8/13/2019 SPV004hgjhg

1/119

A

SUMMER INTERNSHIP PROJECT REPORT

ON

ANALYSIS OF FINANACIAL STATEMENT

Of

Shree Rajkot Disrtict Coo!erati"e #a$k

Pre!are% #&

Sorathi&a Pi&'sh ()

M)#)A) Se* III

Aca%e*ic Year +,-,+,--

E$ro..*e$t No/ -,001,23+,2-

SHREE SUNSHINE EDUCATION TRUST

DEPARTMENT OF MANA4EMENT

RAJ5OT 6IN4'jarat7

S'8*itte% / 4'jarat Tech$o.o9ica. U$i"ersit&

U$%er the 4'i%a$ce of

8/13/2019 SPV004hgjhg

2/119

HEAD OFFICE

8/13/2019 SPV004hgjhg

3/119

DECELARATION

I undersigned Mr.Sorthiya Piyush V. Stuudent of department of Management, IIInd

Semester hereby declare that the report for Summer Training Project entiled

Rajkot District Co-oprative Bankfrom 1st June, !11 to 1"th July, !11 is my

o#n #or$ and has been carried out under the guidance of %ssistant prof&

Mr.Kaushal Sirof '(P%)TM(*T + M%*%-(M(*T, SR!! S"#S$#!

!D"C%&$'# &R"S&, )aj$ot .I*/-ujarat0&

This #or$ has not submitted to any other uniersity for any e2amination&

Date(-

Place(- Rajkot S$)#%&"R!(-****************

Piyush Sorathiya

8/13/2019 SPV004hgjhg

4/119

3no#ledge is the ocean that cannot be fathomed the deeper you go, the

more you see its unbounded profundity

4hange in occurring at an accelerated rate& Today is not li$e yesterday and

tomorro# #ill not li$e be today5s mar$et is ho# to succeed in the dynamic

enironment that surrounds the corporate #orld& M6% one of those professional

courses #hich help students to $eep pace the changing trends in business and its

surrounding enironment&

The subject 7Practical Studies5 particularly helps students to $no# the actual

corporate #orld, the an2ieties and stress associated #ith the job #hich cannot be

understood sitting in a classroom&

%s students of M6% #e are re8uired to do a surey in any unit of national or

international repute, so as to gain practical $no#ledge about the preailing mar$et

conditions, for this purpose, I hae chosen )%J3+T 'IST)I4T 4+/+P()%TI9(

6%*3 ,as ban$ing business today is rapidly increasing and is one of the most

competitie businesses& I #as fortunate to get an opportunity to #or$ #ith such a

professional unit&

Master of 6usiness %dministration course is design #ith the objectie of preparing

the most competent person #ith achiee this objectie in the best possible manner&

It gies me immense pleasure to present this project report& It is of great

opportunity for a management student to get broad e2posure to the co operate #ould

during training for :" days&

8/13/2019 SPV004hgjhg

5/119

ACKNOWLEDGEMENT

To ac$no#ledgement is ery great #ay to sho# your gratitude the person

#ho has contributed in your success in one or other #ay& ;e are great full of our

'irector Mr&Manish Sir, for proiding me an opportunity to carry out my training of

Shree )aj$ot district co/operatie ban$

8/13/2019 SPV004hgjhg

6/119

List of contentOverview of banking

P%R&$C"%R

1Overview of banking

Birdview of RDC bank?

SWOT analysis:

Analysis of financial statement"

Research Methodology@

indings

AS!ggestion

B

Concl!sion1! Bibliogra"hy

8/13/2019 SPV004hgjhg

7/119

!/!C"&$V!S0 S"MM%R1

Shree )aj$ot 'istrict 4o/+peratie 6an$

8/13/2019 SPV004hgjhg

8/119

OVERVIEWOVERVIEWOFOF

BANKINGBANKING

8/13/2019 SPV004hgjhg

9/119

Index

P%R&$C"%R

1Introduction

+rigin of #ord 76an$5?

'efinition of ban$

: Gistory of ban$ing

"Types of ban$

@)ole of ban$

A'efinition of co/operatie ban$

B+rganaiFation Structure of 4o/operatie 6an$

CA/ Principal of co/operatie ban$

1!Importance of co/operatie ban$

8/13/2019 SPV004hgjhg

10/119

OVERVIEW OF BANKING SECTOR

$#&R'D"C&$'#(-

In the economic deelopment of a nation ban$s occupy in

important place& 6an$ing institutions from an important part of the money mar$et and

are indispensable in a modern and are indispensable in a modern deeloping

society& 6an$ing is the life blood of modern economic& It may truly be said that

modern commerce is so dependent upon ban$ing that any cessation of ban$ing

actiity& (en for a day or t#o, #ould completely parlay the economic life of a nation&

ro its original narro# scope and modest purpose of ta$ing care of other people5s

money and lending a part of it& 6an$ing has deeloped to such an e2tent that, in

countries li$es (ngland, rance, and the H&S&%&

The importance of co/operatie ban$ing institutions in India has been

considered as the bac$bone of rural economy& %t the industrial deelopment of the

country is ta$ing place ban$ing serices country is ta$ing place ban$ing serices are

also e2panding and efficiency of co/operatie ban$ has a great impact on the

performance of the ban$ in arious channels& 'ue increasing trend in globaliFation

and liberaliFation in the serice industry li$e ban$ing section co/operaties ban$s are

playing crucial role before their competitors& *o# a days co/operatie actiities of

-ujarat is on the top and #hole economy co/operatie actiities are such as it not

depend on any got& rules and regulations&

8/13/2019 SPV004hgjhg

11/119

ORIGIN OF WORD BANK

%ccording to some authors, the #ord 76an$5, itself is deried from the#ord 76ancus5 or 6an8uet that is, a bench& The early ban$ers, the Je#s in

8/13/2019 SPV004hgjhg

12/119

DEFINATION OF BANKING

% ban$ company is defined as a company, #hich transacts the

business of ban$ing in India& The ban$ing regulation %ct defines the business as

ban$ing by stating the essential functions of the ban$& It also states the arious other

businesses a ban$ing company may be engaged in and prohibits certain business to

be performed by it&

The term ban$ing is defined as accepting& or the purpose of

lending of inestment of deposits of money from the public repayable on demand or

other#ise and #ithdra# by che8ue draft, order or other#ise&

8/13/2019 SPV004hgjhg

13/119

HISTORY OF BANKING INDUSTRY

6an$ing is as old as the authentic history and the origins of modern

commercial ban$ing are traceable in ancient times& The *e# Testament mentions

about the actiities of the money changers in the temples of Jerusalem& In ancient

-reece around !!!6&4& the famous temples of (phesus& 'elphi and +lympia #ere

used as depositories for people5s surplus funds and these temples acted as the

financial agents until public confidence #as destroyed by the spread of disbelief in

the religion&

Traces of credit by compensation and by transfer orders are found is

%ssyria& Phoenician and (gypt before the system attained full deelopment in

-reece and )ome& The boo$s of the old Sans$rit la#gier& Manu are full of

regulations of regulations goerning credit& Ge spea$s of judicial proceedings in

#hich credit instruments #ere called for interest on loans on ban$ers, users and

een of the rene#al of commercial papers&

The beginning of (nglish ban$ing may correctly be attributed to

8/13/2019 SPV004hgjhg

14/119

comprehensie ban$ing la#s e2cept the ban$ charter %ct& 1BA@ #hich regulated the

three presidency ban$ and the Indian companies %ct, 1C1? proided some

safeguards against ban$ failures&

In India the 6ritish goernment started a central ban$ called the )esere

ban$ of India as a priate sector in 1C?"& after independence, the ne# national

goernment nationaliFed it by passing the )esere ban$ of India %ct in 1C:C has

some proisions to foster a sound and healthy ban$ing system in India& To regulate

the ban$ing business the %ct ested enormous po#ers of superision and control in

the hands of the )esere ban$ of India&

)esere ban$ is the ban$er to the ban$s/commercial co/operatie and

regional rural ban$s& This relationship is established once the name of a ban$ is

included in the second schedule to the )esere ban$ of India %ct, 1C?:& Such ban$s

called the scheduled ban$s are entitled to aail of the facilities of refinance from the

)esere 6an$&

Since 1C@@ the state co/operatie ban$s hae also been made eligible of

inclusion in the second schedule to the %ct& The regional rural ban$s established

since 1CA" also enjoy the status of scheduled ban$s& The public sector ban$s hae

been notified as scheduled ban$s by the central goernment&

8/13/2019 SPV004hgjhg

15/119

8/13/2019 SPV004hgjhg

16/119

Reserve Bak !" I#$a %

The -oernment had then passed )esere 6an$ of India %ct, 1C?:and established the )esere 6an$ of India #ith effect from 1 st %pril 1C?"& Theprincipal aim behind this #as to organiFe proper control oer the currencymanagement in the interest of country benefits and to maintain financial stability&;ith this, the )6I mainly loo$s after the follo#ing important functions>

To $eep effectie control oer creation of credits and currency supply

To control the 6an$ing transactions of 4entral and State -oernments

To organiFe control oer oreign 4urrency Transaction

To assist for improement in financial aspects of the country

Re&$!a' R(ra' Baks )RRB0>/

)egional rural ban$s are added in Indian ban$ing since +ctober 1CA" the

goernment of India in term of the proision of the regional ban$s %ct 1CA@ has

established these ban$s& The distinctie feature of regional rural ban$s is that

thought it is a separate body&

4orporate #ith the commercial ban$ #hich has sponsored the proposal to

establish it& The central goernment, #hile establishing a regional rural ban$ at the

re8uest of a commercial ban$, shall specify the local limits #ithin #hich it shall

operate& The regional rural ban$ may establish its branches of agencies at any place

#ithin the notified area& State ban$ of saurashtra sponsors regional rural ban$s in

saurashtra&

Na*$!a'$+e Baks%,

The ban$ing company act establishes it in July 1C@C by nationaliFation of

1: major ban$s of India& The sent percent o#nership of the ban$ is of goernment of

India&

S*a*e Bak Gr!(-%,

The state ban$ of India #as established under the state ban$ of India %ct,

8/13/2019 SPV004hgjhg

17/119

rest of the part is some priate o#nership in the share capital of state ban$ of India&

The state ban$ of India o#ns the subsidiary ban$s

C!,O-era*$ve Bak%,

State co-operative 2ankState co/operatie ban$ means the principal co/operatie society in the

state& The primary objectie of #hich is the financing other co/operatie

societies in the state&

Central3District co-operative 2anks% central'istrict co/operatie ban$ means the principal co/operatie

society in a district& The primary objectie of #hich is the financing of other co/

operatie in that particular district&

Pri4ary3"r2an co-operative 2anks

Pr$va*e Bak%,

Primary objectie of principal business of #hich the transaction is of

ban$ing business and paid up share capital and resere of #hich are not less

than rupees 1,!!,!!! and bye/la#s of #hich do not permit admission of any other

co/operatie society as a member&o

#e5 private 2ank

These ban$s lead the mar$et of Indian ban$ing business in ery short

period& 6ecause of its ariety of serices and approach to handle customer,

also because of long #or$ing hours and seed of serices& This is also

registered under the company %ct 1C"@&

F!re$& Bak%,

oreign ban$ means multi/countries ban$, in case of India foreign ban$s

are such ban$s #hich open its branches office in India and their head office is

outside of India&

8/13/2019 SPV004hgjhg

18/119

DEFINITION OF CO,OPERATION

. calvert 6e+ine co-operation(-

%s a from organiFation, #here in persons oluntarily associate together as

human beings, on a basis of e8uality for the promotion of the economic interest of

the seles&

Mr. Merrich M. &. 7899 6e+ines(-

4o/operation is the act of persons, oluntarily united for utiliFing reciprocally

their mutual management to their o#n forces, resources or both under their common

profit of loss

8/13/2019 SPV004hgjhg

19/119

ORGANI.ATIONAL STRUCTURE OF CO,OPERATIVE BANKS%,

The co/operatie ban$s hae been established under the co/operatie

societies %cts of different states& Gence the state goernments regulate these ban$s&

+nly the state co/operatie ban$s hae assessed to the resere ban$ of India&

The co/operatie ban$s hae a three/tier set up& The state co/operatie ban$ is the

ape2 institution in a state, #hile central district co/operatie ban$ function at district

leel and primary credit societies #or$ at the illage leel& 4o/operatie ban$sfunction #ith in a gien area& Their operations are restricted to a particular state in

case of a state %pe2 ban$, a particular district incase of a district co/operatie ban$

and to a local area incase of a society& It proceeds on the principals of co/operation&

'r,ani:ational structure o+ co-operative 2anks(-

.10 Primary co/operatie ban$s

.0 State co/operatie ban$s

.?0 'istrict co/operatie ban$s

Co-opreative

2ank

State coo!reati"e

#a$k

Pri*ar& co

o!reati"e 8a$k

District co

o!reati"e 8a$k

8/13/2019 SPV004hgjhg

20/119

ROLE OF CO,OPERATIVES IN INDIAN ECONOMY

The co/operatie moement in India, particularly co/operaties ban$ing

is one of the biggest sectors in the economy #hich played an important role in

national agriculture production and income generation by #ay of more than @!

share in agricultural credit disbursement&

;ith the adent of liberaliFation and globaliFation, policy of -oernment

of India, it has become necessary to ma$e co/operaties more competitie and

mar$et oriented& The old ision of co/operaties as merely goernment

sponsored institutions or as indiidual drien organiFation #ould hae to gie #ay

to a ne# ision of co/operaties #here in the co/operatie become competitie

business units to play an actie and effectie role in economic #elfare of its

members& This calls for creation and deelopment of ne# type of co/operaties

institutions and re/engineering and re/innoation of e2isting co/operaties to meet

the challenges of ne# economic scenario&

The highly liberaliFed mar$et economy, co/operaties also proide a

protectie umbrella to the marginaliFed indiiduals& 4o/operaties also proide

protection to the ictims of the ma$e forces& Self help groups and co/operaties

are important organiFational forms that sere the causes of the Surial of the

#ea$est& They are closer to the organiFational innoation of a neo/trusteeship

concept #here in the concerns for the consumers also find an e2pression&

8/13/2019 SPV004hgjhg

21/119

/ PRINCIPALES OF CO,O-era*$ve BANK

;7< Voluntary association or open 4e42ership (

The resolution of the congress points out& Membership of a co/operationsociety should be oluntary and aailable #ithout artificial restriction of any social,political, racial, or religious discrimination to all persons #ho can ma$e use of itsserices and the accept the responsibilities of membership&

;=< De4ocratic control (

The resolution of the congress points out> 4o/operatie societies aredemocratic organiFations& Their affairs should be administration by persons electedor appointed in a manner agreed by the members and members should enjoy e8ualrights of oting .one member, one ote0 and participation in decisions&

;9< Me42ers econo4ic participation (

Members contribute e8uitably to and democratically control the capital of theirco/operaties& Members usually receie limited compensation, if any on capitalsubscribed a condition of membership& Members allocate surpluses for any or all ofthe follo#ing purpose deeloping their co/operatie& Supporting other actiitiesapproed by the membership&

;>< %utono4y an6 in6epen6ence (

4o/operatie is independence self help organiFations controlled by their

member& If they enter into agreements #ith other organiFations includinggoernments or raise capital from e2ternal sources, they do so on terms that ensuredemocrat control by their member and maintain their co/operatie autonomy&

;?< Co-operative e6ucation trainin, an6 in+or4ation (

%ll co/operatie societies should ma$e proision for the education of theirmember, officers, and employees and of the general public, in the principles andtechni8ues of co/operation, both economic and democratic&

;@< Mutuality or co-operation a4on, co-operatives (

%ll co/operatie organiFations, in order to best sere the interests of theirmember and their communities should actiely co/operatie in eery practical #ay

8/13/2019 SPV004hgjhg

22/119

4o/operaties #or$ for the sustainable deelopment of their community5sthrough policies approed by their members&

$4portance o+ co-operative

$4portance o+ co-operative 2ankin,(-

Co-operative 2ank is use6 in the +ollo5in, 5ays(

It is a superior institutional arrangement for financing operations& 4o/

operatie ban$s after loans to farmer borro#ers& So that the farmers mightutiliFe the amount for increasing agricultural production and rising their standardof liing&

-enerally spea$ing people are conseratie #hen they can5t translate theirplans into action due to their inability regarding financial handicaps& 4o/operatie ban$s ma$e persons dynamic by offering them the necessaryfinancial assistance&

% strong and stable co/operatie ban$ in a rural area faces a large number of

borro#ers from the clutches of money/lender and constrains the latter to reducetheir rate of interest if they #ant to continue in business& 4onse8uently the

prohibit margin of money/lenders has been greatly reduced&

4o/operatie ban$s not only stimulate seeral economic actiities bit also help

on bringing about rural reorientation by changing the thin$ing and behaior ofthe people for their o#n adantage and for the benefit of the nation&

8/13/2019 SPV004hgjhg

23/119

B#RD$#%W O RA&'OTB#RD$#%W O RA&'OTD#STR#CTD#STR#CT

CO(O)%RAT#$% BA*'CO(O)%RAT#$% BA*'

8/13/2019 SPV004hgjhg

24/119

INDEX

P%R&$C"%R

1Introduction

Gistory of ban$

? Profile of )'4 ban$

:+rganisation chart

"6oard of 'irectors

@ 9ision, Mission K 9alues

A%chieements K Milestone

B+preation of ban$

C6an$ing serices

8/13/2019 SPV004hgjhg

25/119

INTRODUCTION

The co/operatie ban$ of )aj$ot ltd& popularly $no#n as )'4 ban$ isestablished on 1C"C under the strong, effectie leader ship of one of the nationalco/operatiehero honor Shri 9ithalbhai )addiya #ith the intention of surie thecommonman&

The local intensity of the ban$ in its customer centric approach, hassle freee2ecution of the decision K technologies are their main difference from commercialban$s, also high leel of commitment at all leels of management K self committedground leel staff ma$es them different from other commercial ban$s&

%t present )'4 ban$ has achieed a $ey position in the mar$et ofSaurashtra& It has 1CL1 Gead office in all oer Saurashtra including main branch

#ith the adanced technologies and educated staff, as it said that In the emergingcompetitie business enironment 4o/operatie ban$s #ho adhere to strictfinancial discipline& +nly #ill surie +n this basis at present )'4 ban$ isbecomingmore prestigious in the ban$ing sector&

8/13/2019 SPV004hgjhg

26/119

HISTORY OF RDC BANK

Shree Rajkot District Co-'perative Bank t6& (stablished on 7st

'cto2er 78?8.Then after it al#ays get more and more achieements today&There are total AC1 officers in 1C branches including main branch also among

them& More the 1B! officers are being trained at Pune, 6anglore and

8/13/2019 SPV004hgjhg

27/119

PROFILE OF THE BANK

*ame of the 4ompany >/ )aj$ot district 4o/+peratie 6an$ / 1C"C

%ddress >/ Shri )aj$ot district 4o/+peratie 6an$ / !B1/?1@"!/"1/"/"&

)egistered +ffice >/ Shree )aj$ot district co/operatie ban$ ltd&

Jilla 6an$ 6haan,

3asturba )oad,

)aj$ot / ?@!!!1&

)egistration *o& >/ :C:!>1C"C

;ebsite >/ ###&rdcban$&in

(/mail %ddress >/ infordcban$&in

orm of organiFation >/ 4o/+peratie / 6&M&Sangani&

http://www.rdcbank.in/http://www.rdcbank.in/

8/13/2019 SPV004hgjhg

28/119

CHAIRMAN

(ICE CHAIRMAN

DIRECTORS

MANA4IN4 DIRECTOR

MANA4ERS

PERSSONAL

MANA4ER

4ENERAL

MANA4ER

CLER5 CLER5

PEON PEON

ORGANISATION CHART

8/13/2019 SPV004hgjhg

29/119

LIST OF BOARD OF DIRECTORS

Sr #o #%M! P'S&

1 SG)I 9ITGG%

8/13/2019 SPV004hgjhg

30/119

BRANCH NETWORK

Presently the ban$ has been licensed 1?? branches by the )6I& )'4

ban$ is ta$ing greatest care to ensure that each branch is a compressie

reflection of the brand& %ll branches are fully computeriFed&

Strategically located, designed and e8uipped to consistently delier a ne#

Nage branch ban$ing e2perience& %ll the branches are ery #ell managed by #ell

trained staff and maintain the reputation of the ban$& )ecently )'4 ban$ has

made resere of )s " crores for the deelopment of the core ban$ing system&

8/13/2019 SPV004hgjhg

31/119

AWARDS AND CERTIFICATE %,

=(%) >/1CCC/!! 6=> / %T%< 6IG%)I 6%JP%I .P&M0

=(%)>/ !!!/!1 6=>/

J%S;%*T SI*G .&M&0

=(%)>/!!A/!B 6=>/P&4GI'%M6%)%M .&M&0

8/13/2019 SPV004hgjhg

32/119

The )aj$ot district co/operatie ban$ is an agricultural ban$ and it isalso based on the deelopment of farmers and agricultural deelopment& %nd alsoour economy is also based on deelopment of illages& %nd the deelopment ofillages is connected #ith the deelopment of farming&

So, the )'465S main objectie is to deelop the farming nation anddeelopment of families #hich are liing in illages& or the speed of deelopment,)'46 may try to increase the deelopment at farming field&

VISION 1MISION 2 VALUE OF BANK

V$S$'#

8/13/2019 SPV004hgjhg

33/119

8/13/2019 SPV004hgjhg

34/119

To maintain e2cellence in operation K management by bringing I

transparency K integrity&

To emerge as symbol of public trust K confidence by creating a positie

image

To ensure speedy K satisfactory customer serices through continuous

product innoation K aggressie, mar$eting strategies&

To adopt policy for technological up gradationK adancement to boost up

total computeriFation K inter branch connectiity for all the branches&

To deelop K motiate human resources there by cultiating processional

culture in the ban$ing operations

To strie for continuous gro#th K profitability through branch e2pansion K

moderniFation

To introduce more %TM centers K arious plastic products for better

customer serices&

To maintain the asset 8uality at the optimum leel by continuous efforts for

credit ris$ management&

To proide multi dimensional serices to customers by incorporating

arious modern serice areas li$e insurance, bill collection and proidingone door serice to clients&

To e2plore more non/fund based business li$e letter of credit, ban$guarantee, custodial serices to increase ban$5s non interest income&

To achiee business turnoer of )s&@"! cores K net #orth of B! cores by

!1!&

To continue to maintain the *(T *P% at ()+ leel&

To plan 6an$5s balance sheet #ith judicious %

8/13/2019 SPV004hgjhg

35/119

2. Markeiting Department

3. HR Department

4. Finance Department

7< 'peration Depart4ent(-

SERVICES PROVIDED BY BANK

The arious serices proided by the serice sector or a ban$ are called astheir area of operation& % ban$ conducts arious operations li$e current ac, saingac, loc$er facility, fi2ed deposit, %TM, insurance, loans to customers etc&

Savin, %3c. acility(-

The main purpose of saing ac is to retain the saing made by the people& Itcan be operated by anyone #ho #ants to sae some part of their money li$ehouse#ies, students, aged people, businessmen etc& Saing accountholders earnincome on their saing in the form of interest gien by ban$ : p&a&

Current %3c. acility(-

This acility Is -ien To The 6usinessmen or The Smooth unctioning +fTheir 6usiness& 4urrent %ccountholders 'o *ot -et Interest +n

Their 'eposits&

iEe6 Deposit(-

It is a special type of saing ac #here fi2ed sum of money isdeposited for a specific time period& The rate of interest is 8uite highas compared to saings ac& The main purpose of ' is to get afi2ed sum of money on maturity&

6ut, in case of ' #ithdra#al is not allo#ed and deposit isalso allo#ed only once& In case of emergency, if the customer

#ishes to use the ' amount, he has to brea$ his ' for #hich 1interest is deducted&

&a2le sho5in, current Rate o+ interest on D 5.e.+

73>3=77

&i4e Perio6 Rate '+ $nterest

1" to :" days "&!!

:@ to C! days "&"!

C1 to 1AC days A&!!

1B! to 1AC days A&"!

1 to years C&!! to ? tears C&"

8/13/2019 SPV004hgjhg

36/119

It is mainly concerned #ith the clearance of differenttypes of che8ues& It erifies the signatures of theaccountholders and balances of the accounts& ollo#ing arethe main types of clearing&

+ut#ard clearing

In#ard clearing

Gigh alue clearing

Minimum commission

Speedy 4ollection of 4he8ues K 6ill

/

De4an6 Dra+t 3 'BC 3 $BC (-It is one type of facility gien to the customer for the deposit and #ithdra#al of

their money from their ac& It is li$e che8ue through #hich customer can use thisfacility&

oan (-)'4 more concentrated on the %griculture loan and they had a limit for the

issued loan per hade up to )s& "!,!!!/ and if anyone#ants more they can ta$e on the name of their familymembers&

o Mortgage

8/13/2019 SPV004hgjhg

37/119

%&M acility (-

%TM has gien a ne# dimension to ban$ing by giingrise to self serice ban$ing& 4ustomer hae long beenconstrained by conentional ban$ing serices #hich hae been

characteriFed generally by fi2ed location and fi2ed timing on theother hand&4ustomers not desiring to $eep much money on them

e2pect their money to be aailable to them& ;heneer and#hereer they need money, : hours ban$ing serices isaailable for any time& %TM can be used for #ithdra#al of cash&or )'4 ban$ it is a matter of great proud that it is pioneer inintroducing %TM in the entire Saurashtra region in 4o/+peratieban$ing sector&

%t present )'4 ban$ has four %TM& 6y this %TMs anycustomer can easily #ithdra#al ma2imum 1!!!! per day& So

no# a day to remain at the top leel position ban$s hae to compete #ith otherban$s and one thing is but obious that ban$ can defeat any other ban$s byproiding better facilities& )'4 has tried to do the same and got success to&

8/13/2019 SPV004hgjhg

38/119

E4TRA ACTIVITY OF BANK %,

7.AF K.C.C. Dhiran.

)'4 6an$ gies money to the farmers under 3&4&4& 3ishan 4redit4ard Plan& In this ban$ gie AB crore to the farmers&

=. %nnual Cre6it Car6.In this ban$ gie the loan to the farmers about the instruction of resereban$ of India& In this plan ban$ gie :@ portion of total annual moneyand other ": money #hich proided other ban$s to his customers&

9. S4art Kishan Cre6it Car6.In this plan ban$ proide the money in any accident cases or anyurgently re8uirement for money& In this situation they ery easily get upto rs&1!, !!!&

>. Sarvaroj,ar Cre6it Car6.In this plan ban$ gie the loan to the farmers for deelopment of ne#small business in the illage and other illage related actiities& So,they earn money in the illage&

?. ar4ers clu2.

6an$s proide information about the pharmaceutical, farms drugs,

beats and all other farm related information to the farmers under this

plan ban$ start ! farm clubs&

8/13/2019 SPV004hgjhg

39/119

HIGHLIGHTS OF RDC BANK

!1& 6an$ #as registered in 1C"C and has commenced #or$ing in 1C@!&

!& 6an$ is holding business

8/13/2019 SPV004hgjhg

40/119

"& %s on ?1/!?/!!B the total no& of affiliate borro#ing P%4S are :?A out of

these :@ are profit ma$ing&

@& (ach societies haing its o#n godo#n facilities and haing independent #ell

8ualified secretaries&

A& %erage #or$ load per staff during the year #as )s&&@A crores&

B& There are :"1 P%4S affiliated #ith the ban$s as on ?!&!C&!!C&

C& 4ost of management of the societies is at the leel of 1&C as on ?1/!?/

!!B&

?!& 6an$ has started to proide medical benefit scheme for P%4S member from

't& /!@/!!: and end of 't& ?!/!C/!C total paid )s&:?,1:,B!!/ to BA 3idney,

stone, cancer 6rain hamrage, Paralysis K heart attach patients as social

obligation of ban$

?1& 6an$ is al#ays doing preplanning for the better recoery& 6an$ is arranging

regular meeting at talu$a leel places for the proper planning, in presence of

branch managers, inspectors, Fonal officers, 'y&manager, managers, local

directors and secretaries of the societies& )aj$ot district bifurcated in fie Fone

headed #ith 'y&Manager onal& (ery possible effort is made for better and in

time 1!! recoery&

?& 6an$ has receied fie times in a ra# the 6est Performance %#ard for its

better performance in all aspect of #or$ing at the state leel along #ith the shield,

certificate of merits and cash priFe from *%6%)'&

??& There are @? total storage godo#n #ith P%4S of #hich 1?" P%4S are #ith

!1 -odo#n of *ational grid scheme&

?:& 1:: -+do#n5s loan #as disbursed under )ural -odo#n Scheme .4redit

lin$ capital inestment subsidy scheme0

?@& To implement 344 scheme at ery first year ban$ has proide total e2pense

of )s&C,@?,A1"/ related 344 card K stationary (2pense&

?A& %s per *%6%)' and -&+&I& guidelines ban$ has issued 1&AA lac 3ishan 4redit

4ard&

?B& 6an$ is first in India for launching Smart 3ishan 4redit 4ard from year !!:/

!" as a additional facility to 344 holder&

?C& Total priority sector loan outstanding of )s&A@@&C@ crores as on ?1!?!C&

:!& 6an$ has issued 1?@B s#arojgar credit card under *%6%)'5s scheme&

:1& 6an$ is a#arded for S&G&-& lin$ages programmed for t#o years& Hnder this

8/13/2019 SPV004hgjhg

41/119

:& The total credit plan of )aj$ot 'istrict under serice area approach is )s&A!!

crores& %gainst this, the ban$ has enisaged the credit outlay of )s& 11!! crores&

It has largest i&e& :!&A: share in %4P !!C/1! of )aj$ot district&

::& This ban$ is the first to launch Mahala$shmi Self Gelp 4redit 4ard scheme

for the member of self help group #ith the motto to getting loan smoothly from the

ban$&

8/13/2019 SPV004hgjhg

42/119

=< R Depart4ent

$#&R'D"C&$'#(-

Guman resources in any organiFation, be it public priate of 4o/+peratie

constitute perhaps the most ital assets of that organiFation& %n organiFation #ill fail

if its human resources are not competent to e2ecute the #or$ assigned to them&

There is no getting a#ay from fact that human resources represent a subsystem

#hich dominates all other sub system to the organiFation&

Moreoer, people are the only assets of an organiFation that appreciate oer

a period of time #hile all the other assets depreciate& The more an organiFation is

inesting in human resources, the greater the return from the inestment is li$ely to

be and it has been rightly pointed to in one of the boo$s of inter national 4o/

+peratie alliance The gains accruing out of structural reforms can be best

capitaliFed only it the personnel maintained by the 4o/+peratie institution are in a

position to e2ecute the policies effectiely& This implies the need and necessity of

proficient and capable human resources #hich is on e of the primary aims of ht

human resource management&

%ccording to national institute of personnel management of India Personnel

management is that part of management concerned #ith people at #or$ and #ith

their relationship #ithin the organiFation it see$s to bring together men and #omen

#ho ma$e u an enterprise enabling each to ma$e his o#n best contribution to it5s

success both as an indiidual as a #or$ing group&

. R. P'$C1 %#D PR')R%MM!S

)ecruitment

Selection

+rientation

Placement

(mployee remuneration

Training K deelopment

Promotion K transfer

8/13/2019 SPV004hgjhg

43/119

7. R!CR"$&M!#& (-

In case of )'4 ban$, the main source of recruitment is daily news paper

advertisement.

They also recruit employees by transfer and promotion& -enerally as per the

recruitment of the job they gie adertisement in ne#spaper and collect the pool of

application&

=. S!!C&$'#(-

!election of people is easy "#t selection of rig$t people is diffic#lt task.%

+bjectie of selection process>

'etermine #hether the applicant meets the 8ualification for a specific job

To choose the applicant #ho is most li$ely to perform #ell in that job&

The selection procedure of )'4 ban$ is 8uit simple& The stages of including in

the selection process are as follo#s&

*e#s paper adertisement

)eceipt of application

Screening

%rrangement and interie#

Selection

8/13/2019 SPV004hgjhg

44/119

56 ORIENTATION%,

Through this process ne# employee can be a#are of the atmosphere of the

firm and also can be familiar #ith the other employee&& In any organiFation this

process performs ery ital role because this is the only process #hich can create

better enironment in the organiFation and a ne# comer can be a#are about his

#or$ing condition, his area of responsibility and eerything about organiFation&

Proper orientation process can be beneficial to both, a ne# comer as #ell as

organiFation&

>. P%C!M!#&(-

+nce an employee has been selected he should be placed on a suitable job&

Putting the right man at the right job is as important as hiring the right person&

Placement is a process of assigning a specific job to each one of the selected

candidates& It inoles assigning a specific ran$ of and responsibilities of an

indiidual& It implies matching re8uirement of a job #ith the 8ualification of a

candidate&

In other #ords, placement is the determination of the job #hich an accepted

candidate is to be assigned and his assignment to the job& %s )'4 ban$ is ery

careful about this process& %nd one thing is that, at the time of re8uirement only they

hire ne# employees& So hire it is specified that for #hich job they are recruiting& %fter

the final selection, they hae been mar$ing the job of the ne# employee&

?. !MP'1!! R!M"#!R%&$'#(-

)emuneration is the compensation an employee receies in return for his or

her contribution to the organiFation& )emuneration occupies an important place in

the life of an employee& Standard of liing of employee, states in the society,

motiation, loyalty and productiity depends upon the remuneration& or the

employee remuneration is significant because of its contribution to the cost of

production& or human resource management, remuneration is the major function&

The G) specialist has a difficult tas$ of fi2ing #ages and #age differentials

8/13/2019 SPV004hgjhg

45/119

10 ;ages and salary,

0 Incenties and

?0 *on monitory benefits&

%s far as )'4 6an$ is concerned P() (MP

8/13/2019 SPV004hgjhg

46/119

i< Pro4otion

Promotion refers to adancement of an employee to a higher post carrying

grater responsibilities higher status and better salary& It is the up#ard moement of

an employee in the organiFation5s hierarchy to another job commanding grated

authority higher status and better #or$ing condition the in case of t$e RD& "ank as

it is &o'Operative sector t$ey $ave to follow promotion policy of government is merit

c#m seniority in case of promotion t$ey are not independent too.

ii< &rans+er

% transfer refers to a horiFontal or literal moement of an employee from on a

job to another in the same or organiFation #ith out any significant change in status

any pay& It has defined as % literal shift causing moement of indiidual from one

position to another& Hsually #ithout inoling any mar$ed change in duties as

responsibility #ill needed of compensation&

OB0ECTIVES 86

To satisfy employee needs

To better utiliFe employees

To ma$e the employee more ersatile

To adjust the #or$ force

To punish employee

So, the transfer is also important as far as concerned #ith )'4 ban$ there is nospecific transfer policy but according to re8uirement and for conenience of theemployee they use to ma$e transfer&

8/13/2019 SPV004hgjhg

47/119

8/13/2019 SPV004hgjhg

48/119

8/13/2019 SPV004hgjhg

49/119

:9 F$a;e De-ar*3e*

$#&R'D"C&$'#(-

inance is the fuel of administration& ;ithout ade8uate financing any

business enterprise can raise its potentials for gro#th and success& %nd it

#ould be #orth#hile to recall #hat Genry ord once remar$ed Money is an

arm or leg& =ou either use it or lose it& This statement though apparently

simple and 8uite meaningful, it brings home the significance of money or

finance& In the modern money oriented economy finance is one of the basic

foundations of all $ind of economic actiities&

inance management is indeed the $ey to successful business

operations& ;ithout proper administration and effectie utiliFation of finance,

no business enterprise can utiliFe it5s potentials for gro#th and e2pansion&

+rganiFation and control of these function is important for all types of

business units& (specially in public underta$ing massie inestment has so far

been much less productie, it is necessary to organiFe the finance functionsuch a manner that should help the business in achieing its basic objectie

#ith minimum cost&

%ccording to Goagland inancial management is concerned mainly

#ith such matter as ho# of business corporation raises its finance and ho# it

ma$es use of that

8/13/2019 SPV004hgjhg

50/119

$#%#C$% $#'RM%&$'#(-

The liberaliFation of the financial sector is the $ey for the oer all

liberaliFation process& -radually, the structure of the financial mar$et itself has begun to

change, in the changing inancial Mar$etE The 4o/+peratie 6an$ +f )aj$ot

Particulars 97-9-=7 97-9-=8

Members BC! BA

Share 4apital )s& ?!A1&:" )s& A::&AA

'eposit )s& 1:""CB&@B )s& 1:?@@&1

%dances )s& C1"1B&!" )s& C!1B&A:

*et Profit )s& 1?"!&!! )s& 1?"!&!!

;or$ing 4apital )s& 1"!"?C&1!? )s& A1A?&"A1

51

8/13/2019 SPV004hgjhg

51/119

%CC'"#& D!P%R&M!#&(-

7< "#D M%#%)!M!#&

Sr&*o P%)TI4H

8/13/2019 SPV004hgjhg

52/119

In the )'4 ban$ #e are guided by Mr& 6&M&Sangani& Ge has gien lot of

aluable information to us regarding account department of ban$ and gie us

proper justice #ith our $no#ledge& Ge has gien information on fund management&

The fund management must be done under the guidelines of *%6%)'&

There are t#o types of compulsory resere funds #hich all the ban$s hae to $eep&

They are 10 S

8/13/2019 SPV004hgjhg

53/119

9< S&%&$S&$C% D!P%R&M!#&

This department is mainly concern #ith the account management and

financial matter of the ban$& Statistical department is consulting ban$5s legal matterto the arious parties li$e *%6%)', )6I& This department gies statutory returns to

the *%6%)' and )6I on a gien day& The ban$s hae to gie statutory reports on

the monthly, 8uarterly, half yearly or yearly basis report& Preiously this report #as

sent by post but #ith passage of time ban$ has improed their technology and

gies online submission of the same&

In the statutory report ban$ has to report in the prescribe manner along #ith

data of all the branches& In the report ban$ is giing information of the performance

in the gien period of time& Starting from 7form no 1 to anne2ure 5 and many

reports are to be submitted to the *%6%)' and )6I& This submission is

compulsory for all the ban$s to chec$ the regularity of the ban$ and ho# much safe

the fund is in the ban$&

>< %"D$&$#)

%ll the co operatie ban$s are haing control from *%6%)' as #ell as )6I&

So these ban$s hae to follo# rules and regulations of all these controlling body&

)'4 ban$ is also haing control from the follo#ing acts and rules&

10

8/13/2019 SPV004hgjhg

54/119

10 6y 4%,

0 6y goernment panel,

?0 6y internal audit&

+n the basis of performance of the ban$ *%6%)' is giing ran$ ranging

from % to '& ;ith the pride #e can say that )'4 ban$ has achieed grade/%

from last many years& The another type of the audit is statutory audit& This audit is

made compulsory to all the ban$s since !!A/!!B& This audit is to be done only by

the 4% authoriFed by the *%6%)'&

S:OT ANALYSIS

51

8/13/2019 SPV004hgjhg

55/119

+);

SWOT ANALYSIS %,

*o firm can #or$ for the sa$e of #or$& (ach and eery firm #ants to

hae their o#n prestige in mar$et& There can be many other objecties li$e to

earn more profit to satisfy customer, need, to maintain 8uality but none of

51

8/13/2019 SPV004hgjhg

56/119

aboe can be achieed or get #ithout analyFing firms& a firm haing should

performance assessment policy #ill be succeeding in the upcoming

future&Therefore, S;+T analysis is one of the tools to measure performance it

includes internal strength and #ea$ness, opportunities and threats& S;+T

analysis of )'46< is as follo#&

7< Stren,th

This ban$ is a ery reputed in )aj$ot and its district&

ully computeriFed&

Profitable and sound li8uidity&

6ranches in all most deeloped part of )aj$ot

=< Geakness

6an$ is not performing mar$eting actiities because lac$ of mar$eting

eateries&

There is a mista$e in regular transaction can be found because of large

net#or$

8/13/2019 SPV004hgjhg

57/119

8/13/2019 SPV004hgjhg

58/119

6an$ can open branches at state leel in near future&

6an$ can introduce ne# serice li$e *)I loan, %TM etc&

6an$ can perform mar$eting actiity by T&9&, media etc&

4ore ban$ing

Gelps from goernment

4apture mar$et segment

Strong deposit

Ma2imum use of computeriFation

*on/ban$ing business increasing

>< &hreats

4hange in goernment policies and in rules and regulation regarding

ban$ can be distributed in regular serice ban$&

%ll the depositors may #ith dra# their money from ban$ because of any

#rong rumors against ban$&

4ompetitors

51

8/13/2019 SPV004hgjhg

59/119

Hna#areness of rural people

4hanging interest rate

R%S%ARC+R%S%ARC+

M%T+ODO,O-.M%T+ODO,O-.

51

8/13/2019 SPV004hgjhg

60/119

8/13/2019 SPV004hgjhg

61/119

INDEX

P%R&$C"%R

1 Introduction

+bjectie of research

? 'efinition of financial statement

: Types of financial statement

" Method of analysis of finacial statement

@ Types of inacial analysis

A -uidelines for financial statement analysis

B %dantage of financial statement analysis

C

8/13/2019 SPV004hgjhg

62/119

RESEARCH PROCESS

INTRODUCTION :-

Research 4eans Syste4ati:e6 e++ort to ,ain ne5 Kno5le6,e.

)esearch means to collect the data K %nalysis it #ith the help of a graph,Tabulation etc& K gies some finding #hich is useful to the )esearcher K other needypeople in their research project

Gere, I hae collected last ? annual reportsE financial statement .6S, P K < %40 ofthe sampled unit is re8uired to comparison of profitability, deposit, loans, *P% etc& Ihae also analysis all financial statement of the )'4 ban$&

This information gies 8uite useful for the sampled unit to improe their positionas #ell as to the inestor for inesting their money in the )'4 ban$&

R(!()R&H *RO+,(M

% research problem, in general, refers to some difficulty,

#hich a researcher e2periences in the conte2t of either a theoretical or practical

situation and #ants to obtain a solution for the same .

Gere i do research for Aa'

8/13/2019 SPV004hgjhg

63/119

OB0ECTIVES OF RESEARCH

The first and foremost step of a researcher is to identify the research objectie,so that it can become easy for the researcher to achiee the goal and might sole the

research problem based on the objectie&

The purpose of research is to discoer ans#ers to 8uestions through theapplication of scientific procedures& The main aim of research is to find out the truth#hich is hidden and #hich has not been discoered as yet& Though each research studyhas its o#n specific purpose, #e may thin$ of research objecties as falling into anumber of follo#ing broad groupings>

1& To do analysis of financial statement of )'4 6an$&& To $no# the and profitability of ban$&

?& To $no# the li8uidity position of the ban$&:& To $no# the *P% situation of ban$&"& To reie# the gro#th after recession period of time of )'4 ban$&

As I #! reseae;> ?!rk ! "$a;$a' s*a*e3e* aa'e aa' (2ternal source

Research 6ata( ? years ;=A-H H-8 8-7 %nalitical method

51

8/13/2019 SPV004hgjhg

64/119

D!$#$&$'# ' $#%#C$% S&%&!M!#&

% financial statement is anorganised collection of data according to logical andconsistent accounting procedures& Its purpose is to coney an understanding of somefinancial aspects of a business firm& It may sho# a position at a moment of time as inthe case of a balance sheet, or may reeal a series of actiities oer a gien period oftime, as in the case of an income statement&

The end product of the financial accounting process is a set of reports #hich arecalled financial statements&

% inancial Statement is an organiFed collection of data organiFed according tological and consistent accounting procedures&

&1P!S ' $#%#C$% S&%&!M!#&

inancial statements are mainly four that areE

1& The Income statement&& The 6alance sheet&?& The statement of retained earning&:& The statement of changes in financial position&

51

Fi$a$cia. state*e$t

!a!e"en! of

#$ange% in

finan#ia&

'o%i!ion

Ba&an#e

$ee!!a!e"en! of

re!aine( earningIn#o"e

!a!e"en!

8/13/2019 SPV004hgjhg

65/119

7. $nco4e state4ent%,

The income statement also termed as profit and loss account is generallyconsidered to be the most useful of all financial statement& It e2plains #hat hashappened to a business as a result of oprations bet#een t#o balance sheet dates& or

this purpose of matches the reenues and cost and also sho#s the net profit earned orloss suffered during a perticular period&

=. Balance sheet (-

It is a statement of financial position of a business at a specified moment of time&It represents the all the assets o#ned by business at perticular time and the claims ofthe o#ners and outsiders against those assets at the time&

9. State4ent o+ retaine6 earnin, (,

It just lin$ bet#een balance sheet and income statement& The term retainedearning means accumulated e2cess of earning oer losses and diidend& The balancesho#n by income statement is transferred to the balance sheet& This also termed asprofit K loss appropriation account&

>. State4ent o+ chan,es in +inancial position ;SCP

4hanges in #or$ing capital position&

4hanges in cash position&

4hanges on oerall financial position&

51

8/13/2019 SPV004hgjhg

66/119

Metho6s o+ %#%1S$S o+$#%#C$% S&%&!M!#&

The analysis of financial statement has to be underta$en to suit the purpose for

#hich it is re8uired& %nalysis brea$s do#n the comple2 set of facts or figures into simpleelements&

Method of analysis of financial statements is mainly @ that e2plain belo#>

1& 4omparatie statement method& Trend percentages method?& 4ommon/siFed statement method:& 4ash/flo# analysis"& und/flo# analysis@& )atio analysis

Compaa -ti!e

"inancia#

Statement

Compaa -ti!e

"inancia#

Statement

"$nds"#o%

Ana#&sis

"$nds"#o%

Ana#&sis

RatioAna#&si

s

RatioAna#&si

s

Cas'"#o%

Ana#&sis

Cas'"#o%

Ana#&sis

TendPecenta(-es

TendPecenta(-es

CommonSi)e

"inancia#

Statemen

CommonSi)e

"inancia#

Statemen

51

Metho%s of Fi$a$cia. State*e$tMetho%s of Fi$a$cia. State*e$t

8/13/2019 SPV004hgjhg

67/119

7. Co4parative state4ent 4etho6 (-

The method of presenting both financial statements in columnar form and judgingthe trend of profitability and financial condition of the business is $no#n as comparatiestatement analysis& In that balance sheet and profot and loss accounts are prepaed incomparatie form&changes in the figures of different years are sho#n&

=. &ren6 percenta,es 4etho6 (-

In the trend percentage analysis, the financial statement of past years arepresented in percentage relation of arious items of the statements #ith some importantbase item is sho#n& e&g& Percentage of arious e2pences to sales may bepresented&the figure of one year are ta$en as the base& (ery item in thisbase

statement is ta$en as 1!!&

9. Co44on-si:e6 state4ent 4etho6 (-

The common siFed statements are used to proide a common base forcomparison&total of balance sheet is ta$en as1!! and arious items in balance sheetare stated as a percentage of the the total of 1!!& Purpose of preparing common/siFestatement is all the items are compared #ith one common item, #hich is significant&

>. Cash-+lo5 state4ent (-

4ash/flo# statement means historical reie# of cash receipt and payment& 4ashflo# statement is prepared for the purpose #hich #ould sho# inflo# and outflo# formarious sources in the short run& It helps managementin framing policy regarding cashmanagement&

?. un6-+lo5 state4ent (-

% fund flo# statement is another method, sho#ings #herefrom the funds arehae fol#n into business and hae they been applied, that means inflo# and outflo# offund& The meaning of fund is #or$ing capital&

@. Ratio analysis (-

The most popular techni8ue of analysing financial statement is the ratioanalysis&a ratio is a figure sho#ing the logical relationship bet#een any t#o items ta$enfrom financial statements&the use of ratios for the purpose of arring at some conclusionregarding some aspect of performance or financial position of business is $no#n asratio analysis&

51

8/13/2019 SPV004hgjhg

68/119

&1P!S ' $#%#C$% %#%1S$S

T>e @as$s !" 3a*er$a' O (se# %,

%ccording to this also diided in to t#o typesE

7< !Eternal analysis( This analysis is done by those #ho are outsiders for the business& Those areinestors, credit agencies, goernmentetc&

The position of these anlysis has improed in recent times on accunt ofincreased goernmental contrl oer companies&

=< $nternal analysis( This analysis is done by persons #ho hae access to the boo$s of account andthe other information related to the business& Those are e2ecuties and employee orofficers5 appointed by goernment&

O *>e @as$s !" 3!#(s !-era#$%,

%ccording to this also diided in to t#otypesE

7< ori:ontal analysis( In this type of analysis, financial statement for a number of years are reie#edand analysed& The currents year5s figures are compared #ith one based year&

=< Vertical analysis( In this type of analysis a study is made of the 8uantitatie relationship of thearious items in the financial statement on a particular date&

51

8/13/2019 SPV004hgjhg

69/119

)"$D!$#!S 'R $#%#C$%S&%&!M!#& %#%1S$S

7. "se rations to ,et clues to ask the ri,ht Iuestions( 6ythemseles rations rarely proide ans#ers, but they definitely help

you to raise the right 8uestions&

=. Be selective in the choice o+ ratios( you can compute scores ofdifferent rations andeasily dro#n yourself into confusion& ormost purposes a small set of ratios/three to seen #ould suffice&e# ratios, aptly chosen, #ould capture most of the informationthat you can derie from financial statements&

9. !4ploy proper 2ench4arks( it is a common practice to comparethe ratios.calculated from a set of financial statements0 againstsome benchmar$s& These bench/mar$s may be the aerage ratiosof the industry or the ratios of the industry leaders or

the historicratios of the firm itself&

>. Kno5 the tricks use6 2y accountants( since firms tend tomanipulate the reported income, you should learn about thedeices employed by them&

?. Rea6 the +ootnotes( footnotes sometimes contain aluableinformation& They may reeal things that management may try tohide& The more difficult it is to read a footnote, the moreinformation/ laden it may be&

@. Re4e42er that +inancial state4ent analysis is an o66 4iEtureo+ art an6

science( financial statement analysis cannot be regardedas a simple, structurede2ercise& It is a process re8uiring care, thought, common sense, and business

judgment/a process for#hich there are no mechanical substitutes

51

8/13/2019 SPV004hgjhg

70/119

%6vanta,e o+ +inancial State4ent analysis

There are arious adantages of financial statements analysis&

The major benefit is that the inestors get enough idea to decide about theinestments of their funds in the specific company&

Secondly, regulatory authorities li$e International %ccounting Standards 6oard canensure #hether the company is follo#ing accounting standards or not&

Thirdly, financial statements analysis can help the goernment agencies to analyFethe ta2ation due to the company&

4ompany can analyFe its o#n performance oer the period of time throughfinancial statements analysis&

4larity is also one of the adantages because the financial statement must be soprepared that they can be easily understood by the readers for #hom they aremeant& Hnnecessary detailels should be aoided&

inancial statement is also benifited in comparison data #ith figures of preiousyears&

It also helps in the ta$ing important policy decisition in the organisation&

51

8/13/2019 SPV004hgjhg

71/119

i4itation o+ +inancial state4ent analysis

(ery coin has t#o sides li$e that financial statement has useful many #ays but alsosome limitation is there&

(2act precision of the financial statement figures is not possible, so accuracy cannot be maintained&

It is also depened upon of the personal judgment so result can be differentjudgment li$e ma$ing proision for bad debts, method of charging depriciation

etc& The balance does not disclose all the liabilities li$e gratuity payable to their

employee&

The financial statement does not satisfy all parties e&g& ceditors, #or$ers,customers&

inancial statement is also limited for comparability of financial data bet#eencompanies and the need to loo$ beyond ratios&

inancial statements do not reflect alues in terms of current costs& %lso noteffects of price leel changes oer the period

inancial statements do not record non/monetary transaction&o 6alance sheet sho#s the deferred e2penses such preliminary e2penses& Theseare not really assets&

51

8/13/2019 SPV004hgjhg

72/119

%*%

8/13/2019 SPV004hgjhg

73/119

VARIOUS COMPERATIVE STATEMENT

$#D!/

P%R&$C"%R

1 PK< of last ? years

4ash flo# of last years

? 6alance sheet of last ? years

: 'eposits of last ? years

"

8/13/2019 SPV004hgjhg

74/119

P J %3C ' %S& 9 1!%RS

Pro+it J loss account +or the year en6e6 97st4arch =H

!/P!#D$&"R! %M'"#& $#C'M! %M'"#&

Intrest on 'eposit K4reditors

"!,A!,C",A@" Intrest andInestment

BA,?",!,?:@

Salary,P&&,%llo#nces

!,:!,:",1?! 4ommission,'iscount,

6ro$erage

"", "?,1@:

Members ees ",??,1A1 *on/6an$ingIncome

CC,:B,?:B

)ent,Ta2, insurance 1,A1,",AA +ther income AB,@",A!

8/13/2019 SPV004hgjhg

75/119

Pro+it J loss account +or the year en6e6 97 st4arch =8

!/P!#D$&"R! %M'"#& $#C'M! %M'"#&

Intrest on 'eposit K

4reditors

"C,B?,:A,C:? Intrest and

Inestment

1,!C,BA,@,C?"

Salary,P&&,%llo#nces

1,"?,?@,C:! 4ommission,'iscount,

6ro$erage

@@,?",A"

Members ees ",C,"C! *on/6an$ingIncome

1,!@,:1,CBB

)ent,Ta2, insurance 1,A1,1B,:? +ther income @C,:!,@@C

8/13/2019 SPV004hgjhg

76/119

Pro+it J loss account +or the year en6e6 97 st4arch =7

!/P!#D$&"R! %M'"#& $#C'M! %M'"#&

Intrest on 'eposit K

4reditors

B,B!,:!,@1 Intrest and

Inestment

1,:A,!B,A",:!

Salary,P&&, %llo#nces ",11,AB,1@ 4ommission,'iscount,6ro$erage

1,A@,C?,??

Members ees ",CC,1C@ *on/6an$ingIncome

@1,B:

)ent,Ta2, insurance 1,C1,A,"C +ther income ,??,1C,AB"

8/13/2019 SPV004hgjhg

77/119

%nalysis o+ PJ %3c

%fter I obsere aboe ? years data of PK< ac I conclude that income of )'4

6an$ is increase year by year and also e2penss& So profit is fluctuated oer ? year&

%nd from year !!B to !!C profit is increase by )s&1?,",!!,!!!& ;hen fromyear !!C to !1! it is increase by only )s&A,"!,!!,!!!& 6ecause in this year e2penss ismore than than the preious year&

ollo5in, key entries in pJl a3c 5hich in+luence the pro+it o+ 2ank.

$#C'M!

=H =8 =7

$ntrest Jinvest4ent

BA,?",!,?:@ 1,!C,BA,@,C?" 1,:A,!B,A",:!

'ther inco4e AB,@",A! @C,:!,@@C ,??,1C,AB"

#on-2ankin,

inco4e

CC,:B,?::B 1,!@,:1,CBB @1,B:

!/P!#S!SS

=H =8 =7

$ntrest on 6eposite "!,A!,C",A@" "C,B?,:A,C:? B,B!,:!,@1Salary P..

%llo5nces

!,:!,:",1?! 1,"?,?@,C:! ",11,AB,1@

Depreciation 1,B!,CB,1: 1,B1,!,!"! 1,@B,B,@1

'ther eEpens 1,B:,1!,::B ,!@,?@,:@@ 1,B",1C,11"

51

8/13/2019 SPV004hgjhg

78/119

Pro+it ;%4ount in crore='p. pro+it 2e+ore chan,es in op. assest =9A?>=

an6 lia2ility

)d-#sted for >4urrent assest /",1?14urrent liability 11,C1CPurchase of inestment /1!,@""Sale of inestment :A,"A"Moement in borro#ing .*et0 1,1@,1@

51

8/13/2019 SPV004hgjhg

80/119

Moement in adances .*et0 /,@,?C 7H??9HCash ,enerate6 +ro4 opreations =HHH

'irect ta2es paid 1@,?"1 7@9?7Cash +lo5 2e+ore eEtra- or6inary ite4s =A7A=8

#et Cash +lo5 +ro4 operatin, activities =A7A=8

B. C%S 'G R'M $#V!S&$#) %C&$V$&$!S

Purchase of fi2ed assets /C,@C!'isposal of fi2ed assests 1,?AC

#et cash +ro4 investin, activities -H977

C.C%S 'G R'M $#%#C$#) %C&$V$&$!S

Issue of share capital :,B??

'iidend paid /",C?1Moement in resere fund "CA

#et cash +ro4 +inancin, activities >7H7

#et cash +lo5 6urin, the year ;%BC< =@A?88

+pening balance of cash K cash e8uialents 9A=7A7A

Closin, 2alance o+ cash J cash eIuiva lents ?AH897@

51

8/13/2019 SPV004hgjhg

81/119

C%S 'G S&%&!M!#& ' =7

.)s& in thousand0

or year ended?1st march, !1!

%.C%S 'G R'M 'PR!%&$#) %C&$V$&1

#!& PR'$& 79?

)d-#sted for >'epreciation 1@,BC6ad debts proision 1,!1,C"?Proision for income ta2 :!,!!!Inestment fluctuation resere 1,:?Security premium amortised :,!?!Proision for oerdue intrest resere A,!!!Proision for intrest rebate AA,!!!'eferred ta2 assest resered ,@!Profit on sale of assest /@7'p. pro+it 2e+ore chan,es in op. assest 9H?@>7an6 lia2ility

)d-#sted for >4urrent assest /@:,@@A4urrent liability "A,B@B

51

8/13/2019 SPV004hgjhg

82/119

Purchase of inestment /11,:1Sale of inestment 1,A!AMoement in borro#ing .*et0 ",1",!@@Moement in adances .*et0 /1",!C,1C 7@>

Cash ,enerate6 +ro4 opreations 79H@=>?'irect ta2es paid :C,?AB >89AHCash +lo5 2e+ore eEtra- or6inary ite4s 799@H@A

#et Cash +lo5 +ro4 operatin, activities 799@H@A

B. C%S 'G R'M $#V!S&$#) %C&$V$&$!S

Purchase of fi2ed assets /B,!!@ 'isposal of fi2ed assests 1,!@"

#et cash +ro4 investin, activities -@8>7

C.C%S 'G R'M $#%#C$#) %C&$V$&$!S

Issue of share capital ,C@C'iidend paid /?",@C:Moement in resere fund /1?,"11

#et cash +ro4 +inancin, activities -=@=9@

#et cash +lo5 6urin, the year ;%BC< 799@8

+pening balance of cash K cash e8uialents ?AH897@

Closin, 2alance o+ cash J cash eIuivalents A89@

51

8/13/2019 SPV004hgjhg

83/119

%nalysis o+ Cash lo5 State4ent

4ash statement sho#s that ho# much cash inflo# in the business and ho#much cash out flo# from the business&

In cash there are main three actiity is included #hich is>

10 4ash flo# from +prating actiities&0 4ash from inesting actiities&

?0 4ash frpm financing actiities

Gere after analyFe the cash flo# of year !!B and !1! #e obsere thatthe closing balance of cash K cash e8uialents is )s&"A,BC,?1@ in #hich cash In flo#from oprating actiities is !,A1,AC and in inesting actiities ban$5s cash out flo# isB?11 and in financing actiities cash in flo# is )s&:1B1& and ban$ hae opening cashbalance ?A,1,?1@ so total cash inflo# in ban$ in !!B is "A,BC,?1@&

*o# in year !1! the net cash inflo# is A!, C?, !!@hich is more than theyear !!B cash flo#& In this ban$5s cash flo# is totally less than the year !!B but net

cash balabce is more because ban$ hae more cash balance compare to the last year&

So finally conclude that in ban$ cash inflo#increase so it is good conditionfor ban$&

51

8/13/2019 SPV004hgjhg

84/119

B%%#C! S!!&S ' %S& 9 1!%R

Balance sheet as on 97-9-=H%$B$$&1

$%B$$&1 %M'"#& %SS!S&S %M'"#&

Share capital ,@@,A",!! 4ash ?",A?,1A,?1!

)esere K otherfund

C",B,?A,"!? 6an$ balance ?,?@,:?,CC,"C!

Sub sidiary stateparticipatrion fund

:,:,@!! Sub sidiary stateparticipation fundinestment

:,:,@!!

'eposit A,CA,"?,??,:1 %dances A,?1,:C,?",C1@

4readitors ?,1A,CC,",!! Inestment 1,1,C:,AA,!!!

6ills for collection @C,?,A1B +utstanding%dances

?,@B,B@,B:C

%djustment :,!B,":,C!A Intrest receiable 1,?B,?B,B1"

+er due intrest 11,BA,!C,:! 6ills for receiable @C,?,A1B

Intrest receiablefrom members

?,@B,B@,B:C 6uilding .lessdepreciation0

11,@?,B:,?A@

51

8/13/2019 SPV004hgjhg

85/119

Intrest payble 1,A@,C@,@C" urniture .lessdepreciation0

@,:?,A,1?A

+ther liability 1@,!",BC,?CA 4omputer.lessdepreciation0

:@,CB,1BC

+utstanding

)ecoery

A,!1,1A +ther assests 1!,B,::,"@

PK< account A,A",!!,!!! PK< account Q

&otal 7=H=>A@@A &otal 7=H=>A@@A

Balance sheet as on 97-9-=8

%$B$$&1

$%B$$&1 %M'"#& %SS!S&S %M'"#&

Share capital ",1",!B,:!! 4ash ?@,?A,:@,C?@

)esere K otherfund 1,!1,AA,"@,:?1 6an$ balance ",:,"",@C,1@C

Sub sidiary stateparticipatrion fund

?,@C,:C" Sub sidiary stateparticipation fundinestment

?,@C,:C"

'eposit C,B,1!,CA,@@B %dances A,"",:B,B,1"1

4readitors ?,:",!?,,!!! Inestment 1,1B,11,!,!!!

6ills for collection C@,@C,!!? +utstanding

%dances

?,B,",BA!

%djustment ?,:?,",1?B Intrest receiable @,@,1:,@C

+er due intrest C,!C,?@,!BA 6ills for receiable C@,@C,!!?

Intrest receiablefrom members

?,B,",BA! 6uilding .lessdepreciation0

11,!C,C",C1

51

8/13/2019 SPV004hgjhg

86/119

Intrest payble ,!?,C,@CC urniture .lessdepreciation0

@,11,1",BA

+ther liability 1@,:,B?,"?A 4omputer.lessdepreciation0

:",!A,!C?

+utstanding)ecoery

?,?:,B"A +ther assests C,C,@!,"@@

PK< account 1,!!,!!,!!! PK< account Q

&otal 7?798H?7HA &otal 7?798H?7HA

Balance sheet as on 97-9-=7%$B$$&1

$%B$$&1 %M'"#& %SS!S&S %M'"#&

Share capital ?:B,CA,A!!&!! 4ash !?,?1,1CB&?B

)esere K otherfund

1,BC,1::,@"&B" 6an$ balance @,AC,!,:C,:@

Sub sidiary stateparticipatrion fund

?,1B,:@! Sub sidiary stateparticipation fund

inestment ?,1B,:@!1,'eposit 1A,"B1,1?,"CA&AA %dances 11,@",?!,!BC&@A

4readitors ?,?:,CB,A?,"!! Inestment 1,!:,:C1,!!!!&!!

6ills for collection 1,B!,?B,?1B +utstanding%dances

?,!",C",:1

%djustment ?,BB,@?,"? Intrest receiable ?",A?,C@,?AC

+er due intrest ?,B1,@!,C?B 6ills for receiable 1,!B,?B,?1B

Intrest receiablefrom members

?,!",C",:1 6uilding .lessdepreciation0

1!,@:,B",A1"

Intrest payble ,1?,AB,1B" urniture K4omputer.lessdepreciation0

@,!C,?,1!1

+ther liability ?A,","!,A!"

+utstandingrecoery

1,1@,1"? +ther assests 1:,!@,":,"@@

51

8/13/2019 SPV004hgjhg

87/119

8/13/2019 SPV004hgjhg

88/119

rom the aboe chart it indicates the data regarding the share capital of )'4 6an$ forlast three years&

-ro#th in share capital is sho#ing countinous Increasing Trend during the last ? years&The Gighest figure #as A&:: crores in the year !!C/1! and in the lo#est figure are&@@ crores in the year !!A/!B&

R!S!RV! "#D ;%4ount in crore9.A9 >9.>= >9.?

940/4

94092

9401

94021

9404

94041

9409

94091

9401

94011

9408

94081

940/

940/1

9406

year 2556 .ear 2557 .ear 2535

Gere this ratio sho# that ho# much total inestment of ban$ against theirtotal assets&

%boe graph analysis indicate that this ratio is fluctuate oer the ? year& Inyear !!B this ratio is :?&A? then decrease up to :?&: and again it is increase up to:?&"!&

51

8/13/2019 SPV004hgjhg

106/119

9< )ross Pro+it per !4ployee -ross Profit *o& of (mployee

Particular =H =8 =7

)ross Pro+it :C"BB!B ?@!C"?!!! ?@A::!!!

#o.o+ e4ployees AB@ AB AA1

)ross pro+it pere4ployee 97A?>=.=? >@7?A@.A9 >A@???.7=

43/192021

9831/80/4 9/8111032

5

355555

255555

455555

955555

155555

855555

year 2556 .ear 2557 .ear 2535

Gere the gross profit of company is diided by the total number of employeesof that company&

51

8/13/2019 SPV004hgjhg

107/119

So from the aboe chart it is seen that the gross profit of ths ban$ isincrease year by year& In year !!B it is ?,1A,":&" and then increase up to:,@1,"A@&A?, so it is increase bye 1,::,!?:&:B and so on&

>< #et pro+it per e4ployees ;*et Profit *o& of (mployee0

1ear #et pro+it #o. o+ e4ployee Pro+it pere4ployees.

=H AA"!!!!! ABB 8H9?.=?

=8 1!!!!!!! AB@ =@A7A?.?A

=7 1?"!!!!!! AB 7A=@9>.=A

76415021

28/3/101/

3/284902/

5

15555

355555

315555

255555

215555

455555

year 2556 .ear 2557 .ear 2535

#et $nco4e per !4ployee ;#$P!< or Revenue per e4ployee is acompanyRs net inco4ediided by the number of employees

51

8/13/2019 SPV004hgjhg

108/119

8/13/2019 SPV004hgjhg

109/119

8/13/2019 SPV004hgjhg

110/119

A< Return on net 5orth ;*et Profit *et ;orth0/ 7

1ear #et pro+it #et 5orth Ratio

=H AA" 1!?11&A" A&"

=8 1!! 1BA!&:C 1@&?

=7 1?"! 1"??&1: B&B@

/012

38042

6068

5

2

9

8

6

35

32

39

38

36

.ear 2556 .ear 2557 .ear 2535

%this ratio is measure of a corporation5s profitability> it is also $no# as )eturnon (8uity& )+( reeals ho# much profit company generates #ith the monenyshareholder hae inested&

51

8/13/2019 SPV004hgjhg

111/119

%boe chart reeal that the return on net #orth ratio of this ban$ isfluctuated oer ? years& It is A&" in year !!B nd then ban$ net #orth increase so thattheir financial condition made good& Then it is decrease in year !1!& So ban$ ta$e carefor that&

H< Percenta,e ,ro5th in net pro+it ;4hanges in *et Profit *et Profit at 6eginning0/ 7

Particular =H =8 =7

Chan,e in pro+it C!!!!!! 1?"!!!!! A"!!!!!!

Pro+it at

2e,innin,

1!@"!!!!! AA"!!!!! 1!!!!!!!

Ratio =A.=9 7A.8A 9?.A7

2/024

3/507/

410/3

5

25

95

85

65

355

325

395

385

365

.ear 2556 .ear2557 .ear 2535

The profitability of the ban$ is measured by establishing relation of netprofit #ith the preious year5s net profit of the organiFation& %nd ##e concluded from

51

8/13/2019 SPV004hgjhg

112/119

aboe chart that the orofitability of ba$n$ fluctuated and in !!C it is increasing butagain it is decline&

8< )ovt. securities to total invest4ents6G)EC*!o!a& inve%!"en!7/ 7

Particulars =H =8 =7

)-S!CS 11!?B!"!!! 11!?B!"!!! 11!?B!"!!!

$nvest4ent :":BAA!!! @"B""!!!! ACA!?!!!!!

Ratio =>.98 7@.A@ 79.H?

29047

380/8

34061

5

1

35

31

25

21

45

.ear 2556 .ear 2557 .ear 2535

51

8/13/2019 SPV004hgjhg

113/119

-/secs to inestment indicate the percentage of ris$ free inestments inban$5s inestment portfolio& Since goernment securities are ris$ free, the higher -/secsto inestment ratio& The lo#er the ris$ inoled in ban$ inestments&

Gere from aboe chart finally #e hae clearly seen that this ratio iscontinuosly decline,so ban$ may face ris$&

-,7 #orro

8/13/2019 SPV004hgjhg

114/119

It is calculated by diiding the borro#ings ta$en by the ban$ adances gienin arious sector by ban$ lo#er ratio sho#s higher efficiency of the ban$ officials&

rom aboe graph #e could comment that in !!C it is high and compare

to that ne2t year it is less enough& %nd reduce this ratio is ery beneficial for ban$ soban$ hae pay its ma2imum effort for that&

$#D$#)S

Fr!3 *>e v$e? -!$* !" *>e 3< reaser;>%,10 -ross *P%s is decrease eery so it is good for ban$ to attract to more customers&

0 The profit of )'4 ban$ is fluctuating but it increases in !1! is more that is 1?&"

crore& It sho# good condition after recession period&

?0 Intrest income is main source for ban$ to earn money, and here it is decline eeryyear , so it is not good for ban$&

:0 +ther

8/13/2019 SPV004hgjhg

115/119

S(&&es*$!

10 6an$ should hae to increase their inestment in got& security because suchinestment is ris$ free&

0 6an$ should hae to try to increase their deposit against the adances #hich they

land to other and if ban$ increase deposit so in future ban$ not to face any difficulty&

?0 6an$ should try to increase their ratio of return on net #orth because it is one $ind ofbasic inestment of ban$ and if this ratio is on declining trend and not get enough returnthan suffer from loss&

:0 or ban$ tne main source of income is their intrest income ,and here for )'4 ban$this income source is decrease eery year so ban$ should try to ma2imiFe that orincrease their intrest rate&

"0 *P%s is one $ind of bed/debt for ban$ but in )'4 ban$ out of their total assets *P%

is around ! , so ban$ hae maintain this ratio , so ban$ get benefit from *%6%)' or)6I bsn$&

51

8/13/2019 SPV004hgjhg

116/119

$M$&%&$'# ' S&"D1

Some of the limitation of the #or$ of research of financial statement analysis is asunder&

7. %ccuracy o+ the 6ata;hateer the data proided by the sampled unit it may be #rong& So, the ratio of the sampled unit may be not accurate orperfect&

=. &i4e li4itations;hateer the research has been done by researcher in a particular time andresearcher may re8uire e2tra time to researcher the financial stetament analysis ofthe sample unit&

9. Skill o+ the researcher)esearch #or$ is totally depends upon the researcher& If researcher is less s$illful K#hateer the ratio found out by researcher, it may be #rong&

51

8/13/2019 SPV004hgjhg

117/119

51

8/13/2019 SPV004hgjhg

118/119

CONCLUSION

%fter haing all the re8uired information for preparing my report, I haetried to analyFe each and eery function of the )'4 6an$& 'uring my report all thestaff member of the )'4 ban$ had #ell co/operate me& %nd also I hae found that

the, there is a ery good leel of commitment in all the staff members& 'uring myreport I hae tried to coer each functional area of the ban$ and after haing clearidea about eerything in the ban$, I can conclude that the )'4 ban$ is one of theleading firms in the co/operatie sector, and #ith adanced technologies andeducated staff to trying to positioning in the ban$ing mar$et& 6ut then also due to such#ea$nesses of co/operatie sector )'4 ban$ is also suffering from such limits&

So, at last #e can conclude that the )'4 ban$ is being leader in the mar$et andgetting great good#ill in the mar$et and also great good#ill of the directors helps tothe ban$ in creating good image in the field of the ban$&or, better future a greatsuccess my all good #ishes al#ays #ith the )'4 ban$& I #ish them for better

achieement

51

8/13/2019 SPV004hgjhg

119/119

B$B$')R%P1

-7 #ooks

-inancial Management N I M Pandey

/ 4&) 3othari

=