BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

CHAPTER 1
INTRODUCTION

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1.1 Background of study:

Co-operative banking system is basically an imported concept but it has come to
occupy a pivotal and prominent role in the economic liberation of millions of people of
our nation. It has emerged as a social and healthy banking institution providing need-
based quality banking services. Essentially to the middle and lower middle classes and
the Marginalized sections of the society those who consists 75 percent of our country.
Co-operative Banks have assisted in boosting the growth rate of Indian economy by
providing a fillip to agricultural production in the country by making available cheap and
hassle free agricultural finance. A healthy co operative banking system is essential for
Indian economy striving to achieve growth and remain stable in competitive global
business environment. In this juncture the performance of these institutions has been less
than satisfactory and is deteriorating rapidly. On the other hand some institutions doing
their services remarkably.
In this way BDCC Bank Ltd in Bagalkot district renders its services for four
districts (Bagalkot) and meeting the credit requirement of rural, semi urban and urban
customers. With this back ground data have been collected and analyzed the financial
performance and operational efficiency of Bagalkot District Central Co-operative Bank
Ltd (BDCC Bank).

I. Need of the study:

 Financial statement analysis is an important tool for measuring the
financial performance of any company.
 The main aspect of financial management is working
capital management and it should be done on day-to-day basis.
 Hence the company permits me to do in the area of finance.
 This study helps to review the financial performance of
the company.

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II. Importance of the Study:

 Co - operative Banks failures have been relatively high in recent years.
 Bulging of non - performing assets is the one of the reason for failure of the co -
operative banks.
 The other reasons are falling of revenues, increasing the expenses and operating
costs.
 In the co- operative credit structure the district central co-operative banks occupy
a position.
 BDCC Bank play an intermediary position between the apex co-operative bank
and the primary agricultural societies. The success of the BDCC Bank largely.

1.2 Statement of problem:

“An Analytical study on financial performance at BDCC Bagalkot” The
project is undertaken at Bagalkot District Central Cooperative Bank which highlights
the detail study of the financial performance on BDCC Bank Bagalkot. The project
describes the process of financial performance on BDCC Bank.
Though the Co-operative Banks have been established with laudable objective,
they are suffering from various problems and as a result, their financial performance is
very precarious. This is due to many a number of reasons such as lower or negative
spread, mounting non performing assets, entry of other Banking Institutions into the area
remarked for the Cooperative Banks as a result of which there is an increasing
competition, etc. Moreover high levels of non-performing assets and high growth in
credit of UCBs and Rural Credit Cooperative Institutions continue to be the major area of
concern.
Therefore, it is necessary to assess the financial performance of these Banks. In
this background, the present study intends to focus on the analysis of financial
performance of Co-operative Banks in general and of selected Co-operative Banks in
Karnataka in particular with the objective of ascertaining the reasons for the same and
also the extent to which each has contributed to the poor financial performance of Co-
operative Banks.

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1.3 Objectives of study:

 To Study the performance of The Bagalkot District central co-operative Bank

Bagalkot.
 To examine the relationship between bank profitability and it’s determinants
through multi discriminate model.
 To analyze the level of deposits, creditors and Credit Deposit ratios of BDCC
bank.
 To analyze the working capital position in BDCC bank.
 To know the progress of Bagalkot district central co-operative bank.

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LITREATURE REVIEW:

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Mukul G. Asher (2007), In his article Reforming Governance and Regulations of Urban
Co- operative Bank in India discussed that there is need for paradigm Shift for Urban co-
Operative banks (UCBs) to achieve financial inclusion process and for greater growth
there is a need of proper management and regulated authorities in India to function them
to enhance their contributions. The author also pointed out that they will require
governance and regulation and professionalism like commercial banks due to competition
commercial bank now a day adopting the technology in managing the day to day
activities likewise the UCBs may follow the professionalism in management for financial
inclusion process. For India’s current and prospective economic structure there is need
for a paradigm shift in the role of UCBs

Shah Deepak (2007), “Investigated on a case study of Sangli and buldana District
Central Co-operative Banks they pointed out the main reason for the weaker financial
position of credit co-operatives in Maharashtra due to NPA and the bulging of NPA is the
main reason for deterioration in health of credit co-operatives. The study also pointed out
credit co-operative banks showed a decline in their financial health and economic
viability and the financial position is good when compared to late nineties as against the
early nineties period”

Chander and Chandel (2010), In their study financial viability and performance of co-
operative credit institutions in Haryana for the period form 1997-98 are analyzed and
discussed with the help of using. Financial Analysis and Z-core Analysis. For their study
they find out profitability, Liquidity, solvency, efficiency and risk are the key factors to
check the financial position of the banks. Four different ratios were calculated and
analyzed in each sector. The findings of the study reveal that four District Central Co-
operative Banks has not been functioning in a successful way with its fifty branches. The
banks find better position in one parameter and in other analysis it not found so good. On
the other hand Z-core analysis all the banks are in a weaker position or financially weak
and were suffering form financial from financial mismanagement because of
underutilization of resources.

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Ramachandran. A; Siva Shanmugam.d (2012), The study mainly focused attention to

study the financial performance of Urban Cooperative banks in India, which were
covered under schedule II of RBI Act. Only secondary data have been collected for the
study from 2001-2002 to 2009-10. The study finds of that the urban cooperative banks
facings tiff competition from the private sector banks and public sector banks. The
commercial banks are concentrating to expand their position and concentrate the rural
mass and try to reach the unreached. Due to this reason the survival of urban cooperative
banks depends on transparency in its operation, governance, customer-centric approach,
up gradation of technology and its efficiency. For success of the urban cooperative banks
they have to modify themselves according to the expectation of its customers. Customer
centric approach is required in this situation to tackle the competition.

Narayana Gowda Talla et al,(2012), In this paper the researcher aims to investigate the
financial performance of Dharmavaram Urban Cooperative bank Andhra Pradesh in
India. The study employs exploratory research design which relies on secondary data
only. Secondary data such as Balance sheets with schedule and profit and loss account of
Dharmavaram Urban Cooperative Bank were collected for the period 2005-06 to 2009-
2010. Analysis of data is made using certain tools and techniques such as Ratio Analysis,
Averages, Standard deviation and t -test. The study reveals that there was growth in the
position of deposits mobilization, membership position, loans and advances of the bank,
level of working capital, reserves, owned funds, total income of the bank, total
expenditure and over dues of the bank for the entire period of the study. Dharmavaram
Urban Co-operative bank achieved a smaller growth in its profits and there was moderate
performance in its banking operations during the study period.

Rajini and Dr. Navakiranjit kaur Dhaliwal,(2012), The Punjab State Cooperative
Agricultural Development Bank, the study concluded that the satisfactory financial
performance of the banks requires attending some grey areas which need immediate
attention. There are some steps to require improving their profitability of the bank. The
study reveals that there is a scope to improve them in an efficient manner. During the

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study period the performance of the bank does not in a greater position. The ratio analysis
shows the position of the bank only because of the efficiency and effectiveness of their
employees. This is because of their motivated and committed employees. The man power
of the bank is highly committed to achieve their objectives of the bank. With the help of
solvency ratios one can concludes that the bank is in sound financial position. For sound
solvency position any bank requires motivated staff members. The bank requires some
new innovative products in its long term way then the position of the bank may in a
greater height, and the bank requires introducing some innovative products according to
the requirements of its customers.

Sanjay Kanti Das,(2012),State Cooperative Banking in Northeast India Financial and

Operational Viability Analysis, in this study the researcher points out the reasons for the
slow progressing level of the State Cooperative Banking in the Northeastern region of
India where they are from the backward region of our country. Only secondary data have
been collected for the study. The data have been collected for a period of seven years
from 2002-03 to 2008-09.The secondary data have been from the books, periodicals,
websites journal dailies and annual reports of banks NABARD,RBI and NAFSCOB. The
results and performance have been interfered with help of statistical tools such as
correlation, Correlation matrix,

Gnanasekaram. E, Dr. M. Anbalgan, N. Abdul Nazar,(2013) “Cooperative Banks

Success and growth in Vellore District – Statistical Analysis”, in this study reveals that
the position of Membership, the share capital position,NPAs, Loans and advances of the
banks and profitability position of the bank are tested and verified with the help of
statistical tools and ratio analysis. The overall position showed a significant growth and
concluded that it is in a progressive way. The study concludes that the bank is role model
for other banks and the bank is occupied in eighth place and it served best and role model
for other banking industries in this district.

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CHAPTER 2
THEROTICAL BACKGROUND

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Financial performance is a subjective measure of how well a firm can use assets
from its primary mode of business and generate revenues. As discussed earlier that one of
the tools for the analysis of financial statements is the ratio analysis. This analysis
describes a particular relationship between elements of one with the other elements in
a financial report. Financial statements referred to is the balance sheet and income
statement. Balance sheet shows assets, debt and the company's capital at a given time.
Income statement reflects the results achieved by the company within a certain period
(usually one year).
Financial ratio analysis of a company used to assess the situation and trends also
measure the performance of management. Through analysis of the ratio can be used as a
basis to assess whether management's performance has reached a predetermined goal or
not, and early knowing on trends or trends that management performance can be
anticipated earlier. The results of analysis can be used to observe the weakness of the
company during the period of time to walk, is there any weaknesses in the company can
be repaired, while the results are good enough to be maintained in the future. Further
historical ratio analysis can be used for the preparation of plans and policies in the
coming years in order to determine the right policy direction.
Financial Performance Analysis:
Financial analysts often compare financial ratios (of solvency, profitability, Growth and
conditions)
• Past performance - Across historical time periods for the same firm (the last 5Years
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.

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• Comparative performance - Comparison between similar firms. 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 Val
 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).

There are many ratios analysis that can be used by the analysts in accordance
With the needs and specifications of the business or organization that will be
analyzed. In this paper analysis of financial ratios used are CAMELS and DuPont
Analysis.

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CHAPTER 3
RESEARCH METHODOLOGY

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Only secondary data have been collected for the study. Data have been collected
from the books, web sites, annual reports of the bank. In order to test the ratio analysis, t
test and percentage analysis are used.
Research Gap:
The review of literature clearly reveals that no research was previously conducted
on the financial performance analysis of BDCC Bank ltd in Bagalkot district in
Karnataka, India. Hence the research aims to fill the gap by analyzing the financial
performance of BDCC Bank ltd in Bagalkot district in Karnataka, India
Data Collection:
This report was prepared with the help of both primary and secondary data.
Primary Data:
Primary data are those data which are collected directly without the use of any secondary
media.
Such as:
 Interaction with the Bank officials

 Interaction with co-operative society officials.

 Observation

Secondary Data:
Secondary data are those which are obtained from sources such as follows:
 Bank Publications
 Circulars
 Internal Financial reports
 Annual reports
 Company Website

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CHAPTER 4

SECTOR ANLYSIS

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 Size of Industry:

Banking Sector Co-operative Bank Comes Under Apex and RBI.

The banking sector is the section of the economy devoted to the holding of
financial assets for others, investing those financial assets as leverage to create more
wealth, and the regulation of those activities by government agencies.
A bank is a financial institution that provides banking and other financial services
to their customers. A bank is generally understood as an institution which provides
fundamental banking services such as accepting deposits and providing loans. There are
also nonbanking institutions that provide certain banking services without meeting the
legal definition of a bank. Banks are a subset of the financial services industry.

 Conducting current Accounts for his customers,

 Paying cheques drawn on him/her, and
 Collecting cheques for his/her customers.

In most common law jurisdictions there is a Bills of Exchange Act that codifies
the law in relation to negotiable instruments, including cheques and this Act contains a
statutory definition of the term banker: banker includes a body of persons, whether
incorporated or not, who carry on the business of banking,

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Meaning of Co-operative Bank:

A cooperative bank is a cooperative organization engaged in the banking

functions of acceptance and deposits with lending credits. Mainly the branches in all over
Bagalkot District,
Bagalkot Terdal Mudhol Hunagund
Kaladagi Banahatti Katageri Ext Counter Ilkal

Rampur Savalagi Mahalingpur Ameengad

Shirur Ext Counter Bazar Branch Jkd Lokapur Sangam
Navanagar (BGK) Badami Halagali Kamatagi
Gaddankeri cross Guledgudd Chichakandi Ext Karadi
Nayanegli Kerur Ranna Nagar Gudur
Jamakhandi Kulageri Cross Nagral Bilgi
Galagali

 Growth Rate:

The rate of interest on medium term agricultural loans for the year 2014-15
was12.5%Out of which 3% interest is paid by Borrower and 3.5 % interest is paid by
state government to the DCC Bank. It is for 7Years.
 Govt Regulations: Supervision of Primary (Urban) Cooperative Banks.
 Primary Cooperative Banks, popularly known as Urban Cooperative Banks
(UCBs) are Registered as cooperative societies under the provisions of, either
the State Cooperative Societies Act of the State concerned or the Multi State
Cooperative Societies Act, 2002. They are regulated and supervised by the
Registrar of Cooperative Societies (RCS) of State concerned or by the Central.
 Registrar of Cooperative Societies (CRCS), as the case may be. The
applicability of banking laws to cooperatives societies since March 1, 1966
ushered in ‘duality of control’ over UCBs between the Registrar of

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Cooperative Societies/Central Registrar of Cooperative Societies and the

Reserve Bank of India.
 The Reserve Bank regulates and supervises the banking functions of UCBs
under the provisions of Banking regulation Act, 1949(AACS). Within the
Reserve Bank, a separate department, viz.
 Urban Banks Department has been entrusted with these functions. Urban
Banks Department Functions in close coordination with other regulators viz.,
RCSs and CRCS. The functions of the department can be broadly divided
into.
 Regulatory
 Supervisory and
 Developmental.
 The Reserve Bank has been vested powers to issues licence to UCBs under
Section 22 and 23 Banking Regulation Act, 1949 (AACS) to carry on banking
business and to open new places of business(branches, extension counters,
etc.) respectively. For this purpose, guidelines on the eligibility criteria for
issue of banking license / branch license are issued to UCBs from time to
time.
 As a regulator, the Reserve Bank has prescribed prudential norms in various
areas, e.g. capital adequacy, income recognition, asset classification and
provisioning, exposure to single/group borrowers, exposures to sensitive
sectors, loans and advances, investments, liquidity requirements,etc.
 Considering the heterogeneity in the sector, a differentiated regulatory regime
is being adopted by Reserve Bank in certain aspects by grouping the UCBs
under two Tiers (Tier I and II) based on their branch network, area of
operation and the level of deposits.
 The Banking Regulation Act, 1949(AACS) provides for submission of
periodical returns by UCBs to the Reserve Bank of India. Further, under the
powers vested in the Reserve Bank, it has prescribed various other periodical
returns to be submitted by UCBs.

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 The Reserve Bank carries out on-site inspections and off-site surveillance of
UCBs. It also Issues directions and operational instructions to UCBs,
wherever necessary to streamline the Functioning and to protect the interests
of the depositors.
 As a part of developmental functions, the Reserve Bank imparts training to the
officials of UCBs to upscale their knowledge, skill and expertise.
 The Reserve Bank has entered into memorandum of understanding (MOU)
with Central Government and various State Governments for harmonization
of regulation and supervision.
 The circular instructions issued to UCBs from time to time are placed in the
Reserve Bank’s Website. Further, for discharge of its functions, the Bank has
prepared operation manual, Job Cards, manual for on-site inspection of UCBs,
manual of instructions for UCBs, etc. and issues internal circulars/instructions
from time to time.
 Major Players :
Nationalized Banks in India:
 State Bank of India.
 State Bank of Mysore.
 Karnataka Bank
 Dena Bank.
 ICICI Bank.
Major Co-operative Banks in India:
 Ahmadabad Mercantile Co0operative Bank Ltd.,
 Surat Peoples Co-op Bank Ltd.,
 Indian Mercantile Co-operative Bank Ltd,
 Bharat Co-operative Bank (Mumbai) Ltd.,
 Bombay Mercantile Co-operative Bank Limited,
 Rajkot Nagarik Sahakari Bank Ltd.,
 Kalupur Commercial Co-Operative Bank Ltd,
 Citizen Credit Co-operative Bank Ltd,

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 Jalgaon Janata sahakari Bank Ltd,

 Charaminar Co-operative Urban Bank Ltd,

All State CO-Operative Banks in India:

 The Andaman and Nicobar State Co-operative Bank Ltd.
 The Andra Pradesh State Co-operative Bank Ltd.
 The Arunachal Pradesh State Co-operative Apex Bank Ltd,
 The Assam Co-operative Apex Bank Ltd.
 The Bihar State Co-operative Bank Ltd.
 The State Co-operative Bank Ltd.
 The Orissa State Co-operative Bank Ltd.
 The Sikkim State Co-operative Bank Ltd.
 The Pondicherry State Co-operative Bank Ltd.
 The Tripura State Co-operative Bank Ltd,
 The Punjab State Co-operative Bank Ltd.
 The Rajasthan State Co-operative Bank Ltd.
 Markets:

BDCC bank has opened 36 branches in the district for the purpose of sanctioning
the loan and to provide banking service to all the people of the district. There are 661
primary agricultural credit societies afflicted to BDCC bank. Banks introduce all the
new schemes under the guidance of “NABARD”
Service:

Service is the last element of Primary activities of the value chain associated with
providing to buyers such as technical assistance etc. The Bank is engaged in the
following services.

Safe deposit locker facility and safe custody of article.

 Extra interest on deposit of senior citizens.

 Early redress of complaints.

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Bank is providing various schemes and plans:

 Kisan credit card

 Development activity plan

 Business development plan

 National crop insurance plan

 Yashasvini insurance plan

 Janashree insurance plan

Supportive Activities:

General administration, Human resource management, technology development

and procurement represent the four major categories of supporting activities in the value
chain model. These provide support to the primary activities and also support each other.

General Administration:

General administration of BDCC bank comprise of following activities.

 Management
 Membership and share capital
 Executive committee and its function
 Supervision committee
 Staff pattern

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CHAPTER 5
COMPANY PROFILE

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Lending is very serious business. A decision to lend based on incomplete data will
invariably lead to losses and can result in the financial ruin of the banker. This is where
credit appraisal comes into its own. If properly prepared, it analyzes the borrower and the
environment within which he operates and recommends whether a loan should be
extended.

Credit analysis is therefore, required at all levels of corporate activity.

It must be acknowledged that a credit analysis does not make a loan safe? What it
does do is that it brings to the notice the strengths and weaknesses of a loan and thus
affords a sound foundation for a logical reason to be arrived at.
Lending Procedure:
Most financial institutions provide credit and the success or failure of a financial
institution will depend heavily on its ability to manage lending well. Loan procedures
must set out all the steps to be followed in selecting customers, completing applications,
loan appraisal and approval, setting repayment schedules, loan contracts, disbursement,
monitoring, loan collection, dealing with delinquency and loan record-keeping.
Procedures need to be simple enough to be easily followed while meeting all the
requirements of the institution.

Agricultural lenders face special challenges that are related to the specific nature
of farm production. High liquidity risks result from the seasonal nature of production and
household income. Other problems arise when many or all borrowers are affected by
external factors at the same time, known as covariant risk. Examples of this include the
effects of drought, flood or pests. Small scale farmers are rarely able to offer adequate
collateral for loans. So agricultural lenders must adopt lending practices that are
preventive and avoid default rather than depend on collateral based techniques.

Cooperatives can be considered as operating in the semi-formal financial sector.

They are not chartered financial institutions but they are empowered or permitted to
provide financial services and products. These arrangements generally fall outside the
regulation of the banking authorities but operators are usually licensed and supervised by

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other government agencies, such as the Cooperative Registrar. They regularly have
written by-laws, statutes, constitutions or rules of operation.

Credit unions and savings and credit cooperatives are voluntary financial
organizations owned and operated by members. Their purpose is to encourage savings by
creating local deposit facilities and then using the pooled funds to make loans for
productive, consumer or social purposes to their members. Primary level credit unions
and savings and credit cooperatives are often member-owners of vertically integrated
secondary cooperatives which provide them with central banking, trade association and
business support services. In some developing countries these secondary institutions are
regulated as formal financial sector entities.

Multipurpose cooperatives may also provide financial services to their members

but do this in conjunction with other services such as input supply or marketing
members’ crops. Governments have often been keen to promote cooperatives but to be
successful they have to remain private business organizations owned and controlled by
the people who use its products, supplies or services.

Cooperative Banking:

The cooperative movements was stated in India in 1904 with the objective of
providing finance to the agriculturist of productive purpose are low rates of interest ad
there be relieving them from the clutches of the money lenders. The large number of
agriculture credit society was set up in the villages and of the cooperative society’s act of
1912 contributed to the establishment of central cooperative banks and the state
cooperative banks to provide refinance to primary credit movement in India.

The cooperative credit movement made good progress during and after the First
World War of 1914-1918, but during the great depression of 1929-1933 received a
serious setback with the outbreak of Second World War 1939-1945. The cooperative
credit movements made considerable progress once again. by that time the cooperative

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credit institutions had increased their membership and gone up and their deposits and
advances also have increased considerably, since the progress had been maintained thank
to the keen interest shown by the reserve bank of India in the cooperative credit
movement.

The cooperative banks and societies perform and important role in meeting the
requirements of people in rural areas cooperative banks of district entities by themselves
with separate jurisdictions and independent board of directors. The cooperative banks are
organized on a cooperative basis on one governed by their members according to
cooperative laws.They are under the control of respective state governments certain
provisions of the banking relation act also apply to the cooperative banks. Cooperative
banks in India are federal in day structure.

In the general sense, the term “co-operative” means, the idea of “living together
and working together”. Co-operation is a business organization. It is the only system of
voluntary organization suitable for poorer people. In this system, the persons voluntarily
associate together as human beings on a basis of equality, for the promotion of their
economic interests. Thus, the Co-operative Bank can be defined as, “an institution
established on the co-operative principles and engaged in the normal banking business of
accepting deposits from the public for the purpose of lending and repay it on demand or
otherwise”

Importance of banking:

 The primary function of function of the banking is to accept the deposits from the
persons who have surplus money and lending the same to the needy persons.
 The deposits are accepted at the lowest rate of interest and lender at the higher of
higher of interest.
 Difference in interest rate would be the case of profit the banks, Day to day with
emergence of new bank and due to severe competition the banks were not able to

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earn the profit and maintain their primary function of accepting and lending the
loans...
 In order to keep the profit percentage high the bank started giving the auxiliary or
subsidiary services to its customers the basic functions of deposits and leading.
 These subsidiary services such as remitting the money from one place to another,
offering the facility of safe deposit lockers, accepting the articles for safe custody,
exchange of currency.

BDCC Bank Address:

Name of the Bank : The Bagalkot District Central Co-Operative Bank Ltd.,
Sector No 24, Navanaga, Bagalkot 587103.
Head Office : The Bagalkot District Central Co-Operative Bank Ltd.,
Sector No 24, Navanagar, Bagalkot 587103.
Phone : (08354) 265418, 265419, 263642 Fax 08352-265473.
E-mail : [email protected]
Type of sector : Co-operative Bank.
Year of Establishment : 01-02-2003
No of Employees : 187
Work Schedule : 10.30 to 5.30
Total branch : 36
Chairman : Shri Ajayakumar S Saranayak
Financing : Agricultural Financing, Non- Agricultural Financing

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

3C - Company, Compotator, Customer,

Bagalkot District credit co-operative bank (central Office) Bagalkot
Competitors:
 Jyoti Credit Co-operative Bank.
 Basaveshwar Co-operative Bank.
 Biluru Gurubasava credit co-operative Bank.
 Bapuji co-operative Bank.
 Corporation bank
 State bank of India

Customers:
 Formers
 Student’s
 Business man’s( if any )
 Travel’s Agency’s
 Trade Agency’s

5.1 Origin, and Scope:

Late Sri Shiddanagouda Sanramanagouda Patil, of Kanaginahal, Dist. Gadag was
the founder and president. He played keen role in forming co-operative societies all over
the India. He is the person who took initiation to form the co-operative societies all over
the India. So he is well known as the father of co-operative sector.
Northern Karnataka has all the resources for the agriculture accept finance. There
was a problem of agricultural finance for the farmers of the Northern Karnataka during
the beginning of the 1900s. So Sri Pandurangro A Desai has founded Vijaypur Central
co-operative Bank at vijaypur in the year 1919 with the initial investment of Rs.10000/-
specially for the agricultural finance. After this the bank has grown into many branches
and has helped many farmers. In the year 2003 the Bagalkot branch has been separated
from the Vijaypur branch and formed a separate entity for Bagalkot District to help
Bagalkot District farmers. The first president of the bank was Sri S.R. Patil second

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

President was Sri.Ramanna Talewad in 2006.

The current president is sri.Ajaykumar s saranayak.Since 2003 has been in the
continuous progress, and has formed more then 36 braches all over the Bagalkot District,
apart from the financing for agriculture, it also financing for the other purpose also but
the main intention of bank is to finance for Agriculture.
Scope:
Bagalkot District consists of 36 Branches. Each One has a separate agricultural
cooperative Bank Primary Agricultural Cooperative Bank (PACB).This study is
undertaken With reference to the following aspects.
 Loan and advances.
 Working capital management.
 Solvency analysis.
 Efficiency analysis.

The primary agriculture cooperative banks are covered in limited villages.

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

 Products and Brands:

Loans:
a) Short Term Loans
b) Medium Term Loans
c) Long Term Loans
Short Term Loans to Societies:
a) Kisan credit card Yojana

b) Tobacco pledge loan

c) General cash credit

d) Key loans to sugar factory.

e) Hypothecation loan to sugar factories

f) Hypothecation loan to spinning mills

Short term loans to individuals:

A) Deposit loans

B) Gold loans

C) Individuals cash credit

Medium term loans to societies
1) Agriculture purpose

2) Conversion

3) Non agriculture purpose

4) Non agriculture to sugar factories

5) Non agriculture to spinning mills

Medium term loans to individuals:
a) Vehicle loan (conversion)

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

b) Non-agricultural activities loans

c) Consumer durable

d) Self help groups

e) Salary earners
Long term loans
1) Housing loans (staff)
2) Housing loans (general)

3) Education loans

4) Mortgage loans

Deposits
a) Reserve fund deposits
b) Fixed deposits
c) Recurring deposits
d) Saving deposits
e) Current deposits
f) Fixed deposits matured but not withdrawals
 Major Customer /Segment:
 Formers
 Student’s
 Business man’s( if any )
 Travel’s Agency’s
 Trade Agency’s

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

5.2 HR Function:
 Organization Structure:

Board of
Directors

CEO

Gen. Manager Gen. Manager

(Administrati (Banking)
on)

Dy.gen.Mgr
(A/c Handling)

Dy.gen.Mgr Dy.gen.Mgr Dy.gen.Mgr Dy.gen.Mgr


(Estimation) (Loans) (Planning (Internal
&Devp) Audit)

36 Branches
Manager Manager
Manager Manager
 Sr.Manager

Jr.Manager
Jr.Manager Jr.Manager Jr.Manager Jr.Manager


Cleark 2 Clearks

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

BDCC bank has its operations in regional level, throughout the Bagalkot District. It has
32 branches in total in the district.
Ownership Pattern:
BDCC Bank is a Private Limited Bank.
Board of Directors:

NAME OF DIRECTORS CATEGORY

Shri. Ajaykumar S Sarnayak Chairman

Shri. Shivangouda S Agasimundin Vice Chairman

Shri. Shivangouda R Patil Director

Shri. Ramappa S Talevad Director

Shri. Mahadevappa M Hatti Director

Shri. Prakash I Tapshitty Director

Shri. S B Patil Director

Shri. S R Malli Director

Shri. Bhimshi S Magaduma Director

Shri. Mohan S Jadav Director

Shri. S N Ramaswami Director

Shri. K R Maachappanavar Retired Director

Shri. G B Bhangi Retired Director

Shri. M P Shellikeri Director

Shri. Ashok V Morab Director

Shri. H.Y. Gaddankeri G.M

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

 Organization Development:

Vision,

We are committed to Achieving Substantial growth in the field of banking by

Expanding and diversifying our exiting activities and moving in to allied lines estimated
to profitable in the long term. We will also divest or modify those activities, which do not
show long term potential.

Mission,

We, the people of Bagalkot District Central Co-operative Bank, Bagalkot, are
dedicated to provide funds and service in the field of agriculture in the concessional rate
of interest, their by developing the agricultural field in the Bagalkot district and keep
ourselves to be dedicated fir the services of the public.

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

5.3 HRM Practices:

Operations:

Operations involved in processing and sanctioning loans are.

 Receiving application from eligible member

 Scrutiny of application
 Recommendation of supervisors
 Unification of documents
 Office note
 Sanctioning of loan
 Disbursement

Working Hours: 10:30Am to 5:30Pm

Technology:

The present business world is competitive. To set competitive advantages and

complete effectively business organization must develop a technology. As new
technology adopted in the organization the mode of communication become easier and
these factors helps to reduce the burden of work.

Bank has computerized all its sections in head office, which helped bank in providing
faster services. At present bank is computerizing in its ten taluka places and few of the
big branches, in which fourteen branches have already started providing computerized
services and one branch in under the project. Along with this bank is also planning to
computerize its fifteen to thirteen branches.

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

5.4 Competitions:

 Biluru Gurubasava Co-Operative Bank.

 Bagalkot Urban Co-Operative Bank Ltd,

 Shri Basaveshwar Co-Operative Bank.
 Shri Vijay Mahantesh Co-Operative Bank.

 The Bijapur Industrial Co-Operative Bank.

5.5 CSR Activities (Corporate Social Responsibility):

Meaning:

CSR is a business approach that contributes to sustainable development by

delivering economic, social and environmental benefits for all stakeholders. CSR is a
concept with many definitions and practices.

Definition:

Corporate social responsibility is the continuing commitment by business to

behave ethically. And contribute to economic development while improving the quality
of life of the workforce and their families as well as of the local community and society
at large.

Activities:

1) The Bank has sponsored of Rs.5 lakhs for the KPL (Karnataka premier leeg) T-20
Test.

2) The Bank has sponsored Horticulture Fair of Rs.2 lakhs in 2015

3) The Bank has sponsored of Rs.1Lakhs for the National level Sports Sainik School
vijayapur.

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

5.6 Unique practices, Bagalkot District Central Co-operative Ltd, Bagalkot

 To provide all types of facilities to the farmers through primary agricultural credit
co-operative societies.

 Granting quick loan facilities to the poor class people and financially backward
people.

 To provide financial help to the co-operative education societies.

 Establishing co-operative education societies in the district.

 Increasing the percentage of accepting the deposit.

 Providing own building facilities for all branches of Bagalkot District Central Co-
operative Bank.

Achievements & Awards etc,

 Best Banking services in 2013-14 In Bangalore,

 State Co-operative APEX Bank
 Best Farmers Bank
 Performance Award 1999-2000
 National Agriculture and Rural Development Bank (NABARD)
 For its remarkable performance in all districts central co- operative Banks, in
India for the year 1999-2000.

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

5.7 SWOT Analysis:

Strengths of BDCC Bank Bagalkot:

 Bank has an effective organization structure.

 Bank has maintained good relationship with the customers.
 It has 36 branches in district.
 661 primary agricultural co operative societies (PKPS) are associated with the
BDCC bank.
 Bank has created self help groups.
 Bank is adherence to co-operative values and principles.

Weakness of BDCC Bank Bagalkot:

 Bank doesn’t make use of technology for its banking operation like computers
etc. Field work.

 Staff of bank lacks the professionalism.

 Bank has less resource as compare to nationalized bank.

 No internet banking and mobile banking.

 Gigantic field work.

 Lack of time management

 Lack of knowledge about many aspects of banking to the employees.

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

Opportunities for BDCC Bank Bagalkot:

 Being the co-operative bank it has opportunity to finance the government projects.
 DCC Bank becomes priority bank for co-operative societies.
 Bagalkot district is very near to Maharashtra and Goa states, so it can attract
farmers of respective states to expand its transactions.
 In Bagalkot district there are 706,476 cultivators and 587,476 agricultural laborers
are present.
 Presence of many sugar factories in Bagalkot district.
 Bank can start ATM centers in all the taluka places of the district.

Threats to BDCC Bank Bagalkot:

 The main threat to bank is increasing steps/roots of public banks.

 Easy policies of public banks.

 Less documentation of the public banks for different types of loans.

 Instant service by other banks.

 In Bagalkot district there are commercial banks and grameen banks these can be
the threats to BDCC Banks Bagalkot.

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

CHAPTER 6
DATA ANALYSIS

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

This report was prepared with the help of both primary and secondary data.
Primary Data:
Primary data are those data which are collected directly without the use of any secondary
media.Such as:
 Interaction with the Bank officials
 Interaction with co-operative society officials.
 Observation

Secondary Data:
Secondary data are those which are obtained from sources such as follows:
 Bank Publications
 Circulars
 Internal Financial reports
 Annual report
 www.bgkdcc.com

Result and Analysis:

Table: 1 Overall performance of BDCC Bank for Past five Years (Rs. in crores)
Sl. No Particulars 2010-11 2011-12 2012-13 2013-14 2014-15 “t”
Value
1 Share capital 34.84 39.09 42.76 51.50 69.96 7.6572
2 Reserves 74.28 77.22 105.38 124.46 148.18 7.5313
3 Deposits 606.24 733.59 913.59 1129.87 1297.33 7.4198
4 Borrowings 250.32 299.40 427.26 456.94 644.50 6.0295
5 Investment 241.46 269.81 474.56 535.74 523.27 6.4318
6 Working capital 988.56 1182.73 1538.12 1810.60 2207.35 7.0905
7 Loans and advances 635.58 789.43 918.37 1079.97 1402.12 7.3395
8 Net profit 3.12 6.64 4.24 15.22 16.15 3.2852
9 Gross NPA 2.98 2.49 2.77 1.78 1.42 7.7052

Sources: Secondary data

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

Unpaired “t” test:

In 2010-11 deposits were around Rs.606.24 Cores and during the year 2014-15
they raised to Rs.1297.33Cores. The significant of “t” value 7.4198. The working capital
has increased from Rs.988.56 Cores in 2010-11 to Rs.2207.35 Cores in 2014-15 the
significant of “t” value7.0905. Loans and Advances were Rs.635.58 Cores in 2010-11
and increase to 1402.12 in 2014-15 and it indicates a rise in advances. The significant of
“t” value 7.3395 which was significant at 5 percent level. The profit of the banks has
increase by 16.15 in 2014-15 from 3.12 in 2010-11. The t value is 3.2852 on the other
hand gross non - performing assets has been decreased from 2.98% in 2010-11 to 1.42%
in 2014-15. It is health progress of this bank.
Net profit:
Meaning of Net profit:
Net profit, also referred to as the bottom line, net income, or net earnings is a
measure of the profitability of a venture after accounting for all costs. It is the
actual profit without inclusion of working expense in the calculation of gross profit.
Formula: Net Profit = Total Revenue - Total Expenses
Table 2: Overview of Bank Net Profits for last 5 Years [Rs.in Crores]
Years Net Profit % Growth/Slump

2010-11 3.12 -

2011-12 6.64 +3.52%

2012-13 4.24 -2.4%

2013-14 15.22 +10.98%

2014-15 16.15 +0.93%

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

Graph: 2 Overview of Bank Net Profits for last 5 Years [Rs.in Crores]

18

16
16.15
14

12 15.22

10

8
Net profit
6
6.64
4
4.24
2 3.12

0
2010-11 2011-12 2012-13 2013-14 2014-15

Analysis and Interpretation:

The net profit measures the relationship between net profits and sales or operating
income of the firm. The Net Profit for the year 2010 to 2015.
BDCC Bank has 13 years of experience in the Banking industry. The Bank’s Net
Profit is substantially showing increasing trend from past 5 years. Net Profit in 2011 saws
Rs. 3.12 Crores, in 2012 it was Rs.6.64 Crores, in 2013 it was Rs. 4.24 Crores in loss, in
2014 profit was Rs15.22 Crores and at the end of financial year 2015 it was Rs.16.15
Crores in the Net Profit for past 5 years.

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

NON PERFORMING ASSETS [NPA]

Net NPAs are those type of NPAs in which the bank has deducted the provision
regarding NPAs. Net NPA shows the actual burden of banks. Since in India, bank
balance sheets contain a huge amount of NPAs and the process of recovery and write off
of loans is very time consuming, the provisions the banks have to make against the NPAs
according to the central bank guidelines, are quite significant. That is why the difference
between gross and net NPA is quite high.
Asset Classification: Categories of NPA’s Standard Assets
Standard assets are the ones in which the bank is receiving interest as well as the
principal amount of the loan regularly from the customer. Here it is also very important
that in this case the arrears of interest and the principal amount of loan do not exceed 90
days at the end of financial year. If asset fails to be in category of standard asset that is
amount due more than 90 days then it is NPA and NPAs are further need to classify in
sub categories.
Banks are required to classify non-performing assets further into the following three
categories based on the period for which the asset has remained non-performing and the
reliability of the dues:
 Sub-standard Assets

 Doubtful Assets

 Loss Assets

1) Sub-standard Assets:

A sub standard asset would be one, which has remained NPA for a period
less than or equal to 12 month. The following features are exhibited by sub
standard assets: the current net worth of the borrowers / guarantor or the current
market value of the security charged is not enough to ensure recovery of the dues
to the banks in full; and the asset has well-defined credit weaknesses that
jeopardize the liquidation of the debt and are characterized by the distinct
possibility that the banks will sustain some loss, if deficiencies are not corrected.

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2) Doubtful Assets:
A loan classified as doubtful has all the weaknesses inherent in assets that were
classified as sub-standard, with the added characteristic that the weaknesses make
collection of on the bases on currency known facts conditions and values highly
improbable.
3) Loss Assets:
A loss asset is one which considered uncollectible and of such little value that its
continuance as a bankable asset is not warranted – although there may be some salvage or
recovery value. Also, these assets would have been identified as “loss assets” by the bank
or internal or external auditors or the RBI inspection but the amount would not have been
written-off wholly.
IMPACT OF NPA:
A) Profitability:
NPA means booking of money in terms of bad asset, which occurred due to wrong
choice of client. Because of the money getting blocked the prodigality of bank decreases
not only by the amount of NPA but NPA lead to opportunity cost also as that much of
profit invested in some return earning project/asset. So NPA doesn’t affect current profit
but also future stream of profit, which may lead to loss of some long-term beneficial
opportunity. Another impact of reduction in profitability is low ROI (return on
investment), which adversely affect current earning of bank.
B) Liquidity:
Money is getting blocked decreased profit leads to lack of efficient cash at hand
which lead to borrowing money for shortest period of time which lead to additional cost
to the company. Difficulty in operating the functions of bank is another cause of NPA
due to lack of money, routine payments and dues.
A) Involvement of management:
Time and efforts of management is another indirect cost which bank has to bear due to
NPA. Time and efforts of management in handling and managing NPA would have
diverted to some fruitful activities, which would have given good returns. Now a day’s

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

banks have special employees to deal and handle NPAs, which is additional cost to the
bank.
B) Credit loss:
Bank is facing problem of NPA then it adversely affect the value of bank in terms
of market credit. It will lose its goodwill and brand image and credit which have negative
impact to the people who are putting their money in the banks.
Problems due to NPA:
 Owners do not receive a market return on their capital in the worst case, if the
banks fails, owners lose their assets. In modern times this may affect a broad pool
of shareholders.

 Depositors do not receive a market return on saving. In the worst case if the bank
fails, depositors lose their assets or uninsured balance.

 Banks redistribute losses to other borrowers by charging higher interest rates,

lower deposit rate. Higher lending rates repress saving and financial market,
which hamper economic growth.

 Non-performing loans epitomize bad investment. They misallocate credit from

good projects, which do not receive funding, to failed projects. Bad investment
ends up in misallocation of capital, and by extension, labour and natural
resources.

 Non-performing asset may spill over the banking system and contract the money
stock, which may lead to economic contraction. This spill over effect can lead to
poor liquidity or bank insolvency:

 When many borrowers fail to pay interest, banks may experience liquidity
shortage. This can jam payment across the country.

a) Illiquidity constraints bank in paying depositors.

b) Undercapitalized banks affect the bank’s capital base.

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

NPA Management and Recovery Polices of the Bank:

Guidelines issued by the bank through various circulars from time to time and
instruction contained in the manual of instructions will be followed in the matter of credit
appraisal, assessment, sanction, disbursement, follow up, supervision, monitoring and
control of advances. Periodical review of all credit facilities with a limit of Rs.5lakhs and
above will continue to be made by the authority one rank higher than the sanctioning
authority by way of asset classification report every half year. However, review of top
100 borrowable accounts will be placed before the executive committee of directors’ half
yearly and all other accounts sanctioned by the executive committee of directors and the
board will continue to be reviewed by the chairman himself. In respect of borrowable
accounts with below Rs.5lakhs the regional office will review such account by on sight or
off sight supervision.
In case of NPA account fund based working capital balance above Rs.500lakh
stock/credit audit shall be conducted within 6 months from the date of sanction/release. In
case of consortium advance, bank will not insist for any independent audit but persuade
the leader of the consortium to get the same done and to furnish a copy of the audit report
for perusal. Risk Management Department shall monitor this exercise. Further, all
branches that are advance oriented will continue to be subjected to concurrent audit
where the external auditor verifies the document/operation in the account.71% of the total
advance portfolio is now subjected to such concurrent audit. At present the bank is
getting the securities revalue once in 3 years, the same procedure shall be continued. Off
site surveillance system has put in place during 2007-08. The Risk Management
Department shall conduct off site surveillance of borrowers account with exposure
exceeding Rs.25 lakhs.
This exercise will be used as a tool for early detection of potential NPA and
further monitoring of account. At present the bank evaluates its exposure to industry on
quarterly basis and exposure to foreign trade and agriculture sector is being evaluated
annually. With effect from 1/6/2005 Risk Management Department is conducting
portfolio analysis and industrial reviews of loan portfolio by undertaking an environment

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

scan at macro level in order to identify high/normal/negative growth areas. In lines with
the RBI directions, Bank has adopted a system
If any to the Audit Committee of the Board.
Exit Policy:
Bank has introduced exit policy for loan assets during September 2003 to improve
the quality of loan assets to prevent irregular and high risk loan assets from becoming
NPA and borrow able account are being identified under his policy. It is proposed that if
the integrity of the borrower is doubtful or uncertain and if there is cross default by
obligate/guarantor/partner/director/group companies, such account shall also be taken up
under exit policy.
Loan Recovery Mechanism:
The appropriation of recovery in all loan account (performing and non-
performing) will be in the order of demand raised i.e. the earlier demand will be adjusted
first. The policy guidelines for loan recovery and NP Management as approved the Board
of directors from time to time will be followed. In order to contain the NPA‟s all
irregular accounts will be identified based on the guidelines spelt out in this policy and
monitored/followed up till their regularization. The Recovery Department will continue
to follow up for the recoveries of NPA. The recovery by settlement schemes meet the
defaulter each months etc are some of the recent initiatives adopted to give impetus to the
recovery process.
On 31st March, all borrowable accounts which are NPA are transferred to legal
and Recovery Department for further follow up and initiation of recovery measures by
them. The bank’s loan policy will be reviewed and revised from time to time, so as to fall
in line with the changing profile of banking in the country and abroad and to incorporate
the changing strategic option of the bank.
Recovery Policies:
For the purpose of determining future course of action in an account, the guiding
principle will be the intention of the borrower concerned.

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NPA AND RECOVERY MANAGEMENT:

NPA’s constitute a real economic cost to the nation in that they reflect the
application of scarce capital and credit funds to unproductive uses. The money locked up
in NPAs are not available for productive use and to that extent that banks seek to make
provisions for NPSs or write them off, it is a charge on their profits. To be able to do so,
banks have to charge their productive and diligent customers a higher rate of interest.
It thus becomes a tax on efficiency. It is the customer who uses credit efficiently
that subsidizes the inefficiency represented by NPAs. This also raises the transaction
costs in the system thus denying the diligent credit customers the benefit of lower rates
which would help them to be more efficient and competitive. NPAs, in short are not just
a problem for banks. They are bad for the economy.
There are a number of internal and external factors which are responsible for low
level of loan recovery and mounting NPAs. For bringing about improvement in
recovery, it is essential that banks explore all the possibilities such as timely follow-up
action, timely rehabilitation and sale of assets, pursuing claims with the surety,
compromise and as the last resort, legal recourse causes of NPA’s.The following are the
common causes of NPAs/reasons for poor recovery of loans in banks. Improper
identification of borrowers’ activity.
 Inadequate appraisal.

 Delay in loan sanctioning.

 Insufficient repayment period.

 Lack of post-disbursement follow-up.

 Inadequate understanding of borrower.

 Lack of recovery efforts.

 Inefficient internal control systems.

 Low motivation and commitment of staff.

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Table 3: Provision Made Towards NPA’s Past five Years.

Particulars 2010-11 2011-12 2012-13 2013-14 2014-15

Sub Standard 217.34 184.28 178.34 151.28 137.56
Assets
Doubtful Assets 135.57 473.69 502.8 650.13 823.09

Loss Assets 92.93 17.76 35.57 87.1 1040.68

Total 445.84 675.73 716.71 888.51 2001.33

Graph: 3 Provisions Made Towards NPAs for Past five Years.

8
7
7

6
5 4.8
5 4.4 4.5
4.3
Sub standred
4 3.5
3 2.8 3 Doubtful
3 2.4 2.5
2 2 Loss
1.8
2

0
2010-11 2011-12 2012-13 2013-14 2014-15

Analysis and Interpretation:

Here sub-standard assets position is highest in the year 2010-11 i.e. Rs 217.34 and
it is decreased in the year 2014-15 is Rs 137.6. It is lowest in the year 2010-11 as
compared to 2011-12, 2012-13 and 2013-14. The position of the doubtful assets
decreased in the year 2010-11 as compared to previous year i.e. it is decreased from
219.42 to 135.57.But again it is increased to Rs 473.69 in the year 2011-12, 502.8 in the
year 2012-13 and 650.13.

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

Table 4: Overall percentage of the NPAs to total assets for Past five Years of BDCC
Bank.
SL. No Years NPA(%)
1 2010-11 4.48
2 2011-12 2.98
3 2012-13 2.49
4 2013-14 2.77
5 2014-15 1.78
Graph 4: Overall percentage of the NPAs to total assets for Past five Years of BDCC
Bank,

Non-Performing Assets

5.00% 4.48%
4.00%
2.98%
3.00%
2.49% 2.77%
2.00%
1.78%
1.00%
0.00%
2010-11 2011-12 Non-Performing Assets%
2012-13
2013-14
2014-15

Analysis and Interpretation:

Here the total percentage of NPAs is consistently decreasing year by year for the
year 2010-11 it is 4.48 and it is decreased to 2.98 in the year 2011-12, and 2012-13 it is
2.49, in the year 2013-14 it is 2.77 and again it was declined to 1.78 in the year 2014-15.
NPA’s, in short are not just a problem for banks. They are bad for the economy. So here
the Bank maintained control on risk bearing capacity by its effective recovery policy and
recovery or credit risk management.

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

Liquidity Position:
Meaning:
Liquidity is the ability of a company to meet the short term obligations. It is the
ability of the company to convert its assets into cash. Short term, generally, signifies
obligations. Which nature within one accounting year. Short term also reflects the
operating cycle: Buying, manufacturing, selling, and collecting.
Liquidity and Business Decisions:
One can understand the liquidity position by analyzing the financial statements of
a Company. Following financial items are required to understand the liquidity position of
a company Liquidity position of a company can examined through financing decisions or
investment decisions. A company can finance its investment by different combination of
current and long term sources. In other words, a company can invest the money, raised
through short term source or long term sources, in the current assets or non-current assts.
Some of the relevant business strategies are as follows:
 Financing the current assets by current sources.
 Financing the current assets by the long term sources.

Table 2 explains the liquidity position of the Bank. Liquidity for a bank means the
ability to meet its financial obligations as they come due. Bank lending finances
investments in relatively liquid assets, but it funds its loans with mostly short term
liabilities. Thus one of the main challenges to a bank is ensuring its own liquidity under
all reasonable conditions. It can be explained with the help of credit deposit ratio.
Formula of Credit Deposit Ratio (CD):
Credit Deposit Ratio= Total Advances
Total Deposits

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

Table: 5 Credit Deposit Ratio for Past five Years. (Rs.in lakhs)
SL. No Particulars Credit Deposit Ratio Results
1 2010-11 6355816548.38
6062434828.57 = 1.04
2 2011-12 7894256252.38
7335925264.54 = 1.07
3 2012-13 9183775826.00
9135882748.93 = 1.00
4 2013-14 10799668149.27
11298748697.14 = 0.95
5 2014-15 14795204259.26
12973255339.04 = 1.14
Graph: 5 Credit Deposit Ratio for Past five Years.

Credit Deposit Ratio

1.2

1.15 1.14

1.1
1.07
1.05 1.04

1 Credit…
1

0.95 0.95

0.9

0.85
2010-11 2011-12 2012-13 2013-14 2014-15

Analysis and Interpretation:

The average Credit-Deposit ratio of the study unit over the study period. The
maximum percentage of ratio is 1.14 in 2014-2015 and minimum percentage is 1.04 in
the year 2010-2011. Though the percentage varies, it remained well above the standard

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

norms of 70 per cent. Thus, as per the BDDC Committee it may be inferred that the
credit-deposit ratios indicates a better liquidity management.
Formula of Debt Equity Ratio:
Debt - Equity Ratio = Total Liabilities / Shareholders' Equity
Table: 6 Debt Equity Ratios for Past five Years [Rs. in Crores]
Years Debt Equity Ratio (%)

2010-11 12.47

2011-12 7.65

2012-13 9.99

2013-14 8.87

2014-15 9.21

Average= 9.63

Sources: Secondary data

Graph 6: Debt Equity Ratios for Past five Years [Rs. in Crores]

Debt Equity Ratio

14.00%

12.00%

10.00%

8.00%
Debt Equity Ratio
12.47%
6.00%
9.99% 9.21%
8.87%
4.00% 7.65%

2.00%

0.00%
2010-11 2011-12 2012-13 2013-14 2014-15

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

Analysis and Interpretation:

The relationship between borrowed funds and owner’s capital is a popular
measure of the long – term financial solvency of a firm. This relationship is shown by
debt-equity ratio. This ratio indicates the relative proportions of debt and equity in
financing the assets of the firm. The debt – equity ratio of the BDCC Bank during the
year 2010 to 2015. This is more than the acceptable ratio in India. So it can be inferred
that the proportion of debt is said to be high which indicates high leverage of the study
unit. The Debt Equity Ratio in 2011 saws Rs. 12.47 Crores, in 2012 it was Rs.7.65
Crores,
Profitability Ratio:
Even though the bank meant for services, the profitability position of the bank
conquered the confident of the customers. Only profit value will not be able to show its
profitability, we measure it with the help of profitability ratios as explained with the help
of the following table.
Formula of profitability Ratio:
= Net income
Net sales
Table 7: Profitability Ratio Past five Years.
Sl. No Particulars NP/TI NP/TD NP/TA NP/NW NP/WC

1 2010-11 0.00039 0.0051 0.0095 0.0098 0.0031

2 2011-12 0.00064 0.0090 0.0018 0.0016 0.0056

3 2012-13 0.00029 0.0046 0.0075 0.0099 0.0027

4 2013-14 0.00008 0.0134 0.0023 0.0029 0.0084

5 2014-15 0.00065 0.0124 0.0022 0.0023 0.0073

Average= 0.00041 0.0089 0.00466 0.0053 0.00542

Source: Secondary data

Applying the formulas:
NP= Net Profit,
B.V.V SANGA’S INSTITUTE OF MANAGEMENT STUDIES BAGALKOT, Page 53
BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

TI= Total Income,

TD= Total Deposits,
TA= Total Assets,
NW= Net Worth=Capital + Reserves,
WC= Working Capital,
Formula of Spread Ratio:

Spread Ratio=NP/Spread
Spread =Interest earned – Interest paid
Table 8: Spread Ratio for Past five Years.( Rs in crores)
Years Spread NP(Rs.in Crores) Spread Ratio(NP/Spread)

2010-11 642489662.72 3.12 3.12 /642489662.72=0.00025

2011-12 588045505.67 6.64 6.64 / 588045505.67=0.0025

2012-13 457447928.97 4.24 4.24 /457447928.97=0.0092

2013-14 242803096.61 15.22 15.22 /242803096.61=0.0027
2014-15 145451879.39 16.15 16.15 /145451879.39=0.0021

Graph: 8 Spread Ratio for Past five Years.

0.01 Spread Ratio

0.0092
0.009

0.008

0.007

0.006

0.005

0.004 Spread Ratio

0.003 0.0025 0.0027

0.0021
0.002

0.001
0.00025
0
2010-11 2011-12 2012-13 2013-14 2014-15

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

Analysis:
The Profitability Ratios shows operating efficiency of the firm and its ability to
ensure adequate return to its shareholders on the basis of profits earned by it.
Interpretation:
Ratio of Net Profit to Total Income ratio, Ratio of net profit to total deposits, net
profit to spread ratio, ratio of net profit to total advances, ratio of net profit to net worth
and ratio of net profit to working capital. The net profit of the bank fluctuates from have
been in a progressive trend. This ratio increased from 20 per cent to 57 per cent, 50 to 62
percent, fluctuating from 70 to 82 percent, average of 6 percent 4 to 6 percent and
average of 2 percent respectively. The Spread Ratio in 2011 saws Rs. 0.00025 Crores, in
2012 it was Rs.0.0025 Crores,
Deposits:
Table: 9 Overview of Bank Deposits for Past five Years [Rs.in Crores]
Years Deposits Percentage Change

2010-11 606.24 -0.068

2011-12 733.59 0.210

2012-13 913.59 0.245

2013-14 1129.87 0.236

2014-15 1297.33 0.148

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

Graph: 9 Overview of Bank Deposits for Past five Years [Rs. in Crores]

Deposits

1400 1297.33
1129.87
1200

1000 913.59

733.59
800
606.24 Deposits
600

400

200

0
2010-11 2011-12 2012-13 2013-14 2014-15

Analysis &Interpretation:
From The Bank Deposit is constantly showing increasing trend from past 5
years. The above chart we can see that bank’s deposits have gradually increased from
year to year. During 2014-15 it reached to highest to Rs. 1297.33 Crores and % change is
0.148.
Working Capital:
Meaning of Working Capital:

Working capital is the difference between the current assets and the current liabilities.
The basic calculation of the working capital is done on the basis of the gross current
assets of the firm.

Importance of Working Capital:

Working capital is one of the important measurements of the financial position.

The words of H. G. Guttmann clearly explain the importance of working capital.
“Working Capital is the life-blood and nerve centre of the Business.” In the words of
Walker, “A firm’s profitability is determined in part by the way its working capital is

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

managed.” The object of working capital Management is to manage firm’s current assets
and liabilities in such a way that a satisfactory level of working capital is maintained. If
the firm cannot maintain a satisfactory level of working capital, it is likely to become
insolvent and may even be forced into bankruptcy. Thus, need for working capital to run
day-to-day business activities smoothly can’t be overemphasized.
Formula: Working Capital = Current Assets – Current Liabilities.
Table 10: Overview of Bank BDCC Working Capital for Past 5 Year’s (Rs.inLakhs)
Years Working capital
2010-11 97211.61
2011-12 118272.99
2012-13 153812.31
2013-14 181059.89
2014-15 220734.99
Graph 10: Overview of BDCC Bank Working Capital for Past 5 Year’s(Rs.inLakhs)

250000 Working capital

200000 220734.99

181059.89
150000 153812.31
118272.99
97211.61
100000
Working capital
50000

0
2010-11
2011-12
2012-13
2013-14
2014-15

Analysis and Interpretation:From the above chart we can see that bank’s Working
Capital have gradually increased from year to year. During 2014-15 it reached to highest
to Rs. 220734.99 lakhs.

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

CHAPTER 7
FINDINGS

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

Bank is following the principles of co operative and helping to improve the economy of
the country by providing financial support to weaker section of the society. The following
are the summary of findings.
 It is found that the Banks Non Performing Assets percentage declined from the
effective recovery of Loans during the five years (i.e.4.8%, 2.98%, 2.49%,
2.77%and 1.78% in the year, 2010, 2011, 2012, 2013 and 2014 respectively.
 The Net Profit in the year 2011-12,2013-14,2014-15 has increased compared
previous Years Respectively.
 NPA’s is constantly decreasing year by year from the year 2011-2015.
 Bank deposits increased from 2011 to 2015 this is good bank has gained good
public opinion.
 The bank’s working capital requirement and level has increased year by year.
 The profitability ratio shows efficiency of the firm.
 The average credit –deposit ratio of the study unit over the period.
 The banks profit is showing an upward trend from the last several years
 The rate of interest for non-agriculture is higher than for agriculture loan.

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

CONCLUSION,
From the detailed study of BDCC Bank, it can be concluded the bank is
functioning in a satisfactory level with regards to financial performance. There are certain
grey areas which need immediate attention. Effective steps are required for improving
their Debt equity Ratio in order to meet its day to day requirements. The standard norm is
2 but the bank maintains below the standard norms there lies a scope to improve its
operations so that it becomes more efficient that the bank stands on a sound footing. An
analysis of the profitability position of the bank indicates the criteria of profits of the
bank. During the study period it shows rosy picture.
Thus it can be said that Bagalkot District Central Co-operative bank achieved a
significant growth in profits and showed a good performance in banking operations in the
last phase of this period. One can concludes the bank can retain its dominating position in
the years ahead like the past due to the stiff competition.

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

CHAPTER 8
SUGGESATIONS

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

In the light of the study conducted at the BDCC bank and the specific issue of
financial performance that was examined during study period following suggestion are
made.

 BDCC Bank May think of customizing the Loan Products according to the
customer’s needs and necessities.
 Bank has improve the lending practice.
 The BDCC bank has keep safe the sufficient working capital level.
 The Bank should keep on revising its Credit Policy which will help to correct the
course of the policies

 Bank should maintain separate account for borrower whose monthly loan reports
should be made.

 Bank should evaluate the credit worthiness of the borrower to reduce the risk and
predict the future growth prospects.

 Bank should simplify the procedure for granting loan

 Since bank earns sufficient profit it can consider reduction of interest rate to
agriculture
 Insurance facilities should be extended for all crops
 Bank should grant more MT loan
 Bank should arrange to link credit with marketing.

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

CHAPTER 9
LEARNING EXEPERIENCE

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

Learning Experience:

 I was studied in details about the BDCC Bank.

 I know the banking transaction system.
 I learned banking deposit rating scales.
 I leaned process of loan systems.

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

BIBILOGRAPHY
Books:
1. M.Y.KHAN P.K JAIN Financial Management (6th Edition)
2. I.M.PANDEY Financial Management (10th Edition)
Research Articles:
1. A Study on Overall Performance of Rajapettai. Primary – Agricultural Co-Operative
Society Ltd. In Dharmapuri District,
2. Financial performance of the Salem District co-operative bank since computerization –
evidence from multi discriminate model,
3. A Study on Financial Performance of Primary Agricultural Co- Operative bank in
Kottagudi At Madurai District
Company Secondary Data:
1) Annual Reports of Bagalkot District Central Co-operative Bank (2010-2014)
2) Bagalkot District Central Co-operative Bank (2010-2014) Manuals
3) Brochures and pamphlets of Bagalkot District Central Co-operative Bank Ltd

Websites:

 www.bdccbankbgk.co.in

 www.rbi.org.in

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

ANNEXURES:
1. Joining Report
2. Weekly Progress Reports
3. Company Birds Eye View
4. Balance Sheets
5. Profit and Loss Accounts

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

THE BAGALKOT DISTRICT CENTRAL CO-OPERATIVE BANK LTD.,

BAGALKOT
BIRDS EYE VIEW
As on March - 2010-2011 (Rs in Lakhs)
1.No.of Branches 30 Branches + 3 Area Counters

2.Paid up share 3484.56

3.Total Reserves 7208.58

4.Total Deposits 60624.35

5.Total Borrowings 25031.76

6.Total Working Capital 98855.57

7.Total Loans Out-Standing 63558.17

8.Total Investments 24146.45

9.Net Profit 311.89

10.Loans Issued During 2010-2011 87075.91

(a)Agri.Loans 50986.24

(b)Non-Agri & Cash Credit Loans 24272.30

(c)Individual Loans 11817.37

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

THE BAGALKOT DISTRICT CENTRAL CO-OPERATIVE BANK LTD.,

BAGALKOT
BIRDS EYE VIEW
As on March – 2011-2012 (Rs in Lakhs)
1.No.of Branches 30 Branches + 3 Area Counters

2.Paid up share 3909.47

3.Total Reserves 7715.19

4.Total Deposits 73359.25

5.Total Borrowings 29940.17

6.Total Working Capital 118272.99

7.Total Loans Out-Standing 78942.56

8.Total Investments 26981.45

9.Net Profit 683.98

10.Loans Issued During 2010-2011 101755.83

(a)Agri.Loans 60867.46

(b)Non-Agri & Cash Credit Loans 26221.39

(c)Individual Loans 14666.98

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

THE BAGALKOT DISTRICT CENTRAL CO-OPERATIVE BANK LTD.,

BAGALKOT
BIRDS EYE VIEW
As on March – 2012-2013 (Rs in Lakhs)
1.No.of Branches 30 Branches + 3 Area Counters

2.Paid up share 4276.30

3.Total Reserves 10668.41

4.Total Deposits 91358.83

5.Total Borrowings 42726.01

6.Total Working Capital 153795.93

7.Total Loans Out-Standing 91837.76

8.Total Investments 47455.93

9.Net Profit 423.69

10.Loans Issued During 2010-2011 120342.83

(a)Agri.Loans 68116.08

(b)Non-Agri & Cash Credit Loans 22699.44

(c)Individual Loans 29527.31

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

THE BAGALKOT DISTRICT CENTRAL CO-OPERATIVE BANK LTD.,

BAGALKOT
BIRDS EYE VIEW
As on March – 2013-2014 (Rs in Crores)
1.No.of Branches 30 Branches + 3 Area Counters

2.Paid up share 51.50

3.Total Reserves 124.46

4.Total Deposits 1129.87

5.Total Borrowings 456.94

6.Total Working Capital 1810.60

7.Total Loans Out-Standing 1079.97

8.Total Investments 535.74

9.Net Profit 15.22

10.Loans Issued During 2010-2011 1347.28

(a)Agri.Loans 832.52

(b)Non-Agri & Cash Credit Loans 297.32

(c)Individual Loans 217.44

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

THE BAGALKOT DISTRICT CENTRAL CO-OPERATIVE BANK LTD.,

BAGALKOT
BIRDS EYE VIEW
As on March – 2014-2015 (Rs in Crores)
1.No.of Branches 30 Branches + 3 Area Counters

2.Paid up share 69.96

3.Total Reserves 148.18

4.Total Deposits 1297.33

5.Total Borrowings 644.50

6.Total Working Capital 2207.35

7.Total Loans Out-Standing 1402.12

8.Total Investments 523.27

9.Net Profit 16.15

10.Loans Issued During 2010-2011 1559.62

(a)Agri.Loans 1007.14

(b)Non-Agri & Cash Credit Loans 307.57

(c)Individual Loans 244.91

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

THE BAGALKOT DISTRICT CENTRAL CO-OPERATIVE BANK LTD., BAGALKO

THE THIRD SCHEDULE
(Section 29) (Form "A")
Profit & Loss Account and Balance Sheet for the year ended 31-03-2016

2014-15 EXPENDITURE AMOUNT(Rs.) 2014-15 INCOME AMOUNT(R

1) Interest on loan,Advances &
1813469668.39 1) Interest on Deposit & Borrowing 1513252897.73 2455959331.09 Investment 1842811196
2)Salary, Allowance and Provident
135797268.86 fund 193723614.00 4505586.06 2) Commission, Exchange & Brokerage 3544129
259286.00 3)Members Fees and Allowance 169916.00 0.00 3) Subsidies and donations 0
10) Stationery, printing & 4) Income from non-banking assets and
3675429.71 advertisement 4770253.73 profit from sale or dealing with such
15227968.00 5) Rent, Insurance, Lighting etc., 19046619.50 assets
934966.00 6) Law charges 918702.00 17966096.22 5) Other Receipts 20522963
7) Postage, Telephone & Internet 6)Bad and Doubtful Debt Reserve
5671861.54 charges 6930170.00 written back 67000000
322473.00 8) Auditors fees 512638.00
9) Depreciation & Repairs to
26857954.41 property 40623733.01
30458645.46 11) Other Expenditure 16854834.33

331445964.00 Profit Before Provisions 40733483.68

12)Provision for Bad And Doubtful
61509850.89 Debts 0.00
108365980.00 13) Other Provisions 0.00
114309528.00 4)Income Tax 96341428.00
161570133.11 14) Profit carried forward to B/S 40733483.68
2478431013.37 TOTAL 1933878289.98 2478431013.37 TOTAL 1933878289

General Manager(A) Chief Director Director Presiden

General Executive
Manager(B) Officer

AUDIT CERTIFICATE
We have Audited the Accounts of the Bagalkot District Central Co-operative
Bank Ltd., Bagalkot Head Office and its 33 Branches and 3 Extension Counters
for the year 2015-16. We have obtained all the informations and explanations
required for the purpose of Audit from the concerned.
On reviewing the Balance sheet and profit & loss account as on 31-03-2016 on
the strength of the books of accounts informations and explanations furnished by
the bank, in our opinion and to the best of our knowledge and belief it reflects a
true & fair view of the financial position of the bank & certified subject to our Place: Bagalkot
qualified remarks in the Audit Report. Date:11-08-2016

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

Balance sheet of BDCC Bank as on 31st march 2015

Capital and liabilities Amount Property and Assets Amount

Capital 1,24,20,52,950 Cash 52,04,84,872

Balance with other banks 1,05,41,99,996
Paid up capital Investments 3,06,26,75,000
Advances 14,79,52,04,259
Reserve fund and other Money at call and short
reserves 61,87,85,377 notice 2,17,00,00,000

Provisions 92,09,82,351 Interest receive 86,78,06,078

Bills receivables 3,09,32,004
Deposits 12,97,32,55,339 Premises
less depreciation 6,23,39,947
Borrowings 7,19,05,73,120
Library 2,796
Branch adjustments 4,33,38,197 Furniture 2,54,89,873
Vehicles 33,40,770
Interest payable 5,40,57,221 computer 2,41,354
safe vault 8,16,890
Other liabilities 17,81,85,002 machinery 13,638
core banking system 1,76,98,869
Contra accounts 2,02,92,712 CCTV camera 6,67,946
Other assets 21,02,48,337
Profit and loss a/c 16,15,70,133 Non banking asset 1,76,75,000
Contra account 2,07,89,774

Total 22,86,06,27,403 22,86,06,27,403

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BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

THE BAGALKOT DISTRICT CENTRAL CO-OPERATIVE BANK LTD.,

BAGALKOT
Profit & Loss Account the year ended 31-03-2011
31-3-2010 Expenses 31-3-2011 31-3-2010 Incomes 31-3-2011
In.(Rs) In.(Rs) In.(Rs) In.(Rs)
633330676.71 Interest on 639302468.24 799977042.22 Interest on loans 784754347.63
deposits &loans paid &deposits received

61030315.00 67707296.00 5450166.50 5120206.94

Administrative Exp Commission
received
50887328.83 4976641.59
Sadilwara&Misslenes
43155887.43 14211500.93
Other incomes

0.00 NPA Allowed 0.00

10000000.00 Staff Welfare Exp 10000000.00

0.00 Bank 5000000.00

Computerization

2500000.00 31188962.43
Other Expenses

Net profit 2009-2010

60386970.72

Net profit 2010-2011

810403849.86 Total 804086055.50 810403849.86 Total 804086055.50

B.V.V SANGA’S INSTITUTE OF MANAGEMENT STUDIES BAGALKOT, Page 74

BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

THE BAGALKOT DISTRICT CENTRAL CO-OPERATIVE BANK LTD.,

BAGALKOT
Profit & Loss Account the year ended 31-03-2012
31-3-2011 Expenses 31-3-2012 31-3-2011 Incomes 31-3-2012
In.(Rs) In.(Rs) In.(Rs) In.(Rs)
639302468.24 Interest on 772528150.37 784754347.63 Interest on loans 1015331246.98
deposits &loans paid &deposits received

67707296.00 114682389.00 5120206.94 6250658.88

Administrative Exp Commission
received
79075163.32 14211500.93
Sadilwara&Misslenes
50887328.83 13101993.56
Other incomes
-
0.00 NPA Allowed

0.00 Staff Welfare Exp 0.00

10000000.00 Bank 0.00

Computerization

5000000.00 -
Other Expenses

Net profit 2010-2011

31188962.43

Net profit 2011-2012 68398196.73

804086055.50 Total 1034683899.42 804086055.50 Total 1034683899.42

B.V.V SANGA’S INSTITUTE OF MANAGEMENT STUDIES BAGALKOT, Page 75

BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

THE BAGALKOT DISTRICT CENTRAL CO-OPERATIVE BANK LTD.,

BAGALKOT
Profit & Loss Account the year ended 31-03-2013
31-3-2012 Expenses 31-3-2013 31-3-2012 Incomes 31-3-2013
In.(Rs) In.(Rs) In.(Rs) In.(Rs)
772528150.37 Interest on 975379890.32 1015331246.98 Interest on loans 1432827819.29
deposits &loans &deposits
paid received
114682389.00 111610175.00 6250658.88 6428011.84

Administrative Commission
Exp received
79075163.32 67778424.89 13101993.56
9047126.13
- Sadilwara&Missl 231165000.00 Other incomes
ens
0.00
0.00 NPA Allowed
20000000.00
0.00 Staff Welfare Exp

-
Bank
-
Computerization

68398196.73 Other Expenses

Net profit 2011-

2012

Net profit 2012- 42369467.05

2013
1034683899.42 Total 1448302957.26 1034683899.42 Total 1448302957.26

B.V.V SANGA’S INSTITUTE OF MANAGEMENT STUDIES BAGALKOT, Page 76

BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

THE BAGALKOT DISTRICT CENTRAL CO-OPERATIVE BANK LTD.,

BAGALKOT
Profit & Loss Account the year ended 31-03-2014
31-3-2013 Expenses 31-3-2014 31-3-2013 Incomes 31-3-2014
In.(Rs) In.(Rs) In.(Rs) In.(Rs)
975379890.32 Interest on 1287454059.68 11432827819.2 Interest on loans 1875499565.35
deposits &loans paid 9 &deposits received
149025768.00 4519628.35
111610175.00 6428011.84
Administrative Exp Commission
received
111774058.14 12839940.24
Sadilwara&Misslenes
67778424.89 9047126.13
Other incomes
126600000.00
231165000.00 NPA Allowed
18000000.00
0.00 Staff Welfare Exp
30000000.00
20000000.00 Bank
Computerization
0.00
-
Other Expenses

Net profit 2012-2013

42369467.05

Net profit 2013-2014 152175248.12

1448302957.2 Total 1892859133.94 1448302957.26 Total 1892859133.94
6

B.V.V SANGA’S INSTITUTE OF MANAGEMENT STUDIES BAGALKOT, Page 77

BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

THE BAGALKOT DISTRICT CENTRAL CO-OPERATIVE BANK LTD.,

BAGALKOT
Profit & Loss Account the year ended 31-03-2015
31-3-2014 Expenses 31-3-2015 31-3-2014 Incomes 31-3-2015
In.(Rs) In.(Rs) In.(Rs) In.(Rs)
1287454059.68 Interest on 1813469668.39 1875499565.35 Interest on loans 2455959331.0
deposits &loans &deposits 9
149025768.00 paid 154677779.86 4519628.35 received
4505586.06
199203581.12 12839940.24
Administrative Commission
111774058.14
Exp received
61509850.79
126600000.00 17966096.12
Sadilwara&Missle Other incomes
18000000.00 nes 8000000.00

30000000.00 NPA Allowed 50000000.00

Staff Welfare Exp

30000000.00
0.00
Bank
Computerization
152175248.12

Other Expenses 161570133.11

Net profit 2013-

2014

Net profit 2014-

2015
1892859133.94 Total 2478431013.27 1892859133.94 Total 2478431013.2
7

B.V.V SANGA’S INSTITUTE OF MANAGEMENT STUDIES BAGALKOT, Page 78

BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

B.V.V SANGA’S INSTITUTE OF MANAGEMENT STUDIES BAGALKOT, Page 79

BAGALKOT DISTRICT CENTRAL CO OPERATIVE BANK LIMITED,

B.V.V SANGA’S INSTITUTE OF MANAGEMENT STUDIES BAGALKOT, Page 80