finincial analysis of textile co-operative bank
TRANSCRIPT
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Introduction of Co-operative Banks
History
The Co-operative banks have a history of almost 100 years. The co-operative movement originated in the west but the importance that such banks have assumed in India is rarely paralleled anywhere else in the world. Their role in rural financing continues to important even today and their business in the urban areas also has increased phenomenally in recent years mainly due to the sharp increase in the number of primary Co-operative banks.
While the co-operative banks in the rural areas mainly finance agricultural based activities including farming, cattle milk, hatchery, personal finance etc, along with some small scale industries and self employment driven activities, the co-operative banks in urban areas mainly finance various categories of people for self-employment , industries, small scale units, home finance, consumer finance, personal finance etc. Some of the co-operative banks are quite forward looking and have developed sufficient core competencies to challenge state and private sector banks.
1892. Sir Fredrick Nicholson recommends the establishment of rural Co-operative credit societies on German pattern.
1902. The finance commission recommended the introduction of co-operative s.
1919. Under the Govt of India act, the subject of Co-operation transferred to provinces.
1939. Mehta Bhansali committee concept of urban Co-operative banks.
1984. Multi State Co-operative societies act.
1914. Maclagen committee recommended a three –tier system on which present system of co-operative structure is based.
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Types of Co-operative Banks
There are two main categories of co-operative Banks:
a) Short term lending oriented co-operative banks within this category there are sub categories of banks vise-state co-operative banks, district co-operative banks and primary agricultural societies.
b) Long term lending oriented Co-operative Banks within the second category there are land development banks at three state levels, district levels and village.
The co-operative banking structure in India is divided into following main categories. They are as follows.
1. Primary Co-operative Credit Society
The Primary co-operative credit society is an association of borrowers and non-borrowers residing in a particular locality. The funds of the society are derived from the share capital o f members as well as the society is fixed. The loans are given to members for the purchase of cattle, fodder, fertilizers, pesticides, implements, etc.
2. Central Co-operative Banks
These are the federations of primary credit societies in a district and are of two types those having a membership of societies as well as individuals. The funds of the banks consist of share capital, deposits, loans and overdrafts from state co-operative banks and joint stocks. These banks finance member societies within the limits of the borrowing capacity of societies. They also conduct all the business of a joint bank.
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3. State Co-operative Banks
The State Co-operative bank is a federation of central Co-operative bank and act as a watchdog of the co-operative banking structure in the state. Its funds are obtained from share capital, deposits, loans and overdrafts from the Reserve Bank of India. The State Co-operative banks lend money to central co-operative s and not directly to farmers.
4. Land Development Banks
The Land development banks are organized in 3 tiers namely: State, Central and Primary level and they meet the long-term credit requirements of the farmers for development purposes the state land development bank overseas the primary land development banks overseas the primary land development banks situated in the districts and in the state. They are governed both by the state government and the RBI. Recently, the supervision of land development banks has assumed by National Bank for Agricultural and Rural Development (NABARD). The sources of funds for these banks are the debentures subscribed by both central and state government. These banks do not accept deposits from the public.
IMPORTANCE OF BANKING IN INDIA
Banks play a significant role in the economic development of the country. They touch every aspect of the modern economy. Some of the important role played by the banks for the development of Indian economy is as follows: -
Though the supply of many (bank money and credit money) banks exert a powerful influence on the interest rates in the money market.
Banks help trade and commerce, industry and agriculture by meeting their financial requirements.
Banks direct the flow of funds into productive channels. While lending money, they discriminate in favour of essential activities.
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In the modem economy the people who save and the people who undertake investment are different hence there is a need for investments that should help the flow of funds from the investors.
Banks mobilize the small, scattered and idle saving of the people, and make them available for the productive purpose, i.e.; they help in the process of capital formation
By offering attractive interest on the savings of people deposited with them, Banks promote the habit of thrift and savings among them.
Bank provide a convenient and economic means of payment and transfer of Funds i.e., Cheque, DD and bank drafts.
Banks help the movement of funds from regions where they are not very useful to regions where they can be more usefully employed.
Growth of Co-operative Banks in India
The co-operative banks have a history of almost 100 years. These co-operative banks are an important constituent of the Indian financial system, judging by the role assigned to them, the expectation stay is supposed to fulfill their number, and the number of offices they operate. The co-operative movement originated in the west, but the important that such banks have assumed in India is rarely paralleled anywhere else in the world. Their role in rural financing continues to be important even today and their business in the urban areas also has increased phenomenally in recent years mainly due to the sharp; increase in the number of primarily co-operative banks. While the co-operative banks in rural areas mainly finance agricultural based activities small scale industries and self employment driven activities, the co-operative banks in urban areas mainly finance various categories of people for self-employment, industries, small scale units, home finance, consumer finance etc. Some of the co-operative banks are quite forward looking and have developed sufficient core competencies to challenge state and private sector banks.
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Recent Developments
Over the years, primary (urban) co-operatives banks have registered a significant growth in number, size and volume of business handled. As on 31st March 2003 there were 2,104 UCBs of which 56 were scheduled banks. About 79 percent of these are located in five states, Andhra Pradesh, Gujarat, Karnataka, Maharashtra and Tamil Nadu. Recently the problems faced by a few large UCBs have highlighted some of the difficulties these banks face and policy endeavors are geared to consolidating and strengthening this sector and improving governance.
Some Facts about Co-operatives Banks in India
Some co-operatives banks in India are more forward than many of the state and private sector banks.
According to NAFCUB the total deposits & landings of Co-operatives Banks in India is much more than Old Private Sector Banks & also the New Private Sector Banks.
This exponential growth of Co operative Banks in India is attributed mainly to their much better local reach, personal interaction with customers, and their ability to catch the nerve of the local clientele.
RESERVE BANK OF INDIA POLICIES
The RBI appointed a High Power committee in May 1999 under the chairman of Shri K. Madhave Rao. Ex-Chief Secretary of Government of Andhra Pradesh to review the performance Urban Co-operative Banks and to suggest necessary measures to strengthen this sector. With reference to the terms given to the committee identified five board objectives:
To preserve the co-operative character of urban co-operative Banks. To protect the depositor’s interest.
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To reduce the systematic risks to the financial systems. To put in place strong regulatory norms at the entry levels is as to sustain the
operational efficiency of urban co-operatives banks in a competitive environment and revolve measures to strengthen the existing urban co-operative banks structure particularly in the context of ever increasing number of weak banks.
To align urban banking sector with the segments of banking sector in the context of application of prudential norms in Toto and removing the irritants of dual control regime.
Main Provision Applicable to Co-operative Banks
The provisions of the Banking Regulation Act applicable to co-operative banks are laid down in part 1 of the act under section 56, the main provisions of the act applicable to co-operative bank are:
Use of the word ‘Banks’ and ‘Banking’
Every co-operative bank governed by the Banking Regulating Act must use a part it name, any of the words, ‘Banks’, ‘Banker’ or ‘Banking’.
Licensing
Every co-operative bank governed by the banking regulation act must hold a license from the RBI.
Cash Reserve
Even co-operative bank governed by the Banking Regulation Act in India must maintain a way of cash reserve with itself or in current account with at the RBI, or the eco-operative bank of the state concerned or with any other bank notified by
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the central co-operative bank of the district concerned or partly in cash itself and partying the above mentioned account or a cost of sum equivalent to at least 3% of the total of its time and demand liabilities in India.
RESTRICTIONS ON LOAN AND ADVANCES
Co-operatives on the security of own shares should grant no loan or advance.
No unsecured loan or advance should be made by the co-operative bank to any of its directors, firms or private companies or individuals where any it’s director’s is interested to interested to any of the company in which the chairman of the Board of the co-operative bank is interested.
Submission of Returns
Every co-operative bank is required to submit to the RBI before the 15th of every month, a return showing the amount of cash reserve held by it on Friday in each week of the preceding month with particulars of his time and demand liabilities.
Every co-operatives is required to submit to the RBI a return showing all the unsecured loans and advances granted by it during a month to companies in which any of directors is interested, this return its be submitted before the closer of the month succeeding the month to which the return relates.
NABARD has been identified as a principle agency for planning coordinating and monitoring the rural credit delivery system at the district level.
Membership
The member ship of an Urban Co-operative bank is limited to the persons residing in the city and town who are salaried employees, factory workers, small traders, artisans etc.
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Management of Urban Co-operative Bank
Management or urban co-operative bank is vested in the Board of directors. The shareholders elect them. The final authority in all matters rests with the General Body, but the day to day working of the bank are looked after by the Board of Directors and efficient staff.
Deposit mobilization
The growing public confidence in the working of Urban Co-operative Banks in India has succeeded in attracting deposits even from the non-members. An Urban bank generally accepts current deposits, savings deposits and fixed deposits. Major portion of the deposits of Urban Co-operative Banks if from the fixed deposits collected by it.
Resources
The sources of finance or Urban Co-operative Banks are from capital, borrowed fund and from deposits. Own funds consist of paid up share capital and accumulated profit or retained profit in various form of reserved created out of appropriation of profit.
Accounts and Audit
The profit and loss account and the Balanced Sheet of a Co-operative bank are required to prepare for the year ending 31st March. A qualified Chartered accountant must audit these accounts. Three copies of the audited profit and loss account and balance sheet of a co-operative bank required to be submitted to the RBI within a period of six months from 31march, which can be extended by another six months, by the RBI.
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Co-operative Principle
Co-operatives banks are organized and managed on the Principle of Co-operation, Self-help, and mutual help. They function with the rule of “one member, one vote, function on “no profit, no loss” basis. Co-operative banks, as a principle do not pursue the goal of profit maximization. Co-operative bank performs all the main banking function of deposit mobilization, supply of credit and provision of remittance facilities.
Co-operative banks provide limited banking products and are functionally specialists in agriculture related products. However, co-operative banks now provide housing loans also.
Principle of Co-operative Banks
There are as follows,
Voluntary and open membership Democratic Member Control Member Economies Participation Autonomy and Independence Education, Training and Information Co-operation among co-operatives Concern for Community
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7 PRINCIPLES OF CO-OPERATIVE BANK
The co-operative principle are guidelines by which co-operative put their values into practice
1st principle = Voluntary and Open Membership
Co-operative open to all person able to use their service and willing to accept the responsibility of membership without gender, social, racial, political or religious discrimination.
2nd principle = Democratic Member Control.
Co-operative are democratic organization controlled by their member, who actively representative are accountable to the membership , in primary the Co-operative member have equal voting rights (one member, one vote )and co-operative at other are also organized in a democratic manner.
3rd principle = Member Economic Participation
Contribute equitable to and democratically control the capital of their co-operative. At least part the capital is usually the common property of the co-operative member, usually receive limited compensation subscribed, if any on capital subscribed as condition of membership member allocate surplus for any of the following purpose developing their co-operatives, possible by setting up reserve, part of which at least would be in divisible, benefiting members in proportion to their transaction with the co-operative, the co-operatives and supporting other activities approved by the membership.
4th principle = Autonomy an independence
Co-operative provides education and training for the training for the member, elected representatives, managers if they enter into agreements with other organization, including government to raise capital from external sources they do so in terms that ensure democratic control by their member and maintain their co-operative autonomy.
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5th principle = Education, Training and Information
Co-operative provide education and training for their members elected representative, managers and employees, so the employee so that, they can contribute effectively to the development of their co-operative , they inform the general public-particularly young people and opinion leaders about the nature and benefit of co-operative.
6th principle = Co-operation among Co-operative
Co-operative serve their member most effectively and strength the co-operative movement by working together through local, national, regional and international structure.
7th principle = Concern for Community
Co-operative work for the sustainable development of their communities through policies approved by their member.
FEATURES OF CO-OPERATIVE BANK
Some distinguishing characteristics of the co-operative bank are as follows: Co-operative bank belongs to the money market as well as to capital market. Co-operative bank do banking business mainly in the agriculture and rural
sector. Co-operative bank performs all the main banking function on deposits,
mobilization of funds. They function on “no profit, no loss” basis. They are organized and managed on the principles co-operation, self-help and
mutual help. They function with the rule of “1 member, 1 vote”. Co-operative bank perhaps the 1st government sponsored financial agency in
India. Co-operative bank are subject to CRR and liquidity requirements as other
scheduled and non-scheduled banks.
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Characteristic of Co-operative Banks
The character features of Co-operative banks are given as follows:
Self help and mutual help One man, one vote Motivated by service Mainly agricultural finance Government interference Regulation by dual masters Statutory audit Money market (financial market) Financial intermediaries Financial assistance by government Federal structure
Problems of Co-operative Banks
The main problems of co-operative banks are as follows
Weak and Dormant Banks Stiff competition by commercial banks Uneven growth Structural weakness Too much officialiisation and politicization Mounting over due and unprofessionalsied management
Finance is that business activity which is consent with the acquisition and conservation of the capital hinds in meeting the financial hinds in meeting the financial needs and overall objective of business enterprise.
The word finance comes indirectly from Latin word FINIS under Roman law contract was not completed until there was a binding agreement for monetary or
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credit arrangements. Finances are defined as issuance of distribution and purchase of liabilities and equity claims issued for the purpose of generating review producing assets.
Finance guides and regulates investment decision and expenditure and the expenditure decision by pertain to recurring expenditure or may relate to capital expenditure programmers or capital getting to get the best out of available funds is the tale of financial management thus finance objective of any corporate plan must be expressed in financial terms efficient management of its finance it is the basic foundation of all kinds of economic activities.
Finance is the lifeblood of business: procuring and judicious of finance are the two important activities of financial managements. Adequate funds at disposal of business and funds of various types to carry out the business smoothly without the fear of losing funds.
FINANCIAL MANAGEMENT
Financial management is managerial activity consent with planning controlling the firms’ financial resources, which is interest to acidification. As well as practicing managers to understand the theory of financial management is not merely accounting management. Besides accounting also involves, financial decision that is how to rise funds loans are retain profit investment decision utilization of funds is one activity are the other dividend decision quantum of retain to the investment
The objective financial management is to find out the profitability and to information about financial position of the concern. Two principal statement of financial accounting are income and expenditure statement and balance sheet.
Financial management is a measuring rod for success or failure of an organization financial management is an exclusive exercise in economic, which includes
a) Funds management
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b) Control and reporting systemc) Financial cost and management accountingd) Tax planninge) Budgets related disciplines
Importance of Financial Management
Financial management is applicable to every type of organization irrespective of its size, kind or nature. The core of financial policy is to maximize earnings in the long run and optimize then in the short run. The reason for placing the finance function in the hands of top management may be attributed to any of these following reasons. Finance is needed to promote or establish the business acquire fixed assets; make investigations such as market surveys, development of products.
Financial decisions are crucial to the survival of the firm. At no cost can a firm affords threaten its solvency is affected by the flow of funds that is a result of various financial activities, top management being in position to co-ordinate those activates retains financial function in its control. It also deals with financial planning.
Another important function of financial accounting is to make the information more useful and reliable. This is done
Functional Areas of Financial Management
Today, the changing business environment has widened the role of a financial manager. Some of the functional areas covered in financial management are
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Determining Financial Needs
This is done to ensure the availability of adequate funds. Financial needs must be assessed for different purposes. Money may be required for initial promotional expenses, fixed capital and working capital needs. Financial accounting is useful to management as well as to external users such as potential owner’s creditors’ government agencies and other interested person making summaries, dealing with financial transaction, interpreting financial information, communicating results of its operation. It provides information regarding the status of the business and result of its operation. The financial accounting is concerned with the preparation of final accounts that is P&L account and balance sheet.
Determining sources of funds
The financial manager has to choose resources of funds. He may borrow from a number of financial institutions and the public. A firm is committed to the financial lenders and must meet the terms on which they offer credit.
Financial analysis
It is the evaluation and the interpretation of a firm’s financial position operations and involves comparison and interpretation of accounting data.
Optimal capital structure
The financial manager must establish an optimal capital structure and ensure the maximum rate of return on investment. The ratio between equity and other liabilities carrying fixed charges has to be defined. In the process, he has to consider the operating and financial leverages of the firm.
Cost volume profit analysis
Fixed cost, variable coat and semi-variable cost have to be analyzed. It must be ensured that the income of the firm will cover its variable cost. Moreover, a firm must generate an adequate income to cover its fixed costs.
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NEED FOR FINANCE IN BUSINESS
Finance in business is needed to meet both long term and short term objectives
of the organization. Following are some of the avenues where business finance is
developed to meet the firm’s objectives.
1. Acquisition and management of current assets for managing day to day
operations.
2. Managing merger, reorganization, expansion, and diversification.
3. To meet expectation of stake holders.
4. To find the establishment of an organization, this includes the acquisition of
necessary assets for running the business
According to Guttmann and Doug all, business finance can be broadly defined as
the activity concerned with planning, raising, controlling and administering of the
funds used in the business.
Finance is the processes of organizing the flow of funds so that a business can
carry out in the most efficient manner and most its obligations as they fall due.
TYPES OF FINANCE
Finance can be classified in to two types as follows
1. Public finance
2. Private finance
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Public Finance: It deals with the requirement, receipts and disbursements of
funds in the government institutions like states, local self-government and central
Government.
Private Finance: It is concerned with requirements, receipts and disbursements
of funds in case of individual, a profit seeking business organization and non-
profit organization.
FUNCTIONS OF FINANCE
Although it is different to separate finance functions from other functions, yet the
function them can be readily identified. The function of raising funds, investing
them in assets and distributing returns earned from assets to shareholder are
respectively known as financing, investment and dividend decisions. While
performing these functions, the firm attempts to balance cash inflow and
outflows. This is called liquidity decision and it is taken as one of the most
important finance functions. In short, finance is concerned with
Obtaining funds at the lowest cost
making the optimal use of these funds
PROBLEMS OF FINANCING
Every firm has its own goals aiming at a certain extent of profit generation. It is
not necessary for a firm to have the goal or profit maximization as the only
objective in the short as well a long run. The management might have its own
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limitations of efficiency and capacity, levels of satisfaction and appraisal of future,
etc. The problems faced by an account dealing with finance functions are:
Type of expenditure to which a firm should get itself involved in a commitment
to spend
The volume of funds that should be committed by a firm on various type of
expenditure
The financing pattern that is consider desirable.
The ways and means by which the existing funds committed as well as non-
committed could be utilized forgetting maximum benefits for the firm.
The course of action to be taken whenever the expectation does not
materialize and a failure is to be averted.
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TITLE OF THE STUDY
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“A study of Financial performance of Textile Co-operative bank Ltd.,” Bangalore
STATEMENT OF THE PROBLEM
Finance is regarded, as the lifeblood of the business world and one of the major
sources to meet these requirements are financial institutions. Co-operative bank
is also one of the institutions, which offers the financial solution to meet the
requirements of the different business people.
Lending of fund is the basic function of a Co-operative bank. It constitutes the
main business of a bank. The major portion of banks funds is employed by way of
advances. Loans and advances enable trade, commerce, industry and agricultures
to meet their financial requirements. This project has been undertaken to study
the procedures involved in process in financial performance pertaining to loan to
different methods of Textile Co-operative Bank.
Analysis of financial performance is one of the major requirements for planning.
Textile Co-operative bank is a private sector bank and been analyzed its
performance required by shareholders, management, creditors, prospective
investors, employees and trade unions and other financial institutions as they are
interested to know the financial soundness of the bank.
The project analysis of the financial performance of Textile Co-operative bank by
taking 5 years into consideration i.e., 2006-2010.
OBJECTIVES OF STUDY
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To understand the financial performance of the Textile Co-operative bank.
To study the trend of actual performance of various financial parameters with reference to estimated performance.
To bring out strengths and weakness.
To offer summary of findings & recommendations.
SCOPE OF THE STUDY
It was taken up to know the financial activities in TEXTILE CO-OPERATIVE BANK
relating their business activities and performance of the corporation.
The study is being done to know the financial activities of the corporation.
Study is being done to ascertain the financial status of the firm.
The study of financial performance comprise of ratio analysis, and
comparative statement analysis.
The study was made to analyze the financial performance with reference to
financial statements like profit and loss account and balance sheet with
help of tables, ratios, and graphs, providing suggestions for improving the
methods and procedures followed by the firm.
SOURCE OF DATA
The data collecting for the study is divided in to two ways.
Primary data.
Secondary data.
Primary data
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Hence, the study is in financial management .Then the chance of primary data is less, but the interviews from the managers and the chief accountants will be made.
Secondary data
Secondary data is from published materials that is journals, news papers, annual report and magazines.
Method used in collecting data
The researcher has collected the data by way of reference. Researcher referred various books Time frame of the data: Information and data collected by researcher is a period of five financial year (2004-2005 to 2008-2009)
Tools used in analysis
The ratio analysis as used in the accounting includes at least two basic statements which are prepared by the concern at end of every financial year
The income statements or profit and loss account
The position statements or the balance sheet
METHODOLOGY
The study is based on the discussion conducted with the officials of the bank and guide the various data collected through annual reports, journals, magazines, data from internet.
LIMITATION OF THE STUDY
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This study on ratio analysis is for the period of the 5 years only
Time factor is one the limitations of the study
The data collected information is limited neither is because of the much data nor provided by the bank.
CHAPTER SCHEME
Following are the chapter schemes followed in the project work such as,
Chapter-1
Introduction of banks, Types of Co-operative Banks, Importance of banking in India, Growth of Co-operative banks in India, Recent Developments, RBI polices, Main provision applicable to co-operative Banks,7 Principle of Co-operative Banks, Characteristic features of Co-operative Banks, financial management, Important of financial management, need for finance in Business, types of finance, functions of finance, problems of financing
Chapter-2
Title of the study, Statement of the problem, Objectives of study, Scope of the study, Source of data, Tools used in analysis, Methodology, Limitation of the study, Chapter scheme.
Chapter-3
Company profile- introduction, information technology, vision and mission statement, , membership, sources of funds, organization structure, management, board of director, problems faced by bank, competitors.
Chapter-4
Analysis and interpretation- The Table or data has to be analyzed and interpreted.
Chapter-5
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Findings and conclusion
Chapter-6
Suggestions and recommendations
Chapter-7
Conclusion
Bibliography
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Textile Co-operative Banking Profile
The Textile Co-operative bank was established in the year 1964, with just few of members. The bank has 7 branches in the state serve the depositors and the account holders, who exceed 1lakhs in members.
The bank has 7branches in Bangalore. The bank is formed on the Co-operative principle and as such they are more service oriented than profit oriented. The bank provides credit at low rate of interest to common to economically weaker sections. The bank follows the rules regulation strictly.
A co-operative organization is an association of person, usually of limited means, who have voluntarily joined together to achieve a common economic and through the formation of a democratically controlled organization.
RBI license Number and Date
License Number: UBD/KA/867P/13-11-1986
1st floor Devanga Market , J.M.Road B’lore-2
Vision
To provide financially assistance to weavers community. They shall maintain highly trained and motivated professionals committed to
the highest standards of ethics and excellence. They shall contribute to building progressive and good standard of co-
operative societies in the small weaker people.
Mission
To emerge as a nationalized bank with traditional. To provide world class services. To maintain the highest standard of professionalism and integrity.
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Objectives of the bank
To encourage savings, self-help and co-operative among the banks members, nominee members and account holders.
To carry on the banking activities according to the rules of the banking regulation act of 1949 as applicable to co-operative societies under section 5B.
To collect money or to obtain funds. To prepare projects and lend funds to economically backward and poor groups
in the society.
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ORGANIZATIONAL STRUCTURE OF THE TEXTILE
CO-OPERATIVE BANK LTD.
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GENERAL BODY (SHARE HOLDERS)
As per the membership details given in the Annual Report as on 31-03-2010, the total number of members / shareholders of Textile Co-operative Bank are 15,418.
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GENERAL BODY
(SHARE HOLDERS)
BOARD OF DIRECTORS
PRESIDENT
GENERAL MANAGER
(ACTING) (CEO)
ASST. GENERAL MANAGER
(OFFICER V)
BOARD OF DIRECTORS (BOD)
At present, there are 15 directors of the bank. The President and the directors are elected once in 5 years in the General Body Meeting. The main function of the directors is to formulate policies and see to the smooth functioning of the bank. All-important decisions are subject to the approval of the Board. The directors are: -
PRESIDENT
Sri.R.Bhaskar
VICE PRESIDENT
Sri.S.Umashankar
DIRECTORS
R. Venketaramiah Madhav Y.V.Venkaramappa K.Ashwanaryana D.H.Jagnavanath U.P.Ramaiah T.Bhasker S.Srikanthaiah J.S.Bharath Bhashan Smt.Kamala Ramuualu P.M.Nagaraj C.Ramashivahiah M.Krishna Murthy
CEO: Ramesh
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MANAGEMENT
Today living up to the ideals of the founding visionaries is the management at Textile Co-operative Bank. The management includes dedicated professionals who bring with them considerable amount of experience in the banking industry.
FEATURES OF TEXTILE CO-OPERATIVE SOCIETIES
VOLUNTARY ASSOCIATION
The most important features of co-operative society are that it is voluntary association of individuals. Persons are free to join or withdraw from the society.
OPEN MEMBERSHIP
This means that membership of society should be open to all and should, political, religious discrimination against anyone. Further, it should be available to all persons who need and can make use of the society’s service and are willing to accept the responsibility of membership.
COMMON INTEREST
All members of the co-operative societies have common interest. The aim of all of them is to ensure fair their produce.
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GROWTH OF THE COMPANY
The bank started its operation in 1963 with the share capital of Rs.1,00,000. The Net profit of the bank in the year 2006 is Rs 90.91 lakhs. Now Net profit has crossed Rs.137.44 lakhs. This tells the growth rate of the bank.
FUTURES PLANS OF THE BANK
To increase the deposits of the bank. To increase the facility of the lending loans to the members of the bank. To improve the financial status of the bank. To earn more profits by adopting the change those are taking place in the
banking industry.
COMPETATOR OF THE BANK
1. All nationalized Banks.2. Regional rural Banks.3. Credit Co-operative Societies.
SERVICE OF BANK
When the bank commenced operation in 1963 service was primarily focused on the growth and development of the urban sector. Today a variety of specialized banking services are offered through the various branches.
SERVICES RENDERED BY THE BANK
Locker facility in head office as well as branch offices. Increased interest rate of 1.0% to the senior citizen for the amount deposited
more than one year. Increased interest of 0.5% to institution.
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Demand draft facility at a discount rate for the main cities of the country. (Through HDFC bank).
Interest on deposit is more than that of commercial bank. Pay order facility. Computerized transaction in head office and also in branch office. Good services to the customers and special interest are senior citizens. Credit on jewelers All types of banking facilities. Sanctioning of loans at a higher speed, charging lower interest rates. 1% discount is allowed on loans, which are repaid within the agreed period.
DOMESTIC OFFERINGS
Textile Co-operative bank offers a widely array of customers friendly deposits and credit schemes. This scheme has been decided after careful understanding customer requirements.
DEPOSITS SCHEMES
1. FIXED DEPOSITS SHEME
Ideal for common people, retired persons and Housewife among others, the fixed deposits schemes provided regular income at monthly, quarterly or yearly intervals.
2. SAVINGS BANK A\C
It is meant for persons whenever they can deposit and withdraw money as they wish. But is a limitation that only once or twice a week they make the transaction.
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3. LOANS AND ADVANCES:
The bank has introduced many schemes that cater people.
Housing loan Secured and unsecured loans Vehicle loans Others
BANK CONSTITUTED THE FOLLOWING SUB-COMMITTEE SANCTION
1) Loan sub-committee2) Accounts arrears sub-committee3) Staff sub-committee4) Computer5) Audit6) Building7) Annual General body members
ADVANTAGES OF THE ORANIZATIONAL STRUCTURE
It promotes logical division of work. Every functional head looks after one function only and therefore the
workload on top executives is reduced. As a result of joint supervision, control becomes effective. Recruitment, Selection and Training of Managers is simplified because each
individual is required to have knowledge of one’s functional area only. Every Individual in the organization concentrates on only one function and
services expert guidance and therefore efficiency of operation is high.
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STANDARDS OF CONDUCT
The Textile Co-operative Bank Ltd. follows certain ‘Standards of Conduct’ or ‘Ethical Principles’ that will be enforced equitably at all organizational levels. They are: -
Towards Customers Quality service Error reconciliation Towards Employees Equal employment opportunities Good work place environment Employee privacy Open communication Employee development Compensation & benefits Towards Shareholders Good Return on Investments Protection of Assets Intellectual property Accuracy of records Share holder communication
SIGNIFICANT FACTORS OF SUCCESS
Quality of services. Low Rate of interest. Various forms of deposits and loans offered to suit the needs of different
people. Customer friendly atmosphere maintained in the bank. Efficient and well -qualified employees. The banking hours facilitates business people.
35
POLICIES OF THE BANK
To deliver quality services to the customers. Committed to the compliance of laws and regulations formed by Govt. To frequently supply Reserve Banks with necessary data. Employees may not accept gifts, entertainment from anyone seeking a
contract with the company. To provide the middle / lower class people with cheaper finance. To have a diverse credit portfolio. To keep in view the national policy attached to the housing sector and
liberalize the finance for construction / renovation, acquisition of residential houses based on the repaying capacity of the borrower.
Awards to Textile Co-operation Bank
“A” Grading from RBI. “Best co-operative bank” from co-operative board. Accruing 120 crorcs of deposit.
36
37
Computation of Trend Percentages of Textile Co-operative bank ltd
To understand the financial performance of the Textile Co-operative bank.
TABLE-1
Table shows the share capital from the year 2006 to 2010
(In Lakhs)
year Amount Percentage2005-06 264.44 100%
2006-07 306.58 116%
2007-08 357.36 135%
2008-09 407.83 154%
2009-10 467.36 177%
Analysis
From the above table, the status of share capital on 2006 was Rs. 2,64,44,500.00
which is 100% than in 2007 it was Rs.3,06,58,500.00 which indicate that there
was a increase 16% (116-100) of than in 2008 it was Rs. 35735900.00there is
increase in 35% in share capital and in 2009 was Rs. 40783200.00that is 54% (154-
100) can be increase, and then in 2010 share capital was Rs. 467.36300.00 again
it was increased 77% (177-100) for from the above.
38
GRAPH-1
Graph showing share capital of Co-operative from the year
2006 to 2010
2005-06 2006-07 2007-08 2008-09 2009-100%
20%
40%
60%
80%
100%
120%
140%
160%
180%
100%
116%
135%
154%
177%
Percentage
Inference
Above graph indicates, Share capital issued by Textile Co-operative bank ltd has
by 100% in 2006 and it increased by 16% (116-100) from the 2007 to 2008 there
was some percent as increased by 35% (135-100) and again it was increased by
77% (177-100) in the year 2010.
39
TABLE-2
Table showing Reserves funds from the year 2006 to 2010
(In Lakhs)
year Amount Percentage
2006 303.44 100%
2007 338.72 111%
2008 363.44 120%
2009 405.67 133%2010 437.01 144%
Analysis
From the above table, the status of Reserves and funds on 2006 was Rs.30344265.25 which is 100% than in 2007 was Rs.33872595.00 it indicates, that there is increased by 11%(111-100) it was increase to than in 2008 it was Rs.36344528.00 that is there is increase in 20% (120 -100) in reserves and funds and in 2009 was Rs.40567595.00 that is 33%(133-100) and than in 2010 it was Rs.43701598.00 be increase by 44% (144-100) from the above.
40
GRAPH-2
Graph showing the Reserves and funds of Co-operative from the
year 2006 to 2010
2005-06 2006-07 2007-08 2008-09 2009-100%
20%
40%
60%
80%
100%
120%
140%
160%
100%111%
120%
133%144%
Percentage
Inference
Above graph indicates, Reserves and funds issued by Textile Co-operative bank ltd
has 100% in 2006 and it increased by 11% (111-100) from the 2006 to 2007 than
it increased by 20%(120-100) from the 2007 to 2008 and again it increased by
33% (133-100) in the year 2008 to 2009 and again there is increase by 44%(144-
100) from the year2009to 2010.
41
TABLE-3
Table showing the Deposits from the year 2007 to 2009
(In Lakhs)
year Amount Percentage2006 7265.64 100%
2007 7362.61 101%
2008 9163.55 126%
2009 9873.46 136%2010 11569.52 159%
Analysis
From the above table, the status of Deposits on 2006 was Rs.118690443.33 which is 100% than in 2007 was Rs.736261125.00.00 it indicates, that there is increased by 1%(101-100) it was increase to than in 2008 it was Rs.916355598.32 that is there is increase in 26% (126 -100) in Deposits and in 2009 was Rs.987346272.24 that is 36%(136-100) and than in 2010 it was Rs. 1156951847.61 be increase by 59% (159-100) from the above.
GRAPH-3
42
Graph showing the Deposits of Co-operative from the year 2007 to
2009
2005-06 2006-07 2007-08 2008-09 2009-100%
20%
40%
60%
80%
100%
120%
140%
160%
100% 101%
126%136%
159%
Percentage
Inference
Above graph indicates, Deposits issued by Textile Co-operative bank ltd has 100%
in 2006 and it increased by 1% (101-100) from the 2006 to 2007 than it increased
by 26%(126-100) from the 2007 to 2008 and again it increased by 36% (136-100)
in the year 2008 to 2009 and again there is increase by 59%(159-100) from the
year 2009 to 2010.
TABLE: 4
43
Table showing the Branch Adjustments as per contra from the year
2006 to 2010
(In Lakhs)
year Amount Percentage2006 3701 100%
2007 4019 108%
2008 4709 127%
2009 4686 126%
2010 5572 151%
Analysis
From the above table, the status of Bills receivable as per contra on 2006 was
Rs.3701195823.00 than in which is 100% than in 2007 was Rs.401982936.00 that
is indicates, there was increase by 8%(108-100) than in 2008 it was
Rs.470990523.73 and increase in 27% (127-100) and in 2009 was Rs.46865995.00
there is increase that is 26%(126-100) and in the year 2010 that was
Rs.557268361.00 increase than in Branch Adjustments and in it was 51%
(151-100) from the above.
GRAPH-4
44
Graph showing the Branch Adjustments of Co-operative from the
year 2006 to 2010
2005-06 2006-07 2007-08 2008-09 2009-100%
20%
40%
60%
80%
100%
120%
140%
160%
100%108%
127% 126%
151%
Percentage
Inference
Above graph indicates, Branch Adjustments issued by Textile Co-operative bank
ltd has in the year 2006 was 100% and then in 2007 was 108% and in 2008 and
again it increased by 27%(127-100) in the year 2008- 2009 again in was increase
to 51%(151-100) in the year 2009-2010.
TABLE: 5
45
Table showing the Interest payables from the year 2006to 2010
(In Lakhs)
year Amount Percentage2006 48 100%
2007 41.86 87%
2008 88.32 184%
2009 126 262%
2010 82.13 171%
Analysis
From the above table, the status of Interest payables on 2006 was Rs. 4852596.00 which is 100% than in year 2007 was Rs.4186922.00 that indicates, there is decrease by 13%(87-100) in year 2008 it was Rs.8832651.00 there is increase by 84% (184-100) in interest payables and than in 2009 was Rs.12667496.00 that is increase by 162%(262-100) in 2010 it was Rs.8213221.00 there was increase by 71%(171-100).
GRAPH-5
46
Graph showing the Interest payables of Co-operative from the year
2006 to 2010
2005-06 2006-07 2007-08 2008-09 2009-100%
50%
100%
150%
200%
250%
300%
100%87%
184%
262%
171%
Percentage
Inference
Above graph indicates, Interest payables issued by Textile Co-operative bank ltd
has in the year 2006 it was 100%, and it decrease by 13% (87-100) from the 2006
to 2007 than again there was increase by 84%(184-100) from the 2007 to 2008
than in it increase by 162% (262-100) and increased by 71% (171-100) in the year
2009 to 2010
TABLE-6
Table showing Over Drafts from the year 2006 to 2010
47
(In Lakhs)
year Amount Percentage
2006 448 100%
2007 370 82%
2008 500 111%
2009 489 109%
2010 523 117%
Analysis
From the above table, the status of over drafts, on 2006 was Rs.44826542.00 which is 100% than in 2007 was Rs. 37022540.84 that is indicates, there is decrease by 18%(82-100) and in 2008 it was Rs.50055357.48 in 11% (111-100) in over drafts, and in 2009 it’s was increase to Rs.48909640.47 by 9(109-100) and 2010 it was Rs.52386155.76 in again it was increase by 17%(117-100).
GRAPH-6
Graph showing the Over Drafts of Co-operative from the year 2006
to 2010
48
2005-06 2006-07 2007-08 2008-09 2009-100%
20%
40%
60%
80%
100%
120%100%
82%
111% 109%117%
Percentage
Inference
Above graph indicates, Over Drafts issued by Textile Co-operative bank ltd has
100% in 2006, and it was decreased by 18% (82-100) from the 2007 to 2008 and
again the value and amount in 2008 to 2009 was increased to 9%(109-100) and
than in 2009 to 2010 it was increase by 17%(117-100).
TABLE-7
Table showing the Other Liabilities from the year 2006 to 2010
(In Lakhs)
49
year Amount Percentage2006 401.84 100%
2007 391.84 97%
2008 303.32 76%
2009 323.56 80%2010 415.91 104%
Analysis
From the above table, the status of Other Liabilities on 2006 was Rs.1301418.00 which is 100% than in 2007 was Rs.39184532.36 that is indicates there was decrease by 3%(97-100), 2008 it was Rs.30332517.45 there is decrease in 24% (76-100) in Other Liabilities and in 2009 was Rs.32356686.42 that is 20% (80-100) can be decrease and in 2010 the other liabilities was Rs.41591846.90 means there was increase by 4%(104-100) from the above.
GRAPH-7
Graph showing the Other Liabilities of Co-operative from the year
2006 to 2010
50
2005-06 2006-07 2007-08 2008-09 2009-100%
20%
40%
60%
80%
100%
120%100% 97%
76%80%
104%
Percentage
Inference
Above graph indicates, Other Liabilities issued by Textile Co-operative bank ltd
has 100% in 2006, and it was decreased by 3% (97-100) from the 2007 and then
in 2008 was by 24% (76-100) it decrease by 20% (80-100) in the year 2009 and
again by 4%(104-100) increased in the year of 2010.
TABLE: 8
Table showing the Total Liabilities from the year 2006 to 2010
(In Lakhs)
year Amount Percentage
51
2006 12056 100%
2007 13592 112%
2008 16380 136%
2009 17273 143%
2010 19898 165%
Analysis
From the above table, the status of Total Liabilities on 2006 was
Rs.1206122886.51 which is 100% than in 2007 was Rs.1359214719.34 that is
indicates, there is increase by 12%(112-100) in 2008 it was Rs.1638016793.25 it
was increased by 36%(136-100) and in 2009 was Rs.1727344966.96 that is 43%
(143-100) in total liabilities and in 2010 was Rs.1986800961.24 it was 65(165-100)
can be increase from the above.
GRAPH-8
Graph showing the Total Liabilities of Co-operative from the year
2006 to 2010
52
2005-06 2006-07 2007-08 2008-09 2009-100%
20%
40%
60%
80%
100%
120%
140%
160%
180%
100%112%
136%143%
165%
Percentage
Inference
Above graph indicates, Total Liabilities issued by Textile Co-operative bank ltd has
in the year 2006 it was 100%, and it increase by 12% (112-100) from the 2006 to
2007 and there was increase in by 36%(136-100) from 2007 to 2008 and again it
increased by 43% (143-100) in the year 2008 to 2009 and there was increased by
65%(165-100) from the year 2009 to 2010.
TABLE-9
Table showing Net Profit after Tax for the year 2006 to 2010
(In Lakhs)
Year Amount Percentage
53
2006 90 100%
2007 58 64%
2008 143 159%
2009 99 110%
2010 137 152%
Analysis
From the above table, the status of Net Profit After Tax on 2006 was Rs.9091598.00 which is 100% than in 2007 was Rs.5874712.33 that is indicates there is decrease in 36%(64-100) than in 2008 it was Rs.14389742.94 there was increase by 59% (159-100) and in 2009 was Rs.9903928.46 that indicate there more increase by 10% (110-100) in Net Profit After Tax , and again there was increase that is 52% (152-100) in 2010 was Rs.13743715.83 from the above.
GRAPH-9
Graph showing the Net Profit after Tax of Co-operative from the
year 2006 to 2010
54
2005-06 2006-07 2007-08 2008-09 2009-100%
20%
40%
60%
80%
100%
120%
140%
160%
100%
64%
159%
110%
152%
Percentage
Inference
Above graph indicates, Net profit after issued by Textile Co-operative bank ltd has
in the year 2006 it was 100%, and it decrease by 36% (64-100) from the 2006 to
2007 and there was increase in by 59%(159-100) from 2007 to 2008 and again it
increased by 10% (110-100) in the year 2008 to 2009 and there was increased by
52%(152-100) from the year 2009 to 2010.
Computation of Trend Percentages of Assets of Textile Co-operative
bank Ltd
TABLE: 10
Table Showing the Cash from the year 2006 to 2010
(In Lakhs)
55
years Amount Percentage2006 98 100%
2007 61 62%
2008 175 178%
2009 200 204%
2010 172 175%
Analysis
From the above table, the status of Cash on 2006 was Rs.9802546.00 which is 100% than in 2007 was Rs.6140967.59 that is indicates there was decrease by 38%(62-100), 2008 it was Rs.17589927.66 there is increase in 78% (178-100) in Cash and in 2009 was Rs.20082301.80 that is 104% (204-100) can be increase and again in 2010 the Cash was Rs.7205896.90 means there was increase by 75%(175-100) from the above.
GRAPH-10
Graph showing the Cash of Co-operative from the year 2006 to 2010
56
2005-06 2006-07 2007-08 2008-09 2009-100%
50%
100%
150%
200%
250%
100%
62%
178%
204%
175%
Percentage
Inference
Above graph indicates, Cash issued by Textile Co-operative bank ltd has 100% in
2006, and it was decreased by 38% (62-100) from the 2007 and then in 2008 was
by 78% (178-100) it increase by 104% (204 -100) in the year 2009 and again by
75%(175-100) increased in the year of 2010.
TABLE-11
Table Showing the Fixed Deposits from the year 2006 to 2010
(In Lakhs)
57
Year Amount Percentage2006 4750 100%
2007 4037 85%
2008 5416 114%
2009 6351 133%
2010 7550 159%
Analysis
From the above table, the status of Fixed Deposits on 2006 was Rs.475006551.00 which is 100% than in 2007 was Rs.403778006.15 it indicates, that there is decreased by 15%(85-100) than in 2008 it was Rs.541629457.15 that there is increase in 14% (114 -100) in Fixed Deposits and in 2009 was Rs.635519289.15 that is 33%(133-100) and than in 2010 it was Rs.755001368.15 be increase by 59% (159-100) from the above.
GRAPH-11
Graph showing the Fixed Deposit of co-operative from the year
2006 to 2010
58
2005-06 2006-07 2007-08 2008-09 2009-100%
20%
40%
60%
80%
100%
120%
140%
160%
100%
85%
114%
133%
159%
Percentage
Inference
Above graph indicates, Fixed deposit issued by Textile Co-operative bank ltd has
in the year 2006 it was 100%, and it decrease by 15% (85-100) from the 2006 to
2007 and there was increase in by 14%(114-100) from 2007 to 2008 and again it
increased by 33% (133-100) in the year 2008 to 2009 and there was increased by
59%(159-100) from the year 2009 to 2010.
TABLE-12
Table showing Loans and Advances from the year 2006 to 2010
(In Lakhs)
year Amount Percentage
2006 2830.08 100%
59
2007 3456.12 122%
2008 4411.76 155%
2009 5222.29 184%
2010 6017.38 213%
Analysis
From the above table, the status of Loans and Advances on 2006 was Rs.293008789.78 which is 100% than in 2007 was Rs.345915620.24 it indicates, that there is increased by 22%(122-100) than in 2008 it was Rs.441176590.98 there is increase by 55% (155 -100) in Loans and Advances and in 2009 was Rs.52228818.24 that is 84%(184-100) and than in 2010 it was Rs.601738196.14 be increase by 113% (213-100) from the above.
GRAPH-12
Graph showing the Loans and Advances of Co-operative from the
year 2006 to 2010
60
2005-06 2006-07 2007-08 2008-09 2009-100%
50%
100%
150%
200%
250%
100%
122%
155%
184%
213%
Percentage
Inference
Above graph indicates, Fixed deposit issued by Textile Co-operative bank ltd has
in the year 2006 it was 100%, and it increase by 22% (122-100) from the 2006 to
2007 and there was increase in by 55%(155-100) from 2007 to 2008 and again it
increased by 84% (184-100) in the year 2008 to 2009 and there was increased by
113%(213-100) from the year 2009 to 2010.
TABLE-13
Table showing Investments from the year 2006 to 2010
(In Lakhs)
Years Amount Percentage
2006 4502 100%
61
2007 5125 114%
2008 5901 131%
2009 6131 136%
2010 6860 152%
Analysis
From the above table, the status of Investments on 2006 was Rs.450225027.00
which is 100% than in 2007 was Rs.512504643.17 it indicates, there is increased
by 14%(114-100) than in 2008 it was Rs.590140043.82 there is increase by 31%
(131-100) in Investments and in 2009 was Rs.613128018.82 that is 36%(136-100)
and than in 2010 it was Rs.686059943.17 be increase by 52% (152-100) from the
above.
GRAPH-13
Graph showing the Investments of Textile Co-operative from the year
2006 to 2010
62
2005-06 2006-07 2007-08 2008-09 2009-100%
20%
40%
60%
80%
100%
120%
140%
160%
100%
114%
131% 136%
152%
Percentage
Inference
Above graph indicates, Investments issued by Textile Co-operative bank ltd has in
the year 2006 it was 100%, and it increase by 14% (114-100) from the 2006 to
2007 and there was increase in by 13%(131-100) from 2007 to 2008 and then
there is increased by 36% (136-100) in the year 2008 to 2009 and there was
increased by 52%(152-100) from the year 2009 to 2010.
TABLE-14
Table showing Interest Receivable from the year 2006 to 2010
(In Lakhs)
63
year Amount Percentage2006 6.73 100%
2007 106 1575%
2008 14.63 217%
2009 13.93 200%
2010 11.70 167%
Analysis
From the above table, the status of Interest receivable on 2006 was Rs. 673499.00 which is 100% than in 2007 was Rs. 10668028.00 it indicates, that there is increased by 1475%(1575-100) than in 2008 it was Rs. 1463051.00 that there is increase in 117% (217 -100) in Interest Receivable and in 2009 was Rs.1393963.98 that is 100%(200-100) and than in 2010 it was Rs.1170875.03 be increase by 67% (167-100) from the above.
GRAPH-14
Graph showing the Interest Receivables of Textile Co-operative from
the year 2006 to 2010
64
2005-06 2006-07 2007-08 2008-09 2009-100%
200%
400%
600%
800%
1000%
1200%
1400%
1600%
100%
1575%
217% 200% 167%
Percentage
Inference
Above graph indicates, Interest Receivables issued by Textile Co-operative bank
ltd has 100% in 2006 and it increased by 1475% (1575-100) from the 2006 to
2007 than it increased by 117%(217-100) from the 2007 to 2008 and again it
increased by 100% (200-100) in the year 2008 to 2009 and again there is increase
by 67%(167-100) from the year 2009 to 2010.
TABLE-15
Table showing Premises from the year 2006 to 2010
(In Lakhs)
65
years Amount Percentage
2006 14.56 100%
2007 19.46 133%
2008 19.46 133%
2009 19.46 133%
2010 19.46 133%
Analysis
From the above table, the status of Premises on 2006 was Rs.1456782.00 which is 100% than in 2007 was Rs.1945800.00 that is indicates there was decrease by 33%(133-100), 2008 it was Rs. 1945800.00 there is increase in 33% (133-100) in Cash and in 2009and 2010 the premises was 33%(133-100) increase.
GRAPH-15
Graph showing the Premises of Textile Co-operative from the year
2006 to 2010
66
2005-06 2006-07 2007-08 2008-09 2009-100%
20%
40%
60%
80%
100%
120%
140%
100%
133% 133% 133% 133%
Percentage
Inference
Above graph indicates, Premises issued by Textile Co-operative bank ltd has 100%
in 2006, and it was increased by 33% (133-100) from the 2007 and then in the
year 2008, 2009, and 2010 was some increase of 33 %( 133-100).
TABLE-16
Table showing Furniture’s and Fixtures from the year 2006 to 2010
(In Lakhs)
67
year Amount Percentage2006 56.89 100%
2007 60.88 106%
2008 65.19 114%
2009 72.57 127%
2010 75.57 133%
Analysis
From the above table, the status of Furniture’s and Fixtures on 2006 was
Rs.5689584.00 which is 100% than in 2007 was Rs.6088312.48 that is indicates
there was increase by 6%(106-100), 2008 it was Rs.6519860.98 there is increase
in 14%(144-100) in furniture’s and Fixtures and in 2009 was Rs. 7257782.00 that
is 27% (127-100) can be increase and again in 2010 the Furniture’s and Fixtures
was Rs. 7557117.00 means there was increase by 33% (133-100) from the above.
GRAPH-16
Graph showing the Furniture’s and Fixtures of Textile Co-operative
from the year 2006 to 2010
68
2005-06 2006-07 2007-08 2008-09 2009-100%
20%
40%
60%
80%
100%
120%
140%
100%106%
114%
127%133%
Percentage
Inference
Above graph indicates, Furniture’s and Fixtures issued by Textile Co-operative
bank ltd has 100% in 2006, and it was increased by 6% (106-100) from the 2007
and then in 2008 was by 14% (114-100) it increase by 27% (127 -100) in the year
2009 and again by 33%(133-100) inceased in the year of 2010.
TABLE-17
Table showing other assets from the year 2006 to 2010
(In Lakhs)
year Amount Percentage
69
2006 265 100%
2007 346 130%
2008 604 228%
2009 493 186%
2010 437 165%
Analysis
From the above table, the status of Other assets on 2006 was Rs.26569007.00 which is 100% than in 2007 was Rs.346999415.05 that is indicates there was increase by 30%(130-100), 2008 it was Rs.60473740.84 there is increase in 128% (228-100) in Cash and in 2009 was Rs.49334708.13 that is 86% (186-100) can be increase and than in 2010 the Other assets was Rs.43779842.70 there is increase by 65%(165-100) from the above.
GRAPH-17
Graph showing the other assets of Textile Co-operative from the
year2006 to 2010
70
2005-06 2006-07 2007-08 2008-09 2009-100
2000
4000
6000
8000
10000
12000
70007500
90009500
11000
Estimated
Inference
Above graph indicates, Furniture’s and Fixtures issued by Textile Co-operative
bank ltd has 100% in 2006, and it was increased by 30% (130-100) from the 2007
and again in 2008 was increased by 128% (228-100) by 86% (186-100) in the year
2009 and then there was increase by 65%(165-100)in the year of 2010.
To study the trend of actual performance of various financial
parameters with reference to estimated performance.
Table-18
71
Table shows The Textile Co-operative bank as estimation on the
deposit from the year 2006 to 2010
(InLakhs)
Year Estimated Achieved
2006 7000 7265
2007 7500 7362
2008 9000 91632009 9500 9873
2010 11000 11569
Analysis
From the above table, the status of deposits on the year 2006 there estimation was 7000 lakhs the bank as achieved more than estimation. On the year 2007 the estimation was 7500 lakhs but bank as achieved less than estimated deposit. And in the year 2008, 9000 the bank achieved more than the estimated deposit in the year 2009 the bank as successful in achieving the estimation9500 lakhs and again in the year 2010 bank as achieved their 11000 lakhs estimation from above.
GRAPH-18
Graph showing the Textile Co-operative bank as estimation on the
deposit from the year 2006 to 2010
72
2005-06 2006-07 2007-08 2008-09 2009-100
50
100
150
200
250
300
350
400
450
250
300
350
400
450
303
338363
405437
Estimated Achieved
Inference
Above graph indicates, deposits that aim by the Textile Co-operative bank ltd has
7000 in 2006 in was achieved and in 2007 is 7500 but it does not achieved that ,
in year 2008, 2009 and 2010 it was achieved by the bank.
Table-19
Table shows the Textile Co-operative bank as estimation on the Reserve and Funds from the year 2006 to 2010
73
(InLakhs)
Year Estimated Achieved
2006 250 303
2007 300 3382008 350 3632009 400 405
2010 450 437
Analysis
From the above table, the status of Reserve and Funds on the year 2006 there estimation was 250 lakhs bank did not achieve it. In the year 2007 there estimation was 300 lakhs but bank successful in achieving. In the year 2008 also there aimed to achieve 350 lakhs bank has achieved it and again in the year 2010 bank was not successful in to achieve the estimated 450 lakhs Reserve and Funds.
GRAPH-19
Graph showing the Textile Co-operative bank as estimation on the
Reserve and Funds from the year 2006 to 2010
74
2005-06 2006-07 2007-08 2008-09 2009-100
50
100
150
200
250
300
350
400
450
250
300
350
400
450
303
338363
405437
Estimated Achieved
Inference
Above graph indicates, Reserve and Funds that aim by the Textile Co-operative
Bank ltd has 250 lakhs in 2006 aims to have reserve and Funds it was not
achieved and in 2007 is 350 lakhs as achieved that, in year 2008, 2009 than the
bank as successful in achieving the aims in the year 2010 bank does not achieved
the achieved the estimation.
Table-20
Table shows The Textile Co-operative bank as estimation on the loan and Advance from the year 2006 to 2010
(InLakhs)
75
Year Estimated Achieved
2006 3000 2830
2007 3500 3456
2008 4000 4408
2009 5500 5222
2010 6000 6017
Analysis
From the above table, the status of Loans and Advance on the year 2006 there estimation was 3000 lakhs the bank as not successful in achieving estimation. On the year 2007 the estimation was 3500 lakhs but bank as achieved less than estimated Loans and Advance. And in the year 2008, 4000 the bank as the achieved the estimated and again in the year 2009 the bank as achieved more than the estimation 5500 lakhs and again in the year 2010 bank as achieved their 6000 lakhs estimation from above.
GRAPH-20
Graph showing the Textile Co-operative bank as estimation on the
loan and Advance from the year 2006 to 2010
76
2005-06 2006-07 2007-08 2008-09 2009-100
1000
2000
3000
4000
5000
6000
7000
30003500
4000
55006000
2830
3456
4408
5222
6017
Estimated Achieved
Inference
Above graph indicates, loan and Advance that aim by the Textile Co-operative
bank ltd has 3000 in 2006 in was achieved and in 2007 is 3500 but it does not
achieved that , in year 2008 bank as successful in achieving but in the year 2009 it
was achieved less than the estimation and 2010 Bank aim was achieved.
Table-21
The table shows the 5 years Spread of Textile Co-operative bank.
(Amount in Lakhs)
Years Interest on income
Interest on Expenditure
Spread
77
2005-06 724.2 495 228.112006-07 820.7 543 277.662007-08 1161.9 869 291.942008-09 1346.3 639 706.672009-2010 1450.6 968 482.26
Spread = Interest on income – Interest on cost (Expenditure)
GRAPH- 21
Graph shows the 5 years Spread of Textile Co-operative bank.
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2005-06 2006-07 2007-08 2008-09 2009-20100
100
200
300
400
500
600
700
800
228.11277.66 291.94
706.670000000001
482.26
Spread
Inference
Above graph indicates of Spread by Textile Co-operative bank ltd have Rs. 22861189 in 2006, and it was increased by Rs. 27766973 from the 2007 and then in the year 2008 it was Rs. 29194202 in the year 2009 the average funds deployed was Rs. 70677929 and 2010 was some increased to Rs. 48261956.
Table-22
The table shows the Average Funds Deployed Of Textile Co-operative bank.
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(Amount in Lakhs )
Years Loans And Advances Average Funds Deployed
2005-06 2830.43 1415.17 2006-07 3456.15 1728 .072007-08 4411.76 2205.882008-09 5222.28 2611.142009-2010 6017.38 3008.69
GRAPH- 22
Graph showing the Average funds deployed Textile Co-operative from
the year 2006 to 2010
80
2005-06 2006-07 2007-08 2008-09 2009-20100
500
1000
1500
2000
2500
3000
3500
1415.17
1728.07
2205.88
2611.14
3008.69
Average Funds Deployed
Inference
Above graph indicates, Average funds deployed by Textile Co-operative bank ltd have Rs.141521723 in 2006, and it was increased by Rs. 172807810 from the 2007 and then in the year 2008 it was Rs.220588295 in the year 2009 the average funds deployed was Rs. 261114409 and 2010 was some increased to Rs. 300869098.
Table-23
The table shows the Interest on Income of Textile Co-operative bank.
(Amount in Lakhs)
81
Years Interest on Income Percentage2005-06 724.25 100%2006-07 820.72 113.3%2007-08 1161.92 160.4%2008-09 1346.31 185.8%2009-2010 1450.64 200.2%
GRAPH- 23
Graph showing the Interest on Income of Textile Co-operative bank from the year 2006 to 2010
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2005-06 2006-07 2007-08 2008-09 2009-20100%
50%
100%
150%
200%
250%
100.00%113.30%
160.40%
185.80%200.20%
Percentage
Inference
From the above graph the status of Interest on income of 2006 was 100% than in 2007 was indicates there was increase by 13.3%(113.3-100) 2008 it was there is increase in 60.4%(160.4-100) in interest on income and in 2009 was that is 85% (185-100) can be increase and than in 2010 the interest on income was there is increase by 100.2%(200.2-100) from the above.
Table-24
The table shows the Interest on Expenditure of Textile Co-operative bank.
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(Amount in Lakhs)
Years Interest on Expenditure Percentage 2005-06 495.62 100%2006-07 543.05 109.5%2007-08 869.98 175.5%2008-09 639.54 129.1%2009-2010 968.02 195.3%
GRAPH- 24
Graph showing the Interest on Expenditure of Textile Co-operative bank from the year 2006 to 2010.
84
2005-06 2006-07 2007-08 2008-09 2009-20100%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
100.00%109.50%
175.50%
129.10%
195.30%
Percentage
Inference
From the above graph indicates, the status of Interest on Expenditure on 2006 was 100% than in 2007 was indicates there was increase by 9.5%(109.5-100), 2008 it was there is increase in 75.5%(175.5-100) in interest on income and in 2009 was that is 29.1%(129.1-100) can be increase and than in 2010 the interest on income was there is increase by 95.3%(195.3-100) from the above
To bring out the strengths and weakness of Textile Co-operative Bank.
Strengths
85
The share capital of the Textile Co-operative bank is increasing year by year.
The Textile Co-operative bank has good progress in reserve funds.
The Textile Co-operative bank is achieving its aims and goals.
The team work of Textile Co-operative bank is very good.
The communication system and response for customer problem of Textile Co-operative bank is nice comparing to other banks.
The Textile Co-operative bank is competing with national banks.
The interest rate is high for deposit compare to nationalized banks.
Weakness
The Textile Co-operative bank has concentrated on loans and advances.
The Textile Co-operative bank having more than 1200 lakhs of deposit the profit earned is less compare to other banks.
The Textile Co-operative bank is not fully computerized.
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SUMMARY OF FINDINGS
The net profit is increased in the year 2006-2007 and in 2007-2008 their decrease and than in 2009 and 2010 its increased financial analysis.
The bank is not concentrated on leading loans and advances. In the year 2010 the bank has managed the financial analysis efficiently than in
any other years. The Textile Co-operative bank shows an increase profit in 2007 and decreased
profit in 2009.
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The bank has made investment in many banks and financial areas. The bank has started from long back and in present it has improved a lot. The bank interest level will fluctuates according to economy level and RBI
Decision. The bank share capital amount was increasing so from this we can know the
bank is running in a meaningful manner which implies profit.
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SUGGESTIONS
89
Bank should give advertisement about services provide by the bank in the way of Leaf letting.
The bank should introduce online banking. The bank should introduce ATM services. Bank has to reduce rate of interest on Educational loans. Bank should concentrate on mobilization of deposits through the innovative
deposit schemes. Bank should reduce the Premises cost.
Bank should introduce the website. Excess of cash should invest in call money on daily basis it will yield the
additional income to the bank.
Entry in to motor vehicle financeThe bank should make an aggressive entry to 2 wheelers and 4 wheeler financing which will help the bank to increase the profits and the public will come to know about the existence of the bank.
Fixing of targetsThe branch manager should be given target for both deposits and advances and they may be made accountable for recovery so that each bank makes profit centre.
Investment decisionIncrease functions like investment in government securities in debt instruments must be handled by well-qualified and experienced professionals so that investments won’t results in losses.
Flexible credit procedure and credit standards for each type segments should be framed and derived.
To increase profits, it can increase the scope of bills of exchange and re-discounting on bills of exchange and re-discounting on bills of exchange.
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Branch manager should be given targets for both deposits and advances and they may be accountable for recovery so that each branch
91
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CONCLUSIONS
In this study an analysis structure of the asset and liabilities of Textile Co-operative bank ltd. is made. The trend analysis of various item of balance sheet serves this purpose. The study reveals that the firm has growth substantially with respect to its total assets. The bank has the sound long term and short solvency.
The contribution of various assets towards the profitability of the branch is pound that contribution from the asset is increasing and some are not up to the standards requirement of the bank. The bank can make effective utilization of the funds keeping a high safety and liquidity of funds for present and future requirements. Various recommendations have been given with reference to that ratios and general. The bank may effective utilization of suggestions and converts the branch into a profit centre.
The overall working capital position of bank was fine for two three years and for two years it reduced because of improper management. But the overall financial position was fine.
Being these banks belongs to one particular local area that is ( Textile ).More promotional activity than in this locality to create the awareness about the bank and there offering.
93
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BIBLIOGRAPHY
S.L No Name of the author Title of book
1. B.S.Raman Business studies
2. P.N.Reddy, H.R.Appanaiah. Theory and practice of banking
3. R.K.Sharma, Shashi.K.Guptha. Financial management
WEBSITE
www.Google.com
www.wikipedia.com
www.answer.com
www.rbi.org.in
REPORTS
Annual reports of Textile Co-operative bank limited.
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