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CHAPTER-III PROFILE OF THE BANKS 3.1 INTRODUCTION: The co-operative movement in India has been a growth of a little over half a century and is largely dependent for this origin. Even before 1904, the Government was not unaware of the difficulties which the farmers were facing in borrowings funds and was anxious to ease the situation. Co-operative banks in India are registered under the co-operative societies act. The co-operative bank is also regulated by the RBI. They are governed by the Banking Regulation Act 1949 and Banking Laws Act. 1965. Co-operative banks have been playing a critical role in spreading financial services to Indian remote areas where commercial banks not have reach. They have however being business due to increasing competition from commercial banks with a view to giving more importance to the co-operative banking sector. NABARD is currently implementing core banking solution (CBS) at these banks which will help their customers transact business at any of their branches so far 140 banks have joined NABARDS CBS platform. Co-operative organizations are playing a major role in economic progress of weather sections of the society now a day’s co-operation has been applied in a wide range of activities such as production, distribution, supply, marketing, housing, banking, and insurance etc. There are two different urban co-operative banks which are included in samples in the present study which are Palus Sahakari Bank Ltd. Palus and Shri. Satyavijay Sahakari Bank Ltd. Kundal. Here after refer to PSB Ltd. and SSB Ltd. respectively. Both the banks belong to same category of urban co operative banking. These banks however are different as to their age and size of the banks. The selected two banks are from Palus Taluka but operational areas of these two banks are different. 39 3.2 PALUS SAHAJKARI BANK LTD. PALUS: Palus is a main for the Palus Taluka and also Taluka head. Palus is 29.2 k.m. distance from its district main city Sangli. Palus Taluka is situated in North- West part of Sangli District. Palus Taluka is industrially developed. In this Taluka main occupation of the people is agriculture as well as other trading activities. In India first co-operative act was passed in 1904. Then changes were made in co-operative act in the year 1912, 1919 and 1925. In 1960 Maharashtra Co operative Society Act was passed. In 1966 the prominent social workers decided to establish a co-operative bank. The social workers such as Shri. Dnyandev Vithoba Patil, Shri. Rajaram Patil, Shri. Govind Mali, Shri. Arun Jadhav, Shri. Shivaji Jadhav and other made up their minds to set co-operative bank. All leaders take hands efforts to get permission. Finally, it was sanctioned with the help of Dr. Patangrao Kadam, Shri. Prakash Bapu Patil, Shri. Dinkar Aaba Patil and Shri. R. R. Patil. 3.2.1 Registration and Establishment of PSB Ltd.: The Palus Sahakari Bank Ltd. Palus is registered under Maharashtra Co- Operative society Act 1960. But promoter faced many problems in collecting shares, which is collected with the hard efforts of leaders. Thus a new bank in this Taluka took birth in 24th February, 1966 as Palus Sahakari Bank Ltd. Palus. This bank was registered in the year 1966 and bank licensees were given by the R. B. I. UBD/MH/733 - p/ Date 10-12-1986. The operational area of Palus Sahakari Bank in entire Maharashtra State. General Information Name of the bank Palus Sahakari Bank Ltd. Palus 555- A, Main Road, Palus Tal- Palus, Head office Address Dist- Sangli- 416-310. Date of Registration 24-02-1966 Date of No. of R. B. I. License UBD/MH/733-P/Date-10-12-1986 Area of Operation Entire Maharashtra State Nature of Constitution Co-Operative Sector No. of Branches 15 Total Staff 139 (Sources: Annual Reports of Palus Sahakari Bank Ltd. Palus from year 2005-06 to 2011-12) 40 3.2.2 Board of Director of PSB Ltd.: The bank has in first Administrative Board of Director headed by Shri. D. V. Patii during the period of 1966 - 1970 years. Present Chairman of this bank is Shri. Vaibhavrao Vasantrao Pudale. In Board of Directors of Palus Sahakari Bank there are 21 members front different status. In year 2011-12 the members of Board of Directors are as follows: Sr. No Name Designation 1 Shri. Vaibhavrao Vasantrao Pudale Chairman 2 Shri. Shamarao Atamaram Dake Vice- Chairman 3 Shri. Vishnu Bapurao Pesal Director 4 Shri. Yashwantrao Pandurang Pudale Director 5 Shri. Vishwas Aanandrao Shinde Director 6 Shri. Subarao Ramchandra Patii Director 7 Shri. Dilip Sadashiv Sathe Director 8 Shri. Prakash Sadashiv Sathe Director 9 Shri. Prakash Namdev Patii Director 10 Shri. Ashok Eknath Sawant Director 11 Shri. Vasantrao Aanandrao Mane Director 12 Shri. Sambaji Babu Mali Director 13 Shri. Martand Sadashiv Sadamate Director 14 Shri. Kumar Tukaram Gaykwad Director 15 Smt. Shantabai Adhikarao Gondii Director 16 Sint. Manisha Adhikaroo Gondii Director 17 Shri. Jaysingh Sitaram Patii Director 18 Shri. Ramesh Narayan Rajmane Director 19 Shri. Shivaji Bhimrao Jadhav Director 20 Shri. Arun Pandurang Chavan Director 21 Shri. Chandrakant Anna Gondii Director 22 Shri. Jayantilal Shantilal Shaha Manager (Sources: Annual Reports of Palus Sahakari Bank Lid. Palus from year 2005-06 to 2011-12) 3.2.3 Objectives of the Bank: 1) The encourage thrift, self help and co-operation among the members. 41 16841 2) To accepts various types of deposits from the members as well as from non members. 3) To given a loan and advance a money with or without security to the members and others. 4) To arrange for the safe custody of valuables and documents of members and constitutes. 5) To provide finance to agriculture and small scale industries. 6) To draw make accept discount, buy sell, collect and deal in Bill of Exchange, Hundies, Promissory Notes, Drafts, Railway Receipts, Scrip and other security weather transferable or not. 7) To open branches with the permission of registering authority and the Reserve Bank of India within the operation of the bank. So as to provide banking services to the public. 8) To act as a agent for the joint purchase of domestic and other requirements of members. 3.2.4 Location of the Bank: The main think of this bank is has been registered in urban-semi urban as well as developed city like Sangli, Kolhapur etc. The head office of the bank is located in Palus town and it has opened its branches at the following places: Sr. No Branch Name Taluka District 1 Head Office Palus Palus Sangli 2 Bambawade Palus Sangli 3 Kirloskarwadi Palus Sangli 4 Tasgaon Tasgaon Sangli 5 Bilavadi Tasgaon Sangli 6 Islampur Walwa Sangli 7 Mahavirnagar Sangli Miraj Sangli 8 Yelawi Tasgaon Sangli 9 Kundal Palus Sangli 10 Vishrambag Sangli Miraj Sangli 11 Laximipuri Kolhapur Karvir Kolhapur 12 Kokrud Shirala Sangli 13 Malkapur Shahuwadi Kolhapur 14 Aarag Tasgoan Sangli (Sources: Annual Reports of Palus Sahakari Bank Ltd. Palus from year 2005-06 to 2011-12) 42 43 3.2.5 Organization Structure of the Bank: The Palus Sahakari Bank Ltd. has well organization structure. The shareholders are the owner of the bank but total operational authority is to the Board of Directors. In Board of Directors Committee Chairman is the main person, who handles the whole Board of Directors. There is one General Manager in the bank under him two Assistant General Manager who handles loan and advances and sales and agriculture department. Another Assistant General Manager handle Account, Staff and Inspection Security Department in organizational chart lastly there is checker, cashier and clerk. The organization chart of Palus Sahakari Bank is as follows: Shareholders i Board of Directors Chairman1 i General Manager I 1 Assistant General Manager Assistant General Manager 1 Loans and Advance Manager Account Manager I i Recovery Sales and Agriculture Manager Inspection Security Manager I Staff Manager i Checker (Passing Officer) 1 Cashier 1 Clerk 44 3.2.6 Performance of the Bank: 3.2.6.1 Members of the Bank: The Shareholders of the bank are the owners of the bank. The shareholders of the bank are divided in two types i.e. Regular and Nominal Members. The total shareholders of Palus Sahakari Bank for last 7 years are as follows: Table No. 3.1 Members of the Bank for PSB Ltd. Year Regular Member Nominal Member Total Member 2005-06 10,415 4,465 14,880 2006-07 10,528 4,370 14,898 2007-08 13,.091 2,610 15,701 2008-09 13,845 2,705 16,550 2009-10 14,038 2,680 16,718 2010-11 14,412 2,710 17,122 2011-12 14,893 2,817 17,710 (Source - Annual report of Palus Sahakari Bank Ltd. Palus from year 2005-06 to 2011-12] 3.2.6.2 Share Capital of the Bank: The Authorized Share Capital of Palus Sahakari Bank is Rs. 10 Cr. in 2011- 12. This is divided in 40 lakh Equity Share of Rs. 25 each. Share capital is the own capital of the bank and it is helped in the lifetime of the bank. The trend of share capital in the bank is as follows: Table No. 3.2 Share Capital of Bank for PSB Ltd. for PSB Ltd. Year Authorized Capital Paid Up Capital 2005-06 5,00,00,000 3,25,04,675 2006-07 5,00,00,000 3,42,89,550 2007-08 5,00,00,000 2,11,11,075 2008-09 5,00,00,000 4,25,04,250 2009-10 7,00,00,000 4,66,29,550 2010-11 7,00,00,000 5,50,48,800 2011-12 10,00,00,000 6,06,26,850 (Source - Annual report of Palus Sahakari Bank Ltd.