project report of oscb 11

A STUDY ON FINANCIAL FUNCTION OF O.S.C.B

R A J D H A N I C O L L E G E O F E N G G . & M A N A G E M E N T

INTRODUCTION

Aggressive entry of the commercial bank both in public and private

sector into the rural areas with advanced technology and net working to

implement the financial inclusion envisaged in the 11th five year is the

major challenge before STCCS of the for which, our major trust would

be go for Core Banks with scope to connect the PACS in the commercial

counterparts and to scope with the imminent changes in banking

industry.

BACKGROUND OF THE STUDY :-

The business model for focusing only on Agriculture is possible for

sustenance when the balance sheet is small. But as the balance sheet size

expands, the bank is taking steps to diversify into to other segments of

lending to sustain the growth momentum. Continued pressure on margin of

all the three tires including the bank constitute one of the most daunting

challenges during the year 2007-08 necessitating redesigning and

rebalancing the business portfolio for sustaining the profitability. We need

to build strength to face stiff competition on account liberalization. Use of

technology has redefined relationship in the banking products available to

Indian customer . But Core Banking Solution in the bank is yet to

grounded although the work is in progress. However, the bank dwarfs

other Banks in Agricultural finance. It has been evolved as one of the best

farmers friendly Bank providing about 27% of the priority sector lending’s

including 44% of agricultural loans and 63% of crop loans disbursed by



the entire bank irrespective of the Cooperative Banks held only 4% of total

deposits mobilized in the state.

RESEARCH METHODOLOGY:-

The research involved extensive and intensive studies of the Orissa State

Cooperative Bank Limited. In This project has been made to study the

financial analysis of the bank. During this period, I study the final

position and performance of the Bank. At last, I have given

interpretation and conclusion of the study.

OBJECTIVES OF THE STUDY:-

1. To study the current financial of position of financial condition of the

bank.

2. To study the profitability of The Bank for Last Five Years

3. To Study the important Ratios For five Years.

4. Action to be taken for variance.

DATA COLLECTION :-

The data collection is completely made from as well as secondary

sources.

The secondary sources cover :

Annual Report



Commercial Data

Official Records in the organization

Files

Books on subject

Web sites

LIMITATIONS OF THE STUDY:-

Limitation of time

The viability of the project under taken depends upon the reliability

of primary & secondary data taken.

It is only a study of interims report & annual reports of the

organization. The study should not be made compressive due to true

factor and limited information in hand.

It is a service organization so all the tool and technique are not apply.



COMPANY PROFILE

With the growth of central Bank, the need for loan and advances and

cash credit at a reasonable rate of grew for central Bank to enable them

to make adequate finance available to the societies. So in April 1914, the

Bihar and Orissa provincial Cooperative Bank was formed.

The early 40s witnessed the introduction of provincial autonomy in

all British Indian provinces and what was paramount importance was the

birth of the “Orissa providence” on 1st April 1936. The Orissa

providential cooperative Bank is one of the manifestations of the great

historical identity of Oriya people.

During this period the number of central Bank in North Orissa and South

Orissa are 13 & 2 respectively.

A few months after the formation of the separate Orissa Cooperative

Bank was registered on 15th August, 1936 and sum of Rs 10520 was

collected towards share capital of the Bank. The main objective of the

bank was –

To finance the cooperative societies.

To act as a balancing centre for the surplus funds of the societies in

Orissa.

To carry on the banking businesas.



The central Bank and union of Orissa applied for the bifurcation of the

Bihar and Orissa provincial cooperative Bank. The 13 central

cooperative Banks in North Orissa served all connections with the Bihar

provincial cooperative by Orissa Government. The Orissa provincial

cooperative bank registered on 15th August, 1939 could not start its

functions due to pending of Government decision on the enquiry into the

conditions of the cooperative movement in Orissa. There was no Apex

Bank for the 13 northern CCBs. However, the two southern were

obtaining loans from the Madras provincial cooperative bank as usual.

On 2nd April, 1984 the Orissa provincial cooperative Bank was

again registered under the Bihar and Orissa cooperative society act

1935.22members were enrolled and 100 shares were issued and share

capital of Rs. 10,020/- was collected. So it was twice born of the Bank.

The name of “Orissa provincial cooperative Bank “was charged to

Orissa State cooperative Bank “ in the year 1951-52.

The institutional Rural Credit Delivery system of Agriculture

Comprises of :-

1. Short term cooperative credit structure.

2. Long term cooperative credit structure.

3. Regional rural Bank

4. Commercial Bank

5. NABARD

6. RBI



Milestone in the History of O.S.C.B. Bank ltd.

1954-55 The Orissa Cooperative Society Act 1951 was

enforced and the rules The rules were formed

there under.

1955-56 M.T. Agriculture Loans were advanced to the

farmer for the First time.

1956-57 1.Line of credit for the handloom introduced

2. Bank’s deposit exceeds 1crore.

1957-58 Loan and advances of the bank exceeded

Rs.1 corer and stood 1.8 corers.

1959-60 Financing of the Industrial Cooperative Society

started.

1965-66 The Banking Regulation Act, 1949 was made

applicable to

1968-69 Crop loan was introduced

1965-66 The Banking Regulation Act 1949 was made

applicable to

1968-69 Crop loan was introduced

1970-71 The 1st branch of the Bank was opened at

Bhubaneswar on 15-12-1970.



1974-75 The Bank made loss of Rs 86000/- in the history

of 50 years i.e. from 1947 to 2000

1978-79 Cooperative storage projects stated in Orissa.

1981-82 A.C.S.T.I of the Bank was set up on 19-11-1985.

1990-91 New Cooperative year commenced from

01-04-1990

1994-95 MOU was signed between OSCB, NABARD and

Govt. of Orissa.

1996-97 The bank became a member of Indian Bank

Association on 23-04-1996

1997-98 The bank started total branch automation, the main

branch was fully computerized, NABARD awarded the

bank with Two best Performance prize for excellence

performance.

2000-02 ATM were installed in Cuttack and Bhubaneswar.

Customer attitude survey was taken up through the Xavier

Institution of Management, Bhubaneswar.



2002-03 i) Introduction of cooperation bank mutual Arrangement

scheme. (COBMASO)

ii) Recovery of cooperative duties in Orissa.

iv) The cooperative Bank has earned highest profit in that

year.

2003-04 i) Cooperation of “Mini Bank Schemes” at PACS level to

mop up Rural savings.

ii) Computerization Programmes for improving the quality

of customer service streamlines MIS and Financial

Accounting System.



STRUCTURE :-

Reserve Bank of India ( Central Bank)

Commercial Bank I.I S.B.I. Groups II. National Banks III. Regional Rural Bank IV. Private Bank

Insurance Companies

I) L.I.C

II) G.I.C

Mutual Fund

U.T.I

Development

Banks

NABARD SIDBI EXIM Bank SFCS IFC ICICI IDBI

State Land Development Cooperative Primary Land Development

Urban

Bank

State Cooperative Bank

17 District Central Cooperative Bank

2747 Primary Agricultural Cooperative Society



HOW ORISSA STATE COOPERATIVE BANK GET FINANCE?

NABARD (National Bank for Agriculture and Rural Development)

Orissa State Cooperative Bank

District Central Cooperative Bank

Primary Agricultural Cooperative Society

Members

RESERVE BANK OF INDIA:-

On the recommendation of Royal Commission and Indian Central Bank

Enquiry committee, Reserve Bank of India was established on April 1 st

1935 under Reserve Bank of India Act, 1934 as the Central Bank of the

Country. It was nationalized on 1st 1949 under the Reserve Bank Act

1948.

STATE COOPERATIVE BANK :-

It forms the apex of the cooperative credit structure in each state and as

such, It also known as Apex Bank. It finances, coordinates and control



the working of Central Bank in each sate. It serves as the link between

R.B.I NABARD on one side and the Central Cooperative Bank and

primary Society on other. They mobilize resources from the public by

way of deposits and by borrowing from RB.I, NABARD, SIOBI and

other refinancing agencies.

MISSION OF O.S.C.B LTS.:-

The mission of O.S.C.B. Ltd is to become a strong and Vibrant Bank

having competition edge and to lead a rejuvenated short term

Cooperative Credit Structure to serve the people of Orissa.

ACHIEVEMENT:-

Net worth exceeding 140 corers and deposits more than 1026 corers.

ATM service is available in the Main branches for anytime banking.

Earning profits since inception and paying dividend to share holders.

Awarded for best performance by finance Ministry, Govt. Of India.

Higher enter on all type of deposits.

Loan for commercial vehicles, small business building.

Purchase of customer and durables.

Demand draft issued on all types of deposits and on ace major cities of

country.



There are 17 affiliates of the Orissa State Cooperative bank which are

known as the Central Cooperative Bank or District Cooperative Banks

are as follows :-

Map Picture of Orissa

Represents CCBs

OSCB Network

17CCBs



The India Scenario of the Orissa State Cooperative Bank is as

follows :-

Chit fund

Indigenous Banker Unorganized

Money lender

Organized

Nidhis

R.B.I S.E.B.I MOF

Foreign Indian Cooperative Banks

Private Sector Public sector SCBs SCARD UCBs

Banks PCBs

CCBs

CARD BANKS

PACs

SBI & Nationalized PRBs

Subsidiaries Banks

Organized



FINANCIAL STATEMENT ANALYSIS:-

Introduction

According is the processes of recording, classifying, summarizing and

interpreting various business transactions in a systematic manner. It

provides the information to its various users for decision making. The

end products of the business transactions are the financial statements

comprising primarily the position statements or balance sheet and

income statement or profit and loss account.

MEANING OF FINANCIAL STATEMENT ANALYSIS :

A financial statement is a collection of data organized according to some

logical and consistent accounting procedures. Its purpose is to convey

and understanding of some financial aspects of a business form.

The term financial statement generally refers to the following two

statements:

The position statement or the balance sheet.

The income statement or profit and loss account.

Financial statements are prepared preliminary for decision making. But

the information provided in the financial statement is not an end in itself

as any meaningful conclusion can be drawn from these statements alone.



FANANCIAL STATEMENT ANALYSIS :

The financial statements are useful to different parties for different

purposes The objectives of financial statement analysis can be of many

and a few of them is listed below :-

1. To judge the earning performance of the business.

2. To judge the financial health of the enterprise.

3.To judge the financial viability of the company to pay its obligation

along with the interest.

4. To judge the solvency position of the enterprise.

PROCEDURE OF FINANCIAL STATEMENT ANALYSIS:

Broadly speaking, the analysis of financial statements is involved in the

steps :-

1. Selection

2. Classification

3. Interpretation

The first step involved selection of information relevant to the purpose

of analysis of financial statements. The second step involved is the

mathematical classification of the data. The 3 rd step includes drawing of

interference and conclusion.



The following procedure is adopted for the analysis and

interpretation of financial statement :-

1. The analysis should know all the principles and postulates of

accounting, plans and policies or the management to find out whether

the plans are properly execute or not.

2. To know the earning capacity of the enterprise then analysis of

income statement and to know the financial position then analysis of

balance sheet will be undertaken.

3. The financial data given in the statement should be reorganized and

re-arranged. Similar data grouped under same heads, breaking down

individual components of statements according to the nature. The data is

reduced to a standard form.

4. A relationship is established among financial statements with the help

of tools and techniques of analysis such as ratios, trends, common size,

funds flow. Etc.

5. The information is interpreted in a simple and understandable way.

6. The significance and utility of financial data is explained for helping

decision taking.

7. The conclusions drawn from interpretation are presented to the

management in the form of reports.



TYPES OF FINANCIAL ANALYSIS :

Financial analysis can be classified into different types depending upon;

1. The material used, and

2. The method of operation followed in the analysis or the modus opera

ding og analysis.

3. Types of financial analysis.

Types of financial analysis

On the basis of Material used On the basis of modus operandi

ON THE BASIS OF MATERIAL USED :-

According to material used, financial analysis is of two types

a. External Analysis :

This analysis is done by the outsiders who do not have access to the

detailed internal accounting records of the business firm. These outsiders

include investors, potential investors, creditors, potential creditors, govt.

Agencies, and the general public. For financial analysis, these external

External

Analysis

Internal

Analysis

Horizontal

Analysis

Vertical

Analysis



parties to depend entirely almost on the published financial statements.

Thus external service serves a limited purpose. However, the recent

changes in the government regulations requiring business firm to make

available more detailed information to the public through audited

published accounts have considerably improved the position on the

external analysis.

b. Internal analysis :

The analysis concluded by person who have access to the internal

accounting records of a business firm is known as internal analysis. This

analysis is performed by executives and employees of the organization

as well as govt. Agencies which have statutory powers vested in them.

Financial analysis for managerial purposes is the internal type of

analysis that can be effected depending upon to the purpose to be

achieved.

ON THE BASIS OF MODUS OPERANDI :-

According to the method of operation followed in the analysis,

financial analysis can also be of two types:-

a. Horizontal

b. Vertical analysis



a. Horizontal analysis :-

Horizontal analysis refers to the comparison of financial data of a

company for several years. The figures for this of analysis are presented

horizontally over a number of columns. The figures of the various years

are compared with standard or base year. A base year is a year chosen as

beginning point. This type of analysis is also called Dynamic Analysis

as it is based on the data from year to year rather

Than on data of any year. There are two tools for horizontal analysis

1. Comparative statement

2. Trend percentage.

(b) Vertical analysis :-

Vertical analysis refers to the study of relationship of the various items

in the financial statements of one accounting period. In this types of

analysis the figures from financial statement of a year are compared with

a base selected from the same year statement. It is also known as static

analyses. There are two tools for vertical analysis :-

1. Common size financial statement

2. 2. Financial ratio.

METHODS OR DEVICES OF FINANCIAL ANALYSIS :-

The analysis and interpretation of financial statement is used to

determine the financial position and results of operations as well. A

number of methods or devices are used to study the relationship between



different statements. An effort is made to use those devices which

clearly analyze the position of the enterprise. The following methods

analyses are generally used :

1. Comparative Statement

2. Trend analysis

3. Common –size statement

4. Funds flow statement

5. Cash flow statement

6. Ratio analysis

7. Cost volume profit analysis

A. COMPARATIVE STATEMENT :-

The comparative financial statements are statements which are prepared

at different periods of time relating to the same concern. This is done to

make the financial data more meaningful. In comparative statement

figures for two or more periods are placed side by side to facilitate

comparison. In fact, the comparative statements will show the following:

1. Figures i.e. absolute figures

2. Change in figure i.e. increase or decrease.

3. Data in terms of percentage

4. Changes in terms of percentage i.e. increase or decrease. Both the

income statement and balance sheet can be prepared in the form of

comparative financial statements.



(i) COMPARATIVE INCOME STATEMENT :

The income statement discloses the net profit or net loss on account of

business operations. The comparative income statement will show the

absolute figure for two or more periods, the changes in absolute figures

and the changes in terms of percentages. Since, the figure of two or more

periods are shown side by side the reader can quickly ascertain whether

sales has increased or decreased, gross profit has increased or decreased.

(ii) COMPARATIVE BALANCE SHEET :

The comparative balance sheet as on two more different dates can be

used for comparing the assets and liabilities and finding out any increase

or decrease in those items. Thus in a single balance sheet the main

emphasis is on present position while it is on the changes of assets and

liabilities. Such a comparative balance sheet is very useful in studying

the financial position every different periods.

Guidelines for interpretation of comparative balance sheet:

While interpreting comparative balance sheet the interpreter is expected

to study the following aspects:

1. Current financial position and liquidity position

2. Long term financial position

3. Profitability of the concern.



B. Trend Analysis:

It is an important tool of financial statement analysis. This technique is

greatly helpful in making a comparative study of the financial statements

relating to several years at a time. Under this technique trend percentage

are calculated for each item of the financial statement taking the figures

of base year as 100. Generally the starting year is taken as base year.

The trend percentage shows the relationship of each item with the

figures of other years. They will show the direction (i.e. upward or down

ward) to which the concern is proceeding.

For example, if sales figure for the year 1995 to 2000 are to be studied,

then sales of 1995 will be taken as 100 and the percentage of sales for all

other years will be calculated in relation to the base year, i.e. 1995.

Suppose the following trends are determined.

Year Trend

1995 100

1996 120

1997 110

1998 125

1999 135

2000 140

2001 100

2002 120



The trends to sales show that sales have been more in all the years since

1995. The sales have shown on upward trend except in 1997 when sales

were less than the previous year i.e. 1996. A minute study of trends

shows that rate of increasing in sales is less in the years 1999 and 2000.

The increase in sales is 15% in 1998 as compared to 1997 and increase

in 1999 as compared to 1998 and 5% in 2000 as compared to 1999.

Through the sales are more as compared to the base year but still the rate

of increase has not been constant and acquires a study by comparing

these trends to other items like cost of production, etc.

PROCEDURE FOR CALCULATING TRENDS:

1. One year is taken as base year. Generally the first or last year is taken

as base year.

2. The figures of based year are taken as 100.

3. Trend percentages are calculated in relation to base year. If a figure in

other years is less than 100 and it will be more than 100 if figure is more

than base year figure. Each year figures are divided by the base year

figures.

C. COMMON- SIZE STATEMENT:

This is technique of financial analysis. The common – size statement,

balance sheet and income statement are shown in analytical percentages.

The figures are shown as percentage of total asset, total liabilities and

total sales. The total sales are taken as 100 and different assets are



expressed as a percentage of total. Similarly, various liabilities are taken

as component percentage or 100 percentage of the total.

1. Current ratio :

Current ratio is defined as the relationship between current assets and

current liabilities. This ratio is also known as working capital ratio, is

widely used to make the analysis of short term financial positional

liquidity of firm.

Current ratio = current asset / current liability

YEAR CURRENT

ASSETS

CURRENT

LIABILITIES

RATIO

2004-05 10,632,206,762 6,454,307,961 1.64

2005-06 13,244,594,645 6,575,391,300 2.01

2006-07 16,487,392,940 6,873,819,228 2.40

2007-08 25,007,781,922 11,291,173,345 2.21

2008-09 28,369,278,489 12,334,468,908 2.30

The short term solvency position of bank is sound in 2007 -08



2. Cash position or Absolute liquid ratio:

Absolute liquid ratio may be defined as the relationship between liquid

asset and current liabilities.

Year Abs.Current asset Current

liability

Ratio

2004-05 1,580,818,439 6,454,307,961 0.24

2005-06 1,923,413,326 6,575,391,300 0.29

2006-07 3,293,147,702 6,873,819,228 0.48

2007-08 8,335,927,303 11,291,173,345 0.74

2008-09 10,484,298,572 12, 334,468,908 0.85

The absolute liquid ratio is increased in 2009-10

3. Debt equity ratio

Debt equity ratio is also known as external, internal equity ratio is

calculated to measure the relative claims of outsiders and the owner

against the firm assets. The financing of total assets of business concerns

done by owner’s equity as well as outsider’s debt. This ratio indicate the

relationship between the external equities or the share holders fund.



Debt equity ratio = Outsider’s funs/ shareholder’s fund

Debt equity ratio for the year 2005-06 to 2009-10 is as follows:

Year Outsider’s Fund Shareholder’s fund Ratio

2004-05 18,506,331,139 2,943,835,475 6.28

2005-06 22,563,000,765 3,198,520,937 7.05

2006-07 26,290,842,495 3,269,895,251 8.05

2007-08 33,349,509,288 3,447,009,077 9.69

2008-09 30,235,719,000 3,779,464,875 8.00

The debt equity ratio increased in 2008-09 but it but it was decreased in

2009-10 due to depression period.

4. Funded debt to capitalization ratio:

The ratio establishes a link between the long term funds raised from

outside and total long term funds available in business:

Funded debt to total capitalization ratio = ( funded debt/ total

capitalization) x 100

Funded debt to total capitalization ratio for the year 2005-06 to 2009-10

is as follows:

Year Funded Debt Total Capitalization Ratio

2004-05 2,140,779,754 2,611,895,352 0.82

2005-06 4,618,937,904 3,673,552,139 1.25

2006-07 12,514,136,802 13,211,822,727 0.95

2007-08 7,781,255,848 10,648,030,059 0.73

2008-09 8,468,978,322 9,409,975,913 0.90

The funded debt to total capitalization ratio is increased maximum in 2006-07



5. Equity or proprietary Ratio:

This ratio establishes the relationship between shareholder’s funds to

total assets of the firm.

Equity or proprietary ratio = ( shareholder’s fund/ total assets x 100

The equity ratio for the year 2005-06 to 2009-10 is as follows:

Year Shareholder’s Fund Total assets Ratio

2004-05 2,943,835,475 21,453,862,751 0.14

2005-06 3,198,520,937 25,773,075,463 0.13

2006-07 3,269,895,251 29,464,856,352 0.11

2007-08 3,447,009,077 36,845,691,827 0.09

2008-09 3,779,464,875 45,521,470,057 0.08

The proprietary ratio is increased in the year 2005-06 , and then

decreases.

6. Solvency Ratio:

The ratio indicates the relationship between total liabilities to outsiders

total liabilities to total assets of firm and can be calculated as follow:-

Solvency Ratio = ( total liabilities to outsiders/ total asset) X 100

Solvency ratio for the years 2005-06 to 2009-10 is as follows:

Year Total liabilities to

outsiders

Total asset Ratio

2004-05 15,022,967,513 21,453,862,751 0.70

2005-06 15,117,126,662 25,773,075,473 0.59

2006-07 16,340,008,434, 29,494,856,352 0.55

2007-08 33,394,509,289 36,845,691,827 0.91

2008-09 45,521,470,382 45,521,470,057 1.00

The solvency ratio increases in 2008-09.



7. Return on capital employed:

Return on capital employed established the relationships between profit

and the capital employed is the primary ratio and is most widely used to

measure the overall profitability and efficiency of the business.

Return on capital employed = ( net profit/ total capital employed X 100 )

Year Net Profit Total Capital Percentage

2004-05 174,0443,023 2,191,252,452 7%

2005-06 196,964,998 2,493,044,929 8%

2006-07 91,603,261 2,715,073,550 3.37%

2007-08 97,231,865 2,621,037,124 4.03%

2008-09 96,910,330 2,040,217,500 4.75%

The return on capital employed for the year 20089-09 is increased as

compared to 2007-08

8. Return on equity capital:-

In ordinary, shareholders are the real owners of the company, They

assume the highest risk in the company. It establishes the relationship

between net profit and equity capital.

Return on capital employed = ( Net profit / Equity capital ) X 100

Return on equity capital for the year ended 2004-05 to 2008-09 as

follows:



Year Net Profit Equity share Percentage

2004-05 174,43,023 4,500,000 38.79%

2005-06 196,964,998 4,500,000 43.76%

2006-07 91,603,261 4,500,000 20.35%

2007-08 97,231,865 4,500,000 21.61%

2008-09 96,910,330 4,500,000 21.53%

The earning per share is increased up to 2005-06 and decreases in 2006-

07.

9. Earnings per share (EPS)

Earning per share are a small variation of return on equity capital. It

shares that net profit available to equity shareholder and number of

equity share outstanding.

Earning per share = (Net profit / No of equity shareholders ) X 100

Earning per share for the year 2004 -05 to 2007-08 are as follows :-

Year Net Profit Equity share Percentage

2004-05 174,443,023 4,500,000 38.79%

2005-06 196,964,998 4,500,000 43.76%

2006-07 91,603,261 4,500,000 20.35%

2007-08 97,231,865 4,500,000 21.61%

2008-09 96,910,330 4,500,000 21.53%

The earning per share is increased up to 2005-06 and then decreases.



ORISSA STATE CO- OPERATIVE BANK LTD. BBSR

P/L ACCOUNT FOR THE YAER ENDING 31.03.2010

EXPENDITURE ( Amount in lakh )

Particulars 2006-07 2007-08 2008-09 2009-10

Interest paid on Deposits

& Borrowings

1395937255.58 1742121619.02 2370535326.73 3027935139.08

Salary & Allowances 94960048.95 144470099.70 119878998.60 145746368.26

Director & Local

Committee Members

215659.00 577892.96 941018.46 2333326.18

Rent , Taxes &

Insurance

14894381.83 18936824.89 17740328.26 15018657.65

Law Charges legal

expenses

1241822.90 1206672.00 918739.00 1119506.00

Postage telegram 1590337.13 2010979.47 1635528.86 1714171.54

Audit fee 159142.00 331484.00 288890.00 389382.00

Depreciation & repair 17964933.26 17201877.68 16637597.76 15637990.23

Stationary and

advertisement

3447826.96 3529339.49 3091984.41 4091486.83

Other expenditure 119142242.98 79578931.58 63948683.32 107582799.91

Balance profit 91603261.57 97231865.85 96910330.18 103437258.82

Total 1741156912.16 2107197586.64 2692527425.52 3491798526.50



Income (Amount in lakh)

Particulars 2006-07 2007-08 2008-09 2009-10

Interest &

Discount

1691129945.33 2085494315.36 2673633013.04

3454856261.10

Commission,

Exchange &

Brokerage

8295349.24 10936979.41 12259922.72 22339495.13

Subscription

& Donation

00 00 00 00

Income from

non Banking

Asset &

Profit from

sale of such

asset

00 00 00 00

Other receipt 41731617.59 10766291.87 6634489.76 14602770.27

Total 1741156912.16 2107197586.64 2692527425.52 3491798526.50



Financial Statement of OSCB Bank Ltd

Balance sheet on 31.03.2010

Capital & Liabilities

Particulars 2005-06 2006-07 2007-08 2008-09 2009-10 Share Capital 643,798,225 697,685,925 713,758,300 734,312,050.00 744,130,850.00

Reserve fund

and other

reserves

1,849,246,713 2,017,387,326 2,153,015,911 2,224,524,285 2344987132.00

Deposit and

other account:

Fixed

Deposit

Saving

Bank

Deposit

11,380,225,322

477,692,338

11,826,847,907

694,462,338

14,322,080,095

681,158,815

21,494,019,073

826,925,335

31674926705.00

1049334572.00

Borrowings

From

RBI/NABAR

D

a. Short term

loan

b. Medium

term loan

c. Long term

loan

ii. From state

govt.

iii. From other

institutions.

4,924,479,000

3,045,867,400

1,180,507,200

42,563,304

350,000,000

5,658,399,000

2,935,393,200

1,399,153,800

22,979,414

21,498,211,388

8,678,069,000

2,722,643,500

2,049,333,100

9,271,248

3,000,000,000

10,054,262,00

1,034,983,565

2,632,674,000

5,390,587,

3,500,000,000

12500000000

1461481220

3392465300

4707964

5000000000

Bill Payable 11,553,760 3,813,252 4,173,480 4,969,967 6881775

Overdue

interest

reserved

508,511,000 554,822,000 483,003,000 490,300,000 355182729

Interest

Payable

749,918,675, 505014456 916358147 1325571665 2306862680

Other

Liabilities

138,066,697 151770520 156146042 315370443 255985025

Profit and loss 196964997 91603261 97231866 96910330 103437258



PROPERTIES AND ASSETS

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

Cash 747,205,922 1095019529 1389999078 1333349677 2789653910

Balance with

other Bank

19458795 5219215 9127365 3747397 30782957

Money call

& short

notice

1156748608 2,192908958 8677832820 16639307325 23657507325

Investment 5947778710 5666979089 5645567938 6273729094 9279074630

Advance:

i. Short term

loan

ii. Medium

term loan

iii.Long term

loan

iv.Gold loan

10326557051

4472867228

201821700

4410867

12167837492

4485775141

2718261125

4251114

13971051846

2818531527

3266842342

7349504

13803589684

2004124495

3989679296

15385075

17720786352

2458112504

4691336724

18302736

Interest

receivable

877704404

978103360

871631465 867494919 1004288426

Bills

receivable

11553760 3813252 4173481 4969968 6881775

Adjusting

head

13785553 1498320 28665848 432980110 424241545

Premises 30432571 33528111 32629127 31046213 28901593

Furniture

and fixture

and fixtures

less :

depreciation

40988885 37170507 34150138 30678539 30189783

Other asset 105366100 104491197 88139347 91388268 186111456

Non Banking

assets

acquired in

certification

of claims

Nill Nill Nill Nill Nill

Profit &

Loss

Nill Nill Nill Nill Nill



INTERPRETATION

CAPITAL & LIABILITIES

1. The common size balance sheet from 2005-10 included that there are nearly

equal existence of share capita or very small change year to year.

2.Reserve fund & other reserve are nearly equal to each other . In

2007,2008,2009,2010 was 20173.87,2530.16,22745.24,23449.87 respectively.

3.Owned fund will increase year to year in 2007,2008,2009,2010, was

27150.73,28667.74,29588.36,30891.18respectively .

4.Deposit will be vary year to year 2007,2008,2009,2010 was

129586.23,156626.80,231022.01,33850049 respectively .

5.Borrowing also increase year to year in 2007,2008,2009,2010 was

125147.37,166593.25,172273.10,223586.54 respectively.

6.Investment will increase year to year in higher percentage in

2007,2008,2009,2010 was 78598.88,143234.01, 229130.36,329365.82,respectavily

7. Advances will vary year to year in 2007,2008 was 193761.22,200637.75. But

2009 decreases 198127.78 & 2010 it increases 248885. 38.

8. Cost management will also change year to year in 2007,2008 it was

1679.00,2678.43.But 2009 it was decreases 1864.72 & in 2010it increases to

2292.83.

9. Working capital also increase year to year but in 2010 it increases highly that is

622117.45.

10. Net Profit will also vary year to year in 2007 ,2008 was 916.03,972.32. But in

2009 decreases to 969.10 and increase in 2010.1034.37.

11. Dividend declared also increase highly in 2008 but in decrease in 2009 as

compare to the year 2008.



PROPERTIES AND ASSETS

1. The cash amount is maximum in 2009 -10 as compared to 2008-09.It

increase 109.22% in 2009-10 as compared to the pervious year.

2. Balance with other bank in2008-09 was 3747396.65 and in 2009-10 it

increase to 30782957.65.

3. Money at call and short notice in 2008-09 was 16639307325.00 and

in 2009-10 it increase s to 23657507325.00.

4.Investment in 2008-09 was 6273729094.00 and it increases 2009-10 to

9279074630.00.

5. Loan and advances also increases in 2009-10 as compared to 2008-09

that is 19812778550.14 to 24888538318.17.

6. Interest receivable increases I 2009-10 to 1004288426.63as compared

to 2008-09.

7. Bill receivable being the bill lodged as per contra in 2008-09 was

49.69 lakh. But it increases in 2009-10 to 68.81 lakh.

8. Adjusting head in the year 2008-09,4329.80lakh. But in 2009-10it

decreases to 4242.41 lakh.

9. The premises of the continuing year are following down slowly in

2008-09 it was 310.46 lakh but in 2009-10 it decreases to 289.01lakh.

10. Furniture & Fixture less depreciation was in 2008-09 Rs.

306.78lakh. It decreases in the year 2009-10 to Rs.301.89lakh.

11. Other asset will be purchase by bank in 2010 which indicates to

improvement of bank and it will increases Rs.1861.11lakh in the year

2009-10.

12. Profit also increase year to year.



FINDINGS

1. As a convention of current ratio the maximum of 2:1 is referred to as

a bank’s rule of thumb but in 2004-05 states not so satisfactory. Thus,

from the current ratio analysis, bank’s overall liquid position is

satisfactory.

2. The standards norm or absolute liquidity liquidity ratio is is 0.5:1. But

in case of O.S.C.B absolute liquidity position is satisfactory.

3. In case of debt equity ratio of O.S.C.B outsides fund has increased

over the year, which states that the claims of outsiders are greater than

those owners.

4. In case of funded debt to total capitalization ratio says that there is no

rule of thumb. But still the lesser is the better, i.e., up to 50% or 55% So

funded debt to total capitalization ratio of O.S.C.B is satisfactory.

5. The proprietary ratio of O.S.C.B over the year shows that business

concern becomes more dependent upon creditors to supply its working

capital.

6. The concern assets to proprietary fund of the bank are very high over

the year it means that proprietary’s fund of bank over the year are not

satisfactory.

7. The fixed assets to proprietary’s fund of the bank over the year are not

satisfactory.



8. The solvency ratio of O.S.C.B is high over the year but low

percentage is satisfactory. It indicates the long term solvency position of

the company is not so good.

9. The fixed asset to current assets of O.S.C.B is very high which has

reminded idle that is not satisfactory to the company

10.The return on assets of O.S.C.B is satisfactory that is the resources of

the organization were being used properly.

11.The return on equity capital of O.S.C.B provides a higher rate of

dividend to its equity shareholders.

12. The return on equity capital of O.S.C.B provides a higher rate of

dividend to equity shareholders.

13. The earnings per share of O.S.C.B over the year have gradually

increased which is satisfactory to the equity shareholders.



SUGGESTION

Invest the ideal money ineffectively and efficient manner.

Keep the financial position better and incest the fund in the right time

and right place.

Increase share capital rather than debt capital.

Select the standard performance try to over the stand and performance

The Performance and facility should be better than other commercial

bank.

Increase the return on investment, so that, the share capital should be

increased easily.

Less amount of borrowing givens a good financial position.

Invest amount of borrowing gives a good financial position.

Invest long term, so that it decrease liquidity of the firem

Modernized occurring to the other organization and policy.

The modernized rules and regulation must be suitable for the

customer, employees and employer.

Increase the personal transaction and individual savings.

The current account operation should give minimum operating cost.



All type of modern systems should be used for better performance.

The bank should focus more on advancing long and getting money

from depositors

It should recover its money from defaulters in a limited time.

It should control the non-operation expenses and other.

It should ready for the coming competition as because all bank are

going to be privatized.

It should diversify its business and should given longs to

nonagricultural sectors.



CONCLUSION

From all the above interpretation we many conclude that the overall

performance of the bank is satisfactory. The growth rate of the bank

shows a sound position. The organization does not utilize its assets.

From the discussion we can say that the market value per share is low

and book value of the share is high. The bank has been earning profit

since its inception and continuously pauing dividend to its shareholders.

All the branches and extension counters of the bank are fully

computerized to provide efficient customer service.

The OSCB have designed its loan policy document and manual of

instruction with a broadly concept minimizing its credit facilities to the

right borrowing. It is the most leading bank in the sector of the co-

operative and it can all types of financial facilities to the customer for

challenge to the modern private and Govt. Banks.



BIBLIOGRAPHY

1. Chandra Prasad : Financial Management, Theory & Practice

2. Khan M.Y & P.K. Jain : Financial Management

3. Pandey L.M : Financial Management

4. Sharman R.K &

Shashi K. Gupta : Management accounting

REFERENCES :

1. Annual report (2008-09) : O.S.C.B. Ltd

2. Annual Report (2009-10) : O.S.C.B. Ltd

3. Web –site : www.oscb.coop

project report of oscb 11

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