A

PROJECT REPORT

ON

“COMPARATIVE STUDY OF FINANCIAL REPORT

OF

TWO DIFFERENT BANKS OF INDIA”

SUBMITTED TO MUMBAI UNIVERSITY

IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE

MASTER OF MANAGEMENT STUDIES AND RESEARCH

(MBA)

Submitted By:

SHAIKH AHMED MOHD(Batch 2010-11)

Guided By:

Prof.______________________

GAHLOT INSTITUTE

OF

MANAGEMENT STUDIES AND RESEARCH

CERTIFICATE

This is certify that SHAIKH AHMED MOHD student of GAHLOT institute of management studies and research has completed his field

work report on the topic of

COMPARATIVE STUDY OF FINANCIAL REPORT OF TWO DIFFERENT BANKS OF INDIA

and has submitted the field work report in partial fulfillment of MMS of the college for the academic year 2010-2011.

He has worked under our guidance and direction. The said report is based on bonafide information.

Project guide name Prof. ______________

Designation Director

GAHLOT INSTITUTE

OF

MANAGEMENT

STUDIES AND RESEARCH

DECLARATION

I hereby declare that project titled

“COMPARATIVE STUDY OF FINANCIAL REPORT OF TWO DIFFERENT BANKS OF INDIA”

is an original piece of research work carried out by me under the guidance and supervision of _______________________.

The information has been collected from genuine & authentic sources. The work has been submitted in partial fulfillment of the requirement of

MMS to our college.

Place: Signature:

Date: Name of the students:

ACKNOWLEDGEMENT

“Perseverance inspiration and motivation have always played a key role in success of any venture”.

I hereby express my deep sense of gratitude to all the personalities involved directly and indirectly in my project work.

I would thank to God for their blessing and my parents also for their valuable suggestion and support in my project report.

I would also like to thank our friends and those who have helped us during this project directly or indirectly.

Last but not the least; I would like to express my sincere gratitude to all the faculty members who have taught me in my entire MBA curriculum

and our Director _______________ who has always been a source of guidance, inspiration and motivation.

However, I accept the sole responsibility for any possible errors of omission and would be extremely grateful to the readers of this project

report if they bring such mistakes to my notice.

SHAIKH AHMED MOHD

About Us

Founded on 21st May 1972, in a remote village in Kalwa (Thane District, Maharashtra), Gopinath Patil Parsik Janata Sahakari Bank enjoyed tremendous patronage right since the inception.

Under the leadership of Shri. Gopinath Shivram Patil and other founding directors, the bank flourished and expanded its reach to Thane, Navi Mumbai, Pune and Nashik.

With an inspiring deposit base more than Rs 1100 Crores, Gopinath Patil Parsik Janata Sahakari Bank is riding high on customer satisfaction and trust. What is even more heartening is that the bank has helped many to meet their financial needs.

Currently operating through 33 fully-equipped branches and 1 Extension Counters. Gopinath Patil Parsik Janata Sahakari Bank is getting ready for the next phase of rapid expansion.

• Board of Directors

No. Director's NameDesignation

1. Mr. Ranjit G. Patil Chairman

2.Mr. Devraj B. PatilVice- Chairman

3.Mr. Jayram K. Patil Director

4. Mr. Namdev B. Patil Director

5. Mr. Dashrath D. Gharat Director

6. Adv. P. C. Patil Director

7. Mr. Gopinath B. Patil Director

8. Mr. Prakash N. Patil Director

9. Mr. Narayan G. Gawand Director

10.Mr. Kayyum R. Cheulkar Director

11.Mr. Pandurang D. Bunde Director

12.Mr. Ravindra K. Patil Director

13.Mr. Rupaji S. Khulat Director

14. Mrs. Rajashree P. Patil Director

15.Mrs. Shashikala D. Patil Director

16.C.A. R. R. Lahoti Banking Expert

17. Mr. Kesarinath B. Gharat Banking Expert

History•

•• In the year 1971 the Government of Maharashtra acquired all

agricultural land of 68 villages of Thane-Belapur belt in Thane district of Maharashtra, for the purpose of setting up a new city i.e. “New Bombay”. Acquisition of land for New Bombay project means compulsorily depriving several thousands of people of their means of livelihood. Though Government was paying them money as compensation, but they were away their land which was the only mean of livelihood for them.

•• To equip the project affected persons and their family members

with strength and ability, to survive with new urban means of livelihood, it was necessary to provide them financial assistance. CIDCO (City Industrial Development Corporation) was established by Government of Maharashtra for the purpose of development of infrastructure and city of New Bombay. Development of infrastructure requires plenty of resources like men, machines, earthmover, vehicles & money.

•• The idea of formation of Urban Co-operative Bank for the area was

visualized in 1971 by a group of youngsters of Kalwa village, which is on the boundary of Thane – Belapur Belt. This group of youngsters were successful in running a Consumer Co-operative Society by name “Kalwa Consumer Co-operaive Society”. This group of youngsters, on their study-tour to Western Maharashtra, for study of co-operation, was fascinated by network and growth of cooperative societies and the role played by Urban Cooperative Banks in the development of that region.

• The group of youngsters called a meeting of residents from Kalwa and nearby villages when they came back from their study tour. They collect the Share Money in December 1971 for the formation

of the bank. Collection of share money was the most difficult task at that time. In a village where there were no banking facility available these youngsters started collection Rs. 50/- as contribution towards share capital. In year 1971 Rs.50/- was also a substantial amount, it took lot of efforts and hardship to collect the require numbers of members. In all 360 members came together for the formation of bank. The registration of “Parsik Janata Sahakari Bank Ltd.” was approved by Co-operative Department in the month of April, 1972, with registration number TNAK/BNK/160 dated 24th April, 1972. The first branch office at Kalwa Naka was opened on 21st May, 1972.The bank was named as “Parsik” because active jurisdiction of bank was the west side area of Parsik Hill, which has range from Kalwa to Belapur (the famous Parsik Railway Tunnel is situated in the same range). Parsik is also mean Parshwanath ( Lord Shiva), whose temple was existed on the hill as per history.

• The principles of cooperation always keeps community or society to the fore front. What ever is done through cooperation is done for the welfare and upliftment of the community. The board of parsik bank until now has undertaken following activities towards the betterment of the society –

• The founder of Parsik Janata Sahakari Bank Ltd. Mr. Gopinath Shivram Patil had initiated a proposal through their consumer co-operative society in October, 1985 to Forest Department, Pune. Through which they sought permission for a project, which included allotment of one hill, called Parsik Hill, which is situated nearby Kalwa Village and the well known Parsik Railway Tunnel passes through it, for plantation. Forest Department gave permission for the plantation on the Parsik Hill only after 1990. For last 20 years the work of plantation and other related activities like minor irrigation , forest conservation are going on. The employees of Parsik Bank with their Board of Directors has been regularly visiting the Parsik Hill , due to their hard work and

consistency the land admeasuring 70 hectare came under plantation. Once a barren hill is now covered with fifty to fifty – five thousand plants. The Board of Directors of Parsik Bank has taken tremendous efforts for last 20 years for this project , which is a huge successes. Other organizations has also started similar project by taking inspiration from Mr. Gopinath Shivram Patil.In the year 1988-89 Parsik Bank has been allotted one plot of land, adjoining to Kalwa bridge for development of garden by Thane Muncipal Corporation.

• At the request of CIDCO LTD. in the year 1993, Parsik Bank has undertaken the development of garden on 14 acres of land situated near Belapur in Navi Mumbai area. The said garden was also named as “Parsik Hill Garden”. The employees and members of Board has given their total commitment for the development of garden.

• Parsik Bank in the year 1998-99 has planted nearly 1200 plants in Kalwa – Vitawa region under scheme called “Clean Thane Green Thane”, which was initiated by Thane Muncipal Corporation. It also included decoration of one traffic island and building a bus stop.

• Other activities – Educational help – Medical help – Building of shed for funeral & other religious activities – Sports – Financial assistance to social organizations

• For last 28 years bank is retaining amount out of their net profit for charitable purpose. Generally 1% of net profit is appropriated for the charitable purpose.

• 6) Bank has maintained a fund called “Member Welfare Fund”. Every year a considerable amount is contributed to this fund out of net profit earned by the bank. At present the amount in Member Welfare fund is around 1.29 crore of rupees.

• Moments of Pride

• “ Congress Seva Dal” Navi Mumbai awarded – Seva – Bhushan Award in the year 1995-96.

• Maharashtra State Cooperative Banks Association awarded the “Best Urban Bank Padmabhushan Vasantdada Patil Award ” for three consecutive years 1996-97, 1997-98 and 1998-99.

• Parsik Bank got awards for three consecutive years ending 98-99 from Organization called “ Yuvak Mudra”, who organized competition in memory of Rajarambapu patil in regards with merit and principal of cooperative banks.

• Bris Indiglo has ranked Parsik Bank as follows in their survey – First Number in “Overall Ranking” in Thane District.

– Second Number in “Overall Ranking” in all over Maharashtra State.

– Fourth Number in “Safest Category”

Gopinath Patil Parsik Janata Sahakari Bank endeavours to be a world-class bank by continuously improving operational efficiency and enhancing customer delight.

Ambitions to the core, and in-sync with the emerging banking landscape, the bank aims to deliver a superior banking experience to its patrons. With work culture built on the four pillars of operational excellence, customer focus, product leadership and people, Gopinath Patil Parsik Janata Sahakari Bank strives

SERVICES

• CBS (Core Banking Services)

• ATM Service | SMS Banking

• Safe Deposit | Senior Citizens

• Service Charges

• CBS ( Core Banking Solution)

• Core Banking Solution (CBS) is networking of branches, which enables Customers to operate their accounts, and avail banking services from any branch of the Bank on CBS network, regardless of where he maintains his account. The customer is no more the customer of a Branch. He becomes the Bank’s Customer. Thus CBS is a step towards enhancing customer convenience through anywhere and anytime Banking.

•All CBS branches are inter-connected with each other. Therefore, Customers of CBS branches can avail various banking facilities from any other CBS branch located any where in the world. These services are:

•To make enquiries about the balance; debit or credit entries in the account.

• To obtain cash payment out of his account by tendering a cheque.

• To deposit a cheque for credit into his account.• To deposit cash into the account.• To deposit cheques / cash into account of some other person

who has account in a CBS branch.• To get statement of account• To transfer funds from his account to some other account – his

own or of third party, provided both accounts are in CBS branches.

• To obtain Demand Drafts or Banker’s Cheques from any branch on CBS – amount shall be online debited to his account.

• ATM (Automated Teller Machine) Service:-

The Bank's 17 ATM of 14 branches of the Bank are connected to Central ATM Switch at Data Center and Customers are able to do all the transactions through any of the Branches of the Bank in Thane, Navi Mumbai & Pune. By using ATM Customer can transfter their fund from one Branch account to Other Branch account by ATM Link Process.

• Safe Deposit Locker• Keep your valuables safe with Parsik Bank• Senior Citizen• 0.75% Additional Interest to Senior Citizen

• Service Charges

New Service Charges w.e.f. 1st June 2007

NoParticularsCharges8Cheque Return ChargesBC Inward by post

Inward Clearing

Outward ClearingRs 60/-

Upto Rs 1 lac – Rs 120/-Above Rs 1 lac - Rs 0.25% of the amount

Upto Rs 50,000/- – No chargesAbove Rs 50000 to Rs 1 lac - Rs 0.10% of the amount9O. B. C. CommissionUp to Rs 1000 – Rs 20/- + postageRs 5 per Thousand + postageMaximum Rs 1000/- + postage 10Bank Guarantee2.40% of guaranty amount 11Locker Charges (One time)

Locker Rent Rs 300/-

Applicable as per Size of locker 12Cheque purchase commissionRs 3 per Thousand 13Safe CustodyRs 50 per Month14LCMaximum Int. Rate on Loan plus 2% more15Solvency CertificateUp to Rs 2 lac – Rs 400/-

Above Rs 2 lacs – 0.20% of the amount

Maximum Rs 3000/- 16Pay Order / D D CancellationRs 30/-

» DEPOSIT SCHEME

Fixed Deposit

Recurring Deposit

Reinvestment Deposit

Monthly / Quarterly Interest Scheme

Fixed DepositInterest Rate

15 to 45 days4.50%46 to 90 days5.50%91 to 180 days6.00%181days to below 1 year7.00%1 year & below 18months7.75%18months & below 2 years 8.50%2 years upto 3 years8.25%Above 3 year 8.00%For senior citizen additional 0.75% Interest (On all Fixed Deposits above 1 year)

• Recurring depositInterest Rate

1 year & below 18months7.75%18months & below 2 years 8.50%2 years upto 3 years8.25%Above 3 years8.00%For senior citizen additional 0.75% Interest

• Reinvestment DepositInterest Rate

1 year & below 18months7.75%18months & below 2 years 8.50%2 years upto 3 years8.25%Above 3 years 8.00%For senior citizen additional 0.75% Interest

• Montly / Quarterly Interest Deposit

• LOANS

• Housing Loans | House Repairs

• Vehicle Loan | Car Loan

• Article Loan | Group Loan Scheme

• Term Loan For Business | Builders & Contractors

Housing Loans

Purpose:Purchase flat or Construction of HouseRate of interest:@ 10.50% p.a. upto Rs 25 lakhs for 5 years.:@ 11.00% p.a. upto Rs 25 lakhs for 5yr-15yr.:@ 11.00% p.a. above Rs 25 lakhs for 5 years:@ 11.50% p.a. above Rs 25 lakhs for 5yr-15yr.Eligibility:Individual.Security :Mortgage of Flat Purchased / House constructed Repayment:Maximum Upto 15 years.E. M. I. per Rs. 1 LakhRate of Interest10.50%11.00%11.50%5 years21492174219910 years-1378140615 years-11371168

Vehicle Loan

• NEW VEHICLE (Commercial Use)Rate of Interest:@ 12.00% p.a.Loan Amount :80% of Invoice Value + Registration Charges + InsuranceOLD VEHICLEIn case of Old Vehicle upto 5 years:50% of Agreement value or valuation whichever is less.Rate of Interest:Upto Rs 2 lakh @ 13.75 % p.a.Above Rs 2 lakh @ 15.00% p.a.Security:Vehicle & Salary/Income.Repayment :Maximum 5 years*Conditions Apply

• TERM LOAN FOR BUSINESS

• Purpose:Business Expansion

Purchasing Machinery Raw Material Setting New ProjectRate of InterestLOAN AMOUNT INTERESTMEDIUM TERM BUSINESS & SMALL SCALE IND.

• Upto Rs 50 Lacs13.50%ABOVE Rs 50 Lacs upto 3 crores13.00%ABOVE Rs 3 crore 12.00% Eligibility:Individual / Firm / Partnership Firm / Company etcLoan Amount:As per requirementMargin :30%**Conditions Apply

• TERM LOAN FOR BUILDERS & CONTRACTORS

• Purpose:Business Expansion Purchasing Machinery Raw Material Setting New ProjectRate of InterestLOAN AMOUNT INTERESTAny Amount15.00% Eligibility:Individual / Firm / Partnership Firm / Company etcLoan Amount:As per requirementMargin :30%*Repayment :Maximum 7 years.

Article Loan

• Purpose:Purchase of Furniture & Fixtures, Electronic / Consumable Appliances etc.Rate of Interest:@14% p.a.Eligibility:IndividualLoan Amount:Maximum upto Rs. 5 lacs.Margin:30% *.Security :Article / Furniture / Immovable PropertyRepayment:Upto 5 years.

Education loan

• To brighten the future of bright & committed students by extending financial assistance to pursue higher professional / technical courses studies in India & Abroad through Educational Universities / Institutes / Organisations of good reputation & recognition. ”

Purpose:Higher Education. Rate of Interest :Upto Rs. 10 Lacs @ 10% p.a.Above Rs. 10 Lacs & Upto Rs. 20 Lacs @11% p.aLoan Amount:Upto Rs. 10 Lacs for studies in India.Upto Rs. 20 Lacs for studies in Abroad. Security:Collateral security owned by Parents or Guarantor. 'Whole Life' Insurance Policy on the life of the student, for the amount of loan.Repayment :Max. 120 months, including moratorium period

• Professional Loan

• Criteria:DoctorAdvocate ArchitectCA & EngineerRate of InterestLOAN AMOUNT INTERESTUPTO Rs 10 Lacs12.50%ABOVE Rs 10 Lacs To Upto Rs 50 Lacs12.00%ABOVE Rs 50 Lacs12.50% Eligibility:Individual / Firm / Partnership Firm / Company etcLoan Amount:As per requirementMargin :30%**Conditions Apply

Last 10 Years Bank's Progress

(Rs in Lacs)

Year Share Capital Deposits Loans Asset Fund Customer Base Net Profits Dividend

1999 481.29 24556.88 9881.47 1892.06 27481 503.46 15%

-2000

2000-01

578.81 30893.94 12463.20 2335.54 31898 793.91 20%

2001-02

662.06 37418.04 13283.56 3311.01 36040 859.49 15%

2002-03

782.36 42406.84 14289.81 5100.09 39683 907.47 15%

2003-04

959.33 47979.21 18054.27 6475.50 43762 1059.89 15%

2004-05

1104.59 52042.79 21762.46 7925.91 46612 752.63 15%

2005-06

1254.05 59317.84 26310.61 8897.01 48505 1028.65 15%

2006-07

1457.17 70488.24 32340.40 10638.84 50871 468.28 15%

2007-08

1845.67 88013.54 45535.87 11406.69 54424 1540.16 15%

2008-09

2242.75 94341.95 55482.54 13336.83 58096 1743.26 15%