This internship report tells us about the Uttarakhand Gramin Bank and how it tries to provide its banking service to different parts of north India. The internship was done at the Regional office of the bank under the supervision of Mr.Shailesh Mishra.

1. 1
Project Report
(Submitted for the Degree of Bachelors Of Business Administration)
A STUDY ON UNDERSTANDING THE
BANKING SERVICES PROVIDED BY
UTTARAKHAND GRAMIN BANK
Submitted To- Submitted by-
Mr.Deepak Kaushal Divyansh Kaushik
(Assistant Professor) BBA Finance
Roll No:2401726

2. 2
ProjectReport
(Submitted for the Degree of Bachelors Of Business Administration)
“SUMMER INTERNSHIP REPORT OF
UTTARAKHAND GRAMIN BANK.”
Submitted By-
DIVYANSH KAUSHIK
BBA Finance
Roll No: 2401726
GRAPHIC ERA (DEEMED TO BE UNIVERSITY)

3. 3
Declaration
I hereby declare that the Project Work on Uttarakhand Gramin Bank under the guidance of
Mr.Shailesh Mishra, Finance Department, Uttarakhand Gramin Bank
Submitted by me for the partial fulfillment of the degree of Bachelors of Business Administration is
my original work and has not been submitted earlier to any other University/Institution for the
fulfillment of the requirement for any course of study.
I also declare that no chapter of this manuscript in whole or in part has been incorporated in this report
from any earlier work done by others or by me. However, extracts of any literature which has been
used for this report has been duly acknowledged providing details of such literature in the references.
DIVYANSH KAUSHIK
Roll No: 2401726

4. 4

5. 5
Acknowledgement
This report is an outstanding prospect to convey my gratefulness to those many people whose timely
help and guidance went a long way in finishing this project work from commencement to achievement.
I would like to express my sincere thanks to Prof. Dr.Manish Kumar ( Head of Department) for giving
me an opportunity for pursuing the project. I would also like to thank Mr.Deepak Kaushal(Asst.
Professor) for giving me this wonderful opportunity to learn. By acknowledging the guidance, support
and assistance, I pay my deepest sense of guidance to the management of Uttarakhand Gramin Bank.
I hereby acknowledge my profound gratitude to the head of the Finance Department of Uttarakhand
Gramin Bank Mr.Shailesh Mishra under whose guidance I have studied about the banking services of
Uttarakhand Gramin Bank. This project would not have been possible without his guidance and
support.
Last but not the least would like to thank my friends, family members and all those people who helped
me for the completion of this project.
Working on this project has proved to be an enlightening experience for me.
DIVYANSH KAUSHIK

6. 6
LIST OF ABBREVIATIONS
 UCB-urban cooperative bank
 ATM-automatic teller machine
 NPCI- national payment corporation of india
 HUF-hindu undivided family
 SHG-self help group
 ACB-audit committee of board
 SBI-State Bank of India
 FY-Financial Year
 BC-Business Correspondents
 RO-Regional Office
 LIC-Life Insurance Corporation
 NPA-Non Performing Assets
 KCC-Kisan Credit Card
 RRB-Regional Rural Bank
 NABARD-National Bank For Agriculture And Rural Development
 NEFT-National Electronic Fund Transfer
 RTGS-RealTime Gross Settlement
 ECS-Electronic Clearance Services
 EFT-Electronic Fund Transfer
 NRE-Non Resident External Account
 NRO-Non Resident Ordinary Account
 SME-Small and Medium Sized Enterprises
 MIS-Management Information System
 HRMS-Human ResourceManagement System

7. 7
 E-KYC-Electronic Know your Customer
 NACH –National Automated Clearing House
 Rupay- Rupee and Payment
 UGB-Uttarakhand Gramin Bank
 IRDP-Integrated Rural Development Program
 SGSY-Swarnajayanti Gram Swarozgar Yojana
 SCP-SpecialComponent Plan
 NTG-Non Target Groups
 SC-Scheduled Caste
 ST-Scheduled Tribes

8. 8
LIST OF TABLES
Table 1.1- SHARE CAPITAL MIX
Table 1.2- BRANCH NETWORK
Table 1.3- UGB Staff
Table 4.1- SELF HELP GROUP PROJECTIONAND ACHIEVEMENTS
Table 4.2- PERFORMANCE OF NPA
Table 4.3- TRAINING PROGRAMMES FOR EMPLOYEES
Table 4.4- LOAN DISBURSEMENT SECTORS

9. 9
LIST OF FIGURES
Figure 1.1 - UTTARAKHAND GRAMIN BANK PROFILE
Figure 1.2- BANK ORGANISATION STRUCTURE
Figure 1.3-TYPES OF DEPOSITS
Figure 1.4- PROFITABILITY
Figure 4.1-DEPOSIT MIX

10. 10
TABLE OF CONTENT
S.NO. PARTICULARS PAGE NO.
1. Declaration 3
2. Certificate of the company 4
3. Acknowledgement 5
4. List of Abbreviations 6
5. List of Tables 8
6. List of Figures 9
7. CHAPTER 1 – INTRODUCTION
1.1 Introduction to Banking Sector
1.2 History of RRB
1.3 Objectives of RRB
1.4 History Of the Company
1.5 Company Profile
1.6 Achievements of the Bank
1.7 About the Bank
1.8 Branch Network
1.9 Board of Directors
1.10 Company Products
1.10 Financial Performance of the Bank
11
12
13
14
15
16
17
18
19
20
21
25
8. CHAPTER II : REVIEW OF LITERATURE 26
9. CHAPTER III – RESEARCH METHODOLOY
3.1 collection of data
3.2 data used in study
31
10 CHAPTER IV :DATA ANALYSIS AND
INTERPRETATION
34
11 CHAPTER V : CONCLUSIONS,RECOMMENDATIONS
AND SUGGESTIONS
5.1 Conclusion
5.2 Recommendations
5.3 Limitations of the study
46
47
49
50
12 Bibliography 51

11. 11
CHAPTER-1
INTRODUCTION

12. 12
INTRODUCTION TO THE BANKING SECTOR
The banking sector is the lifeline of modern economy. It is one of the important financial pillars of the
financial sector, which plays a vital role in proper functioning of an economy. It is very important for
economic development of a country that its financing requirements of trade, industry and agriculture
are met with a high degree of commitment and responsibility. Thus, the development of a country is
integrally linked with the development of banking sector. In today’s economy, banks are to be
considered not as dealers in money but as the leaders of development. Banks play an important role by
mobilization of deposits and disbursement of credit to various sectors of the economy. The economic
health of a country is reflected by the Banking System. The strength of an economy depends upon the
strength and efficiency of the financial system, which in turn depends on a sound banking system. A
proper banking system efficiently mobilized savings in productive sectors and a solvent banking
system ensures that the bank is capable of meeting its obligation to the depositors. In India, financial
institutions like banks plays a crucial role in socio-economic progress of the country after
independence. In India the banking sector accounts for more than half the assets of the financial sector.
Indian banks are going through a fascinating phase through rapid changes brought about by financial
sector reforms, which are being implemented in a phased manner. The current process of
transformation should be viewed as an opportunity to convert Indian banking into a sound, strong and
vibrant system capable of playing its role effectively on their own without imposing any burden on
government. After the liberalization of the Indian economy, the Government announced number of
reform measures on the basis of the recommendation of the Narasimhan Committee to make the
banking sector economically viable and competitively strong.The current global crisis that hit every
country raised various issue regarding efficiency and solvency of banking system in front of policy
makers. Now, crisis has been almost over, Government of India and Reserve Bank of India are trying
to draw some lessons. RBI is making necessary changes in its policy to maintain price stability in the
economy. The main objective of changes is to increase the efficiency of banking system and
individual institutions. Therefore, it is necessary to measure the efficiency of Indian Banks so that
corrective steps can be taken to improve the health of the banking system.

13. 13
History of Regional Rural Banks (RRBs):
The Regional Rural Banks were established on recommendations of the Narsimha Committee on
Rural Credit. The committee was of the view that RRBs would be better suited than the commercial
banks or Co-Operative Banks in meeting the needs of the rural areas. After considering the
recommendations of the committee the Government of India passed Regional Rural Banks Act in
1976. After passing the Act within a year at least 25 Regional Rural Banks were established in
different parts of India.
The Regional Rural Banks were established with a view to develop a type of banking institution which
could function as a commercial organization in rural areas.
The Regional Rural Banks Act 1976 provide for incorporation, regulation and winding up Regional
Rural Banks with a view to developing the rural economy by mainly providing for the purpose of
development of Trade, Agriculture, Commerce,credit and other facilities particularly to the small and
marginal farmers, Agricultural Labourers, Artisans and small entrepreneurs are provided.
Area of Functioning of Regional Rural Banks:
The Regional Rural Banks are required to work and function within a limited area for which they are
established. Usually the functional area of each rural bank is confined to a few districts of the state in
which they are set up. The area of functioning of RRBs is decided by the central government in
consultation with NABARD and the Sponsor Bank by way of a notification issues in this regard.
It is therefore necessary for RRBs to establish their Head Office in central place of their notified area
of functioning because they are authorized to open their branches or appoint agency within their
specified areas.
Sponsorship of Regional Rural Banks:
Every Regional Rural Bank is sponsored by a Public Sector Bank. A sponsor bank in relation to a
Regional Rural Bank is a Bank which sponsors the RRB. It is duty of the sponsor bank to aid and help
the RRB sponsored by it.

14. 14
Objectives of Regional RuralBanks:
The idea of establishing Regional Rural Banks was discussed in the Twenty Point Economic
Programme of July 1975 to solve the credit needs of rural people.
The Government of India appointed the Narasimham Committee in July 1975 to set up the new
institution in order:
(i) To provide employment to the educated youth in rural areas.
(ii) To bring down the cost of rural banks by recruiting their staff on the same scale of pay and
allowances as for the employees of State Government/local bodies. It was on recommendation that the
first five RRBs were set up on 2 October, 1975 under an Ordinance announced on 26 September, 1975
which was replaced by the Regional Rural Banks Act of 1976.
The major objectives of the RRBs is to develop the rural economy by providing credit and other
facilities for agriculture, trade, commerce, industry and other productive activities in the rural areas,
particularly to the small and marginal farmers, agricultural labourers, artisans and small entrepreneurs.
Functions of Regional RuralBanks:
1. To grant loan and advances to the weaker sections of the rural population, especially to the small
and marginal farmers, agricultural labourers, artisans and small entrepreneurs who are engaged in
agriculture, trade, commerce, industry and other productive activities.
2. To grant loans and advances to cooperative societies, including marketing societies, agricultural
processing societies, cooperative farming societies, primary agricultural credit societies or farmers’
service societies for agriculture purposes.
3. To take banking services to the doorsteps of the rural masses, particularly in the unbanked rural
areas.
4. To mobilise rural savings by accepting deposits and channelizing them for productive activities in
the rural areas.

15. 15
5. To create supplementary channel for flow of credit from the urban money market to the rural areas
through refinance.
6. To generate employment opportunities in rural areas.
7. To bring down the cost of supplying credit in rural areas.
HISTORY OF UTTARAKHAND GRAMIN BANK :
 Uttarakhand Gramin Bank is a regional rural bank of India.
 It is sponsored by State Bank of India established under RRB Act 1976 came into existence on
1st Nov 2012
 It was formed after amalgamation of Uttaranchal Gramin Bank, Dehradun (Sponsored by SBI)
& Nainital Almora Kshetriya Gramin Bank, Haldwani (Sponsored by Bank of Baroda)in
Uttarakhand state.
 Uttarakhand Gramin Bank was established under the provisions of an Ordinance passed in
September 1975 and the RRB Act 1976 to provide sufficient banking and credit facility for
agriculture and other rural sectors in the Uttarakhand State.
 The Head Office of the Bank is situated at Dehradun,which is the capital city of Uttarakhand.
 The major area of operation which is extended in remote areas of the state is less populated and
seven districts of the service area fall under Zero Industry zone.

16. 16
UTTARAKHAND GRAMIN BANK PROFILE
Uttarakhand Gramin Bank is formed by the Central Government, State Government and Sponsor Bank
and their contribution is in the ratio 50:15:35 respectively. The Share capital of Uttarakhand Gramin
Bank is 42.14 crores as on 31.03.2017.
Figure 1.1
The entire share capital and share capital deposit of the Bank is-
Central Government : Rupees Twenty one crore seven lakhs forty four thousand
State Government : Rupees six crore thirty two lakh twenty thousand two hundred
Sponsor Bank(State Bank of India): Rupees fourteen crore seventy five lakh twenty thousand
Particulars Share of Central
Govt.
Share of Sponsor
Bank
Share of State
Govt.
TOTAL
Share Capital 210744 147520 63222 421487
Table-1.1 (Amount in thousands)

17. 17
Achievements of the Bank:
 The bank registered a total business of 6666.36Cr with a growth of 9.07% during Financial
Year 2017-18.
 Net Profit after Tax of the Bank was 3.65Cr during Financial year 2017-18.
 The bank has the second largest banking network in the state with 286 fully CBS branches.
 NEFT/RTGS/ECS/EFT/Internet Banking/ATM/SMS Alert/E-Tax facilities have been
introduced.
 All KCC holders have been provided with ATM cards.
 The bank has standardized customer friendly,comfortable interiors introduced for all branches.
 The bank has tied up with Western Union Money Transfer for receiving remittances from
abroad.
 Life and non life insurance products of SBI Life,SBI General Insurance and National Insurance
Co., are now available at all branches.
 Bank has organized 422 Literacy Camps and provided banking knowledge to people through
Mobile Vans.
 The Capital Adequacy Ratio of the Bank stood at 10.07% which shows the sound financial
position of the bank.
 New ftp Server for e-circulars and MIS reports.
 Mobile Banking facility already provided to the staff in first phase and will be launched for
customers once it is properly tested.
 Discontinuance of paper circulars and introduction of e-circulars.
 HRMS has been launched for salary payment.
 351132 Rupay Cards have been issued till 31.3.17.
 67 loss making branches in comparison to 108 branches in the previous year.

18. 18
ABOUT THE BANK
Vision of the Bank
“To make ‘Uttarakhand Gramin Bank’ the “Uttam Bank” of Uttarakhand state by providing customer
oriented services,maintaining transparency and excellence in banking,development oriented approach
with innovative concepts by earning continuous profit”
Mission
 To provide all kinds of technology based banking services
 To contribute in the development of tourism and industrial development of the state
 To link every household with the bank through financial inclusion and its vast branch network
 Adoption of Village in the service area and KCC to all the farmers
 TO establish its incredible presence in the Uttarakhand state by providing employment
opportunities to rural youth.
ORGANISATIONAL STRUCTURE
Organisational structure of the bank is divided into 3 administrative levels.Branches under the
supervision of managers are the root units functioning under the Regional Offices, supervised by the
Regional Managers.Administrative control of these two is enshrined in the Head Office.
Presently,there are 4 Regional Offices viz. Regional Office-I Dehradun,Regional Office II
Pauri,Regional Office-III Pithoragarh and Regional Office-IV,under which 86 Branches and 4 Satellite
Offices,62 Branches and 7 Satellite Offices,38 Branches,100 Rural Branches and 2 extension counters
are functioning respectively.
HEAD OFFICE
RO-1 RO-2 RO-3 RO-4
60 BC 76 BC 54BC 64BC
Figure 1.2

19. 19
BRANCH NETWORK
Uttarakhand Gramin Bank is the second largest bank in terms of branch network.The area of operation
of the bank is spread over a network of 286 branches covering all the 13 districts of Uttarakhand.The
Bank provides its services through its 4 Regional Offices,286 Branches,11 Satellite Offices and 2
extension counters.
NO. DISTRICT RO UR
BA
N
SEMI-
URBA
N
RURAL
BRANCH
SATELLITE
OFFICES
EXTN.
COUNTE
R
TOTAL
1 DEHRADUN I 13 8 23 1 45
2 TEHRI I 1 19 3 23
3 UTTARKASHI I 1 6 7
4 HARIDWAR I 3 8 4 15
5 PAURI II 5 36 4 45
6 CHAMOLI II 2 11 2 15
7 RUDRAPRAYAG II 8 1 9
8 PITHORAGARH III 4 26 30
9 CHAMPAWAT III 1 7 8
10 NAINITAL IV 6 3 29 39
11 ALMORA IV 6 22 28
12 BAGESHWAR IV 14 14
13 U S NAGAR IV 2 5 13 21
TOTAL 4 24 44 218 11 2 299
Table-1.2

20. 20
BOARD OF DIRECTORS
 Shri Sanjay Agarwal-Chairman (on deputation from SBI)
 Shri Puran Chand-General Manager(on deputation from SBI)
 Shri Satyapal Singh-General Manager(on deputation from SBI)
 Shri Man Singh Garbyal-General Manager(on deputation from SBI)
 Shri Sudhir Chandra Gairola-Chief Vigilance Officer
 Shri Ravindra Upreti-Regional Manager RO 1,Dehradun
 Shri K.C.S.Bisht-Regional Manager RO 2,Pauri
 Shri Ashutosh Joshi-Regional Manager RO 3,Pithoragarh
 Shri M.S.Bisht-Regional Manager RO 4,Haldwani
UGB STAFF
Office Scale-IV
Office Scale-III
Office Scale-II
Office Scale-I
Office Assistants
Subordinate
TOTAL
9
77
203
357
419
46
1111
Table 1.3

21. 21
COMPANYPRODUCTS
FOR PERSONALBANKING
DEPOSITS
DEPOSITS
CURRENT FIXED SAVINGS RECURRING TAX SAVERDEPOSITS
Figure 1.3
 NET BANKING
 MOBILE BANKING
 LOANS AND ADVANCES
 SHG ACCOUNT
INSURANCE
 LIFE INSURANCE
 GENERAL INSURANCE
LOAN
 HOME LOAN
 PERSONAL VEHICLE LOAN
 EDUCATION LOAN
 LOAN AGAINST SECURITIES
 MOU BASED LOAN AGAINST SALARY
 LOAN AGAINST PROPERTY
CARD
 DEBIT CARD
 KISAN CREDIT CARD

22. 22
 MAHILA CREDIT CARD
 SWAROJGAR CREDIT CARD
 SME CREDIT CARD
 SME SMART SCORE CARD
NRI DEPOSITS
 NRE/NRO ACCOUNT
FOR RURAL PEOPLE-(AGRI/MICRO/GOVERNMENT)
AGRICULTURE
 KISAN CREDIT CARD
 AGRICULTURE CASH CREDIT
 AGRICULTURE TERM LOAN
MICRO CREDIT
 JOINT LIABILITY GROUP
 SELF HELP GROUP LINKAGE
 WOMAN SELF HELP GROUP
 NATIONAL RURAL LIVELIHOOD MISSION
 NATIONAL URBAN LIVELIHOOD MISSION
GOVT SPONSPORED
 PRADHAN MANTRI AWAS YOJANA
 PRADHAN MANTRI EMPLOYMENT GENERATION PROGRAMME
 VEER CHANDRA SINGH GARHWALI YOJANA
 SAFAI KARAMCHARI

23. 23
FOR BUSINESSES
DEPOSITS
 CURRENT ACCOUNTS
BUSINESS/LOANS
 CASH CREDITS
 TERM DEPOSITS
 LOAN AGAINST PROPERTY
 COMMERCIAL VEHICLE LOAN
 CONTRACTOR OD
GUARANTEE/ SOLVENCY/SERVICES
 BANK GUARANTEE
 SOLVENCY CERTIFICATE
 POINT OF SALE
 AADHAR MERCHANT PAYMENT SYSTEM
SERVICES PROVIDED BY THE BANK
PAYMENTS
 NATIONAL ELECTRONIC FUNDS TRANSFER
 REAL TIME GROSS SETTLEMENT
 IMMEDIATE PAYMENT SERVICES
 AADHAR ENABLED PAYMENT SYSTEM
 INTER BRANCH TRANSFER
 NACH AND MMS
 APBS/DBT

24. 24
MOBILE BANKING
 UGB MOBILE APP
 MISSED CALL ALERTS
 SMS ALERTS
INTERNET BANKING
 REGISTER/APPLY
 UGB INTERNET BANKING TIPS
OTHER SERVICES
 AADHAR SEEDING
 SAFE DEPOSIT LOCKER
 FOREIGN REMITTANCE
 PAN/AADHAR CARD ISSUANCE
CROSS SELLING
 MUTUAL FUNDS
 INSURANCE

25. 25
FINANCIAL PERFORMANCE OF THE BANK
PROFITABILITY
The bank earned a profit of Rs.4.62 Crores before Tax and has a net profit of Rs.3.84Crores
after tax as on 31.03.17 in comparison of Rs.1.48 Crores before Tax and net profit of Rs 1.29Cr
as on 31.03.16.
PROFITABILITY ( In Crores )
Figure 1.4
0
5
10
15
20
25
30
35
40
45
50
Operating Profit Provision and Taxes Net Profit
FY 15-16
FY 16-17

26. 26
Chapter II
REVIEW OF
LITERATURE

27. 27
Mukherjee (1976) recommended the establishment of RRBs. He opined that to write off the debt of
small and marginal farmers, and agricultural labourers from the moneylenders, the institutional sector
like RRBs would have to fulfill that gap 100 percent and that, too, in a very short period. The intention
was to have rural touch and local feel i.e. a familiarity with rural problems. RRBs should supplement
and not replace the other institutional agencies. RRBs had a two way relationship both with
commercial banks on the one hand and farmer and service society on the other hand.
Dantwala (1977) committee appointed by the Reserve Bank of India (RBI) to review the working of
RRBs submitted its report to RBI in February, 1978. The review committee observed that there was a
need to establish a new institution of RRBs to fulfill the credit gap. The committee’s view was that
credit gap should be measured with reference to geographical, functional and sectional consideration
and also by the criteria of the degree of substitution of informal credit by formal credit. The
geographical gap would indicate the regional dispersal of institutional credit in the rural areas. The
committee recommended that RRBs would be very useful credit institutions to the weaker sections of
the society like, small farmers, landless laborers, village artisans, etc. The committee felt that the
RRBs can make a substantial contribution towards improving the quality and quantity of credit flows
to the rural areas by becoming an integral part of the rural credit structure.
Singh, P. (1978) studied the performance of Farrukhabad Grameen Bank from 1975 to 1977. The
study revealed that the bank concentrated mostly on crop loans and even the recovery performance
was unsatisfactory. A small amount of loan was provided for the purchase of milk animals and to small
businessmen and rural artisans. No advance was provided for the purchase of tractors or installation of
tube wells. The study concluded that both RRBs and commercial banks are the new entrants in the
field of rural finance and therefore, there was shortage of trained and experienced personnel.
Moreover, they lacked rural background which had affected the recovery situation adversely.
Revell (1979) studied the relationship between bank profitability and inflation. He noted that the effect
of inflation on bank profitability depends on whether bank wages and other operating expenses
increased at a faster pace than inflation. Chippa and Sagar (1981) discussed the variations in the level
of banking development in Eighteen States in 1977 and studied its relationship with other social,
economic and infrastructural variables. The analysis revealed that literacy rate followed by the
infrastructural development emerged as the most dominant variables influencing the level of banking
development.

28. 28
Angadi (1983) measured the extent of concentration of priority sector advances in general and
agriculture advances in particular in selected States in India. The analysis revealed that the degree of
concentration of both priority sector advances and agricultural advances in the selected States had
reduced in 1979 as compared to 1969-70.
Bhattacharya (1986) analysed the impact of branch expansion on the deposit mobilization in the
different states of India. The broad conclusion drawn by 4 extent of branch expansion was very small
in relation to the above mentioned states.
Kumar and others (1987) made an attempt to study the expansion of commercial banking facilities
and extent of disparity in agriculture financed by the commercial banks in various states of India. The
analysis revealed that the expansion of banking facilities had been extended more rapidly
comparatively in rural areas as compared to Semi-Urban areas and Urban areas.
Bal Krishna and Sooden (1991) made an attempt to ascertain the extent of inter-state disparities with
respect to commercial banking services in rural India during 1975 to 1985. The analysis suggested that
the extent of disparities, with respect to all indicators of banking development except rural deposits per
rural branch had come down in the year 1985 as compared to the year 1975.
Balishter and Singh (1992) studied the performance of the Etawah Kshetriya Gramin Bank, in Uttar
Pradesh for the period 1984-1988. The study assessed the performance on the basis of coverage,
growth in deposits and deposit accounts, composition of deposits, total loan advanced, loan advanced
to the weaker sections of the rural community, purpose-wise loan advanced, recovery position and
profit and loss account. The findings highlighted that the Etawah Kshetriya Gramin Bank achieved
progress with respect to deposit mobilization criteria as compared to other criteria. This success was
achieved mainly from the side of weaker sections of rural society through small savings accounts. As
per the guidelines provided by RBI, the bank should maintain 2:1 ratio while financing to agricultural
and non-agricultural activities. The study suggested that advances must be provided to rural cottage
industry as it provided employment to rural people. It suggested the need for big efforts to make the
bank into a financially viable and self-sustaining initiative.
Kumar (1993) studied the progress and performance of the RRBs in India from 197980 to 1989-90.
The study selected various performance indicators such as number of RRBs, number of districts
covered, number of branches, amount of deposits and advances provided to different categories. The
findings of the study suggested that the RRBs should mobilize deposits in order to increase the amount

29. 29
of advances. Further, the quantum of loan per account for allied activities and short-term loans would
decrease with the increase in area coverage. The comparative analysis highlights that some states like
Orissa, Kerala, West Bengal, Tamil Nadu, Tripura, Bihar, Karnataka and Assam had shown poor
performance throughout the study period, whereas the other states had shown better performance.
They suggested that the poor performer banks should increase their advances for agriculture purposes
and also provide adequate shortterm loans to the farmers as per their requirement.
Deagirikar (1997) examined the non-performing assets of Aurangabad-Jalna Garmin banks in
Maharashtra for the year 1998. The findings of the study revealed that NPAs was a serious problem
faced by the banks. The indicators i.e., a number of suit filed accounts, mounting overdue, number of
sick units in integrated rural development programme ( IRDP) showed that assets management of the
bank on sound lines had not been ensured. The availability of data on NPAs was based on accounting
procedure and management policy, and hence did not reflect the true position. The analysis indicated
that IRDP may be held responsible for large NPAs. It was verified by calculating the ratio of NPAs of
IRDP to total NPAs of each branch. This ratio was 45:55 percent which indicated the close relation
between them. The study suggested the need of proper monitoring and follow- up in collaboration with
government and voluntary agencies. Moreover, the head office should have had undertaken diversified
lending operations and mobilized larger business for attending viability in branches.
Swami B. N. Anantha (2001) made comparative analysis of the performance of specific bank groups
during 1996-2000 and concluded that the share in assets of scheduled commercial banks was declining
in public sector banks and foreign banks while it was increasing in old private sector banks and new
private sector banks.
Malhotra (2003) discussed the issue of location with reference to 22 different parameters that had an
impact on the functioning of RRBs in India for the year 2000. The study stated that geographical
location of RRBs did not have any effect upon the performance of RRBs. Rather, sponsored banks
affected their performance. Umbilical cord had its effect on the performance of RRBs but financial
health of the sponsor bank was not considered directly to infer about the umbilical cord hypothesis.
This was the main limitation.
Prasad (2003) examined the performance of all RRBs in the context of pre and post financial sector
reforms period during the period 1975 to 2002. In the first two and a half decades of RRBs inception
i.e., from 1975 to 1990, there was increase in number of banks, district coverage and deposit

30. 30
mobilization of the banks. But after this period, these banks faced various problems like increased over
dues, controlled of multi-agency system, untrained staff, increased establishment costs, losses etc.
Further, the balance sheets of 156 RRBs out of 196 RRBs had shown losses.
Bhatt and Thorat (2004) analyzed the efforts of institutions and incentives in shaping the
performance of RRBs. The lackluster performance of the RRBs during the last two decades could be
largely attributed to their lack of commercial orientation. Instead of adopting international best
practices in microfinance, especially in terms of reducing transaction costs for clients and lending to
individuals based on an appraisal of their ability and willingness to repay , these internally inefficient
banks made loans based on political and social considerations that defied the very fundamentals of
prudent underwriting.
Pal and Sura (2006) assessed the growth pattern of all RRBs in terms of the credit distribution as well
as geographical distribution. Ratios and time series data from inception 1975 to 2005 were utilized.
The study found that the RRBs had achieved tremendous growth in term of number of bank and its
branches. It had extended its service to every nook and corner of the country covering 487 districts in
26 states. Out of the 26 states, Uttar Pradesh had the highest number of 36 RRBs followed by Madhya
Pradesh with 19, and Bihar with 16 RRBs, and these three states constitute 36 percent of the total
RRBs in India However, the distribution of banks was not same in different states. The highest bank
numbers were in Uttar Pradesh with 36 banks and the RRBs were yet to start activities in Delhi, Goa,
Sikkim and all Union Territories
Ibrahim (2012) analyzed the role of RRBs in rural credit from 2002-03 to 2008-09.The study
concluded that there had been tremendous achievement in disbursing loans to both the sectors. The
priority sector loans constituted higher in percentage throughout the study. RRBs had lent money to
the agricultural sector through the short-term and term-loans for the development of the agriculture
sectors in the economy.

31. 31
CHAPTER-III
Research
Methodology

32. 32
ResearchStatement:
The following research statement is tested:
"Financial performance and working of Uttarakhand Gramin Bank"
Objective of Study:
 The main emphasis has been laid down on studying the financial performance of the
bank.
 To know the views of the employees for further improvement in the working of the
bank and development of the employees.
 To find out the ways in which the bank achieve its targets.
 To understand the methods used by the bank to improve the efficiency of employees
and also the organization.
Collection of Data:
Primary Source:
Primary source of data collection is used under the study, questionnaire was prepared to
conduct the study.
 Sample space:
The Branch manager of Uttarakhand Gramin Bank was distributed the questionnaire.
 Secondary source:
Secondary source of data collection was done to gain a clear insight of the topic. The research
was conducted from various books, journals and reports.

33. 33
Data used in Study
The data collected for the purpose of the study has been collected from two main sources:
1. Primary Data
2. Secondary Data
Primary Data:
The primary data was collected through a Questionnaire and personal interaction. The data collected
through questionnaire method because exact and first hand information can be gained. This is more
helpful rather than adopting any other method.
 The primary data is collected by having personal interaction with the manager of Uttarakhand
Gramin Bank.
 A detailed questionnaire was given to him which was the primary source of my study.
 The questionnaire consisted of 10 questions
Secondary Data:
The secondary data comprises of information from internal records of the organization, text books,
journals and various literature available in and outside of the corporation, presentation reports on
various topics, standing orders.
This is the data which is already available, published or unpublished and is collected from the
company records and manuals which are maintained by it.

34. 34
Chapter-IV
Data Analysis and
Interpretation

35. 35
Question 1 -What are the initiatives taken by the bank to raise awareness about the credit needs
among the rural areas?
ANSWER-
The bank helps in organizing self help groups so that people sharing a common problem can meet and
try to support each other. NABARD has helped in providing financial services to the poor
populations.The bank serves small rural depositors while paying them a market rate of interest through
SHG.Bank also organizes literacy camps to make people more aware about their needs.
ANALYSIS-
The bank has given a special thrust on organization of Self Help Groups with a view to increase
awareness among the rural masses especially the women about fulfillment of their urgent credit needs
in a better way. The bank is also trying to involve all the branches in SHG credit linkage program with
the very purpose of extending effective credit flow to that section of people who are still outside the
ambit of institutional finance.
The bank also organized 422 financial literacy camps.Under Financial Inclusion Bank is providing
Banking knowledge through Mobile Van to the people living in the rural areas.
Table 4.1
SELF HELP GROUPS PROJECTIONS ACHIEVEMENTS ACHIEVEMENT %
1)Formation 2062
2)Linkage 2001 334 16.69

36. 36
Question: 2 - What is the deposit mix of the bank?
ANSWER-
For working fund of the bank, Deposit mobilization is one of the top most priorities. Deposits of the
bank rose to 413055.88 lakhs showing a deposit growth of 78050 lakhs. In deposit segment bank have
achieved 194% of MOU targets. The percentage of Demand Deposits stands at 54.07% as on
31.3.2017 as compared to 49.06 as on 31.3.2016.
Figure 4.1
In the above chart the deposit mix was divided into-
1) Current Account - 2.2%
2) Savings Account - 51.87%
3) Time Deposits – 45.93%
ANALYSIS-
In the last financial year, the Time Deposits have reduced by around 5% and the Savings Account has
increased by 5% .Saving Account now has the highest deposit mix in the Bank.Current Account did
not show any kind of increase in the past financial year.
TYPES OF DEPOSITS
Current Account
Savings Account
Time Deposits

37. 37
Question 3: What is the primary concern area of the bank?
ANSWER-
There are many concern areas of the bank but primarily the most important is the NPA.NPA is non-
performing assets.The level of NPA has been reduced through different methods and strategies like
Board Approved Monitor-able Action Plan(MAP) introduced in the FY,Sub Committee of Board
Members formed for NPA Management were adopted for the realization in non performing
loans.Every year the targets are set by the bank for the recovery of NPA which is monitored regularly
by the Regional Office and the Head Office.
Another top priority is given by the bank on realization of current loans as well as long outstanding
overdue loans and advances.The recovery in the FY is almost the same as that of the preceding year.
Recovery of the bank was around 79%
NPA BALANCE AT THE BEGINNING OF THE YEAR 1975721
RECOVERY DURING THE YEAR 736812
ADDITION DURING THE YEAR 716467
NPA’S AT THE END OF THE YEAR 1955376
Table 4.2 (Amount in Thousands)
ANALYSIS-
We can find out that the bank has a certain mode of operation and a fixed criteria in solving the most
important problem ie-NPA. Formulation of strategies and methods have been adopted by the bank for
the realization of non performing loans.

38. 38
Question 4: What are the ways through which the bank is providing better customer service?
ANSWER-
The Bank is now providing better customer service though
 Missed Call Alert facility for Balance Confirmation
 Chip based ATM cards for customers
 E-commerce facility on RUPAY cards
 Biometric Authentication system for staff for login in Bancs@24
 IT awareness training to staff members
 E-KYC
 Online ECS mandate
 NACH credit and debit facility
 351132 Rupay Card issued till date.
ANALYSIS-
We can find out that the Bank is finding out ways to upgrade its level of service and customer
experience through technical advancements.

39. 39
Question 5: Do the employees get some benefits of being a part of this organization?
ANSWER-
All the staff members in our organization are provided with gratuity benefits. Bank has taken an
insurance policy from LIC for payment of gratuity to employees and has provided fully for gratuity
liability.
Leave encashment/Provident Fund is also provided. The bank previously followed the practice of
payment of leave encashment on actual payment basis. The bank has now entered into an agreement
with LIC for payment of leave encashment of employees.
ANALYSIS-
Any employee who works in an organization needs some kind of financial stability and job benefits in
the form of gratuity,leave encashment,bonus etc. The Uttarakhand Gramin Bank is taking care of its
employees in the form of giving them job benefits,leave encashment.

40. 40
Question 6: Are the employees given training so that they can grow and improve their individual
as well as organisation’s objectives?
ANSWER-
The Bank provides training to its staff in diversified and specified courses for their skill
development.The training also helps in increasing their level of knowledge.State Bank Institute of
Rural Banking(SBIRD),Hyderabad, Bankers institute Of Rural Development(BIRD),Lucknow and
Reserve Bank of India College of Agriculture Banking(R.B.I.C.A.B),Pune provide specific training
programmes for the employees. Bank also organizes training programme for computer SME and NPA
management,SBI Life . These training programmes not only improve the personal but also the
organizational performance.
ANALYSIS-
Every year the employees are sent by the Bank to different training programmes which helps them
increase their level of performance and efficiency.This not only helps in improving the motivation of
the employees but also helps the organization to reach their financial targets.
No. Designation CAB,Pune SBIRD BIRD UGB
learning
centre
Others Total
1 Officers 2 - 12 48 78 140
2 Office
Assistant
- - - 30 - 30
3 Office
Attendant
- - - - - -
Total 2 12 78 78 170
Table 4.3

41. 41
Question 7:What is the contribution of Uttarakhand Gramin Bank in Banking Sector in the
state?
ANSWER-
The contribution of Uttarakhand Gramin Bank is very vital in the field of banking and finance in
Uttarakhand as it the sole bank in the State under the patronship of SBI which is working for the
development and upliftment of the rural life by assisting and financing the villagers for their
development in agriculture sector,to start small sector enterprises making them self reliant.
ANALYSIS-
The role of Uttarakhand Gramin Bank is of significant importance in Uttarakhand State.This Bank has
taken the banking services to the rural areas of the state and has helped in improving the living
standards of the people living in the rural areas. Banking service are now accessable and within the
reach of the rural people.

42. 42
Question 8: What was the reason of appointing business correspondents in the bank? In which
year did the bank appoint the maximum business correspondent?
ANSWER-
The reason for appointing the business correspondents in the bank is to spread the reach of Bank in
remote areas of the state where there was no branch of the bank. The bank appointed 254 business
correspondents in the financial year 2016-17 to provide banking services at locations where the
branches are not present. Business correspondents also help in enhancing the business of the
Bank.They are provided with commission depending upon their performance levels.
ANALYSIS-
Through this response, we can conclude that business correspondents play a very important role in
enhancing the working of the bank and also improving the reach of the bank. Business Correspondents
offer services at a lower cost than setting up a full branch. People of the remotest areas of are getting
benefitted by the appointment of Business Correspondents.

43. 43
Question 9: Kindly tell about the scheme of Government of India to provide insurance coverage
to farmers.
ANSWER-
Government of India launched Pradhan Mantri Fasal Bima Yojana on 13th January 2016 which was a
new crop insurance scheme.The scheme would let the farmers pay a very low premium to ensure their
crops.They would have to pay a premium of only 2% of the sum insured of Kharif Crops,1.5% for
Rabi Crops and 5% for Horticulture and Cash Crops.The difference between the premium paid by the
farmers and the premium fixed by the insurance companies will be subsidised and there will be no cap
on the maximum subsidy paid by the Government.
ANALYSIS-
This Government of India scheme benefitted the farmers in such away that they will get the insurance
of their crops at a very low rate, in a hassel free manner and they will become tension free and focus
on the growth of their crops.

44. 44
Question 10:What are the main loan disbursement sectors?
ANSWER-
The bank disburses loans to many different categories. Priority sector ie-rural ,SC/ST,
Minorities,Small Farmers,IRDP,SCP and NTG are the main categories which are disbursed
loans.Priority sector is the main contributor.
ANALYSIS-
Particulars Accounts
Advances to Priority Sector 103990
Advances to SC/ST 33794
Advances to Minorities 3987
Advances to Small and Marginal Farmers 52020
Advances to IRDP/SGSY 4454
Advances to SCP 835
Advances to NTG 20223
Table 4.4
Through this table we can easily identify that the bank’s main area of loan disbursement is to the
priority sector.

45. 45
QUESTIONNAIRE
1) What are the initiatives taken by the bank to raise awareness about the credit needs among the rural
areas?
2) What is the deposit mix of the bank?
3) What is the primary concern area of the bank?
4) What are the ways through which the bank is providing better customer service?
5) Do the employees get some benefits of being a part of this organization?
6) Are the employees given training so that they can grow and improve their individual as well as
organisation’s objectives?
7) What is the contribution of Uttarakhand Gramin Bank in Banking Sector in the state?
8) What was the reason of appointing business correspondents in the bank? In which year did the
bank appoint the maximum business correspondent?
9) Kindly tell about the scheme of Government of India to provide insurance coverage of farmers.
10) What are the main loan disbursement sectors?

46. 46
CHAPTER V-
CONCLUSIONS,RECOMMENDATIONS AND
SUGGESTIONS

47. 47
CONCLUSIONS-
In the following research, we can clearly conclude that the bank’s aim is to increase the reach and
awareness among the rural population. The bank uses the help of Mobile Vans, literacy camps to make
people more aware about their individual needs. Self Help Groups have also been established to
increase awareness.
According to the manager and financial reports, we can find out that the Savings Account now has the
highest deposit mix in the bank. It is of most importance to the bank.
The primary concern area of the bank is the area of NPA. The bank has applied various strategies and
implemented many methods to achieve the target of reducing the level of NPA.
To improve the customer relationship and customer satisfaction the bank has started to upgrade its
level of service by providing facilities such as E-KYC,ATM cards, missed call alerts, Biometric
authentication system for staff.
The bank not only tries to increase the level of satisfaction among the customers but also with the
employees. They provide job benefits, provide the with gratuity and leave encashment benefits.
Training is of the most importance ,the bank every year sends its employees to different training
programmes so that they can improve their skill set and increase their level of efficiency. Training
helps in improving the organizational levels.
The role of Uttarakhand Gramin Bank is of significant importance in Uttarakhand State. This Bank
has taken the banking services to the rural areas of the state and has helped in improving the living
standards of the people living in the rural areas. Banking service are now accessable and within the
reach of the rural people.
We can conclude that business correspondents play a very important role in enhancing the working of
the bank and also improving the reach of the bank. Business Correspondents offer services at a lower
cost than setting up a full branch. People of the remotest areas of are getting benefitted by the
appointment of Business Correspondents.

48. 48
The Government of India scheme Pradhan Mantri Fasal Bima Yojana benefitted the farmers in such a
way that they will get the insurance of their crops at a very low rate, in a hassel free manner and they
will become tension free and focus on the growth of their crops.
The bank’s main area of loan disbursement is to the priority sector. More than half of the loan
disbursed is for the priority sector.

49. 49
RECOMMENDATIONS AND SUGGESTIONS
Identification of Small Borrowers –
The shortfall in meeting the expected level of loans advanced can also be explained by several factors.
Some of them may be enumerated as under – The bank have been lending directly only to specified
weaker sections of rural society in tune with the objective for which these have been established. The
scope for direct lending by the UGB in their areas of operation is very limited. The staff of Bank have
to make special efforts to identify potential 'small' borrowers, who have the capacity to repay loans at
the relatively high rate of interest per annum from farming, small industry and small trading activities,
in which the borrowed funds were to be deployed.
More Emphasis on Personal Security Rather Than Physical –
As regards advances to weaker sections, it is suggested that the weaker sections of rural society or poor
borrowers (like artisans, craftman, Adivasis, Harijans, small trader, small entrepreneurs) should not be
required to furnish any security except personal security nor should they be provided with complicated
forms and procedures. The Uttarakhand Gramin Bank should ensure that the borrower is a genuine
person and that the loan given to him would be used for a productive purpose.
Development of Human Resources (Staff Training) –
The staff of bank should be trained for prompt recovery of loans. They should be provided training of
behavioural sciences. The staff should be customer friendly and conversant with the local
environment. Human resource i.e. collective man power is the most important asset of commercial
organisation more so in case of banks which is a highly personalised service industry. Human resource
development is the prime need in case of UGB. Various subsystems of Human resource development
like performance appraisal training, career planning, employees counselling, personnel audit,
personnel research, potential appraisal etc. should be adopted so as to give maximum job satisfaction
to the employees. This will inculcate the atmosphere of mutual trust, proactivity and faithfulness
among the bank employees.

50. 50
Staff Compensation –
The compensation package for the staff of UGBs should be brought at par with the other banks. The
staff of the UBGs should be adequately trained and remunerated. It will be difficult to maintain two
types of payscales in the same area for a long time.
Simplification & Standardisation of Loan Application –
Bank should simplify and standardize their loan applications and documentation formalities with a
view to reducing the number of required documents.
Increase its reach-The Bank should increase its reach among the rural masses. They should organize
more literacy camps,educate people more through Mobile Vans and also start advertising in the rural
areas.
LIMITATIONS OF THE STUDY:
 There was not enough time to collect as much information required due to time
constraint.:
 It was difficult to personally visit all employees due to time .
 The study partially depends on the financial data collected from the published financial
statements of Banks
 The Manager due to his busy schedule was not able to give proper time to the research
questions.

51. 51
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