Professional Documents
Culture Documents
PROJECT REPORT
ON
ANALYSIS OF FINALCIAL
STATEMENT
THE PANIPAT URBAN CO-OPERATIVE
BANK
SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE DEGREE
OF
BACHELOR OF BUSINESS ADMINISTRATION
(SESSION 2014-15)
SUBMITTED TO:
SUBMITTED BY:
PRIYANKA
,
DECLARATION
I PRIYANKA student of B.B.A. III year in I.B.(P.G.) College, Panipat hereby declare
that the project report entitled ANALYSIS OF FINALCIAL STATEMENT
submitted for the degree of B.B.A. III year is my original work and the project report
has not formed the basis for the award of any diploma, degree, associate ship,
fellowship or similar other titles. It has not been submitted to any other university or
institution for the award of any degree or diploma.
(PRINCIPAL SIGNATURE)
PRIYANKA
ACKNOWLEDGEMENT
Survey is an excellent tool for learning and exploration. No classroom routine can
substitute which is possible while working in real situations. Application of theoretical
knowledge to practical situations is the bonanzas of this survey.
Without a proper combination of inspection and perspiration, its not easy to achieve
anything. There is always a sense of gratitude, which we express to others for the help
and the needy services they render during the different phases of our lives. I too would
like to do it as I really wish to express my gratitude toward all those who have been
helpful to me directly or indirectly during the development of this project.
I would like to thank my professor MISS.NISHA GUPTA who was always there to
help and guide me when I needed help. Her perceptive criticism kept me working to
make this project more full proof. I am thankful to her for his encouraging and
valuable support. Working under her was an extremely knowledgeable and enriching
experience for me. I am very thankful to her for all the value addition and enhancement
done to me.
No words can adequately express my overriding debt of gratitude to my parents whose
support helps me in all the way. Above all I shall thank my friends who constantly
encouraged and blessed me so as to enable me to do this work successfully.
PRIYANKA
It is his original research and I recommend that this should be sent for evaluation
CHAPTER 1
Profile of bank
4. Co-operative Sector
The co-operative sector is very much useful for rural people. The panipat co-operative banking sector is
divided into the following categories:
A. State panipat co-operative banks
B. Central panipat co-operative banks
C. Primary Agriculture Credit Societies
IFCI
IDBI
ICICI
IIBI
SCICI Ltd.
NABARD
Export-Import Bank of India
National Housing Bank
Small Industries Development Bank of India
North Eastern Development Finance Corporation
Banking Services:
Banking in India is so convenient and hassle free that one (individual, groups or whatever the case
may be) can easily process transactions as and when required. The most common services offered by banks in
India are as follow:
"
Bank Accounts: It is the most common service of the banking sector. An individual can open a bank
account which can be either savings, current or term deposits.
"
Loans: You can approach all banks for different kinds of loans. It can be a home loan, car loan, and
personal loan, loan against shares and educational loans.
"
Money Transfer: Banks can transfer money from one corner of the globe to the other by issuing
demand drafts, money orders or cheques.
"
Credit and Debit cards: Most of the banks offer credit cards to their customer which can be used to
purchase goods and services on credit. On the other hand debit card also used to draw cash easily.
"
Lockers: Most banks have safe deposit lockers which can be used by the customers for storing
valuable, important documents or jewellery.
Banking Services for NRIs:
Non Resident Indians or NRIs can open accounts in almost all Indian banks. The three types of accounts that
NRIs can open are:
"
"
"
Banking industry in India has evolved lately under the impact of the stimulus packages announced by the
Government. According to the Annual Policy 2008-09 of the Reserve Bank of India (RBI), the central bank,
key monetary aggregates have witnessed some growth in 2008-09. This is reflected in the changing liquidity
positions arising from domestic and global financial conditions and the policy initiatives taken by the
government. Also, reserve money variations during 2008-09 have largely reflected an increase in currency in
circulation and reduction in the cash reserve ratio (CRR) of banks.
According to a study by Dun & Bradstreet (an international research body)-"India's Top Banks 2008"-there has
been a significant growth in the banking infrastructure. Taking into account all banks in India, there are overall
56,640 branches or offices, 893,356 employees and 27,088 ATMs. Public sector banks made up a large chunk
of the infrastructure, with 87.7 per cent of all offices, 82 per cent of staff and 60.3 per cent of all automated
teller machines (ATMs).
The Credit Scenario
The year-on-year (y-o-y) aggregate bank deposits stood at 21.2 per cent as on January 2, 2009. Bank credit
touched 24 per cent (y-o-y) on January 2, 2009 as against 21.4 per cent on January 4, 2008. The year-on-year
(y-o-y) growth in non-food bank credit at 23.9 per cent as on January 2, 2009 was higher than that of 22.0 per
cent as on January 4, 2008. Increase in total flow of resources from the banking sector to the commercial sector
was also higher at 23.4 per cent as compared with 21.7 per cent a year ago. The incremental credit-deposit ratio
rose to 81.4 per cent as on January 2, 2009, as against 63.1 per cent as on January 4, 2008. Also, during 200809 so far, the total flow of resources to the commercial sector from banks stood at US$ 58.83 billion up to
January 2, 2009. Scheduled commercial banks' credit to the commercial sector expanded by 27.0 per cent (y-oy) as on November 21, 2008, as compared with 23.1 per cent a year ago.
There has been variation in credit expansion across bank groups. Credit expansion as on January 2, 2009 for
public sector banks stood at 28.6 per cent, scheduled commercial banks (SCBs) including the regional rural
banks (RRBs) at 24 per cent, foreign banks at 6.9 per cent and private sector banks at 11.8 per cent, according
to the Annual Policy for 2008-09 of Reserve Bank of India.
Several measures initiated by the Reserve Bank have resulted in banks reducing their deposit and lending rates
between November 2008 and January 2009. The range for deposit rates for public sector banks varied from
5.25 to 8.5 per cent, foreign at 5.25 to 7.75 per cent and private sector banks at 4 to 8.75 per cent. In the postcrisis quarter caused due to collapse of Lehman Brothers, large corporate like Infosys moved their deposits to
State Bank of India (SBI), the country's largest bank. Infosys has revealed that it transferred deposits of nearly
US$ 200.61 million from ICICI Bank to SBI last year.
Deposits as on January 2, 2009 for public sector banks stood at 24.2 per cent, scheduled commercial banks
(SCBs) including the regional rural banks (RRBs) at 21.2 per cent, foreign banks at 12.1 per cent and private
sector banks at 13.4 per cent, according to the Annual Policy for 2008-09 of the Reserve Bank of India.
The prime lending rates of public sector banks stood at 12 to 12.5 per cent, private sector banks at 14.75 to
16.75 per cent and foreign banks 14.25 to 15.50 per cent as on January 2009.
Bank loans rose 18.1 per cent on year-on-year basis as on March 13, the RBI has said in its Weekly Statistical
Supplement released on March 27, 2009. Outstanding loans rose to US$ 541.82 billion in the two weeks to
March 13. The non-food credit rose to US$ 530.19 billion in the two weeks, while food credit stood at US$
9.61 billion in the same period.
Since October 2008, the central bank has cut the cash reserve ratio, or the proportion of deposits that banks set
aside, and the repo rate, or the rate at which it lends to banks, by 400 basis points each to inject liquidity into
the system and activate a lower interest rate regime. Also, the reverse repo rate has been lowered by 200 basis
points to discourage banks from parking surplus funds with RBI. Till April 7, 2009, the CRR had further been
lowered by 50 basis points, while the repo and reverse repo rates have been lowered by 150 basis points each.
Public sector banks have pruned their benchmark prime lending rates (BPLRs) by 150-200 basis points. Also,
in April 2009, private sector banks such as Axis and Bank of Rajasthan have reduced their BPLRs by 50 basis
points. Only few foreign banks such as Citibank have pared home loan rates by 50 basis points to 13.75 per
cent.
The rupee depreciated during 2008-09, reflecting varied developments in international financial markets and
portfolio outflows by foreign institutional investors (FIIs). The rupee exchange rate was between 48.37 to
49.19 against the US dollar and 63.60-68.09 against the Euro in January 2009.
Government Initiatives
Apart from the bank rate cuts announced in the stimulus packages, cash withdrawals from bank will not attract
tax from April 1, 2009 following abolition of the banking cash transaction tax (BCTT) in the Union Budget
2008-09. The total collection of BCTT stood at US$ 120.36 million in 2008-09. Also, inter-ATM usage
transaction became free of charges effective April 1, 2009.
Exchange rate used: 1 USD = 49.8417 INR
The Indian economy continued to record strong growth during 2007-08, albeit with some moderation. Real
gross domestic product (GDP) growth rate at 9.0 per cent during 2007-08 moderated from 9.6 per cent during
2006-07, reflecting some slow down in industry and services. A positive feature during the year was a recovery
in the growth of real GDP originating in the agricultural sector, after the slowdown experienced in the previous
year. Despite this moderation, the overall growth rate of the Indian economy during 2007-08 was noteworthy
in the global context.
During 2007-08, the growth of real GDP originating from the industrial sector decelerated to 8.2 per cent as
against 10.6 per cent in 2006-07. In terms of Index of Industrial Production (IIP), industrial growth was at 8.5
per cent as against 11.5 per cent in 2006-07. Manufacturing sector growth at 9.0 per cent during 2007-08 (12.5
per cent during 2006-07) was the lowest in the last four years. The mining and electricity sectors also grew at a
slower pace during 2007-08. In terms of use-based classification, the performance of the capital goods sector
was particularly impressive with 18.0 per cent growth.
However, the basic goods, intermediate goods and consumer goods sectors recorded decelerated growth of 7.0
per cent, 8.9 per cent and 6.1 per cent, respectively, during 2007-08. The performance of the industrial sector
was also affected by the subdued performance of the infrastructure sector, registering 5.6 per cent growth
during 2007-08. The services sector recorded double digit growth consistently in the last three years. It grew
by 10.7 per cent during 2007-08, on top of 11.2 per cent growth in 2006-07
The Reserve Bank during 2007-08 had to contend with large variations in liquidity not only due to swings in
cash balances of the Central Government, but also on account of large and volatile capital flows. The Reserve
Bank judiciously used the CRR, LAF and MSS to manage such swings in liquidity conditions, consistent with
the objectives of price and financial stability. As a whole, there was a net absorption of liquidity on 171 days
and net injection of liquidity on 75 days during 2007- 08. The average daily net outstanding balances under
LAF varied between injection of Rs.10,804 crore during December 2007 to absorption of Rs.36,665 crore in
October 2007. Net issuances under the Market Stabilisation Scheme (MSS) during 2007-08 amounted to
Rs.1,05,691 crore.
In the foreign exchange market, the Indian rupee exhibited two-way movements in the range of Rs.39.26-43.15
per US dollar during 2007-08. The Indian rupee depreciated to Rs.41.58 per US dollar on August 17, 2007
from Rs.40.43 per US dollar on July 31, 2007. The exchange rate of the rupee appreciated thereafter up to
January 2008. The rupee moved in a range of Rs.39.26-39.84 per US dollar during October 2007- January
2008. However, the rupee started depreciating against the US dollar from the beginning of February 2008 on
account of FII outflows, rising crude oil prices and heavy dollar demand by oil companies. The exchange rate
of the rupee was Rs.39.99 per US dollar at end-March 2008.
The Co operative banks in India started functioning almost 100 years ago. The Cooperative bank is an
important constituent of the Indian Financial System, judging by the role assigned to co operative, the
expectations the co operative is supposed to fulfil, their number, and the number of offices the cooperative
bank operate. Though the co operative movement originated in the West, but the importance of such banks
have assumed in India is rarely paralleled anywhere else in the world. The cooperative bank in India plays an
important role even today in rural financing. The businesses of cooperative bank in the urban areas also have
increased phenomenally in recent years due to the sharp increase in the number of primary panipat cooperative banks.
Co operative Banks in India are registered under the Co-operative Societies Act. The cooperative bank is also
regulated by the RBI. They are governed by the Banking Regulations Act 1949 and Banking Laws (Cooperative Societies) Act, 1965.
Farming
ii.
Cattle
iii.
Milk
iv.
Hatchery
v.
Personal finance
Self-employment
ii.
Industries
iii.
iv.
Home finance
v.
Consumer finance
vi.
Personal finance
Some cooperative banks in India are more forward than many of the state and private sector banks.
ii.
According to NAFCUB the total deposits & landings of Cooperative Banks in India is much more than
Old Private Sector Banks & also the New Private Sector Banks.
iii.
This exponential growth of Co operative Banks in India is attributed mainly to their much better local
reach, personal interaction with customers, and their ability to catch the nerve of the local clientele.
Who's Who
Sri Jagneswar
President
Vice President
Refinance to DCCBs:
The OSCB came into existence to support the lending activities of its affiliated DCCBs. The Bank
provides refinance to them to pursue the following activities.
(i) Dispensation of farm Credit:
Product Credit:
In Orissa, 39.48 lakh farmers have been enrolled as members of the primary Agriculture Coop. Societies
(PACS)/Large Sized Agriculture
And Multi Purpose Co-operative Societies (LAMPS)/Farmers Services Societies (FSS).The Farm credit
requirement of the farmer is met by these societies by availing loans from the DCCBs. The OSCB extends
Refinance facilities to the DCCBs for financing the PACS. During 1999-2000, Rs. 426.23 Crores were
disbursed to 6.76 lakhs farmers in the state.
Investment Credit:
The Bank has been dispensing investment credit for Minor Irrigation, Farm Mechanization, Dairy, Poultry,
Horticulture, Plantation, Sericulture etc. through the DCCBs and PACS/LAMPS/FSS. The OSCB, in
The Indian Banking Scenario:
consultation with the NABARD and Govt. of Panipatprepares plans and programs for dispensation of
investment credit and closely monitor the financing, utilization etc.
SCB (State Panipat co-operative bank)
(ii) Non-farm sector Financing:
CCB (Cental Panipat co-operative
bank)sectors. The DCCBs have been
The OSCB has facilitated the DCCBs diversifying into financing of non-farm
dispensing non-farm credit to small-scale industries in shape of block capital and working capitals. Loans are
also advanced for trading activities, purchase of commercial vehicles, housing etc. With refinance support
UCB (Urban Panipat co-operative bank)
from the OSCB. The branches of the banks are also proving these loans directly.
(State Co-operative
The
OSCB
has
been
financing
the
handloomSCARDB
cooperative
societiesAgro-Rural
Development
Bank)
For production and marketing through DCCBs. The PanipatHandloom Weavers
Society
is directly financed
by the Bank.
e. Press
f.
Mass Media
Introduction of Kisan Credit Card: - The OSCB has been facilitated dispensation of entire farm credit
through Kisan Credit Card only to enable the farmer members to get instant credit. The DCCBs with the
help of the Bank have transformed 813 primary societies as Mini Banks who have mobilized Rs. 250 crores
from the rural areas.
ii.
Information Technology in DCCBs :- The OSCB has taken the responsibility to computerize the operation
of the DCCBs to face the challenge from their commercial counterparts. The software package is finalized
for the purpose.
iii.
Face lift of the branches of DCCBs and the Mini Bank: - The Bank has been providing regular assistance
for the face-lift of the DCCB Branches and PACS. The NABARD has also help 200 PACS with financial
assistance for improvement of infrastructure facilities.
iv.
Organization and linkage of self-help Groups:-The Banks has been patronizing and close monitoring
organization of self help groups at primary level and monitoring the progress.
v.
Human Resources Development: - The OSCB has been maintaining a Training Institute to impart training
to the personnel of DCCBs and PACS/ LAMPS/FSS. Regular Training programs is conducted by the
institute for the purpose.
vi.
Conduct of Study:- To find out the reasons for low off- take of farm
Credit, the bank had appointed all four Universities of the states. They have given their reports basing on
which corrective actions have been taken. The bank has also undertaken a study on functioning of SHGs in
vii.
Preparation
of
development
Action
Plan
and
Signing
Of
MOU:At the behest of OSCB, the DCCBs have been preparing DAPs and Signing MOU with the Bank and
NABARD. This effort of the banks has created a cost consciousness among the lowest tiers and their turn
over has increased manifold.
viii.
Image Building: The Bank has been undertaking advertisement through hoarding and electronics media to
boost up the images of the entire credit structure.
ix.
NABARD as partner of the Bank: - The NABARD has been extending required support to the Bank to
accomplish
its
objectives.
The assistance include liberal and confessional refinance, assistance from Coop Development Fund,
Support to the women Development cell, Technical, monitoring and Evaluation Cell, Faculty support to the
Training Institute Etc.
x.
Excellence Recognized:- The National Federation of state Coop Banks (NAFSCOB) has awarded the Bank
for its outstanding performance for consecutive four years. The NABARD has also awarded the bank for
its performance during 1997-98. The Bank has been achieving all the MOU Parameters.
xi.
Profits since Inception: - The Bank has been earning profit since its inception and paying divided to its
shareholders uninterruptedly.
xii.
Corporate Vision:- The Bank aims at a vibrant Coop. Credit Structure by strengthening PACS and DCCBs ,
best customer services through computerization and anytime-anywhere Banking and above all a satisfied
clientele.
OSCB Ltd. Network
Aska CCB
Banki CCB
Berahampur CCB
Bhawanipatana CCB
Bolangir DCCB
Boudh CCB
Cuttack CCB
Keonjhar CCB
Khurda CCB
Koraput CCB
Mayurbhanj CCB
Nayagarh CCB
Sambalpur DCCB
Sundaragarh CCB
The short term cooperative credit in Panipatcomprising 2714 PACS (including 218 LAMPS and 6 FSS) at
the grass roots level, 17 District Central Cooperative Banks at the middle rung and PanipatCooperative Bank at
the apex level have been rendering yeomens service to the farming community. From out of around 50 lakh
agricultural families, 44.98 lakh families have become members of the PACS taking the coverage to 90%.
No.
Agril.
of No.
of % of coverage of No.
members
membership
to indebted
of
199798
199899
199900
200001*
200102*
200203
200304
200405
200506
200607
families)
enrolled
39.48
34.60
39.48
36.58
92.65
14.78
39.48
37.72
95.50
14.97
50.14
38.89
77.78
16.10
50.14
39.33
78.66
16.09
50.14
39.33
79.44
15.57
50.14
40.56
80.89
17.21
50.14
44.75
89.25
22.91
50.14
44.98
89.70
50.14
44.98
89.70
The PanipatPanipat co-operative bank has made strides in many key areas and achieved all targets setup in the
Development Action Plan (DAP). The funds comprising of paid of capital and resource, deposit and borrowing
are the main resource of the bank. A Major chunk of this resources are deployed under the loans and advances
to the affiliated central Cooperative Banks, Member society and individuals for different purpose under farm
and non-farm sectors.
The Statutory investment requirement under RBI Act and BR Act are met by investment in Central/State
Governance Securities and others approved trustee securities, seasonal investible surpluses are deployed in call
and short term deposits with commercial banks, to maximize as yield on assets.
Besides remaining vigilant over judicious deployment of funds, the banks is also making concerted efforts to
bring down the level of non earning assets of the banks and increase the financial margin.
2003-04
2004-05
2005-06
2006-07
(Provisional)
1
2
3
Share Capital
Reserve Fund
Own Fund
4958.32
13917.91
18876.23
5168.62
16749.31
21917.93
6437.98
18492.47
24930.45
6976.86
20173.87
27150.73
Deposits
102601.38
107850.94
121315.98
129586.23
Borrowings
75573.56
69151.18
95434.17
125141.36
Working Fund
212573.39
214139.32
257252.88
295086.90
Loans
outstanding
Investments
109908.08
127898.44
168220.52
193761.25
83288.41
68195.11
71145.27
88822.10
952.96
1106.80
1385.34
1562.06
1347.51
1744.43
1969.39
916.00
6%
7%
7%
8
9
Per employee
business
10 Net profit
11 Dividend
(Rs. in Lakhs)
2007-08 Percentage of
growth over
previous year
7137.58
8.37%
21530.15
9.09%
-8.91%
156626.80
6.82%
166593.24
31.13%
-14.71%
-15.18%
56455.67
24.84%
-12.76%
-8.37%
CCBs
Particulars
(Rs. in Crores
2002-03
2003-04
2004-05
2005-06
1. Own fund
2. Deposits
3. Loans & Advances
4. Working Capital
5. Cost of Management(COM)
6. % of COM to WC
181.57
1569.25
1820.99
2897.44
49.63
1.71
13
-7.25/ +9.75
105.95
212.18
1749.58
2102.26
3224.43
51.72
1.60
15
-1.95+17.25
94.77
231.13
1830.35
2346.14
3577.53
53.83
1.50
17
+46.33
53.90
266.23
1940.35
2746.35
4141.60
55.56
1.34
16
-2.40 +13.23
46.61
Reserves:
The Bank since its inception operated above the break even level and attained sustainable viability long
since. As a result, the bank continued to build up its Reservers and Funds as per the provision of the bye-laws.
The total Reserves at the end of 1998-99 stood at Rs.7092.22 Lakh as against Rs. 5752.52 Lakh in 1997-98.
Quantumwise, the reserves increased by Rs. 1339.70 Lakh during the year, recording growthrate of 23.29 % .
Composition of Reserves and Funds of the Bank from 1996-97 along with year-wise growth rate are indicated
below.
Types of Reservers
Rs in Lakh
1996-97
1997-98
1998-99
404.07
439.18
484.68
Agril,Credit Stabilisation
1803.83
1966.45
2050.64
Other Reservers
2503.10
3346.89
4556.90
Total :
4711.00
5752.52
7092.22
Year
Increase
Percentage of Growth
1996 - 97
4711.00
193.25
4.28%
1997 - 98
5752.52
1041.52
22.11%
1998 - 99
7092.22
1339.70
23.29%
Deposits
(Rs. in Crores
Deposit Mobilisation.
Year
19992000
20002001
20012002
20022003
20032004
20042005
20052006
20062007
PACS
Total Deposit
238.97
CCB
% of Growth Total
during the yr. Deposit
42
951.33
OSCB
% of Growth Total
during the yr. Deposit
24
560.06
% of Growth
during the yr.
34
321.58
30
1188.96
25
731.27
31
425.47
10
1406.85
18
874.82
20
432.75
1569.25
13
886.12
446.82
1761.25
12
1026.01
16
494.85
11
1853.48
1078.32
516.33
1955.75
1213.16
12
557.07
2126.80
1295.86
Borrowings
Disbursement of schematic loans:
The short term cooperative credit structure is not lagging behind in financing investment credit for acquisition
of capital assets by the farmer members to increase agriculture production and productivity by adopting
modern technology. The DCCBs and PACS with the assistance of OSCB have been financing activities like
plantation and horticulture, sericulture, pisciculture, farm mechanisation, small road transport operators, small
business, small scale industries, etc. both under farm and non farm sector. The financing for the purpose
during last 8 years is given as follows:
(Rs. in Crores
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
Total
Target
10000.00
10000.00
8000.00
7405.00
7500.00
10000.00
14500.00
22800.00
Achievement
No.
Amt.
9583 4124.57
16872 5670.61
17964 4013.29
12342 3952.28
15872 4516.95
29886 4941.48
24351 6453.79
29796 7930.49
Housing loans : The bank is financing Housing Loan under its "APNA GHAR " scheme. Maximum amount
under this head is Rs.500000.00 for purchase of readymade house or construction. For repair, renovation or
addition/ alteration the limit is Rs.50000.00. The rate of interest is 13% on reducing balance. Maximum
repayment period is 15 years with 18 months moritorium period.
Consumer Durable Requirement / Formalities
1. Maximum limit Rs. 50000.00 or 75% of the cost of the item.
2. Subject to five times monthly gross income.
3. Repayable in maximum 40 monthly installments in reducing balance.
Motor Vehicle Finance
For any sort of Surface Transport and Water Transport vehicle both for commercial and personal pupose.
Requirement / Formalities
1. 75% of the total cost of vehicle, including insurance and registration.
2. Repayable in 60 monthly installments reducing balance.
Business Enterprise
Terms Loan for
1. Fixed Assets for Projects.
2. Commercial Complex and Kalyan Mandap
3. Hotels, Tourist Resorts, Health Care units.
4. Equipment and Machinaries.
Requirement / Formalities
Requirement / Formalities
1. Maximum 75% of working capital requirement subject to Stock Holding.
2. Quarterly Interest on days balance.
1. Timely audit of accounts has been ensured. The audit for the year 2005-06 was completed by
30.06.06.
2. The bank has been paying uninterrupted dividend to the shareholders.
3. Common coding of accounting heads has been introduced in the State to integrate the accounting
practices of the OSCB and all affiliated DCCBs. This has facilitated the computerisation process in the
Central Cooperative Banks.
4. Organisation of annual customer meets to understand their changed perception and to reorient the
policies and procedures of the bank. Such meets are also being organised at the level of the DCCBs as
well as the PACS.
5. A transparent transfer policy have been formulated and adopted in the bank. Transfers are now being
effected on the basis of the policy without any other consideration.
6. A bi-monthly house journal entitled Sampark is published with effect from January, 2001, which not
only provides a forum to the employees to express their views, but also the management is also able to
explain the justification for taking important decisions.
7. Each branch of the OSCB, DCCBs as well as the PACS is being visited by a supervisory officer every
month to inspect the functioning and also impart guidance.
8. Loans Manual for the Bank has been prepared by NABCON- the consultancy arm of NABARD.
9. Systems Audit of the Bank has been conducted by M/s Haribhakti & Co., Mumbai.
10. A comprehensive HRD policy is being evolved for the Bank by the National Institute of Bank
Management, Pune.
CHAPTER 2
Allahbad Bank came into existence in 1865 and Alliance Bank of Simla in 1875. The first
purely Indian joint stock bank known as the Oudh Commericial Bank was set up in 1906 encouraged
the Indian entrepreneurs to start many new banks. There were as many 648 commercial banks in
India by the end of 1947. As many as 161 banks failed in quick succession during 1913-1914 and
peoples faith in the banks system was shaken. Thus there was a great need of an institution to control
and regulate banking in the country. As a result, the reserve bank if India was established as the
central bank of country in 1935 under an act called Reserve Bank of India Act. Later on with the
passage of the banking regulation Act passed in 1949. RBI was brought under government control.
Under this act, RBL was conferred with supervision and control of the banks and licensing powers
and the authority to conduct inspections was also given to it.
The three presiding banks were amalgamated in 1920 and new bank called Imperial Bank of
India, this bank played an important role in the economy of the country. After independence, it was
nationalized in 1955 and renamed as the State Bank of India. The SBI opened a large number of
branches in rural and semi-urban areas. The RBI acts as a centralized body monitoring any
discrepancies and shortcoming in the system. It is the foremost monitoring body in the Indian
financial sector. The nationalized banks (i.e. government owned banks) continue to dominate the
India banking arena. Industry estimates indicated that out of 274 commercial banks operating in
India, 223 banks are in the public sector and 51 are in the private sector. The private sector bank grid
also includes 24 foreign banks that have started their operations here.
Bank
Banking
2.3Types of Banks
3)Specialized Banks:
There are specialized forms of banks catering to some special needs with
Commercial
Bank
Foreign bank
Development
bank
Indian bank
Exim bank
State cooperative
bank
RRBS
Public sector
Private
sector
NABARD
State Bank
Nationalized
Indian banking system comprises of both organized and unorganized banks. Unorganized banking
includes indigenous bankers and village moneylenders. Organized banking includes the followed,
Commercial banks
Development banks
Exim banks
A. DEFINITION:
2.6
3)
Primary panipat co-operative bank is also known as credit society. The primary co-operative credit
society is an association of borrows and number derived from the share capital and deposits of and
members and loans from central panipat co-operative banks. The borrowing power of the members well
as of the society is fixed. The loans are given to members for the purpose of cattle, folder fertilizer,
pesticides, implements, etc
There are three types of panipat co-operative banks and the urban panipat co-operative bank is one
type of panipat co-operative bank, panipat bank is urban panipat co-operative bank.
The main function of Co-operative credit society was to provide cheap credit to the members
who are small people with small means and small needs and finance.
The Panipat co-operative banks have a three tier set up. The state panipat co-operative bank,
while central district panipat co-operative banks function at the district level and primary
credit societies work of the village level.
Panipat co-operative banks proceed on the principle of co-operation. Panipat co-operative
banks maintain the cash reserve and liquid assets in relation to deposit only.
To arrange the programs regarding the Economic welfare of its members.
This bank supervises the functioning of primary credit society and gives training, guidance
and advice to the employee of credit society only.
CHAPTER 3
To get basis for financial planning, analysis and decision making through financial
information.
3.3 Period of coverage:
I have chooses the period of coverage for the financial years i.e. 2006-2007 to 2010-2011
When a researcher is interested in knowing the characteristics of certain group such as age,
gender, education level, occupation, income, descriptive may be necessary. Descriptive studies
are factual and are very simple.
3. Causal design
As the name implies a causal design investigates the cause and effect relationship between
two or more variables. The two types of the causal designs are:
a) Natural experiments
b) Controlled experiments
The study report Analysis of a financial Statement is consider the descriptive research design.
CHAPTER 4
2009-2010
2010-2011
9,44,99,998.76
12,06,75,486.13
2,57,25,152
2,73,86,632
Direct fees
-----------------
-----------------
35,29,646.49
49,93,714.50
Law Fees
1,83,161
2,43,011.84
11,85,577.24
13,75,327.87
Audit Fee
4,80,090
3,95,517
Depreciation Fund
91,37,412.80
1,22,72,036
Stationary ,Printing
36,91,981.73
21,81,375.83
other Expense
2,80,33,592
4,32,28,357.91
Income Tax
1,87,02,860
2,05,00,000
Profit
3,14,80,142.42
4,05,77,583.46
Total
21,66,49,615.25
27,38,29,042.46
19,97,72,678
25,68,04,312.37
Commission Exchange
34,28,143.35
42,51,304.65
Donation
-----------------
------------------
Other Income
93,91,392
1,27,73,425.52
Total
21,66,49,615.25
27,38,29,042.46
Expences
Income
Balance Sheet
Particular
Liability
Share capital
Reserve fund
Subsidiary Fund
Deposit:
- Fixed Deposit
- Saving Deposit
- Current Deposit
Call & Short Time Deposit
Borrowing
Bills Payable
Interest Overdue
Interest payable
Other liability
Profit and Loss A/c
Total
Assets
Cash
Bank
Call & Short time Investment
Investment
Subsidiary Fund Invest
Loans and Advances
- Short term
- Moderate term
- Long term
Interest receivable
Bills Receivable
Branch adjustment
Building premises
Furniture & Fixture
Other Asset
Total
2009-2010
2010-2011
5,91,32,500
40,99,81,617
-----
7,28,65,400
26,07,59,206.11
79,05,92,313
93,86,53,426.84
76,00,70,549
93,43,53,950.77
55,49,46,207
71,67,94,729.78
--------44,24,274
38,27,498
5,80,51,785
335,61,147.97
13,60,00,222
14,97,24,949
7,88,68,009
9,82,13,380.70
3,14,80,142
4,05,77,583.46
2,88,35,47,600 3,44,23,72,149.87
8,65,50,365
48,83,88,452
----117,95,03,022
-----
8,82,44,531.98
35,34,85,910.13
1,67,11,43,767
31,56,02,553
31,43,99,482.44
30,46,65,311
38,75,76,985.41
32,85,98,967
45,68,21,245.85
9,22,37,735
7,41,53,273.97
44,24,274
38,27,498
----2,45,05,702
3,71,90,031.97
1,16,70,414
1,78,92,950.86
4,74,00,800
3,68,36,472.26
2,88,35,47,600 3,44,23,72,149.87
CHAPTER 5
INRTODUCTION OF FINANCIAL DEPARTMENT:Meaning:According to Himpton John A financial statement is an organized collection of data according to
logical and consistent accounting procedures. Its purpose is to convey an understanding of some
financial aspects of a business firm. It may show a position at a moment of time as in the case of a
balance sheet, or may reveal a series of activities over a given period of time as in the case on income
statement.
The analysis consists of the study of inter relationship between various items comprised in
financial statements to determine whether the earnings and the financial position of the company are
satisfactory. A number of devices are used in the analysis of financial statements, some of which are
as follows:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
Comparative Statements
Common size statements
Trend Percentages
Cash flow Analysis
Fund flow Analysis
Ratio Analysis
incomes. Such changes may be shown in absolute figures of in percentage forms. While
examining the comparative examined.
(b) Comparative balance sheet: the change taking place in assets and liabilities over a period of
years are revealed by comparative balance sheets. Such comparative balance sheets may show
absolute figures or even percentage of various figures may be shown. Such percentages are
generally based on value of total assets.
Sources of Funds
ii)
Application of Funds
The fund flow statement indicates changes in working capital which have taken place during the
year. But the management is more interested in the changes in cash inflow and outflow in the short
run. It is a historical statement which indicates the cash inflows and outflows during the last year and
would guide the management in framing policy regarding cash management. The cash budget shows
the projected inflows and outflows of cash for the future budget period, which the cash flow
statement is prepared on the basis of the basis of historical financial statements.
Use of cash flow statement
1. Cash flow statement facilitates to prepare sound financial policies. It also helps to evaluate the
current cash position.
2. A projected cash flow statement can be prepared in order to know the future cash position of a
concern so as to enable a firm to plan and coordinate its financial operations properly.
3. it helps the management in taking short-term financial decisions.
4. The statement explains the causes for poor cash position in spite of substantial profits in firms
by throwing light on various applications of cash made by the firm.
Common size Statements:Financial statements when read with absolute figures are not easily understandable. They are even
misleading the figures shown in profit & loss account and balance sheet are converted to percentage
so as to establish each element to the total figure of the statement and there statement are called
commonsize statements. When balance sheet and profit & loss account of the same concern for
several years or when balance sheet and profit & loss account of two or more than two concerns for
the same year are converted in to percentage form and presented as such, they are known as
comparative commonsize statement.
Interpretation:Profit & loss account figure is assumed to be equal to 100 and all other figure or expressed as
percentage to sales. Similarly, in balance sheet the total of assets and liability is taken as 100 and all
the figures are expressed as percentage of the total. The statement prepared is called Commonsize
Statement.
Trend Analysis:-
The comparative and Commonsize statements suffer from a major limitation that is absence of basic
standard to indicate whether the proportion of an item is normal or abnormal. Trend analysis
overcomes this limitation. This technique is also an important and useful of financial statement
analysis. The calculation of trend ratio involves the ascertainment of arithmetical relationship which
each item of several years to the same of base year.
This trend ratio is calculated only for some important item which can be logically converted with
other.
Common size statement analysis of Profit and loss account for year 2010 & 2011 in Panipat
panipat co-operative bank Ltd.
2009-2010
2010-2011
43.62
11.87
----1.62
0.085
0.55
0.22
4.22
1.70
12.94
8.63
14.53
100.00
44.07
10.00
1.82
0.09
0.05
0.14
4.48
0.80
15.80
7.50
14.82
100.00
92.21
1.58
93.78
1.55
Donation
Non Banking Income
Other Income
Total
--------6.21
100.00
----------4.67
100.00
Common size statement analysis of balance sheet for year 2010 & 2011 in Panipat panipat cooperative bank Ltd.
Balance Sheet
Particular
Liability
Share capital
Reserve fund
Subsidiary Fund
Deposit:
- Fixed Deposit
- Saving Deposit
- Current Deposit
Call and short term loans
Borrowing
Bills Payable
Interest Overdue
Interest payable
Other liability
Profit and Loss A/c
Total
Assets
Cash
Bank
Call & Short time Investment
Investment
Subsidiary Fund Invest
Loans and Advances
Interest receivable
Bills Receivable
Branch adjustment
Building premises
Furniture & Fixture
Other Asset
Total
2009-2010
2010-2011
2.05
7.81
-----
2.12
7.57
------
37.55
36.10
26.36
--------0.15
2.01
4.73
2.74
1.09
100.00
27.27
27.14
20.82
----------0.11
0.97
4.35
2.85
1.18
100.00
3.00
16.94
----40.91
----32.91
3.20
0.15
----0.85
0.40
1.64
100.00
2.56
10.27
-----48.55
-----33.57
2.15
0.11
-----1.08
0.52
1.07
100.00
Comparative statement analysis of profit and loss account for year 2010 & 2011 in Panipat
panipat co-operative bank Ltd.
2009-2010
2010-2011
Absolute
Expense
Interest on deposit and borrowing
Salaries allowance & Provident Fund
2010-2011
2010-2011
9,44,99,998
2,57,25,152
12,06,75,486
2,73,86,632
2,61,75,488
16,61,480
27.70
6.46
Director Fees
Rent, Tax, Insurance, Electricity
Law Fees
35,29,643,
1,83,161
49,93,714
2,43,012
14,64,071
59,851
41.48
32.68
11,85,577
4,80,090
91,37,412
36,91,981
13,75,328
3,95,517
1,22,72,036
21,81,376
1,89,751
(84,573)
31,34,624
(15,10,605)
16.01
(17.62)
34.30
(40.92)
Other Expense
Income Tax
Profit
Total
2,80,33,592
1,87,02,592
3,14,80,142
21,66,49,615
4,32,28,358 1,51,94,766
2,05,00,000
17,97,408
4,05,77,583
90,97,441
27,38,29,042 5,71,79,427
54.20
9.61
28.90
126.39
Income
Interest & Discount
Commission Exchange
19,97,72,678
34,28,143
25,68,04,312
42,51,305
5,70,31,634
8,23,162
28.55
24.01
Donation
Non Banking Income
Other Income
Total
--------1,34,48,792
21,66,49,615
1,27,73,426
27,38,29,042
--------(6,75,366)
5,71,79,427
(5.02)
126.39
Comparative statement analysis of balance sheet for year 2010 & 2011 in Panipat panipat cooperative bank Ltd.
Balance Sheet
Particular
Liability
Share capital
Reserve fund
Subsidiary Fund
Deposit:
- Fixed Deposit
- Saving Deposit
- Current Deposit
Call & Short Time Deposit
2009-2010
2010-2011
Absolute
2010
2010
5,91,32,500
22,53,32,015
-----
7,28,65,400 1,37,32,900
23.22
26,07,59,206
3,54,27,191 15.72
-----
79,05,92,313
76,00,70,549
55,49,46,207
-----
93,86,53,427
14,80,61,114
18.73
93,43,53,951 17,42,83,402
22.92
71,67,94,730
16,18,48,523
29.16
-----
Borrowing
Bills Payable
Interest Overdue
Interest payable
Other liability
Profit and Loss A/c
Total
Assets
Cash
Bank
Call & Short time Investment
Investment
Subsidiary Fund Invest
Loans and Advances
- Short term
- Moderate term
- Long term
Interest receivable
Bills Receivable
Branch adjustment
Building premises
Furniture & Fixture
Other Asset
Total
--------44,24,274
38,27,498
(5,96,776)
(13.49)
5,80,51,785
3,35,61,148 (2,44,90,637)
(42.19)
13,60,00,222
14,97,24,949
1,37,24,727
10.09
7,88,68,009
9,82,13,381 1,93,45,372
24.53
3,14,80,142
4,05,77,583 90,97,441
28.90
2,88,35,47,600 3,44,23,72,150
55,88,24,550
119.40
8,65,50,365
48,83,88,452
----117,95,03,022
-----
8,82,44,532 16,94,167
1.96
35,34,85,910 (13,49,02,542) (0.27)
----1,67,11,43,767 49,16,40,745
41.70
-----
31,56,02,553
30,46,65,311
32,85,98,967
9,22,37,735
44,24,274
----2,45,05,702
31,43,99,482
(12,03,071) (O.38)
38,75,76,985 8,29,11,674
27.21
45,68,21,246
12,82,22,279 39.02
7,41,53,274
(1,80,84,461)
(19.61)
38,27,498
(5,96,776)
(13.49)
----3,71,90,032 1,26,84,330
51.76
1,16,70,414
4,74,00,800
2,88,35,47,600
1,78,92,951 62,22,537
53.31
3,68,36,472
(1,05,64,328) (22.29)
3,44,23,72,150
55,88,24,550 119.40
RATIO ANALYSIS:
A Ratio is only a comparison of the numerator with the denominator. The term ratio refers to the
numerical or quantitative relationship between two figures, and obtained by dividing the former by
the latter. Ratios are designed to show how one number is related to another. It is worked out by
dividing one number by another.
Ratio analysis is an important and age old technique of financial analysis. Ratios are relative form of
financial data and very useful technique to cheque upon the efficiency of firm. Some ratios indicate
trend or progress or downfall of the firm.
MEANING OF RATIO:A ratio is only a comparison of the numerator with the denominator. The tern ratio reefers to the
numerical or quantitative relationship between two figures and obtained by dividing the former by the
latter.
Ratio analysis is an important and age old technique of financial analysis. The data given in financial
statements ratio are relative form of financial data and very useful techniques to cheek upon the
efficiency of a firm. Some ratio indicates the trend or progress or downfall of the firm.
Classification of Ratios:Ratio can be classified into different categories depending upon the basic of classification as under:
Profit & Loss Account Ratio:-
In this ratio accumulated on the basis of all items of the profit & loss account only Ex. Net profit
ratio, operating profit ratio, expenses ratio.
Balance sheet Ratio:In this ratios calculated on the basis of the figures of balance sheet only.Ex. Current ratio, liquid ratio,
debt-equity ratio, proprietary ratio.
Composite Ratio or inter statement ratio:
In this ratio is the based on figures of profit & loss account as well as balance sheet.Ex. Fixed assets
turnover ratio.
secrecy.
CURRENT RATIO:
Meaning:
Current ratio is the most common ratio for measuring liquidity. Being related to working capital
analysis it is also called the working capital ratio. Current ratio expresses relationship between current
assets and current liabilities
Purpose:
The current ratio of a firm measures in short term solvency. i.e. its ability to meet short term
obligation. As a measure of short term current financial liquidity.
It is calculated by dividing current asset by current liabilities
Current Ratio =
Current assets
Current Liabilities
Particulars
Current
Current Asset
Cash
Bank
Advance
Other Asset
Bills Receivable
Interest
Total
Current Liability
Bills Payable
Interest Payable
Saving Deposit
Current Deposit
Interest Overdue
Other Liability
Total
2009-10
2010-2011
8,65,50,366
48,83,88,452
----4,74,00,800
44,24,274
9,22,37,736
8,82,44,531
35,34,85,910
3,68,36,472
38,27,498
1,67,11,43,767
71,90,01,628
2,14,97,10,680
44,24,274
13,60,00,222
76,00,70,549
55,49,46,207
5,80,51,785
7,88,68,009
38,27,498
14,97,24,949
93,43,53,950
71,67,94,730
335,61,148
9,82,13,380
1,59,23,61,046
1,93,64,75,655
Ratio : =
71,90,01,628
2,14,97,10,680
1,59,23,61,046
= 0.45
1,93,64,75,655
=1.11
Interpretation:
here, it shows that the bank has been decrease in 2010 current ratio is 0.45:1 to in 2011 current ratio is
1.11 which is not satisfactory so, can be Improved by better turnover and profit.
2009-2010
8,65,50,365
117,95,03,022
1,26,60,53,387
1,59,23,61,046
2010-2011
8,82,44,532
1,67,11,43,767
1759388300
1,93,64,75,655
1,26,60,53,388
1,93,64,75,655
1,59,23,61,046
=
0.80
1,75,93,88,300
0.91
PROPRIETARY RATIO:
Meaning:
This relates the shareholders fund to total assets. It is a variant of the debt equity ratio. This ratio
shows the long term or future solvency of the business. It is calculated by dividing shareholders funds
by the total asset.
Purpose:
The purpose of proprietary ratio is indicate available to creditors and general financial strength of the
firm.
Proprietary Ratio= Shareholders Fund
Total Asset
Particulars
Shareholders Fund
Capital
Reserve
Subsidiary Fund
P&L Account
Total
Total Asset
2009-2010
2010-2011
5,91,3,2500
9,65,59,375
----3,14,80,142
53,20,74,401
7,28,65,400
10,49,50,670
-------4,05,77,583
2,88,35,47,600
Proprietary Ratio
32,64,98,777
53,20,74,401
2,26,90,56,555
2,88,35,47,600
0.14:1
0.18:1
Interpretation:
The proprietary ratio is increase by 0.13:1 to 0.17:1 in the 2010 which is shown by the general
strength of the bank or company. It is very important to creditors as it helps them to find out the
proportion of shareholders funds in the total assets used in the business. In this ratio is always down
from the good position and low ratio indicate greater risk to creditors. A ratio below 50% may be
alarming for the creditors and heavily lose for company and its account is liquidation.
Meaning:
The financing of total asset of a business concern is done by owners equity as well as outside debts.
This ratio indicates the relative proportions of debt and equity in financing the asset of a firm.
It is also known as external internal equity ratio. Debt equity ratio is determined to ascertain
soundness of the long term financial policies of a company.
Particulars
Long Term Debt
Fixed Deposit
Other Borrowing
Total
79,05,92,313
----79,05,92,313
Shareholders Fund
46,91,14,117
Interpretation:
2009-2010
2010-2011
79,05,92,313
43,10,13,335
46,91,14,117
= 1.34
= 1.69
Debt equity ratio has been increase in year 2009 to 2010 that is 11.05 and 13.37 respectively. It
indicates the margin of safety to long term creditors. A high ratio shows the claim of creditors is
greater than those of owners.
SOLVENCY RATIO:
Meaning:
It is also known as debt ratio. It is difference of 100 and proprietary ratio. This
ratio is found out between total asset and external liabilities of the company.
Purpose:
This generally refers to the capacity or ability of the business to meet its short term and long term
obligations. If a company in a position to pay its long term liabilities easily it is said to possess long
term solvency.
Solvency Ratio
Outside Liabilities
Total Asset
Particulars
Outside Liability
Total Liabilities
Shareholders Fund
Total
2,88,35,47,600
9,06,12,642
2,79,29,34,958
Total Asset
2,88,35,47,600
Solvency Ratio:
2009-2010
2,18,64,17,069
2010-2011
2,26,90,56,555
= 0.96:1
2,79,29,34,958
2,88,35,47,600
0.97:1
Interpretation:
In this ratio total assets are for more than external liabilities the company is treated solvent. In
solvency ratio in 2009, 0.976% decrease in 2010 0.979:1 it means that outside liability is always less
than total assets.
Net Sales
100
Net Profit
Particulars
Net Sales
Interest Receivable
Commission
Total
2009-2010
9,22,37,735
34,28,143
9,56,65,878
Net Profit
3,14,80,142
2010-2011
3,02,24,486
3,14,80,142
7,55,32,888
9,56,65,878
= 40.02
= 32.91
Interpretation:
In this ratio, in 2009, 40.02% and 2010 decrease in 2010, 32.91%. It is more useful for the further
condition of the firm.
Expenses Ratio:
This ratio indicates the efficiency or otherwise in the incurrence of administrative expense. It
is expressed as a percentage.
The purpose of this ratio is that income is rise than expenditure it is also raised.
Particular
Total expenses
Staff, salaries, allowance
Director fees
Legal fees
Rent, tax, insurance
Postage, telegram
Audit fees
Stationary, printing
Other expenses
Total
Total income
Expenses ratio =
2009-2010
2,57,25,152
1,83,161
35,29,646
11,85,577
4,80,090
36,91,981
2,80,33,593
6,28,29,199
21,66,49,615
Total expenses
X 100
Total incomes
= 6,68,56,334 X 100
19,92,78,464
= 33.55%
= 6,28,29,200 X 100
21,66,49,615
=
29.00%
2010-2011
Net Profit X
100
Shareholders Fund
Particulars
Net Profit
Shareholders Fund
Return
2009-2010
3,14,80,142
46,91,14,117
2010-2011
of Share Holder
equity:
=
3,02,24,486
3,14,80,142
43,10,13,335
46,91,14,117
=7.01%
=6.71%
Interpretation:
In this ratio, in 2009, 57.66% and 2010 decrease in 2010, 53.24%. The term net profit as used here
means net income after payment of interest and tax including net non operating income. It is the final
income that is available for distribution as dividend to shareholders.
Net Profit
Capital Employed
Particular
Net Sales
2009-2010
9,56,65,878
2010-2011
Capital Employed
Equity
Reserves
Total
5,91,32,500
40,99,81,617
46,91,14,117
Return on Asset =
7,55,32,888
9,56,65,878
26,60,49,805
46,91,14,117
= 28.39%
= 20.39%
Interpretation:
In this ratio, decrease the percentage in 2009, 28.39% to in 2010, 20.39%. Lower ratio shows lower
profit and higher ratio shows higher profit.
Particular
Creditors
Fixed Deposit
Saving Deposit
Current Deposit
Bills payable
Interest Payable
Total
Interest on deposit and
borrowing
Interest on deposit and borrowing
2009-2010
79,05,92,313
76,00,70,549
55,49,46,207
44,24,274
13,60,00,222
2,10,56,09,070
13,60,00,222
2010-2011
1,72,06,78,495
10,68,37,058
= 16.11
2,10,56,09,070
13,60,00,222
= 15.48
Interpretation:
In this ratio creditors are decrease in all year. In year 2009, 20.51 times and increase in year
2010 is 22.08 times. It will be good for the bank. A higher ratio shows that the creditors are not paid
in time.
CHAPTER 6
FINDINGS
Panipat Panipat co-operative bank have good image in the co-operatice society because
panipat Panipat co-operative bank provides speedy, effective and good interest rate on
deposit.
Bank has continuously got the audit class A in every year.
The varchha panipat co-operative bank get award in district co-operative society for
providing good service to their customer in 2000 2001 and Rashtriya Viskas Rattan gold
award from International Integration and growth, and highest blood donation collection
award in 2008 once more best co-op bank in surat dist. For the year 2007-2008.
The profit of the bank is at increasing rate. By honoring the social welfare concept the bank
is providing to the society welfare at a large scale.
The bank has good market potential so that it can enhance or expand its business in future.
Net profit of bank is in 2009, 3.02 crores and in increasing manner in 2010 i.e. 3.15 crores
Share capital is in 2009, 5.24 crores and in 2010 5.91 crores. Working capital in 2009,
226.96 crores and in 2010 279.11 crores.
SUGGESTIONS
SWOT ANALYSIS:STRNGTH: The staff member of the concern is well-experienced and trained enough.
The bank is providing training to new employees.
The accounts of share holders as well as customers are fully secured by insurance.
The bank has good brand image.
The turnover of men power in the bank is very less and staff members are well satisfied with
the facilities given to them.
The profit of the bank is at increasing rate.
Customers are serviced in the best manner.
By honoring the social welfare concept the bank is providing to the society welfare at a large
scale.
WEAKNESS:-
CHAPTER 7
2009-2010
2010-2011
9,44,99,998.76
12,06,75,486.13
2,57,25,152
2,73,86,632
Direct fees
-----------------
-----------------
35,29,646.49
49,93,714.50
Law Fees
1,83,161
2,43,011.84
11,85,577.24
13,75,327.87
Audit Fee
4,80,090
3,95,517
Depreciation Fund
91,37,412.80
1,22,72,036
Stationary ,Printing
36,91,981.73
21,81,375.83
other Expense
2,80,33,592
4,32,28,357.91
Income Tax
1,87,02,860
2,05,00,000
Profit
3,14,80,142.42
4,05,77,583.46
Total
21,66,49,615.25
27,38,29,042.46
19,97,72,678
25,68,04,312.37
Commission Exchange
34,28,143.35
42,51,304.65
Donation
-----------------
------------------
Other Income
93,91,392
1,27,73,425.52
Total
21,66,49,615.25
27,38,29,042.46
Expences
Income
Balance Sheet
Particular
Liability
Share capital
Reserve fund
Subsidiary Fund
Deposit:
- Fixed Deposit
- Saving Deposit
- Current Deposit
Call & Short Time Deposit
Borrowing
Bills Payable
Interest Overdue
Interest payable
Other liability
Profit and Loss A/c
Total
Assets
Cash
Bank
Call & Short time Investment
Investment
Subsidiary Fund Invest
Loans and Advances
- Short term
- Moderate term
- Long term
Interest receivable
Bills Receivable
Branch adjustment
Building premises
Furniture & Fixture
Other Asset
Total
2009-2010
2010-2011
5,91,32,500
40,99,81,617
-----
7,28,65,400
26,07,59,206.11
79,05,92,313
93,86,53,426.84
76,00,70,549
93,43,53,950.77
55,49,46,207
71,67,94,729.78
--------44,24,274
38,27,498
5,80,51,785
335,61,147.97
13,60,00,222
14,97,24,949
7,88,68,009
9,82,13,380.70
3,14,80,142
4,05,77,583.46
2,88,35,47,600 3,44,23,72,149.87
8,65,50,365
48,83,88,452
----117,95,03,022
-----
8,82,44,531.98
35,34,85,910.13
1,67,11,43,767
31,56,02,553
31,43,99,482.44
30,46,65,311
38,75,76,985.41
32,85,98,967
45,68,21,245.85
9,22,37,735
7,41,53,273.97
44,24,274
38,27,498
----2,45,05,702
3,71,90,031.97
1,16,70,414
1,78,92,950.86
4,74,00,800
3,68,36,472.26
2,88,35,47,600 3,44,23,72,149.87
Author name
www.google.com
www.varachhabank.com
www.rbi.com
Management Accounting
Website
Website
Website
By R. S. N. Pillai Bagavathi
Management Accounting
By Ravi M. Kishore