the project on pragathi bank

7/31/2019 The Project on Pragathi Bank

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PART-A

INTRODUCTION ABOUT BANKING SYSTEM

The development of Banking is evolutionary in nature. There is no single answer

to the question of what is banking. Because, a bank performs a multitude of

functions and services, which cannot be comprehended into single definition for

common men, a bank means a storehouse of money for a business. It is an

institution of finance and for a worker it may be a depositary for his saving.

EVOLUTION OF BANKING

Initially, the bankers, the Jews in Lombardy their business on benches in the

market place resembled the banking counter. If a banker failed, his Banque

[Bench] was broken up by the people; hence the word Bankrupt has come. In

simple terms, Bankrupt means a person who has lost all his money wealth or

financial resources.

THE ORIGIN OF THE WORD BANK CAN BE TRACED AS FOLLOWS

Bank: - German [Joint Stock fund]

Banco: - Italian [Heap of money]

Bancus /Banque: - French [Bench/Chest, a place where Valuable]

Bank: - English [common meaning prevalent today]

MEANING OF BANKING

The term banking as a accepting for the purpose of lending or investment of

deposit of money from the public repayable on demand or otherwise and

withdraw able by Cheques, draft and orders.


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money lenders borrowed money at lower rates of interest and lent it to the

needy at higher rates of interest. The difference between two interests

constituted the profits.

The Merchant Bankers

These people are originally traders in commodities. They were engaged in trade,

internal as well as external. In course of time, besides trading, they undertook the

financing trade, especially the foreign trade. Thus, the merchant who started as

trader in goods slowly developed as financials of foreign trade or banker.

It is clear that merchant bankers, money lenders and goldsmiths were largely

responsible for the development of modern banks. Modern banks posses thecharacteristics of all these ancestors like the merchant bankers, modern banks

finance foreign trade and use bills of exchange in their financing of foreign trade.

Like the money lender, modern banks accept their financing of foreign trade. Like

the money lender, modern banks accept deposits from those who have surplus

money to spare and lend the same to need for productive purposes.

Like the goldsmiths, modern banks provide to the depositors and a convenient

means of payment in the form of cheques and create money.

HISTORY OF BANKING IN INDIA

Banking was existence in India from very early times. The writings Manu and

Kautilya contained references to banking. But modern is that banking on western

banking on western lines started in India only from the begging of the 19th

century.

The Indian commercial banking system had to pass through a series of financial

crisis; its growth was very slow during the first half of the 20th century. Further

many banks during this period as a result of financial crisis. It is only after

independence, the Indian banking system has made a rapid progress. Today, the


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Indian banking system is one of the well developed commercial banking systems

in the world.

MEANING OF THE TERM BANK

The term BANK is derived from the German word BANCK which means ajoint

stock fund or a common fund that is a Heap of money raised from a large number

of the public.

They contended that the early European bankers raised a common fund or heap

of money from the public for the purpose of financing the need. As banks deal

with common funds or heaps of money raised from the public.

DEFINITION OF THE TERM BANK

The Indian Banking Companies Act of 1949 defines the term Banking Company

as any company which transacts the business of banking in India as Accepting

for the purpose of lending or investment, of deposits of money from the public,

repayable on demand or otherwise and withdraw able by Cheques, draft order or

otherwise.

CLASSIFICATION OF BANK

Banks are classified into several types based on the functions they perform. On

generally the banks are classified into

1. Commercial BankCommercial banks perform all the business transaction of a typical bank. They

accepted three types of deposited, fixed deposited and currents deposited, which

are repayable on demand.

Since the commercial banks are expected to meet immediate requirements of

depositors, they cannot invest credit overdrafts. They provide cheques facility


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and bank drafts for transfers of funds, safe guarding the valuable, discounting the

bills of exchange, collecting customers stocks shares etc.

2. Investments Bank or Industrials BanksInvestments banks or the bank, which provides funds on long term to industries,

is also known as industrial banks. These banks are socialized in providing long

term loans to industries with view to buy plant and machinery. This banks

underwrite are issued new shares and debentures of industrial company and also

purchase entire issues of new securities and late sell to be public at a higher

price. These banks play major role in economic developments of a country.

3. Exchange BankExchange banks are known as foreign banks or foreign exchange banks, which

provide foreign exchange for import trade. Their main function is to make

international payment through the purchases and sales of exchange of bills. They

convert home currency into foreign currency and vice versa. They discount

foreign exchange bills, which used in foreign trade.

These banks function like commercial banks, accepting deposit and lending funds

for investments. These banks required undertake the business with at most care.

4. Land Mortgage BankLand Development Banks, where the loans are given on long-term loans basis.

Modern land mortgage banks provide long- term loans on the security of the land

to initiate permanent improvements on the lands and to buy agricultural

machinery. The Central Mortgage Banks raise resources by means of selling

debentures the money markets. The government may also stand security to thedebentures. In India the land developments banks functions on co-operative

basis.


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5. Central BankCentral bank is the apex bank in the country, which brings the entire banking

system unified, controlled and regulated; the central bank is the main sources of

an efficient banking system in the country. The monetary policy of the country is

formulated and enforced by the central banks. These banks are responsible formonetary stability on the country. Central banking is a specialist monetary system

under which all other banking instruction have to function, it regulates the note

issue. The expansions and contraction of note issue are managed by central bank.

Every country has central banks. It is called as Reserve Bank in India.

6. Co-operative BanksCo-operative Banks are promoted to meet banking requirements of consumersnot only in urban areas. The Co-operative Bank functions like commercial bank

receiving deposits and lending money in rural areas. These banks supply finance

to agricultures, while in urban areas they provides finance to buy consumers

goods. They provide short and medium term loans. They are formed on the

Co-operative principle and as such they are more service oriented than profits

oriented than profits oriented. The Co-operative Banks provide credit at lower

rates of interest to people of small means, like small cultivators and artisans,

petty shopkeeper etc.


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STRUCTURE OF CO-OPERATIVE BANKING IN INDIA

Grain banks Primary land development Banks

Primary Co-operative Banks

Farmers services societies

Large sized multipurpose

Societies

Short term and medium term

State Co-operative Bank,

Primary credit societys

Central land

development bank

Co-operative Credit structure Agricultural Credit

Long term


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PART B

INTRODUCTION ABOUT THE SUBJECT

INTRODUCTION

Finance is regarded as the lifeblood of business enterprise. This is because in the

modern money oriented economy; finance is one of the basic foundation of all

economic activities. It is the master key, which provides access to all economic

activities. A well-knit financial system directly contributes to the growth of the

economy. An efficient financial system calls for the effective performance of

financial institution, financial instrument and financial markets.

Some consider that finance is concerned with acquiring funds on reasonable

terms and conditions to pay bills promptly and some other consider it as that

terms which is concerned with procurement of funds.

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 isdeveloped to meet the firms objectives.

1. Acquisition and management of current assets for managing day to dayoperations.

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.


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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 finance2. Private finance

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 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


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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 ownlimitations 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 it self involved in acommitment to spend

The volume of funds that should be committed by a firm on various type ofexpenditure

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 notmaterialize and a failure is to be averted.

FINANCIAL MANAGEMENT

Financial management is the operational activity of a business that is responsible

for obtaining and effectively utilizing the funds necessary for efficient operation.

Financial management is a subject with deals with the tools and techniques

through which a companys balance sheet is constructed. It offers ideas to the

executive in building items in liabilities and assets side of a balance sheet. It

clearly guides the financial manage to select both long term and short funds and

its allocation to capital and revenue expenditure, hence ultimately used as a

communication tool to convince the investors about the performance of a

corporate entity.

The ultimate objective of the subject financial management is to fulfill the basic

desires of the firms. In the broader concept it has to meet the requirement of not

only the shareholders. This is achieved through maintaining consistency of growth

in percentage of dividend and market value of shares. Following are some of the

important goals of financial management.


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SPECIFIC OBJECTIVES

Profit maximization wealth maximization

OTHER OBJECTIVES

Balanced asset structure Judicious planning of funds Financial discipline Liquidity Efficiency

Financial Analysis

Financial analysis refers to an assessment of the viability, stability and profitability

of a business, sub-business or project.

It is performed by professionals who prepare reports using ratios that make use

of information taken from financial statements and other reports. These reports

are usually presented to top management as one of their bases in making

business decisions. Based on these reports, management may:

1. Continue or discontinue its main operation or part of its business.2. Make or purchase certain materials in the manufacture of its product. Acquire or rent/lease certain machineries and equipments in theproduction of its goods.

3. Issue stocks or negotiate for a bank loan to increase its working capital.

4. Make decisions regarding investing or lending capital. Other decisions that allow management to make an informed selection onvarious alternatives in the conduct of its business.


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Contents1. Goal2. Methods3. See also4. Notes5. External links

GoalsFinancial analysts often assess the firm's

1. Profitability - its ability to earn income and sustain growth in both short-term and long-term. A company's degree of profitability is usually based on the

income statement, which reports on the company's results of operations.

2. Solvency - its ability to pay its obligation to creditors and other third partiesin the long-term.

3. Liquidity - its ability to maintain positive cash flow, while satisfyingimmediate obligations.

Both 2 and 3 are based on the company's balance sheet, which indicates

the financial condition of a business as of a given point in time.

4. Stability- the firm's ability to remain in business in the long run, withouthaving to sustain significant losses in the conduct of its business. Assessing a

company's stability requires the use of the income statement and the balance

sheet, as well as other financial and non-financial indicators.


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Methods Financial analysts often compare financial ratios (of solvency, profitability,growth, etc.

Past Performance - Across historical time periods for the same firm (thelast 5 years for example)

Future Performance - Using historical figures and certain mathematical andstatistical techniques, including present and future values, this extrapolation

method is the main source of errors in financial analysis as past statistics can be

poor predictors of future prospects.

Comparative Performance - Comparison between similar firms.These ratios are calculated by dividing a (group of) account balance(s), taken

from the balance sheet and / or the income statement, by another,

For example Net profit / equity = return on equity Net income / total assets = return on assets Stock price / earnings per share = P/E-ratio

Comparing financial ratios are merely one way of conducting financial

analysis. Financial ratios face several theoretical challenges.

They say little about the firm's prospects in an absolute sense. Their insights

about relative performance require a reference point from other time periods or

similar firms.

One ratio holds little meaning. As indicators, ratios can be logically interpreted in

at least two ways. One can partially overcome this problem by combining several

related ratios to paint a more comprehensive picture of the firm's performance.

Seasonal factors may prevent year-end values from being representative. A

ratio's values may be distorted as account balances change from the beginning to

the end of an accounting period. Use average values for such accounts wheneverpossible.

Financial ratios are no more objective than the accounting methods employed.

Changes in accounting policies or choices can yield drastically different ratio

values.


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They fail to account for exogenous factors like investor behavior that are not

based upon economic fundamentals of the firm or the general economy

(fundamental analysis).

See also Business valuation Fundamental analysis

Notes Financial Ratios

External linksFinancial analysis definition, explanation and examples in simple terms

1. SFAF - The French Society of Financial Analysts2. ACIIA - Association of Certified International Investment Analysts3. EFFAS - European Federation of Financial Analysts Societies

CO-OPERATIONAL DEFINITION OF CONCEPTS

Financial statementsFinancial statements contain summarized information of the firms financial

affairs organized systematically. These are the means of presenting financial

status of the firms to the users.

Two basic financial statements prepared for the purpose of external reporting to

owners, investors and creditors are,

Balance Sheet Profit and Loss Account


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It is the most significant financial statement. It indicates the financial conditions

or the state of affairs of a business at a particular moment of time; balance sheet

contains information about resources and obligations of a business entity and its

owners interest in the business at a particular point of time.

1. AssetsAssets represent economic resources. These are the valuable possessions owned

by the firm. This possession should be capable of being measured in monetary

terms. Assets are the future benefits fixed assets are used in business for more

than an accounting period of one year, while current assets are converted into

cash with an accounting period.

2. LiabilitiesAre the amount payables by the firm to the outsiders, liabilities are payable

within an accounting period are called current liabilities and those payable after a

year or so are called long term liabilities.

3. RevenuesRevenue is the value of goods or services supplied to the customers more

specifically; revenue is the gross inflow of assets or the gross decreases in

liabilities that result from a firms activities that change owners equity.

4. ExpensesExpenses occur when assets are consumed or liabilities are increased in order to

produce revenue, more specifically expenses represent a gross decrease in assets

or gross in liabilities.

5. Ratio AnalysisIn financial analysis, ratios as a bench mark for evaluating the financial position

and performance of a firm. Is a process of identifying the financial strengths and

weaknesses of the firm.

6. Working CapitalThe fund required for the actual running of any business or unit, the purchase of

raw materials for meeting the manufacturing, selling and administrative expenses

etc is termed as working capital. Working Capital is Life blood for business.


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7. Net WorthEquity share capital, reserve and surplus less is the intangible assets (including

losses).

8. Capital employedIs equal to total of fixed assets are reduced by current liabilities.

9. FundThe term Fund can be defined in 3 ways it may mean cash; working capital and

financial resources fund flow statement provide an analysis of changes in the

firms working capital.

10. Profit and loss account

Profit and loss account presents the summary of revenue, expensefinancial statements

Financial statements contain summarized information of the firms financial

affairs organized systematically. These are the means of presenting financial

status of the firms to the users.

Two basic financial statements prepared for the purpose of external reporting to

owners, investors and creditors are,

Balance Sheet Profit and Loss AccountIt is the most significant financial statement. It indicates the financial conditions

or the state of affairs of a business at a particular moment of time; balance sheet

contains information about resources and obligations of a business entity and its

owners interest in the business at a particular point of time.

RESERVE BANK OF INDIAS PRESCRIPTION

For term loans It will be treated as a Non-performing asset, if interest or installments ofprinciple remain past due for period of any two

Quarters during the year, effective from the year ending 31st march 1988and onwards.


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For cash credited and overdrafts A cash credit or an overdraft will be treated as Non-performing asset, if theaccount remains out of order for a period of any two quarters during the year,

effective from the year ending 31st march 1998 onwards.

For bills purchased Bills purchased should be treated as non-performing asset, if they remainoverdue and unpaid for a period of any two quarter during the year, effective

from the 31st march 1998 and onwards.

For other accounts Any other credit facility should be treated as non-performing asset, if anyamount to be received in respect of that credit facility remains past due (i.e. in

arrears) for a period of any two quarters during the year, effective from the year

ending 31st march 2003 onwards.


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TITLE OF THE PROJECT

A Study on financial statement analysis of Pragathi Co-operative Bank.

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 Pragathi Co-operative Bank.

Analysis of financial performance is one of the major requirements for planning.

Pragathi 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 Pragathi Co-operative Bank

by taking 5 years into consideration i.e., 2006-2010.

OBJECTIVES OF STUDY

To understand the financial performance of the Pragathi Co-operativeBank.

To study the trend of actual performance of various financial parameterswith reference to estimated performance.

To bring out strengths and weakness.


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SCOPE OF THE STUDY

It was taken up to know the financial activities in PRAGATHI 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, andcomparative statement analysis.

The study was made to analyze the financial performance with reference tofinancial 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.

SOURCES OF THE DATA

Sources of data are classified into two types that are,

Primary data. Secondary data

Primary DataAn investigator originally collects the data or agency for the first time for any

statistical investigation and used by them in the statistical analysis are termed as

Primary data.

Secondary Data

The data published or unpublished, which have already been collected and

processed by some agencies for their statistical work, work termed as secondary

data as far as second agency is concerned. The second agency if and when it

publishes and files such data, it becomes secondary data source to any one later

uses the data.


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This is related to collect the required information about the study. My source of

information is the data available with the bank by on going through the annual

reports.

The study basically relies on secondary data supplied by the bank. The primary

data used for the study consists of informal discussion interviews with the deputy

manager of the bank.

TOOLS AND TECHNIQUES

Analysis of annual reports Direct interview with official of bank and guide0 Analysis of secondary data

SAMPLING METHODS

Sampling method used in this project study relates to the financial figures,

covering the period from 2006-2010. Each data was already checked and verified

by the charted accountant; hence the data is straightaway taken for analysis. The

data is collected from the final account statements. Comparatively covers thestudy purpose no samples are required for the study as it is concerned with the

true financial data of the company.

METHOD OF STUDY

Discussion with the management of the company to get generalinformation about their activities,

Study of the classification of items adopted in profit and loss account andbalance sheet and the accounting policies of the concern.

Study of the annual reports for collecting data of 5 years. Analysis of their adopting techniques and methods available.


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LIMITATIONS OF THE STUDY

As the information collected for the purpose of project study is taken from the

financial statements published in the annual reports of the bank.

Since some information has to be kept secret as per the management policy of

the bank so, project study is limited to the extent of available information.

CHAPTER SCHEME

Following are the chapter schemes followed in the project work such as,

Chapter-1

Part-A Introduction to banking industry, Brief History of Bank, Growth of Bank,

Prospects of Bank

Part- B Introduction about the subject, About the Subject, Definition of term used,

Importance of the Study

Chapter-2

Research and design- title of the project, statement of the problem, object of the

study , scope of study, methodology, sources of data collection, tools andtechniques, limitations, chapter schemes.

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 Inference-the Table or data has to be analyzed and Inference, and

strengths and weakness.


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Chapter-5

Summary of Findings

Chapter-6

Suggestions & Conclusion

Chapter-7

Bibliography


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PROFILE OF PRAGATHI CO-OPERATIVE BANK LTD.

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 expectations they are supposed to fulfill their number,

and the number of offices they operate. 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

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 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.

According to NAFCUB the total deposits and lendings of Co-operative Banks is

much more than Old Private Sector banks & also the New Private Sector Banks.This exponential growth of co-operative banks is attributed mainly to their ability

to catch the nerve of the local clientele. Though registered under the

Co-operative Societies Act of the Co-operative Banks are also regulated by the

Reserve Bank of India. They are governed by the Banking Regulation Act 1949 and

Banking Laws (Co-operative Societies) Act, 1965.

BANK PROFILE

The Pragathi Co-operative Bank was started in 1972 with just few of members.

The bank has1 branch in the state serves the depositors and the account holders,

who exceed 1 lakhs in members.

Banking sector is under tremendous pressure, and is required to perform well due

to immense competition from various domestic and foreign banks. Profitability is


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one of the means by which the performance is measured. It is also meant to know

their strength and weakness.

The bank has 1 branch in Bangalore with own building. 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 fallows 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 end through

the formation of a democratically controlled organization.

RBI LICENSE NUMBER AND DATE

ACD: M.Y 26P, 10/03/1972 Malleshwaram.

Vision of the bank

They shall be the model of an effective, Protective, Dynamic and financiallysound organization, responsive to sate goals and aspirations.

They shall maintain highly trained and motivated professionals committedto the highest standards of ethics and excellence.

They shall contribute to building progressive and good standard of co-operative societies in the small business people.

Mission of the Bank

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-operation among the banksmembers, 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 poorgroups in the society.

ORGANIZATIONAL STRUCTURE OF THE PRAGATHI

CO-OPERATIVE BANK LTD.

BOARD OF DIRECTORS

PRESIDENT

GENERAL MANAGER

(ACTING) (CEO)

ASST. GENERAL MANAGER

(OFFICER V)

GENERAL BODY

(SHARE HOLDERS)


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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 Pragathi Co-operative Bank are 5045.

BOARD OF DIRECTORS (BOD)

At present, there are 13 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.C Channabasavaiah.R.C

VICE PRESIDENT: Sri H.C. Shadaksharappa

DIRECTORS

M.B.Patil G.Gubbanna C.L.Siddalingappa N.B.Virupakshappa K.C.Ramesh Mondhar B.M.Ganganna B.S.Renukaradhya Keshav.k.Hegde Nataraj Smt. Suneethamma


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MANAGER: G. Jagadesh

MANAGEMENT

Today living up to the ideals of the founding visionaries is the management at

Pragathi Co-operative Bank. The management includes dedicated professionals

who bring with them considerable amount of experience in the banking industry.

FEATURES OF 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 societys service and a 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 1972 with the share capital of Rs.1,00,000. The

bank has own building to operate the banking activists. The Net profit of the bank

in the year 2005 is Rs 12.99 lakhs. Now Net profit has crossed Rs 22.63 lakhs. Thistells the growth rate of the bank.

FUTURES PLANS OF THE BANK

1. To increase the deposits of the bank.2. To increase the facility of the lending loans to the members of the bank.3. To improve the status of the bank.4. To earn more profits by adopting the change those are taking place in thebanking 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 1972 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 amountdeposited more than one year.

Increased interest of 0.5% to institution. Demand draft facility at a discount rate for the main cities of the country.


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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

Pragathi 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 SHEMEIdeal 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\CIt 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.

3. LOANS AND ADVANCESThe bank has introduced many schemes that cater people.

Housing loan Secured and unsecured loans Vehicle loans Others


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BANK CONSTITUTED THE FOLLOWING SUB-COMMITTEE SANCTION

1) Loan sub-committee2) Accounts arrears sub-committee3)

Staff sub-committee

4) Computer5) Audit6) Building7) Annual8) General body members

ADVANTAGES OF THE ORANIZATIONAL STRUCTURE

It promotes logical division of work. Every functional head looks after one function only and therefore theworkload on top executives is reduced.

As a result of joint supervision, control becomes effective. Recruitment, Selection and Training of Managers is simplified because eachindividual is required to have knowledge of ones functional area only.

Every Individual in the organization concentrates on only one function andservices expert guidance and therefore efficiency of operation is high.

STANDARDS OF CONDUCTThe Pragathi 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 Employee privacy Open communication Employee development Compensation & benefits Towards Shareholders Good Return on Investments Protection of Assets


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Intellectual property Accuracy of records Share holder communication

SIGNIFICANT FACTORS OF SUCCESS Quality of services. Various forms of deposits and loans offered to suit the needs of differentpeople.

Customer friendly atmosphere maintained in the bank. Efficient and well -qualified employees. The banking hours facilitates business people.

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 acontract with the company.

To provide the middle / lower class people with cheaper finance. To keep in view the national policy attached to the housing sector andliberalize the finance for construction / renovation, acquisition of residential

houses based on the repaying capacity of the borrow.


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36

Computation of Trend Percentages of Pragathi Co-operative Bank ltd

To understand the financial performance of the PragathiCo-operative bank.

TABLE-1

Table shows the share capital from the year 2006 to 2010

(In Lakhs)

year Amount Percentage2005-06 135.82 100%

2006-07 134.53 99.05%

2007-08 135.72 99.92%

2008-09 140.37 103.60%

2009-10 149.70 110.21%

Analysis

From the above table, the status of share capital on 2006 was Rs. 1,35,82,500.00

which is 100% than in 2007 it was Rs.1,34,52,800.00 which indicate that there

was a decrease 1% (99-100) of and than in 2008 it was Rs.1,35,72,200.00 there is

decrease in 0.8% in share capital and in 2009 was Rs.1,40,37,600.00 that is 3.6%

(103.6-100) can be increase, and than in 2010 share capital was Rs.1,49,70,500.00

again it was increased10% (110-100) for from the above.


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37

GRAPH-1

Graph showing share capital of Co-operative from the year

2006 to 2010

Inference

Above graph indicates, Share capital issued by Pragathi Co-operative Bank ltd has

by 100% in 2006 and it decreased by 1% (99-100) from the 2007 to 2008 there

was some percent as increased by 3% (103-100) and again it was increased by 10

% (110-100) in the year 2010.

92%

94%

96%

98%

100%

102%

104%

106%

108%

110%

112%

2005-06 2006-07 2007-08 2008-09 2009-10

100%99.05%

99.92%

103.60%

110.21%

Percentage


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38

TABLE-2

Table showing Reserves funds from the year 2006 to 2010

(In Lakhs)

year Amount Percentage

2006 58.00 100%

2007 64.56 111%

2008 69.60 120%

2009 75.51 130%2010 82.81 142%

Analysis

From the above table, the status of Reserves and funds on 2006 was

Rs.58,00,386.09 which is 100% than in 2007 was Rs.64,56,553.23 it indicates, that

there is increased by 11%(111-100) its was increase to than in 2008 it was

Rs.69,60,429.23 that is there is increase in 20% (120 -100) in reserves and funds

and in 2009 was Rs.75,51,560.37 that is 30%(130-100) and than in 2010 it was

Rs.82,81,699.83 be increase by 42% (142-100) from the above.


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39

GRAPH-2

Graph showing the Reserves and funds of Co-operative from the year

2006 to 2010

Inference

Above graph indicates, Reserves and funds issued by Pragathi 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 30% (130-100) in the year 2008 to 2009 and again there is increase by

42%(142-100) from the year2009to 2010.

0%

20%

40%

60%

80%

100%

120%

140%

160%

2005-06 2006-07 2007-08 2008-09 2009-10

100%

111%120%

130%

142%

Percentage

Percentage


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40

TABLE-3

Table showing the Deposits from the year 2007 to 2009

(In Lakhs)


2006 1186.90 100%

2007 1236.49 104%

2008 1373.46 115%

2009 1739.76 147%

2010 2148.14 181%

Analysis

From the above table, the status of Deposits on 2006 was Rs.118690443.33 which

is 100% than in 2007 was Rs.123649537.00 it indicates, that there is increased by

4%(104-100) its was increase to than in 2008 it was Rs.137346458.00 that is there

is increase in 15% (115 -100) in Deposits and in 2009 was Rs.17,39,76,952.47 that

is 47%(147-100) and than in 2010 it was Rs. 214814522.35 be increase by 81%

(181-100) from the above.


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41

GRAPH-3

Graph showing the Deposits of Co-operative from the year 2007 to

2009

Inference

Above graph indicates, Deposits issued by Pragathi Co-operative Bank ltd has

100% in 2006 and it increased by 4% (104-100) from the 2006 to 2007 than it

increased by 15%(115-100) from the 2007 to 2008 and again it increased by 47%

(147-100) in the year 2008 to 2009 and again there is increase by 81%(181-100)

from the year2009to 2010

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

2005-06 2006-07 2007-08 2008-09 2009-10

100% 104%115%

147%

181%

Percentage

Percentage


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42

TABLE: 4

Table showing the Bills receivable as per contra from the year 2006 to

2010

(In Lakhs)


2006 9.68 100%

2007 5.56 57%

2008 7.86 81%

2009 11.39 117%

2010 10.95 113%

Analysis

From the above table, the status of Bills receivable as per contra on 2006 was

Rs.9,68,514.44 which is 100% than in 2007 was Rs.5,56,422.00 that is indicates,

there is d decrease by 42.6%(57.4-100) than in 2008 it was Rs.7,86,255.98 there is

decrease in 18.9% (81.1-100) and in 2009 was Rs.11,38,905.00 there is increase

that is 17.6%(117.6-100) and in the year 2010 that was Rs.1095975.00 increase

than in bills receivable as per contra and in it was13%(113-100) from the above.


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43

GRAPH-4

Graph showing the Bills receivable as per contra of Co-operative from

the year 2006 to 2010

Inference

Above graph indicates, Bills receivable as per contra issued by Pragathi

Co-operative Bank ltd has decrease by 42.6% (57.4-100) from the 2006 to 2007

and decrease by 18.9%(81.1-100) from the year 2007 to 2008 and in the year

2008 to 2009 there was increase of bills receivable by 17%(117-100) and again it

increased by 13% (113-100) in the year 2009 to 2010

0%

20%

40%

60%

80%

100%

120%

1 2 3 4 5

100%

57%

81%

117%113%

Percentage

Percentage


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44

TABLE: 5

Table showing the Interest payables from the year 2006to 2010

(In Lakhs)


2006 107.15 100%

2007 84.03 79%

2008 70.97 66%

2009

85.89 80%

2010 117.10 109%

Analysis

From the above table, the status of Interest payables on 2006 was

Rs. 1,07,15,587.00 which is 100% than in year 2007 was Rs.84,03,568.00 that

indicates, there is decrease by-21%(79-100) again in 2008 it was Rs.70,97,745.00

there is decrease by-34% (66-100) in interest payables and than in 2009 was

Rs.85,89,267.00 that is decrease -20%(80-100) in 2010 it was Rs.1,17,10,667.00

there was increase by -9%(109-100) .


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45

GRAPH-5

Graph showing the Interest payables of Co-operative from the year

2006 to 2010

Inference

Above graph indicates, Interest payables issued by Pragathi Co-operative Bank ltd

has in the year 2006 it was 100%, and it decrease by 21% (71-100) from the 2006

to 2007 than again there was decrease by 34%(66-100) from the 2007 to 2008

than in it decrease by 20% (80-100) and increased by 9% (109-100) in the year

2009 to 2010

0%

20%

40%

60%

80%

100%

120%

2005-06 2006-07 2007-08 2008-09 2009-10

100%

79%

66%

80%

109%

Percentage

Percentage


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46

TABLE-6

Table showing Over Drafts from the year 2006 to 2010

(In Lakhs)


2006 62.24 100%

2007 65.39 105%

2008 63.09 101%

2009 82.57 132.6%

2010 94.89 152.4%

Analysis

From the above table, the status of over drafts, on 2006 was Rs.62,24,111.85

which is 100% than in 2007 was Rs. 65,39,730.91 that is indicates, there is

increase by 5%(105-100) and in 2008 it was Rs.63,09,012.37 in 1% (101-100) in

over drafts, and in 2009 its was increase to Rs.8257360.58 by 32.6(132.6-100)

and 2010 it was Rs. 9489825.00 in again it was increase by 52.4(152.4-100).


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47

GRAPH-6

Graph showing the Over Drafts of Co-operative from the year 2006 to

2010

Inference

Above graph indicates, Over Drafts issued by Pragathi Co-operative Bank ltd has

100% in 2006, and it was increased by 5% (105-100) from the 2007 to 2008 and

again the value and amount in 2008 to 2009 was increased to 32.6%(132.6-100)

and than in 2009 to 2010 it was increase by 52(152-100).

0%

20%

40%

60%

80%

100%

120%

140%

160%

2005-06 2006-07 2007-08 2008-09 2009-10

100%105%

101%

132.60%

152.40%

Percentage

Percentage


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48

TABLE-7

Table showing the Other Liabilities from the year 2006 to 2010

(In Lakhs)


2006 13.01 100%

2007 8.65 66.5%

2008 10.15 78%

2009 5.41 41%

2010 5.87 45%

Analysis

From the above table, the status of Other Liabilities on 2006 was Rs.1301418.00

which is 100% than in 2007 was Rs.8,65,895.00 that is indicates there was

decrease by -33.5%(66.5-100), 2008 it was Rs.10,15,561.00 there is decrease in

22% (78-100) in Other Liabilities and in 2009 was Rs.5.41351.00 that is -59% (41-

100) can be decrease and again in 2010 the other liabilities was Rs.5,87,771.00

means there was decrease by 55%(45-100)from the above.


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GRAPH-7

Graph showing the Other Liabilities of Co-operative from the year

2006 to 2010

Inference

Above graph indicates, Other Liabilities issued by Pragathi Co-operative Bank ltd

has 100% in 2006, and it was decreased by 35% (65-100) from the 2007 and than

in 2008 was by 22% (78-100) it decrease by 59% (41 -100) in the year 2009 and

again by 55%(45-100) deceased in the year of 2010.

0%

10%

20%

30%

40%

50%

60%

70%

80%90%

100%

2005-06 2006-07 2007-08 2008-09 2009-10

100%

66.50%

78%

41%45%

Percentage

Percentage


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50

TABLE: 8

Table showing the Total Liabilities from the year 2006 to 2010

(In Lakhs)


2006 1727.85 100%

2007 1773.48 102.6%

2008 1928.66 111.6%

2009 2339.90 135%2010 2810.37 165.6%

Analysis

From the above table, the status of Total Liabilities on 2006 was Rs.172785886.51

which is 100% than in 2007 was Rs.177348145.31 that is indicates, there is

increase by 2%(102-100) in 2008 it was Rs.192866436.09 it was increased by

11%(111.6-100) and in 2009 was Rs.233990075.00 that is 35% (135-100) in total

liabilities and in 2010 was Rs.281037197.86 it was 65.6(165.6-100) can be

increase from the above.


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51

GRAPH-8

Graph showing the Total Liabilities of Co-operative from the year

2006 to 2010

Inference

Above graph indicates, Total Liabilities issued by Pragathi Co-operative Bank ltd

has in the year 2006 it was 100%, and it increase by 2% (102-100) from the 2006

to 2007 and there was increase in by 11%(111-100) from 2007 to 2008 and again

it increased by 35% (135-100) in the year 2008 to 2009 and there was increased

by 65%(165-100) from the year 2009 to 2010.

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

2005-06 2006-07 2007-08 2008-09 2009-10

100% 102.60%111.60%

135%

165.60%

Percentage

Percentage


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TABLE-9

Table showing Net Profit after Tax for the year 2006 to 2010

(In Lakhs)

Year Amount Percentage

2006 20.61 100%

2007 18.16 88%

2008 22.16 107%

2009 27.41 133%

2010 22.63 110%

Analysis

From the above table, the status of Net Profit After Tax on 2006 was

Rs.2061473.14 which is 100% than in 2007 was Rs.18.15676.63 that is indicates

there is decrease in 12(88-100) than in 2008 it was Rs.2215303.14 there was

increase by 7 % (107-100) and in 2009 was Rs.2741020.46 that indicate there

more increase by33% (133-100) in Net Profit After Tax , and again there was

increase that is 10% (110-100) in 2010 was Rs.2263231.98 from the above.


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GRAPH-9

Graph showing the Net Profit after Tax of Co-operative from the year

2006 to 2010

Inference

Above graph indicates, Net profit after issued by Pragathi Co-operative Bank ltd

has in the year 2006 it was 100%, and it decrease by 12% (88-100) from the 2006to 2007 and there was increase in by 7%(107-100) from 2007 to 2008 and again it

increased by 33% (133-100) in the year 2008 to 2009 and there was increased by

10%(110-100) from the year 2009 to 2010.

0%

20%

40%

60%

80%

100%

120%

140%

2005-06 2006-07 2007-08 2008-09 2009-10

100%

88%

107%

133%

110%

Percentage

Percentage


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54

Computation of Trend Percentages of Assets of Pragathi Co-operative

Bank Ltd

TABLE: 10

Table Showing the Cash from the year 2006 to 2010

(In Lakhs)

years Amount Percentage

2006 20.46 100%

2007 13.28 65%

2008 7.67 37%

2009 8.80 43%

2010 2.96 14%

Analysis

From the above table, the status of Cash on 2006 was Rs.2046122.35 which is

100% than in 2007 was Rs.1328441.85 that is indicates there was decrease by -

35%(65-100), 2008 it was Rs.767207.35 there is decrease in 63% (37-100) in Cash

and in 2009 was Rs.8.80249.35 that is 57% (43-100) can be decrease and again in

2010 the Cash was Rs.296821.00 means there was decrease by 86%(14-100) from

the above.


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55

GRAPH-10

Graph showing the Cash of Co-operative from the year 2006 to 2010

Inference

Above graph indicates, Cash issued by Pragathi Co-operative Bank ltd has 100% in

2006, and it was decreased by 35% (65-100) from the 2007 and than in 2008 was

by 63% (37-100) it decrease by 57% (43 -100) in the year 2009 and again by

86%(14-100) deceased in the year of 2010.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005-06 2006-07 2007-08 2008-09 2009-10

100%

65%

37%43%

14%

Percentage

Percentage


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56

TABLE-11

Table Showing the Fixed Deposits from the year 2006 to 2010

(In Lakhs)

Year Amount Percentage

2006 475.00 100%

2007 515.01 108%

2008 480.17 101%

2009 666.25 140%

2010 768.78 162%

Analysis

From the above table, the status of Fixed Deposits on 2006 was Rs47500551.00.

which is 100% than in 2007 was Rs.51501726.00 it indicates, that there is

increased by 8%(108-100) than in 2008 it was Rs.48017535.00 that there is

increase in 1% (101 -100) in Fixed Deposits and in 2009 was Rs.66625054.00 that

is 40%(140-100) and than in 2010 it was Rs.76878391.00 be increase by 62%

(162-100) from the above.


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57

GRAPH-11

Graph showing the Fixed Deposit of co-operative from the year

2006 to 2010

Inference

Above graph indicates, Fixed deposit issued by Pragathi Co-operative Bank ltd has

in the year 2006 it was 100%, and it increase by 8% (108-100) from the 2006 to

2007 and there was increase in by 1%(101-100) from 2007 to 2008 and again it


62%(162-100) from the year 2009 to 2010.

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

2005-06 2006-07 2007-08 2008-09 2009-10

100%108%

101%

140%

162%

Percentage

Percentage


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58

TABLE-12

Table showing Loans and Advances from the year 2006 to 2010

(In Lakhs)


2006 971.25 100%

2007 987.31 102%

2008 1069.02 110%

2009 1206.56 124%

2010 1592.53 164%

Analysis

From the above table, the status of Loans and Advances on 2006 wasRs.97125524.10. which is 100% than in 2007 was Rs.98731233.16 it indicates,

that there is increased by 2%(102-100) than in 2008 it was Rs.106902107 .00

there is increase by 10% (110 -100) in Loans and Advances and in 2009 was

Rs.120655984 that is 24%(124-100) and than in 2010 it was Rs. 159253108be

increase by 64% (164-100) from the above.


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59

GRAPH-12

Graph showing the Loans and Advances of Co-operative from the year

2006 to 2010

Inference

Above graph indicates, Fixed deposit issued by Pragathi Co-operative Bank ltd has

in the year 2006 it was 100%, and it increase by 2% (102-100) from the 2006 to

2007 and there was increase in by 10%(110-100) from 2007 to 2008 and again it


64%(164-100) from the year 2009 to 2010.

0%

20%

40%

60%

80%

100%

120%

140%160%

180%

2005-06 2006-07 2007-08 2008-09 2009-10

100% 102%110%

124%

164%

Percentage

Percentage


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60

TABLE-13

Table showing Investments from the year 2006 to 2010

(In Lakhs)

Years Amount Percentage

2006 228.24 100%

2007 240.24 105%

2008 82.37 36%

2009 271.34 119%

2010 360.64 158%

Analysis

From the above table, the status of Investments on 2006 was Rs. 22824799.77.

which is 100% than in 2007 was Rs. 24024799.77 it indicates, there is increased

by 2%(102-100) than in 2008 it was Rs. 8237816.77 there is decrease by 64%

(36 -100) in Investments and in 2009 was Rs. 27134566.77 that is 24%(124-100)

and than in 2010 it was Rs.36064466.77 be increase by 64% (164-100) from the

above.


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GRAPH-13

Graph showing the Investments of Co-operative from the year 2006

to 2010

Inference

Above graph indicates, Investments issued by Pragathi Co-operative Bank ltd has

in the year 2006 it was 100%, and it increase by 5% (105-100) from the 2006 to2007 and there was decrease in by 64%(36-100) from 2007 to 2008 and than

there is increased by 19% (119-100) in the year 2008 to 2009 and there was

increased by 58%(158-100) from the year 2009 to 2010.

0%

20%

40%

60%

80%

100%

120%

140%

160%

2005-06 2006-07 2007-08 2008-09 2009-10

100%105%

36%

119%

158%

Percentage

Percentage


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62

TABLE-14

Table showing Interest Receivable from the year 2006 to 2010

(In Lakhs)


2006 37.91 100%

2007 40.82 108%

2008 46.65 123%

2009 50.99 135%

2010 59.15 156%

Analysis

From the above table, the status of Interest receivable on 2006 wasRs. 3791964.00 which is 100% than in 2007 was Rs. 40,82,172.00 it indicates, that

there is increased by 8%(108-100) than in 2008 it was Rs. 46.65780.00 that there

is increase in 23% (123 -100) in Interest Receivable and in 2009 was

Rs.5099710.00 that is 35%(135-100) and than in 2010 it was Rs. 5915468.00 be

increase by 56% (156-100) from the above.


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GRAPH-14

Graph showing the Interest Receivables of Co-operative from the year

2006 to 2010

Inference

Above graph indicates, Interest Receivables issued by Pragathi Co-operative Bank

ltd has 100% in 2006 and it increased by 8% (108-100) from the 2006 to 2007

than it increased by 23%(123-100) from the 2007 to 2008 and again it increased

by 35% (135-100) in the year 2008 to 2009 and again there is increase by

56%(156-100) from the year2009to 2010.

0%

20%

40%

60%

80%

100%

120%

140%

160%

2005-06 2006-07 2007-08 2008-09 2009-10

100%108%

123%

135%

156%

Percentage

Percentage


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64

TABLE-15

Table showing Premises from the year 2006 to 2010

(In Lakhs)

years Amount Percentage

2006 58.97 100%

2007 56.02 95%

2008 53.22 90%

2009 50.56 86%

2010 47.10 80%

Analysis

From the above table, the status of Premises on 2006 was Rs.5897400.00which is

100% than in 2007 was Rs.5602530.00 that is indicates there was decrease by

5%(95-100), 2008 it was Rs.53,22,404.00 there is decrease in 10% (90-100) in

Cash and in 2009 was Rs.5056284.00 that is 14% (86-100) can be decrease and

again in 2010 the Premises was Rs.4710541.00 means there was decrease by

20%(80-100) from the above.


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65

GRAPH-15

Graph showing the Premises of Co-operative from the year 2006 to

2010

Inference

Above graph indicates, Premises issued by Pragathi Co-operative Bank ltd has100% in 2006, and it was decreased by 5% (95-100) from the 2007 and than in

2008 was by 10% (90-100) it decrease by 14% (86 -100) in the year 2009 and

again by 20%(80-100) deceased in the year of 2010.

0%

10%

20%

30%

40%

50%

60%

70%

80%90%

100%

2005-06 2006-07 2007-08 2008-09 2009-10

100%95%

90%86%

80%

Percentage

Percentage


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66

TABLE-16

Table showing Furnitures and Fixtures from the year 2006 to 2010

(In Lakhs)


2006 10.74 100%

2007 9.67 90%

2008 8.37 78%

2009 7.55 70%2010 7.47 69%

Analysis

From the above table, the status of Furnitures and Fixtures on 2006 was

Rs.1074047.95 which is 100% than in 2007 was Rs. 967212.95 that is indicatesthere was decrease by 10%(90-100), 2008 it was Rs.837990.95 there is decrease

in 22%(78-100) in Cash and in 2009 was Rs.755281.00 that is 30% (70-100) can

be decrease and again in 2010 the Furnitures and Fixtures was Rs. 747340.00

means there was decrease by 31% (69-100) from the above.


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67

GRAPH-16

Graph showing the Furnitures and Fixtures of Co-operative from the

year 2006 to 2010

Inference

Above graph indicates, Furnitures and Fixtures issued by Pragathi Co-operative

Bank ltd has 100% in 2006, and it was decreased by 10% (90-100) from the 2007

and than in 2008 was by 22% (78-100) it decrease by 30% (70 -100) in the year

2009 and again by 31%(71-100) deceased in the year of 2010.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005-06 2006-07 2007-08 2008-09 2009-10

100%

90%

78%

70% 69%

Percentage

Percentage


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68

TABLE-17

Table showing other assets from the year 2006 to 2010

(In Lakhs)


2006 5.69 100%

2007 4.95 87%

2008 5.13 90%

2009 1.9735%

2010 5.70 100.1%

Analysis

From the above table, the status of Other assets on 2006 was Rs.569007.00

which is 100% than in 2007 was Rs.4.95115.00 that is indicates there was

decrease by 13%(87-100), 2008 it was Rs.5.13018.00 there is decrease in 10%

(90-100) in Cash and in 2009 was Rs.1.97259.50 that is 65% (35-100) can be

decrease and than in 2010 the Other assets was Rs.570363.00 there is increase

by 01%(101.1-100) from the above.


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69

GRAPH-17

Graph showing the other assets of Co-operative from the year2006 to

2010

Inference

Above graph indicates, Furnitures and Fixtures issued by Pragathi Co-operative

Bank ltd has 100% in 2006, and it was decreased by 13% (87-100) from the 2007

and again in 2008 was by 20% (90-100) it decrease by 65% (35 -100) in the year

2009 and than there was increase by 0.1%(100.1-100)in the year of 2010.

0%

20%

40%

60%

80%

100%

120%

2005-06 2006-07 2007-08 2008-09 2009-10

100%

87%90%

35%

100.10%

Percentage

Percentage


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70

To study the trend of actual performance of various financialparameters with reference to estimated performance.

Table-18

Table shows The Pragathi Co-operative bank as estimation on the

deposit from the year 2006 to 2010

(InLakhs)

Year Estimated Achieved

2006 1000 1186.90

2007 1300 1236.49

2008 1400 1373.46

2009 1500 1739.76

2010 2000 2148.14

Analysis

From the above table, the status of deposits on the year 2006 there estimation

was 1000 lakhs the bank as achieved more than estimation. On the year 2007 the

estimation was 1300 lakhs but bank as achieved less than estimated deposit. And

in the year 2008, 1400 also the bank did not achieved the estimated deposit but

in the year 2009 the bank as achieved more than the estimation1500 lakhs and

again in the year 2010 bank as achieved their 2000 lakhs estimation from above.


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GRAPH-18

Graph showing the Pragathi Co-operative Bank as estimation on the

deposit from the year 2006 to 2010

Inference

Above graph indicates, deposits that aim by the Pragathi Co-operative Bank ltd

has 1000 in 2006 in was achieved and in 2007 is 1300 but it does not achieved

that , in year 2008, 2009 and 2010 it was achieved by the bank.

0

500

1000

1500

2000

2500

2005-06 2006-07 2007-08 2008-09 2009-10

1000

13001400

1500

2000

1186.9 1236.49

1373.46

1739.76

2148.14

Estimated (InLakhs) Achieved(In Lakhs)


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Table-19

Table shows the Pragathi Co-operative Bank as estimation on the

Reserve and Funds from the year 2006 to 2010

(InLakhs)


2006 100 58.00

2007 150 64.56

2008 180 69.60

2009 265 75.51

2010 280 82.81

Analysis

From the above table, the status of Reserve and Funds on the year 2006 thereestimation was 100 lakhs bank did not achieve it. In the year 2007 there

estimation was 150 lakhs but bank did not success in achieving. In the year 2008

also there aimed to achieve 265lakhs thay filed to achieve it and again in the year

2010t bank was not successful in to achieve the estimated 280 lakhs Reserve and

Funds.


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GRAPH-19


Reserve and Funds from the year 2006 to 2010

Inference

Above graph indicates, Reserve and Funds that aim by the Pragathi Co-bperative

Bank ltd has 100 lakhs in 2006 aims to have reserve and Funds it was not

achieved and in 2007 is 150 lakhs but it does not achieved that , in year 2008,

2009 and 2010 it was again not achieved by the bank.

0

50

100

150

200

250

300

2005-06 2006-07 2007-08 2008-09 2009-10

100

150

180

265280

58 64.5669.6 75.51

82.81



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Table-20

Table shows The Pragathi Co-operative Bank as estimation on the loan

and Advance from the year 2006 to 2010

(InLakhs)


2006 800 971.25

2007 1000 987.31

2008 1100 1069.02

2009 1400 1206.56

2010 1500 1592.53

Analysis

From the above table, the status of Loans and Advance on the year 2006 thereestimation was 1000 lakhs the bank as achieved more than estimation. On the

year 2007 the estimation was 1300 lakhs but bank as achieved less than

estimated Loans and Advance. And in the year 2008, 1400 also the bank did not

achieved the estimated Loans and Advance but in the year 2009 the bank as

achieved more than the estimation1500 lakhs and again in the year 2010 bank as

achieved their 2000 lakhs estimation from above.


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GRAPH-20


loan and Advance from the year 2006 to 2010

Inference

Above graph indicates, loan and Advance that aim by the Pragathi Co-operative

Bank ltd has 800 in 2006 in was achieved and in 2007 is 1000 but it does not

achieved that , in year 2008, 2009 and 2010 Bank aim was achieved.

0

200

400

600

800

1000

1200

1400

1600

2005-06 2006-07 2007-08 2008-09 2009-10

800

1000

1100

1400

1500

971.25 987.311069.02

1206.56

1592.53



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To bring out the strengths and weakness of Pragathi Co-operative Bank.

Strengths

The share capital of the Pragthi Co-operative Bank is increasing year byyear.

The Pragthi Co-operative Bank has good progress in reserve funds. The Pragthi Co-operative Bank is achieving its aims and goals. The team work of Pragthi Co-operative Bank is very good. The communication system and response for customer problem of Pragthi

Co-operative Bank is nice comparing to other banks.

The Pragthi Co-operative Bank is competing with national banks. The interest rate is high for deposit compare to nationalized banks.

Weakness

The Pragthi Co-operative Bank is filed to succeed in achieving the aims.The banking time different compare to nationalized banks.The Pragthi Co-operative Bank is not fully computerized.The Pragthi Co-operative Bank as less growth rate compare to other co-

operative banks.

The Pragthi Co-operative Bank has one office in Bangalore.


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SUMMARY OF FINDINGS

The net profit is increased in the year 2006-2007 and in 2007-2008 theirdecrease and than in 2009 and 2010 its increased financial analysis.

In the year 2009 the bank has managed the financial analysis efficiently then inany other years.

The Pragathi Co-operative Bank shows a decreased profit in 2007 andincreased profit in 2009.

The bank has invested in many areas and in 2006 it has invested in mediumlevel and in 2008 there is low level of investment than in 2010 its was high

investment.

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 thebank is running in a meaningful manner which implies profit.


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SUGGESTIONS

Bank should give advertisement about services provide by the bank in the wayof Leaf letting.

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 wont results in losses.

Flexible credit procedure and credit standards for each type segments shouldbe 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 andthey may be accountable for recovery so that each branch


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CONCLUSIONSIn this study an analysis structure of the asset and liabilities of Pragathi

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 substantiallywith 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 convertsthe 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 (Pragathi).More

promotional activity than in this locality to create the awareness about the bank

and there offering.


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BIBLIOGRAPHY

S.L No Name of the author Title of book

1. B.S.Raman Business studies

2. B.S.Raman. Advanced financial accounting

3. P.N.Reddy, H.R.Appanaiah. Theory and practice of banking

4. R.K.Sharma, Shashi.K.Guptha. Financial management

WEBSITE

www.Google.com

www.wikipedia.com

www.answer.com

www.rbi.org.in

REPORTS
http://www.google.com/http://www.answer.com/http://www.answer.com/http://www.google.com/

the project on pragathi bank

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