the other assets
depreciate. The more an organization is investing in human
resources, the greater the return from the investment is likely to
be and it has been rightly pointed to in one of the books of inter
national Co-Operative alliance “The gains accruing out of
structural reforms can be best capitalized only it the personnel
maintained by the Co-Operative institution are in a position to
execute the policies effectively”. This implies the need and
necessity of proficient and capable human resources which is on
e of the primary aims of ht human resource management.

      According to national institute of personnel management of
india “Personnel management is that part of management
concerned with people at work and with their relationship within
the organization it seeks to bring together men and women who
make u an enterprise enabling each to make his own best
contribution to it’s success both as an individual as a working

      A sound foundation for selection of the right kind of human
resources is laid with the formulation of sound human resources
policies. According to William R.    Spiegel a human resources
policy can be defined as, “A body of principles and rules of
conduct that governs the enterprises in it’s relationship with it’s
employees. Thus the sound personnel policies set the tome for
proper administration of the personnel programmers, So as to
achieve the objective of the organization.

      As Vijay Bank is one of the leading Co-Operative bank in the
Co-Operative sector, though its performance is very good but than
also such policies for human resources they can not make by
their own. It has to follow the rules of policies given by the
government and RBI so in the matter of the personnel policies
Vijay Bank is restricted to some level. Than also the bank have
adopted a policy of recruiting only CA and MBA for their
management level for better management. So, by this way where
they get chance they are making or improving personnel policies
at Vijay Bank.

      The next important stage in the selection process is the
human resource planning. “Planning applied in the field of
personnel” it is the comprehensive and on going process. Broadly
conceive human resource planning as Thomas H Patten Jr. states,
“Human resource planning is process by which an organization
ensures that it has right no. and kinds of people in the right place
at the right time doing the things which they are economically
most useful.”

      In the Vijay bank there is a very educated staff as it is
concerned with the human resource planning recently they has
adopted policy of selection only C.A. & M.B.A. For their human
resource has as far as concerned with the human resource
planning. There is no long term planning but at a time or
requirement of staff they used to recruit staff either out side or
from with in the firm through transfer or promotion.

      Among the function of human resource manager, one man
function is to procure best people for their organization, means
search of prospective employees to suit the job recruitment. A
firm has to pass through well and good recruitment process for
having best human resource this recruitment can be possible
through many sources. A firm can recruit proper candidate mainly
through two success recruitment sources these are as under.

                 Recruitment Sources
Internal sources                    External sources
1) Transfer                         1) Advertisement
2) Promotion                        2) Education institutes
3) Relative & friends               3) Placement agencies
                                    4) Labours contractor

      In case of Vijay bank, the main source or recruitment is
daily news paper advertisement. They also recruit employees by
transfer and promotion. Generally as per the recruitment of the
job they give advertisement in newspaper and collect the pool of

      Managing people is not easy but it can be made easier if
you make sure that you have selected the right people in the first
place. And also it said that “selection of people is easy but
selection of right people is difficult task.” The selection procedure
is concerned with securing relevant information about an
applicant is secured. The objective of selection process is to
determine whether the applicant meets the qualification for a
specific job and to choose the applicant who is most likely to
perform well in that job.

      Thus an effective selection program is a non random
process because those selected had been choose on the basis of
the assumption that they are likely to be “better” employees then
those who have been rejected. Selection process or activities
typically follow a standard pattern being with an initial screening
of applicant, interview and concluding with final employment
decision. The selection procedure of Vijay bank is quit simple. The
stages of including in the selection process are as follows.

                 New paper advertisement

                   Receipt of application


                 Arrangement and interview


                Placement and confirmation

      After the selection of employee, management of the firm
has to pass through such process. So new employee can be
aware of the atmosphere of the firm and also can be familiar with
the other employee. This process is called orientation or
induction. In any organization this process performs very vital role
because this is the only process which can create better
environment in the organization and a new comer can be aware
about his working condition, his area of responsibility and
everything about organization. Proper orientation process can be
beneficial to both, a new comer as well as organization.

      Once an employee has been selected he should be placed
on a suitable job. Putting the right man at the right job is as
important as hiring the right person. Placement is a process of
assigning a specific job to each one of the selected candidates. It
involves assigning a specific rank of and responsibilities of an
individual. It implies matching requirement of a job with the
qualification of a candidate.

      In other words, “placement is the determination of the job
which an accepted candidate is to be assigned and his
assignment to the job.” As Vijay bank is very careful about this
process. And one thing is that, at the time of requirement only
they hire new employees. So hire it is specified that for which job
they are recruiting. After the final selection, they have been
marking the job of the new employee.

      Remuneration is the compensation an employee receives in
return   for    his   or   her   contribution   to   the   organization.
Remuneration occupies an important place in the life of an
employee. Standard of living of employee, states in the society,
motivation,     loyalty    and   productivity   depends     upon    the
remuneration. For the employee remuneration is significant
because of its contribution to the cost of production. For human
resource management, remuneration is the major function. The
HR specialist has a difficult task of fixing wages and wage
differentials acceptable to employee and their leaders. There are
mainly 3 three components of employee remuneration. These are
as follows…..
1) Wages and salary, 2) Incentives and 3) Non monitory benefits.
      As far as it is concerned with the Vijay bank, there is a
specific policy of employee remuneration formed by RBI and
govt., and it self also. So and also for the management of
employee remuneration there is a specific administration
department which cares of wages and salary and all things about

     WAGES & SALARY :: -

      Wages represent Hourly rates of pay and, salary refers to
the monthly rate of pay irrespective of the number of hours put by
an employee. Wages and salaries are subject to annual
increments they differ from employee to employee and depend
upon the nature of job seniority and merit.

     INCENTIVES ::-

      Incentives are also called ”payment by result” are paid in
addition to wages and salaries. Incentives depend upon
productivity, sales, profit or cost reduction efforts there are.
1)    Individual incentive schemes and
2)    Group incentive program

      Individual incentive are applicable to specific employee are
applicable to specific employee performance. Where a given task
demands group effort for completion, incentives are paid to the
group as a whole. The amount is later divides among incentives
refer to variable rewards granted to the individual in terms of
changes in specific results in organizational setting besides
wages and salaries, employees are paid incentives depending
upon their performance. Incentives payment is quite substantial
and is paid as regularly as wages and salaries. The primary
advantage of incentives is the inducement and motivation of
workers for higher efficiency and grater output. It option schemes
and the like perquisites are offered to retain competent


      These include challenging job responsibilities. Recognition
of merit, growth prospects, competent supervision, comfortable
working condition and job sharing.

      As far as Vijay Bank is concerned that is specified
department who cares about employee remuneration. Apart from
salaries they are also provides bonus (one month salary) also
provides provident fund scheme and gratuity and also VRS
scheme, group insurance too.

      Training is the process of increasing the knowledge and
skills for doing a particular job. It is an organized procedure by
which people learn knowledge and skills for a definite purpose.
The purpose of training is basically to bridge the gap between job
requirement and present competence of an employee. Training is
aimed at improving the behavior and performance of a person. It
is a never ending or continuous process. In any organization their
should be proper training program to improve employee
resources, as well as organization development. Training involves
helping an individual learn how to perform his present job
       On the other hand development is long term education
process utilizing a systematic and organized procedure by which
managerial        personnel   learn   conceptual   and   the   critical
knowledge for general purpose. So in the any organization the
importance of the training and development is very vital, nobody
can ignore it. As far as it is a continuous process there. Vijay bank
is working with advanced technologies. At every step better
training and development is required.
       At present every employees of the firm are getting trained
by its own EDP department n advanced computer technologies.
They are also organizing internal seminar for improvement of the
firm and also they are sending their employees outside like
Ahemdabad, and Mumbai for the better development. As it is
banking firm there is continuous training and development
program organized by other banking firm and association for
improvement of whole banking sector in India.

      Mobility and flexibility in the workforce are necessary to
cope with the changing requirement of an organization. Job
changes provide necessary flexibility, employees move from one
job to another one through transfer, promotion. So the
importance of employee movement in the organization in very

     Promotion:: -
      Promotion refers to advancement of an employee to a
higher post carrying grater responsibilities higher status and
better salary. It is the upward movement of an employee in the
organization’s hierarchy to another job commanding grated
authority higher status and better working condition when an
employees is assigned a higher level job with more pay and
powers he is said the promoted promotion may be temporary or
permanent depending upon the needs of the organization so this
is just like tool which can be useful in two way one way it is a
motivation second way it becomes a source of recruitment from
with in a organization so the promotion in the organization is who
is present as other activities in case of the Vijay bank as it is Co-
Operative sector they have to follow promotion policy of
government is merit cum seniority in case of promotion they are
not independent too.

     Transfer::-
      A transfer refers to a horizontal or literal movement of an
employee from on a job to another in the same or organization
with out any significant change in status any pay. It has defined
as “ A literal shift causing movement of individual from one
position to another. Usually without involving any marked change
in duties as responsibility will needed of compensation. The need
for transfer may grid due to several reason transfer mane of
which the following objective.
      To meet organizational need
      To satisfy employee needs
      To better utilize employees
      To make the employee more versatile
      To adjust the work force
      To provide relief
      To punish employees.

      The transfer is beneficial in many ways the benefits of the
transfer is as under
      Increase in productivity and effective need of the
      Greater job satisfaction to employees
      Stabilize fluctuation work needs
      Improve employee skills
      Remedy for faulty placemen
      Develop employees for further promotions
      Avoid monotony and boredom.
      So, the transfer is also important as far as concerned with
Raj bank there is no specific transfer policy but according to
requirement and for convenience of the employee they use to
make transfer.

Vijay Bank

      Today, marketing is spread in every field of like hospitals,
services, goods even politics and many more. In banking sector
too the importance of marketing also can not measurable, still it
has not developed in public sector it is only limited to foreign
banks and private sector. The reason for success of foreign in
India is only best marketing efforts. Today in banking sector there
is a cutthroat competition among public sector, private sector and
foreign bank.

      Marketing is a human activity directs at satisfying the needs
and wants of customers, there are five stages of bank marketing
firstly marketing g is advertising, sales promotion and publicity,
secondly marketing is smiling and Co-friendly atmosphere, thirdly
marketing is innovation like cheques with drawls on fixed
deposits, fourthly marketing is positioning. When all banks
advertise and innovate, they look alike so, they should try to
position themselves differently, even through symbols, logos or
aggressive advertising so that the customer can distinguee
between one bank and another and finally marketing is analyzing,
planning and control.

      At Vijay bank though there is no specific marketing
department. for marketing of different services but providing vest
services to their customers and getting good customer
satisfaction, and doing such efforts of marketing like promotion
activities they are in directly getting benefits of the marketing.
Today they are also planning for such continuous marketing
efforts. And with in the few years they will have aggressive
marketing department.

      Promotion tools are also essential in the bank’s marketing
mix. We need personal selling in customer contact, development,
personal service. And so on. Similarly, bank marketing program
need advertising as mass communication tool. The bank is a
sponsor. It sends a message to prospective buyers (the audience)
by means of a medium (The carrier of the message). An
advertisement in bank marketing is a promise of satisfaction to
prospects who buy or use the service offered by the bank or who
are willing to patronize the bank. Banks are using all media of
advertisement such as newspaper, radio television, magazines
etc., for advertising their services and for getting the business.
Bank marketing also uses sales promotion devices such as point
of purchase materials, advertising specialties (ball pens,
calendars, diaries, notes pads etc.) brochures and booklets
describing bank services, etc. a bank has also to use public
relation as mode of promotion to build up and maintain its bright
image in the community.
      As far as it is concerned with promotion activity than Vijay
bank is not doing any personal selling but bank is believe in very
strong goodwill and also best customer satisfaction they are using
advertising they are giving their advertisement in news paper like
Sandesh, Gujarat samachar etc. and for publicity they were
organised international kite festival at race course before 3 years.

      Good marketing decisions are not made in a vacuum.
Hence, even in bank marketing. We need marketing research and
information to enable bank executive to make sound decisions.
The increase in the use of marketing research in bank marketing
is due to two forces:

      competition pressures to be right, and Customer –
orientation in marketing planning and program. Banks are now
establishing a separate marketing organization. Conduction
marketing research, setting up sales training program and
adopting sales promotion divides promotion devices to attach
customer we have special bank advertisement through radio. T.V.
and newspapers. Marketing research may be defines as “The
scientific and controlled process of gathering of none routing,
marketing information, helping management to solve marketing

      As far as it concerned with the marketing research process
at Vijay bank. They have been continuously doing such research
from beginning. But one positive point for marketing research is
that they not doing any big expenses for marketing research and
for executives. Bank’s staff member themselves goes to market
and gathers requited information or data. Such information or
data they are collection from direct RBI or other banks. So, by this
way they are getting benefits by using marketing research

Vijay Bank

      Finance is the fuel of administration. Without adequate
financing no business enterprise can raise its potentials for
growth and success. And it would be worthwhile to recall what
“Henry Ford” once remarked “Money is an arm or leg. You either
use it or lose it.” This statement though apparently simple and
quite meaningful, it brings home the significance of money or
finance. In the modern money oriented economy finance is one of
the basic foundations of all kind of economic activities.

      Finance management is indeed the key to successful
business operations. Without proper administration and effective
utilization of finance, no business enterprise can utilize it’s
potentials for growth and expansion. Organization and control of
these function is important for all types of business units.
Specially in public undertaking massive investment has so far
been much less productive, it is necessary to organize the finance
functioning such a manner that should help the business in
achieving it’s basic objective with minimum cost.

      According    to   Hoagland     “Financial   management    is
concerned mainly with such matter as how of business
corporation raises it’s finance and how it make use of that.”

      Planning is very necessary for the smooth running of the
business can not be carried on without planning. Planning means
deciding in advance what is to be done for each functional area of
management. The planning of each area should link to the
objectives of the organization. Financial planning means deciding
in advance the financial activities to be carried on to organization.
So, the basic purpose of financial planning is to make sure that
adequate funds are raised at minimum cost and they are used
widely. A proper planning of the business on one hand and to
allow a fair return to their contribution on the other.

Thus financial planning includes the following…

1)    Determination of financial objectives.
2)    Formation of financial policy.
3)    Development of financial procedure.

      In Vijay Bank, the financial planning has been done through
proper management in various areas like liquidity planning,
investment planning, profit planning, cash management etc.

                         VIJAY BANK
       Capital structure decision is yet another important area
under financial management. Capital structure refers to the mix
or    proportion    of   firm’s   permanent    long   term     financing
represented by debt preference must ensure the maximization of
wealth of shareholders so even the capital structure decision
must be taken in the light of wealth maximization objectives. That
particular mix of debt and equity which maximizes the value of
the firm is known as optimum capital          structure   in     simple
word capital structure refers to the composition of capital.

Capital structure = Long term debts + Preference share
                           capital + Equity share capital + Reserves.

 1.                 Capital              Rs. 690,692,625.95
 2.          Reserves & surplus          Rs. 706,814,95.80
 3.                 Deposit              Rs. 575,373,371.96
 4.                Borrowings                      Nil
 5.      Other liabilities & provision Rs. 77,34,780.66

      Capital plays an important role in any business at the time
of corporation of the business, it is the first problem before
promotes to decide how much capital is to be required and in
what form. It is not an easy task. A financial plan is to be
prepared form the purpose of explaining the abort term and long
term needs of finance to the company. Sever consideration would
be kept in mind such as cost of capital fair return to the
contributors of capita risk involved flexibility etc. while taking
decision in this regard it required proper capitalization.

      Proper capitalization reveres to the total amount of capital
required in the long run to run the business smoothly
capitalization uses in its quantities aspect and reveres to the
amount at which a company’s business can be valued most of the
traditional authors define the terms in this sense the sum total of
the par value of all share. After definition of capitalization are
being reproduces below in order to understand the term well.

      E.F. Lincoin, The amount of capital at any time should not
excepted none should it be less than the amount required in both
situation it there firm will be loser. These conditions are called
under capitalization and for capitalization. In case the amount is
hiring than it is required the company his have to pay more
interest on the surplus capital are they rescuing the proper of the
concern of the total capitalize not sufficient to discharge the
function of the business the concern with not be in a position of
even reasonable profits due to lack of funds it is there fore,
necessary to have proper capitalization.

              CASH MANAGEMENT
      Cash    is     the   medium   of   exchange    which    allows
management to carry on the various activities of the business on
day to day basis. And management of cash is one of the most
important answers of over all working capital management due to
the fare there cash is the most liquid type of current assets. As
such it is the responsibility of the finance function to see that the
various functional areas of the business have sufficient cash were
ever they require the same at the same time if has also it be
ensured that funds are not blocked in the form of idle cash as the
cash remaining idle also involves cost in the form of interest cost
and opportunity cost as such the management of cash have to
kind a mean between these two extremes of shortage of cash as
well as idle cash.

      The basic objectives of cash management of are to reduce
the operating cash balance requirement to maintain possible
extent without affecting the routine transaction. For the
management of cash flow statement is the most important tool
cash low statement provided information about the cash ratio
and payment of a firm for again period. It provides important
information that compliments the profit and loss account and
balance sheet.


      The liberalization of the financial sector is the key for the
over all liberalization process. Gradually, the structure of the
financial market itself has begun to change, in the changing
Financial Market; Vijay commercial Co-Operative Bank Ltd. has
market the progressive growth and profitability both the financial
year 2005-2006 which is reflected in the following Financing
since inception:

                                         (Rs. In Lacs)

      Particulars           31-3-05         31-03-06

      Investments           Rs.2026          Rs.2074

         Deposit            Rs.4826          Rs. 5753

        Advances            Rs.3220          Rs.3637


    ISO 9001:2000 Certified one and only co-operatives bank
    whose all branches have this certificate.
    Professional management & Co-Operate team spirit.
    Strong Brand equity.
    Fully computerization and Automation.
    Respectable ranking and position in Gujarat’s top Co-
    Operative banks.
    Profitability and sound liquidity.
    Branches in all most developed parts of saurashtra.

   WEAKNESS ::-

    Lack of marketing expertise.
    Lack of modern management concepts.
    Sometimes communication gap is found which signs lack of
    Lack of scheduled status which may affect expansion of
    their business.
    Lower volume of advances due to higher rate or interest.
    Strong   need     for   a    more    disciplines,   smooth   and
    Environment for working and customer service.


    General insurance business at higher level.
    No. of branches can be increased in all overall state.
    After getting scheduled status we may apply multi state
    bank to expand their business.
    Introduction of various retail services.
    Tax consultancy can be provided by using the skills of the
    professional personnel and experienced seniors.


    Confidence crises in the co-operative banking sector can
    disturb the bank’s progress.
    Changes in govt. rules and regulation.
    Cut throat competition and entry of new foreign bank and
    its sound financial structure.

Vijay Bank

              VISION - 2010
To maintain excellence in operation & management by
bringing I transparency & integrity.
To emerge as symbol of public trust & confidence by
creating a positive image.
To ensure speedy & satisfactory customer services through
continuous product innovation & aggressive, marketing
To   adopt    policy   for   technological    up   gradation&
advancement to boost up total computerization & inter
branch connectivity for all the branches.
To develop & motivate human resources there by cultivating
processional culture in the banking operations.
To strive for continuous growth & profitability through
branch expansion & modernization.
To introduce ATM centers & various “plastic products” for
better customer services.
To maintain the asset quality at the optimum level by
continuous efforts for credit risk management.
To provide multi dimensional services to customers by
incorporating various modern service areas like insurance,
bill collection and providing one door service to clients.
To explore more non-fund based business like latter of
credit, bank guarantee, custodial services to increase
bank’s non interest income.

Vijay Bank

      As improvement is a constant requirement for every one
and if we try to learn from a little things also. Than every minute
we will improve ourselves. And for constant improvement in
organization management should keep their eye on every
concern, during my visit at bank I have tried to cover everything
and according to my knowledge I am trying to give suggestion to
the Vijay bank and I am sure that it surely will be helpful in
progress of the bank.

      First and foremost suggestion for Vijay bank is that, yet they
are not using such marketing tools and ATM in the area of
cutthroat competition in banking sector. Each bank should try for
better and different marketing. Vijay bank should make one
group of executive, who can help to the management and can
provide different services like collection from home only and they
should use such slogan for innovative products like “only one call
can make your life better.” This slogan can be sued for assets
product. So by using not only simple advertisement but also
strategic marketing tool bank can improve a lot in the market.

      And last but not least that is there is need to improve web
site of Vijay bank during my report work I have found very poor
contents in the web site of Vijay bank as Bank have their own EDP
department with high educated staff. And by creating attractive
web site bank surely will be able to create good image. And one
thing is also there should professionalism in management at
every level.

      After having all the required information for preparing my
report, I have tried to analyze each and every function of the Raj
Bank. During my report all the staff member of the Vijay bank had
well co-operate me. And also I have found that the, there is a very
good level of commitment in all the staff members. During my
report I have tried to cover each functional area of the bank and
after having clear idea about everything in the bank, I can
conclude that the Vijay bank is one of the leading firm in the
bank, I can conclude that the Vijay bank is one of the leading firm
in the co-operative sector, and with advanced technologies and
educated staff to trying to positioning in the banking market. But
than also due to such weaknesses of co-operative sector Raj bank
is also suffering from such limits.

      So, at last we can conclude that the Vijay bank is being
leader in the market and due to great leadership of Mr. pravinbhai
dholkia (chair man) bank is getting great goodwill in the market
and also great goodwill of the other director helps director helps
to the bank in creating good image in the field of the bank.

      For, better future a great success my all good wishes always
with the Vijay bank. I wish them for better achievement.


   Books ::-

        Human      Resource     Management      &    Personnel
        By :- K. Aswatthappa
        Publication :- Tata Mc-Graw Hill

        Marketing Management
        By :- S. A. Sherlekar
        Publication :- Himalaya Publication House

        Finance Management
        By :- B. S. Shah
        Publication :- S. B. Shah on Behalf of B. S. Shah

   31st Annual Report Of The Vijay Bank (2005-2006)


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