Final

A STUDY ON CREDIT MANAGEMENT IN
PURASAWALKAM CO-OPERATIVE BANK LIMITED (No. 10700)

Submitted by
SUNDARAM.V
(REGNO: 3511310558)

Of
SRM FACULTY OF MANAGEMENT
Submitted in partial fulfillment of the requirement for the award of degree
MASTER OF BUSINESS ADMIMISTRATION
Under the guidance of
Mrs. P POONGUZHALI

DEPARTMENT OF MASTER OF BUSINESS

ADMINISTRATION
SRM SCHOOL OF MANAGEMENT

SRM UNIVERSITY

SRM NAGAR, KATTANKULATUR, KANCIPURAM DISTRICT 603203

BONAFIDE CERTIFICATE

Certified that this project report titled A STUDY ON CREDIT MANAGEMENT is
the bonafide work of Mr. V.SUNDARAM who carried out the research under my supervision.
Certified further, that to the best of my knowledge the work reported here in does not form
part of any other Project report or dissertation on the basis of which a degree or award was
conferred on an earlier occasion on this or any other candidate.

SIGNATURE OF THE HOD SIGNATURE OF THE GUIDE
Mrs. P Poonguzhali
ASSISTANT PROFESSOR

DECLARATION

We hereby declare that the project report titled A STUDY ON CREDIT
MANAGEMENT is the product of my sincere effort under the guidance of
Ms. S. THANALAKSHMI, SRM University. This project report is being submitted by
me to SRM University, Chennai, for the partial fulfilment of the course MBA, and
the project has not been submitted to any other educational institutions for any
other purpose

Place: Chennai SUNDARAM V
Date:

ACKNOWLEDGEMENT

A project work is the most important part of the professional career it helps to utilize both the
theory and practical knowledge gained throughout the learning period. It is rightly said When
you are inspired by some great purpose, some extraordinary project, all your thoughts break their
bonds I take this opportunity to thank all who encouraged us to involve in such good work.
I would like to give special thanks to Dr. Jayshree Suresh, Dean, SRM School of Management,
who gave me the great opportunity to learn and enhance my skills in SRM.
My sincere thanks to Mr. A. Alexander (Senior Officer), who was my project guide in the
organization. I thank him for allowing me to take up this project and helping me throughout the
project for his invaluable guidance, inspiration, support and uninterrupted supervision and
monitoring of my activities
I would also like to thank Mr. M. Anandakrishnan (General Manager), for her support and
invaluable time and providing me with deep insights and inputs in enabling me with all the tools
and techniques to help me in the project.
I thank Ms. S. THANALAKSHMI my project guide, for his proficient and wholehearted support
for guiding me to complete my thesis smoothly. Needless to add that without his advice and
support the thesis would never been completed.
I express my thanks to all staff members who have helped us in many ways guiding us through
the right path to complete the work rapidly and successfully.
Last but never the least I would like to thank my parents for their constant support and
encouragement .I would like to say a special thanks to friends for their feedback and suggestion
about the project throughout.

TABLE OF CONTENTS

Chapter No TOPIC Page No
Letter from Organizations i
Acknowledgement ii
List of Tables iii
CHAPTER 1 Introduction
1.1 Introduction 1
1.2 Bank Profile 4
1.3 Review of Literature 13
1.4 Objective of the Study 15
1.5 Limitations of the Study 16
CHAPTER 2 RESEARCH METHODOLOGY
2.1 Research Methodology 17
2.2 Types of Research 18
CHAPTER 3 DATA ANALYSIS AND INTERPRETATION 19
CHAPTER 4 FINDINGS SUGGESTIONS AND CONCLUSION
4.1 Findings of the Study 29
4.2 Analytical Tools 30
4.3 Ratio Analysis 30
4.4 Trend Analysis 41
4.5 Findings of Analytical Tools 44
4.6 Suggestions 47
4.7 Conclusion 48
CHAPTER 5 SUMMARY 49
5.1 Bibliography 50
5.2 Questionnaire 51

LIST OF TABLES

S.NO PARTICULARS PAGE NO
Table 3.1 Preference by Customers for Loans 19
Table 3.2 Range of Loan Amounts 20
Table 3.3 Preferable Term of Loan 21
Table 3.4 Reason for taking loan in Co-op. Bank 22
Table 3.5 Average Processing time for Loan 23
Table 3.6 Facilities provided by co-op. Bank 24
Table 3.7 Customer service 25
Table 3.8
Satisfaction of the customers with the Amount and Period
of Installment
26
Table 3.9 Preferable bank for borrowing 27
Table 3.10
Customers opinion to refer co-op. bank to their friends and
Relatives
28
Table 4.1 Current ratio 34
Table 4.2 Liquid ratio 36
Table 4.3 Absolute liquid ratio 38
Table 4.4 Fixed asset ratio 40
Table 4.5
Trend analysis for year 2010 -2014

42-43

INTRODUCTION OF CO-OPERATIVE BANKS

Co-operative banks are small-sized units organized in the co-operative sector
which operate both in urban and non-urban regions. These banks are traditionally
centred on communities, localities and work place groups and they essentially lend
to small borrowers and businesses. The term Urban Co-operative Banks (UCBs),
though not formally defined, refers to primary cooperative banks located in urban
and semi-urban areas. These banks, until 1996, could only lend for non-agricultural
purposes. As at end of March 2011, there were 1,645 UCBs operating in the
country, of which majority were non-scheduled UCBs. Moreover, while majority
of the UCBs were operating within a single State, there were 42 UCBs having
operations in more than one State. However, today this limitation is no longer
prevalent. While the co-operative banks in rural areas mainly finance agricultural
based activities including farming, cattle, milk, hatchery, personal finance, etc.
along with some small scale industries and self-employment driven activities, the
co-operative banks in urban areas mainly finance various categories of people for
self-employment, industries, small scale units and home finance. These banks
provide most services such as savings and current accounts, safe deposit lockers,
loan or mortgages to private and business customers. For middle class users, for
whom a bank is where they can save their money, facilities like Internet banking or
phone banking is not very important. Although they are not better than private
banks in terms of facilities provided, their interest rates are definitely competitive.
However, unlike private banks, the documentation process is lengthy if not
stringent and getting a loan approved quickly is rather difficult. The criteria for
getting a loan from a UCB are less stringent than for a loan from a commercial
bank. The cooperative credit structure in India is almost a century old. The
cooperatives were the only institutions providing institutional credit to agriculture
till the commercial banks emerged on the scene in a big way, particularly, after
their nationalization in 1969 and social banking became their major thrust. Until
the late sixties, farmers and the rural borrowers could look to only one institutional
credit agency in the cooperative sector to meet all their credit needs whether it
related to seasonal agricultural operations, investment in land or redemption of
debts. For historical reasons, two parallel wings of cooperative credit institutions
have come into existence and developed, one for purveying short-term and
medium term credit to the cultivators and the other for dispensing long-term credit
at first for debt redemption and subsequently for investment in agriculture.
Cooperative credit institutions have been accredited with playing a significant role
in the deployment of credit for agriculture and rural sector. Credit cooperatives
today cover 69 % of the rural credit outlets and their share in rural credit works out
to about 45 % of the total credit for rural sector in the country. In purveying
production and investment credit, it accounts for 57 % and 29 %, respectively. The
Co-operative banks are an important constituent of the Indian Financial System,
judging by the role assigned to them, the expectations they are supposed to fulfill,
their number, and the number of offices they operate. The co-operative movement
originated in the West, but the importance that such banks have assumed in India is
rarely paralleled anywhere else in the world. Their role in rural financing continues
to be important even today, and their business in the urban areas also has increased
phenomenally in recent years mainly due to the sharp increase in the number of
primary co-operative banks. Co-operative bank regulated by Reserve Bank of
India, NABARD & Apex bank. The co-operative banks in rural areas mainly
finance agricultural based activities including farming, cattle, milk, hatchery,
personal finance etc. along with some small scale industries and self-employment
driven activities, the co-operative banks in urban areas mainly finance various
categories of people for self-employment, industries, small scale units, home
finance, consumer finance, personal finance, etc. Though registered under the Co-
operative Societies Act of the Respective States the banking related activities of
the co-operative banks are also regulated by the Reserve Bank of India. They are
governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative
Societies) Act, 1965.The financial performances of Urban Cooperative Banks
(UCBs) improved in 2010-11 though there are some concerns with regard to some
of the UCBs reporting negative CRAR. Within the rural cooperative sector, State
Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs)
reported profits but the ground level institutions, i.e., Primary Agricultural Credit
Societies (PACS) continued incurring huge losses. The financial performance of
long term cooperatives was found to be even weaker than their short term
counterparts. Also, it was observed that the branch network of cooperatives,
though widespread across the country, continued to be concentrated in certain
regions. Moreover, the network of cooperatives was not broad based in the north-
eastern region of the country. This suggests that efforts need to be taken to improve
banking penetration in the north-eastern part of the country along with improving
the financial health of the ground level cooperative institutions.

COMPANY PROFLIE
PURASAWALKAM CO-OPERATIVE BANK
The Bank was started by the Association of 35 members with a paid-up share
capital of Rs.63/- and the Bank was registered on 25.11.1924. The Bank was
started functioning on 26.12.1924.The bank had celebrated its Golden Jubilee in
the Year 1976 for which the Honble Minister for Cooperation and Honble
Minister for Health participated in the function. The Bank had the own building at
No. 227, Purasawalkam High Road, Chennai-600 007. On 1.4.1959 at a cost of Rs.
33000/- and later a sum of Rs. 17.50 lacs spent towards remodeling and renovation
and opened a new building during the year 1998.
The activities of the Bank were mainly confined to granting of Loans and advances
on Mortgage of immovable property till the year 1966. Its activities were
afterwards diversified to granting loans on to Small Scale Industries, Self -
Employed persons, Petty Traders, Transport Operators and Business people and
Jewel Loans to lower & middle class borrowers.

The main objects of the Bank
To borrow funds from member or others to be utilized for loans to member for
useful purposes.
To act as the agent for Joint purchase of the domestic and other requirements of
its members to undertake collection of bills drawn, accepted or endorsed by
members, constituents and to discount cheques of approved members.
Generally to encourage thrift, self help and co-operation among the members.
To undertake the financing of small scale industries
To undertake the issue of guarantee on behalf of constituents under proper safe
guards.

SHARE CAPITAL
The authorized share capital of the Bank is Rs.3,00,00,000 of 3,00,000 Share of
Rs.100/- each.
The Bank is collecting the following types of deposits from members and Non-
members.
FIXED DEPOSIT
RECURRING DEPOSIT
SAVINGS BANK ACCOUNT
CURRENT DEPOSITS
The Bank had issued the following types of loans and advances at present.
DEPOSIT LOAN
JEWEL LOAN
MORTGAGE LOAN
SURETY LOAN
PETTY TRADERS LOAN
SELF EMPLOYED PERSONS LOAN
CASH CREDIT TO S.S.I.
ROAD TRANSPORT OPERATOR LOAN
SSI TERM LOAN
LOANS TO SELF HELP GROUP
WOMEN ENTERPRENEURS
TABCEDCO AND TAMCO
MATERNITY LOAN
LOANS TO PHYSICALLY HANDICAPED PERSONS

GENERAL
The Bank was awarded shields 6 times as a mark of good working Urban Bank
by Govt. of Tamil Nadu.
The Bank has been classified continuously as A Class bank in Audit since
1982.
The Bank had opened 4 branches at Padi, Mogappair, MKB Nagar and
Nanganallur Branches in sub-urban areas. Safe Deposit Locker facilities are
available in H.O. and its branches.
Now, the bank account in Head Office has been fully computerized and in due
course of time, Branches will also be computerized.
The comparative statements for the past years are shown below.
Rs. In Lakhs
Particulars 2006-07 2007-08 2008-09 2009-2010 2010-2011
Share
Capital
149.02 150.25 153.62 150.73 139.45
Deposits 4270.62 3890.38 3807.49 3612.59 3173.99
Borrowings 0.27 0.38
Working
Capital
4420.43 4040.91 3961.11 3778.80 3313.82
Loans 3094.28 2831.72 2868.45 2749.71 2285.52
Investment
s
1320.95 1319.14 1409.74 1418.91 1534.28
Net Profit (+) 6.43 (+) 51.39 (+) 10.54 (+) 4.62 (+) 16.25

The Bank also entered into Trading with Govt. of India/ State Govt.
Securities by purchasing and selling the same and earned good profit.
The Bank is having Locker facility for the customers.
The Bank is issuing Demand Drafts to public all over the State of Tamil
Nadu.
The Bank is rendering essential Banking facilities to the customers.
The Bank was awarded shield as a mark of good working urban bank during the
coop year 2009-2010. The Bank has been classified continuously as A Class Bank
in Audit since 1982. The Bank had opened 4 branches at Padi, Mogappair, M.K.B.
Nagar and Nanganallore, Sub urban areas with safe deposit locker facility. The
bank accounts in head office and branches have been fully computerized through
common software.
The comparative financial statement for the past three years shown below.
Rs. In Lakhs
Particulars 2011-12
Rs.
2012-13
Rs.
2013-2014
Rs.
Share capital 114.92 112.90 109.94
Deposits 3841.89 4751.15 5251.97
Loans issued 4090.81 5048.88 5994.73
Loans outstanding 2798.93 3512.49 4007.23
Overdue 265.00 270.00 280.00
% of loans 9.46% 7.68% 7%
Working capital 3956.81 4864.05 5401.91
Net Profit (+) 21.82 (+) 11.97 Audit not yet
Finalized
No. of member 32811 32639 31839

CASH CREDIT (HYPOTHECATION) LIMITS TO TRADERS
The bank had not taken up the activity in a big way though there was enough
potential in its area of operation. There were only a few cased of CC limits
to individuals.
Stock was not verified by the bank official on periodical basis.
Stock statements were not obtained periodically to ensure margin.
Neither Drawing Power Register maintained nor drawing power was worked
out while allowing operations in CC Limit
Fresh documents and DPN were not obtained at the time of renewal of CC
limits.
Due to lack of pre sanction appraisal, monitoring, supervision and post
disbursement follow up, certain CCL accounts had become NPA and bank /
branch had not initiated action to recover the overdue.
LOAN AGAINST SECURITY
Product - RSCB loan Against Security
The owner doesnt have to sell his securities like NSC/KVP.
What all he has to do is pledge his owned securities in favor of bank.
A current account will be opened and overdraft limit will be sanctioned.
Interest will be charged only on the amount withdrawn and for the time span
utilized.
Quantum of Loan
With RSCB Loan against Security, you can get a loan up to 70% of value
determined on the basis of the securities pledged.
Repayment Period and Rate of Interest
Maximum period up to the maturity date of the security and Interest rate
@13.00% p.a. on quarterly rest.

MORTAGE LOAN
Products - RSCB Mortgage loan
Mortgage Loan provides the owner of residential or commercial property to
leverage on the value of the property.
Mortgage Loan is an easy way to unlock the hidden value of your property. This
multi-purpose loan, make available funds at your disposal to use as you wish to
utilize.
Mortgage Loan is provided for many personal requirements of the customer
viz. emergent requirements for Expansion of business, house hold activities,
childrens tuition & higher Education fees, religious ceremony, renovation of
home etc.
Quantum of Loan
With RSCB Mortgage loan, you can get a loan suited to your needs. The loan
amount depends on your repayment capability and is restricted to a maximum
of 50% of the cost of the property. Repayment capacity takes into
consideration parameters such as income, age, number of dependents,
spouse's/Son's/Daughter in-law's income, assets, liabilities, stability, continuity
of occupation and savings history etc.
Rate of Interest
Fixed rate of Interest.
Interest levied on monthly rest on reducing balance method and added to
principal outstanding.
Interest rate @11.00% for loan amount up to Rs.2,00,000/- and @11.50% for
loan amount more than Rs.2,00,000/-
Pre-closure charges @1% of the outstanding loan balance.
Repayment Period
Maximum 10 years subject to restriction of age of borrower/date of retirement

MISSION STATEMENT
Co-operative Bank Corporate Mission Is to Become A Strong And Competitive
Cooperative Banking Network Which Offers Innovative Financial Product Along
with Varied Range Of Services To Serve Semi-Urban Masses With Rejuvenated
Short-Term Cooperative Credit Structure To Serve The People Of Chennai.

REVIEW OF THE LITERATURE

Various studies conducted and numerous suggestions were sought to bring
effectiveness in the working and operations of financial institutions. Narsimham
Committee (1991) emphasized on capital adequacy and liquidity, Padamanabhan
Committee (1995) suggested CAMEL rating (in the form of ratios) to evaluate
financial and operational efficiency, Tarapore Committee (1997) talked about Non-
performing assets and asset quality, Kannan Committee (1998) opined about
working capital and lending methods, Basel committee (1998 and revised in 2001)
recommended capital adequacy norms and riskmanagement measures. Kapoor
Committee (1998) recommended for credit delivery system and credit guarantee
and Verma Committee (1999) recommended seven parameters (ratios) to judge
financial performance and several other committees constituted by Reserve Bank
of India to bring reforms in the banking sector by emphasizing on the improvement
in the financial health of the banks. Experts suggested various tools and techniques
for effective analysis and interpretation of the financial and operational aspects of
the financial institutions specifically banks. These have focus on the analysis of
financial viability and credit worthiness of money lending institutions with a view
to predict corporate failures and incipient incidence of bankruptcy among these
institutions.
Bhaskaran and Josh (2000) concluded that the recovery performance of co-
operative credit institutions continues to unsatisfactory which contributes to the
growth of NPA even after the introduction of prudential regulations. They
suggested legislative and policy prescriptions to make co-operative credit
institutions more efficient, productive and profitable organization in tune with
competitive commercial banking. Jain (2001) has done a comparative
performance analysis of District Central Co-operative Banks (DCCBs) of Western
India, namely Maharashtra, Gujarat and Rajasthan and found that DCCBs of
Rajasthan have performed better in profitability and liquidity as compared to
Gujarat and Maharashtra. Singh and Singh (2006) studied the funds management
in the District Central Co-operative Banks (DCCBs) of Punjab with specific
reference to the analysis of financial margin. It noted that a higher proportion of
own funds and the recovery concerns have resulted in the increased margin of
the Central Co-operative Banks and thus had a larger provision for non-
performing assets. Mavaluri, Boppana and Nagarjuna (2006) suggested that
performance of banking in terms of profitability, productivity, asset quality and
financial management has become important to stable the economy. They found
that public sector banks have been more efficient than other banks operating in
India. Pal and Malik (2007) investigated the differences in the financial
characteristics of 74 (public, private and foreign) banks in India based on factors,
such as profitability, liquidity, risk and efficiency. It is suggested that foreign banks
were better performers, as compared to other two categories of banks, in general
and in terms of utilization of resources in particular. Campbell (2007) focused on
the relationship between nonperforming loans (NPLs) and bank failure and
argued for an effective bank insolvency law for the prevention and control of NPLs
for developing and transitional economies as these have been suffering severe
problems due to NPLs. Singla(2008) emphasized on financial management and
examined the financial position of sixteen banks by considering profitability,
capital adequacy, debt-equity and NPA. Dutta and Basak (2008) suggested that
Co-operative banks should improve their recovery performance, adopt new
system of computerized monitoring of loans, implement proper prudential norms
and organize regular workshops to sustain in the competitive banking
environment. Chander and Chandel (2010) analyzed the financial efficiency and
viability of HARCO Bank and found poor performance of the bank on capital
adequacy, liquidity, earning quality and the management efficiency parameters.
NEED OF THE STUDY
Financial statement analysis is used to identify the trends and relationship between
financial statement items. Both internal management and external users (such as
analysts, creditors, and investors) of the financial statement need to evaluate a
companys profitability, liquidity and solvency. The most common methods used
for financial statement analysis are trend analysis, common-sizes statement and
ratio analysis. These methods include calculations and comparisons of the results
to historical company data, competitor of industry average to determine the
relatives strength and performance of the company being analyzed.

OBJECTIVES OF THE STUDY
To assess the liquidity and short-term solvency positions of the bank
To assess the present and future profitability of the bank.
To evaluate the operational efficiency of the bank.
To assess the financial stability of the bank.
To know the lending practices of cooperative banks in India.
To know different type of loans preferred by different sets of customers.
To know the satisfaction level of the customers from Banks lending policies
LIMITATIONS OF THE STUDY
The number of respondents is restricted to only 120.
Personal bias is possible because of direct questions.
The study is limited only to PURASAWALKAMCO-OPERATIVE BANK
at Chennai.
Hesitation on the part of employees was observed in giving the right feedback
about the company.
Some errors might have occurred due bias of the respondents.
The data for study mainly based on a single bank.
As majority of the customers are employees of the bank, they might be biased
in giving the information
The time period of the research was limited.

RESEARCH METHODOLOGY

For every comprehensive research a proper research methodology is indispensable
it has to be properly conceived. The methodology is followed by the research
design refers to pre-planning of what a researcher does in his study. The design
adopted in the study comes under exploratory and evaluator research. Since the
data collected from the financial Statement of the Bank is analysed under various
financial and tactical tools.

This Project is based on the description analysis of Primary Data is analysed with
the survey/interview conducted by me with the bank customers about the Co-
operative Banking Functions with a structured questioner and Secondary Data is
analysed with Comparative Statement and Common Size Statement by deriving
Financial Statement from the Bank.
Type of Research
Descriptive research is used in this study in order to identify the lending practices
of bank and determining customers level of satisfaction. The method used was
questionnaire and interview of the experienced loan officers.
Collection of data:
Primary Data
Observation Method
Interview Method
Structured Questionnaire
Secondary Data
Annual reports of the bank
Manual of instructions on loans and advances
Books
Articles and Research Papers
Internet
SAMPLING UNIT
The study population includes the customers of bank and sampling unit for study
was Individual Customers.
SAMPLING SIZE
50 Respondents

DATA ANALYSIS AND INTERPRETATION

Table 1:

Preference by
customers for loans

No. of Respondents Percentage (%)
Jewel Loan 18 36 %
Mortgage Loan 15 30 %
House Loan 06 12 %
Personal Loan 08 16 %
Vehicle Loan 03 06 %

Figure 1: Preferences of the customers for the loans
0
5
10
15
20
25
30
35
40
45
Jewel Loan Mortgage
Loan
House Loan Personal Loan vehicle loan
No. of Respondents
No. of Respondents
Present study reveals that majority of the respondents have taken Jewel Loans and
Mortgage Loans and less respondents prefer House, Personal and Vehicle Loans.

Table 2:

Range of loan amounts No. Of Respondents Percentage (%)
Less than 20,000 04 08 %
20,000 50,000 06 12 %
50,000 1 Lakh 30 60 %
More than 1 Lakh 10 20 %

Figure 2: Range of the amount of loans

0
10
20
30
40
50
60
70
Less than 20,000 20,000-50000 50,000-1 Lakh More than 1 Lakh
No. Of Respondents
No. Of Respondents
Present Study reveals that 8 % people prefer Loan less than 20,000, 12 %
respondents prefer 20,000 to 50,000,60 % prefer 50,000 to 1 Lakh and 20% of the
respondents prefer more than 1 Lakh.

Table 3:

Preferable term of loan No. Of Respondents Percentage (%)
Less than 1 Year 08 16 %
1 3 Years 18 36 %
More than 3 Years 24 48 %

Figure 3: Preferable term of loan

0
10
20
30
40
50
60
Less than 1 Year 1-3 Years More than 3 Years
No. Of Respondents
No. Of Respondents
Study shows that 48 % respondents take Loan for More than 3 Years, 36 % take
loan for 1 to 3 Years and 16% take loan for the period of less than 1
Table 4:

Reason for taking loan
in Co-op. Bank
No. Of respondents Percentage (%)
Reasonable rate of
interest
22 44 %
More schemes 08 16 %
Less formalities 08 16 %
Easy re-payment 10 20 %
Referred 02 04 %

Figure 4: What prompted the customers to take loan from Co-op Bank

0
5
10
15
20
25
30
35
40
45
50
Reasonable
ROI
More
schemes
Less
formalties
Easy re-
payment
Reffered
No. Of respondents
No. Of respondents

Study reveals that 44 % take Loan because banks provide Reasonable rate of
interest, 20 % take Loans because of Easy re-payment and other respondents take
loan because of More schemes, Less formalities and Referred.

Table 5:

Avg. Processing time
for loan
No. Of Respondents Percentage (%)
1 3 Days 15 30 %
Less than 7 Days 18 36 %
Between 7 14 Days 12 24 %
More than 14 Days 5 10 %

0
5
10
15
20
25
30
35
40
1-3 Days Less than 7-days Between 7-14
Days
More than 14
days
No. Of respondents
No. Of respondents
Figure 5: Average time taken for the processing of the loan
Study reveals that 30% respondents says that Average time taken for processing of the Loan is 1
to 3 Days, 36 % says that it takes Less than 7 Days, 24 % says that it takes Between 7 to 14 Days
and 10 % says that it takes More than 14 Days.

Table 6:
Facilities provided by
Co-op. Bank
Above Average 28 56 %
Average 15 30 %
Below Average 07 14 %

0
10
20
30
40
50
60
Above Average Average Below Average
No. of Respondents
No. of Respondents

Figure 6: Ranking of the facilities provided by the Co-op. Bank

Study shows that 56 % of the respondent says that Facility provided by the bank
are Above Average, 30 % say that its Average and 14 % says that its Below
Average.

Table 7:

Customer Service No. Of Respondents Percentage (%)
Excellent 12 24 %
Good 25 50 %
Average 10 20 %
Poor 3 06 %

0
10
20
30
40
50
60
Excellent Good Average Poor
No. Of Respondents
No. Of Respondents
Figure 7: Customers ranking for service of the bank

Study shows that 52% of the respondents says that customer service of the bank is
good, 24% says that it is excellent and another 24 % says its average and only 2 %
says its poor.
Table 8:

Satisfaction with
Amount and Period of
Installment
Satisfied 38 76 %
Not Satisfied 12 24 %

0
10
20
30
40
50
60
70
80
Satisfied Not Satisfied
No. Of Respondents
No. Of Respondents

Figure 8: Satisfaction of the customers with the Amount and Period of Installment

Study reveals that 76 % are Satisfied with the Amount and Period of Installment
and 24 % are Not Satisfied.

Table 9:

Preferable Bank for
Borrowing
Public Bank 6 12 %
Co-op. Bank 32 64 %
Private Bank 12 24 %

Figure 9: Preferable bank for borrowing
0
10
20
30
40
50
60
70
Public Bank Co-op. Bank Private Bank
No of respondents
No of respondents

Study shows that 64 % of the respondents will prefer loans from Co-operative
Bank, 24 % from the Private Bank and 12 % from the Public Bank.

Table 10:

Will u refer Co-op. Bank
to your Friends and
Relatives
Always 38 76 %
Sometimes 10 20 %
Never 02 04 %

0
10
20
30
40
50
60
70
80
Always Sometimes Never
No Of Respondants
No Of Respondants

Figure 10: Customers who would like to refer the Co-op. Bank to their Friends and Relatives

76 % of the respondents would like to refer the bank to their Friends and
Relatives which shows that they are satisfied from the services and lending
practices of the bank.

FINDINGS OF THE STUDY

32% as per the study of the respondent were having housing loan from this
bank.
64% as per the study of the people prefer to take long term loan which is
more than 3 years.
There is a very simple procedure followed by bank for loan.
Easy repayment and fewer formalities are the main factors determining
customers selection of loans.
Quality of services provided by the staff is satisfactory because bank is
catering to a small segment only and the customers are properly dealt with it.
Customers are satisfied with the mode of repayment of installments.
Average time for the processing of loan is less i.e. approx 7 days.

ANALYTICAL TOOLS
Comparative Statement Analysis
Common Size Statement Analysis

STATEMENT OF COMPARATIVE BALANCE SHEET
ANALYSIS

A statement which compares financial from different periods of time. comparative
statement lines up a section of the income statement, balance short statement with
its corresponding a section period It can also be used to compare financial data
ever time this the trend in the financials.
Analysts like com statements they show the effect business decisions have en a
company's bottom line Analysts tends evaluate the performance if management
new lines of business and new products and statement instead of having to through
individual financial statements from different periods of time when comparing
different companies, a comparative statement can show businesses react to market
conditions affecting an entire industry. older amounts appear further from the
account as the elder amounts a less important. Providing the aments from an gives
the reader of the balances sheet a point of reference something to which the recent
amounts can be compared
Comparative balance sheet
A comparative balance is a list of the preview years shows anywhere year 10 yen
of financial The in maintain is presented in comparative the flam be while reading
information A common e sheet shares a company's assets, liabilities shareholders ,
which is the and assets we respectively.
Reveals Net Worth
The importance of a balance sheet in on is that a meals the company's net work and
shareholders enquiry. This is important for investors as they want to invest in a
company that has net worth and owns assets The company's net worth is the total
worth of the company given the ex assets and lablities. The net work is calculated
by subtracting the fun the value of assets.
Status from Previous Years
The main purpose of the comparative balance is the financial progression to
investor, shareholders and the Security and Exchange Com Each figure in the
balance sheet is compared how we the company is managing paying off liabilities
and balancing the total net work and shareholders' . The comparative balance sheet
holds interest fir trial investors and shareholder because it shows either growth or
decrease in Internal Use
Common Size Balance Sheet
A balance sheet that displays both the numbers value of all entries and the
percentage
each entry is relative the ital value of related. a common balance sheet, an asset is
stockholder equity Common size balance changes to a balance sheet over multiple
time by a in addition the entry real terms compared the previous year, whether the
inventory represents the same Common size balance sheets make easier analyze
changes company balance sheet over multiple time periods By a in addition the
value, analysts can if the actual compared the period year. whether the of total sue
balance sheets are a type financial report assets of in GAAP, are we business
owned la order to create the balance sheets business must first determine its
business then adds a column its that will contain the percent item compared to the
total assets major entry type the sheet is then divided by total value of its category.
Financial Statement Analysis
Meaning
Records that outline the financial activities of a business, an individual or any other
entity. Financial statements are meant to present that financial information of the
entity in question as clearly and concisely as possible for both the entity and for
readers. Financial statement for business usually include: income statements;
balance sheet, statements of retained earnings and cash flow, as well as other
possible statements.
It is a standard practice for business to present financial statements that adhere to
generally accepted accounting principles (GAAP), to maintain continuity of
information and presentation across international bores as well, financial
statements are often audited by government agencie, accountants, firms, etc. to
ensure accuracy and for tax, financing or investing purpose. Financial statements
are integral to ensuring accurate and honest accounting for business and
individuals alike.
A financial statement may be defined as an organized collection of accounting
information in a systematic, logical and consistent manner with the users of
accounting information. According to the Kohler, Finanical statements are those
statements which show both the performance and the financial position. They
indicate Balance Sheet, Income statements, Fund statements or any supporting
statement or other presentation of financial.
Nature Of Financial Statement
It is very known that the financial statements basically refer to balance sheets and
Income statements. Of course these two basic statements are supported by a
number of schedules, supplementary statements, explanatory notes, etc. Therefore
all these are financial statements. They show with supporting figures, earn or loss
incurred during an accounting period and also the assets, liabilities and capital at
the end of the last day of the accounting period. These statements reflect a
combination of recorded facts, accounting convention and personal judgments. It
is therefore obvious that the figure included in the financial statements is
influenced by these factors. They are
Recorded Facts
Accounting Convention
Accounting Assumption or Concepts
Personal Judgment

RECORDED FACTS
Financial statements contain the fact relating to the business transaction already
recorded in the book of accounts. The unrecorded facts, whatever important they
might have not included in financial statement because they are not recorded in the
books.
Financial Statements contain the fact relating to in the book of accounts. The
unrecorded facts, what not included in financial Statements. The examples are
human in these statements because they are not recorded in the books.
ACCOUNTING CONVENTION
Accounting convention implies certain accounting the long user. In other words
they refer usages and c economic life of human being which have been generally
accounting principles. For examples, on account of convention for expected losses
but expected profits are ignored. It means of the firm is better than what is shown
in the financial statements
ACCOUNTING ASSUMPTION OR CONCEPTS
GAAPs or Generally Accepted Accounting Principle are in form of guidelines and
rules which are to be used as standard for recording in the business transaction in
the books 'accounts and their fair presentation in the financial prepare in
conformity with GAAPs, these GAAPs assumption. For examples Inventory
valuation states those year-end inventories are to be valued at lower of cost or
market price which means the value of year-end inventory which appears the
financial statements is influenced by these principles.
PERSONAL JUDGMENT
It is true that Generally Accepted Accounting Principles and concepts are followed
in preparing financial judgment of the accountant. For examples, the choice of
selecting methods of depreciation.
LIMITATIONS OF FINANCIAL STATEMENT
Past financial performance, good or bad, is not necessarily an accurate predictor of
future performance.
Financial statements do not tell you about changes in senior management,
Financial statements do not tell you about the loss of major customers,
Financial statements do not tell you about the competitive environment in which
the company operates.
Financial statements do not disclose the company's future prospects, or the results
of its expenditures on Research and Development, or new product introductions,
Or new marketing campaigns, or new pricing strategies, or the customer's recent
decision to enter or exit a particular market segment.
The more out-of-date a customer's financial statements are, the less reliable they
arc as a risk management tool.
Without reading the Notes to the financial statements, credit managers
cannot get a clear idea of the risk they are evaluating,
Unaudited statements may or may not follow Generally Accepted
Accounting principles, and if they do not follow GAAP relying on them
could be a serious mistake.
Financial statements can be altered legally by adjusting certain types of
reserves.
IMPORTANCE OF FINANCIAL STATEMENT
The term Financial Statement doesn't make sense at first. But, numbers are for
counting while statements need words, so how could these two mix together?
But when seen Money Statement, then suddenly its important matters.
Not only is it important for you but for the management and stockholders as well
. its important for management because financial statement the company
success and competence, where stockholders refer to the company financial
statement or not invest in a company financial statements know whether or not
to invest in a company In other.
Financial statements hold the secrets of a company. Aside from stating whether
the company they also provides clues on where the management might find more
resources to boost its revenue. In addition Financial Statements past and potential
Its equally important for business owners to understand financial statements to
know if their business is earning It wouldnt be too wise to rely solely on the
accountant to paint the business Financial Statements.
But whether a Manager. Stockholder, Entrepreneurs, Learning the language of
financial statement to know if their business would be too wise to that its to
understand your company, financial the language or that it's helpful to understand
your company financial health and behavior.
This is knowledge that you can make convincing proposals and requests. Arm your
arguments with hard fact and will be to easier o prove how you proposal can have
a bearing on the company Financial statements.
Understanding Financial Statements is preparing for something that is sure to come
around. By the time you encounter income statements, you'll be able to analyze,
interpret. And challenge numbers that you would otherwise be quiet in a meeting.
OBJECTIVES OF FINANCIAL STATEMENT

1. Assessment of Past Performance
Past performance is a pod in of future performance Investor or creditors are
interested in the trend of past sales cost of goods sold operating expenses nsae.cah
flows and return on investment These trends offer a means for judging
management performance and are possible indicator of future performance.
2. Assessment of current position
Financial statement analysis shows current position of the firm terms of the types
of assets owned by business firm and Iabilites due against the enterprise.
3. Prediction of profitability and growth prospects
Financial Statement analysis helps in assessing and predicting the prospects and
growth rates in coming which are used by investor while comparing alternatives
and other users in of business enterprise.
4. Prediction of bankruptcy and failure
Financial statement analysis an is and predicting bankruptcy and probability of
business failures.
5. Assessment of the operational efficiency
Financial statement analysis to assess operational efficiency
of the management of a company. The actual preformance of the from which are
revaded in the financial statements can be compared with some standards set
earlier and the deviation of any between
standards and actual performance can be used as the indicator of efficiency of the
management.

ANALYSIS AND INTERPRETATION

Epidemiologists often find data analysis the most carrying out an epidemiologic
study. since after all of the hard work and way they the chance to find out the
answers, If the din do not provide answer, that preens yet another for creativity! So
analyzing the data and me ring the results the reward for the work of collecting the
data, Data do however, "speak for themselves They reveal what the herself alone
with the dataset and no idea to processed, the feeling may be one mine of anxiety
than of eager anticipation As with art aspects of a study, analysis and often-helpful
strategy is to be in by manuscript or even to be written from the data.

FINANCIAL STATEMENT ANALYSIS

External Analysis
The Extend Analysis examines opportunities and threats that in the environment.
Both opportunities and threats independently of the firm The way to differentiate
between a strength or weakness from an opportunity or threat is to asks would this
issue exist if the company did the answer is yes should be considered external to
the firm

Horizontal Analysis of Financial Statements

Horizontal analysis of financial statements involves comparison of a financial
ratio. benchmark. or a line item over a number of accounting periods. method of
analysis is
also known as trend analysis. Horizontal analysis allows the assessment of relative
changes in different items over time. It also indicates the behavior of revenues
expenses, and other line items of financial statements over the course of time.
Accounting periods can be two or more than two periods. Accounting period can
be month, a quarter or a year. It will on discretion when an appropriate number of
accounting periods During the investment approriate. the number of accounting
periods for analysis is based on the time Horizontal under consideration
Horizontal analysis of financial statements can be performed any of the item in
income the be performed on revenues cost of sales expenses, Can also be
performed on ratios such as camino per share (EPS)price earning ratio, dividend
payout, and other similar ratio.

Vertical Analysis of Financial Statements

Vertical Analysis of financial statement is a in which the relationship between
items in the same financial statement is by expressing all amounts as a
percentage a total amount This method compares different items to a single item
in the same accounting period. The financial statement prepared by using this
technique is known as common size financial statements
The most important technique of analysis and interpretation of financialare listed
below

Comparative Financial Statement
Common Measurement or Size Statement
Net Working Capital

Net Working Capital Analysis

Working Capital Statements or schedule of working is disclosed changes in working
capitals on two specific is prepared from current assets and current liabilites on the
specific dates to show net or decrease in working capital

Financial information

Aim of Financial Statement

The finance department of a business takes responsibility for organizing the
financial and accounting affairs including the preparation and presentation of
appropriate accounts, and the provision of financial informaion for managent The
man areas covered by the financial department include:

1. Book Keeping Procedures

Keeping records of the purchases and sales made by a business as well as capital
spending These records today are typically kept computer files. But we still use the
term edger entries to refer to the days when all financial statement were carefully
recorded in thick books (ledgers)
2. Creating A Balance Sheet And Profit & Loss Account

Financial statements need be roduced at given time intends for at the end of each
financial year rial balances extracted them the ledger cities to create a Balance
sheet showing the assets and liabilities of business at the year end. In addition,
records of purchases and sales titled up create a Profit and Loss (P&L) account
3. Providing Management Information

Managers require on going financial information enable them to make better
decisions. For example, they will want information about how much costs to
produce particular product or service in order to assess how much to produce and
whether it might he more worthwhile to switch making an altemative product

4. Management of Wages

The section of the finance department will be responsible for calculating the
wages wages and salaries of employees and the collection of income tax and
insurance for the Inland Revenue.

5. Raising of Finance

The finance department will also be responsible the technical details of how
business raises finance e g, through and the repayment of that la addition it will
supervise the payment of dividends to shareholders.

Statement showing Comparative balance sheet at 31
st
march 2011
Particulars 2009 2011 Increase or
decrease
Percentage
Assets
Current assets
Cash 26507517.47 2350695.74 24156821.73 8.868034295
Balance with other
banks
51654500 68346070 -16691570 132.3138739
Advance 279892891.6 351249070 -71356178.45 125.4941017
Interest receivable 38942047 21356851 17585196 54.84265118
Total current
assets
401496956 464603110.
3
-63106154.27 115.7177167
Fixed assets
Investment 99954987.7 99991587.7 -36600 100.0366165
Premises 1617550 1536675 80875 95.00015455
Furniture and 1333900.28 2249779.28 -915879 168.6617293
fittings
Other items 8335217.15 2817 8332400.15 0.03379636
Other assets
-
7986672.15 - -
Overdue interest
Receivable
-
19763826
- -
Total fixed assets 111241655.1 151295183.
1
-40053528 136.005872
Total assets 512738611.2 615898293.
4
-103159682.3 120.1193513
Liabilities
Current liabilities
Investors payable 13129252 14347583 -1218331 109.2795157
Income tax payable 1020436 _ _ _
Other liabilities 8235862.26 8508934.76 -273072.5 103.3156516
Overdue interest
reserve
_ 21936363 _ _
Total current
liabilities
22385550.26 44792880.7
6
-22407330.5 200.097296
Long-term
liabilities

Capital 11492190 11290095 202095 98.24145789
Reserve funds 52585881.76 43565881.7
6
9020000 82.84710706
Deposit 63302179.35 57028124.3
5
6274055 90.08872196
Other funds 384188760.6 475115061. -90926301.09 123.6670904
7
Borrowing 28795.02 _ _ _
Branch adjustments 31148088.76 21017343.8
4
10130744.92 67.47554883
Profit and loss
account
2182090.13 1197274.9 984815.23 54.86826064
Total long term
liabilities

544927985.6 609213781.
5
-64285795.92 111.7971177
Total liability 547166535.9 654006662.
3
-106840126.4 119.526071

Interpretation
Shows that the comparative balance sheet at 2010 of the firm is satisfactory
compare the years 2008-09 & 2009-10. For the periods taken for study shows that the total
assets and total liabilities hence the organizations ability to meet current obligations is
decreased, resulting in excellent short term solvency position an also greater safety of
funds to short term investors. Though there is marginal decrease in the year 2008-09
comparing with 2009-10.

Statement showingComparative balance sheet at 31
st
march 2012

particulars
2009

2012
Increase or
decrease
Percentage
Assets
Current assets
Cash 26507517.47 18128149.95 8379367.52 68.38871264
Balance with other
banks
51654500 23552312 28102188 45.59585709
Advance 279892891.6 399988204.6 -120095313 142.9075967
Total current assets 401496956 462294373.5 -60797417.48 115.1426845
Fixed assets
Investment 99954987.7 150935587.7 -36600 100.0366165
Premises 1617550 1459840 80875 95.00015455
Furniture and fittings 1333900.28 1730787.28 -915879 168.6617293
Other items 8335217.15 2626 8332400.15 0.03379636
Other assets - 5270830.16 0 0
Overdue interest
Receivable
- _ - -
Total fixed assets 111241655.1 159399071.1 -48157416.01 143.2908122
Total assets 512738611.2 621693444.6 -108945833.5 121.2495863
Liabilities
Current liabilities
Income tax payable 1020436 _ _ _
Overdue interest
reserve
_ _ _ _
Total current
liabilities
22385550.26 22725919 -340368.74 101.5204841
Long-term
liabilities
0
Capital 11492190 47527089.76 -36034899.76 413.5599025
Reserve funds 52585881.76 10994355 41591526.76 20.9074273
Deposit 63302179.35 37881881.76 25420297.59 59.84293455
Other funds 384188760.6 45194754.53 338994006.1 11.76368472
Borrowing 28795.02 4000000 -3971204.98 13891.29092
Branch adjustments 31148088.76 13300 31134788.76 0.042699249
Profit and loss
account
2182090.13 240341.05 1941749.08 11.01425861
Total long term
liabilities

544927985.6 723041970 -178113984.4 132.685784
Total liability 547166535.9 770569059.8 -223402523.9 140.8289815

Interpretation
compare the tear 20010-11 & 2011-12. For the period taken for study shows that
the total assets and total liabilities hence the organizations ability to meet current
obligations is decreased, resulting in excellent short term solvency position an also
greater safety of funds to short term investors. Though there is marginal decrease
Statement showingComparative balance sheet at 31
st
march 2013

particulars
2009

2013
Increase or
decrease
Percentage
Assets
Current assets
Cash 26507517.47 22687286.49 3820230.98 85.58812237
Balance with other
banks
51654500 8400000 43254500 16.26189393
Advance 279892891.6 432702551.6 -143809660 151.38024774
Total current assets 401496956 474561761 -73064805.02 118.1980969
Fixed assets
Investment 99954987.7 154117728.2 -54162740.47 154.1871313
Premises 1617550 1386845 230705 85.73738061
Other items 8335217.15 2466 8332751.15 0.029585312
Other assets - 4521515.49 0 0
Overdue interest
Receivable
- 17507636 0

0
Total assets 512738611.2 653467277.8 -140728666.7 127.4464734
Liabilities
Current liabilities
Income tax payable 1020436 _ 0 0
Overdue interest
reserve
_ 19680173 0 0
Total current
liabilities
22385550.26 48010597.17 -25625046.91 214.4713738
Long-term
liabilities

Capital 11492190 10786725 705465 93.8613528
Reserve funds 52585881.76 43155833.48 9430048.28 82.0673383
Deposit 63302179.35 50588706.25 12713473.1 79.91621579
Other funds 384188760.6 541864026.7 -157675266.1 141.0410929
Borrowing 28795.02 _ 0 0
Branch adjustments 31148088.76 115353.3 31032735.46 0.370338292
Profit and loss
account
2182090.13 664253.55 1517836.58 30.4411601
Total long term
liabilities

544927985.6 647174898.3 -102246912.7 118.7633807
Total liability 547166535.9 685185495.5 -138018959.6 125.2243057

Interpretation
Shows that the comparative balance sheet at 2013 of the firm is satisfactory compare
the years 2011-12 & 2012-13. For the periods taken for study shows that the total assets and
total liabilities hence the organizations ability to meet current obligations is decreased,
resulting in excellent short term solvency position an also greater safety of funds to short term
investors. Though there is marginal decrease in the year 2010-10 comparing with 2012-13.

Statement showing Comparative balance sheet at 31
st
march 2014

particulars
2009

2014
Increase or
decrease
Percentage
Assets
Current assets
Cash 26507517.47 25375805.15 1131712.32 95.73059861
Balance with other
banks
51654500 - 0 0
Advance 279892891.6 506815172 -226922280.4 181.0746851
Total current assets 401496956 556432553.1 -154935597.1 138.5894824
Fixed assets
Investment 99954987.7 179624227.6 -79669239.91 179.705117
Premises 1617550 1317503 300047 81.45052703
Other items 8335217.15 2563 8332654.15 0.030749049
Other assets - 4906029.64 0 0
Overdue interest
Receivable
- 17122192 0 0
Total assets 512738611.2 1317585384 -804846773.2 256.9701902
Liabilities
Current liabilities
Income tax payable 1020436 _ 0 0
Overdue interest
reserve
_ _ _ _
Total current
liabilities
22385550.26 51414232.06 -29028681.8 229.6759805
Long-term
liabilities

Capital 11492190 10438720 1053470 90.83316583
Reserve funds 52585881.76 44719741.64 7866140.12 85.04134597
Deposit 63302179.35 52670340.41 10631838.94 83.20462415
Other funds 384188760.6 645550546.4 -261361785.8 168.0295242
Borrowing 28795.02 _ 0 0
Branch adjustments 31148088.76 - 0 0
Profit and loss
account
2182090.13 2526586.3 -344496.17 115.78744
Total long term
liabilities

544927985.6 755905934.7 -210977949.1 138.7166662
Total liability 547166535.9 807320166.8 -260153630.9 147.5456034

Interpretation
compare the years 2009-10 & 2013-14. For the periods taken for study shows that the total
assets and total liabilities hence the organizations ability to meet current obligations is
decreased, resulting in excellent short term solvency position an also greater safety of
funds to short term investors. Though there is marginal decrease in the year 2009-10
STATEMENT SHOWING COMMON SIZE BALANCES SHEET OF 31
st

MARCH, 2010

Particulars 2009 - 2010 %
Assets
Current Assets
Cash 26507517.47 5.169791565
Balance with other
Banks
51654500 10.07423644
Advance 279892891.6 54.58783198
Interest Receivable 38942047 7.594912135
Total Current Assets 401495956 78.30441229
Fixed Assets
Investment 99954987.7 19.49433601
Premises 1617550 0.315472634
Furniture and Fittings 1333900.28 0.260152103
Other Items 8335217.15 1.62562697
Other Assets - -
Overdue Interest
Receivable
- -
Total Fixed Assets 111241655.1 21.69558771
Total Assets 512738611.2 100
Liabilities
Current Liabilities
Investors Payable 13129252 2.39949835
Income Tax Payable 1020436 0.186494592
Other Liabilities 8235862.26 1.505183837
Overdue Interest
Reserve
- -
Total Current
Liabilities
22385550.26 4.091176779
Long-term Liabilities
Capital 11492190 2.100309366
Reserve Funds 52585881.76 9.610580749
Deposit 63302179.35 11.56908824
Other Funds 384188760.6 70.21422828
Borrowing 28795.02 0.00526257
Branch Adjustments 31148088.76 5.692615816
Profit and Loss
Account
2182090.13 0.39879817
Total Long-term
Liabilities

544927985.6

99.59088319
Total Liability 547166535.9 100

Interpretation
That shows that the common size balance sheet of the firm is satisfactory the year
2009-10. For all the period taken for study shows that the total liabilities are more
than total assets are hence the organizations ability to meet current obligations is
increased, resulting in excellent short term solvency position an also greater safety
of funds to short term investors. Though there is marginal decrease in the year
2009-10.
st

MARCH, 2011

Assets
Current Assets
Cash 2350695.74 0.381669468
Balance with other
Banks
68346070 11.09697343
Advance 351249070 57.0303691
Interest Receivable 21356851 3.467593794
Total Current Assets 464603110.3 75.43503777
Fixed Assets
Investment 99991587.7 16.23508114
Premises 1536675 0.249501422
Furniture and Fittings 2249779.28 0.36528422
Other Items 2817 0.000457381
Other Assets 7986672.15 1.296751791
Overdue Interest
Receivable
19763826 3.208943134
Total Fixed Assets 151295183.1 24.56496223
Total Assets 615898293.4 100
Liabilities
Current Liabilities
Investors Payable 14347583 2.193797682
Income Tax Payable _ _
Other Liabilities 8508934.76 1.301047107
Overdue Interest
Reserve
21936363 3.354149776
Total Current
Liabilities
44792880.76 6.848994566
Long-term Liabilities
Capital 11290095 1.726296634
Reserve Funds 43565881.76 6.661381951
Deposit 57028124.35 8.719807861
Other Funds 475115061.7 72.6468229
Borrowing - -
Branch Adjustments 21017343.84 3.2136284
Profit and Loss Account 1197274.9 0.183067692
Total long-term
Liabilities
609213781.5 93.15100543
Total Liability 654006662.3 100

Interpretation
2010-11.
st

MARCH, 2012

Assets
Current assets
Cash 18128149.95 2.91593069
Balance with other
banks
23552312 3.788412473
Advance 399988204.6 64.3384948
Interest receivable 20625707 3.31766519
Total current assets 462294373.5 74.36050315
Fixed assets
Investment 150935587.7 24.27813724
Premises 1459840 0.234813724
Furniture and fittings 1730187.28 0.27830232
Other items 2626 0.000422395
Other assets 5270830.16 0.847818198
Overdue interest
receivable
_ _
Total fixed assets 159399071.1 25.63959685
Total assets 621693444.6 100
Liabilities
Current liabilities
Investors payable 14770865 1.916877509
Income tax payable _ _
Other liabilities 10030305.76 1.916877509
Overdue interest reserve _ _
Total current liabilities 22725919 2.949238451
Long-term liabilities
Capital 47527089.76 6.167791083
Reserve funds 10994355 1.426783863
Deposit 37881881.76 0.491609172
Other funds 45194754.53 5.865114094
Borrowing 4000000 0.519096887
Branch adjustments 13300 0.001725997
Profit and loss account 240341.05 0.031190073
Total long term
liabilities
723041970 93.83220892
Total liability 770569059.8 100

Interpretation
2011-12.
st

MARCH, 2013

Assets
Current assets
Cash 22687286.49 3.471832066
Balance with other
banks
8400000 1.285450746
Advance 423702551.6 64.83913823
Total current assets 474561761 72.62211547
Fixed assets
Investment 154117728.2 23.58461294
Premises 1386845 0.212228683
Other items 2466 0.000377372
Other assets 4521515.49 0.691926841
Overdue interest
receivable
17507636 2.679190924
Total assets 653467277.8 100
Liabilities
Current liabilities
Overdue interest reserve 19680173 2.872240164
Total current liabilities 48010597.17 7.006948846
Capital 10786725 1.574278071
Reserve funds 43155833.48 6.298416088
Deposit 50588706325 7.383213244
Other funds 541864026.7 79.08282213
Borrowing _ _
Branch adjustments 115353.3 0.016835339
Total long term
liabilities
647174898.3 94.45250995

Interpretation
2012-13.
st

MARCH, 2014

Particulars 2013 %
Assets
Current assets
Cash 25375805.15 1.925932501
Balance with other
banks
_ _
Advance 506815172 38.46545188
Total current assets 556432553.1 42.23123296
Fixed assets
Investment 179624227.6 13.63283395
Premises 1317503 0.099993747
Other items 2563 0.000194522
Other assets 4906029.64 0.372350035
Overdue interest
receivable
17122192 1.299512897
Total assets 1317585384 100
Liabilities
Current liabilities
Overdue interest reserve 19294729 2.389972379
Total current liabilities 51414232.06 6.368505851
Capital 10438720 1.293008701
Reserve funds 44719741.64 5.539282119
Deposit 52670340.41 6.524095715
Other funds 645550546.4 79.96214797
Borrowing _ _
Branch adjustments _ _
Total long term
liabilities
755905934.7 93.63149415

Interpretation
2013-14.

CONCLUSION
A Bank is solvent when it is able to honor all its commitments by liquidating all of
its assets, i.e. if it ceases its operations and all its assets. Net Assets, i.e. the
difference between Total Assets and Total Liabilities are traditional measure of a
banks solvency
A Bank creates value if the Return on Capital Employed (After Tax) that generates
exceeds the Cost of Capital (i.e. Equity and Net Debt) that served to Finance
Capital Employed.
Thus gauging the scale of losses that put the banks solvency at very survival and
jeopardy.
SUGGESTIONS
The banks should adopt the modern methods of banking like internet
banking, credit cards, ATM, etc.
The banks should plan to introduce new schemes for attracting new
customers and satisfying the present ones.
The banks should plan for expansion of branches.
The banks should improve the customer services of the bank to a better
extent.

BIBLIOGRAPHY
TEXT BOOKS:

1. Maheswari Dr S.n Financial management, Ninth edition, 2006 Sultan Chand& sons, New Delhi
2. Pandey I.M., Financial Management, Vikas Publishing House Pvt.Ltd. 8th Edition 1999.
3. Prasanna Chandra, Financial management, Fourth edition 1999, Tata Mc.graw hill publishing
company ltd, New Delhi.
4. Gupta, sashi., financial management, 4th edition,2007, kalyani publisher, new delhi
5. Kothari C.R. Research Methodology, Wishvaprakashan, New Delhi, 2001.
WEBSITES
www. Google.com
www. Investopedia.com
www.moneycontrol.com
www.wikipedia.com

QUESTIONER OF THE SURVEY

1. Which type of loan do you prefer in Co-operative Bank?
Jewel Loan
Mortgage Loan
Home Loan
Personal Loan
Vehicle Loan

2. In what amount range you would like to take loan?
Less than 20,000
20,000 - 50,000
50,000 1 Lakh
More than 1 Lakh

3. What type of term loan would you like to take?
Less than 1 Year
1 3 Years
More than 3 Years

4. What is your reason for taking loan in Co-operative Bank?
Reasonable ROI( Rate of Interest)
More Schemes
Less Formalities
Easy Re-payment
Referred

5. What is the average time taken by the bank for processing the loans?
1 3 Days
Less than 7 Days
Between 7 14 Days
More than 14 Days

6. Rank the facilities provided by the Co-operative Bank?
Above Average
Average
Below Average

7. Rank the service provided by the Bank?
Excellent
Good
Average
Poor

8. Are you satisfied with the Amount and Period of Instalment given by the Bank?
Satisfied
Not Satisfied

9. Which type of bank do you prefer for borrowing?
Public Bank
Co-operative Bank
Private Bank

10. Would you like to refer the Co-operative Bank to your friends and relatives?
Always
Sometimes
Never

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A STUDY ON CREDIT MANAGEMENT IN

PURASAWALKAM CO-OPERATIVE BANK LIMITED (No. 10700)

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