FINANCING AGRICULTURE SECTOR IN PLD BANK AT KOLAR

dÚREVIEW OF LITERATURE

To understand the measures taken for managing the agricultural loan in

the bank this study was conducted . It was first important to understand
the problem addressed in the study. Hence with an intention to gather all
important bits of information through secondary data, the literature review
was carried out . As its very essential entity in banks, which needs to be
carefully assessed.

The report , projects and books referred to also gave a lot of

insight into the study.

The purpose of this dissertation was to find out the causes and measures
taken by the company to manage the agricultural loans.

CHAPTER- 3
RESEARCH DESING

TITLE OF THE STUDY

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THE ROLE OF PLD BANK FINANCING AGRICULTURE SECTOR AT

KOLAR

STATEMENT OF THE PROBLEM

Financing agriculture sector in PLD bank is the main intention of pursing

information and analyzing statistical data of loan lending’s in PLD bank
related to when the bank provide loan, how much they provide and why
they provide and farmers opinion about PLD services.

OBJECTIVES OF THE STUDY

1. To collect the data regarding the type of loan provided by PLD

bank to the agriculture sector.
2. To gain the theoretical and practical exposure from selected
domain.
3. To study on role of PLD bank to the agricultural development .
4. To collect the data regarding purpose of loan lending and any
subsidies they are given to farmers.
5. To collect the opinions and expectation from the customers
regarding co-operative bank assistance.
6. To know the role of government in agriculture landing .
7. To study the financial performance of PLD bank .
8. To understand the loan portfolio of the bank .
9. To understand the perception of the farmers about the agriculture loan .
10. To recognize the treatment of NPA .

OPERATIONAL DEFINITION OF THE CONCEPTS

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 BANKER

Middlemen between savers and acts for some consideration. It includes

lending of loans and advances business too.

 CUSTOMER

Beneficiaries who availed bank loans at PLD bank , Kolar town are
customer foe the purpose of this project report.

 LOANS

It is a document in writing and acknowledgement of debt, in which

banker pays lump sum amount to customer in return has to repay the
same along with at different interest rate time to time.

SCOPE OF THE STUDY

This study covers the all the aspects regarding financial efficiency. The
study conducted in PLD bank and I will concentrate only on the
development of particular district. It is a regional bank, hence the studyon
financing agriculture sector , it covers.

1. Short term agricultural loan,

2. Medium term agricultural loan

3. Long term agricultural loan

1. Short-Term agriculture loan :

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The "short-term agriculture loans" are generally advanced for meeting

annual recurring purchases such as, seed, feed, fertilizers, hired labour
expenses, pesticides, weedicides and hired machinery charges which are
termed as seasonal loans/crop loans/production loans. These are expected
to be repaid after the harvest. It is expected that the loan plus interest
would be repaid from the income received through the enterprise in
which it was invested. The time limit to repay such loans is a year.

2 . Medium-Term agriculture loan (from 15 months up to 5 years):

"Medium-term agriculture loans" are advanced for comparatively longer
lived assets such as machinery, diesel engine, wells, irrigation structure,
threshers, shelters, crushers, draught and milch animals, dairy/poultry
sheds, etc., where the returns accruing from increase in farm assets is
spread over more than one production period. The usual repayment
period for such type of loan is from fifteen months to five years.

3 . Long-Term agriculture loan (above 5 Years): Loans repayable over a

longer period (i.e. above 5 years) are classified as long-term loans. "Long-
term loans" are related to the long life assets such as heavy machinery,
land and its reclamation, errection of farm buildings, construction of
permanent-drainage or irrigation system, etc. which require large sums of
money for initial investment. The benefits generated through such assets
are spread over the entire life of the asset. The normal repayment period
for such loans ranges from five to fifteen or even upto 20 years.

SAMPLING

Collection of data is made from bank and personnel interview.

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METHODOLOGY

The research methodology means a set of techniques and tools for a

collection of the data.

The word methodology has “the compel frame work for with in which
the data is collected is called a methodology.”

The researcher has adopted analytical, descriptive and empirical study

for this report reliance has been placed on books , journals, newspaper,
and online databases and on the writers in the discipline of
competition law.

METHODOLOGY ADOPTED IN THIS RESEARCH

 Descriptive research
 Analytical research

 Descriptive research

The descriptive research means the survey of fact findings

through from respondents and collects the facts and
information. The data will be control in the hands of
respondents only not in the hands of researcher is called
descriptive.

 Analytical research

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The data is already in the hands of researcher at the time

researcher analysis the past information with the present data
is called analytical research.

SOURCES OF DATA COLLECTION

 Primary data
 Secondary data

The primary data refers to the data that is collected a fresh and recorded
for the first time.

 Interviews
 Observations

Secondary data is already existing data it’s already collected someone is

called secondary data.

This will be collecting through from,

 Books
 Internet
 Company annual report
 Magazines andnews papers.

PLAN OF ANALYSIS

 Pie charts
 Trend lines
 Bar charts
 His to graphs
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REFERENCE PERIOD

The reference period of this study was 6 weeks.

LIMITATIONS OF THE STUDY

1] Lack of information due to work pressure in bank .

2] Lack of appropriate data regarding survey due to financial year end.

3] Lack of sufficient statistical data regarding agriculture.

4] Many bank they won’t provide financial statement to externals.

5] Insufficient and improper information from formers.

 Central co-operative banks

 State co-operative banks
 Land development banks
 Urban co-operative banks

CHAPTER SCHEME

Chapter :1

Introduction

In this chapter , we look in to the general back ground of the study .

Introduction to finance and introduction to financing agriculture sector is
includeed in this chapter.

Chapter : 2

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Review of literature

Chapter : 3

Research design

In this , the methodology followed for the study , the scope, need and
importance , objectives , sources and methods of data collection used, tools
and analysis of data used and limitations of the study of this project is
included.

Chapter : 4

Company profile

In this chapter , details about the PLD bank, it’s origin ,history, mission, and
vision various financial services, it future plans is included.

Chapter : 5

Data analysis and interpretationIt includes , analyzing the collected data

by using charts and interpretation the analyzed data those are includes.

Chapter : 6

Findings: Meaning what has been found through this project.

Suggestion: It includes for the company to improve if any

Conclusions: The overall summary about the project.

Bibliography

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Annexure

CHAPTER -3

COMPANY PROFILE

HISTORY OF THE PLD BANK IN INDIA

For the co-operative banks in India, co-operatives are organized groups of

people and jointly managed and democratically controlled enterprises.

They exist to serve their numbers and depositors and produce better benefits and
services for them. Professionalism in cooperative banks reflects the co-existence
of high level of skills and standards in performing duties net trusted to an
individual co-operative bank needs current and future development in
information technology, it is INDEED necessary for co-operative banks to
devote adequate attention for maximizing their returns on every unit of
resources through effective services, co-operative banks have completed 100
years of existence in india ,they play a very important role in financial system.
The co-operative banks in india form on integral part of money market.

TYPES OF CO-OPERATIVE BANKS

 Primary co-operative credit society

 Central co-operative banks
 State co-operative banks
 Land development banks
 Urban co-operative banks

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INSPECTION

The banks was established on 27/1/1935. Basically it was started as service co-
operative society for few villages only and later on it was converted as V.S.S.N
which included 8-10 villages then it got expanded as sericulture cum farmer co-
operative society by which it started lending to both seri culturists and farmers.
In later days according to Karnataka…

Finally all this funds will be reaching to the farmers with the help of primary
agricultural co-operative society through P.L.D BANK.

BRANCHES:

Primary co-operative and agricultural and rural development bank ltd, has 12
branches, they are:

 Bangarpet
 Bagepalli
 Chikkabappapur
 Chintamani
 Gowribidanur
 Gudibande
 K.g.f
 Kolar
 Mulbagal
 Malur
 Srinivaspur
 Sidlagatta

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TYPE OF INDUSTRY:

P.L.D bank is a service oriented institution which mainly focuses on extending

economic strength to farmers, who are considered as bank bone of national.

NATURE OF INDUSTRY

Nature of P.L.D bank is secondary institution as it will depend mostly on the

man power in order carry out different activities in the banking process.

MISSION STATEMENT:

As it is a bank it is known to all that the main mission of it will e obviously

accepting the deposits and lending to it’s customers, as and when the depositors
demand for their money giving back to them.

VISSION:

The current vision of the bank is to increase the deposits, issue the crop loans,
providing cash credit loans, increasing the present share investment, provide
medium term loans, and the most important may be collecting back the loan
amounts given to the customers.

GOALS AND OBJECTIVES:

The P.L.D bank number of objectives, some of them are:

 Undertaking common banking activity.

 Lending money and their by extending economic support to farmers.
 Giving loans to depositors by keeping their deposits as security.

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 Bank will provide safe deposit value and lockers to both its members and
other of rent.
 Establishing branches of the bank, extention counter and other offices and
offices and undertaking all banking activities with the permission of
regulators of the bank.
 Encouraging and taking steps to provide loans to the self help groups
which are the limits of bank.
 Creating funds in order to facilitate or help their staff members and their
dependents.
 To undertake and execute rent.
 Undertaking international exchange business with the permission of
Indian reserve bank.
 Training facilitates o its employees, member co-operative providing
society about banking and managing activities.
 To buy fixed assets for the own use of the bank with the
 Permission of the department when ever needed.

SPECIAL PROVISION TAKEN BY THE PLD BANK FOR IMPROVING

THE AGRICULTURE AND OTHER SECTOR.

1. An temporary employees working in the organization more than 10 years that

time government will take considering and giving appointment orders and
holding permanent basis of education and experience.

2. Giving special assistance to non agricultural operations without interest and

borrower should pay the loan principal amount lump sum in at a time.

3. For the security and future reference purpose conversion of books of accounts
into computerization.

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4. An employee contributing his service more than 10 years in a particular

bank at the time he has to get all the social security benefits.

5. Increasing the special scheme relating to increasing the employee salaries for
protecting their interests.

6. Granting funds for providing pension to the retired employees as soon as

possible.

7. Increasing the bank capital reserve ratio more than compare to last year for
the purpose of avoiding bankruptcy.

8. Special importance given to the tribal area peoples and below poverty line
groups for strengthening their lives.

9. An borrower repaying their loan before the due date at the time he has to get
other types of loans from bank with confidence.

10. Special provision for trade and commerce development.

WORK FORCE STRENGTH:

All the activities of primary co-operative and agricultural and rural development
bank ltd. Are carried out by totally 13 members, who include 1 manager, 1 first
divisional assistant, 1 second divisional assistants, 1 drivers and 1 attainders
1typists 1 system operator to execute various activities. Man power is
considered to be important power in the bank because each and every activity in
the bank has to be carried out by men itself and without their efforts none of the
operations can be done.

WORK FORCE CHART

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MANAGER

FIRST DEVISIONAL
ASSISTANCE

SECOND DEVISIONAL ASSISTENCE

SUB STAFF

SERVICE REPORT:

A. AGRICULTURAL LOANS:

Under this, bank will provide loans for agricultural purposes, such as long term,
medium terms and short term loans under different schemes. All these loans are
given to the farmers only after making a study on various like the area of land
that the farmer has, the ability of the farmer to repay the loan etc…..

MEDIUM TERM LOAN FOR EXAMPLE:

 COWS
 GRAPES

SOURCES OF FUNDS:

 Shares , entrance fee, share price.

 Deposits.

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 PCARDB bank is obtaining funds from government of Karnataka,

government of India according to the low of India.
 Gifts, provident and donations.
 Interest on the deposits.
 Commission
 Yearly subscription.

ORGANISATIONAL STRUCTURE :

Special officer

Managing director

General Manager

Manager

Senior assistant

Junior assistant

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B.NON-AGRICULTURAL LOANS:

These loans include different forms of schems, they are:

 Loans on gold ornaments:

These loans are provided through all branches. This is a package of
program that they have undertaken to provide loans to needy people at
comparatively at very low percentage.

 Loans for self helping groups:

In the year 2009-10 bank is providing loans to these groups to establish

100 groups newly and among already existing groups 60 groups are
considered to be worth to give loans.

The bank is rendered its services by registering member farmers of the society
under this scheme in order to make them obtain the complete service provided
by the government of Karnataka.

Through the bank was initially concentrating on formers it is broadened its

services by considering sericulture, dairy farmers, merchants, small scale
industries and women to provide economic strength to them.

SHORTTERM LOAN FOR EXAMPLE:

 SEEDS
 WHEAT SEEDS
 PADDY CROP
 CROPCUTTING MACHINE
 MULBARRY
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MEDIUM TERM LOAN FOR EXAMPLE:

 COWS
 GRAPES

SOURCES OF FUNDS:

 Shares, entrance fee, share price.

 Deposits.
 PCARBD bank is obtaining
 Funds from government of Karnataka, government of india according to
the low of india.
 Gifts, provident and donations.
 Commission.
 Yearly of subscription.

ORGANISATIONAL STRUCTURE:

Special officer

Managing director

General manager

manager

Senior assistant

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Junior assistant

COMPETATORS:

o Pragathigramina bank
o State bank of india
o DCC bank

KEY PERSONS:

CEO

BOD

MD

BRANCH MANAGER

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CREDIT PROVIDED TO AGRICULTURAL ACTIVITIES

Steps taken for granting agricultural loans are as below.

Distric Manager

Recovery Technical Legal Divisional

officer officer officer

Accountant
Superrinted

FDA

SDA

Primary Bank

Farmers

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The main activity of the bank is dispensation of long term credit, for
agricultural and rural development . The bank is advancing loans under
‘Normal program’ and ‘special development program’.

The normal program covers items like leveling, bunding, fencing, and
construction of cattle shed, farmhouse, and redemption of old debts,
acquiring ownership of land by tenants under land reforms .

Special development program cover productive purposes like minor

irrigation, horticultures, plantation craps, farm forestry waste land
development, dairy development, piggery gobar -gas plants prawn
culture ,poultry, sericulture, bullock and bullock carts, farm mechanization,
integrated loans for agriculture and non-agricultrure and for the
development of lands under major and medium irrigation projects.

SHORT TERM LOANS FOR BELOW MENTIONED IMAGES

PURPOSE

WHEET AND SEEDS

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PADDY CROP

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CROP CUTTING

MEDIUM TERM FOR BELLOW SHOWN IMAGE PURPOSE

GRAPES

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COWS

CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

MEANING OF ANALYSIS

It is a process of establishing the meaningfull relationship between the

items of two financial statements with the objective of identified the
financial and operational strength and weakness. This process includes both
data analysis and interpretation.

The term “Analysis” means methodology classifying data given in the

statements into a simplified form. The interpretation involves the explanation
of the facts in a simplified manner. It involves the comparison of similar
figures at different points of time and different figures at same point of
time.

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MEANING OF THE INTERPRETATION

It refers to the comparison of various components and definite conclusion

may be drawn about the earning capacity profitability, liquidity of
solvency trend etc. comparison is very much essential for interpretation.

Analysis and interpretation of a financial statement refers to such a

treatment of the data found in the financialsoundness of the business .It
brings out the mystery behind the figures in financial statements

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