7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 1/102
CONTENTS:
1. Acknowledgement
2. Preface
3. Research ethodolog!
". O#$ect%&e
'. (%nanc%al Performance )%ghl%ghts
'. Organ%sat%on Prof%le
*. a%n +od!
,. -ata Anal!s%s
. Concl/s%on
0. S/ggest%on
1. +%#l%ograh!
11. Aend%
1
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 2/102
PREFACE
Introduction
Or%ssa State Co4Oerat%&e +ank5 a to order #ank %n Or%ssa has headoff%ce at +h/#aneswar 6t has some #ranches at C/ttack5 Paradee5Sam#al/r Or%ssa state co4oerat%&e #ank ltd was reg%stered /nder the+%har and Or%ssa co4oerat%&e soc%et! act 103'.
(%n%al statements wh%ch %ncl/de #alance sheet5 rof%t 7 loss statement5cash flow and f/nds flow statement 8enerall! statements are two t!es5the
9% Pos%t%on statement 7
9%% 6ncome Statement
+alance sheet %s known as os%t %on statement 5 wh%ch shows thef%nanc%al os%t%on of the concern5 on a art%c/lar date.
And rof %t 7 loss statement5 cash flow and f/nds flow %s know as %ncomestatement5 wh%ch shows the %ncome 7 eend%t/re of the concern for af%nanc%al !ear.
Proerl! anal!sed and %nterreted can ro&%de &al/a#le %ns%ght &%ew off %rs erformance and os%t %on. Anal!s%s of f %nanc%al statement %s of
%nterest to lenders5 6n&estors sec/r%t! anal!s%s5 mmanagers and others.(%nanc%al statement anal!s%s ma! #e done5 to know the %nternal strengthand weakness of the f%rm.
Motive (Aim of study)
• To know c/rrent f%nanc%al strength of the #ank 9OSC+
• To know the rof%ta#%l%t! of the #ank . 9OSC+
• To st/d! the change %n the os% t%on of work %ng ca% ta l %ncomar%son to last !ears.
• To st/d! the %tems of +alance sheet and / statement 7 cash flowand f/nds flow statements.
• To know the f%nanc%al os%t%on o f the OSC+.
• To know the so/rces of f%nance to the OSC+.
2
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 3/102
RESEARC) ET)O-O;O8<RESEARC) ET)O-O;O8<
6n common sense = Research> means to a search for knowledge. As well as5 %t %s
an art of sc%ent%f%c %n&est%gat%on. 6t %s a s!stemat%c method of f%nd%ng sol/t%on to a
ro#lem %s research.
Research methodolog! %s wa! to s!stemat%call! sol&e the research ro#lem.
And there are &ar%o/s stes that are to #e followed thro/gh #! a researcher %n
do%ng a research work. There are d%fferent stes /n&al/ed %n th%s research work.
The! are?
(1) Tentat%&e select%on of the To%c.(2) Prearat%on of frame of reference
(3) Prearat%on of S!nos%s.
(4) Etens%&e st/d! of Connected #%f/rcate
(5) -eterm%nat%on of date.
(6) -ef%n%ng stat%call! /n%ts.
() (%%ng the standard of acc/rac!.
(!) -es%gn%ng the Pro$ect.
(") -ata Collect%on.
(1#) -ata Anal!s%s.
(11) Class%f%cat%on and Ta#/lat%on of -ata.
(12) S/%ta#le for anal!s%s
(13) -ate eec/t%on.
(14) Arr%&%ng at concl/s%on or draw%ng %nference.
(15) Prearat%on of Reort.
O+@ECT6E :4 (%nanc%al Statements also %ncl/des a statement of changes %n
f%nanc%al os%t%on. +/t %ts ma%n o#$ect%&e of anal!s%s of f%nanc%al statements %s to
know l%B/%d%t! os%t%on or rof%ta#%l%t! of coman!. +es%des %t ser&es a n/m#er of
d%fferent o#$ect%&es.
3
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 4/102
1. -ec%d%ng the manager%al eff%c%enc!.
2. -ec%d%ng the earn%ng caac%t! or rof%ta#%l%t!.
3. -ec%d%ng the short and long4term sol&enc! of the concern.
". ak%ng forecasts and rear%ng #/dgets.
$%&RCE$ %F 'AA
The data for the resent st/d! were allocated ma%nl! from ann/al Reorts and
other /#l%cat%ons of coman! concerned wh%ch known from the%r resect%&e
off%ces generall! So/rces of data can #e reta%ned from.
Pr%mar! ethods Secondar! ethodsPersonal 6nter&%ew ;%#rar!
/est%onna%res 6nternal RecordsTelehone 6nter&%ew News PaersPersonal O#ser&at%on Ann/al reorts and other related
P/#l%cat%on
TOO;S )OR6DON O( ST-<:
There are &ar%o/s tools a&a%la#le to the f%nanc%al anal!s%s
The! are ?
1. Trend Anal!s%s.2. Rat%o Anal!s%s3. +reak e&en Anal!s%s". Comarat%&e Statements'. Common s%Fe Statements*. Cash (low Anal!s%s,. (/nds (low Anal!s%s. Statements of change %n work%ng Ca%tal
0. A&erage Anal!s%s
4
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 5/102
(6NANC6A; PER(ORANCE)68)T;68)TS
E&er! #/s%ness organ%Fat%on e%sts on f%nanc%al %nformat%on %s reB/%red forf%nanc%al enn! and -el/s%on mak%ng5 6n #/s%ness Organ%Fat%on acco/nt%ng
s!stem %s a ma%n so/rces of f%nanc%al %nformat%on. Acco/nt%ng s!stem %s the
rocess of %dent%f!%ng5 meas/r%ng and comm/n%cat%ng econom%c %nformat%on to
erm%t %nformed $/dgments and dec%s%ons #! the /sed of %nformat%on. 6n o/r 6nd%a
(%nanc%al statements %ncl/des. 91 Prof%t and less Acco/nt and +alance sheet.
These are the mean%ng of comm/n%cat%ng acco/nt%ng %nformat%on.
Acco/nt #!G also helf/l for %n&estors otent%al %n&estors lenders5 s/l%ers and
trades cred%tors. Taat%on a/thor%t%es stock echange emlo!ees and Trades
/n%ons5 8o&ernments5 and /#l%c etc. 6n acco/nt%ng s!stem rof%t and loss
Acco/nt statement ro&%des5 a conc%se reort of the f%rm re&en/es and eenses
d/r%ng a er%od of t%me and meas/res %ts rof%ta#%l%t!. And #alance sheet ro&%des
a conc%se s/mmar! of the #/s%ness reso/rces and o#l%gat%on sand meas/rers
the #/s%ness l%B/%d%t! and sol&enc!.
5
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 6/102
FI*A*CIA+ ,I-,+I-,$ %F%RI$$A $AE C%%PERAI.E /A*0 +'
Comarat%&e Cred%t -el%&er! Pos%t%on %n Or%ssa Role of Cooerat%&e and
other +anks
arket Share of Cooerat%&e G Commerc%al +anks %n -eos%ts %n Or%ssa
State:
9Rs. 6n Crores<ear Commerc%al
+anksCoo.+anks
Total-eos%ts
ShareofCoo.+anks
Share ofCommerc%al+anks
1002403 3*0.2 1,.2 3,*." 'H 0'H100340" "3,3. 22. "*1. 'H 0'H100"40' '2,*."* 202., ''*.'3 'H 0'H100'40* *10.*0 3,.0 *'*., *H 0"H100*40, ,"12.*2 '.2" ,012.* *H 0"H100,40 0,0.' *1,.0' 0'0,."' *H 0"H100400 031".' ,1.*3 12'." ,H 03H
100042 12*'3.12 0"'.' 13'0.1, ,H 03H2421 1"1.* 11.0' 1'000.*1 ,H 03H21422 1*0.1 1"23.,3 2112.01 ,H 03H22423 10.2 132'., 212.1 ,H 0"H2342" 10*,0.1 1"3., 2'2.'1 H 0'H2"42' 1,,0.3 1',3.,3 21012.01 H 0'H
arket Share of Cooerat%&e +ank %n Cro ;oan:
<ear Target as er Ach%e&ements Share of Coo.7 Commerc %a l+anks %n Cred%t-el%&er!
Coo. Comm. Total Coo. Comm. Total Coo. Comm.
02403 ,3.'0 '*.'. 13.0 "*.1 3*.00 3. ''H "'H
0340" ,"."1 *.1 13'.22 ,3.2 ",., 120 *1H 30H
0"40' 1.0" *'.,0 1*.,3 1.,2 *2.12 1*2." *2H 3H
0'40* 11*.3, ., 10*."" 1'*'.* 0'.*2 2'1.* *2H 3H
0*40, 1',.1" 1*.*0 2*3.3 1*3.20 112.3 2,'.'0 '0H "1H
6
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 7/102
0,40 10.," 11.3, 30.11 21.*, 0".3 20'., *H 32H
0400 2*'.2* 132.1' 10,."1 320.2 133.0 "*3. ,1H 20H
100042
3,3.0* 1'. '2".1 "2*.21 1*.'" '0".,' ,2H 2H
241
"02., 1*,.,, *.'' "3.22 10.02 *2.1" ,H 3H
142 ''0.2' 1,.10 ,"."" '3,.23 2"."2 ,,.1' *0H 31H
2243
3,3.* 1'1. '2".1 "2*.21 1*.'" '0".,' ,2H 20H
234"
''2.* 1,.,, *2.'2 "'.22 100.02 *.1" ,H 32H
2"4'
*'0."' 10,.10 ,"2."" '',.'3 2"."2 ,0.1' **H 33H
C- Rat%o of Commerc%al +anks and Cooerat%&e +anks:
<ear Commerc%al #anks Cooerat%&e +anks
1002403 *3.0' 13'.3*
100340" ''.,0 12.0*
100"40' '3.,1 131.3'
100'40* '3.', 121."'100*40, ".2" 11.1*
100,40 "3.,3 11*.1"
100400 "'.* 123.'"
100042 "2.02 122.0
2421 "'., 121.0
21422 "*.' 1'.
22423 "".02 12.0
2342" "., 12'.0
2"42' "0.' 11'.
7
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 8/102
$ources nd &ses of Funds
(/nds comr%s%ng / ca%tal and Reser&es5 -eos%ts and +orrow%ng are
the ma%n reso/rces of the +ank. A ma$or ch/nk of these reso/rces are
delo!ed %n loans and ad&ances to the aff %l %ated CC+s5 mem#er
soc%et%es and %nd%&%d/als for d%fferent /roses /nder farm and non4farm
sectors. The stat/tor! %n&estment reB/%rements /nder +r Act and R+6
Act are met #! %n&estment %n Central GState go&ernment Sec/r% t! and
other aro&ed Tr/stee sec/r%t%es and ma%nta%n%ng %n c/rrent acco/nt
w%th R+6 resect%&el!. Seasonal %ngest%#le s/rl/ses are delo!ed %n
call and a#ort term deos%ts w%th Commerc%al +anks and %n call mone!
market thro/gh -()6 etc. to ma%m%Fe the !%eld on assets. +es%des
rema%n%ng &%g%lant5 the #ank has #een mak%ng concerted efforts to #r%ng
down the le&el of non4earn%ng assets of the #ank to %ncrease the
f%nanc%al marg%n.
A de ta%led acco/nt of the so/rces and /ses of f/nds for the last three
!ears %s resented %n the follow%ng ta#le.
$%&RCE$ A*' &$E$ %F F&*'$ +A$ 5 EAR$ (Rs. In Lakhs)
$*o
Prticurs 2####1 2##1#2 2##2#3 2##3#4 2##4#5
a. ShareCa%tal
2*".3, 311.' 3,'2.2 3'2.20 30'2.2
#. Reser&es 03".0 0*2.3 1*"." 10".0 11*".'
1. Owned(o/nds
11','.2, 12*3. 1"*1,.12 1"*',.12 1'*1,.12
2. -eos%t '**. ,312*.'0 ,"2.1 ,'02.1 0"2.1
3. +orrow%ng "*12".2* ""100."* '2200.' '2'0.' ''200.'". Other
;%a#%l%t%es,"22.0 11**.0 1311'.1" 13,''.1" 1'11'.1"
%A+ 12112"3" 13"556#2 165134" 1!334## 1"1336#
8
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 9/102
Share Capital
2%Reserves
7%
Deposit
52%
Borr owing
31%
Other Liabil iti es
8%
P%$II%* A$ %* 31#32##5 (Rs I* CR%RE)
Prticurs Amount to tot7or8in9 C:it
Share Ca%tal 3,.'2 2Reser&es 1.*' ,-eos%ts ,".2 '2+orrow%ng '22.00 31Other;%a#%l%t%es
131.1'
ot 16513 1####
Prticurs 2##2#3 2##3#4 2##4#5
Cash 7 +ank+alance
201.1 2,,,.1* *"22.*2
one! at Call 111.3 102,.31 1,",'.'16n&estments 10.1" 233'1.23 "1".0;oans 7
Ad&ances'3.* 311'.2 0103.,*
(%ed assets ",.0 ''. ',.*1Other Assets ,*,.', 003".' 1'"2.0
ot 12112"3" 13"556#2 165134"
9
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 10/102
PR%P%RI%* %F C%*RI/&I%* FR%M .ARI%&$ $%&RCE$ %
%A+ F&*'$ %F ,E /A*0
,ed of Account #f contri;ution to
/n8 resources2243 234" 2"4'
Pa%d / ca%tal 2.1 2.2 2Reser&es ,.3 *." ,Own (/nds 0.'* .* 0-eos%ts "*.2" '2." '2+orrow%ngs 3. 31., 31Other ;%a#%l%t%es *.12 ,.3
ot 1#### 1#### 1####
The so/rce w%se mo#%l %Fat%on /nder &ar%o/s ortfol%os are anal!Fed#elow :
$<re C:it
C%MP%$II%* %F PAI'&P $,ARE CAPIA+ %F %$C/
2##2#3 2##3#4 2##4#5
Pa%d / Share Ca%tal 2*".3, 311.' 3,'2.2Of wh%ch 8o&t. ShareCa%tal
*2'. *2'. ,'.
Percentage of 8o&t.Share Ca%tal to totalshare Ca%tal
23.*,H 2.* 23H
8rowth rate of shareca%tal o&er re&%o/s rate
,.'"H 1,H 21H
The mem#ersh% and #reak4/ of share hold%ng %s as /nder .
10
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 11/102
PAID UP CAPITALK MEMBERSHIP WISE (Rs. In L!"s#
As on 31#3#3 As on 31#3#4 As on 31#2#5
*o Amount *o Amount *o Amount
State 8o&t. 1 *2'. 1 *2'. 1 ,'.Cen tral coo.+ank
1, 1,1.'2 1, 23*".'1 1, 2,*3.*'
Ae Coo.Soc%et%es
11 3".33 11 3".33 11 3".33
Other Coo.Soc%et%es
'0 "0. '0 "0.01 * "0.02
Other 6nst%t/t%ons 2 .2 2 .2 2 .2
Nom%nal em#er 02'" '0., 02, 2,.2, 1223 20.3*
ot "344 264#3 "36# 31#1#4 12321 3522!
13 Reserve =
S%nce %ncet%on5 the +ank has not onl! ach%e&ed the #reak e&en le&el
#/t also atta%ned s/sta%na#le &%a#%l%t!. As a res/lt the #ank cont%n/ed to
#/%ld / %ts reser&es and (/nds as er the ro&%s%on of the +!e4laws.
The total Reser&es at the end of 21422 stood at Rs. 1*"." lakh
as aga%nst Rs. 0*2.3 lakh %n 241. 6ns a#sol/te terms5 the
reser&es has %ncreased #! Rs. 102.1 lakh d/r%ng the !ear.<ear w%se comos%t %on of reser&es and f/nds of the #ank from 10004
2 to 21422 and growth o&er the re&%o/s !earIs os%t %on are
%nd%cated #elow.
9Rs. 6n ;akhs
y:es ofReserves
2##2#3-ro>t<
2##3#4-ro>t<
2##4#5-ro>t<
Stat/tor!Reser&e (/nd
*'".3, 3'H *'".3, 4 0'*,.22 "*H
Agr% l. Cred %tSta#%l%Fat%on(/nd
2223.0 H 2313."3 "H 2*2*."2 13.'H
OtherReser&es
*'*.*3 01H '00'.3 4 ,22.2 21H
ot !"34"# 63 !"62!3 #31 1#!64!4 2122
11
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 12/102
-R%7, RAE %F RE$ER.E$
9Rs. 6n ;akhs
er Amount Amount >ise Increse
over st yer
Percent9e of
9ro>t<
2243 03".0 1"2.* 2'.0H
234" 0*2.3 2,.03 .31
2"4' 1*"." 102.1 21.22
14 'e:osits
-/r %ng the !ear /nder reor t5 the +ank co/ld mo#%l %Fe an
arec%a#le B/ant/m of deos%t of Rs. ,"2.1' lakh as aga%nst
Rs. ,312*.'0 lakh at the end of the !ear5 241 reg%ster%ng a
growth rate of 2H.
Comarat%&e os%t %on of the deos%t of the +ank o&er last three
!ears along w%th the growth rate o&er re&%o/s !ears are %nd%cated
o&er leaf :
(A) 'EP%$I P%$II%* %F %$C/ F%R +A$ 3 EAR$
9Rs. 6n ;akhs
er ot
'e:osit
Amount of Increseover :revious yer
Percent9e of9ro>t<
2243 '**. 1"3*."0 3"H
234" ,312*.'0 1,110.,1 31H2"4' ,"2.1 1"3''.'0 2H
12
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 13/102
(/) 'EP%$I ?MI@ of %$C/ FR%M 1"""2### % 2##12##2
y:es of'e:osit
2##2#3
'e:osit
to'e:osit
2##3#4'e:osit
to'e:osit
2##4#5'e:osit
to'e:osit
C/rrent-eos%t
1*.*0 3.22 1*,3.11 2.20 3123.12 3.',
Sa&%ngs+ank-eos%t
10*.0, 3.3 2"2".*0 3.32 33*2.00 3.'
Term-eos%t
'233.22 03." *02.,0 0".30 00*., 02.'
ot 56##6!! 1## 31265" 1## !4!21! 1##
'EP%$I ? MI@ (As on 31st Mrc< 2##5)
(rom the forego%ng ta#les %t wo/ld #e seen the demand deos%t %.e. the
c/rrent and sa&%ng #ank deos%t formed ,."2H and the t%me deos%t %.e.
term deos%t formed 02.'H of the total deos%t. The #ank %s mak%ng
concerted efforts to ra%se the low cost deos%ts #! oen%ng more
#ranchesGetens%on co/nters and %mro&%ng c/stomerIs ser&%ce. Total
+ranch a/tomat%on 9T+A and %nstallat%on of AT for ro&%d%ng an! t%me
#ank%ng ha&e heled the #ank %n a # %g wa! to a/gment deos%t
reso/rces.
Term -eos%t
02H
C/rrent -eos%t
"H
S. +. -eos%t
"H
13
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 14/102
(C) %7*ER$,IP %F 'EP%$I %F ,E /A*0 FR%M ""2### %
2##12###2
sources 2##2 #3 2##32##4 2###42###5
Amount of (ot
de:osit
Amount of
(otde:osit
Amount of
(otde:osit
CC+ 22'2.3 'H "133.* ''H '21.*, 'H
Other Coo. 1*0*".'" 3H 1,"'.0 2*H 1"2,.12 21H
6nd%&%d/al 1,0.0* 2H 1"2",.2 10H 1233.20 21H
(ot 56###6!! 1## 31265" 1## !4!21! 1##
(rom the a#o&e anal!s%s5 % t %s o#ser&ed that %nd%& %d/al deos%ts
const%t/te 21H of the total deos%ts as at the end of 21422 and we
ha&e to real%gn o/r f/nct%on%ng to ach%e&e the targeted le&el of "H.
%7*ER$,IP %F 'EP%$I$(As on 31st Mrc< 2##5)
CCB
58%Other Coop.
21%
n!ivi!"als
21%
'EP%$I$ %F CC/s PAC$
As the leader of the Coo. Cred %t mo&ement %n the State5 we ha&e
alwa!s tr%ed to foster the ca/se of o/r const%t/tents and heled them %n
de&elo%ng the%r reso/rce #ase. Je ha&e ro&%ded f%nanc%al ass%stance
to the CC+sGPACS to oen new #ranches %ncl/d%ng ah%la +ranches to
14
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 15/102
g%&e fact4l %f t to the e%st %ng #raches and to create %nfrastr/ct/ral
fac%l%t%es at PACS le&el for consol%dat%on of the %n% +ank Scheme.
The ta#les #elow %nd%cate the growth of deos%t at PACSG-CC+s and
OSC+ le&el for ast f%&e !ears s%nce 100,40.
PAC$+AMP$
9Rs. 6n Crores
<ear Total -eos%t 8rowth H of 8rowth
241 1'1.2, "'.* "3H
2142 10,."3 "*.1* 31H
2243 2"0.3 '2." 2,H
234" 311.33 *1.' 2'H2"4' 3"2.,* 31."3 1H
'CC/s
241 *1,.0' 11,.,1 2"H
2142 ,**.'" 1".'0 2"H
2243 0',.,* 101.22 2'H
234" 11.0* 231.2 2'H
2"4' 1"23.,3 23".,, 2H
%$C/
241 33'., 0,. "1H
2142 "1,. 1.3 2"H
2243 '*., 1"3., 3"H
234" ,31.2* 1,1.10 31H
2"4' ,".2 1"3.'* 2H
15
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 16/102
C%MPARAI.E 'EP%$I$ P%$II%* %F ,E /A*0
/orro>in9s
6n order to meet the demand of cred%t at grass roots le&el5 the+ank cont%n/ed to #orrow from R+65 NA+AR-5 NC-C5 S6-+6 and State
8o&ernment. The total #orrow%ng o/tstand%ng f rom all so/rces
amo/nted to Rs.'2200.' lakh as on 31st arch5 2' as aga%nst
Rs.""100."* lakh as on the corresond%ng date of the re&%o/s !ear.
The #orrow%ngs formed 31H of the work%ng ca%tal on 31.3.22
aga%nst 32H on 31.3.21.
Total #orrow%ngs from d%fferent so/rces ra%sed #! the +ank d/r%ng last "
!ears along w%th growth rate o&er re&%o/s !ears are g%&en #elow.
9Rs. 6n ;akhs
er ot mount /orro>edFrom $ources
Increse in Amount%ver :revious yer
-ro>t< Rte
2142 3,*".0* 9K 2*2.0 '.H
2243 "*12".2* 9K "3.3 22.'"H
234" ""100."* 4 4
2"4' '2200.' 9K 00.'0 1.32H
$ector>ise /orro>in9s from *A/AR'B R/I $tte -ovt nd *C'C
durin9 st t<ree yers
Prticurs+orrow%ng
from NA+AR-
2##2 #3 2##3#4 2##4#5
$ $A%
Short Term9SAO
1,1.*2 221'.*2 22'.,"
Short Term9OPP
1,'.** 11".0* 1,.
ST G -TP 3'3'.3, "*.,' ''2.1,
16
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 17/102
ot $ ($A%) 23""6365 25411! 254#"1
$ ,ndoom
CC+ for ktg. 7rod/ct%on ofcloth
',*.32 ,3.'0 0*2.1'
Trad%ng %n !arn 100. 4 4
-emand loanfrom NA+AR-
""'. "'. "'.
ot $/orro>in9from *A/AR'
34521" 3#"# 33##3#6
MC RMIC 5#!!1 242#! 63532!
T (arm sector 10,.3 23"0., 2""*.0"
T Non farm 20*".0, 3*.3' '23.3
;T (arm Sector 1,.1 1"'., 22'3.2"
ot *A/AR'/orro>in9
41545" 415"66! 4"33"!2
R+6 demand;oan
". '. ".
;oan from statego&t. %ncl/d%ngworld #ankass%stance
0*.' 12'."2 2"".01
;oan (romNC-CG S6-+6GOT)ER 6nst
3,3.0 "".3' '1".31
-RA*' ot 4612426 441""45
$<ort erm /orro>in9s
) From Reserve /n8 of Indi
Cred%t accommodat%on of Rs. ". lakh was sanct%oned #! the
Reser&e +ank of 6nd%a aga%nst ledge of 8o&ernment sec/r%t%es
for meet%ng the e%genc%es of general +ank%ng oerat%ons. -/r%ng
the !ear /nder reort5 the +ank #orrowed Rs. ". lakh aga%nst
th%s l %m%t and rea%d Rs.'. lakh lea&%ng a #alance of Rs.
". lakhs as on 31.3.22.
17
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 18/102
;) From *A/AR'
NA+AR- cont%n/ed to #e ma%n ref%nanc%ng agenc! of the +ank
d/r%ng the !ear 21422 and the total #orrow%ng o/tstand%ng
from them /nder Short Term stood a t Rs.333.* lakh
const%t/t%ng **.0H of total #orrow%ngs of Rs. "0330.2 lakh from
NA+AR-.
$<ort erm A9ricutur /orro>in9s from *A/AR' for $eson
A9ricutur %:ertions
The oerat%ons on SAO l%m%ts were as /nder :
(Rs. In Lakhs)
/orro>in9
%s s on
31#32##4
'r>sdurin9
2##3#4
Re:ymentdurin9
2##4#5
/orro>in9
%s s on31#32##5
SAO 221'.", 21320.'" 212*.2, 22'.,"
OPP 11".0* 1,. 11".0* 1,.
-TP "*.,' ''2.1, "*1.,' ''2.1,
ot 25411! 2!6111 264!"! 254#"1
A comara t%&e os% t%on of /t %l %Fat %on of NA+AR- SAO l%m% t 100"40' to
21422 %s as /nder.
NA+AR- sanct%oned ST 9SAO cred%t l%m%t of Rs. 30.** crore %n fa&o/r
of 1* Central Cooerat%&e #anks for the !ear5 21422 for f%nanc%ng
cro loan %ncl/d%ng sec%al l%ne of cred%t /nder O6; L SEE-S rod/ct%on
rogramme9OPP and de&eloment o f t r%#a l o/lat%on 9-TP
amo/nt%ng to Rs. 21.' crore5 and Rs. *1, crore resect%&el!. OPP
l%m%t was sanct%oned %n fa&o/r of , CC+s whereas the l%m%t for -TP was
sanct%oned %n fa&o/r of CC+s.
18
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 19/102
&I+I$AI%* %F *A/AR' +IMI
9Rs. 6n ;akhs
erot
%A+ $A% imit snctioned ;y *A/AR'Mimum
%s
rec<ed
of&tiistion
0,40 0'. 1. 3. 4 1"11. *'2.10 3.11
0400 02*'. 0*'. 1'. 22'. 12'3. 12. 2.,
004 1130. '2. 1. 1*. 1"112. 12"1. ,.03
41 12''. 1'. 2'. 22". 1'''. 1"01*.31 0".
142 1'''3. 13*'. 2. 20". 1032. 1""1.*3 0,.
243 221. 32''. 1'. "0. 33". 2',., '.
34" 21*3. 2*. 1'. "2. 2"0. 2',0,.12 0.'2
"4' 22,0. 21'. 4 *.1,. 30*'. 20*0.10 03.''
%PREAI%* %F 'EMA*' +%A* ACC%MM%'AI%* $A*CI%*E'
/ *A/AR' A-AI$* P+E'-E %F -%. R&$EE $EC&RIIE$
A demand loan l%m% t of Rs. "'. crore was sanct %oned #! NA+AR-
d/r%ng the !ear 21 422 aga%nst ledge of 8o&t. and other Tr/stee
Sec/r%t%es for f%nanc%ng seasonal agr%c/lt/ral oerat%ons. The deta%ls of
oerat%ons on the l%m%t d/r%ng the !ear /nder reort %s f/rn%shed #elow :
(Rs. In Lakhs)
;%m%t Sanct%oned "'.
O/tstand%ng at the #eg%nn%ng
of the !ear 9on 1.".2"
"'.
-rawls d/r%ng the !ear "'.
Rea!ments d/r%ng the !ear "'.O/tstand%ng as on 31.3.2' "'.
/orro>in9 from *A/AR' for finncin9 :roduction nd mr8etin9
of ,ndoom cot< on ;e<f of CC/s
19
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 20/102
(or f%nanc%ng the wea&ers coo soc%et%es for rod/ct%on and market%ng
of handloom fa#r%cs5 NA+AR- sanct%oned a cred%t l%m%t of Rs. 2'.,,
lakh on #ehalf of 1" CC+s.
Aga%nst the l%m%t 5 Rs . 0*2 .1' lakh was ad&anced and Rs. ,3.'0 lakh
was rea%d d/r%ng the !ear5 lea&%ng a #alance of Rs. 0*2.1' lakh as on
31.322.
Comarat%&e os%t %on of the l %m%t sanct%oned %n fa&o/r of -CC+s and
oerat%on on the l %m%t d/r %ng the last three !ears are f/rn%shed
here/nder.
(Rs. In Lakhs)
er
Credit
imitsnctioned
durin9
t<e yer
'r>sdurin9
t<e yer
Re:ymentsdurin9
t<e yer
%utstndin9t t<e end of
t<e yer
Mimumoutstndin9
ofutiistion
243 *32.22 ",,*.32 ',"1.", ",,*.32 ",,*.32 ,'H
34" 21,,.0, ,3.'0 ",,*.32 ,3.'0 ,3.'0 "H
"4' 2'.,, 0*.1' ,3.'0 0*2.1' 0*2.1' 3,H
$nction of $ (,+) imit for finncin9 %$,7C$ for :rocurement
nd mr8etin9 of <ndoom cot<s nd trdin9 in yrn ;y *A/AR'
NA+AR- has not sanct%oned an! l%m%t aga%nst OS)JCS d/r%ng 214
22.
Comarat%&e os%t%on of l%m%t sanct%oned %n fa&o/r of the Or%ssa state
)andloom wea&ers cooerat%&e soc%et %es ;td. for roc/rement and
market %ng of cloth and trad%ng %n !arn and oerat %on there aga%nst
d/r%ng the last " !ears are f/rn%shed %n the follow%ng ta#le.
20
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 21/102
(Rs In +8<s)
er
Credit imitsnctioned
;y
*A/AR'
'r>sdurin9 t<e
yer
Re:ymentsdurin9 t<e
yer
%utstndin9t t<e end of
t<e yer
snctioned
Mimumoutstndin99inst t<e
imit
ofutiistion
142 11. 11. 11. 11. 11. 1
243 11. 11. 11. 11. 11. 1
34" 4 4 11. N%l 4 4
"4' 4 4 4 4 4 4
AR* (Rs In +8<s)
er
Credit +imit$nctioned
/y
*A/AR'
'r>s
'urin9
<e yer
Re:yments durin9t<e yer
%utstndin9t t<e end of
t<e yersnctioned
Mimumoutstndin9
durin9 t<ey re
ofutiiDtion
142 2. 2. 100. 2. 2. 1.H
243 2. 100. 2. 100. 100. 00.'*H
34" 4 4 100. 4 4 4
"4' 4 4 4 4 4 4
/orro>in9s from *A/AR' for finncin9 investment credit
Term loan #orrow%ngs /nder d%fferent schemes d/r%ng !ear 214
22 are g%&en o&erleaf.
P/roseOGs as on
31.3.2"
-rawlsd/r%ng
2342"
Rea!mentsd/r%ng 2"4
2'
OGs as on31.3.2'
(AR Sect.9T
23"0., ,*'.3* **.12 2""*.0"
(AR Sect.9;T
1"'.,0 12'.1 *1.3* 22'3.2"
Non (arSect. 9T
3,0.1* 2112.* 22., '.,*
S)8 9T ,.10 1",."1 23.* 22.'"Total *3." "'1.2* 2131.*1 003."
21
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 22/102
-/r%ng 21422 NA+AR- allocated Rs. "'. lakhs for ro&%d%ng
ref%nance /nder schemat%c and #ank a&a%led ref%nance to the t/ne of Rs.
"'1.2* lakh.
/orro>in9s from ot<er institutions
The total #orrow%ng o/tstand%ng as on 31.3.22 from d%fferent
%nst%t/t%ons are g%&en #elow.
SlNo.
Name of the6nst%t/t%on
O/tstand%ng as on31.3.2'
1. NC-C *.'
2. S6-+6 ""'.,3
3. -()6 4M
". aharashtra CC+ 4
Total '1".31
/orro>in9s from *C'C
+ank was %mlement%ng 6-A ass%sted NC-C L 6 and NC-C L 66
god own%ng ro$ects from (e#r/ar!5 10' to @/ne 1002 for constr/ct%on
of r/ral godsons for PACSGRCSGOSC(GT-CC5 etc. the total
#orrow%ng o/tstand%ng from NC-C as on 31.3.22 rema%ned at Rs.
*.' lakh.
/orro>in9s from $I'/I
The #orrow%ngs o/tstand%ng stood at ""'.,3 lakh w%th S6-+6 as on
31.3.22.
114 %t<er +i;i i ties
Other l %a#%l % t %es of the +ank rema%ned at Rs. 12."3 lakh as on
31.3.22 as aga%nst Rs. ,,,2.0* lakh as on 31.3.21. Other
;%a#%l %t %es %ncl/des reser&e aga%nst o&erd/e %nterest5 %nterest
a!a#le and other s/ndr! l%a#%l%t%es.
22
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 23/102
&$E$ %F F&*'$
Cs< /n8 /nces
The #ank had ma%nta%ned cash and #ank #alance of Rs. '12."3
lakh w%th R.+.6 and other nat%onalsed #anks as on 31.3.22 to
meet the stat/tor! reB/%rements and other #/s%ness related
act%&%t %es. Comarat%&e os%t %on of cash and #ank #alances for
three !ears from 31.3. to 31.3.22 was as /nder.
Com:rtive yer end :ositions cs< nd ;n8 ;nces for t<ree
yers (Rs In +8<s)
Cs< nd /n8 ;nces >it< ot<er notified ;n8s
Cs< R/I $/I *tion/n8s
ot
31.3.23 3'.1" 23'.03 2.*" ,.* 201.1
31.3.2" *2.1" 1**3." 3'."' 1. 2,,,.1'
31.3.2' '.3" ""20." 30,.1 1."3 '12."3
InvestmentComarat%&e os%t%on of %n&estment of the #ank d/r%ng ast three !ears
%n f/rn%shed #elow. 9Rs. 6n ;akhs
$*o
(y:e ofInvestment
2##2 ? 2##3 2##3 2##4 2##42##5
1.
6n&estment %ncentral G statego&ernmentsec/r%t%es
1*2.0" 132,.3 3231.,1
2.Other Tr/steeSec/r%t%es 2*,". 2*20. 2'".
3.Shares %n coo.6nst%t/t%on
1'.2 1'.2 1'.2
". Other 6n&estment111.3
2,32,.31 2"''.,
23
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 24/102
'. (ot 2!"#"" 431!54 5"4!661
*.Total %nterest !%eldon %n&estmentd/r%ng the !ear
310.* "''1.,' '31.0*
Com:rtive 9ro>t< rte of Investments
er Amount -ro>t< over:revious yer
of -ro>t<rte
2142 22,.,, 3*'2.02 2H
2243 200.0, *02.2 31H
234" "31,.'" 1"2*.', "0H
2"4' '0"*.*1 1*3., 3H
Money t C nd $<ort *otice
J%th a &%ew to ma%m%F%ng the !%eld on assets the #ank has
%n&ested %ts seasonal s/rl/s f/nds %n short term deos%ts w%th
aro&ed #anks and other f%nanc%al %nst%t/t%ons. S/ch short term
%n&estment o/tstand%ng as on 31.3.22 was Rs. 1,",'.'1 lakh
as comared to Rs. 102,.31 lakh on 31.2.21.
(or r/dent da%l! management of f/nds. +ank /sed to %n&est da%l!
s/rl/s f/nds %n call mone! market thro/gh -()6 d/r%ng the !ear.
+es%des %n order to ma%m%Fe !%eld on %n&estments5 the #ank has
esta#l%shed a treas/r! management cell for trad%ng %n go&ernment
sec/r%t%es thro/gh CS8; acco/nt w%th the -()65 /m#a% 6C665
SC #ank and co/ld earn a net amo/nt of Rs. 0'".'3 lakh.
+ons nd Advnces
;oans and ad&ances const%t/ted '"H of the total assets of the
#ank. The total loans and ad&ances /nder d%fferent sectors as on
31.3.22 stood at Rs. 0103.,* lakh as aga%nst Rs. 311'.2
24
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 25/102
lakh of the re&%o/s !ear. The total %ncrease o&er re&%o/s !ear
was Rs. ,0,,.0" lakh record%ng growth rate of 0.*H.
'
1
"
110
'
1
1'
2
2'
3
3'
"
"'
'
ST 9SAO: ST 9);: ;T Cash Crdt TGTC Other
25
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 26/102
+%A*$ A*' A'.A*CE$ $EC%R7I$E 'EP+%ME*
As on 31st Mrc<B 2##5
Ru:ees in
+8<
of tot
Advnce
ST 9SAO %ncl/d%ng OPP GNP-P G -TP "'31.1' 'H
St 9); to Ae and JCS ,'.02 H
;T 96-A storage ro$ect 02.** 1H
Cash cred%t 30. "H
T 9(S G TCG ;T 9(S 1*3,'.,1 1H
Others 1,.32 10H
ot "1#"36 1##
Sectoral comarat%&e data on loans and ad&ances for last 3 !ears %s
f/rn%shed #elow.
$ector?>ise outstndin9 of ons nd dvnces of t<e ;n8 for t<e
st t<ree yers
y:e of +on 2##2#3 2##3#4 2##4#5
$<ort erm ($A%)
Normal 20,3.1 31"2.3* 3"'3,.0,
OPP "1*'.*" 203.2' 3*',.*0
NP-P 4 4 4
-TP '2.0* *'33." ,11"."0
TCGRTC "*.1' **".3" 1**,.,3
TG;Tschemat%c GR-P
"13.2" '2*,.00 ',,.0
ST !arn loan to Ae J.C.S. ,'3".*1 ,3"1.' ,31,.,
;T 96-A storagero$ect
02."2 0"0.' 02.**
26
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 27/102
Cash cred%t ,0,1.33 3'." 30.
Others 1'1.1 1,03.32 1,.32
ot !##53#6 !3115!2 "1#"36
6ncrease o&erre&%o/s !ear
1'1.3 3*2.,* ,0,,.0"
Percentage ofgrowth
23.2'H "H 0H
$<ort term A9ricutur Advnce for seson A9ricutur
o:ertion ($A%)
-/r%ng the !ear /nder reort5 NA+AR- had sanct%oned aggregate SAO
l%m%ts of Rs. 30.** crores. The /rose w%se sanct%on of l%m%ts for ST9SAO %s g%&en #elow :
$*o
Pur:ose *o of 'CC/s+imit
$nctioned
1. St SAO 9general 13 22,0.
2. O%lseed rod/ct%onrogramme 9OPP
, 21'.
3. NP-P
". -e&eloment of tr%#alo/lat%on 9-TP
*1,.
ot 3#"65!!
The deta%ls of oerat%on of ST SAO l%m%t #! CC+s was as /nder.
ST SAO o/tstand%ng aga%nst CC+s
as on 31.3.21 "''."'
ST SAO drawls a&a%led #! the CC+s
-/r%ng 21422 ""''.0"
Reco&er %es from CC+s d/r %ng 21422 ""1.23
ST SAO o/tstand%ng aga%nst CC+s
As on 31.2.22 "'31.1*
a%m/m o/tstand%ng aga%nst
CC+s d/r%ng !ear 21422 "'31.1*
27
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 28/102
-%s#/rsement of cro loan for seasonal agr%c/lt/ral oerat%on at the
gro/nd le&el d/r %ng khar% ff 5 21 and Ra#%5 21 L 22 was Rs.
3132".* lakh and Rs. 22300.13 lakhs resect%&el! aga%nst target of Rs.
". lakh and Rs. 22. lakhs.
Cro loans f %nanced d/r%ng last 3 !ears at the gro/nd le&el #oth %n
har%ff and Ra#% seasons are f/rn%shed #elow.
9em#ers 7 Rs. 6n ;akh
<ear Target of 6n&estment
har%ff Ra#% Total
22423 2''. 23. ''.
2342" 3'2. 2. ''2.
2"42' ". 22. *2.
er 'is;ursed durin9 t<e yer
har%ff Ra#% Total
No. Amo/nt No. Amo/nt No. Amo/nt
22423
3.0, 2*2'1.1* 2.,0 1*3,2.* *.,* "2*23."
2342"
".*3 31,.3* 1.,, 12,".0 *." "33*.3"
2"42'
".' 3132".* 2., 22300.13 ,."' '3,23.10
28
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 29/102
Finncin9 of 0ind Com:onent under $ ($A%)
O/t of total cro loan of Rs.'3,23.10 lakh d%s#/rsed d/r%ng the
!ear 214225 +I comonent const%t/ted Rs. 1""3.,0 lakh ofwh%ch RS. ,1."" lakh was %n har%ff and Rs. ,"2.3' lakh %n
Ra#%.
The k%nd comonent loan was released for fert%l %Fer5 est%c%des5
seeds5 etc. and formed 2,H of the total loan d%s#/rsed d/r%ng the
!ear 21422.
Finncin9 to sm frmers
-%s#/rsement to small and marg%nal farmers const%t/ted H of
the total d%s#/rsements of Rs. '3,23.10 lakh /nder cro loan
d/r%ng the !ear 214225 and %t was far a#o&e the st%/lated
m%n%m/m l%m%t of 2H.
$esonity 'isci:ine
Accord%ng to oerat %onal cond% t%onal t%es st%/lated #!
NA+AR- 5each CC+ sho/ld collect #! 31 st arch at least 'H of
%ts har%ff demand or "H of %ts total S. T. Agr%l. ;oan demand
wh%che&er %s #enef%c%al to the CC+ and ass on the same to the
SC+ #! end of 31st arch so as to #ecome el%g%#le to oerate
/on the%r ST9SAO l %m%t f rom 1 st Ar%l . S%m%larl! each CC+
sho/ld collect atleast 'H of the%r total ST Agr%l. -emand #! the
end of 3 th $/ne and ass on the reco&er%es to Ae +ank to
coml! w%th seasonal%t! d%sc%l%ne to #ecome el%g%#le to oerate
/on the l%m%t from 1st
@/l!.-/r%ng 21225 ' CC+s namel! +hawan%atna5 Aska5
a!/r#han$ 5 Na!agarh 7 P/r% had not coml %ed w% th the
seasonal%t! d%sc%l%ne.
Minimum Invovement
29
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 30/102
OSC+ and the CC+s are reB/ %red to ma%n ta%n m%n %m/m
%n&o l&ement %n SAO lend %ng %nc l/d%ng con&ers%on and
rehasement of loans to Qthe etent of at least 2'H and "H of
the%r total Net 6nternal ;enda#le Reso/rces 9N6;R resect%&el!.
+hawan%atna fa%led to coml! w%th the m%n%m/m %n&ol&ement
cr%ter%a #! 31 .3 . 22 as st%/lated #! NA+AR-.
Finncin9 under %i $eeds Production Pro9rmme (%PP)
A consol%da ted sec%al l%ne of cred% t of Rs. 21 . ' crore was
sanct%oned #! NA+AR- %n fa&o/r of , CC+s d/r%ng the !ear
2122 for f %nanc%ng the O6; SEE-S PRO-CT6ONPRO8RAE 9OPP. nder th%s rogramme the +ank had
f%nanced Rs. 322,. 1' lakh and reco&ered Rs. 2"*2. ,1 lakh
d/r%ng 2122 . O/tstand%ng %n th%s acco/nt rema%ned at Rs.
3*',. *0 lakh aga%nst the Central Cooerat%&e +anks as on 31 .
3. 22.
,ndoom Finnce
(or rod/ct%on and market%ng of handloom cloth5 +ank had etended
ref%nance s/ort to the Central Coos. +anks #! a&a%l%ng ref%nanc%ng
r%mar! Jea&ers Cooerat%&e Soc%et!. NA+AR- had sanct %oned
aggregate cred%t l %m%t of Rs. 2'. ,, lakhs %n fa&o/r of 1" -CC+s
d/r%ng the !ear 2122.
The t%l%sat%on aga%nst the l%m%t %s f/rn%shed #elow:
Cred%t l%m%t sanct%oned #!NA+AR-
2'.0,
O/tstand%ng as on 31 .3.21 ,3.'0
-rawals d/r%ng the !ear 0*2.1'
Rea!ments d/r%ng the !ear ,3.'0
O/tstand%ng as on 31 .3.21 0*2.1'
30
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 31/102
NA+AR- has not sanct%oned an! l%m%t on #ehalf of Ae JCS d/r%ng
2122 for roc/rement and market%ng of cloth.
ed%/m TermG;ong Term ;oans /nder (arm G Non4(arm Sector toCC+s:
The +ank has #een ro&%d%ng ref %nance s/ort to the CC+s for
f %nanc%ng %n&estment cred%t /nder farm sector and non4farm sector
d/r%ng the !ear 2122.
-CC+s had f%nanced to the t/ne of Rs."13.20 lakh /nder farmGnon4
farm sector and a&a%led ref%nance of Rs. "'1. 2* lakh d/r%ng 214
22.
Pur:ose >ise Finnce for investment credit under from nd non
frm sector nd viment of refinnce from *A/AR' durin9 2##4
2##5
8ro/nd ;e&el -%s#/rsement Ref%nancea&a%led fromNA+AR- 2"42'
P/rose Target Ach%e&ement
(arm Sector No. Amo/nt
%nor 6rr%gat%on *". 1,2 31.,* 23.22(arm echan%sat%on 2,3. '0 11,.2 0,,.2,
Plantat%on 7)ort%c/lt/re
2 02" ."* 133.,"
-%ar! 2 1"' '*.0, 12.0
(%sher! 2 313 *".* 12.0
Po/ltr! 1 1 112." 1*.*"
6R-P 23"1 "30.'" ,2.21
Others *0 ,3 '"2.2' 13".,"ot 556# 132! 2"3"# 2#"361
Non4(arm Sector 9%ncl.R/ral )o/s%ng:
2"" "*,, 1210.30 10',.*'
ot !### 1"64 4#132" 4#5126
Individu Finnce ;y %$C/
31
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 32/102
+ank had also f%nanced to %nd%&%d/als for )o/s%ng5 SS6 n%ts5 EB/%ment
f%nance5 cash Cred%t and other term loan o/tstand%ng as on 31. 3. 2'
%s f/rn%shed here/nder.
Part%c/larsO/tstand%ng
As on 31.3." As on 31.3.2'
Cash Cred%t 7O&erdrafts
2"'1.," 23',.0
N(S 9T ;oans ,'.'3 020.30
)o/s%ng 2,,."' 3,*."
SS6 n%ts 4 4
;oan to S)8 '.1 10.2
(or Non4Agr%lP/roses
3*33.23 """.2
Total 032.0* 1120."0
32
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 33/102
6NCOE AN- EPEN-6TRE
A) Income
The a$or so/rces of %ncome of the +ank %s %nterest on loans and
ad&ances. -/r%ng the !ear 214225 s/ch %ncome const%t/ted 0.2H
of the total %ncome of Rs. 1"*13.,* lakh.
6t ma! also #e o#ser&ed that there %s a r%se %n earn%ng of %nterest of Rs.
*". 1* lakh o&er re&%o/s !ear and the growth rate was 'H .Th%s was
oss%#le d/e to d%&ers%f %cat%on of lend%ng %n non4farm and non4agr% l
sector #es%des %ncrease %n d%sensat%on of cred%t. 6nc%dentall!5 ;oan
o/tstand%ng at the end of the !ear /nder reort has gone / to Rs.
0113.,* lakh as aga%nst Rs. 311'.2 lakh 9221 .
/) E:enditures
The total eend%t/re d/r%ng the !ear after mak%ng 1H ro&%s%on for
o&erd/e %nterest and #ad de#t reser&e of Rs. 12"., lakh amo/nted to
Rs. 13*".235 as aga%nst Rs. 131",.0 lakh d/r%ng the re&%o/s !ear.
The total %ncrease %n eend%t/re comes to Rs. ,1*.33 lakh. Th%s was
d/e to ro&%s%on%ng made for o&erd/e %nterest reser&es #! Rs. 12.3
crore d/r%ng the !ear.
The net rof% t d/r%ng the !ear 21422 was Rs. ,"0.'3 lakh as
aga%nst Rs.*"0.20 lakh d/r%ng the !ear 2421 reg%ster%ng a growth
of Rs. 1.3 lakh. The comarat%&e condensed rof% t and loss
Acco/nt for last three !ears along w% th the !ear /nder reor t %s
f/rn%shed here/nder.
Prticur 2##22##3 2##32##4 2##4#5
Income
6nterest 7-%sco/nt
11"3,.,1 13''.," 1"23".0
Comm%ss%onEchange
7 +rokerage
31.,* 2,. 3.'
33
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 34/102
Other Rece%t 30." 210.3, 3".
ot 115#!"5 13"1" 146136
E:enses
6nterest on-eos%t 7+orrow%ng
,*.2 11,2.1 11".0*
Adm%n %s trat %&eEenses
,1.' 0.'* 03".,2
Other Eenses 310'."" '10.33 1"".''
ot 103.22 131",.0 13*".23
9 K Prof%t '2'.,3 *"0.20 ,"0.'3
ot 115#!"5 13"1" 146136
7or8in9 C:it
The work%ng ca%tal of the +ank comr%sed share ca%tal Reser&e5
deos%t +orrow%ng and other l %a#%l% t %es wh%ch stood at Rs. 1***0.0*
crore as on 31.3.2'. &ar%o/s comonents of work%ng ca%tal of the
#ank d/r%ng last 3 !ears %s f/rn%shed #elow
Prticurs 2##2 #3 to7C
2##3#4 to 7C 2##4#5 to7C
Share Ca%tal 2*." 2.10 31.1 2.23 3,.'2 2.2'
Reser&es 0.3' ,."2 0.*3 *."* 1.*' *.'1
-eos%ts '*., "*.'2 ,31.2, '2.," ,".2 '2.30
+orrow%ngs "*1.2" 3.31 ""1.00 31. '22.00 31.31
Other ;%a#%l%t%es **.0 '.'* 02.,1 *.*0 12'.0 ,.'"
ot 123.0* 1H 13*.*1 1H 1**0.0* 1H8rowth rate ofwork%ng ca%talo&er re&%o/s!ear
20H 1'H 2H
34
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 35/102
C%MP%$II%* %F 7%R0I*- CAPIA+
Share Ca%tal
2H
Reser&es
,H
-eos%t
'2H
+orrow %ngs
31H
Other
H
C:it deucy ? Performnce of %riss st te Coo:ertive /n8
The Comm%ttee on f%nanc%al sector reforms 1001 and Naras%mham
comm%ttee46 65 100 %nteral%a5 recommended that the ca%tal
adeB/ac! as al%ed the commerc%al #anks %n 6nd%a %n relat%on to
the%r r%sk we%ghted assets sho/ld #e made al%ca#le to the coo.
+anks. 6t %s w%del! eected that these norms wo/ld #e al%ca#le
to the sched/led state cooerat%&e #anks w%th effect from 234".
*on :erformin9 Assets nd :rovisionin9 t<ereof
The R.+.6 %ntrod/ced the r/dent%al acco/nt%ng norms for the
stateG central cooerat%&e #anks from the !ear 100*40, there#!
st%/lat%ng ro&%s%on%ng norms of non erform%nf assets. The #ank
was a#le to coml! w%th the sa%d norms %n 100,405 to 2142
and earned rof%ts as well. 6nfect5 the #ank has made ro&%s%on
m/ch %n ecess of the reB/%rements to meet the f/ t/ re
cont%ngenc%es. -eta%ls are as follows :
35
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 36/102
(Rs. In Lakhs)
2##3#4 2##4#5
Total Non erform%ng assets 0232 1"1".02
Pro&%s%on%ng reB/%red to #emade as er R+6 g/%del%nes/nder r/dent%al norms
1,0.* 2*.3
Ac t/al Pro& %so made '321. '321.
%verdue Interest Reserve
To co&er the O.-. %nterest5 the +ank has made 1H ro&%s%on%ng
#! 31.3.22 as ma! #e seen from the follow%ng ta#le.
9Rs. 6n ;akhs
2##3#4 2##4 #5
Pro&%s%on reB/%red to #e madeaga%nst o&erd/e %nterest
3"23.20 '20.
Pro&%s%on made 3. '3.
Cost of Mn9ement cost of management of the #ank was com/ted at Rs. 1"'.13
lakh d/r%ng the !ear 2342" as aga%nst Rs. 0'*.03 lakh d/r%ng
the re&%o/s !ear 22423 wh%ch was calc/lated at .*2H of
the work%ng ca%tal.
The comarat%&e os%t %on of cost of management d/r%ng last 3
!ears %s f/rn%shed here/nder :
Prticur 2##2#3 2##3#4 2##4#5
Cost of anagement ,1."0 0'*.03 1"'.13
H of Cost ofanagement
% Jork%ng Ca%tal .*'H .*0 .*2
%% -eos%ts 1.30H 1.31 1.10
36
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 37/102
%%% +orrow%ng 1.*0H 2.1* 2.
%& ;oans 7 Ad&ances
.0H 1.1' 1.1'
Mn9ement of Funds
The #ank had constantl! endea&ored for ot%m/m /t%l%Fat%on of %ts
s/rl/s L reso/rces and mon%tors f/nds delo!ment on da! to da!
#as%s. All short term %n&ert%#le s/rl/ses were arked %n h%gh L
%nterest !%eld%ng %n&estment a&en/es %n Nat%onal%Fed +anks after
meet%ng the cred%t reB/%rements of CC+sG other coos. J%th a
&%ew to ma%m%Fe rof % t the #ank has started trad%ng %n 8o&t.
sec/r%t%es #! oen%ng C4S8; Acco/nt w%th R+6 thro/gh -()6.
The cost of f/nds5 !%eld on assets5 f %nanc%al marg%n and #reak4
e&en le&el etc. for ast three !ears %n %nd%cated o&er leaf :
Prticurs 2##2#3 2##3 #4 2##4 #5
1. <%eld on Assets 11.3 1.32 1.10
2. Cost of (/nds *.02 .0, .2
3. 8ross f%nanc%al marg%n ".3 1.3' 2.1,
". %sc. 6ncome ., .1 .3
'. Cost of anagement9Amt:
,1.' 112,.0" 1*'.
H to work%ng f/nd 9A&g: .,, .' .0,
*. R%sk Cost 9Amo/nt: 31. 3. ,'.
,. Net f%n%cal arg%n 3.* .22 ."*
. +reak e&en ;e&el for
work%ng f/nd
02'. ,'1. 11,22.
0. Act/al le&el of J.(/nd9A&g:
112"".* 122,2. 1"3,0.
37
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 38/102
Aver9e :er Em:oyee :er /rnc< /usiness %$C/ A++ CC/
%$C/ 2##2#3 2##3#4 2##4#5
No. of +ranches * *
Per #ranch +/s%ness 9;akh: 2**. 2311. 20,*2.*'No. of emlo!ees 23, 23, 220
Per Emlo!ee +/s%ness ',".,0 ''.* ,,0.1
CC+Is
No. of #ranches 311 31* 31*
Per #ranch #/s%ness *.23 1*.02 0"0.2*
No of emlo!ees 313 3, 3,
Per emlo!ee #/s%ness *.1* ". 0,.,
,umn Resource nd Mn:o>er 'eveo:ment
The =anower> of an! %nst% t/t%on #e%ng % tIs most %mortant
reso/rce5 w%th a &%ew to ro&%d%ng knowledge %n/ts5 / gradat%on
of sk%ll5 change the m%nd set and att%t/de and to %nc/lcate a sense
of #elong%ngness %n the ersonnel %n Coo. +ank%ng sector %n
Or%ssa5 the ACST6 of the +ank %ntens%f%ed %tIs tra%n%ng act%&%t%es to
hel the Central Coo. +anksGPACSG;APS %n the%r endea&o/r to
ach%e&e s/sta%ned ecellence %n erformance. The ACST6 alwa!sa%med at de&elo%ng each tra%nee to f%nd the means to act/al%Fe
h%s f/ll otent%al thro/gh B/al%t! tra%n%ng so that a os%t%&e work
c/lt/re %s emerged and the Coo. +ank%ng str/ct/re #ecomes
&%a#le and &%#rant to face the emerg%ng challenges.
-/r%ng the !ear 21422 the ACST6 cond/cted "3 co/rses of 13
d%fferent categor%es and tra%ned ,** ersonnel.
<ear No. of co/rsescond/cted
No. of Prsonnel tra%ned
1040 3 20
10040 13 2'*
100401 31
1001402 12 2,
38
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 39/102
1002403 0 ""
100340" 0 322
100"40' 3* 13*1
100'40* , 1'*
100*40, '1 221*
100,40 2" '2"
100400 "2 ,'
10004 '0 1"11
241 '2 ,3
2142 *3 12,
2243 2* 3*
234" "* 13,0
2"4' "3 ,**
ot 5#3 1255
Recogn%F%ng the contr%#/t%on of ACST6 towards the de&eloment
o f h/man reso/rce %n Coo. +ank%ng Sector5 the Sta te
8o&ernment ro&%ded a grant of Rs..' ;akh %n 100"40'5 Rs.2.
;akh %n 100'40* and Rs.1. ;akh %n 100*40, from the state#/dget. The AN+AR- also sanct%oned f%nanc%al ass%stance of
Rs.*.32 ;akh d/r%ng 100"40'5 Rs..3 ;akh %n 100'40* Rs.1.,0
;akh %n 100*40,5 Rs.*.2" ;akh %n 100,405 Rs.*. ;akh %n 1004
005 Rs.".* ;akh %n 1000425 Rs..', ;akh %n 241 and ,.1
;akh d/r%ng 2142.
The 6nst%t/te has #een de&eloed as a reos%tor! of knowledge. 6n
%t Is endea&o/r %n f/rtherance of +ank%ng5 Coo. o&ement and
management4rofess%onal %sat%on5 the %nst% t/te has /#l %shed
#ooklets on N.6 . Act 5 O.C.S. Act 5 -.A.P.5 %n% +ank R/les5
r/dent%al Norms5 etc. and has as m/ch as 1' =)ando/ts> on
&ar%o/s s/#$ect. =8/ard (%les> on , +ank%ngGCoo.5 etc. all %ed
39
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 40/102
s/#$ects are a&a%la#le w%th the ACST6 fo r re fe rence o f
CooeratorsG#ankers and research scholars.
rinin9 :ro9rmmes conducted durin9 t<e yer 2##4#5
$*o
*me of t<e rinin9Pro9rmmesconducted
r9et 9rou:*o of
courses:nned
ot:ersonstrined
1.C/stomer ser&%ce and#eha&%o/ral sc%ence
-CC+ Staff 2 "3
2.Or%entat%on Tra%n%ngProgramme forwomen.
JomenOff%cers 7Staff of-CC+s
2 '"
3.
Tra%n%ng Programmeon Pr/dental Norm for
A/d%otrs ofCooerat%&e-eartment
A/d% tors ofCooerat%&e-eartment
3 *'
".Tra%n%ng Programmeon Pr/dent%al Norms
Staff of CC+s ' ,3
'. Ara%sa lethodolog!
OSC+off%cers
' 0*
*. Ara%sa lethodolog! and-oc/mentat%on
Staff of CC+s ' *'
,Or%enta t%on T ra %n %ngProgramme on R/ra l+ank%ng
%n% +ankPersonnel
" "*
.C/stomer or%entat%nand arket%ng of +ankSer&%ces
Staff of CC+s " '2
0.Ta%n%ng Programme onSelf )el 8ro/s Staff of CC+s " *'
1.Tra%n%ng Programmeon Com/ter=sama#a!a> ackage
Staff of CC+s 1 2,
11.Emower%ng Ser&%ceEcellence
Staff of CC+s " 11
40
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 41/102
12. 8eneral +ank%ng Staff of CC+s 3 "
13.Tra%n%ng Programmeof E.P.
Staff of CC+s 1 31
-E*ERA+ ? 'E.E+%PME*A+ I*IIAI.E$
Introduction of t<e system of Annu M%& from 1"""!
P/rs/ant to the anno/ncement of the )onI#le (%nance %n%ster of
6nd%a %n the #/dget Seech 100"40' %n the Parl%ament5 NA+AR-
entered %nto O w%th 8o&t. of Or%ssaGOSC+ on 1.,.100" ands/#seB/entl! w% th -CC+Is on ,..100' w% th a & %ew to
re&am%ng the cooerat%&e cred%t str/ct/re %n the State.
The er %od%ca l re& %ews /ndertaken #! NA+AR- re&ealed
%merat%&e need for %ntrod/ct%on of Ann/al O to fac%l%tate t%mel!
re&%s %on of all f %nanc%al arameters of -AP e&er! !ear on a
real%st%c manner to ach%e&e &%a#%l%t!. Th%s eerc%se w%ll ena#le the
#anks to correct the%r os%t%ons %n asset and l%a#%l%t! management5
ton%ng / cost control s!stem5 streaml%n%ng lend%ng ol%c! and
roced/re and a#o&e all %mro&%ng staff rod/c t%&%t!.
At the %nstance of NA+AR-5 OSC+ and 1, CC+s %n the State
ha&e #een s%gn%ng ann/al O from the !ear 100,40.
%:ertion of GMini /n8H $c<eme t PAC$ eve to Mo:u: rur
svin9s
6n % ts endea&o/r to romote the reso/rce mo#%l %Fat%on #! the
Coo. +ank%ng Sector %n Or%ssa5 the OSC +ank enco/raged the
Central Cooerat %&e +anks to %ntrod/ce rosect%&e deos%t
schemes s/ch as da%l! deos%ts 5 ens%on schemes5 e tc .
PACSG;APS were %dent%f %ed as r/ral growth centres for
41
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 42/102
mo#%l%sat%n of r/ral deos%ts. Accord%ngl!5 =%n% +anks> were
oened at PACSG;APS le&el and r/ral s/rl/s f/nds were #e%ng
moed / and a s%Fa#le amo/nt to the t/ne of Rs. 3"302.' lakhs
co/ld #e mo#%l%Fed thro/gh 1' %n% +anks #! 2"4'.
The <earw%se rogress o f mo#%l%Fa t%on o f deos%t s%nce
%ntrod/ct%on of the %n% +ank Scheme are g%&en here /nder :
er *o of Mini /n8s %:ertin9 'e:ositMo;iised(Rs. InLakhs)
100*40, ",' 30.
100,40 '03 "0'3.100400 *," ,3,.
10004 ,3 11113."
241 ,'2 1'12,.
2142 1 1"2,.3
2243 0 230".*,
234" 2 31133.1
2"4' 1' 3"302.'
The +ank framed a odel R/les for oerat%on of %n% +anks wh%ch
has #een aro&ed #! the Reg%strar of Coo. Soc%et%es5 Or%ssa
&%de letter No. 1'1"" dt. 21.*.00 and has #een comm/n%cated #!
the +ank to all concerned for g/%dance.
Introduction of 'e:osit -urntee $c<eme for 'e:osit in PAC$
P/rs/ant to the recommendat%on of ACRC and a %m%ng at
s/sta%ned growth rate of deos%ts o&er ast few !ears at PACS
le&el %n Or%ssa %nd%cat%ng the conf%dence reosed #! the eole %n
the grass root le&el short term coo. Cred%t str/ct/res5 the state
8o&t. 6ntrod/ced a =-eos%ts g/arantee Scheme> for %ndemn%f!%ng
deos%tors of PACS / to Rs. 35G4 w%th effects from 22.0.0".
42
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 43/102
A Cro/s f/nd has #een esta#l %shed at the -CC+ le&e l w% th
contr%#/t%ons from the state 8o&t. OSC+5 -CC+ and PACS.
er Amount contri;uted (Rs In 8<s)
21422 0.3*322423 12.1"
2342" 1'.1
2"42' 1*.
Infrstructure deveo:ment of PAC$ o:ertin9 Mini /n8s ?
Finnci ssistnce from *A/AR' out of C'F$tte
-ovt%$C/CC/
NA+AR- ro&%ded f%nanc%al ass%stance of Rs. *. lakh d/r%ng
100' L 0* to 13 PACSG;APS ha&%ng =%n% +anks> %n Or%ssa for
de&elo%ng the%r %nfrastr/ct/re. The Or%ssa state cooerat%&e #ank
the concerned central coo. +anks also ro&%ded Rs. 1'5G4 and
=Rs.'5G4 resect %&el! to each PACS wh%ch ena#le them %n
#/%ld%ng conf%dence among r/ral deos%tors. 6n the !ear 100*40,5
NA+AR- has alos sanct %oned Rs. *. lakhs o/t of C-( for
%nfrast/re de&eloment of 11*.PACSG;APS and has released *
lakh d/r%ng 100*40, and an amo/nt of Rs. *. lakh was
released d/r%ng 21422 %n fa&o/r of PACSG;APS.
8o&t. of Or%ssa ha&e also ro&%ded f%nanc%al ass%stance o/t of
state Plan for oe%n%ng o f %n% +ank %n the PACS G ;APS.
(Rs. In Lakhs)
er *o of PAC$ ssisted Amount of ssistnce
:rovided
10004 1 1.
241 "3 ".20
2142 1 0.0
2243 1 1.
234" 1' 1'.
43
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 44/102
2"4' 0 .00
ot 443 5#26
A) Finnci ssistnce to 'CCC/s for fce if t of t<eir
;rnc<es
The +ank %mlemented a scheme %n 100" 40' and 100'40* for
ro&%d%ng f %nanc%al ass%stance to one #ranch of each CC+ er
!ear for face l%ft. nder th%s scheme5 3" #ranches got ass%stance
of Rs. 1,. lakh wh%ch ena#le the #ranches to etend #etter
c/stomer ser&%ce and %ncrease the%r t/rno&er. -/r%ng 21422
Rs. 1, lakh has #een ro&%ded to each #est #ranch of the 1,
-CC+s for the%r facel%ft. +es%des one staff of the #ranch of each
CC+ has #een awarded w%th Rs. 'G4 for mo#%l %F%ng h%ghest
deos%t d/r%ng deos%t mo#%l%Fat%on fortn%ght.
/) %:enin9 of M<i /rnc<es ;y CC/s
(Functionin9 of >omen 'eveo:ment ce in %$C/)
J%th a &%ew to %n&ol&%ng the Jomen %n cooerat%&es for the%r
soc%o4Econom%c -e&eloment5 all the 1, CC+s5 %n Or%ssa ha&e
oened ah%la #ranches +erham/r5 h/rda5 Sam#al/r5 +o/dh
and +olang%r CC+ ha&e s/#seB/entl! oened second ah%la
#ranches and th/s5 22 ah%la #ranches of CC+S are f/nct%onal
d/r%ng the !ear /nder reor t %n the state.
State 8o&t. has ro&%ded f%nanc%al s/ort of Rs. 1." lakh to
each ah%la #ranches for %nfrastr/ct/ral de&eloment and Rs.
35G4 towards manager%al s/#s%d! er !ear and Rs. 15G4 as
one t %me ass%stance for tra%n%ng. Or%ssa state coo. +an has
ro&%ded Rs. *. lakh to 1, ah%la #ranches. ah%la a #ank ha&e
mo#%l%Fed deos%t of Rs. '**., lakh and ro&%de f %nanc%al
44
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 45/102
ass%stance to the t/ne of Rs. ,30.2" lakh to women #enef%c%ar%es
#! 31.3.22.
A women -e&eloment ce ll has #een esta#l %shed %n Or %ssa state
cooerat%&e #ank to g/%de and co4ord%nate the act%&%t%es of central
coo. +ank %n cred%t l%nked women de&eloment rogramme.
NA+AR- has agreed to ro&%de f%nanc%al ass%stances of Rs. .,'
lakh er !ear towards salar! of the emlo!ees of women
de&eloment cell.
C) Incentive $c<eme for recovery of on
J%th a &%ew to %nf/se comet%t%&e s%r%t among the f%eld workers5
the comm%ttee of management of the +ank ha&e aro&ed an
%ncent%&e scheme for reco&er! of coo. ;oan. nder the cat%oned
scheme follow%ng f%nanc%al #enef%t was a&a%la#le for the CEO and
other staff of PACSGlams. +ranch anagers and Adm%n%strat%&e
6nsectorsGS/er&%sors of the CC+ ach%e&%ng reco&er! of a
art %c/lar le&el. Categor! of Staff co&ered /nder scheme %s
ment%oned #elow. -/r%ng the !ear 21422 an amo/nt of
Rs.''.33 lakh was sent towards s/ch %n&ent%&e as aga%nst
Rs.*.' lakh sent d/r%ng 241. O/t of ''.33 lakh %ncent%&e
a%d d/r%ng 21425 Rs. 31.* lakh a%d for %ncent%&e to staff and
Rs. 2".2, lakh for &eh%cle eenses.
PAC$ +AMP$ (Rs. In Lakh)
Part%c/lars
6ncent%&e for Emlo!ees of PACSG;APS
Reco&er!a#o&e ,H
Reco&er!a#o&e H
Reco&er!a#o&e 0H
Reco&er!a#o&e1H
A#o&e 2lakh #/t lessthan ' lakhs
1 12 1' 2
A#o&e 'lakh #/t lessthan 1
12 1' 2 2'
45
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 46/102
lakhs
A#o&e 1lakh #o/tless than 2'lakhs
1' 2 2' 3
A#o&e 2'lakh
2 2' 3 3'
') Mn9er i Assistnce to 'CC/s
S%nce 1st ar%l5 100* OSC5 +ank %s meet%ng the salar! of 0 off%cers
of OSC +ank osted as Secretar! of d%fferent -CC+s. (rom 10004
2 OSC+ has #een a!%ng the salar! of all CEOs of -CC+s.
Eend%t/re %nc/rred on th%s acco/nt d/r%ng ast ' !ears were as
follows.
er Amount(Rs. In Lakhs)
241 1*.2
2142 ",.,
22423 3."'
2342" 1",.11
2"42' 2,.1'
-overnment $<re C:it Contri;ution out of *RC (+%) Fund
The Short term coo. cred%t str/ct/re %n Or%ssa cont%n/ed % ts
efforts to #/%ld / a good share ca%tal #ase and th%s heled to
o#ta%n a s%Fea#le match%ng 8o&ernment contr%#/t%on to the share
ca%tal from o/t of NRC 9;TO f/nd.
-/r%ng 2421 the 8o&t. had sanct %oned share ca%tal
ass%stance of Rs.0*,.11 lakhs #/t released Rs."*'.00 lakh onl! %n
2243. S%m%larl! 8o&t has sanct%oned share ca%tal ass%stance
of Rs.1,*0.01 lakhs for 2142 wh%ch %s not released #!
46
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 47/102
31.3.2. the share ca%tal ass%stance sanct%onedGreleased #! the
State 8o&t.
ME Ce -/r%ng ast few !ears there has #een a d%st%nct r%se %n the loan
ortfol%o of the +ank %ncl/d%ng schemat%c and non4farm sector
f %nanc%ng. (or roer techno4econom%c ara%sal and ost
d%s#/rsement s/er&%s%on5 +ank has created a Techn%cal 5
on%tor%ng and E&al/at%on Cell 9T%me w%th f %nanc%al s/ort of
NA+AR-. 6nd/str! and )andloom sec%al%sts man th%s cell. The
State 8o&t. has osted one @o%nt -%rector of 6nd/str%es and one
-e/t! -%rector of Tet%les to f/nct%on as Sec%al%sts %n the T6E
Cell.
ri; 'eveo:ment Ce
J%th a a &%ew to ro&%de adeB/ate cred%t s/ort to tr%#als5 at the
%nstane of NA+AR- the +ank has osted a anager to f/nct%on
as Tr%#al Cred%t Sec%al%st.
Introduction of Coo: /n8s Mutu Arn9ement $c<eme for %riss
(C%/MA$%)
To %ncrease the non4f/nd #ased earn%ng of CC+s and to ro&%de
#etter c/stomer ser&%ce to %ts deos%torsG cl%ent5 %ss/e of --s #!
Coo. +anks w%th%n the State was a long felt need. nder the
aeg%s of the OSC +ank a state le&el m/t/al arrangement scheme
was %ntrod/ced w%th effect from 1 st @an/ar!5 100* on a %lot #as%s
and the scheme has ga%ned moment/m. 6t %s roosed to co&er all
the #ranches of the -CC+s and #ranches of OSC+ %n d/e co/rse.
11* Nos. of #ranches of -CC+s and all #ranches of OSC+ ha&
#een co&ered /nder the scheme.
47
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 48/102
Recovery of Coo:ertive dues in %riss
Poor le&el of reco&er! has #een %dent%f %ed as one of the ma$or
constra%nts affect%ng cred%t flow and &%a#%l%t! of the PACSG;APS
and CC+s. -es%te %mlementat%on of 6ncent%&e Scheme for
ro&%d%ng cash award to the CEOGother staff of PACS and +G-m.
6ns. 7 S/er&%sors of CC+s for reco&er! of Coo. ;oan there %s
l %t tle %mro&ement %n reco&er! %n 21422. (ol low%ng ta#le
%nd%cate the reco&er! trend d/r%ng last ' !ears 9@/l! to @/ne.
Recovery durin9 st 3 yers
er PAC$ .rs Mem;er /n8 .rs $ociety
'emnd Coection 'emnd Coection
21422 '23., 22.11 '" '00.'2 2*3."' ""
22423 ,*.00 30., '* ,0,.*' 3,".'2 ",
2"42' 0"0. *22.01 ** 1,.'1 '0'.2* ''
$te:s t8en ;y %$C/ to ste: u: recovery
-/r%ng 214225 Or%ssa State Cooerat%&e +ank organ%Fed monthl!
re&%ew meet%ng of the CEOs of the CC+s and -RCS. Per%od4w%se target
for each CC+ was f%ed and ach%e&ement re&%ewed. +ank has o/tl%ned
&ar%o/s strateg%es to #e adoted for ste%ng / reco&er!. A $o%nt reco&er!
dr%&e was la/nched at the #ehest of the#ank d/r%ng the month of
-ecem#er5 21 to arch5 222.
Pu;icity t<rou9< Eectronic Medi for Recovery nd 'e:osit Mo;iistion
+ank has reared fo/r ad&ert%sement f%lms for telecast%ng %n the
electron%c med%a for %mro&%ng reco&er! and #oost%ng / %n&estment and
deosts of CC+s and PACS. (or re%m#/rsement of eend%t/re on s/ch
telecast%ng5 NA+AR- has sanct%oned Rs.'.* lakhs5 o/t of Coo.
-e&eloment (/nd. The ad&ert%sement f%lms are #e%ng telecasted.
48
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 49/102
Com:uteriDtion Pro9rmme
(or %mro&%ng the B/al%t! of c/stomer ser&%ce5 streaml%n%ng 6S and
f%nanc%al acco/nt%ng s!stem5 Total +ank A/tomat%on 9T+Ahas ass/med to
r%or%t!. All #ranches %ncl/d%ng ).O. ha&e #eenf/ll! a/tomated. Aart from
the a#o&e5 "* Nos. of staff of -CC+s ha&e #een tra%ned for handl%ng
com/ter. The +ank has met the ent%re cost for de&eloment of software
#! the CC ;td. Calc/tta for a/tomat%n of the #ranches and head off%ces
of the -CC+s. The software has #een s/ccessf/ll! %mlemented at +ank%
CC+ on a %lot #as%s.
Roe in incresin9 9ricutureB :roduction nd :roductivity
Cred%t %s the ke! %n/t for ste%ng of rod/ct%on and rod/ct%&%t!. The
#ank has5 o&er ast few !ears5 ens/red adeB/ac! and t%mel%ness %n cred%t
del%&er!. (low of rod/ct%on cred%t d/r%ng the ast " !ears was as /nder.
er *o of PAC$ finnced *o of Mem;ers finnced Aver9e on :er PAC$
0<riff R;i 0<riff R;i 0<riffi R;i
2142 2,, 2302 "2"',' 2''12 ,.," ".00
2243 2"0, 2',' 30,"1" 2,'2 1.' *.3'
234" 2,0 23 "*32*0 1,,"" 11." '.'2
2"4' 2*' 2'30 "''2 2,1'1 11.*, .2
er ot Cro: on
dis;ursed "in 8<s
Aver9e ondvnced :er
mem;er
%f t<e tot dvncesG/H com:onent (in
8<s)
Per mem;er offt8e of G/H
com:onent (Rs)
0<riff R;i 0<riff R;i 0<riff R;i 0<riff R;i
2142
20*".'* 1103.1* .' .* *1,*.," '"*'."3 .1 .3
2243
2*2'1.* 1*3,2.*' ., .* *01'.11 *3'.3" .2 .2
234"
31,.3* 12,".0 ., ., '0.*, ".0' .2 .3
2"4'
3132".* 22300.13 ., . ,1."" ,"2.3' .2 .3
49
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 50/102
,e:in9 t<e 9ro>t< of ,ndoom Production
6n Or%ssa5 )andloom ro&%des emlo!ment to large n/m#er of
ho/sehold and %s cons%dered net to agr%c/lt/re. The +ank has
f%nanced th%s letter #! s/ort%ng the rod/ct%on and market%ngact%&%t%es of *22 PJCS.
The d%str%ct w%se deta%ls of n/m#er of loans f%nanced5 rod/ct%on
of handloom fa#r%cs and emlo!ment generated %s g%&en #elow :
$*o
*me oft<e
undivided
'istricts
2##3 #4 2##4 #5
*o of+ooms
(:ro9)
Production(+8<
$Fmts)
Em:oyment(Pro9)
*o of+ooms
(Pro9)
Production(+8<
$Fmts)
Em:oyen
t (Pro9)
1. +alasore *31* 2'.03 12*32 '0' 21.,0 11,0*
2. +olang%r 1'"3 223.'1 3* 1,"3 22." 3,"*
3. C/ttack 1021 112."3 30*"2 2,2" 1*.*3 "1""
". -henkanal 201 13.0 '0*2 200* 1.* '002
'. 8an$am *02 3,.' 121" '*', 2'."" 1131"
*. alahand% '321 3.3 1*.2 '321 2.' 1*"2
,. eon$har 2 '." "1* 21*2 ".23 "32"
. ora/t 13* 1."" 2,,2 1"3, .'2 2,"
0. a!/r#han$ 3'2, .'0 ,'" 3'0 '.0 ,1
1. Ph/l#an% "2," ".3' '" ""*2 '.03 02"
11. P/r% 1*0*' ,*.3* 3303 1'0 *3.02 311*
12. Sam#al/r 12*2 **0 3*'2" 1"01 '1.' 3*02
13. S/ndergarh 00" ".3* 100 11*3 ".", 232*
ot 1#344" 36!3 2#6!"! 1#6552 32431 2131#4
%$C /n8 ,ousin9 on $c<eme
On the e&e of the Cele#rat%on of the 8olden @/#%lee of the +ank %n
1005 a c/stomer fr%endl! ho/d%ng scheme was %ntrod/ced for
%nd%&%d/als for own%ng a ho/se #! a&a%l%ng loan on eas%er terms.
50
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 51/102
)o/s%ng f%nance has ga%ned moment/m and the #ranches ha&e
ro&%ded s/#stant%al amo/nt of cred%t for acB/%s%t%onGconstr/ct%on
of ho/se.
,umn Resource 'eveo:ment $trte9ies
The +ank has entered %nto the 21st cent/r! w%th a cororate &%s%on
to #ecome a strong and &%#rant #ank and to lead the S.T. Coo.
Cred%t Str/ct/re to atta%n s/sta%na#le &%a#%l %t! #! ser&%ng the
agrar%an econom! of the State. 6n order to reare the h/man
reso/rces to sho/lder h%gher resons%#%l %t!5 the ACST6 of the
+ank cond/cted ad&anced hard tra%n%ng rogrammes for Off%cers
of the +ank. J%th the hel of NA+AR- one O-6 rogramme was
also cond/cted %n the #ank where%n cross sect%on of emlo!ees
art%c%ated.
*AF$C%/ *tion A>rd to %$C /n8
The NA(SCO+Is sec%al award of OTREAC) %.e. the etent of
%n&ol&ement of the OSC+ and all % ts aff %l %ated -CC+s /nder
&ar%o/s lend%ng rogrammes5 growth of the OSC+ and all % ts
aff% l %ated -CC+s /nder &ar%o/s lend%ng rogrammes5 growth of
ad&ances5 f %nac%ng weaker sect%ons5 etc. for the !ear 100"40'5
100'40*5 100*40, and 100,40 was #agged #! the +ank.
*A/AR's /est Performnce A>rd
The NA+AR- had also recogn%Fed the ecellent erformance of
the +ank #! award%ng the +est Perfomance Award for the !ear
100,40 7 0042.
$tudy on t<e Functionin9 of Mini ;n8s in %riss
At the #ehest of NA+AR- and /nder the Char%mansh% of the
anag%ng -%rector5 OSC +ank5 a st/d! has #een %nst%t/ted on the
f/nct%on%ng of the %n% +anks %n Or%ssa. Cons%der%ng the s/ccess
51
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 52/102
of PACS %n Or%ssa %n mo%ng / r/ral sa&%ngs thro/gh %n% +anks5
the st/d! team had eam%ned %nteral%a5 the &%a#%l%t! of %n% +ank
oerat%on5 delo!ment of f/nds5 staff%ng attern5 etc. Pers/ant to
the recommendat%on of the comm%ttee5 a re&%sed %n% #ank r/le
has #een form/lated5 aro&ed #! the Reg%strar and %mlemented
at -CC+GPr%mar! le&el.
Introduction 0issn Credit Crds in $ Coo: Credit $ector in
%riss
6n t/ne w%th the dec%s%on of the 8o&t. of 6nd%a to %ss/e =%ssan
Cred%t Cards> to farmers to meet the%r cred%t needs for cro
rod/ct%on and other all%ed /roses5 the OSC +ank form/lated
the ol%c! and %ntrod/ced the %ssan Cred%t Card %n the ST Coo.
Cred%t Str/ct/re. Sem%nars were organ%Fed at CC+ headB/arters
to del%#erate on the %ss/e and the scheme has #een la/nched
w%th effect from Ra#%5 100400. 1152050," nos. of CC ha&e #een
%ss/ed #! 31.3.22. Or%ssa stood at 3 rd %n co/ntr! %n d%str%#/t%on
of CC net to Andhra Pradesh and Ra$asthan. 6n Or%ssa5 ent%re
short term cred%t %s d%sensed thro/gh CC onl!. The +ank has
also fac%l%tated %ssan Cred%t Card holders meets thro/gh o/t thenooks and corners of the state where%n off %cers of the -CC+s5
sen%or off%cers of OSC+ and Agr%c/lt/re -eartment art%c%ated.
+ottlenecks on smooth oerat%on of the scheme and d%sensat%on
of t %mel! and adeB/ate cred%t were %dent% f%ed and correct%&e
act%ons were %n%t%ated then and there.
%r9nistion nd in89e of sef ,e: -rou:s
6n order to e&ol&e g/%del%nes and roced/res for ro&%d%ng cred%t
to the down t rodden thro/gh Sel f )el gro/s5 the #adnk
cond/cted a st/d! on f/nct %on%ng of s/ch gro/s %n North 2"
52
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 53/102
ragana and )ooghl! -%str%cts of Jest +engal. On the #as%s of
f %nd%ngs of the st/d!5 g/%de l %nes were %ss/ed5 workshos were
organ%Fed at OSC+ and -CC+ le&el to fac%l%tate organ%Fat%on and
l%nk%ng of S.).8s #! these concerted efforts5 the ECC+s co/ld
organ%Fe 13' S)8s5 l%nked 2'0 S)8S and ro&%ded Rs.220.2
;akhs as loan to these gro/s #! 31.3.22.
0in9 0issn -od Crd
The #ank has %nno&ated the /n%B/e al%nga %ssan 8old Card
scheme to recogn%Fe and reward the good rea!ment ha#%ts of
farmer mem#ers of PACS. A ackage of fac%l%t%es %ncl/d%ng less
%nterest on a ll t !es of loans5 free acc%dent %ns/rance of
Rs.2'.5 ann/al lotter!5 eos/re &%s%ts5 freedom to /rchase
fert% l%Fer and est %c%des from an! reta% l o/tlet and schemat%c
lend%ng on a r%or% t! #as%s. The 8o&t. of Or%ssa aro&ed the
scheme wh%ch was la/nched on 2*.".21.
The scheme has el%c%ted tremendo/s resonse from the farm%ng
comm/n% t%es. +! 31.3.225 22513 farmer mem#ers were
ro&%ded w%th the card.
Pro9ress of t<e %riss $tte Coo:ertive /n8 over 52 ers t
9nce
er 4"5# 5#51 5152 5253 5354 5455
Share Ca%tal 3.'3 ".* '. '.2" '.2 '.'3
Reser&es .'' 1.2 1.'2 1.0* 2.30 2.01
Owned (/nd ". '.*2 *.'2 ,.2 ,.*, .""
-eos%t 12.32 1'.3 1'.", 10.'1 21., 32.,0
+orrow%ngs 2*.' 33.1 3". 2". 33. 33.00
6n&estments ".3 ".,1 '.21 . 11.' 11.0
Ad&ances 3'.*" "3.*2 ".2' "1.1' "*.,0 '0.20
Cost of anagement .2* .2 .3' .3, .30 ."2
Jork%ng Ca%tal *3.,0 ''."2 ',.1 '2.1* *".02 ,,.1
53
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 54/102
Net Prof%t 9K: ;oss 94: K.2 K.'3 K., K.,1 K.,* K.*
-%&%dend -eclared 9H: ".' ".' ".' ".' ".' ".'
er 5556 565 55! 5!5" 5"6# 6#61Share Ca%tal *. 0.2, 1".03 1.0 21.'* 23.21
Reser&es 2.' 3."1 ".'1 *.30 ,.,* 11.",
Owned (/nd .03 12."1 10."" 2'.2 20.32 3".*
-eos%t *2.0 1.*2 1'.1' 13*.*" 1*.0 1*"."'
+orrow%ngs "2.02 "3.' *".2' *,." ,'.1* 13.23
6n&estments 1'.0 2.22 2."' 3.'" ''.*2 *.1'
Ad&ances 1.*, *.3" 11,.' 1"*." 101.,* 2"".2
Cost of anagement .", .' .*" .,* .' .
Jork%ng Ca%tal 11."0 1*".0 2"." 2'.* 2".0, 3".,1
Net Prof%t 9K: ;oss 94: K1.' K2.1 K3. K3.,' K3.*, K3.03
-%&%dend -eclared 9H: '. * * * * *
er 6162 6263 6364 6465 6566 666
Share Ca%tal 2,.13 3,. "*."" '.10 '"."' '0."1
Reser&es 1".0 1'."1 1,.01 21., 2,.' ,0.1'
Owned (/nd "1.22 '3.20 *".3' ,2.* 2.' 0.'*
-eos%t 1**.* 20."* 21,.2' 21., 22.'* 2''.'
+orrow%ngs 1*.3, 2".*3 3**.'2 ",3.*, '21.'0 '3.3"
6n&estments 3.,* ,,.11 2.2" 02.1 11".*' 12*.3'
Ad&ances 313.2 "2'."3 '31." '".32 ,.*, ,1".,,
Cost of anagement .0* 1." 1.2 1."* 1.*0 1.02
Jork%ng Ca%tal "".2 '*2.0 *1., ,03.,0 02."' 0.*0
Net Prof%t 9K: ;oss 94: K".2 K'.," K,.2, K.31 K.0 K0.1
-%&%dend -eclared 9H: * * * * * *
54
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 55/102
er 66! 6!6" 6"# #1 12 23
Share Ca%tal ,1.2 ,'.2" ,0.2" ,0.*3 3.0" 0*.20
Reser&es '1.' 2.,1 121.0' 1"'.* 1*,.10 1,0.,2Owned (/nd 122., 1',.0' 21.10 22'.20 2'1.13 2,*.1
-eos%t 22.3" 3'."3 322.02 3"1.20 "0'.1* *3.'*
+orrow%ngs '*.,1 "*.* '".'3 13."* 1'2.23 33.""
6n&estments 130.,* 1,0.' 212.30 23. 2"1.23 2*.
Ad&ances ,.1 ,*.' *02.,3 '0.3, *2,.3 23.'3
Cost of anagement 2.2* 2." 2." 3.1, 3.0, "."'
Jork%ng Ca%tal 00.2 00*.1 0".,2 ,,.21 021.0 1230.2
Net Prof%t 9K: ;oss 94: K0. K0.0 K0.0 K1.* K1.0 K".00
-%&%dend -eclared 9H: * * * * * 3
er 34 45 56 6 ! !"
Share Ca%tal 00."' 1".3 123.02 1*.30 21,.3* 2,2.1
Reser&es 1"."3 10." 102."* 2".,, 220.3" 2*2.21
Owned (/nd 23.* 20'.23 31*.3 3*'.1* ""*., '"3.30
-eos%t *1.,1 ,00.'1 10.*2 '"*.3* 102.,* 232.3,
+orrow%ngs 3'.3 '".3 *"1.*' 1"*."2 1*2."0 222'.02
6n&estments 2*,.22 2*0.'0 31'.", '.", '1".2' ',1.*
Ad&ances .32 120,.20 1'". 2,,'.' 3132.* "2*2.,'
Cost of anagement '.1* *.' ., 1.*" 12.,, 22."
Jork%ng Ca%tal 13'0.3 1*1.,0 202.3 3",0 "230.3 '1,1.''
Net Prof%t 9K: ;oss 94: K'.*" K.* K0.'3 K22."" K3. K".3
-%&%dend -eclared9H: 2 N%l 3 ' ' *
55
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 56/102
er "!# !#!1 !1!2 !2!3 !3!4 !4!5
Share Ca%tal 3,." "",." "",.", *13. ,,.** ,3*.
Reser&es "11.3* *".33 2,."2 11''.* 1**.0 10*.'Owned (/nd ,2.2 1'1. 13"2.** 1,*.* 231".'* 2,".13
-eos%t 322. 3"03.13 3*.*1 33,*."1 20'.*" 31,,.,2
+orrow%ngs 3,,,."' '2*1. *12.0' 01,.* 1'3*.* 1'*.*'
6n&estments *.'* ,03.11 00. 0*."" 122".'1 1'2.'
Ad&ances *,*1.*3 '1.32 13',.0 13',."1 1'12.,2 1'11'.02
Cost of anagement 21.2* 2,.*, 30.1 "1.'2 "0."" 02.13
Jork%ng Ca%tal ,,0.,0 113".*, 11,30.* 1'110.* 1*,*2.3, 1,*2.'2
Net Prof%t 9K: ;oss 94: K''.1* K,0.'1 K01.'1 K0,."0 K2. K'*.11-%&%dend -eclared9H: *.' *.' *.' *.' ' 3
er !5!6 !6! !!! !!!" !""# "#"1
Share Ca%tal ,"3.10 ,".3 ,*3.0 ,,'.0 ,0.0 2*.2
Reser&es 212*.'0 222*.1" 2"33."2 2"0*.' 2,'2.3' 20*.*
Owned (/nd 2*0.,0 2,"."" 310,.31 32,2.'* 3'"2.30 312.,
-eos%t 2010.23 "13.23 "32*."3 "*. "*'3.1" "0,1.2"
+orrow%ngs 1"1.3, 012.02 1'".33 12111.11 1"211. 12'1.1,
6n&estments 1'*1.00 1"'.* 1,11. 1031.13 21'*.13 2,20.3
Ad&ances 1"'22., 1"102.3* 1'001.0 1,'10.3* 10"3".,* 12"**.2'
Cost of anagement 0,.32 ,.'2 111.3, 13., 11*.*' 1*'.*
Jork%ng Ca%tal 1,123."" 1,2*1.2, 10'1,.01 21'*".0 2"1.*" 22*2.,*
Net Prof%t 9K: ;oss 94: K"0.' K'.31 K',.12 K',.2 K*."3 K".22
-%&%dend -eclared9H: 3 3 3 3 3.' 3
56
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 57/102
er "1"2 "2"3 "3"4 "4"5 "5"6 "6"
Share Ca%tal 20.30 "1.3 ".* '".13 13,.'' 11.3'
Reser&es 311".12 3122.*, 3,*2." "10.1 "'1,.,' ",11.Owned (/nd 30"3.'1 30*3., "*11.1* '"1.1" ''''.3 '00.3'
-eos%t ,3'*." 31.22 00'.1* 1231".1
1*3'"."
23,.3"
+orrow%ngs 11,,.,"
1*".
113'1.21
1*"'.*
102"'.,
2"121.30
6n&estments 3''".01 30".*1 '""*.0" *0"1." 11,".*"
13'31.'*
Ad&ances 1'23.3
3
1*'"".
*
1000.'
,
2*2"*.'
3030."
3
""22.1
Cost of anagement 10.32 2,,12 20,.2' 3"2.,0 "*2.2 '01.33
Jork%ng Ca%tal 2'2".'
2'03.,*
2"."
3*203.2
""'0."*
',,*.21
Net Prof%t 9K: ;oss 94: K,'.* K'., K,'.1' K03.3* 11.' 1.'2
-%&%dend -eclared 9H: 3.' 3 3 3 ' ,
er ""! "!"" ""## ###1 #1#2
Share Ca%tal 102'.'3 2"''.1, 2*".3, 311.' 3,'2.2
Reser&es ','2.'2 ,02.22 03".0 0*2.3 1*"."
Owned (/nd ,*,.' 0'",.30 11','.2, 12*3. 1 "*1,.12
-eos%t 33'*0.', "1,.3, '**. ,312*.'0 ,"2.1
+orrow%ngs 3'',.* 3,*".0* "*12".2* ""100."* '2200.'
6n&estments 13'".' 22,.,* 200.0 "31,.'" '0"*.*1
Ad&ances '30,0.*' *"0'2.* '3.* 311'.2 0103.,*
Cost of anagement *,.'" ,2.' ,1." 0'*.03 1"'.13
Jork%ng Ca%tal 1'".3* 03*'2.2 230*.1' 13**1.'2 1**00*.*
Net Prof%t 9K: ;oss 94: 2.*2 30*.03 '2'.,3 *"0.2" ,"0.'3
-%&%dend -eclared 9H: 0 0 0 0 1
57
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 58/102
ANNA; 8ENERA; +O-< EET6N8
Esteemed $<re<oders
6 welcome !o/ all to the '"th Ann/al 8eneral +ode! meet%ng of
the #ank and take th%s oort/n%t! to lace #efore !o/ the a/d%ted
f%nanc%al statements5 Ann/al Reort of the #ank for the !ear 214225
the #/dget and work rogramme of the #anl for the !ear 2342" for
!o/r k%nd cons%derat%on and aro&al.
<e Economic $cenrio
The econom%c s/r&e! of the co/ntr! resented a growth of the 8ross
-omest%c Prod/ct 98-P of '.* ercent d/r%ng the !ear /nder reort as
aga%nst eectat%ons and ass/mt%ons of *.' ercent. The growth of
agr%c/lt/re and all%ed act%&%t%es as a art of the 8-P rose s/#stant%all!
#! '.0 ercent as aga%nst negat%&e growth rate at '." ercent d/r%ng the
!ear 241. -/r%ng the so/th4west monsoon season of 215 3
meteorolog%cal S/#4-%&%s%ons rece%&ed ecessGnormal ra%nfall %nd%cat%ng
#etter sat%o4temoral d%str%#/t%on of ra%nfall. The north4east monsoon
also t/rned o/t to #e #etter d/r%ng 21425 wh%ch #oosted the food
gra%n rod/ct %on to 212 m%l l%on tones as aga%nst re&%o/s !earIs
rod/ct%on of 100.' m%l l %on tones. )owe&er5 the %nd/str%al sector has
grown at a lower rate of 3.3 ercent %n 2142 as aga%nst *.2 ercent
%n 241. The %nd/str%al slowdown ermeated all const%t/ent s/#4
sectors5 art%c/larl! the man/fact/r%ng sector5 wh%ch decelerated to 3.3
ercent %n 2142 from *., ercent %n 241. The ser&%ces sector5 on
the other hand5 recorded a h%gher growth at *.2 ercent %n 2142 from
' ercent %n 2415 tho/gh the ace rema%ned slow %n relat%on to a
growth of 0." ercent atta%ned %n 100042.
6n the redom%nantl! #ank #ased f%nanc%al sta#%l % t! has cont%n/ed to
ass/me tremendo/s %mortance d/r%ng the !ear /nder reort. Jhereas5
%n the %nternat%onal arena the #ank%ng oerat%ons ha&e #een /ndergo%ng
58
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 59/102
drast%c metamorhos%s5 f%nanc%al sta#%l%t! has come to the center stage
for the lanners and ol%c! makers. The monetar! and cred%t ol%c!
anno/nced #! the Reser&e +ank of 6nd%a d/r%ng the !ear /nder reort5
a%med at %ncreas%ng oerat%onal effect%&eness5 redef%n%ng the reg/lator!
role of the R+65 strengthen%ng r/dent%al and s/er&%sor! norms and
%mro&%ng the cred% t del %&er! s!stem. 6n order to accord greater
f le%#%l %t! to cooerat %&e #anks and to ena#le them to attract good
#orrowers %n a comet%t %&e en&%ronment5 the st%/lat%on of m%n%m/m
lend%ng rates for all cooerat%&e #anks was w%thdrawn #! the ae #ank
of the co/ntr!. The cooerat%&e #anks also ha&e #een asked to /#l%sh
m%n%m/m and ma%m/m lend%ng rates charged for the %nformat%on of
the%r c/stomers. The /n%on +/dget anno/nced on 2 th (e#r/ar!5 22
ro&%ded a token contr%#/t%on of Rs. 1 crore for %mlementat%on of
re&%tal%Fat%on ackage recommended #! the Cator Comm%ttee. Another
h%gh le&el Comm%ttee was ao%nted /nder the Cha%rmansh% of n%on
%n%ster of State for (%nance #! the n%on 8o&ernment to worko/t the
modal%t%es to %mlement the ackage #! e&ol&%ng consens/s among the
States.
The ma$or %ss/es on the d/al%t!Gm/lt%l%c%t! of control of the cooerat%&ecred%t %nst%t/t%ons cont%n/ed to come %n the wa! of effect%&e reg/lat%on
and s/er&%s%on of cooerat%&e #anks. The recommendat%ons of the
Cator Comm%ttee on th%s s/#$ect co/ld not #e %mlemented d/r%ng the
!ear. 6n th%s contet5 a draft #%ll s/#m%tted #! Reser&e +ank of 6nd%a to
resol&e the %ss/e thro/gh amendment of the +ank%ng Reg/lat%on Act5
10"0 rather than amendment of resect%&e State Cooerat%&e Soc%et%es
Acts was referred to the h%gh le&e l Comm% ttee.
As on arch 315 225 0, Commerc%al +anks5 10* Reg%onal R/ra l
+anks5 '2 r#an Cooerat%&e +anks and 1* state Cooerat%&e +anks
were oerat%ng %n 6nd%a as Sched/led +anks. The growth of aggregate
deos%ts of the sched/led Commerc%al +anks decelerated from 1."
ercent d/r%ng 241 to 1".* ercent d/r%ng the !ear /nder reort.
59
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 60/102
S%m%larl!5 the growth %n cred%t etended #! them has also recorded a
decl%n%ng trend from 1,.3 ercent to 1"." ercent. The ann/al monetar!
and cred%t ol%c! statements and the m%d term re&%ews #! the Reser&e
+ank of 6nd%a cont %n/ed to foc/s on the str/ct/ral and reg/lator!
meas/res needed to strengthen the f%nanc%al s!stem and %mro&e the
f/nct%on%ng of &ar%o/s segments of the f%nanc%al market. The #ank rate
was red/ced to *.' ercent w%th effect from Octo#er 205 22 and the
CRR rate was also #ro/ght down to ".,' ercent w%th the %nf lat%on
conta%ned at s %ngle d%g%t . The 6nd%an #ank%ng sector as a whole5
%ncl/d%ng the cooerat%&e #anks5 resonded to the emerg%ng challenges
and #ro/ght a#o/t ercet%#le %mro&ement %n c/stomer ser&%ce #!
%nno&at%ng new rod/cts and adot%ng %nformat%on technolog!. )owe&er5
d/r to non4%mlementat%on of the recommendat%ons of the Task (orce
ao%nted /nder the Cha%rmansh% of @agad%sh Caoor5 the then -e/t!
8o&ernor of Reser&e +ank of 6nd%a5 the d%f f%c/lt %es faced #! the
cooerat%&e #anks cont%n/ed d/r%ng the !ear /nder reort. 1" o/t of
3*, -%str%ct Central Cooerat%&e +anks ha&e fa%led to coml! w%th the
Sect%on 1191 of the +ank%ng Reg/lat%on Act5 10"0. S%m%larl!5 0 o/t of 3
State Cooerat%&e +anks also cont%n/ed to rema%n Sect%on 11 non4
coml%ant. The Reser&e +ank of 6nd%a and NA+AR- etended the one
t%me Settlement scheme to the cooerat%&e #anks to arrest the growth of
non4rod/ct%&e assets.
%ur Ac<ievements
<o/r #ank has cont%n/ed to take on the comet%t %on s/ccessf/ll! %n
s%te of slow down %n the o&erall erformances of the State Cooerat%&e
+anks of the co/ntr!. The deos%ts of the #ank %ncreased f rom
Rs.,31.2, crore to Rs.,".2 crore #! record%ng a health! growth rate
of 2 ercent as aga%nst 1.2 ercent of all State Cooerat%&e +anks.
)owe&er5 the o/tstand%ng loans and ad&ances recorded a growth of
onl! 1 ercent as aga%nst the all 6nd%a a&erage of 0.' ercent ma%nl!
d/e to the d%ff%c/lt%es eer%enced #! the Sect%on 11 non4coml%ant
60
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 61/102
-CC+s to ens/re smooth f low of cred%t mostl! on acco/nt of non4
reco&er! of loans. The work%ng ca%tal of the #ank %ncreased from
Rs.13*.*2 crore to Rs.1*,".', crore record%ng a growth of 21 ercent
o&er the last !ear. The aggregate reco&er! of loasn of the #ank has
decelerated from * ercent d/r%ng the !ear 241 to 2." ercent
d/r%ng the !ear /nder reor t large l! d/e to hea&! de fa/ lt #!
+hawan%atna5 +olang%r5 +o/dh and n%ted P/r%4N%maara Central
Cooerat%&e +ank. )owe&er5 !o/r #ank has earned a net rof% t of
Rs.,"0.'3 lakh after mak%ng adeB/ate ro&%s%on aga%nst non4rod/ct%&e
assets as er the g/%del%nes of the Reser&e +ank of 6nd%a. The d%&%dend
for the !ear /nder reort %s roosed at 1 ercent for aro&al of the
8eneral +od!. The er #ranch and er emlo!ee #/s%ness of the #ank
has scaled to new he%ghts at Rs. 20,.*3 crore and Rs. ,. crore
resect%&el!5 wh%ch %s one of the h%gest %n the 6nd%an #ank%ng %nd/str!.
Im:ementtion of 0isn Credit Crd $c<eme
<o/r #ank has cont%n/ed %ts efforts to strengthen and sta#%l % t %es the
%san cred%t card scheme %n tandem w%th the %mortance attached to the
scheme #! the /n%on go&ernment. 6n add%t%on to etend%ng %ts reach to
all el%g%#le farmer mem#ers5 emhas%s was la%d on the oerat %onal%ntr%cac%es of the scheme to emower the target gro/. The c/m/lat%&e
%ss/e of cards has crossed the mark of 1 lakh and reached the le&el of
1152050," #! 31.3.22 as aga%nst the target f%ed for %ss/e of 1.'
lakh cards. J%th streaml%n%ng of the oerat%on of the %san Cred%t Card
scheme5 !o/r #ank has s/cceeded %n d%s#/rs%ng record amo/nt of cro
loan d/r%ng the !ear /nder reort amo/nt%ng to Rs.313 crore %n har%ff
and Rs.22" crore %n Ra#% aggregat%ng to Rs.'3, crore. There has also
#een a henomenal %ncrease %n the er ca%ta d%s#/rsement of cro
loan from Rs.132G4 %n 1001402 to Rs.,5'G4 d/r%ng the !ear /nder
reort.
61
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 62/102
0in9 0issn -od Crd
The /n%B/e and %nno&at%&e al%nga %ssan 8old Card scheme la/nched
on 2*.".21 to recogn%Fe and reward good rea!ment ha#%ts of the
%ssan Cred%t Card holders to create a cond/c%&e reco&er! cl%mate %n
the State el%c%ted tremendo/s resonse from the cross sect%on of the
comm/n%t! and the same has #een h%ghl! accla%med #! Reser&e +ank
of 6nd%a5 NA+AR-5 NA(SCO+ and other State Cooeat%&e +anks. The
w%de range of fac%l%t%es a&a%la#le /nder the scheme are 1 ercent less
%nterest %n all t!es of loans5 free acc%dent %ns/rance co&erage of
Rs.2'5G4 cons/mt%on loan / to Rs.'5G4 mem#ersh% of the
al%nga %ssan 8old Card Cl/#5 art%c%at%on %n ann/al lotter! carr!%ng 3
r%Fes amo/nt%ng to Rs.'5G4 Rs.35G4 and Rs.25G4 freedom
to /rchase fert%l%Fer and est%c%des from an! reta%l o/tlet of the%r cho%ce
and a&a%la#%l%t! of schemat%c loans on a r%or%t! #as%s. +! 31.3.225
22*3 cards were d%str%#/ted to el%g%#le farmer mem#ers and aro/nd
1 cardholders were taken to the farms of OAT and the CRR65
C/ttack on st/d! &%s%t to ena#le them to learn ad&anced technolog! %n
agr%c/lt/re for wh%ch5 !o/r #ank has ro&%ded ass%stance to the -CC+s
Rs.15G4 each. J%th%n one !ear of % ts la/nch%ng5 the schemestarted !%ld%ng des%red res/lts #! %mro&%ng the reco&er! os%t %on at
PACS le&el from "* ercent %n 241 to '* ercent %n 2142.
Informtion ec<noo9y
<o/r #ank %s the f %rst State Cooerat%&e +ank of the co/ntr! to
com/ter%Fe the oerat%ons of %ts head off%ce and the reta%l o/tlets to
ro&%de modern #ank%ng fac%l % t %es at ar w%th r%&ate and commerc%al
#anks. ATs ha&e #een %nstalled %n select +ranches and Etens%onCo/nters to ro&%de an!t %me #ank%ng to the c/stomers. 6n order to
ro&%de f le%#le #ank%ng ho/rs to the general /#l %c5 the #ank has
etended %ts #ank%ng ser&%ce /to ,.3 P %n Sah%dnagar and C/ttack
#ranches5 arketed Etens%on Co/nter and -A Etens%on Co/nter.
+es%des5 as a art of % ts de&elomental %n%t %at%&e to consol%date the
62
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 63/102
Short Term Cooerat%&e Cred%t str/ct/re to coe w%th the emerg%ng
challenges conseB/ent /on f%nanc%al sector reforms5 !o/r #ank has
taken stes to com/ter%se the head off %ce and #ranches of the
aff% l %ated -%str%ct Central Cooerat%&e +anks 9-CC+s. A total #ank
a/tomat%on software ent%t led =Sama#a!a> has +en de&eloed #! the
#ank for the /rose #! engag%ng CC ;td. olkata at a cost of Rs."*
lakh and the same has #en ro&%ded to the -CC+s free of cost. After %ts
s/ccessf/l %mlementat%on %n +ank% CC+ on a %lot #as%s5 the software
has #een ro&%ded to other -CC+S for %mlementat%on w%th techn%cal
ass%stance #! a core team const%t/ted at OSC+ le&el. 6t %s eected that
the head off %ce and ma%n #ranches of all the -CC+s w% ll #e f/l l!
com/ter%Fed #! 31.12.23.
resury Mn9ement Ce
<o/r #ank has esta#l%shed a Treas/r! anagement Cell 9TC d/r%ng
a! 21 w%th the o#$ect%&e of delo!ment of %ts s/rl/s reso/rces %n
rof%ta#le a&en/es and trad%ng %n 8o&ernment and other sec/r%t%es %n
the mone! market. The #ank has %nstalled Re/ters +/s%ness watch
fac%l %t! to get onl %ne data f rom the sec/r%t! market. The TC %s
manag%ng a ortfol%o of Rs. '0' crore5 wh%ch %s S/#$ects to &ar%at%on ona da!4to4da! #as%s. The ortfol%o %ncl/des S;R %n&estment of Rs. 2*2
crore and non4S;R %n&estment of Rs. 333 crores. The TC has made a
trad%ng rof%t of Rs. 0.' crore d/r%ng the !ear 2142. 6n the era of
f %n%cal l %#eral%Fat%on and conseB/ent fal l %n %nterest rates5 the 84Sec
market holds the ke!s for rof%ta#le %n the #anks. The OSC+ a%ms at
%ncreas%ng %n&estment %n th%s ortfol%o to delo! all %ts s/rl/s reso/rces
%n rof%ta#le a&en/es.
Eceence Reco9niDed
6n recogn%t%on of the o/tstand%ng erformances for !o/r #ank all growth
arameters5 the Nat%onal +ank for Agr%c/lt/re and R/ral -e&eloment
awarded the #ank w%th the #est erformance award5 wh%ch was handed
o&er #! the then )onI#le n%on %n%ster of (%nance5 Sr% <ashwant S%nha
63
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 64/102
on 12 th @/l!5 21. #e%s%des5 the Nat %onal (ederat %on of State
cooerat%&e +anks has awarded the #ank of o/treach %n mo#%l%Fat%on of
reso/rces.
Are of Concern
6n s%te of s/#stant%al %mro&ement of reco&er! at grass roots le&el
conseB/ent /on %mlementat%on of al%nga %ssan 8old Card scheme5
low reco&er! of loans and non ass%ng on of reco&er%es to the h%gher
t %ers cont %n/ed to affect the f %nanc%al erformance of most of the
-CC+s5 wh%ch cont%n/ed to ha&e a d%rect #ear%ng on the erformances
of !o/r #ank. Altho/gh d/r%ng the !ear /nder reort5 " o/t of 12 Sect%on
11 non comla%nt -CC+s %mro&ed the%r erformances and coml%ed
w%th the stat/tor! reB/%rements5 eemt%on for the rema%n%ng #anks
co/ld not #e a&a%la#le from the 8o&ernment of 6nd%a for wh%ch5 !o/r
#ank faced d%f f%c/lt %es to arrange f/nds to s/ort the%r lend%ng
act%&%t%es. The aggregate defa/lt towards r%nc%al and %nterest of the 12
-CC+s amo/nted to Rs.01.2 crore as on 31.3.22 of wh%ch5 the
defa/lt of +hawan%atna5 +olang%r and n%ted P/r%4N%maara -CC+s
amo/nted to Rs.01.2 crore as on 31.3.22 of wh%ch5 the defa/lt of
+hawan%atna5 +olang%r% and n%ted P/r%4N%maara CC+s were atRs.1*."2 crore5 Rs.1*.* crore and Rs.3'.*3 crore resect %&el!.
Jhereas cont%n/o/s ag%tat%onal rogramme of the cadre emlo!ees %n
Na!agarh and n%ted P/r%4N%maara CC+s ad&ersel! affected the%r
erformance5 %n +hawan%atna CC+5 lack of adeB/ate s/er&%s%on and
mon%tor%ng was cons%dered to the #e reasons for s/ch ser%o/s f%nanc%al
cr%s%s. The handloom sector cont%n/ed to s/f fer d/e to gross
m%smanagement of affa%rs of the )andloom Jea&ers Cooerat%&e
Soc%et%es. The aggregate cred%t l%m%ts sanct%oned #! NA+AR- %n fa&o/r
of -CC+s for f%nanc%ng )andloom Jea&ers Cooerat%&e Soc%et%es ha&e
#een drast%call! red/ced from Rs. *'.2 crore d/r%ng 100042 to
Rs.21.32 crore %n 2421 and Rs. 2'.1 crore for the !ear /nder
reort largel! d/e to the%r oerat%onal def%c%enc%es. +es%des d/e to non4
64
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 65/102
sanct%on of ref%nance ass%stance #! NA+AR- %n fa&o/r of Or%ssa State
)andloom Jea&ers Cooerat%&e Soc%et! 9+o!an%ka5 the #ank had to
%n&ol&e % ts own f/nds to the t/ne of Rs. 13. crore. Altho/gh the
8o&ernment o f Or%ssa had ro&%ded g/arantee to NA+AR- for
rea!ment of the d/es5 w%tho/t %n&ok%ng the same5 !o/r #ank has
%n&ol&ed Rs.'3 crore from %ts own reso/rces.
6t %s an acknowledged fact that after %ntrod/ct%on of %san Cred%t Card
scheme5 the Commerc%al +anks and the Reg%onal R/ral +anks ha&e
#een enter%ng %nto the arena of agr%c/lt/re f%nanc%ng %n a #%g wa!. The
res/ltant effect %s ercet%#le from the%r share %n d%sensat%on of cro
loan d/r%ng last 3 !ears. Jhereas at All 6nd%a le&el5 the%r share has
#een %ncreased from "' ercent to " ercent5 %n o/r State5 the same
has #een %ncreased from 2 ercent to 31 ercent. nless the PACS
and -CC+s %mro&e the%r erformances %n d%sens%ng farm cred%t5 % t
wo/ld #e d%ff%c/lt to sto the rogress of Commerc%al +anks5 who ha&e
#een a/gment%ng the%r efforts to enetrate %nto the r/ral areas. <o/r
#ank has %ntrod/ced the al%nga %ssan 8old Card scheme w%th the
ma$or o#$ect%&e of %mro&%ng the reco&er! os%t %on of the short term
cooerat%&e cred%t str/ct/re. 6 wo/ld %mress /on all concern to takead&antage of the %n4#/%lt fac%l%t%es of the scheme to #/%ld / a lo!al and
d%sc%l%ned cl%entele #ase to take on the comet%t%on and %mro&e the
o&erall erformance.
+eders<i: Initites
J%th the o#$ect%&e of consol%dat%ng the short term cooerat%&e cred%t
str/ct/re of the state to coe w%th the emerg%ng challenges5 !o/r #ank
has taken a n/m#er of %n% t%at %&es d/r%ng the !ear /nder reort. 6nadd%t %on to the %n%t %at%&es taken for com/ter%Fat%on of the -CC+s to
strengthen the anagement %nformat%on s!stem and to ro&%de effect%&e
and eff%c%ent c/stomer ser&%ce5 OSC+ has cont%n/o/sl! mon%tored the
erformances of the -CC+s and PACS thro/gh monthl! re&%ew meet%ng
at state le&el and ens/red %mlementat %on of &ar %o/s lans and
65
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 66/102
rogrammes #! d%rect s/er&%s%on. 6mlementat%on of -e&eloment
Act%on Plans was reg/larl! mon% tored and sec %f %c stes were taken for
%mro&%ng the erformance of the sect%on 11 non4coml%ant #anks. J%th
the s%ncere efforts and t %mel! g/%dance of !o/r +ank5 " o/t of 12
Sect%on 11 non4comla%nt Central Cooerat%&e +anks #ro/ght a#o/t a
t/rn aro/nd %n the%r o&erall erformances #! mak%ng the%r net worth
os%t%&e to coml! w%th the stat/tor! reB/%rements.
<o/r #ank has also %ntrod/ced a s!stem of monthl! rat%ng of the -CC+s
on the #as%s of the%r erformances on &ar%o/s arameters and %nst%t/ted
3 r%Fes for the #est erform%ng #anks to %nc/lcate a comet%t%&e s%r%t
among them. The emlo!ees of the -CC+s and the PACS were also
rewarded thro/gh an %ncent%&e ackage on the #as%s of erformance on
deos%t mo#%l %Fat %on and reco&er!. The s!stem of ro&%d%ng l %#eral
grants to the -CC+s cont%n/ed th%s l %#eral grants to the -CC+s
cont%n/ed th%s !ear /nder wh%ch5 Rs. 1 lakh each was ro&%ded to the
-CC+s for facel% ft of the%r #est erform%ng #ranch on the #as%s of
deos%t mo#%l %Fat%on. <o/r #ank has also cont%n/es to re%m#/rse the
salar! of the Ch%ef Eec/t%&es of the -CC+s to ease the%r f %nanc%al
#/rden. Al l these de&eloment %n %t %a t%&es were d% rected towards consol%dat %on of
the short term cooerat%&e cred%t str/ct/re of the state to coe w%th the
chang%ng en&%ronment after %ntrod/ct%on of the f%nanc%al sector reforms.
6 wo/ld reB/est all concerned to take ad&antage of the l%#eral f%nanc%al
ass %s tance and s/ort ro&%ded #! the #ank to s trength the %r
erformances and to atta%n s/sta%na#le &%a#%l%t! at the earl%est.
,umn Resources 'eveo:ment<o/r #ank has g%&en to r%or%t! to the de&eloment of h/man reso/rces
of %ts own and the aff%l %ated -CC+s. The emlo!ees of the #ank were
sent to &ar%o/s nat%onal le&el tra%n%ng %nst%t/t%ons to acB/%re eert%se on
&ar%o/s areas of #ank%ng technolog!. )R- tra%n%ng rogrammes were
arranged for all the off%cers of the #ank w%th the hel of N6S Sarta to
66
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 67/102
g%&e them an %ns%ght %nto the%r attern of #eha&%o/r and the need to for
adat%ng themsel&es to the chang%ng c%rc/mstances.
The Agr %c/l t/ra l Cooerat%&e s taff Tra %n %ng 6nst% t/ te has #een
strengthened w% th adeB/ate t ra%ned fac/l t! and latest t ra %n%ng
eB/%ments to ro&%de need #ased tra%n%ng to the ersonnel to %mro&e
the% r knowledge5 sk% ll and att% t/de to coe w% th the chang%ng
reB/%rement of the #ank%ng %nd/str!. Need #ased s%m%lar and workshos
on #/rn%ng to%cs and new schemes were cond/cted #! the #ank at %ts
head off %ce and at the -CC+ le&el to / date the knowledge of the
emlo!ees. Now tra%n%ng rogrammes l%ke =arket%ng of +ank Ser&%ces>
and =Organ%Fat%onal -e&eloment Strateg%es> were %ntrod/ced #! the
%nst%t/te d/r%ng the !ear /nder reort. The ho/se $o/rnal of the #ank
=Samark> cont%n/ed to carr! to%cal %ss/es on trends and rogress %n
#ank%ng and %t also ro&%ded a for/m to the emlo!ees to share the%r
&%ews and eer%ence.
Cor:orte vision
<o/r #ank has #een work%ng on a cororate &%s%on lan for the !ear
21 kee%ng %n & %ew the de&eloment %n the #ank%ng %nd/str!
conseB/ent /on the f%nca%al sector reforms %ntrod/ct%on %n the co/ntr!.
The lan shall5 %nterla%d5 %ncl/de organ%Fat%onal5 s!stem%c5 f %nanc%al5
manager%al and ersonnel reeng%neer%ng and restr/ct/r%ng of the #ank
and the aff %l %ated short term cooerat %&e cred%t str/ct/re w%th the
o#$ect %&e of strengthen%ng the agrar%an econom! of the state. The
o#$ect%&e can #e f/lf%l led onl! #! strengthen%ng the PACS #! con&ert%ng
them as rof% t centers and mem#er dr%&en organ%Fat%ons caa#le
eno/gh to cater to the ent%re cred%t reB/%rement of the%r mem#ers.<o/ are all aware that the n%on (%nance %n%ster5 %n h%s #/dget seech
on 2.2.23 has %nd%cated to allow r%&ate sector #anks to enter %nto
the shere of agr%c/lt/ral f%nanc%ng #! oen%ng #ranches %n r/ral areas.
6n the ast5 the cooerat%&e #anks ha&e s/ccessf/ll! w%thstood the
onsla/ght of the m/lt%4agenc! aroach %n d%sensat%on of farm cred%t
67
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 68/102
and w%thdrawal of State atronage. ;et /s accet the new challenge to
take on the r%&ate #anks along w%th the commerc%al #anks and the
RR+s #! re&am%ng o/r f/nct%on%ng and com%ng close to o/r largest
cl%entele5 the farm%ng comm/n%t!.
6 eress m! s%ncere grat%t/de to all of !o/ g%&%ng me a at%ent hear%ng.
6 also take th%s oort/n%t! to etend m! heartfelt thanks to o/r &al/ed
c/stomers5 the 8o&ernment of 6nd%a5 the state 8o&ernment5 the Reser&e
+ank of 6nd%a5 NA+AR- and the NA(SCO+ for g/%d%ng /s and ro&%d%ng
/ngr/dg%ng s/ort %n all o/r endea&or for f/rtherance of the
cooerat%&e cred%t mo&ement %n the state. 6 shall #e fa%l%ng %n m! d/t!5 %f
6 do not eress m! s%ncere arec%at%on for the ded%cated ser&%ce and
comm%tment of the staff of th%s #ank.
68
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 69/102
69
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 70/102
JE;COE TO T)E JOR;- O( (6NANCE
A$ 7E RACE %7AR'$ ,E 21 $ CE*&R 7E$ *E7 ,%PE$
and new eectat%ons5 %t %s %merat%&e that we arec%ate the world
aro/nd /s %s chang%ng ra%dl! throw%ng /on great chal lenge and
en/mera#le oort/n%t!. -r%&en #! the %nformat%on technolog! we are
w%tness%ng henomenal changes %n the world of f %nance. 6n the
emerg%ng scenar%o f%nance rofess%onals w%ll #e oerat%ng %n a totall!
f%nanc%al landscae.
C%RP%RAE FI*A*CE %s chang%ng from domest%c f/nd%ng to m/lt%4
c/rrenc! f/nd%ng FI*A*CIA+ C%*R%+ %s chang%ng from s%mle
acco/nt%ng to %n tegrated control s!stem #ased on E*ERPRI$E
RE$%&RCE P+A**I*- (ERP) I*ER*AI%*A+ FI*A*CE %s
dom%nated #! &%rt/al f/nds at the d%sosal of street L smart 4fore
dealers who mo&e #%l l%ons of da% l! across the glo#al w% th the
etens%&e /se of 6T . I*.E$ME* MA*A-EME* %s sh%ft %ng from
s%mle eB/%t! or de#t rod/cts to comle der%&at%&e rod/cts l %ke
ot%ons5 f/t/re and swas. FI*A*CIA+ $E.ICE$ l %ke #ank%ng and%ns/rance are gett%ng glo#al%Fed %n a seamless d%g%tal world.
These f ro4reach%ng de&eloments %n the world of f %nance ha&e
redef%ned the role of the f%nance manager5 lac%ng a rem%/m on well
tra%ned !o/ng men and women rocess%ng s/er%or rofess%onal sk%ll %n
f%nance anal!s%s on management. The f%nance manager of toda! %s
called /on to f%nance strateg %es that do&eta %l w% th the f %rmIs
comet%t%&e #/s%ness strateg%es.
70
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 71/102
MEA*I*- %F 7%R0I*- CAPIA+
Ca%tal reB/%red for a #/s%ness can #e class%f%ed /nder two ma%n
categor%es:
9% (%ed Ca%tal and
9%% Jork%ng Ca%tal
E&er! #/s%ness needs f/nds for two /roses for %ts esta#l%shment and
to carr! o/t %ts da!4to4da! oerat%ons long4term f/nds are reB/%red to
create rod/ct%on fac%l % t %es thro/gh /rchase of f %ed assets s/ch as
lat and mach%ner! land #/%ld%ng f/rn%t/re etc. 6n&estments %n these
assets reresent that art of f %rmIs ca%tal5 wh%ch %s #locked on a
ermanent or f %ed #as%s and %s called f %eld ca%tal. (/nds are also
needed for short4term /roses for the /rchase of raw mater%als
a!ment of wages and other da!4to4da! eenses5 etc.
6n the words of Sh/#%n = Jork%ng ca%tal %s the amo/nt of f/nds
necessar! to co&er the cost of oerat%ng the enterr %se>
Accord%ng to 8enesten#erg5 = C% rc/lat%ng ca% ta l means c/rrent asssets
of a coman! that are changed %n the ord%nar! co/rse of #/s%ness from
on e form to another as for eamle f rom cash to %n&entor%es5
%n&entor%es to rece%&a#le rece%&a#les %nto cash.>
+eves of 7or8in9 C:it Investment
6n a =erfect> world there wo/ld #e no necess%t! for work%ng ca%tal
assets and l%a#%l%t%es. 6n s/ch a world there wo/ld #e no /ncerta%nt! no
transact%on costs %nformat%on search costs sched/l %ng costs or
rod/ct%on and technolog! constra%nts. The /n%t cost of rod/c%ng goods
wo/ld not &ar! w%th the amo/nt rod/ced. (%rms wo/ld #orrow and lend
at the same %nterest rate. Ca%tal la#o/r and rod/ct markets wo/ld
reflect all a&a%la#le %nformat%on and wo/ld #e erfectl! comet%t%&e. 6n
71
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 72/102
s/ch a world %t can #e shown that there wo/ld #e no ad&antage for f%rms
to %n&est or f%nance %n the short term.
+/t the world %n wh%ch rea l f %rms f/nct%on %s not erfect. 6t % s
character%Fed #! the f %rms cons%dera#le /ncerta%nt! regard%ng the
demand market r%ce B/al%t! and a&a%la#%l % t! of % ts own rod/cts and
those of s/l%ers. There are transact%on costs for /rchas%ng or sell%ng
goods or sec/r%t%es. 6nformat%on %s costl! to o#ta%n and the f%rm %s faced
w%th l%m%ts on the rod/ct%on caac%t! and technolog! that %t can emlo!.
There are f%ed as well &ar%a#le costs assoc%ated w%th rod/c%ng goods
for sale5 and there are sreads #etween the #orrow%ng and lend%ng
rates for %n&estments and f%nanc%ngs of eB/al r%sk. 6nformat%on %s not
eB/all! d%str%#/ted and ma! not #e f/l l! reflected %n the r%ces %n
rod/ct and la#or markets and these markets ma! not #e erfect l!
comet%t%&e.
These real world c%rc/mstances %ntrod/ce ro#lems w%th wh%ch the f%rm
m/st deal. Jh%le the f%rm has ma! strateg%es a&a%la#le to address these
c%rc/mstances strateg%es that /tl %l %se %n&estment or f %nanc%ng w%th
work%ng ca%tal acco/nts often offer a s/#stant%al ad&antage o&er other
techn%B/es. (or eamle ass/me that the f%rm %s faced w%th /ncerta%nl!regard%ng the le&el of % ts f/t/re cash flows and w%l l %nc/r s/#stant%al
cost %f %t has %ns/ff%c%ent cash to meet eenses. Se&eral strateg%es ma!
#e form/lated to address th%s /ncerta%nt! and the costs that % t ma!
engender. Among these strateg%es are some that %n&ol&e work%ng ca%tal
%n&estment or f %nanc%ng s/ch as hold%ng add%t%onal cash #alances
#e!ond eected needs hold%ng a reser&e of short term marketa#le
sec/r% t%es or arrang%ng for the a&a%la#%l %t! of add%t%onal short4term
#orrow%ng caac%t!. One of these strateg%es ma! well #e the least costl!
aroach to the ro#lem.
The s%Fe and nat/re of a f %rms %n&estment %n c/rrent assets %s a
f/nct%on of a n/m#er of d%fferent factors %ncl/d%ng the follow%ng:
1. The t!e of rod/cts man/fact/red.
72
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 73/102
2. The length of the oerat%ng c!cle.
3. The sales le&el 9#eca/se h%gher sales reB/%re more
%n&estment %n %n&entor%es and rece%&a#les.
". 6n&entor! ol%c %es 9 fo r eamle the amo/nt of safe t! s tocksma%nta%ned that %s %n&entor%es needed to meet h%gher than
eected demand or /nant%c%ated dela!s %n o#ta%n%ng new
%n&entor%es
'. Cred%t ol%c%es
*. )ow e ff%c%en tl! the f %rm manages c/rrent assets 9O#&%o/s l!
the more effect%&el! management econom%cs on the amo/nt
of cash marketa#le sec/r%t%es %n&entor%es and rece%&a#les
emlo!ed the smaller the work%ng ca%tal reB/%rements.
Cssifiction or 8inds of 7or8in9 C:it
Jork%ng ca%tal ma! #e class%f%ed %n two wa!s:
() %n t<e /sis of Conce:t
On the #as%s of concet work%ng ca%tal %s class%f %ed as gross
work%ng ca%tal and net work%ng ca%tal as d%sc/ssed earl %er. Th%s
class%f %cat %on %s %mortant f rom the o%nt of & %ew of the f %nanc%al
manager.
(;) %n t<e /sis of ime
On the #as%s of t%me work%ng ca%tal ma! #e class%f%ed as
1 Permnent or Fied 7or8 in9 C:it
Permanent or (%ed work%ng ca%tal %s the m%n%m/m amo/nt wh%ch
%s reB/%red to ens/re effect%&e /t%l%Fat%on of f%ed fac%l%t%es and for
ma%nta%n%ng the c%rc/lat%on of c/rrent assets. These %s alwa!s a
m%n%m/m le&el of c/rrent assets wh%ch %s cont%n/o/sl! reB/%red #!
the enterr%se to carr! o/t %ts normal #/s%ness oerat%ons. (or
eamle5 e&er! f %rm has to ma%nta%n a m%n%m/m le&el of raw
73
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 74/102
mater%als work4%n4rocess5 f%n%shed goods and cash #alance. Th%s
m%n%m/m le&el of c/rrent assets %s called ermanent or f %ed
work%ng ca%tal as th%s art of ca%tal %s ermanentl! #locked %n
c/rrent assets. As the #/s%ness grows5 the reB/%rements of
ermanent work%ng ca%tal also %ncrease d/e to the %ncrease %n
c/rrent assets. The ermanent work%ng ca%tal can f/rther #e
class%f%ed as reg/lar work%ng ca%tal and reser&e work%ng ca%tal
reB/%red to ens/re c%rc/lat%on of c/rrent assets from cash to
%n&entor%es5 from %n&entor%es to rece%&a#les and from rece%&a#les
to cash and so on reser&e work%ng ca%tal %s the ecess amo/nt
o&er the reB/%rement for reg/lar work%ng ca%tal wh%ch ma! #e
ro&%ded for cont%ngenc%es that ma! ar%se /nstated er%ods s/ch
as str%kes r%se %n r%ces5 deress%on5 etc.
2 em:orry or .ri;e 7or8in9 C:i t
Temorar! or &ar%a#le work%ng ca%tal %s the amo/nt of work%ng
ca%tal 5 wh%ch %s reB/%red to meet the seasonal demands and
some sec%al e%genc%es. ar%a#le work%ng ca%tal can #e f/rther
class%f%ed as seasonal work%ng ca%tal and sec%al work%ng
ca%tal. ost of the enterr%ses ha&e to ro&%de add%t%onal work%ngca%tal to meet the seasonal and sec%al needs. The ca%tal
reB/%red to meet the seasonal needs to the enterr%se %s called
seasonal work%ng ca%tal. Sec%al work%ng ca%tal %s that art of
work%ng ca%tal wh%ch %s reB/%red to meet sec%al e%genc%es s/ch
as la/nch%ng of etens%&e market%ng cama%gns for cond/ct%ng
research5 etc.
Temorar! work%ng ca%tal d%ffers from ermanent work%ng ca%tal%n the sense that % t %s reB/%red for sort er%od and cannot #e
ermanentl! emlo!ed ga%nf/ll! %n the #/s%ness. (%g/re g%&en
#elow %ll/strate the d%fference #etween ermanent and temorar!
work%ng ca%tal.
74
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 75/102
Permanent work%ng ca%tal %s sta#le or f%ed o&er t%me wh%le the
temorar! or &ar%a#le work%ng ca%tal f l/ct/ates. 6n (%g. 2
ermanent work%ng ca%tal %s also %ncreas%ng w%th the assage of
t %me d/e to eans%on of #/s%ness #/t e&en the % t does not
fl/ct/ates as &ar%a#le work%ng ca%tal wh%ch some t%me %ncreases
and somet%mes decreases.
Advnt9es of Adeute 7or8in9 C:it
Jork%ng ca%tal %s there l%fe#lood and ner&e center of a #/s%ness. @/st
as c%rc/lat%on of #lood %s essent%al %n the h/man #od! fort ma%nta%n%ng
l%fe5 work%ng ca%tal %s &er! essent%al to ma%nta%n the smooth r/nn%ng ofa #/s%ness. No #/s%ness can r/n s/ccessf/ll! w%tho/t an adeB/ate
amo/nt of work%ng ca%tal . The ma%n ad&antages of ma%nta%n%ng
adeB/ate amo/nt of work%ng ca%tal are as follows:
1 $ovency of t<e ;usiness
AdeB/ate work%ng ca% ta l hels %n ma%nta%n %ng so l&enc! of the
#/s%ness #! ro&%d%ng /n%nterr/ted flow of rod/ct%on.
2 -ood>i
S/ff%c%ent work%ng ca%tal ena#les a #/s%ness concern to make
romt a!ments and hence hels %n creat%ng and ma%nta%n%ng
goodw%ll.
3 Esy +ons
A concern ha&%ng adeB/ate work %ng ca%tal h%gh so l&enc! and
good cred%t stand%ng can arrange loans from #anks and others on
eas! and fa&ora#le terms.
4 Cs< discounts
AdeB/ate work %ng ca% ta l also ena# les a concern to a&a%l cash
d%sco/nts on the /rchases and hence %t red/ces costs.
5 Re9ur $u::y of R> Mteris
75
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 76/102
S/ff%c%ent work%ng ca%tal ens/res reg/lar s/l! of raw mater%al
and cont%n/o/s rod/ct%on.
*. Re9ur :yment of sries >9es nd ot<er dytody
commitments
A coman! wh%ch has amle work%ng ca% ta l can make reg/lar
a!ment of salar%es wages and other da!4to4da! comm%tments
wh%ch ra%ses the morale of % ts emlo!ees5 %ncreases the%r
eff%c%enc! red/ces wastages and costs and enhances rod/ct%on
and rof%ts.
E:oitt ion of fvor;e mr8et condi tions
Onl! concerns w%th adeB/ate work%ng ca%tal can elo%t fa&ora#le
market cond%t %ons s/ch as /rchas%ng %ts reB/%rements %n #/lk
when the r%ces are lower and #! hold%ng %ts %n&entor%es for h%gher
r%ces.
! A;iity to fce crises
AdeB/ate work %ng ca% ta l ena#les a concern to face #/s%ness
cr%ses %n emergenc%es s/ch as deress%on #eca/se d/r%ng s/ch
er%ods generall!5 there /s m/ch ress/re on work%ng ca%tal.
" Juic8 nd re9ur return on investments
E&er! 6n&es tor wants a B/ %ck and reg/lar ret/rn on h%s
%n&estments. S/ff%c%enc! of work%ng ca%tal ena#les a concern to
a! B/%ck and reg/lar d%&%dends to %ts %n&estors as there ma! not
#e m/ch ress/re to lo/gh #ack rof% ts . Th%s ga%ns the
conf%dence of %ts %n&estors and creates a fa&ora#le marke t to ra%se
add%t%onal f/nds %n the f/t/re
1. (or the /rchase of raw mater %als comonents and sares.
2. To a! wages and salar%es.
3. To %nc/r da!4to4da! eenses and o&erhead costs s/ch as f/el
ower and off%ce eenses5 etc
76
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 77/102
". To meet the sell %ng costs as ack%ng ad&ert%s%ng etc.
'. To ro&%de cred% t fac%l %t %es to the c/stomers.
*. To ma%nta %n the %n&entor%es of raw mater%a l work4 %n4rogress
stores and sares and f%n%shed stock.
FAC%R 'EERMI*I*- ,E 7%R0I*- CAPIA+
The work%ng ca%tal reB/%rements of a concern deend /on a large
n/m#er of factors s/ch as nat/re and s%Fe of #/s%ness the character of
the%r oerat %ons5 the length of rod/ct%on c!cles the rate of stock
t/rno&er and the state of econom%c s%t/at%on. 6t %s not oss%#le to rank
them #eca/se all s/ch factors are of d% fferent %mortance and the
%nfl/ence of %nd%&%d/al factors changes for a f%rm o&er t%me.
1 *ture of c<rcter of /usiness
The work%ng ca%tal reB/%rements of f%rm #as%call! deend /on
the nat/re of % ts #/s%ness. P/#l %c / t% l% t! /nder tak%ng l% ke
Electr%c%t!5 water s/l! and Ra%lwa!s need &er! l%m%ted work%ng
ca%tal #eca/se the! offer cash sales onl! and s/l! ser&%ces5
not rod/cts and s/ch as no f/nds are t%ed / %n %n&entor%es and
rece%&a#les.
2 $iDe of /usiness $ce of %:ertions
The work%ng ca%tal reB/%rements of a concern are d%rectl!
%nfl/enced #! the s%Fe of %ts #/s%ness wh%ch ma! #e meas/res %n
terms of scale of oerat%ons. 8reater the s%Fe of a #/s%ness /n%t
generall! larger w%ll #e the reB/%rements of work%ng ca%tal.
3 Production Poicy
6n certa%n %nd/str%es the demand %s s/#$ect to w%de f l/ct/at%ons
d/e to seasonal &ar%at%ons. The reB/%rements of work%ng ca%tal %n
s/ch cases deend /on the rod/ct%on ol%c!. The rod/ct%on
77
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 78/102
co/ld #e ket e%ther stead! #! acc/m/lat%ng %n&entor%es d/r%ng
slack er%ods w%th a &%ew to meet h%gh demand d/r%ng the eak
season or the rod/ct%on co/ld #e c/rta%l d/r%ng the slack season
and %ncreased d/r%ng the ack season.
4 Mnufcturin9 Process +en9t< of :roduction cyce
6n man/fact/r%ng #/s%ness the reB/%rements of work%ng ca%tal
%ncreases %n d%rect roort%on to length of man/fact/r%ng rocess
;onger the rocess er%od of man/fact/re larger %s the amo/nt of
work%ng ca%tal reB/%red.
5 $eson vritions
6n certa%n %nd/str%es raw mater%al %s not a&a%la#le thro/gho/t the
!ear. The! ha&e to #/! raw mater%als %n #/lk d/r%ng the seasons
to ens/re an /n%nterr/ted f low and rocess them d/r%ng the
ent%re !ear.
6 7or8in9 C:it Cyce
6n a man/fact/r%ng concern the work%ng ca%tal c!cle starts w%th
the /rchase of raw mater%al and ends w%th the real%Fat%on of cashfrom the sale of f%n%shed rod/cts. Th%s c!cle %n&ol&es /rchase of
raw mater%al and stores % ts con&ers%on %nto stocks of f %n%shed
goods thro/gh work%ng4%n4rogress w%th rogress%&e %ncrement of
la#o/r and ser&%ce costs.
Rte of stoc8 urnover
There %s a h%gh degree of %n&erse co4relat%onsh% #etween theB/ant/m of work%ng ca%tal and the &eloc%t! or seed w%th wh%ch
the sales are effected. A f%rm ha&%ng a h%gh rate of stock t/rno&er
w%ll need lower amo/nt of work%ng ca%tal as comared to a f%rm
ha&%ng a low rate of t/rno&er.
! Credit Poicy
78
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 79/102
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 80/102
Certa%n other factors s/ch as oerat%ng eff %c%enc! management
a#%l% t! %rreg/lar%t%es of s/l! %mortant ol%c! asset str/ct/re
%mortance of la#o/r #ank%ng fac%l % t%es etc. also %nfl/ence the
reB/%rements of work%ng ca%tal.
A*A+$I$ %F F I*A*CIA+ $AEME*$
Menin9
8enerall! f %nanc%al statement refers to two statements5 the #alance
sheet or statements of f%nanc%al os%t%on5 reflect%ng the assets l%a#%l%t%es
and ca%tal as on a art%c/lars date. And %ncome statement or rof%t and
loss statement show%ng the res/lts ach%e&ed d/r%ng a certa%n er%od.Jh%ch are reared at the end of acco/nt %ng !ear (or #/s%ness
organ%Fat%on +es%des = The anal!s%s of f%nanc%al statement %s an attemt
to determ%ne the s%gn%f%cance and mean%ng of the f%nanc%al statements
data> Accord%ng to !res = (%nanc%al statement anal!s%s %s largel! st/d!
of relat%onsh% among the &ar%o/s f %nanc%al factors %n #/s%ness as
d%sclosed #! a s%ngle set of statements and st/d! of the trend of these
factors as shown %n a ser&%ce of statement.
Accord%ng to emed! and /ller = The anal!s%s and %n terretat%on of
f%nanc%al statements are an attemt to determ%ne the s%gn%f%cance and
mean%ng of f%nanc%al statement data so that the forecast ma! #e made
of the rosects for #efore earn%ngs a#%l % t! to a! %nters and deled
mat/r%t%es and rof%ta#%l%t! and so/nd d%&%dend ol%c!.
Th/s anal!s%s of f%nanc%al statement s means s/ch a treatment of the
%nformat%on conta%ned %n the f%nanc%al statements. 6n la%nl! seak%ng
the techn%B/es of f %nanc%al statements refers to e&al/ate the ast5
c/r&et and
Pro$ected erformance of a #/s%ness f %rm. And the techn%B/es of
anal!s%s can #e al%ed to an! k%nds of f%nanc%al data .6t %s an attemt to
meas/re the enterr %se l %B/%d% t! rof% ta#% l% t! sol&enc! and other
80
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 81/102
%nd%cators to access %ts eff%c%enc! and erformance f%nanc%al statement
anal!s%s wh%ch are g%&en %n the follow%ng.
PR%CE'&RE$ %F F I*A*CIA+ A*A+$I$
1. -eterm%n%ng the /rose of anal!s%s.
2. 6dent%f%cat%on of the meas/rement #ase.
3. ReB/%rement of f %nanc%al statement
". Prearat%on of +alance sheet and PG; Acco/nt
'. Tele&%s%on of data.
*. Al%cat%on of aror%ate techn%B/e
,. (%nal Anal!s%s
. 6nterretat%on and Presentat%on.
%/KECI.E$
The anal!s%s of f %nanc%al statements ser&e n/m#er of d%f ferent
o#$ect%&es5
1. E&al/at%on of ast erformance
2. Ara%sal of resent cond%t %ons
3. Pred%ct%on of f/t/re otent%al
+as%call! h%stor%cal f%nanc%al statements are #etter s/%ted for the f%rst
two /roses. )owe&er the ma$or %t! of statement readers are
%nterested %n the red%ct%on %.e. caac%t! of f%rm to grow and roser
and the a#%l%t! of a f%rm to adot to &erg%ng cond%t%ons. The o#$ect%&es
of anal!s%s of f%nanc%al statement are to ser&e the %nterest of &ar%o/s
art%es5 l%ke management %n&est%ng /#l%c5 8o&ernment5 emlo!ee of
the concern5 ed/cat%on%st5 trade assoc%at%ons5 stock echange andresearch %nst%t/t%ons.
MA*A-EME*
(%nanc%al management %s a &%tal art of management. 6t cons%sts all
f%nanc%al f/nct%ons and all f%nanc%al statement of #/s%ness enterr%se
81
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 82/102
and the f%nanc%al management concerned w%th the so/ndness of ca%tal
str/ct/re. 6 ts effect%&e /t% l%Fat%on to know regardl! &%a#%l %t! as on
ongo%ng concern. anagement of cash5 %n &ent/re and f%ed assets and
adeB/ac! of ca%tal str/ct/re. And management %s %n&ested %n the
f%nanc%al erformance and the f%nanc%al cond%t%on of enterr%se.
I*.E$%R$
6n&estors of the #/s%ness are %nterested to know the earn%ng caac%t! of
the #/s%ness and % ts rosects of f/t/re growth As wel l as he %s %n
tr/sted %n the rof%ta#%l%t! and safet! of h%s %n&estment and wo/ld l%ke to
know whether the #/s%ness %s rof%ta#le. The %n&estor at all t%mes and
the lender of a#normal t%mes wo/ld need to know.
9a Te res/lts of oerat%ons and f%nanc%al os%t %on of the #/s%ness
onl! thro/gh the f%nanc%al statement.
9# The coman! has #een earn%ng well and %s %n a os%t%on to a!
%mress%&e d%&%dends5 as %t was do%ng %n the ast.
9c The f%nanc%al so/ndness ro&%des ass/rance as to the f/t/re
sta#%l%t! of the concern.
9d The ad&antage from th%s anal!s%s %s that % t oens / a w%derrange of %n&estment %ncome of the %n&estors w% tho/t a
corresond%ng loss of safet! at %n&estment.
/A*0ER$ A*' +E*'ER$
+anker and lender wo/ld a lso l% ke to know the safet! o f the% r
%n&estment and rel%a#%l%t! of reforms. And the! are %nterested to know
short term as wall as long4term sol&enc! os%t%ons of the ent%t!.
$&PP+IER$
S/l%ers of enterr%se are %nterested %n rece%&%ng the%r a!ment and to
know regard%ng the sol&enc! of the #/s%ness % .e. the a#% l% t! of the
coman! to mast the de#ts when the! f/ll d/e.
82
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 83/102
EMP+%EE$
Emlo!ees %n tr/sted %n #etter emol/ments #on/s and cont%n/ance of
the #/s%ness. The! wo/ld l %ke to know %ts f %nanc%al erformance and
rof%ta#%l%t! and to ress the%r demands for f/rther %ncrease %n wages
and other #enef%ts. These standards are /sed #! them %n s/ort of
the%r demands.
C&$%MER$
C/stomers ha&e an %nterested %n %nformat%on regard%ng cont%n/ance of
an enterr%se. Accord%ng #! the act%&%t%es of %ts c/stomers are ;ongle!
l%nked w%th %ts a#%l%t! to cont%n/e.
RE-&+A%R A&,%RIIE$
Reg/lator! A/thor%t%es wo/ld l%ke to know the rof%ts of #/s%ness And
the f%nanc%al statements reared are as er sec%f%ed lows and r/les %t
hel them a great deal %n deter m%n%ng the taes a!a#les.
-%.ER*ME*
The 8o&ernment %nterest %n the anal!s%s of f %nanc%al statements of
#/s%ness. The! ha&e to know f %nanc%al %nformat%on to reg/late the
act%&%t %es of the enterr%se5 determ%ne taat%on ol%c! com%lat%on of
nat%onal %ncome stat%st%cs.
$%C0 E@C,A*-E
The stock echange %nterested %n f %nanc%al statements #eca/se the!
ro&%de /sef/l f%nanc%al %nformat%on. +es%des the stock echange %s an
%nst%t/t%on wh%ch fac%l%tates deal%ngs of sale and /rchase of shares andde#ent/res of coman%es. 6t g%&es a lso %n format %on regard%ng
coman%es to the%r mem#ers.
P&/+IC
83
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 84/102
The /#l%c %s %nterested to know the ra!ers of enterr%se5 wh%ch the!
ma! /nder stand from f%nanc%al statements. +eca/se the act%&%t%es of an
enterr%se largel! %nfl/ence the local econom!.
PARAMEER$ %F A*A+$I$There %s a n/m#er of arameters are /sed for the /rose of anal!s%s5
the! are?..
+reak e&en Anal!s%s
Rat%o Anal!s%s
Trend Anal!s%s
Common s%Fe Statements Anal!s%s
Cash (low Anal!s%s
RE*' A*A+$I$
Trend Anal!s%s %s an %mortant and /sef/l techn%B/e of anal!s%s and
%nterretat%on of f%nanc%al statements. nder the techn%B/e the rat%o of
d %fferent % tems for &ar %o/s er %ods are calc/ la ted and then a
comar%son %s made. Trend anal!s%s lanlee done %n three follow%ng
wa!s.
1. Trend rat%os.
2. Trend ercentages3. 8rah%c and d %agrammat%c reresentat%on
&tiity of end Anysis
91 6 t %s a s%mle techn%B/e and eas! to /nderstand. So % t does not
%n&ol&e ted%o/s calc/lat%ons and reB/%res tra%ned eer ts.
92 +r%efl! % t h%s methods %nd%cates the f/t/re trends.
93 6 t red/ces the charges of errors and %t ro&%des the oort/n%t!
to comare the ercentages w%th also sol/te f%g/res.
RE*' RAI%
+efore Rat%o Anal!s%s5 f%rstl! we sho/ld know read%l! rat%o. 6n general
mean%ng. Rat%o %s an /s ress%on of relat%onsh% #etween one f%g/re and
84
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 85/102
another f %g/re wh%ch are m/t/all! %nterdeendent. 6n f %nanc%al
statements rat %o /sed for e&al/at %ng the f %nanc%al os%t %on and
erformance of the f%rm. 6n la%nl! seak%ng Rat%o Anal!s%s %s a owerf/l
and %mortant tool of f%nanc%al anal!s%s. The relat%onsh% #etween two
acco/nt%ng f %g/res /s ressed mathemat%call! %s known as f %nanc%al
rat%o. Rat%o s/mmar%es the large B/ant%t %es5 of f %nanc%al data and to
make B/al%tat%&e5 $/dgment regard%ng the f%rmIs f%nanc%al erformance
for eamle cons%der correct rat%o. 6t %s calc/lated #! d%&%d%ng c/rrent
assets5 #! c/rrent l%a#%l%t%es. The rat%o %nd%cates a relat%onsh% #etween
c/rrent assed and c/rren t l%a#%l%t%es.
And acco/nt %ng rat%o shows the %nter re lat%onsh% wh%ch E%s ts among
&ar%o/s acco/nt%ng data. 6t can #e ress/red %n two forms. The f%rst %s
known as s%mle form rat%o or /re rat%o. 6t %s eressed as B/ot%ent .
The second from %s to con&ert a s%mle or /re rat%o %nto a ercentage.
There are man! a/thors descr%#ed &ar%o/s def%n%t%ons on rat%o anal!s%s5
wh%ch are g%&en follow%ng.
1. Accord%ng to f%at%on wel l and +ed ford Rat %o %s an eress%on of
B/ant%tat%&e relat%onsh% #etween f%g/res drawn from f%nanc%al
s ta tements. And =Rat%o %s an eress %on of B/ant %ta t%&erelat%onsh% #etween two n/m#er.
2. Accord%ng to )/nt J%l l%ant5 -onaldosa = Rat %o are s%ml! a means
of h%gh l %ght%ng %n ar%thmet%cal terms of relat %onsh% #etween
f%g/res drawn from f%nanc%al statements.
3. Accord%ng to enned! and c %l l%on = The relat %onsh% of one
%tem to another eressed %n s%mle mathemat%cal form %s known
as a rat%on.
+es%des5 Rat%o anal!s%s %s the rocess of determ%n%ng and %nter rat%ng
n/mer%cal relat%on sho #etween f%g/res of f%nanc%al statements.
85
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 86/102
Finnci $ttements
(%nanc%al statements5 also cal led f %nanc%al reorts5 are acco/nt
#alances arra!ed %n effect%&e and mean%ngf/l order so that the facts and
concets the! ortra! ma! #e read%l! %nterreted and /sed as #ased for
dec%s%ons #! all eole who are %nterested %n the affa%rs of #/s%ness. +!
the hel of all the reorts the management ma! re&%ew the f %rmIs
rogress and dec%ded /on the co/rse of act%on to #e taken %n f/t/re.
6ts /rose %s to con&e! an /nderstand%ng of some f%nanc%al asects of
a #/s%ness f%rm. 6t ma! show a os%t%on at a moment %n t%me5 as %n case
of a #alance sheet or ma! re&eal a ser%es of act%&%t%es or a g%&en er%od
of t%me as %n case of %ncome statement. The term =(%nanc%al Statement>
as /sed %n modern #/s%ness5 refers to statement the #alance sheet or
statement of f %nanc%al os%t%on reflect%ng the assets5 l %a#%l% t %es and
ca%tal as on a art%c/lar date and %ncome statement or rof%t 7 loss.
Statement show%ng the res/lts ach%e&ed d/r%ng a certa%n er%od5 wh%ch
are reared at the end of acco/nt%ng !ear for a #/s%ness enterr%se
(%nanc%al statements are the o/tcome of s/mmar%F%ng rocess of
acco/nt%ng.
*ture of finnci sttements
The f%nanc%al statements are reared on the #as%s of recorded facts.
The recorded facts are those wh%ch ca# #e eressed %n monetar!
terms. The statements are reared for a art%c/lar er%od5 generall!
one !ear. The transact%ons are recorded %n a chronolog%cal order as and
when the e&ent haen. The acco/nt %ng records and f%nanc%a l
statements reared from these records are #ased on h%stor%cal costs.The f%nanc%al statements #! nat/re are s/mmar%es of the %tems recorded
%n the #/s%ness and these statements are reared er %od%call!.
86
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 87/102
Person Lud9ments
E&en tho/gh certa%n standard acco/nt%ng con&ers%ons are followed %n
rear%ng f %nanc%al stat #/t st% l l ersonal $/dgment of the acco/ntant
la!s an %mortant art.
%;Lective of finnci sttements
(%nanc%al statements are the so/rces of %nformat%on on the #as%s of
wh%ch concl/s%ons are drawn a#o/t the rof% ta#%l %t! and f %nanc%al
os%t%on of a concern. The! are the ma$or means emlo!ed #! f%rms to
resent the%r f %nanc%al s%t/at%on of owners5 cred%t %ns and the general
/#l%c. The r%mar! o#$ect%&e of f %nanc%al statements %s to ass%st %n
dec%s%on mak%ng.
9% To ro&%de re l%a# le f%nanc%al %n fo rmat%on a#o/t econom%c
reso/rces and o#l%gat%ons of a #/s%ness f%rm.
9 %% To ro&%de other needed %nformat%on a#o/t change %n s/ch
econom%c reso/rces and o#l%gat%ons.
9% %% To ro&%de rel%a#le %nformat%on a#o/t changes %n net reso/rces
ar%s%ng o/t of #/s%ness act%&%t%es.
9%& To ro&%de f %nanc%al %nformat%on that ass%sts %n est %mat%ng theearn%ng otent%als of #/s%ness.
9& To d%sclose5 to the etent oss%#le5 other %nformat%on related to
the f %nanc%al statements that %s rele&ant to the needs of the
/sers of these statements.
Finnci sttement nysis
Anal!s%s and %n terretat%on of f%nanc%al statements are an attemt todeterm%ne the s%gn%f%cance and mean%ng of the f%nanc%al statement data
so that a forecast ma! #e made of the rosects for f/t/re earn%ngs5
a#%l%t! to a! %nterest5 de#t mat/r%t%es L #oth c/rrent as well as longterm
and ro#a#%l%t! of a so/nd d%&%dend ol%c!.
87
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 88/102
y:es of finnci Anysis
A d%st%nc t%on ma! #e drawn #etween &ar%o/s t!es of f%nanc%al anal!s%s
e%ther on the #as%s of mater%al /sed for the same.a Accord%ng to ater%al /sed 4
1) Etern Anysis
Those who do not ha&e access to the deta%led records of the coman!
make %t. Th%s gro/5 wh%ch has to deend almost ent%rel! on /#l%shed
f%anc%al s ta tements5 %ncl/des %n&estors5 cred% t agenc%es and
go&ernmental agenc%es reg/lat%ng a #/s%ness %n a nom%nal wa!. The
os%t%on of the eternal anal!st has #een %mro&ed %n recent t %mesow%ng to the go&ernmental reg/lat%ons reB/%r%ng #/s%ness /nder tak%ngs
to make a&a%la#le deta%led %nformat%on to the /#l%c thro/gh a/d%ted
acco/nts.
2) Intern Anysis
The %nternal anal!s%s %s accoml%shed #! those who ha&e access
to the #ooks of acco/nts and all other %nformat%on related to #/s%ness.
Jh%le cond/ct%ng th%s anal!s%s the anal!st %s a art of the enterr%se he%s anal!F%ng. Anal!s%s for manager%al /roses %s the %nternal t!e of
anal!s%s and %s cond/cted #! eec/t%&es and emlo!ee of the enterr%se
as well as go&ernmental and co/rt agenc%es wh%ch ma! ha&e ma$or
reg/lator! and other $/r%sd%ct%on o&er the #/s%ness.
;) Accordin9 to moctus o:erndit of nysis
1 )or%Fontal Anal!s%s :4
Jhen f%nanc%al statements for a n/m#er of !ears are re&%ewedand anal!sed5 the anal!s%s %s called =hor%Fontal anal!s%s>. As %t %s
#ased on data from !ear to !ear5 rather than on one date or
er%od of t %me as a whole5 th%s %s also known as =-!nam%c
anal!s%s>.
88
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 89/102
2 ert%cal Anal!s%s :4
6t %s freB/entl! /sed for referr%ng to rat%os de&eloed for one date
or for one acco/nt%ng er%od. ert%cal anal!s%s %s also called =stat%c
anal!s%s>. Th%s %s not &er! cond/ct%&e to a roer anal!s%s of the f%rmIs
f%nanc%al os%t%on and %ts %nterretat%on as %t does not ena#le to st/d!
date %n ersect%&e. Th%s can onl! #e ro&%ded #! a st/d! cond/cted
o&er a n/m#er of !/ears so that comar%sons can #e effected.
Therefore5 &ert%cal anal!s%s %s not &er! /se f/l.
*eed of F$A
The need of f %nanc%al statement anal!s%s ar%ses #eca/se of d%fferent
o#$ect%&e of d%fferent /sers of f %nanc%al statement and conseB/entl!.
The! seek answers to &ar%o/s B/est%ons erhnent to them. These
o#$ect%&es can #e d%&%ded %n to two arts.
9% Common o#$ect%&e
ar%o/s common o#$ect%&es of f %nanc%al statement anal!s%s ca #e
categor%ses as /nder
• To get tr/e and fa%r &%ew of f%nanc%al health of the reort%ng ent%t!.
•To get acc/rate %ct/re of strength and sta#%l %t! of reort %ngent%t!.
• To ens/re the f%rms caac%t! to a! %ts short term a!ment.
• To ha&e an %dea of oerat %onal eff %c%enc! and rof %ta#%l %t! of
reort%ng ent%t!.
• To ha&e an %dea of relat %&e erformance of reort%ng ent %t!
kee%ng %n &%ew the %nd/str! as a whole of wh%ch reort%ng ent%t!
%s a art.
• To ha&e a look /on f/t/re rosects of reor t%ng ent%t!.
9 %% 6nd %&%d/al O#$ect%&e :4
89
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 90/102
a (or owners and 6n&estors
• To know f%nanc%al cond%t%on of the organ%sat%on %n #etter wa!.
• To ha&e a look /on er formance of &ar %o/s segments of
reort%ng entst!.
• To f %nd o/t rank of reort %ng ent % t! %n the %nd/str! to wh%ch % t
#elongs.
9# (or +ankers and one! lenders 4
• To ha&e look /on a!%ng caac%t! of reort%ng ent%t!.
• To ha&e look /on sol&enc! os%t%on.
• To ha&e a look /on comonents of ca%tal s tr/ct/re and
#orrow%ng caac%t! of the f%rm.
9c (or anagement
• To take hel of f%nanc%al statement anal!s%s %n tak%ng %mortant
dec%s%ons.
• To asses rof%ta#%l%t! os%t%on.
PR%CE'&RE %F F$A
There are three stes %n&ol&ed %n the anal!s%s of f %nanc%al
statements. These are 9 % select%on. 9 %% Class%f %cat %on and 9 %% %
6nterretat%on. The f%rst ste %n&ol&es select%on of %nformat%on or data
rele&ant to the /rose of anal!s%s of f%nanc%al statements. The 2 nd ste
%n&ol&ed %s the method%cal class%f%cat%on of the data and the th%rd ste
%ncl/des draw%ngs of %nterences and concl/s%ons.
91 The anal!st sho/ld acB/a%nt h%mself w% th the r%nc%les and
ost/lates of acco/nt %ng. )e sho/ld know the lans and
90
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 91/102
ol%c%es of the management so that he ma! #e a#le to f%nd o/t
whether these lans. Are roerl! eec/ted or not.
92 The etent of anal!s%s sho/ld #e determ%nd so that the shere
of work ma! #e dec%ded. 6f the a%m %s to f %nd o/t the earn%ng
caac%t! of the enterr%se then anal!s%s of %ncome statement
w%ll #e /ndertaken. On the other hand %f f%nanc%al os%t%on %s to
#e st/d%es then +GS anal!s%s w%ll #e necessar!.
93 The f%nanc%al data g%&en %n the statement sho/ld #e
reorgan%Fed and re4arranged. 6t w%ll %n&ol&e the gro/%ng of
s%m%lar data /nder same heads5 #reak%ng down of %nd%&%d/al
comonents of statement accord%ng to nat/re. The data %s
red/ced to a standard form.
9" A relat%onsh% %s esta#l%shed among f %nanc%al statements w%th
hel of tools and techn%B/es of anal!s%s s/ch as rat%os5 trends5
common s%Fe5 f/nds flow etc.
9' The %nformat%on %s %nterreted %n a s%mle and /nderstandle
wa!. The s%gn%f%cance and /t%l%t! of f%nanc%al data %s ela%ned
for hel%ng dec%s%on tak%ng.
9* The concl/s%ons drawn from %nterretat%on are resented to the
management %n the form of reorts.
Procedure for 8no>in9 ><et<er A trnsction Resuts in t<e fo> of
funds or not
1. Anal!se the transact%on and f%nd o/t the two acco/nts
%n&ol&ed.
2. ake $o/rnal ent r! o f the t ransact%on.
3. -eterm%ne whether the acco/nts %n&o l&ed %n the transact%on
are c/rrent or non4c/rrent.
91
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 92/102
". 6f #oth the acco/nts %n&o l&ed are c/rrent %.e . e %ther c/rrent
asset or c/rrent l %a#% l % t %es5 % t does not res/lt %n the f low of
f/nds.
'. 6f #oth the acco/nt %n&ol&ed are non4c/rrent %.e. e%ther
ermanent assets or ermanent l%a#%l%t%es %t st%ll does not res/lt
%n the flow of f/nds.
*. 6 f the acco/nts %n&ol&ed are s/ch that one %s a c/rrent al l wh%le
the other %s a non4c/rrent AGC. % .e . c/rrent asset and
ermanent l%a#%l%t! or c/rrent asset and f%ed asset or c/rrent
l %a#%l% t! and f%ed asset or c/rrent l %a#%l% t! and f%ed asset or
c/rrent l %a#%l % t! and ermanent l %a#%l % t! then %t res/lts %n the
flow of f/nds.
Menin9 of FF$
(/nds flow statements %s a method #! wh%ch we st/d! changes %n the
f%nanc%al os%t%on of a concern #etween #eg%nn%ng and end%ng f%nanc%al
statements dates. 6tIs a statement show%ng so/rces and /ses of f/nds
for a er%od of t%me.
Accordin9 to Fou8e ?
=A statement of so/rces and al%cat%on of f/nds %s to a techn%cal de&%ce
des%gned to anal!se the changes %n the f%nanc%al cond%t%on of a #/s%ness
enterr%se #etween two dates.>
Accordin9 to Ant<ony
=The f/nds f low statement descr%#es the so/rce from wh%ch
add%t%onal f/nds were der%&ed and the /se to wh%ch these so/rces were
/t.>
(/nds flow statement %s called #! &ar%o/s names s/ch as so/rces and
al%cat%on of f/nds5 statement of changes %n f%nanc%al os%t%n5 so/rces
and /ses of f/nds5 s/mmar! of f%nanc%al oerat%ons5 o&ement of f/nds
92
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 93/102
statement5 (/nds Rece%&ed 7 -%s#/rsed statement5 f/nds generated
and eended statement.
&sesB $i9nificnce nd Im:ortnce of FF$
A f/nds flow statement %s an essent%al fool for the f%nanc%al anal!s%s and
%s of r%mar! %mortance to the f%nanc%al mgmt. Now4a4da!s5 %t %s #e%ng
w%del! /sed #! the f %nanc%al anal!s%s5 cred%t grant%ng %nst%t/t%ons and
f%nanc%al managers. The #as%c /rose of a f/nds flow statement %s to
re&eal the changes %n the work%ng ca%tal on the two #alance sheet
dates. 6 t also descr%#es the so/rces from wh%ch add%t%onal work%ng
ca%tal has #een f%nanced and the /ses to wh%ch work%ng ca%tal has
#een al%ed.
The s%gn%f %cance or %mortance of f/nds f low statement can #e well
followed from %ts &ar%o/s /ses g%&en #elow.
It <e:s in t<e nysis of finnci o:ertion
The f%nanc%al statements re&eal the net effect of &ar%o/s transact%ons onthe oerat%onal and f%nanc%al os%t%on of a concern. The #alance sheet
g%&e a stat%c &%ew of the reso/rces of a #/s%ness and the /ses to wh%ch
these reso/rces ha&e #een /t at a certa%n o%nt of t %me. The ((S
ela%ns ca/ses for s/ch changes and also the effect of these changes
on the l%B/%d%t! os%t%on of the coman!.
It t<ro>s i9<t on mny :er:ein9 uestins of 9ener interest ?
Jh%ch otherw%se ma! #e d%ff%c/lt to #e answered5 s/ch as:a Jh! were the net c/rrent assets lesser %n s%te of h%gher rof %t
and &%ce4&ersaU
# Jh! more d%&%dends co/ld not #e declared %n s% te of a&a% la#le
rof%tsU
93
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 94/102
c )ow was 6 t oss%#le to d %str %#/ te more d%&%dends than the
resent earn%ngs U
d Jhat haened to the net rof% t U where d%d the! go.
e Jhat haened to the rosceeds of sale o f f%ed assets o r%ss/e of shares5 de#ent/res etcU
f Jhat are the so/rces of the rea!ment o f de#t U
g )ow was the %ncrease %n work%ng ca% tal f%nanced and how w% ll
%t #e f%nanced %n f/t/reU
3) I t <e:s in t<e formtion of reistic dividend :oicy
Some t%mes a f%rm has s/ff%c%ent rof%ts a&a%la#le for d%str%#/t%on
as d%&%dend #/t !et %t ma! not #e ad&%sa#le to d%str%#/te d%&%dend for
lock of l %B/%d or cash so/rces. 6n s/ch cases a f/nds flow statement
hels %n the format%on of a real%st%c d%&%dend ol%c!.
4) I t <e:s in t<e :ro:er oction of resources
The reso/rces of a concern are alwa!s l%m%ted 7 %t wants to make the
#est /se of these reso/rces. A ro $ected f/nds f low statement
constr/cted for the f/t/re hels %n mak%ng mangager%al dec%s%ons. The
f%rm can lan the delo!ment of %ts reso/rces and allocate them among
&ar%o/s al%cat%ons.
5) It cts s future 9uide
A ro$ected f/nds flow statement also acts as a g/ %de for f/ t/re %s
the management. The management can come to know the &ar%o/s
ro#lems %t %s go%ng to face %n near f/t/re for want of f/nds. The f%rmIs
f/t/re needs of f/nds can #e ro$ected well %n ad&ance and also thet%m%ng of these needs. The f%rm can arrange to f %nance these needs
more effect%&el! and a&o%d f/t/re ro#lems.
+imittion of funds fo> sttement
94
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 95/102
The f/nds flow statement has a n/m#er of /ses5 howe&er5 %t has certa%n
l%m%tat%ons also5 wh%ch are l%sted #elow :
1 6t sho/ld #e remem#ered that a f/nds f low statement %s not a
s/#st %t/te of an %ncome statement or a #alance sheet . 6 t
ro&%des onl! some add%t%onal %nformat%on as regards changes
%n work%ng ca%tal.
2 6t cannot re&eal con t%n/o/s changes.
3 6t % s not an or%g %nal s ta tement #/t s %ml! are arrangement o f
data g%&en %n the f%nanc%al statement.
" 6t %s essent%all! h %sto r%c %n na t/ re and ro$ected f/nds flow
statements cannot #e reared w%th m/ch acc/rac!.
' Changes %n cash are more %mortant and rele&ant for f %nanc%al
management than the work%ng ca%tal.
CA$, F+%7 $AEME*
I*R%'&CI%*
Cash la!s a &er! %mortant role %n the entr%es econom%c l %fe of a
#/s%ness. A f%rm needs cash to make a!ment to %ts s/l%es5 to %nc/r
da! to da! eenses and to a! salar%es5 wages5 %nterest and d%&%dend
etc. %nfact what #lood %s to a h/man #od!5 cash %s to a #/s%ness
enterr%se. 6t %s &er! essent%al for a #/s%ness to ma%nta%n an adeB/ate
#alance of cash. +/t man! a t%mes5 a concern oerates rof%ta#l! and
!et %t #ecomes &er! d%ff %c/lt to a! taes and d%&%dend. Th%s ma! #e
#eca/se L
9 % altho/gh ha&e rof% t ha&e #een earned !et cash ma! not ha&e#een rece%&ed or
9%% e&en % f cash has #een rece%&es5 %t ma! ha&e dra %ned o/ t
ca/sed5 for some other /rosed.
Th%s mo&ement of cash %s o f &%tal %mortant to the management.
95
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 96/102
Menin9
Cash flow statement %s a statement wh%ch descr%#es the %nflows co/rses
and o/t f lows 9/ses of cash and cash eB/%&alents %n an enterr%se
d/r%ng a sec%f %ed er%od of t %me. s/ch a statement en/merat%on net
effects of the &ar%o/s #/s%ness trans%t%ons %n cash and %ts eB/%&alents
and takes %nto acco/nt rece%ts and d%s#/rsement of cash. A cash flow
statement s/mmar%Fes the ca/ses of changes %n cash os%t %on of a
#/s%ness ca/ses of changes %n cash os%t%on of a #/s%ness enterr%se
#etween dates of two #alances sheets.
Accord%ng to AS43 9Re&%sed an en terr%se sho/ ld reare a cash flow
statement and sho/ld resent %f for each er%od for wh%ch f %nanc%al
statements reared. The term and cash eB/%&alents and cash flows are
/sed %n th%s statement w%th the follow%ngs :
9 % cash comr%ses cash on hand and demand deos% ts
9%% cash eB/%&alents are short term h%ghl! l%B/%d %n&estments that
are read! con&ert%#le %nto known amo/nts of cash and wh%ch
are s/#$ects to an %ns%gn%f%cant r%sk of change %n &al/e. Cash
eB/%&alents are held for the /rose of meet%ng short4term
cash comm%tments rather than for %n&estment or o ther
/roses.
9%%% Cash flows are %nflows and o/t flows of cash and cash
eB/%&alents. (low of cash %s ser%al to ha&e taken lace when
an! transact%on make changes %n the amo/nt of cash
eB/%&alents a&a%la#le #efore haen%ng of the transact%ng.
Met<od of Cs< Fo>
Cash management needs strateg%es to deal w%th &ar%o/s facets of cash.
(low%ng are some of %ts facts.
) Cs< Pnnin9
Cash lann%ng %s a techn%B/e to lan and control the /se of cash. A
ro$ected cash flow statement ma! #e reared5 #ased on the
96
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 97/102
resent #/s%ness oerat%ons and ant%c%ated f/t/re act%&%t%es. The
cash %nflows from &ar%o/s so/rces ma! #e ant%c%ated and cash a
o/tflow w%ll determ%ne the oss%#le /ses of cash.
;) Cs< Forecst nd /ud9etin9
The cash #/dget %s the most %mortant de&%ce for the control of
rece%ts and a!ments of cash. 6f cash #/dget %s an est%mate of
cash rece%ts and d%s#/rsements d/r%ng a f/t/re5 short or long
er%od of t%me.
The short4term forecasts can #e made w%th the hel of cash flow
ro$ect%ons. The f%nance manager w%ll make est%mates of l%kel!
rece%ts %n the near f/t/re and the eected d%s#/rsements %n the
er%od. The long4term cash forecasts are also essent%al for roer
cash lann%ng. These est%mates ma! #e for three5 fo/r5 f%&e or more
!ears. ;ong4term forecasts %nd%cate coman!Is f/t/re f%nanc%al
needs for work%ng ca%tal5 ca%tal ro$ect are :
( i) Recei:ts nd 'is;ursements Met<od
6n th%s method the rece%ts and a!ment of cash are est%mated. The
cash rece%ts ma! #e from cash sales5 collect%ons from de#tors5
sale of f%ed assets5 rece%ts of d%&%dend or other %ncome of all the
%tems5 %t %s d%ff%c/lt forecast sales.
( ii) AdLusted net income Met<od
Th%s method ma! also know as so/rces and /sed aroach. 6t
generall! has three sect%ons. So/rces of cash5 /ses of cash and
ad$/sted cash #alance. The ad$/sted net %ncome method hels %n
ro$ect%ng the coman!Is need for cash at some f/t/re date and to
see whether the coman! w%ll #e a#le to generate s/ff%c%ent cash. 6f
not then %t w%ll ha&e to dec%de a#o/t #orrow%ng or %ss/%ng shares etc.
ME,%' %F $+%7I*- CA$, %&F+%7$
97
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 98/102
A coman! can kee cash #! effect%&el! controll %ng d%s#/rsements. The
o#$ect%&e of controll%ng cash o/tflows %s to slow down the a!ments as far
as oss%#le follow%ng methods can #e /sed to dela! d%s#/rsements.
1 Pyin9 on st dt
The d%s#/rsements can #e dela!ed on mak%ng a!ments on the last
d/e date onl!. 6f the cred%t %s for 1 da!s then a!ment sho/ld #e
made on 1 th da! onl!. 6t can hel %n /s%ng the mone! for short
er%ods 7 the f%rm can make /se of cash d%sco/nt also.
2 Pyments t<rou9< 'rfts
A coman! can dela! #! %ss/%ng drafts to the s/l%ers %nstead of
g%&%ng cheB/es . Jhere a cheB/e %s %ss/ed then the coman! w%ll
ha&e kee a #alance on %ts acco/nt so that the cheB/e %s a%d
whene&er %t comes.
3 AdLustin9 Pyro Funds
Some econom! can #e eerc%sed on a!roll f/nds also. Red/c%ng
the freB/enc! of a!ments can do %t. 6f the a!ments are made
weekl! then th%s er%od can #e etended to a month5 secondl!5
f%nance manager can lan the %ss/%ng of salar! cheB/es and the%r
d%s#/rsement.
4 CentriDtion of Pyments
The a!ments sho/ld #e central%Fed and a!ment sho/ld #e made
thro/gh drafts or cheB/es. Jhen cheB/es are %ss/ed from the ma%n
off%ce then %t w%ll take t%me for the cheB/es to #e cleared thro/gh
ost.
5 Inter/n8 rnsfer
An eff%c%ent of cash %s also oss%#le #! %nter4#ank transfers. 6f the
coman! has acco/nts w%th more than one #ank then amo/nts can
#e transferred to the #ank where d%s#/rsements are to #e made.
6 M8in9 use of Fot
98
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 99/102
(loat %s d%fference #etween the #alance shown %n coman!Is
cash#ook 9+ank Col/mn and #alance ass#ook of the #ank.
Jhene&er a cheB/e %s %ss/ed the #alance at #ank %n cash #ook %s
red/ced.
'eterminin9 %:timum Cs< /nce
A f%rm has to ma%nta%n a m%n%m/m amo/nt to cash for sett%ng the d/es %n
t%me. Th%s %s needed to /rchase raw mater%als a! cred%tors da!4to4da!
eenses5 d%&%dend etc. The test of l%B/%d%t! of the f%rm %s that %t %s a#le to
meet &ar%o/s o#l%gat%ons %n t%me.
There are #as%call! two aroaches to determ%ne an ot%mal cash #alance5
namel!:
9% %n%m/m Cost odels
9%% Prear%ng cash +/dget.
99
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 100/102
C%*C+&$I%*
The a#o&e st/d! are done #! me thro/gh OSC+ #eca/se all needed mater%al
and data are g%&en #! the ACST6 accord%ngl! 6 ha&e done m! ro$ect.
(%nall! 6 w%ll concl/de that from the anal!s%s %t %s fo/nd that the f%nanc%al os%t%on
of the +ank %s B/%te good. The +ank has got a good f%nanc%al lann%ng sol&enc!
os%t%on of the #ank %s sta#le and sat%sfactor! and the l%B/%d%t! os%t%on %s also
good. The #ank has the a#%l%t! to a! %ts c/rrent o#l%gat%on %n t%me as and when
d/e.
+! the anal!s%s %t concl/de that the sol&enc! l%B/%d%t! and rof%ta#%l%t! os%t%on of
the #ank %s good. The #ank erformance %s %mro&%ng da! #! da!.
100
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 101/102
$&--E$I%*
The follow%ng %nterretat%ons are #ased on the anal!s%s of the trend anal!s%s 7
aggregate change method :
1. +! anal!s%s the work%ng ca%tal of the #ank %ncreased %n each !ear. 6t
means the #ank has %ncreased %ts c/rrent f%nanc%al os%t%on5 wh%ch %s
the l%fe#lood of the OSC+.
2. The l%B/%d assets of the #ank ha&e %ncreased %n regards to re&%o/s
!ear %.e. 2421 wh%ch shows the strangeness of the l%B/%d%t!
os%t%on of the OSC+.
3. -eos%ts5 +orrow%ngs5 Ad&ances and ;oans are %ncreased %n each ear
%n comared to re&%o/s !ear5 wh%ch shows the long4term f%nanc%al
os%t%on of the OSC+.
". There %s a cont%n/es %ncrease %n rof%t5 reser&e for last !ears. Jh%ch
shows the rof%ta#%l%t! of the OSC+.
'. +ank has rece%&ed more %nterest than %t has a%d. (or the last fo/r !ear
the #ank has %mro&ed %ts os%t%on %n gett%ng %nterest than a!%ng the
%nterest to deos%tors. Jh%ch shows %mro&ement %n rof%ta#%l%t! of the
#ank.
*. The oerat%ng eenses of the #ank ha&e %ncreased %n the last fo/r
!ears5 as the #ank eensed %ts #/s%ness for th%s reason %t has
eended more on oerat%ng eenses.
,. The Net rof%t of the #ank has %ncreased %n the last fo/r !ears. S% %t
shows good f%nanc%al os%t%on of the OSC+. +/t the growth rate of
rof%t %s decreas%ng %n re&%o/s !ear.
101
7/27/2019 Project on OSCB1
http://slidepdf.com/reader/full/project-on-oscb1 102/102
/I/+I%-RAP,
1. anagement Acco/nt%ng :
R. . Sharma 7 Sash% 8/ta
2. Pr%nc%les of anagement Acco/nt%ng
an ohan S. N 8o&al
3. anagement Acco/nt%ng 7 (%nanc%al Control
-r. S. N. aheshwar%
". Ann/al reorts of OSC+
'. Jae#s%t of OSC+