Jai sarasvati Mata ki, Om namah shivaye

A Project report on
COMPARTIVE ANALYSIS OF BALANCESHEET
AND
COMPARISON OF BRANCHES
OF
BAGHAT URBAN CO-OPRATIVE BANK
Submitted to:PUNJAB TECHNICAL UNIVERSITY
JALANDHAR
In partial fulfillment of the requirement for the
Award of the degree of
Master of Business Administration (MBA)
Submitted By:Monika Verma
Roll No.-9041325419
Session (2009-2011)

ARYAN BUSINESS SCHOOL

BANUR

PREFACE
A professional course like MBA is a launch pad for the management career. It is
not just oriented at congregation of the vast spread knowledge written by many
great authors from management field but this esteemed course aspires for
building managerial intelligence and the innovative capability among its
aspirants. Moreover it helps in realizing the welded realities of existing
corporate world outside the classroom. This is the great reason that every
management student requires the supplementation of their academic knowledge
through practical exposure with corporate world. In todays competitive and
dynamic world it has become very difficult for any organization to survive in
the market. Banks are striking hard for making a place for themselves in the
market & to overcome their competitors these days countless studies &
researches are conducted in various fields to contract a policy, which can lead a
company a head of its competitors.
In the present era of due to completion a lot of financial institutions and
innovative financial instruments are emerging to attain satisfaction of
customers. Banks are widening their coverage by adopting various strategies
like Mergers and Acquisition. It is sincerely hoped that the discrepancies noted
must be viewed in the light of limitations that exist in the way of study done by
student of degree course.

ACKNOWLEDGEMENT
It is gratefully acknowledged the kindness and assistance of all those who helped in
completing the project. The Management of ARYAN BUSINESS SCHOOL is applauded
with gratification for the much needed support in carrying out the project report. It is the
matter of privilege to bestow deep sense of gratitude and thanks to Mrs.PARVEEN
KATARIA for her constructive criticism, valuable suggestions and constant
encouragement at all the stages of development of the project. .I thank all the employees
of BAGHAT BANK for providing a conducive environment for the development of the
project and for extending the necessary facilities for the completion of the project.
Without the constant support and guidance of the above people, this project have not been
a success.

TABLE OF CONTENTS
CHAPTER

CONTENTS

PAGE NO.

NO.
5
CERTIFICATE

INTRODUCTION

COMPANY PROFILE

REVIEW OF LITERATURE
OBJECTIVES OF THE STUDY
RESEARCH METHODOLOGY
ANALYSIS OF BALANCE SHEET
(a).financial analysis
(b).ratio analysis.
DATA ANALYSIS AND ITS

9
10
11
12
29

INTERPRETATION
CONCLUSION AND RECOMMENDATIONS
BIBLIOGRAPHY

48

ANNEXTURE

CERTIFICATE
TO WHOM IT MAY CONCERN
Certified that Miss. MONIKA completed her training session of eight week from
1st June to 26th July, 2010 on comparative analysis of balance sheet & banking
services in the Baghat Urban Co-operative Bank Ltd., Solan.
The student successfully completed this training session.
MANAGING DIRECTOR
P.C KASHYAP

INTRODUCTION
The Banking Regulation Act,1949(as applicable to co-operative societies),which
had come into force from 1st March 1966,has vested the reserve bank with
various statuary power to control and supervision of the co-operative bank. the
power in regard to incorporation, management etc.of these banks, however
continue to vest in the registrars of co-operative societies of the states concerned:
further the provision of the B.R Act, 1949(as applicable to co-operative societies),
shall be in addition to, and not save as expressly provided in the act, in derogation
of any other law for the time being in force. This means that the co-operative bank
are required not only to comply with the provisions of the B.RAct, but also other
law applicable to them .in respect of matter specifically provided for in the B.R
Act. The provision of the said Act will prevail over the provision of the cooperative societies Acts.
The salient features of the some of the important section of the act and rules are as
under:
Sec.6: the forms of business in which the co-operative may engaged have been
specified in sec. 6.A bank can, however, undertake such as other business in
which the central govt.may by a notification in the official gazette specify under
clauses (0) of sec.6.of the act, as a form of business in which it is lawful for a cooperative bank to engage itself.
a) the govt. of India by a notification dated 12.12.1995,has specified hire
purchase and equipment leasing as form of business in which it is
lawful for a primary co-operative bank to engage.
b) The govt. of India by a notification has notified insurance as a form of
business, which may be undertaken by the co-operative banks.
Sec.18. A co-operative bank other than a scheduled state co-operative
bank/primary co-operative bank is required to maintain cash reserve with itself or
in other account (net balance) opened with the reserve bank or state bank of India
or state co-operative bank of the state concerned or with any other bank notified
by the central govt. not less then the 3% of DTL as on the last Friday of the
second
preceding fortnight and shall submit in prescribed form, a return to the reserve
bank on or before the 15th of the subsequent month showing the amount so held
on alternate Friday of the month. The bank notified under the sec.are the state
bank of India the state associated bank are the /nationalized bank. In the case of
primary co-operative bank, the cash reserve can be maintained in the central cooperative bank of the district concerned or in a central co-operative bank outside
the district provide the urban bank has its branch in the said district.

The balance held by the co-operative bank in current account with the state bank
of India or subsidiary bank or the nationalized banks shall be set off by the
balances held by the said banks with such co-operative bank and only the net
balance in the current account shall be regarded as cash reserve.

Sec.21.empower the reserve bank determines the policy in relation to advances to

be followed by the co-operative bank generally or by any co-operative bank in
particular. Under this section, the reserve bank may issue directive to co-operative
banks to generally, or to any co-operative bank in particular as to:
(a).the purpose for which advances may or may not be made
(b.)The margin to be maintained in respect of secured advances
(c).the maximum amount of advances or other financial accommodation, which
may be made by a co-operative bank to any one party.
(d).the maximum amount up to, which guaranteed may be given by a co-operative
bank on behalf of any one party.
(e).the rate of interest and other term and condition on which advances or other
financial accommodation may be made.
Sec.22.the co-operative bank which existing as on 1-3-1996, were required to
apply to the reserve bank for a license with in it he period of three months from
the commencement of the act. Such banks for permitted to carry on banking
business if license were granted to them or until they were inform that license
could not be granted to them. New banks should invariable obtain a license before
commencing banking business.
A co-operative bank which come into existence as a result of the division of any
other co-operative society carry on business, shall before the expiry of three
month from it so coming into existing ,apply in writing to the reserve bank, for a
license for carrying on banking business under this section.
Sec.23.state co-operative banks and the primary co-operative banks are required
to obtain prior permission of the reserve bank for opening new branshes.central
co-operative banks need not obtain such permission for opening branches with in
their areas of operation .with an advance copy of the application directly to the
reserve bank. Urban co-operative bank can however submit their application
directly to the reserve bank.
Sec.27.every bank is required to submit to the reserve bank of India a return in the
prescribed form and manner showing its assets and liability as at the close of the
business on the last Friday of every month or that Friday is a public holiday at the
close of the business on the preceding working day before the close of the month
succeeding that to which it relates.

COMPANY PROFILE
The bank was registered by Sh. Pitamber Singh, IAS the then Registrar
Cooperative Societies Shimla on 7th Sep,1970 and the Banks opening ceremony
was inaugurated by a great soul Late Raja Durga Singh, the emperor of The
Baghat State. There after it was brought under the purview of B R Act vides
Letter No. ACDBR-994/E-2(20)-70-72 on dated 27thMarch1972 and Registered
permanently vide RBI License No. UBD HP 1410 P on dated 9th May1997.
The Baghat Urban Co-operative Bank Ltd., has maintained its decades' tradition
of being the fastest growing Scheduled Co-operative Bank in Himachal. The
Indian banking industry is going through turbulent times. With the lowering of
entry barriers and blurring product lines of banks and non-banks since the
financial sector reforms, banks are functioning increasingly under competitive
pressures emanating from within the banking system, from non- banking
institutions, and from the domestic and international capital markets. In this era of
mature and intense competitive pressures, it is imperative that banks maintain a
loyal customer base. In order to achieve this and improve their market and profit
positions, many retail banks are directing their strategies towards increasing
customer satisfaction and loyalty through improved service quality. In the present
competitive Indian banking context, characterized by rapid change and
increasingly sophisticated customers, it has become very important that banks in
India Determine the service quality factors, which are pertinent to the customers
selection Process.

LITERATURE REVIEW
The Indian Banking system has seen sweeping changes over the years.
In the short span of time that they have been in existence, the leading new private
sector banks have truly revolutionized banking in India. There focus on
technology and customer convenience has brought about a paradigm shift in the
banking business. While Standard Chartered Bank today has built stable business
that it believes will deliver sustainable value to its stake holders, there are also
many existing opportunities for further growth.
There are some following studies which had already taken about the banking
industries they are as (in Arabian countries)
there have been numerous studies analyzed the efficiency of financial institutions.
Among these, ( Rangan N. and Grabowski,1988 ) use data envelopment analysis
to analyze technical efficiency in US banking into pure technical land scale
efficiency. ( Aly H., and Rangan 1990 ) extend this analysis to contain analysis of
allocative efficiency, and ( Field, 1990 ), ( Dark, 1992 ), ( Chu-Meiliu, 2001 ),
( Tser- Yieth Chen, and Tasi Yeh,1998 ), and ( Leigh D.,and Howcroft, B., 2002 )
have conducted some studies into banking efficiency.
industry. ( Jon R.Presely, 1992 ) concluded from his study that there is a need for
greater risk management in relation to more effective portfolio management, and
this requires a greater emphasisupon the nature of risk and return in bank asset
structure, and greater diversification of assets in orderto spread and reduce the
bank's risks.
(Arzu Tektas, and Gunay, 2005 ) discussed the asset and liability management in
financial crisis.

OBJECTIVE OF THE STUDY

The objective of the study is to analyze the balance sheet and make the difference
between two year balaces.and find how many balance is increased or decrease. the
difference is calculated in % age and in ratios .also find the growth in deposits,
depositors,advances,borrowers,income, expenditure working capital, share
capital, reserve fund and net profit.

10

RESEARCH METHODOLOGY

The research is based on quantitative as well as qualitative.

The part of quantitative research is more then the qualitative
research.
Secondary data is used to research
And it is in both term numerical term as well as theoretical
term.

11

ANALYSIS OF BALANCE
SHEET
AS ON
31-03-2008 TO 31-03-2009

12

FINANCIAL ANALYSIS OF BALANCE SHEET

LIABILITIES

AS ON

%AGE

31-03-08

PAID UP CAPITAL
3322343sh.of Rs.50/-each

AS ON

% AGE

31-03-09

20,000,000.00

1.362 %

20,000,000.00

1.083 %

15,650,300.00

1.065 %

16117150.00

0.73 %

16117150.00
RESERVE FUND &
OTHER
RESERVES/PROVISI
ONS
Statutory reserve fund
Building fund
Dividend equalization fund
Bad & doubtful debts reserves
Depreciation reserve fund
Investment fluctuation reserve
Contingent prov.against st. assets
Education fund
Charity fund
Common good fund

36,179,288.95
23,848,402.23
6,763,801.50
24,054,675.91
8,150,236.80
9,000,000.00
4,679,939.00
186,855.00
1,872,000.00
225,000.00

2.463 %
1.624 %
0.460 %
1.638 %
0.555 %
0.612 %
0.318 %
0.012 %
0.127 %
0.015 %

42,116,445.95
25,206,152.77
7,412,426.50
26,092,898.91
11,664,829.00
10,000,000.00
5,903,475.00
36,855.00
752,223.00
--

2.281 %
1.365 %
0.401 %
1.413 %
0.631 %
0.541 %
0.319 %
0.001 %
0.040 %
--

129,185,306.13
DEPOSITS & OTHER
ACCOUNTS
Current account(individual)
Saving bank(individual)
Mini deposits(DSS)(individual)
Fixed deposits (simple)
Fixed deposits(monthly)
Fix deposits(quarterly)
Fix deposits(multi benefit)
Fix deposits(locker)
Recurring deposits(individual)

19,316,277.39
200,238,627.2
39,839,175.00
70,692,231.10
85,124,795.00
23,370,864.00
871,704,348.9
1,105,450.00
10,138,188.00

1.315 %
13.63 %
2.713 %
4.814 %
5.797 %
1.591 %
59.36 %
0.075 %
0.690 %

18,888,512.81
222,080,103.89
57,469,972.00
69,321,737,10
101,267,978.00
42,877,654.00
1,133,769,938.39
1.151,414.00
13,849,318.00

1.023%
12.03%
3.113%
3.755%
5.486%
2.323%
61.427%
0.062%
0.750%

13

Special requiring schemes

Unclaimed deposits accounts
Cash credit (HYP.)credit balance
Demand limit(OD)credit balance

-25,261.45
899,762.78
677,355.45

0.001 %
0.061 %
0.046 %

2,939,930.00
-7,563,843.79
297,671.21

0.159%
-0.409%
0.016%

1,671,478,073.
19
BORROWINGS
Others

--

--

-3,441,205.00

-9,041,824.53

BILLS FOR
COLLECTION
Inward bills for collection(IBC)
outward bills for collection(OBC)

0.234 %

0.489%

9,041,824.53
BRANCH ADJUSTMENT
Branch adjustment

--

1,049,763.00

OVERDUE INTREST
RESERVE
Overdue interest reserve(PA)
Overdue interest reserve(NPA)

1,580,665.00
9,567,622.00

0.107 %
0.651 %

5,284,893.00
13,558,029.00

0.286%
0.734%

18,842,922.00
INTREST PAYABLE ON
Interest payable on S/B Account
Interest payable on R/D Account
Interest payable on mini deposits

510,585.00
221,017.00
679,148.00

0.03 %
0.014 %
0.044 %

555,956.00
173,317.00
865,438.00

0.028%
0.009%
0.045%

1,594,711.00
OTHER
LIABILITIES(specify
)
Pay order (banker cheque)
Dividend payable account

6,167,641.20
48,625.00

0.403 %
0.003 %

983,969.65
88,715.00

0.051%
0.004%
14

Dividend payable 2003-2007

Share application A/c
Provision for staff bonus
Advertisement fund
Pension fund
Shoolini Mela fund A/c

1,052,072.50
301,055.00
2,100,000.00
191,037.00
143,000.00
139,561.83

0.068 %
0.019 %
0.137 %
0.012 %
0.009 %
0.009 %

1,338,960.50
170,433.00
2,000,030.00
314,482.00
143,000.00
219,986.83

0.069%
0.008%
0.104%
0.017%
0.007%
0.011%

Cash adjustment
Sundries A/c
Legal fee payable

20,476.00
140,170.00
----------

0.001 %
0.009 %
--

35,406.00
459,980.00
69,192.00

0.001%
0.023%
0.003%

Arbitration fee payable

834,014.13

0.054 %

1,513,886.98

0.0078%

Over time payable

100,000.00

0.006 %

100,000.00

0.005%

Member walfare fund

1,330,000.00

0.086 %

1,760,000.00

0.091%

Service tax payable

----------

--

67,153.13

0.006%

Provision for leave encashment

500,000.00

0.032 %

1,00,000.00

0.052%

Discount rec. On govt. securities

--------

3,739,000.00

0.194%

14,031,195.76

PROFIT/EXCESS OF
INCOME OVER
EXPENSES
Profit(aggregate)2007

13,380,779.54 0.874 %

--

Profit(aggregate)2008

34,105,655.17 2.228 %

32,314,723.17

1.682%

Profit(aggregate)2009

-------------

27,093,728.42

1.410%

--

59,408,451.59
CONTINGENT
LIABILTIES***

GRAND TOTAL

70,105,462.00 4.581 %

78,172,798.00

1,530,297,
165.4
4

1,920,749,397.
20

4.069%

15

*** Entry for guarantee issued is not added in the total

ASSETS

AS ON

AS ON

31-03-2008

31-03-2009

CASH IN HAND
Cash in hand
Cash in ATM

17,346,132.31
153,500.00

1.13 %
0.01 %

5,052,515.57
213,700.00

0.263%
0.011%

5,266,215.57
BALANCE
WITH
BANKS
H.P State co-op.bankDelhi
H.P State co-op.bankShimla
Jogindra central coop bank-solan
Jogindra central coop bank-parwanoo
Union bank of Indiasolan
Oriental bank of
commerce- solan
State bank of Indiasolan
State bank of Indiaparwanoo
State bank of patialasolan
UCObank-solan
Punjab national banksolan
Punjab national bankparwanoo
Bank of Baroda-solan
HDFC bankchandigarh

747,128.60

0.048 %

1,261,657.60

0.065%

4,551,244.58

2.968 %

4,161,219.58

0.216%

625,627.00

0.040 %

807,583.83

0.042%

4,089,621.44

0.267 %

3,642,810.44

0.189%

1,354,073.00

0.088 %

34,120,232.80

1.776%

156,639.12

0.010 %

1,195,661.12

0.062%

1632.38

0.0001 %

1,357.38

0.00007%

3,182,361.01

0.207

469,978.15

0.024%

3,764,522.00

0.245 %

3,109,865.45

0.161%

7,107,965.35
971,351.06

0.467 %
0.063 %

5,054,478.24
1,474,054.06

0.263%
0.076%

3,747,549.40

0.244 %

2,922,049.27

0.152%

-1,325,869.42

-0.086 %

12,768,101.00
3,571,072.60

0.664%
0.185%

16

ICICI Bankpanchkula
ICICI Bank-solan
Axis bank ltd.panchkula
Axis bank ltd.-solan
Indusland ban-shimla
Indusland banpanchkula
Centurion bank of
Punjab

435,415.90

0.028 %

390,434.90

0.020%

0.242 %

2,100,000.00
776,507.40

0.109%
0.040%

-3,877,964.81
853,583.10

0.253 %
0.055 %

9,349,190.68
4,650,103.18
3,051,992.62

1.015%
0.242%
0.158%

1,412,376.30

0.092 %

--

-3,704,942.97

94,878,305.30
SLR
INVESTME
NTS
Apex bank
Invt.govt.securities(C
SGL)
SLR bonds

161,754,758.00
94,100,000.00

8.609 %
6.149 %

191,754,758.00
214,100,000.00

9.983%
11.146%

41,243,750.00

2.695%

33,018,750.00

1.719%

438,873,508.00
STATUTORY
RESERVE
INVESTME
NT
Oriental bank of
commerce-solan
State bank of Indiaparwanoo
UCO bank
Indusland bank
ICICI bank(FDR)
Reliance mutual fund
Fixed maturity
plan(FMP)
Axis bank-PKL(FDR)
IDBI bank-(FDR)
UTI mutual fund

537,844.00

0.035 %

597,997.00

0.031%

1,509,121.00

0.098 %

--

--

20,000,000.00
63,300,000.00
2,500,000.00
12,500,000.00
2,500,000.00

1.306 %
4.116 %
0.163 %
0.516 %
0.163 %

22,500,000.00
67,142,477.75
-35,843,450.32
--

1.171%
3.495%
-1.866%

1,000,000.00

0.052%

2,500,000.00
5,000,000.00

0.130%
0.260%

--5,000,000.00

-0.326 %

17

134,583,925.07
INVESTMENT
IN OTHER
COOP.SOCIET
IES
Investment in
share(JCCB)

1,000.00

0.0000
6%

1,000.00

28,204,750.00

1.843 %

28,204,750.00

0.00006%

OTHER
INVESTME
NTS
NON SLR BONDS

1.468%

28,204,750.00
LOANS AND
ADVANCE
S
Cash
credit(hypothetication
)
Building loan
Staff housing loan
Machinery loan
Vehicle loan
Consumable durable
loan
Personal loan
Staff advance
Loan against
FIX/RCD/DSS/
(FDRL)
Loan against
(NSC/KVP/LIC)
Demand limit Ag.fix
deposit(FOD)
Bill purchase &
discounted
Current deposit debit
balance

297,069,004.24

19.41 %

336,786,633.18

17.534%

335,135,897.16
6,888,138.20
38,641,534.34
36,308,660.93
51,383,028.04

21.90 %
0.450 %
2.525%
2.372%
3.557%

371,702,629.66
10,327,463.20
42,632,187.40
41,214,251.54
77,800,577.54

19.351%
0.537%
2.219%
2,145%
4.050%

22,420,754.70
1,044,095.40
49,081,048.00

1.465%
0.068%
3,207%

25,115,356.40
1,762,420.00
51,281,185.00

1.307%
0.091%
2.669%

6,290,758.00

0.411%

16,267,991.00

0.846%

73,050,001.35

4.773%

100,513,272.73

5.233%

17,618,186.00

1.151%

7,952,071.00

0.412%

39,942.00

0.002%

71,213.30

0.003%

18

1,083,427,251.95
INTREST
RECEIVAB
LE ON
Intt.recb.on.other
banks FDR
Intt.recoverable(OIR)
Intt.recoverable on
govt. sec.

16,975,607.85

1.109%

32,148,683.00

1.673%

9,567,622.00
2,234,230.00

0.625%
0.145%

13,558,029.00
4,728,751.00

0.705%
0.246%

50,435,463.00
BILLS
RECEB.BE
ING BILLS
FOR
COLLECTI
ON AS
PER
CONTRA
Inward bill receivable -(IBR)
Outward bill
3,441,205.00
receivable (OBR)

-0.224%

9,041,824.53

0.470%

9,041,824.53
BRANCH
ADJUSTM
ENT

9,478,388.76

0.619%

6,600,000.00
9,636,164.13

0.431%
0.629%

-----------

LAND AND
BUILDING
Land purchase(H.O)
Building(H.O)

6,600,000.00
9,636,164.13

0.343%
0.501%

16,236,164.13

19

FURNITURE &
FIXTURE
Furniture & fixture
Computer & its
peripherals

9,038,820.19
4,957,651.52

0.590%
0.323%

10,643,428.19
5,999,782.52

0.554%
0.312%

16,643,210.71
OTHER
ASSETS
Telephone security
deposit
Stationary stock
Clearing adjust.
(banker suspense)
Suspense central
RMC water tape
deposit
TDS (investment) A/c
Library 18,849.00
Premium paid on
govt. security
Income tax
refund(refundable)
Gas connection
deposit
Income tax(advance
paid)07-08
Advance income tax
paid08-09
Building work in
progress
Electricity deposit

48,655.00

0.003%

48,655.00

0.002%

834,367.49
800,000.00

0.054%
0.052%

890,397.81
----------

0.046%

110,479.93
500.00

0.007%
0.00003%

220,792.93
500.00

0.011%
0.00002%

6,113,206.60
18,849.00
7,770,725.00

0.399%
0.001%
0.507%

6,779,178.20
18,849.00
8,223,223.00

0.352%
0.0009%
0.428%

424,841.00

0.027%

771,087.00

0.040%

3,000.00

0.0001%

3000.00

0.014%

14,663,292.00

0.905%

11,000,000.00

0.572%

--

0.728%

-47,688.00

0.003%

14,000,000.00
1,144,403.00

0.059%

47,688.00

0.002%

43,157,778.94
CONTINGENT
LIABILITIE
S***
Customer liab.for
guarant issued

70,105,462.00

4.581%

78,172,798.00

4.069%

20

GRAND TOTAL

1,530,297,165.44

1,920,749,397.20

*** Entry of guarantee issued is not in the total.

RATIO ANALYSIS OF BALANCE SHEET

1. CURRENT RATIO:Current assets

= -------------------------Current liabilities

In 2008:CURRENRT ASSETS = cash+bank+stock+debtors+bills

receveable+short term investment + prepaid expenses.
= 17499632.3+41903867.44+NIL+NIL+3441205+28205750+NIL
TOTAL C.ASSETS=451050454.75

CURRENT LIABILITIES= Bank overdraft+creditors+bills

payables+outstanding expenses+short term loan+all the payable.
=NIL+NIL+3441205+NIL+NIL+1410750+2756006088.66
TOTAL C.Lia = 2760858043.66

451050454.75
CURRENT RATIO =-------------------------

=0.16%

2760858043.66

In 2009:CURRENT ASSETS = cash+bank+stock+debtors+bills

receveable+short term investment + prepaid expenses.

21

5266215.57+94878305.30+NIL+NIL+9041824.53+28205750+NIL
TOTAL C.A =137392095.4

CURRENT LIABILITIES= Bank overdraft+creditors+bills

payables+outstanding expenses+ short term loan+all the payable.
NIL+NIL+9041824.53+NIL+NIL+1594711+1833537497.08
TOTAL C.Lia =1844174032.61

137392095.4
CURRENT RATIO=----------------------- =0.07%
1844174032.61

2008

CURRENT
RATIO

0.16%

2009

0.07%

2. QUICK/LIQUID/ACID TEST RATIO:Quick assets

= -------------------------Current liabilities

In 2008:QUICK ASSETS=Current assets-stock-prepaid expenses

= 451050454.75+NIL+NIL
TOTAL QUICK ASSETS=451050454.75

CURRENT LIABILITIES= Bank overdraft+creditors+bills

payables+outstanding expenses+short term loan+all the payable.
22

NIL+NIL+9041824.53+NIL+NIL+1594711+1833537497.08
TOTAL C.Lia =2760858043.66

451050454.75
QUICK RATIO =------------------------- =0.16%
2760858043.66

In 2009:QUICK ASSETS=Current assets-stock-prepaid expenses

= 137392095.4 +NIL+NIL
TOTAL QUICK ASSETS=137392095.4

CURRENT LIABILITIES= Bank overdraft+creditors+bills

payables+outstanding expenses+short term loan+all the payable
=NIL+NIL+9041824.53+NIL+NIL+1594711+1833537497.08
TOTAL C.Lia =1844174032.61

137392095.4
QUICK RATIO =----------------------- = 0.07%
1844174032.61
2008
QUICK RATIO

0.16%

2009
0.07%

23

3. ABSOLUTE QUICK RATIO:ABSOLUTE QUICK ASSETS

----------------------------------------CURRENT LIABILITIES

IN 2008:ABSOLUTE QUICK ASSETS=Cash+bank+short term investment

=173476673.31+41903867.44+NIL
TOTAL A.Q ASSETS =215380540.75

CURRENT LIABILITIES= Bank overdraft+creditors+bills

payables+outstanding expenses+short term loan+all the payable.
= NIL+NIL+9041824.53+NIL+NIL+1594711+1833537497.08
TOTAL C.Lia =2760858043.66

215380540.75
ABSOLUTE QUICK RATIO=------------------------- =0.02%
2760858043.66

IN 2009:ABSOLUTE QUICK ASSETS=Cash+bank+short term investment

=5266215.57+94878305.30+NIL
TOTAL A.Q ASSETS =100144520.87

CURRENT LIABILITIES= Bank overdraft+creditors+bills

payables+outstanding expenses+short term loan+all the payable.
=NIL+NIL+9041824.53+NIL+NIL+1594711+1833537497.08
TOTAL C.Lia =1844174032.61
24

100144520.87
ABSOLUTE QUICK RATIO=------------------------ =0.05%
1844174032.61

2008

ABSOLUTE
QUICK
RATIO

2009

0.05%

0.02%

4. PROPERITORY RATIO:CAPITAL
----------------------TOTAL ASSETS

IN 2008:CAPITAL =35650300
TOTAL ASSETS=fixed assets+current assets+investment
= 30232635.84+451050454.75+404945473
TOTAL ASSETS=886228563.59

25

35650300
PROPERITORY RATIO=---------------------- =0.04%
886228563.59

IN 2009:CAPITAL =5266215.57
TOTAL ASSETS=fixed assets+current assets+investment
=32879374.84+137392095.4+573457433.07

TOTAL ASSETS=743728903.31
5266215.57
PROPERITORY RATIO=--------------------

=0.007%

743728903.31

PROPERITORY
RATIO

2008

2009

0.07%

0.04 %

5. CAPITAL GEARING RATIO:Equity share capital+reserve

-----------------------------------------------------------Long term loan+preference share capital
IN 2008:CAPITAL GEARING RATIO=

26

Nil+114960199.39
= ------------------------------

=0.12%

934971048.95 +Nil

IN 2009:NIL+129185306.13
CAPITAL GEARING RATIO=--------------------------------

=0.11%

1083427251.95+NIL
CAPITAL GEARING RATIO=

2008

CAPITAL
GEARING
RATIO

0.12%

2009

0.11%

6. FUNDED DEBT TO TOTAL CAPITALISATION:FUNDED DEBT

------------------------------------TOTAL CAPITALISATION

IN 2008:FUNDED DEBT=long term loan

27

TOTAL FUNDED DEBT. =934971048.36

TOTAL CAPITALISATION= long term loan+capital

=934971048.36+35650300
T.C=970621348.36

934971048.36
FUNDED DEBT TO TOTAL
CAPITALISATION=-------------------------970621348.36
=0.96%
IN 2009:FUNDED DEBT=long term loan
TOTAL F.D = 1083427251.95

TOTAL CAPITALISATION = long term loan+capital

=1083427251.95+16117150
T.C=1099544401.95

1083427251.95
FUNDED DEBT TO TOTAL
CAPITALISATION=-------------------------1099544401.95
= 0.98%

28

2008

FUNDED DEBT
TO TOTAL
CAPITALIS
ATION

0.98%

2009

0.96%

29

DATA ANALYSIS AND INTERPRETATION

30

COMPARATIVE STATEMENT SHOWING GROWTH OF

BRANCH WISE DEPOSIT AND NO.OF DEPOSITORS
TABLE NO.1

NAME OF THE

DEPOSITS (RS.IN LACS)

BRANCH
YEAR

31-0304

31-03-05

31-03-06

31-03-07

31-03-08

31-03-09

SOLAN

4789.00

5129.17

5771.16

7450.43

9226.90

11043.59

CHAMBAGHA
T

627.47

786.51

1136.53

1684.71

2255.72

3098.12

580.93

1030.70

1451.52

1748.70

2573.07

PARWANOO

368.94

FIGURE NO.1

31

TABLE NO.2

NO.OF DEPOSITORS
YEAR

31-03-04

31-03-05

31-03-06

31-03-07

31-03-08

31-03-09

SOLAN

24320

25213

26517

28967

31705

34532

CHAMBAGHA
T

3661

4645

5853

8645

9832

11291

PARWANOO

2171

3742

6916

8147

8532

11696

FIGURE NO.2

32

COMPARATIVE STATEMENT SHOWING GROWTH OF

BRANCH WISE ADVANCE AND NO. OF BORROWER

33

NAME OF THE

ADVANCES (RS.IN LACS)

BRANCH
YEAR

31-0304

31-03-05

31-03-06

31-03-07

31-03-08

31-03-09

SOLAN

3116.29

3433.15

4108.07

5457.00

6500.47

7362.58

CHAMBAGHA
T

554.12

612.59

799.98

1304.77

1709.95

1960.73

PARWANOO

243.36

520.74

725.77

1076.54

1139.69

1510.96

34

NO.OF BORROWERS
YEAR

31-03-04

31-03-05

31-03-06

31-03-07

31-03-08

31-03-09

SOLAN

1991

1995

2014

2043

2195

2131

CHAMBAGHA
T

427

471

589

614

835

772

PARWANOO

397

463

574

589

681

548

35

COMPARATIVE STATEMENT OF GROSS INCOME OF

VARIOUS BRANCHES
NAME OF THE

INCOME (RS.IN LACS)

BRANCH
YEAR

31-0304

31-03-05

31-03-06

31-03-07

31-03-08

31-03-09

SOLAN

664.03

681.92

673.63

793.67

1135.49

1618.72

CHAMBAGHA
T

59.94

82.74

101.79

147.35

245.41

307.33

PARWANOO

31.10

56.88

86.94

128.65

187.36

218.50

36

COMPARATIVE STATEMENT OF GROSS EXPENDITURE OF

VARIOUS BRANCHES
NAME OF THE

EXPENDITURE(RS IN LACS)

BRANCH
YEAR

SOLAN

CHAMBAGHA
T

PARWANOO

31-0304

31-03-05

31-03-06

31-03-07

31-03-08

31-03-09

523.64

525.49

525.39

674.98

891.31

1417.70

56.28

64.56

77.71

107.26

179.99

256.36

34.83

47.70

67.89

101.99

155.91

205.94

37

COMPARATIVE STATEMENT OF NET PROFIT OF VARIOUS

BRANCHES
NAME OF THE

NET PROFIT(RS IN LACS)

BRANCH
YEAR

31-0304

31-03-05

31-03-06

31-03-07

31-03-08

31-03-09

SOLAN

140.39

156.43

148.23

118.69

244.18

201.02

CHAMBAGHA
T

3.66

18.18

24.08

40.09

65.42

50.97

PARWANOO

-3.73

9.18

18.96

26.66

31.45

12.56

38

Progress chart of Deposits, advances &working capital since

1995 to 2009

39

Progress chart of Share Capital, Reserve Fund & Profit

since 1995 to 2009

40

House Loan
Purpose
Purchase of Residential accommodation like flats, bungalows, row houses, etc.
Construction of flat / house, bungalows, etc.
Addition / Alteration to the existing Residential accommodation.
Eligibility
Housing Loan can be availed by individuals, self employed, business man and
professionals who desire to purchase house/flat and has regular income to repay
the loan.
Disbursement of Loan Amount
Loan amount will be disbursed to the seller / builder of the house/flat. In case of
flat/house under construction from reputed Builders, amount will be disbursed in
stages depending on the progress of construction.
Loan Amount
The loan amount depends on the repaying capacity of the person and as per the
banks exposer limit.
Margin
30% (on agreement Value + Stamp Duty + Registration Fees + Amenities in Flat
if agreement for the same is registered)
Security
Prime
Flat / house proposed to be purchased
Collateral Not insisted upon
No Guarantor if co-owners are co-applicants
If Spouse / Parent is not co-owner of the property then, Spouse /
Guarantors Parent should be Guarantor irrespective of his / her income.
Parent would mean both Father & Mother and in absence of Father,
only Mother should be Guarantor and vice versa.
Guarantee
One or two solvent third parties depending on Loan amount.
Period of Loan
The prepayment period may be ranging from 60 months to 180 months.
Rate of Interest
Interest is calculated on daily products.
Interest is charged on monthly basis.
Interest rate -11.25%

Vehicle Loan

In the past, owning a car or two wheeler was matter of prestige and symbol of
ones standard of living. Due to economic development and availability of variety
41

of vehicles in the market, it has become a way of life. It leads to comfort of life
and helps a person in his profession and vocation. It increases ones efficiency and
income generation capacity. Realizing this need of the person, the Bank has
designed a loan scheme called Car Loan Scheme".
Eligibility
Any persons such as individuals, professionals, self employed and businessmen.
They may be individuals, proprietary Concerns, Partnership Firms, Joint Stock
Companies, etc.
Income
The income of the person should such that he is in a position to repay the amount
within the stipulated period.
Loan Amount
The loan amount covers the cost of the plant & machinery or movables as per
invoice in case of new vehicle ones and agreement value or market value
whichever is lower in case of second hand machineries after maintaining the
prescribed margin.
Margin
New Car/Jeep/Van
- 25% of invoice Value (Purchased from Authorized Dealer)
- + RTO one time taxes
Second Hand Car/Jeep/Van
- Up to 1 year Old 25% margin on Purchase Value or Insured Declared Value
whichever is less.
- More than 1 year & Upton 2 years Old- 25% margin on Purchase Value
or Insurance declared
Value whichever is less.
Security
Hypothecation of the vehicle to be purchased.
Guarantee
One or two solvent third parties depending on Loan amount.
Period of Loan
The prepayment period may be ranging from 60 months.
Rate of Interest: -9.5%

Education Loan
Education loan is granted for higher studies in colleges in India and abroad in any
educational field in college affiliated with recognized universities, medical
colleges, technical institutions, pharmaceutical colleges, Information Technology
etc, so that students from poor & middle classes as well as brilliant and needy
students can take advantages of the scheme. [The scheme will not cover any
correspondence course].
Eligibility
Any persons such as individuals, professionals, self employed, industrialists,
traders and businessmen and industrialists.

42

Income
It depends on the capacity to service the debt and also on limit of advance.
Loan Amount
Depends on the business turnover and also per party limit fixed by the Bank from
time to time.
Information of Education Loan
1

WHO WILL BE
APPLICANT

CO-APPLICANT

PURPOSE

LOAN AMOUNT

MARGIN

If student is minor, Parents / Guardian will be applicant/s. In

case of a major, student will be the applicant for the loan.
Parents/ Guardian of the student will be the Co-applicant. In
case of married Student, either Spouse or the Parent(s) /
Parents-in-law can be the co-applicant.
Inland- Diploma / Graduation / Post-graduation in various
streams in colleges affiliated with recognized Universities,
medical Colleges, Technical Institution, Pharmaceutical
Colleges, and Institutions for Information Technologies etc.
For Computer Certificate Courses in reputed Institutes (Part
Time or Full Time) approved by the Bank from Time to
Time.
Foreign- For Higher Education Abroad in any Faculty in
colleges affiliated with recognized Universities, Medical
Colleges, Technical Institution, Pharmaceutical Colleges, and
Institutions for Information Technologies etc.
The Scheme will not cover any correspondence course.
Inland Minimum Rs.10000/- & Maximum Rs. 10.00 lacs
Foreign Minimum - Rs.50000/- & Maximum Rs.20.00 lacs.
INLAND - 10% on Total Expenditure*
FOREIGN - 15% on Total Expenditure*
(Scholarship should be included in the margin)
NO MARGIN:
a) For loan amount up to Rs. 2 Lakhs
b) If 100% Collateral Security is offered in the form of
immovable property or Liquid Security.
*Total Expenditure includes Tuition fees, Term fees, Living
Expenses, Traveling, Cost of Books, Examination fees, etc.

RATE OF
INTEREST

REPAYMENT
PERIOD

MORATORIUM
PERIOD

12%
If course period is less than 3 Years - 84 Months (inclusive of
total moratorium period)
If course period is more than 3 years - 120 months (inclusive
of total moratorium period).
Course period + 6 months
(No moratorium period for Loan amount below Rs.1.00
43

lacs).
9

10

PENAL INTEREST 2 % p.a.

i)Loan Amount Upto Rs.2.00 Lakhs - No Collateral Security.

COLLATERAL
SECURITY

ii)Loan Amount Upto Rs.5.00 Lakhs -Tangible Securities

(Banks FDRs, Govt. Securities etc) or Movable Security
(Vehicle) or Immovable Property- Minimum 60%.
iii)Above Rs.5.00 Lakhs Tangible Securities (Banks
FDRs, Govt. Securities etc) or Movable Security (Vehicle)
or Immovable Property- Minimum 100%.
1. Two Guarantors.

11

12
13
14

SURETIES

2. In case where there is 100% Collateral Security in the

form of Immovable Property or Liquid Security, No
Guarantor required.
Life Insurance Policy of student in case of (Foreign
INSURANCE OF
Education) should be obtained. Such policy should be
STUDENT
assigned in favour of Bank.
Insurance of securities against risks of Fire, riots, etc., in
INSURANCE OF
name of Bank a/c borrower should be obtained (in case of
SECURITIES
Vehicle & Immovable Security).
5% of the sanctioned amount in case of Unsecured Loan up
SHARE LINKAGE to Rs.2.00 Lacs & 2.5% of the sanctioned amount in case of
Secured Loan.

Personal Loan
Some times, the borrowers need finance instantaneously and banks take time to
process the loan and disburse the loan after documentation. In order to overcome
this difficulty, the Bank lends money against the immovable property in the form
of Mortgage Loan.
Eligibility
Any persons such as individuals, professionals, self employed and businessmen
and industrialists They may be individuals, proprietary Concerns, Partnership
Firms, Joint Stock Companies, etc.
Income
The income of the person should such that he is in a position to repay the amount
within the stipulated period.
Loan Amount
2.5 times of the annual income as per the Income Tax Returns.
Security
Mortgage of immovable property
Guarantee
One or two solvent third parties guarantors.
44

Period of Loan
For salaried person - 10 years
For others - 7 years
Rate of Interest: 12%

Special Recurring Deposit Scheme

Under a Recurring Deposit account (RD account), a specific amount is invested in
bank on monthly basis for a fixed rate of return. The deposit has a fixed tenure, at
the end of which the principal sum as well as the interest earned during that
period is returned to the investor. Recurring Bank Account provides the element
of compulsion to save at high rates of interest applicable to Term Deposits along
with liquidity to access those savings any time. Since a recurring deposit offers a
fixed rate of return, it does not provide protection against inflation.
Maturity period
There is great flexibility in period of deposit with maturity ranging from 12
months, 36 months and 60 months.
Interest Rates
Period

INTEREST RATE

PROPOSED RATE (for Senior Commission

Citizen)
/Brokerage

FOR 12 months
5.50 %
6.00 %
1.00 %
FOR 36 months &
7.50 %
8.00 %
3.50 %
Above
Persons who can open the account
An account may be opened by:An individual
Joint Accounts (with any one (i.e. Joint, Either or Survivor, Former or Survivor)
Minor
Mode of payment
In Joint Accounts the payment will be made as under:
In joint account payment will be made jointly.
In either or Survivor A/C to any one
In Former or survivor a/c to former only if former is deceased the payment will be
made to survivor
To a guardian on behalf of a minor or a person of unsound mind, or
To a minor who has attained the age of twelve in his own name.
Deposits
Subject to the provisions of the rules of the Baghat Urban Co-operative Bank, a
depositor shall make 36 /60 monthly deposits in an account.
The amount of monthly deposit be a multiple of ten rupees, subject to a minimum
of ten rupees.
The first monthly deposit shall be made at the time of opening the account and the
amount of such deposit shall be the denomination of per months deposit. Each
subsequent monthly deposit shall be made before the end of the calendar month
and shall be equal to the first deposit.

45

Where a deposit is made by means of a cheque, pay order or demand draft, the
date of its presentation to the Baghat Urban Co-op. Bank limited shall be deemed
to be from the date of clearance.

(a) Mini Deposit Scheme

Objects of Mini Deposit Scheme
The Mini Deposit Scheme is introduced to encourage all section of the society to
inculcate saving habits by depositing a small amount from their day-to-day
earnings with the bank. Deposits are being collected by an authorized Collection
agent/sub-agent of the Bank from the doorstep of the customer.
Mini Deposit Account Opening Conditions
The Deposit Account may be opened:
By an individual/firm as per deposit rules.
Note: - A proprietor or a partner may open a Mini Deposit Account only in his
personal name.
By more than one person in their joint names :; the amount being payable to all of
them jointly or either or any one of them or the survivors amongst them, specific
instructions in this regard being required to be given in writing at the time of
opening the account.
By a minor jointly with a major.
By a minor over the age of 12 years in his/her own name provided he/she is able
to read & write and operate upon it personally and satisfactory proof of age is
furnished to the bank. The maximum balance to accumulate in such accounts will
be Rs. 1, 00,000/-.
More than one account cannot be opened in the same name in the same branch in
one day without the consent of the bank.
A Mini Deposit Account may be opened with any amount in multiples of Rs. 5/but with a minimum of Rs. 5/- and maximum of Rs.999/- the subsequent
remittances into the account may be made either through the authorized
Collection Agent or in person if desired.
Rules
A Mini deposit payable at any time is Rs. 5/- or multiples thereof. Deposits will
be accepted in cash only.
The agent /sub-agent shall take care to receive agreed per day installment
regularly. The collective collection of 3-5 days can be considered but above 5
days collective collection shall lead to deduction of commission on pro-rate basis.
The deposit will be withdrawn at end of the term subject to Rule 9 below.
Interest Rates
The deposit will carry simple interest as under :3.50 % p. a. for period upto One year,
5.00 % p.a. in case of deposit of one year to 3 years,
6.00 % p.a. in case of deposit above 3 years.
Conditions for Interest Rate
The amount of the interest due on the deposit will be credited to the depositors
account on maturity.

46

No interest will be paid if an account does not earn at least 50 paise by way of
interest on maturity.
The Bank may at its discretion allow closure of the account before maturity at the
request of the customer and with prior verification of the concerned agent/subagent. In such cases the interest payable will be as under:-

(b) Deposit Schemes

Baghat Saving Deposit Scheme
Now you can earn a higher income on your surplus funds by investing those with
us. We provide security, trust and competitive rate of interest.
Flexibility in choosing the amount you wish to invest and the maturity period.
Affordable Low Minimum Deposit Amount: You can open a term deposit with
SBI for a nominal amount of Rs.500/- only.
Flexibility in period of term deposit from 15 days to any years.
Rate of Interest: 9% with quarterly rests.
Interest is taxable

Savings Deposits
Rate of Interest on Savings Account is 3.50%.

Term Deposit
We are offering the following interest rates to the deposits, as on 15th July, 2009
Interest Rate Chart
PERIOD OF TERM DEPOSITS

INDIVIDUAL/Co.Op.Hsg
& Trust

SR. CITIZEN

15 to 30 days

4.00%

4.50%

31 to 90 days

4.25%

4.75%

91 to 180 days

5.25%

5.75%

181 to Less than 12 months

6.00%

6.50%

12 to 24 months

7.25%

7.75%

24 to 36 months

7.25%

8.25%

36 months to 60 months

8.00%

9.00%

above 60 months

8.00%

9.00%

On premature of deposit 1% penalty shall imposed on interest applicable for the period

Interest Rates to Senior Citizens

0.50% higher interest shall be payable to Senior Citizen on deposit for the period
upto 2 years.

47

1.00% higher interest shall be payable to Senior Citizen on deposit for the
period above 2 year.
0.25% higher interest shall be payable to widows/ex-service man/ Registered
Cooperative Societies on deposit for the period 1 year and above.
Discretion to pay Extra Interest on Huge Amount
The Managing Director/Deputy Manager may allow extra interest on the single
deposits of Rs. 15.00 Lac or above as under:
0.25% on the Deposit invested for 6 months & above.
**Only one benefit mentioned under Para 2(a) & 2(b) will be applicable to
customer.

(c) Special Recurring Deposits

Interest Rates on special recurring Deposits
Period

Interest Rate

Interest Rate (Senior

Citizen)

12 Months - 24
Months

5.50%

6.00%

Above 24 Months

7.50%

8.00%

(0.50 extra interest rate for Sr. Citizens )

Term & Conditions
Citizen who attains the age of 55 years and above shall be treated as Senior
Citizen.
Ensure the AGE PROOF for those availing facility of higher interest in Senior
Citizen category.
No joint account in the case of Senior Citizens except husband & Wife.
Extra interest of 1 % shall be paid to staff & additional rate of Senior Citizen shall
be paid extra to staff eligible for senior citizen benefit.
On Loan against Banks own Deposit as under:
If loan raised by the depositors himself/herself 1 % extra interest shall be
applicable.
If loan raised by a person on third party deposit 2 % extra interest shall be
applicable.

. Interest Rates
The Baghat Urban Co-operative Bank Ltd., is offering the following interest for
the various loans and advances schemes Loan for Housing
Type of Loan
Amount Limit
Int. Rates
Loans up to Rs. 10 Lac to individual,
granted for the purpose of construction Up to Rs. 5,00,000.00
10.25 %
be considered as priority sector advance

48

Loan upto Rs. 50,000/- for repair

addition alteration would be reckoned as Above Rs. 5,00,000.00
11.00 %
priority Sector advances
Assistance granted to any Govt. agency NOTE
for the purpose of construction of house In case of term loan(including
exclusively for the benefit of SC/ST
house loan) a moratorium period of
where the loan component does not
12 months is granted, in such cases
exceed Rs. 5 Lacs per unit and all
12 cheques be obtained from the
advances for slum clearance and
customer to recover the interest on
rehabilitation slum dwellers would
monthly basis. Bank shall also
continue to be classified as weaker
keep 15 cheques on yearly basis
section advances. Beside the
and shall present the same on
Government agencies assistance given to nonpayment. In case of bounce of
non Governmental agencies approved by instrument bank may charge
National Housing Bank for the purpose Rs.50.00 for each cheque plus
of refinance will also be eligible for all postage. In case of closer of
categories of borrowers as applicable to account by shifting to another
the Government agencies
bank, bank shall charge 2% extra
on the remaining amount on the
All investment in bonds issued by
day of closing of account.
NHB/HUDCO # exclusively for
financing of housing, irrespective of the
loan size, per dwelling unit, will be
reckoned for inclusion under Priority
Sector advances
HOUSING FOR RENT
13.00 %
Commercial Building Loan
Up to Rs. 10.0 Lac
12.50 %
Above Rs. 10.0 Lac but upto 25.0
Any Commercial Building Loan
13.50 %
Lac
15.00 %
Above 25.0 Lac
16.00 % +
Real Estate
For any Loan
Rating

49

CONCLUSION
It was overall a very nice and informative training in BAGHAT BANK.The
employees and my guide was very helpful and cooperative. Manager Mr.K.C
SHARMA remained a guiding force during this period Knowledge and
Experience Gained.
The Baghat Urban Co-operative Bank Ltd., has maintained its decades' tradition
of being the fastest growing Scheduled Co-operative Bank in Himachal Pradesh.
I compaired the two year balance sheet of bank and find out the differnce between
two year balances.the difference is calculated in %age and ratio analysis.
I find that the profit of the 2009 is less than 2008.
I also compaire the branches like growth in deposits, depositors, advances,
borrowers,
Income, expenditure working capital, share capital, reserve fund and net profit.
The
Doing the project in Finance, under my Industry Guide Mr.K.C SHARMA I
learned how the banks are compaire their earning and know about the difference
between proits,deposits,income and expenditure in a year.
RECOMENDATION

1. The bank should try to improve the ATM Services, as it is one of the major
reasons for dissatisfaction among the customers as majority of those who
were dissatisfied where on account of non availability of cash in ATM,s
and limited number of ATMs.
2.

The bank should also target the females for invest their money in bank.

3. The bank needs to make people aware about there products and the basic
benefits they can derive out of it.

50

BIBLIOGRAPHY

BOOKS:
Co-operative hand book BY John DSliva.
ANNUAL REPORT
38th and 39th

Websites:www.baghat urban co-operative bank

www.geogle .com

51

ANNEXTURE

The Financial Status of the bank from 2005 - till date

Financial Status

(Rs. in Lac)
YEAR
2005

CATEGORY

YEAR
2006

YEAR
2007

YEAR
2008

YEAR
2009

OVERALL
PERFORMANCE

Interest Income

704.89

776.24 1022.47 1506.10 1757.86

16.72%

Interest Expenses

409.93

462.27 615.47

956.06

1207.72

26.32%

Non Int. Income

116.64

71.81 47.21

62.16

57.14

Operating Exp.

152.45

188.69 107.95

109.50

141.61

Gross Profit

821.54

848.08 1069.68 1568.26 1815.00

Net Profit

183.79

191.27 185.44

Return on Avgrage
Assets
Yield on Advances

270.93

2.58

2.08 1.85

2.20

1.64

10.80

8.70 7.79

9.93

10.87

40

40

42

No. of Employees

341.05

41 40
3

15.73%

09.47%

No. of Branches

Business Per
Branch (in Lacs)

3687.70 4524.08 6141.87 7527.01 9183.02

22.00%

Gross Profit Per

Branch (in Lacs)

273.85

15.73%

282.69

29.32%

356.56

522.75

605.00

52

AUDITED PROFIT AND LOSS STATEMENT AS ON 31-032009

AS ON

EXPENDITURE

31-03-2008
6,744,984.00
81,598,276.20
87,031.00
1,220,583.00
5,955,107.00
441,929.00
201,500.00
8,335,248.00
916,856.00
-562,645.00
500,000.00
2,341,491.47
-112,358.00
171,010.00
122,694.75
13,050.00
12,000.00
1,182,382.00
-1,155,010.00
65,520.00
373,656.41
401,324.72
3,230,069.60

AS ON
31-03-2009

Interest paid on saving deposits

Interest paid on FIX deposits
Interest paid on recurring
deposits
Interest paid on mini/DSS
deposits
Interest paid on IBT A/c
Security hire exp.
Fringe benefit tax
Salaries and allowances,EPF
EPF(employee contribution)
Uniform to peon expenses
Pension expenses
Leave encashment provision
Ex-Gratia
Over time
Traveling expenses(T.A bills)
Staff gratuity premium
Board of direct exp.
Insurance premium on customer
Ins.
Audit fee
Rent,light,taxes,insurance
Advance income tax paid
Insurance premium
Legal fee
Telephone ,telegraph & postage
Printing stationery &
advertisement
Depreciation

6,517,578.00
111,501,141.94
631,355.00
2,122,086.00
32,955,542.00
1,085,365.30
120,000.00
10,869,311.00
1,230,108.00
2,961.00
768,819.00
500,000.00
1,200,000.00
-93,570.20
1,144,299.00
13,100.00
-79,668.00
1,167,894.35
1,478.81
1,436,016.00
106,301.00
433,454.02
465,358.80
3,514,592.20
53

36,060.00
527,197.90
-943,030.33
264,405.00
103,658.67
2,168,783.64
8,664.00
98,454.00
3,034.00
15,650.00
3,994.00
2,047,840.00
20,758.00
9,971.06
84,100.00
127,212.00
--718,000.00
463,000.00
22,000.00
93,571.90
34,105,655.17

157,609,765.82
AS ON

Building Furniture repairing

expenses
Maintance of computer and
other
Software exp.
Miscellaneous exp.
Entertainment exp.
Medical aid
Brokerage to mini agent
Books, periodicals and news
papers
Administration charges (EDL
@.65%)
Cash remittance charges
Clearing house rent exp.
Water bill exp.
Premium paid on govt.
securities
Arbitration fees
CSGL/DEMAT transaction
charges
Donation A/c
A.G.M exp.
Inauguration exp.
Investment fluctuation provision
Provision for NPAs
Contingent provision for std.
assets
Membership fee exp.
ATM expenses
Profit(income excess of
expenses)

18,002.00

TOTAL

214,455,107.46
INCOME

31-03-2008
106,218,036.67
7,086,025.00
12,158,156.09
17,081,353.07

248,221.87
2,222.68
702,885.97
188,975.56
124,625.01
2,786,577.00
8,262.00
125,444.00
35,724.85
13,269.00
5,626.00
2,371,497.00
-10,797.98
55,827.00
68,091.00
87,794.50
-1,286,000.00
1,223,536.00
38,000.00
-27,093,728.42

AS ON
31-03-2009

Interest. received on advances

Intt. On govt. securities
Intt.on deposits in other bank
FDR
Intt.on dep.with co-op. bank
FDR

130,380,392.85
10,044,898.22
21,339,746.92
14,019,727.00

54

5,955,107.00
3,516,549.77
2,784,283.97

Intt.received on IBT A/c

Commission
Profit from sale of
govt.securities
Locker rent
Stationery charges
Inspection charges
Incidental charges
Insurance commission
Other income
Document charges
Intt. On refund of income tax
Dividend income

107,597.00
2,857.00
700.00
106,247.50
1,540,300.00
393,239.00
471,033.00
187,870.00
410.00
--

32,955,542.00
3,231,673.87
-129,122.00
1,132.12
-78,705.28
1,568,874.60
-503,198.33
-190,170.33
11,923.94

157,609,765.82

TOTAL

214,455,107.46

PROGRESS AT A GLANCE
(Amount in rupees and at the closing of the year)
YEAR
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002

NO. OF
SHARE
HOLDER
149
154
193
214
284
423
545
684
745
999
1107
1231
1352
2308
2426
2650
3131
3270
3749

SHARE
CAPITAL

RESERVE FUND

DEPOSITS

276,750
290,750
327,750
337,750
338,550
396,600
467,350
584,750
747,150
903,950
1,296,650
1,726,050
2,239,200
2,880,900
3,736,750
4,932,900
5,732,100
6,285,900
7,060,400

155,000
253,000
286,000
286,000
390,165
499,538
505,553
616,078
833,297
1,224,478
2,092,193
3,122,946
4,083,146
5,906,059
7,165,437
11,664,337
17,634,964
21,952,521
21,952,521

902,339
1,354,611
2,042,106
2,518,577
2,588,314
4,089,141
7,089,006
12,785,479
17,729,486
24,720,798
36,918,234
51,530,382
70,680,681
101,587,176
143,334,151
206,912,602
282,631,907
459,676,682
459,676,682
55

2003
2004
2005
2006
2007
2008
2009
YEAR
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009

4083
4834
5287
5519
5519
5991
5944

8,062,350
10,076,650
11,355,850
13,060,400
14,748,550
1,56,50,300
1,61,17,150
ADVANCE

1,016,716
1,142,789
1,313,577
1,522,837
1,549,207
2,589,235
4,284,802
7,397,984
11,004,097
15,605,380
27,219,422
34,623,473
46,031,509
58,855,432
73,215,151
99,308,347
130,604,488
266,336,112
266,336,112
336,265,382
391,376,614
456,6148,115
563,371,756
783,831,296
93,49,71,040
1,08,34,27,251

34,035,264
47,702,856
66,683,288
71,102,132
110,700,892
11,49,60,199
12,91,85,306
WORKING
CAPITAL
1,461,611
2,078,289
2,855,880
3,531,545
3,664,984
5,305,468
8,580,230
14,967,940
21,012,793
28,609,069
43,717,325
62,290,280
86,281,105
116,109,653
164,415,115
235,622,289
321,199,479
537,186,714
537,186,714
596,374,055
666,858,268
759,869,216
922,544,056
1,209,784,436
1,51,65,04,777
1,89,81,49,544

509,258,965
578,541,445
649,660,663
793,838,925
1,058,664,804
1,32,31,32,336
1,67,14,78,073
PROFIT
57,173
62,963
69,316
39,269
103,853
177,558
196,502
297,889
528,447
627,317
882,720
1,110,549
1,342,370
1,561,910
4,512,176
5,154,754
5,380,201
7,845,909
7,845,909
10,027,640
14,032,618
1,83,792,80
1,91,272,89
18,544,459
3,41,05,655
2,70,93,728

56

57