A Study of Punjab State Cooperative Bank Chandigarh with Special Reference to Lending Practices

The Indian Banking industry, which is governed by the Banking Regulation Act of India, 1949 can be classified into two major categories, non-scheduled banks and scheduled banks. Scheduled banks having paid-up capital and reserve of not less than Rs. 50,000,000 are further classified as State co-operative Banks & Commercial Banks. Non-Scheduled Banks are not included in the second schedule of the Banking Regulations Act, 1965. They are further classified as Central co-operative banks and primary credit societies & Commercial Banks. The cooperative banks in India play an important role even today in rural financing. The Businesses of cooperative bank in the urban areas have increased phenomenally in recent years due to the sharp increase in the number of primary co-operative banks. Cooperative Banks in India registered under the Co-operative Societies Act is regulated by the RBI. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965. In this paper an attempt is made to study the lending practices at PUNJAB STATE COOPERATIVE BANK, Sector – 34, Chandigarh