M.com Pld Bank. Cnhalli.docx

CHAPTER 2

RESEARCH DESIGN INTRODUCTION TO THE TOPIC Meaning of Debt Debt is that which is owed ; usually referencing assets owned, but the term can also cover moral obligations and other interactions not requiring money. In the case of assets, debt is a means of using future purchasing power in the present before summation has been earned. Some companies and corporations use debt as a part of their overall Corporate finance Strategy. A debt is created when a creditor agrees to lend a sum of assets to a debtor. In modern society, debt is usually granted with expected repayment; in many cases, plus interest. Historically, debt was responsible for the creation of indentured servants. Debt Is that which is owned. A person who owes debt is called a debtor. Debtor .

People or organizations often enter into agreements to borrow something.

Both parties must agree on some standard of deferred payment, most usually a sum of money denominated as units of a currency, but sometimes a like good. For instance, one may borrow shares, in which case, one may pay for them later with he shares, plus a premium for the borrowing privilege, or the sum of money required to buy them in the market at that time. There are numerous types of debt obligations. They include loans, bonds, mortgages, promissory notes, and debentures. It is very common to borrow large sums for major purchases, such as mortgage, and pay it back with an agreed premium interest rate over time, or all at once at a later date. The amount of money outstanding is usually called a debt.

The debt will increase through time if it is not repaid faster than it grows. In some systems of economics this effect is termed usury, in others, the term "usury" refers only to an excessive rate of interest, in excess of a reasonable profit for the risk accepted. As noted above, debt is normally denominated in particular monetary currency, and so changes in the valuation of that currency can change the effective size of the debt. This can happen due to inflation or deflation, so it can happen even though the borrower and the lender are using the same currency. Thus it is important to agree on standards of deferred payment in advance,

so that a degree of

fluctuation will also be agreed as acceptable. It is for instance common to agree to " US dollar denominated" debt. The form of debt involved in banking gives rise to a large proportion of the money in most industrial is dentations (see money and credit money Credit money is money that is backed by a promise to pay made by some one other than the state. Examples of credit money include bank deposits and credit card loans. During the Crusades in Europe, precious goods would-be entrusted to the Catholic Church's for a discussion of this). There is therefore a complex relationship between inflation, deflation, the mone supply, and debt. The store of value represented by the entire economy of the industrialized nation itself, and the state’s ability to levy tax on it, acts to the foreign holder of debt as a guarantee of repayment, since industrial goods are in high demand in many places worldwide. TYPES OF DEBT A Company uses various kinds of debt to finance its operations. The various types of debt can generally be categorized into: 1) secured and unsecured debt,2) private and public debt, 3) syndicated and bilateral debt, and 4) other types of debt that display one or more of the characteristics noted above. A debt obligation is considered secured if creditors have recourse to the assets of the company on proprietary basis or otherwise ahead of general claims against the company. Unsecured debt comprises financial obligations, where creditors do not have recourse to the assets of the borrower to satisfy their claims. Private debt comprises bank-loan type obligations, whether senior or mezzanine. Public debt is a general definition covering all financial instruments that are freely trade able on a public exchange or over the counter, with few if any restrictions. Loan syndication is a risk management tool that allows the lead banks underwriting

the debt to reduce their risk and free up lending capacity.A basic loan is the simplest form of debt. It consists of an agreement to lend a principal sum for a fixed period of time, to be repaid by a certain date. In commercial loans interest, calculated as a percentage of the principal sum per year, will also have to be paid by that date. In some loans, the amount actually loaned to the debtor is less than the principal sum to be repaid; the additional principal has the same economic effect as a higher interest rate. MEANING OF RECOVERY MANAGEMENT Recovery Management is the process of planning, testing, and implementing the recovery procedure sad standards required to restore service in the event of a component failure; either by returning the component to normal operation, or taking alternative

actions

to

restore

service.

Recovery

Management

is

the

acknowledgement that failures will occur regardless of how well the system is designed. The intent is to anticipate and minimize the impact of these failures through the implementation of predefined, pretested, documented recovery plans and procedures. The primary objective of recovery Management is to ensure that service level requirements are achieved. This is accomplished by having recovery procedures in place that will restore service to a failing component as quickly as possible. In simple words recovery means to get back our own thing back which we have given it to others. In banks recovery means to get back the amount back which they have given to the customers in the form of loans and advances. The main business of bank is through loans and advances. They accept deposits from the public and lend it to the needed customers in the form of loans and advances and they charge interest plus a certain portion of premium from them and then they provide a certain portion of amount of interest to the customers who had deposited in the bank and the difference of interest is their profit. Suppose the bank accepts deposit @ 7.5% and provides loan @13.5% the difference of 7.5% and13.5% i.e 6% is the profit of the bank. The role of recovery comes into picture when the customer who has taken loan fails to pay his installment i.e the installment money consist of the interest plus certain amount of loan amount. As the main business of a bank is through providing loans and advances if they don’t get the installment in time it will adversely effect the day to day banking business finally they will be at a loss

in order to avoid such unforeseen conditions in case if there is many default recovery management is done where a team of members are specially appointed mainly to see the recovery cases. They adopt many measures to recover the amount that has been provided as loans and advances. Recovery management is also known as debt recovery management.

RESEARCH DESIGN Introduction A Research design is considered to be good when it minimizes the business & maximize the reliability, lower the experimental error better the design. Thus the effectiveness of a Research depends upon the purpose and nature of the Research problem to be studied a design effective for one Research study may not be good for another. It suits to the nature of the problem. It suits to the available resources & time. DEFINITION OF RESEARCH: According to Robert Ross, “research is essentially an investigation, a recording an analysis of evidence for the purpose of gaining knowledge”. According to Redman and Mary: “research is a systematized effort to gain new knowledge”. MEANING OF RESEARCH DESIGN: A research design is the conceptual structure wit in which the research would be conducted. It informs what, where, how much and when, by what means a research study is to be conducted. DEFINITION OF RESEARCH DESIGN: According to C. Selltic and other “ a research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure”.

REVIEW OF LITERATURE Legal Reform and Loan Repayment: The Microeconomic Impact of Debt Recovery Tribunals in India Abstract In 1993, the Indian government introduced debt recovery tribunals to speed up the resolution of debt recovery claims larger than a threshold. This paper exploits the staggered introduction of tribunals across states and the link between overdues and claim size to implement a differences-in-differences strategy on project loan data. It finds that the tribunals reduced delinquency for the average loan by 28 percent. They also lowered the interest rates charged on larger loans, holding constant borrower quality. This suggests that the speedier processing of debt recovery suits can lower the cost of credit. (JEL G21, K41, O16, O17) Debt Recovery Techniques In The Banking Sector, Problems And Prospect (A Case Study Of Union Bank Nigeria Plc)

ABSTRACT When some banks in the system are distressed, it is in the best interest of the non-distressed ones that an effective resolution of the distressed in carrying out investigation. This is because, the distress in one bank can lead to a loss of confidence in the effected bank. It can also affect lack of confidence in the entire banking system, the corporation requires enormous amount of money which it does not have at the moment given the age and size of the insurance fund. Bank customers expect their bankers to provide them with loan and advance to make-up and short fall in their required fund, ability of the bank to maintain profitable depends largely on the extent to which the credit policy and debts recovery techniques is maintained. Credit control department is never the center of banks and as such, they are charged with responsibility of making proper use of the shareholders fund for the benefit of the public at large.

The Union Bank of Nigeria Plc has been for this work. The study is carried out to examine the debt recovery techniques employed by Union Bank of Nigeria Plc, towards the effective running of deemed appropriate. The case study method was adopted in carrying out the work and data were collected from secondary and primary source. Secondary sources information include the use of existing literature coupled with use of some journals and other unpublicized manuals that were seen to be useful to this work. - See more at: http://projectstoc.com/read/514/debt-recovery-techniques-in-thebanking-sector-problems-and-prospect-a-case-study-of-union-bank-nigeriaplc#sthash.xQVTs4B9.dpuf Luther (1976)1 chaired the committee appointed by Reserve Bank of India to study the productivity, efficiency and profitability of commercial banks. The committee analyzed the various issues related to the planning, budgeting and marketing in commercial banks. Swamy (2001)2 studied the comparative performance of different bank groups since 1995-96 to 1999-2000. An attempt was made by researcher to identify factors which could hoe led to changes in the position of individual banks in terms of their share in the overall banking industry. He analyzed the share of rural branches , average branch size, trends in bank’s profitability, share of public sector assets, share of wages advances, spread, has been calculated. He concluded that in many respects nationalized public sectors banks much better than private banks, even they are better in expenditure, provision and contingencies, net non performance assets in net than foreign banks. Bloem and Gorter (2001)3 suggested that a more or less predictable level of nonperforming loans, though it may vary slightly from year to year, is caused by an inevitable number of ‘wrong economic decisions by individuals and plain bad luck (inclement weather, unexpected price changes for certain products, etc.). Under such circumstances, the holders of loans can make an allowance for a normal share of nonperformance in the form of bad loan provisions, or they may spread the risk by

taking out insurance. Enterprises may well be able to pass a large portion of these costs to financial institutions will include a premium for the risk of nonperformance on granted loans losses to capital may become apparent. Eventually, the economy reaches a trough and turns towards a new expansionary phase, as a result the risk of future losses reaches a low point, even though banks may still appear relatively unhealthy at this stage in the cycle. At this time, banks’ non-performing loans increase, profits decline and substantial customers in the form of higher prices. For instance, the interest margin applied by. Rajeshwari Krishnan (2002)4 focused on the problem of swelling nonperforming assets in banks and financial institution of the country becomes more and more unmanageable and created threats for the financial sector. She found that securitization can be used for the liquidating the illiquid and long terms debut like loan receivables of the financial institutions or bank by issuing marketable securities against them. She concluded that the SARFAESI act is defiantly and big leap forward not only in the filled of NPA management but also promoting the securitizing market in India. The act may be required to fine tuned to bring in ‘natural justice’. Rituparna Das (2002)5 performed a research on Managing the Risk of Non Performing Assets in the Small Scale Industries in India. In this article the researcher tries to seek a solution to the problem of NPA in the small scale industries under the present circumstances of banking and insurance working together under the same roof. What is stressed in this article is the pressing need of the small-scale entrepreneur for becoming aware and educated in modern business management holding a professional attitude toward rational decision making and banks have to facilitate that process as a part of the credit policy sold by them. Prashanth K. Reddy (2002)6 in his research paper on the topic, “A comparative study of Non Performing Assets in India in the Global context” examined the similarities and dissimilarities, remedial measures. Financial sector reform in India has progressed rapidly on aspects like interest rate deregulation, reduction in reserve requirements, barriers to entry, prudential norms and risk-based

supervision. The study reveals that the sheltering of weak institutions while liberalizing operational rules of the game is making implementation of operational changes difficult and ineffective. Changes required to tackle the NPA problem would have to span the entire gamut of judiciary, polity and the bureaucracy to be truly effective. This paper deals with the experiences of other Asian countries in handling of NPAs. It further looks into the effect of the reforms on the level of NPAs and suggests mechanisms to handle the problem by drawing on experiences from other countries. U.N. Lakshman (2003)7 in his study pointed out the reasons for NPA’s in Indian bank. He started the reasons could be, diversion of the bank fund, time/cost overrunwhile implementing the project, business failures like product failing to capture market, inefficient management, strained labor relations, old technology and product obsolescence, recession in some foreign countries and adverse exchange rate government policies toward excise, imports and exports , willful default frauds, misappropriations, deficiencies in the system of credit appraisal monitoring and follow up, delay in settlement/ subsidies. He further mentioned some of the methods to recover NPAs they are Recapitalization and asset reconstruction fund. He highlighted the steps taken 15 contain NPAs they are as following RBI stressed the need for credit appraisal and credit supervision since the basic problem is at lone decision stage, stressed the need to monitor stock and operation and end use statements, detailed guidelines have been issued to take steps to avoid sickness and also to nurse bake the align units, stressed the need to constitute recovery cells, NPA management departments and fixed recovery target for banking units, the debt recovery tribunal should depose off the issues within six months. It should be given freedom to regulate its own Procedure subject to the provision of the Act of 1993, on the filling of suit in court law; the following guidelines are prescribed which registered and the enforceable. He made suggestions that areas which created the problem, in most costs the barrowers are ot be found. The documents charging should with the bank including the location map of properties. Must avoid expert’s orders to eliminate scopes for reopening the mater and also further litigation cost memo should be filled with in 7 days from the date of court order which includes application fee, advocate fee, insurance /go down/storage charges and other expenses incurred by a bank.

G. Chandrashakar Rao (2003)8 studied the present and most critical issue faced by the banking system has been hug pile-up of nonperforming assets which the bank have come to be saddled with. As result the survival of many weak bank managements and unions of their employees. He noticed that the main reasons for the banking units to become weak leading to mounting NPAs in diversification of funds by promoters, the other region is the tardy legal system and the inadequate legislation for recoveries. The reasons stated for the increasing NPAs in the primary sector

are directed

and preapproved

loans

sanctioned under sponsored

programmers’, absence of any securities, lack of effective follow up etc,. In view of this, it is not desirable to expect the other hand, they have to work as promoted of the economic development on the other hand,this call for effective risk return approach to be adopted by the banks. P.Rajaseker Reddy and D. Ramana Reddy (2003)9 made a conceptualized study in Andhra Pradesh in nonperforming asset. They noticed that the internal and external courses financial management , managerial deficiency over the estimation demand, underestimation of capital costs, delay in implementing project which result is cost acceleration, of finance and working capital, surplus labor, recession in demand, inadequate availability of resources like relation caused heavily industrial sickness which paned the way to the evaluation of NPAs in industrial sector. They figured out the for NPAs have included are many sector of industry. Failures to introduce problem of NPAs in state and made some suggestion they are extending role of banks and financial institutions not to keep their activity limited to financing but also to monitor the functioning of industry from time to time, introducing entrepreneur training, counseling and guidance for the new entrepreneurs. Establishing a separate department of rehabilitation of NPAs which concentrates on diagnosing the reason for NPAs and to detect rehabilitation process by catering to economic, administrative technical and infrastructural help. C.Sivarami Reddy and Smt.V.Kalavathi (2003)10 studied the reasons remedies of non-performing assets, they found that the reasons for NPA were diversification of funds, mostly for expansion / diversification of business like product / market failure, failure, inefficient management, inappropriate technology, labor unrest etc., changes in the macro environment like recession, infrastructural bottle necks etc.,

time / cost over runs during project implementation, changes in government policies, and delay in release of sanctioned limits by banks. TITLE OF THE STUDY: “A study on Debt Recovery Management at The PLD BANK with special reference to CHIKKANAYAKANAHALLI branch”. STATEMENT OF THE PROBLEM: Banks were never so serious in their efforts to ensure timely recovery and consequent reduction of NPA’s as they are today. As we all know growing percentage of non-performing assets is a big concern for modern as well as traditional financial institutions. If recovery is been made effective then certainly it will reflect positively on reducing percentage of NPA’s. So recovery management, of fresh loans or old loans, is central to NPA management. Hence the focus is on Debt Recovery Management of “The PLD BANK CHIKKANAYAKANAHALLI.” OBJECTIVES OF THE STUDY: (1) To study the objectives of Debt Recovery Management of the bank. (2) To study the Debt Recovery Policy and Debt Recovery Methods of the bank. (3) To study the position of NPA’s in the bank. (4) To understand how non-performing asset affect the performance of the bank. (5) To offer suggestions on the basis of analysis and interpretations made. SCOPE OF THE STUDY: Capital Factors and Debt Management Services (CFDMs)is a leading provider of debt management services. We have been managing the debt portfolio for both the private sector and government. The Capital Factors and Debt Management Services team will be required to undertake all aspects of the debt collection process from meeting with debtors to recommendation for court action in extreme circumstances. The Capital Factors and Debt Management Services aim to achieve 'performance indicators that exceed client expectations consists of

mainstream activities, each having unique objectives and methodology applied in order to arrive at an integrated work plan, designed to satisfy the requirements of the scope of work set out by our clients. Analysis of the debt recovery management of the bank. Accessing the trend of the debt recovery management to see the performance. Summarizing the findings and indicating the corrective measure where ever necessary. The study is to concentrate on the five year financial details provides by the bank. Need for the Debt recovery management 

The process of assigning debt collection to outsides enables officials from Banks to develop more remunerative new business.



Third party involvement in debt collection has proven time and again to improve the chances of recovering bank dues as these people are specialists in negotiating with debtors and the result usually speak for themselves;



A skillfully negotiated debt collection could mean saving on litigation cost.



The process of assigning debt collection to outsides enables officials of nonBanks. Cost to develop more beneficial new business.

SIGNIFICANCE OF THE STUDY Lending as we all know is a vital function in banking operations because of its direct effect on economic growth and business development. In view of that the researcher has chosen a successful banker (Guaranty Trust Bank Plc) as an “Apparatus” for the experiment with a view to highlighting some strategies for debt recovery in the banks. Therefore, the findings of this study will enable the bank to know and follow the lending proposition that falls within the framework of the requirement for a good banking advance. Again it is believed that the findings of this study will aid to highlight the various stringent ways of recovering debts from borrower. Equally, to have an in depth look and bring out reasons why credit goes bad. Moreover, to find out the effect of debts to banks and the business enclave, to proffer solutions to the issue of distress among banks. METHOD OF RESEARCH: Analytical Research:

In this method the researcher uses facts or information already available & analysis to make critical evaluation it is a system of procedure & technique applied to quantitative data for analysis. PERIOD OF THE STUDY The study has undertaken for the period of 3 months from Jan 2019 to March 2019 SOURCES OF DATA: In order to arrive at the above objective both primary data and secondary data is been collected. I. PRIMARY DATA: "Primary data is first hand information which is collected a fresh and thus happens to be original in character". This data is collected through personal discussions with the manager and other officials in charge of recovery department through structured questionnaire were held. 2. SECONDARY DATA: "Secondary data are those which have already been passed through the statistical process" This data is collected through Annual Reports of the bank, Books on Research Topic, Journals, and Websites. Operational definition of study Debt An amount owed to a person or organization for funds borrowed. Debt can be represented by a loan note, bond, mortgage or other form stating repayment terms and, if applicable, interest requirements. These different forms all imply intent to pay back an amount owed by a specific date, which is set forth in the repayment terms. Recover management (RM) is the time-sustained stewardship of personal, family and community resources to achieve the highest level of global health and

functioning of individuals and families impacted by severe behavioral health disorders. It is collaborative model between service consumers and traditional and non-traditional service providers aimed at stabilizing and then actively managing, the ebb and flow of one or more chronic disorders Management 1. The organization and coordination of the activities of a business in order to achieve defined objectives. 2. The regaining of or possibility of regaining something lost or taken away. 3. Restoration or return to health from sickness. 4. Restoration or return to any former and better state or condition. 5. Time required for recovering. PLAN OF ANALYSIS: The data collected is raw and it is complied, classified, tabulated and then analyzed using statistical tools like simple percentages. Graphs and Charts are used to highlight the statistics. Based on these data analyzed and interpretation, suggestion and conclusions are drawn. LIMITATIONS OF THE STUDY: 

Some of the information is considered confidential and not available for the

study. 

The data taken for analysis and interpretation is for a limited period (only the

recent five years data has been considered. 

The study is subject to the views and statistics as expressed by the concerned

officials of the bank. 2.12 CHAPTER LAYOUT Chapter: 1 Introduction In this chapter is brief study about introduction to the topic, meaning and definition of the finance, concept of debt recovery management Chapter: 2 Research design It covers introduction to the topic and review of literature and statement of the problem and objectives of the study, scope of the study, need or significance of the study, method of research and period of the study, sources of data, plan of analysis and limitations of the study. Chapter: 3 Company profile

It deals with the history and objective of the bank, products and service, business operation background and organization structure of the bank. Chapter: 4 Data analysis and interpretation It deals with analysis and interpretation of data collected. Chapter: 5 Findings, suggestions and conclusion This chapter includes the total summary of findings, suggestions and conclusion. Bibliography It covers the references made from the book, website, article reference. Appendix /annexure It covers the balance sheet,

CHAPTER-3 PARTA-A INDUSTRY PROFILE 3.1 INTRODUCTION: Now-a-day's banking sector acts as the back I bone of modern business Development of any country mainly depends upon the banking system. The term bank is derived from the French word " BANCO Which means a bench. In olden days, European money lenders or money changes coins of different countries in big heaps (quantity) on benches or tables for the purpose of lending or exchange. A Bank as a financial institution which deals with deposits and advances and other related services. In receives money from these ho want to save in the form of deposits and it lends money to whose need it History of bank: The very first banks were probably the religious temples of the ancient world. In them were stared gold in the form of easy to carry compressed plates. Their owners justly felt that temples were the safety places to store their gold as they were constantly attended. Well build and were sacred. This deterring would be thieves. There are extent records of loans from the 18 th century BC in Babylon that were made by temple priests to merchants. Ancient Greece holds further evidence of banking Greek temples as well as private and civic entities conducted financial transactions such as loams, deposit, currency, exchange and validation of coinage. Interestingly there is evidence to of credit

Where by in return for a payment from a client, a money lender in one Greek port would write a credit note for the client. Who could “CASH” the note in another city. Savings the client the danger of carting coinage with an his journey. Ancient me perfected the administrative aspect of banking and saw greater regulation of financial institutions and financial practices charging interest on loans and paying interest on deposits become more highly developed and competitive. Evaluation of Banking: The evaluation of banking is closely related to the history of money. As a society became more civilized. The need for more efficient methods for barter was developed organically most origins of money can be traced back to the building of large structures such as temples or large undertakings by lenders. Such as wars. The concept of an "I OWE YOU" [ IOU] preceded the idea of a paper check by several thousand years the word "Bank" just means "Bench" because a lender or borrower needs to display wars on a flat surface in order to determine value. A money changer is a person who either changes currencies or changes goods into coins, like a pawn shop. Considering the biblical story of Christ driving the money changers from the temple. They have been around a long time. With the concept of banking and money, comes the question of dependability banking as we know it today is a fairly low risk business for an investor f a savings account. From ancient times. The value of money was determined by its weight in gold, up to invention of the paper cheek, or paper money in the early 1600’s although much light r to transport, paper money was much less dependable for the carrier. The paper was only worth the reputation of the money changer that signed it. Paper money was not only earlier to carry, it was easier to steal for this reason. Professional money changers did all they could to ensure the appearance of liquidity and dependability. This is "Keeping up of appearance” caused money early banks to keep offices in well guarded patrician areas of major cities and later to build palace like fortresses in order to appear dependable.

RBI The reserve bank of India is India's central banking institution, which controls the monetary policy of Indian rupee It was established on apricl 1935 during the British raj in accordance with the provisions of the reserve bank of India act 1934. Need for a central bank Before thę establishment of the Reserve Bank ,the currency and credit systems of the country was operated by the two different authorities; namely, the government and the Imperial bank of India. The establishment of the central bank was found necessary in view of establishing the value of money, neither internally nor externally. The Reserve Bank of India was established with a due to secure monitory stability by means of functioning as the other commercial bank. Main objectives of RBI : 

To manage monetary and cerdit system of the country.



To stabilize internal and external value of rupee



For balanced and systematic development of banking in the country.



For proper arrangement of agricultural finance



For proper arrangement of industrial finance

Functions of RBI 

Monopoly of note issue



Banker to government



Credit control



Banker's to bank



Bank rate policy



Clearing agent



Bank inspection



Control over NBFIS



Exchange rate management

Classification of a bank Indian banking system comprises of both organized and un organized bank, unorganized banking includes indigenous bankers and village money lenders and organized banking includes the following. 

Central bank



National bank for agricultural and rural development



Regional rural banks



Commercial banks



Investment or Industrial bank



Exchange banks



Co-operative banks



Land development banks



Saving banks



Apex bank

BANKING SECTOR: 

Public sector banks



Private sector banks



Internet banking



Foreign banks in India



Indian banks in abroad

PRIVATE BANKS IN INDIA All the banks in India were earlier private banks. They were founded in the pre- independence era to cater to the banking needs of the people. But after nationalization of banks in 1969 public sector banks came to occupy dominant role in the banking structure. Private sector banking in India received a fillip in 1994 when Reserve bank of India encouraged setting up of private banks as part of its policy of liberalization. Of the Indian banking industry. Housing development Finance corporation limited (HDFC) was amongst the first to receive an in principle

approval from the Reserve Bank of India. (RBD to set up a bank in the private sector. PART-B 3.2 BANK PROFILE Profile of the PLD bank Introduction This bank was incorporated on 30 june 1945 The registration number 1588 with the name of “primary Land development bank Itd" (PLD Bank) June 2011. Name of the bank: The area of the bank is “Primary land development bank ltd (PLD Bank)" Area of operation: The area of operation of the bank shall extend to the district of Tumkur area operation shall be confined to 10 branches including head office in Tumkur. For any revision in this regard prior approval of the register shall be necessary prior approval of the RBl shall also be recess any as per the instructions issued from time to time. BRANCHES. District central co-operative bank is having 10 branches including head office branch is headed by branch manager consists of accountants, senior assistants and junior assistants etc depending on the size of the branch. 1. Head office Tumkur 2. PLD Bank Ltd, Chikkanayakanahalli 3. PLD Bank Ltd Sira 4. PLD Bank Ltd Pavagada 5. PLD Bank Ltd Gubbi

6. PLD Bank Ltd Madhugiri 7. PLD Bank Ltd Karatagere 8. PLD Bank Ltd Thuruvekere 9. PLD Bank Ltd Kunigal 10. PLD Bank Ltd Tiptur Organization structure President Manager Accountant First Divison Clerk Second Divison Clerk Supervisor Office Assistants Working hours: The bank shall be kept from 10.00 am to 5.30 pm on weekday, 10.00 am to 6.00 pm on Saturday. But the transaction shall be restricted from 10.30 am to 2.30 pm on weekdays from 10.00 am 2.30pm on Saturday, and every Saturday holiday. The bank k is having one president and 15 Board of directors who are called main policy makers of the bank. All the branches of the bank are working under the control of chief executive officer, having a branch manager.

Who will look after the ones all functions of the respective branch office.

Objectives The main objectives of the bank 

The main objective of the primary land development bank is to promote the development of agriculture and increase the agriculture production.



To develop assist and co-ordinate the members PLDBs and other member cooperative societies and secure financial assistance for the.



To carry on general business of banking.



To do any other business which the control and state government may specify as a business in which it is lawful for the bank to engage and subject to the guidelines issued by the RBl and NABARD APEX bank from time to time.



To buy and sell securities for the legitimate investment of surplus funds and act as an agent for buyers and sellers of securities of the government of India or Karnataka or other securities specified in clauses (a) (b) and (c) of sec. 20 of the Indian Trusts Act and to purchase and sell bonds. Scripts and other form of securities on behalf of constituents and deposits.



To open branches extension counters and other officers of the bank with the previous permission of the RBI with in the area of operation of the bank and to conduct all kinds of banking business.



To maintain safe deposit vaults and lockers and to lease them on hire or other wise to member and other customers of the bank.



To receive for safe custody, all kinds of bonds, valuables as securities from members and customers of the bank of such agreed terms as may be decided by the bunk and to provide safe deposit lockers for such purposes.



To purchase of raise or otherwise obtain movable property for the own Use of bank and also to dispose them off when nice required.



To take measures to help co-operative education.



To promote and undertake co-operative research and development.



To participate in the schematic lending and to provide loans for which refinance facility is available with NABARD Apex Bank.

Funds: The bank shall ordinarily obtain its funds from the following sources; 1. Shares, admission fee, share fee. 2. Deposits 3. Borrowing from the Karnataka state co-operative apex bank national bank for agriculture and rural development. 4. Contribution from co-operative societies, donations, grants and subsidies. 5. Assistance from state and central government. 6. Interest on deposits. 7. Commissions 8. Annual subscriptions if any and 9. Any other assistance given from different government/ voluntary and other national and international agencies. Loans and advances Short term

Medium term

1. KCC Loan

1. M.T. Loan

2. Staff OD loans

2.

M.T.

3.

M.T.

Chaitanya 3. STLans Conversion

4. Produce loan 5. Industrial loans 6. Vehicle loa 7. Artisan loans 8. Salary loans 9. HBI Loans 10. Consortium loan 11. Cash credit loans 12. NSC loan 13. Loan on deposits 14. Over draft 15. SJSY Loans 16. SHG 

Types of loans available in PLD Bank

Agricultural loans 

Short-term loan



Medium term loans

Non-agricultural loans 

Consumer loan



Salary loan



Housing loan



Gold loan



Vehicle loan



Immovable property loan



Cash credit loan

BOARD OF DIRECTORS Sri. H.R. Shashidar President Pld bank Ltd. Chikkanayakanahalli (Tq), Tumkur (Dist)

Sri. C.P. Jayadhev Kumar Vice president Chikkanayakanahalli (Tq) Tumkur (Dist) Directors 

Sri, B.N.Shivaprakash



Sri .T. shankaralingappa



Sri. Basavaraj



Sri D.L. Dhananjaykumar



Sri Ranganath



Sri M.N. Shivaraiu



Sri Erayya



Sri K.M. Rmavya



Sri R. Arunkumar



Sri H. Renukaprasad