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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.

IMPORTANCE OF BANKS
The importance of banks cannot be denied. Banks plays an importance and significant role in economic development of a country. The economic importance of banks is as follows Banks plays a vital role in economic development of a country. Banks provides safety and security to surplus money and deposits. Banks influence the rate of interest in the money market. Banks direct the flow of the funds in to productive channels. It mobilizes funds from surplus to deficit place. Banks serve as the best financial intermediary between savers and Inventors Banks keep trade and commerce, industry and agriculture by meeting their financial requirements. Banks provide a convenient and economical means of payment. They create credit by lending several times the cash deposits they receive Banks influence employment, income and the general price level. These Banks are useful in several ways they are useful in many ways, can conclude that a strong and sound Banking system is indispensable for economic development of any country.

THE MOST IMPORTANT SERVICES OF BANKING The Goldsmiths

The Goldsmiths by virtue of dealing in facilities for the safe keeping of valuable. A person largely because of the danger of theft, started to leave their precious bullion and coin in the custody of goldsmiths. Goldsmiths began imposing charges for safe keeping services.

The Money lenders

The money lenders were men of means and reputations. They used to lend their surplus funds to the needy at high rates of interest and earned large income. The
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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 the characteristics 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

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 a joint 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 Bank

Commercial 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

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 Banks

Investments 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 Bank

Exchange 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 Bank

Land 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 the debentures. In India the land developments banks functions on co-operative basis.

5.

Central Bank

Central 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 for monetary 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 Banks

Co-operative Banks are promoted to meet banking requirements of consumers not 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.

STRUCTURE OF CO-OPERATIVE BANKING IN INDIA

Co-operative Credit structure Agricultural Credit

Short term and medium term

Long term

State Co-operative Bank, Primary credit societys

Central land development bank

Grain banks Primary Co-operative Banks Farmers services societies Large sized multipurpose Societies

Primary land development Banks

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 is developed to meet the firms objectives.
1. 2. 3. 4.

Acquisition and management of current assets for managing day to day operations. Managing merger, reorganization, expansion, and diversification. To meet expectation of stake holders. 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. 2.

Public finance 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 own 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 it self 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 noncommitted 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.

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. 2.

Continue or discontinue its main operation or part of its business.

Make or purchase certain materials in the manufacture of its product. Acquire or rent/lease certain machineries and equipments in the production 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 on various alternatives in the conduct of its business.

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1. 2. 3. 4. 5.

Contents
Goal Methods See also Notes External links

Goals

Financial analysts often assess the firm's

1. Profitability - its ability to earn income and sustain growth in both shortterm 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 parties in the long-term. 3. Liquidity - its ability to maintain positive cash flow, while satisfying immediate 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, without having 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 (the last 5 years for example) Future Performance - Using historical figures and certain mathematical and statistical 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 whenever possible. 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

1. 2. 3.

External links
Financial analysis definition, explanation and examples in simple terms SFAF - The French Society of Financial Analysts ACIIA - Association of Certified International Investment Analysts EFFAS - European Federation of Financial Analysts Societies

CO-OPERATIONAL DEFINITION OF CONCEPTS Financial 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 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. Assets Assets 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. Liabilities Are 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. Revenues Revenue 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. Expenses Expenses 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 Analysis In 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 Capital The 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 Worth Equity share capital, reserve and surplus less is the intangible assets (including losses). 8. Capital employed Is equal to total of fixed assets are reduced by current liabilities. 9. Fund The 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, expense financial 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 Account 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.

RESERVE BANK OF INDIAS PRESCRIPTION

For term loans It will be treated as a Non-performing asset, if interest or installments of principle remain past due for period of any two Quarters during the year, effective from the year ending 31st march 1988 and onwards.
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For cash credited and overdrafts A cash credit or an overdraft will be treated as Non-performing asset, if the account 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 remain overdue 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 any amount 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-operative Bank. To study the trend of actual performance of various financial parameters with 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, 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.

SOURCES OF THE DATA

Sources of data are classified into two types that are,

Primary data. Secondary data

Primary Data
An 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 the study 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 general information about their activities, Study of the classification of items adopted in profit and loss account and balance 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 and techniques, 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 financially sound organization, responsive to sate goals and aspirations. 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 cooperative 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 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.

ORGANIZATIONAL STRUCTURE OF THE PRAGATHI CO-OPERATIVE BANK LTD.

GENERAL BODY
(SHARE HOLDERS)

BOARD OF DIRECTORS

PRESIDENT

GENERAL MANAGER (ACTING) (CEO)

ASST. GENERAL MANAGER (OFFICER V)

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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. This tells the growth rate of the bank.

FUTURES PLANS OF THE BANK

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 the banking industry.
1.

COMPETATOR OF THE BANK

1. 2. 3.

All nationalized banks. Regional rural banks. 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 amount deposited 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 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.

3.

LOANS AND ADVANCES

Housing loan Secured and unsecured loans Vehicle loans Others

The bank has introduced many schemes that cater people.

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BANK CONSTITUTED THE FOLLOWING SUB-COMMITTEE SANCTION

1) 2) 3) 4) 5) 6) 7) 8)

Loan sub-committee Accounts arrears sub-committee Staff sub-committee Computer Audit Building 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 ones functional area only. Every Individual in the organization concentrates on only one function and services expert guidance and therefore efficiency of operation is high.

STANDARDS OF CONDUCT
The 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 different people. 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 a contract 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 and liberalize the finance for construction / renovation, acquisition of residential houses based on the repaying capacity of the borrow.

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Computation of Trend Percentages of Pragathi Co-operative Bank ltd To understand the financial performance of the Pragathi Co-operative bank. TABLE-1 Table shows the share capital from the year 2006 to 2010 (In Lakhs) year
2005-06 2006-07 2007-08 2008-09 2009-10

Amount
135.82 134.53 135.72 140.37 149.70

Percentage
100% 99.05% 99.92% 103.60% 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.

36

GRAPH-1 Graph showing share capital of Co-operative from the year 2006 to 2010

112% 110% 108% 106% 104% 102% 100% 98% 96% 94% 92% 2005-06 2006-07 2007-08 Percentage 2008-09 100% 99.92% 99.05% 103.60%

110.21%

2009-10

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.

37

TABLE-2 Table showing Reserves funds from the year 2006 to 2010 (In Lakhs) year
2006 2007 2008 2009 2010

Amount
58.00 64.56 69.60 75.51 82.81

Percentage
100% 111% 120% 130% 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.

38

GRAPH-2 Graph showing the Reserves and funds of Co-operative from the year 2006 to 2010

Percentage
160% 140% 120% 100% 80% 60% 40% 20% 0% 2005-06 2006-07 2007-08 Percentage 2008-09 2009-10 111% 100% 130% 120% 142%

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.

39

TABLE-3 Table showing the Deposits from the year 2007 to 2009 (In Lakhs) year
2006 2007 2008 2009 2010

Amount
1186.90 1236.49 1373.46 1739.76 2148.14

Percentage
100% 104% 115% 147% 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.

40

GRAPH-3 Graph showing the Deposits of Co-operative from the year 2007 to 2009

Percentage
200% 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% 2005-06 2006-07 2007-08 Percentage 2008-09 2009-10 100% 104% 115% 147% 181%

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

41

TABLE: 4 Table showing the Bills receivable as per contra from the year 2006 to 2010 (In Lakhs) year
2006 2007 2008 2009 2010

Amount
9.68 5.56 7.86 11.39 10.95

Percentage
100% 57% 81% 117% 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.

42

GRAPH-4 Graph showing the Bills receivable as per contra of Co-operative from the year 2006 to 2010

Percentage
117% 120% 100% 100% 80% 57% 60% 40% 20% 0% 1 2 3 Percentage 4 5 81% 113%

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
43

TABLE: 5 Table showing the Interest payables from the year 2006to 2010 (In Lakhs) year
2006 2007 2008 2009 2010

Amount
107.15 84.03 70.97 85.89 117.10

Percentage
100% 79% 66% 80% 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) .

44

GRAPH-5 Graph showing the Interest payables of Co-operative from the year 2006 to 2010

Percentage
120% 100% 79% 80% 60% 40% 20% 0% 2005-06 2006-07 2007-08 Percentage 2008-09 2009-10 66% 109% 100% 80%

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

45

TABLE-6 Table showing Over Drafts from the year 2006 to 2010 (In Lakhs) year
2006 2007 2008 2009 2010

Amount
62.24 65.39 63.09 82.57 94.89

Percentage
100% 105% 101% 132.6% 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).

46

GRAPH-6 Graph showing the Over Drafts of Co-operative from the year 2006 to 2010

Percentage
160% 140% 120% 100% 80% 60% 40% 20% 0% 2005-06 2006-07 2007-08 Percentage 2008-09 2009-10 100% 105% 101% 132.60% 152.40%

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).

47

TABLE-7 Table showing the Other Liabilities from the year 2006 to 2010 (In Lakhs) year
2006 2007 2008 2009 2010

Amount
13.01 8.65 10.15 5.41 5.87

Percentage
100% 66.5% 78% 41% 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% (41100) 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.

48

GRAPH-7 Graph showing the Other Liabilities of Co-operative from the year 2006 to 2010

Percentage
100% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2005-06 2006-07 2007-08 Percentage 2008-09 2009-10 41% 45% 66.50% 78%

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.

49

TABLE: 8 Table showing the Total Liabilities from the year 2006 to 2010 (In Lakhs) year
2006 2007 2008 2009 2010

Amount
1727.85 1773.48 1928.66 2339.90 2810.37

Percentage
100% 102.6% 111.6% 135% 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.

50

GRAPH-8 Graph showing the Total Liabilities of Co-operative from the year 2006 to 2010

Percentage
180% 160% 140% 120% 100% 80% 60% 40% 20% 0% 2005-06 2006-07 2007-08 Percentage 2008-09 2009-10 100% 102.60% 111.60% 135% 165.60%

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.

51

TABLE-9 Table showing Net Profit after Tax for the year 2006 to 2010 (In Lakhs) Year
2006 2007 2008 2009 2010

Amount
20.61 18.16 22.16 27.41 22.63

Percentage
100% 88% 107% 133% 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.

52

GRAPH-9 Graph showing the Net Profit after Tax of Co-operative from the year 2006 to 2010

Percentage
140% 120% 100% 80% 60% 40% 20% 0% 2005-06 2006-07 2007-08 Percentage 2008-09 2009-10 100% 88% 107% 133% 110%

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 2006 to 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.

53

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
2006 2007 2008 2009 2010

Amount
20.46 13.28 7.67 8.80 2.96

Percentage
100% 65% 37% 43% 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.

54

GRAPH-10 Graph showing the Cash of Co-operative from the year 2006 to 2010

Percentage
100% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2005-06 2006-07 2007-08 Percentage 2008-09 2009-10 14% 43% 37% 65%

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.

55

TABLE-11 Table Showing the Fixed Deposits from the year 2006 to 2010 (In Lakhs) Year
2006 2007 2008 2009 2010

Amount
475.00 515.01 480.17 666.25 768.78

Percentage
100% 108% 101% 140% 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.

56

GRAPH-11 Graph showing the Fixed Deposit of co-operative from the year 2006 to 2010

Percentage
180% 160% 140% 120% 100% 80% 60% 40% 20% 0% 2005-06 2006-07 2007-08 Percentage 2008-09 2009-10 100% 108% 101% 140% 162%

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 increased by 40% (140-100) in the year 2008 to 2009 and there was increased by 62%(162-100) from the year 2009 to 2010.

57

TABLE-12 Table showing Loans and Advances from the year 2006 to 2010

(In Lakhs)
year 2006 2007 2008 2009 2010 Amount 971.25 987.31 1069.02 1206.56 1592.53 Percentage 100% 102% 110% 124% 164%

Analysis
From the above table, the status of Loans and Advances on 2006 was Rs.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.

58

GRAPH-12 Graph showing the Loans and Advances of Co-operative from the year 2006 to 2010

Percentage
180% 160% 140% 120% 100% 80% 60% 40% 20% 0% 2005-06 2006-07 2007-08 Percentage 2008-09 2009-10 100% 102% 124% 110% 164%

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 increased by 24% (124-100) in the year 2008 to 2009 and there was increased by 64%(164-100) from the year 2009 to 2010.

59

TABLE-13 Table showing Investments from the year 2006 to 2010 (In Lakhs) Years
2006 2007 2008 2009 2010

Amount
228.24 240.24 82.37 271.34 360.64

Percentage
100% 105% 36% 119% 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.

60

GRAPH-13 Graph showing the Investments of Co-operative from the year 2006 to 2010

Percentage
158% 160% 140% 120% 100% 80% 60% 40% 20% 0% 2005-06 2006-07 2007-08 Percentage 2008-09 2009-10 36% 100% 105% 119%

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 to 2007 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.

61

TABLE-14 Table showing Interest Receivable from the year 2006 to 2010 (In Lakhs) year
2006 2007 2008 2009 2010

Amount
37.91 40.82 46.65 50.99 59.15

Percentage
100% 108% 123% 135% 156%

Analysis
From the above table, the status of Interest receivable on 2006 was Rs. 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.

62

GRAPH-14 Graph showing the Interest Receivables of Co-operative from the year 2006 to 2010

Percentage
156% 160% 135% 140% 120% 100% 80% 60% 40% 20% 0% 2005-06 2006-07 2007-08 Percentage 2008-09 2009-10 100% 108% 123%

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.

63

TABLE-15 Table showing Premises from the year 2006 to 2010 (In Lakhs) years
2006 2007 2008 2009 2010

Amount
58.97 56.02 53.22 50.56 47.10

Percentage
100% 95% 90% 86% 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.

64

GRAPH-15 Graph showing the Premises of Co-operative from the year 2006 to 2010

Percentage
100% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2005-06 2006-07 2007-08 Percentage 2008-09 2009-10 95% 90% 86%

80%

Inference
Above graph indicates, Premises issued by Pragathi Co-operative Bank ltd has 100% 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.

65

TABLE-16 Table showing Furnitures and Fixtures from the year 2006 to 2010 (In Lakhs) year
2006 2007 2008 2009 2010

Amount
10.74 9.67 8.37 7.55 7.47

Percentage
100% 90% 78% 70% 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 indicates there 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.

66

GRAPH-16 Graph showing the Furnitures and Fixtures of Co-operative from the year 2006 to 2010

Percentage
100% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2005-06 2006-07 2007-08 Percentage 2008-09 2009-10 90% 78% 70% 69%

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.

67

TABLE-17 Table showing other assets from the year 2006 to 2010 (In Lakhs) year
2006 2007 2008 2009 2010

Amount
5.69 4.95 5.13 1.97 5.70

Percentage
100% 87% 90% 35% 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.

68

GRAPH-17 Graph showing the other assets of Co-operative from the year2006 to 2010

Percentage
120% 100% 100% 80% 60% 40% 20% 0% 2005-06 2006-07 2007-08 Percentage 2008-09 2009-10 35% 87% 90% 100.10%

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.

69

 To study the trend of actual performance of various financial

parameters 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
2006 2007 2008 2009 2010

Estimated
1000 1300 1400 1500 2000

Achieved
1186.90 1236.49 1373.46 1739.76 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.

70

GRAPH-18 Graph showing the Pragathi Co-operative Bank as estimation on the deposit from the year 2006 to 2010

2500 2148.14 2000 2000 1739.76 1400 1373.46 1236.49 1500

1500 1186.9 1000 1000

1300

500

0 2005-06 2006-07 2007-08 2008-09 Achieved(In Lakhs) 2009-10

Estimated (InLakhs)

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.

71

Table-19 Table shows the Pragathi Co-operative Bank as estimation on the Reserve and Funds from the year 2006 to 2010 (InLakhs) Year
2006 2007 2008 2009 2010

Estimated
100 150 180 265 280

Achieved
58.00 64.56 69.60 75.51 82.81

Analysis
From the above table, the status of Reserve and Funds on the year 2006 there estimation 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.

72

GRAPH-19 Graph showing the Pragathi Co-operative Bank as estimation on the Reserve and Funds from the year 2006 to 2010

300

280 265

250 180 150 150 100 100 58 50 64.56 69.6 75.51 82.81

200

0 2005-06 2006-07 2007-08 2008-09 Achieved(In Lakhs) 2009-10

Estimated (InLakhs)

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.

73

Table-20 Table shows The Pragathi Co-operative Bank as estimation on the loan and Advance from the year 2006 to 2010 (InLakhs) Year
2006 2007 2008 2009 2010

Estimated
800 1000 1100 1400 1500

Achieved
971.25 987.31 1069.02 1206.56 1592.53

Analysis
From the above table, the status of Loans and Advance 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 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.

74

GRAPH-20 Graph showing the Pragathi Co-operative Bank as estimation on the loan and Advance from the year 2006 to 2010

1600 1400 1400 1206.56 1200 971.25 1000 800 800 600 400 200 0 2005-06 2006-07 2007-08 2008-09 Achieved(In Lakhs) 1000 987.31 1100 1069.02

1592.53 1500

2009-10

Estimated (InLakhs)

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.

75

 To bring out the strengths and weakness of Pragathi Cooperative Bank.

Strengths
The share capital of the Pragthi Co-operative Bank is increasing year by year. 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 cooperative banks. The Pragthi Co-operative Bank has one office in Bangalore.

76

77

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. In the year 2009 the bank has managed the financial analysis efficiently then in any other years. The Pragathi Co-operative Bank shows a decreased profit in 2007 and increased profit in 2009. The bank has invested in many areas and in 2006 it has invested in medium level 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 the bank is running in a meaningful manner which implies profit.

78

79

SUGGESTIONS
Bank should give advertisement about services provide by the bank in the way of 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 finance

The 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 targets
The 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 decision
Increase 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 should be framed and derived. To increase profits, it can increase the scope of bills of exchange and rediscounting 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

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CONCLUSIONS
In 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 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 (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
1. 2.

Name of the author

B.S.Raman B.S.Raman.

Title of book
Business studies Advanced financial accounting

3. 4.

P.N.Reddy, H.R.Appanaiah. R.K.Sharma, Shashi.K.Guptha.

Theory and practice of banking Financial management

WEBSITE www.Google.com www.wikipedia.com www.answer.com www.rbi.org.in

REPORTS Annual reports of Pragathi Co-operative Bank limited.

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