1

2
INDEX
3
NO. PARTICULARS PAGE NO.
1. History of banin! in In"ia 1#
2. D$%$&o'($nt of banin! s$)tor 12
3. Str*)t*r$ of banin! 13
+. Co,o'$rati%$ s$)tor 1+
-. Or!anisation str*)t*r$ of )o,o'$rati%$ ban 1-
.. Ty'$ of )o,o'$rati%$ ban 1.
/. Ro&$ of )o,o'$rati%$ ban 1/
HISTOR0 O1 2AN3ING IN INDIA

As early as 2000 B.C., the Babylonians has developed a banking
system. There is evidence to show the temples of Babylon were used as banks. After a
period of time, there was a spread of irreligion, which soon destroyed the public sense
of security in depositing money and valuable in temples. The priests were longer
acting as financial ! agents. The "omans did minute regulations, as to conduct
private banking and to create confidence in it. #oan banks were also common in
"ome. $rom these the poor citi%ens received loans without paying interest against
security of land for & or years.
'uring the early periods, although private individuals mostly did the
banking business, many countries established public banks either for the purpose of
facilitating commerce or to serve the government.
(owever upon the revival of civili%ation, growing forced the issued in
the middle of the )2
th
century and banks were established at *enice and +eneva. The
bank of *enice established in ))!, is supposed to be the most ancient bank.
-riginally, it was not a bank in the modern sense, during simply an office for the
transfer of the public debt.
Again the origin of modern banking may be farced to the money
dealers in $lorence, who received money on deposit and were lenders of money in
the )th century and also in )&., the business of banking was carried on by
drapers of Barcelona.
+
/n /ndia as early as the *edic period, banking in most crude from
e0isted. The books of 1anu contain reference regarding deposit, 2ledges policy of
loans, and rate of interest. True, the banking in these days largely mint money
lending and they did not know the complicated mechanism of modern banking.
This is true not only in the case of /ndia but also of other countries.
Although, the business of banking is as old as authentic history, banking
institutions have since than changes in character and content very much. They
have developed from a few simple, operations involving the satisfaction of a few
individual wants to the complicated mechanism of modern banking, involving the
satisfaction of the capital slowly seeking employment and thus proving the very
life blood of commerce.
-
DE4ELOP5ENT O1 2AN3ING SECTOR
$inancial system of any country consists of speciali%ed and non
speciali%ed financial institutions, of organi%ed and unorgani%ed financial markets,
of financial instruments and services that facilitate transfer of funds. The word
3system4 in the financial system implies a set of comple0 and closely connected
and interlinked institutions agent5s practices, markets, transactions, claims and
liabilities in the economy.
Banking in /ndia has its origin as early as the *edic period. /t is
believed that the transition from money lending to banking must have occurred
even before 1anu, the great (indu 6urist, who has devoted a section of his work to
deposits and advances and laid down rules relating to rates of interest.
The 3+eneral Bank of /ndia4 was the first 6oint stock bank to be
established in the year ),78 the other which followed, were the 3Bank of
(industan4 and the 3Bengal Bank4. The three banks established 3 Bank of Bengal4
in )70., the 3Bank of Bombay4 in )70 and the 3Bank of 1adras 3in )7&. These
three bank amalgamated in ).20 and new bank the 3/mperial bank of /ndia4 was
established on 2,
th
9anuary ).2). :ith the passing of the 3;tate Bank of /ndia4
Act in ).!! the undertaking of the 3/mperial Bank -f /ndia4 was taken over by the
newly constituted 3;tate Bank -f /ndia4. The 3"eserve Bank -f /ndia4 as the
central Bank of Country was created in ).&! by passing 3"eserve Bank of /ndia4
Act ).&. A number of banks with /ndia management were established in the
.
country namely 32un6ab <ational Bank #td4 the 3Central Bank of /ndia4 ) ma6or
bank of the country were nationali%ed, 8 more commercial banks, co=operative
banks, rural banks, agricultural banks, etc. The co=operative banks are diversified
into speciali%ed are as like car finance, housing loans, track finance, etc.
STRUCTURE O1 2AN3ING
/
Structure of Indian Banking System
Structure of Indian Banking System
Unorganized
Unorganized
Organized
Organized
Licensed
Creditors
Licensed
Creditors
Unlicensed
Indigenous
Money
Lenders
Unlicensed
Indigenous
Money
Lenders
Reserve
Bank of
India
Reserve
Bank of
India
Commerci
al Banks
Commerci
al Banks
Co-
operative
Banks
Co-
operative
Banks
u!lic Sector
u!lic Sector
rivate Sector
rivate Sector
State Co-
operative
Banks at State
Level
State Co-
operative
Banks at State
Level
Central Co-
operative
Banks at
"istrict
Central Co-
operative
Banks at
"istrict
Rural rimary Co-
operative Banks at
#illage $ %o&n Level
Rural rimary Co-
operative Banks at
#illage $ %o&n Level
CO,OPERTI4E SECTOR

The co=operative banking sector bin /ndia compressing urban
banks and rural cooperatives banks such as ;tate Cooperative banks and districts
central cooperative banks has an e0tensive branch network and reach in the remote
areas smaller as compared to scheduled commercial banks, cooperative banks
constituted an important segment o the /ndian banking system and have
traditionally played an important role in creating banking habits among the lower
and middle income groups and in strengthening the rural credit system.
D$finition6,
7Co,o'$rati%$ is for( of or!ani8ation 9:$r$ in '$rsons %o&*ntary
to!$t:$r as :*(an on basis of $;*a&ity for t:$ $)ono(i) int$r$st of
t:$(s$&%$s.<
Characteristics of co=operative bank
*oluntary association
-pen membership
>?ual voting rights
;ervice 1otive
=
Organizational
structure of
co-operative
banks
State
co-operative
bank
District
co-operative
banks
Primary
co-operative
banks
Organizational structure of co-
operative !anks
>
T0PES O1 THE CO,OPERTI4E 2AN3S
Stat$ Co,o'$rati%$ 2ans 6,
The ;tate co=operative bank is a federation of central co=
operative banks and acts as a watchdog of the co=operative banking structure in
the ;tate. /ts funs are obtained from share capital, deposits, loans and overheads
from the reserves Bank of /ndia. The ;tate C-=operative Banks lend money to
Central Co=operative bank and primary societies and not directly to framers.
Pri(ary Co,o'$rti%$ Cr$"it So)i$ti$s 6,
The 2rimary cooperative credit society is an associations of
borrows and non=borrowers residing a particular locality. The funds of the
society and derived from the share capital and deposits of members and loans
from Central Co=operative Banks. The borrowing power of the members as well
as of the society is fi0ed. The loans are given to members for the purchase of
cattle, fodder, fertili%er, pesticides, implements etc.
C$ntra& Co,o'$rati%$ 2ans 6,
There are federations of primary credit society in a district and are of
2 type5s those having membership of 2rimary societies only those having a
membership of societies as well as individuals. The funds of the bank consists
1#
of share capital, deposits , loans and overdraft from the ;tare Cooperative banks
and 6oin stocks .theses banks finance member societies within the limit of the
borrowing capacity of societies within the limits of the borrowing capacity of
societies. They also conduct all the business of a 6oint=stock bank.
RDC is district level co=operative bank working successfully to
serve their customers.
ROLE O1 CO,OPERTI4E 2AN3S
"ole of the co=operative banks play an important role in the economic
development of the country in rural areas they have touched the lives of agricultural
and small artists. /n urban areas they help the small sector in a big way. (owever,
over the years they have become weak. :ith a view to grow in a competitive world
they to re=oriented, re=focus and adopt technology to serve their clement with
tailor=made new products coupled with professionali%ation. At the same time free
them from the political interference as well as dual controls. $ocus on enhancing co=
operative spirit for economical development. /t is high time to bring the benefits of
the technology revolution to co=operative sector to enhance their efficiency and
bring in effective cost=saving.
/f the government and "B/ take right decision towards ushering in
vibrant co=operative movement, it is certain that co=operative movement in the
ensuring 2)
st
century will emerge as a strong powerful force of our economy. /n this
connection, we can echo the voice of the
7If )o,o'$rati%$ fai&s? t:$r$ 9i&& fai& t:$ b$st :o'$ of In"ia<
And it must succeed because co=operatives are really
11
71or t:$ '$o'&$? of t:$ '$o'&$? by t:$ '$o'&$.<

Co=operatives have been recogni%ed as the best intuitions for supplying
interpolative, cheapest sound and dynamic credit to the small borrows particularly
to the priority sector. They are the peoples trusted friends, faithful philosopher and
best guide as also the golden goose of socio=economic change towards better
tomorrows.
12
INDEX
NO. PURTICULAR PAGE.
NO.
1 Intro"*)tion 2#
2 History@ "$%$&o'($nt of RDC ban 21
3 Or!ani8ation str*)t*r$ 22
+ 4ision? (ission an" %a&*$s 23
- Trainin! )$nt$r 2+
. Profi&$ of t:$ ban 2-
/ 2ran): n$t9or 2.
= 3$y in"i)ators of t:$ ban 2/
9 A):i$%$($nts of t:$ ban 2=
10 Ot:$r a):i$%$($nt 31
INTRODUCTION
The co=operative bank of "a6kot ltd. popularly known as RDC bank is
established on 1>-> under the strong, effective leader ship of one of the national co=
13
operative hero honor ;hri 4it:a&b:ai Ra""iya with the intention of survive the
common man.

The local intensity of the bank in its customer centric approach, hassle free
e0ecution of the decision @ technologies are their main difference from commercial
banks, also high level of commitment at all levels of management @ self committed
ground level staff makes them different from other commercial banks.
At present RDC bank has achieved a key position in the market of saurashtra.
/t has )&0A) (.-. in all over ;aurashtra including main branch with the advanced
technologies and educated staff, as it said that 3/n the emerging competitive business
environment Co=operative banks who adhere to strict financial discipline. -nly will
survive4 -n this basis at present RDC bank is becoming more prestigious in the
banking sector.
HISTOR0 @ DE4ELOP5ENT O1 RDC 2AN3
S:r$$ RaAot "istri)t )o,o'$rati%$ ban &t". >stablished on )
st
-ctober, ).!.. Then after it always get more and more achievements today. There
1+
are total ,.) officers in )2. branches including main branch also among them.
1ore than )70 officers are being trained at 2une, Bangalore and #akhnow. They
are sent for training according to the rotation of activity. This bank getting license
in )
th
;eptember, ).. for banking business from the reserve bank. $rom the last
. years they are getting first number for recovery get in all over state. According to
the rules of the government they are paying ma0imum dividend from last )0 years.
There are their own buildings in !0 branches and locker facility is available in !,
branches. Among total loans 72B loans are from priority sector. $or the plant of
providing the credit card of the governmentC this bank is providing the loan of ).!2
lacks for production to the user of kisan credit card. $rom among the total deposit
lowest deposit is &8B. 1anagement cost remains always 2B and in this year it is
only ).77B and financially margin is &.2&B and <.2.A. is &.,8B. $or providing
the insurance of "s.) lac to all the loan takersC the loan takers parse all the e0press
for the areas. $or the best activity in all the banks would get 3Best 2erformance4
Award. 1erit certificate and price of "s.! lackC <2A is o from last & years.

$armers are needs to the money for increasing their farm production at
different like seedsC new medicinesC fertili%ers and new technology. That all the
loans are provided by district co=operative banks, commercial and citi%en banks.
This bank is getting 3A4 class of audit and Bank is paying ma0imum
dividend of )!B to its member societies. 2rogress of the bank is shows in following
tables at last si0 years.
ORGANISATION STRUCTURE
1-
4ISION?5ISSION AND 4ALUES
4ISION
Technologically ;trong
$inancially ;ound
1.
All /ndia 2resence
2ersonali%ed ;ervices
*alue 1a0imi%ation
>mployee ;atisfaction
;kill 1a0imi%ation
5ISSION
Be the 1ost 2referred Bank
#everaging Technology
'evelop #ifelong "elationship
with Customers @ Create *alue for
>mployees and ;takeholders
4ALUES
7To!$t:$r B$ Pros'$rC
2eople are our most important asset. At Cooperative you will find modern facilities
combined with old=fashioned=courtesy. :e like to think of our customers as friends.
:e feel that the warm smile of a teller or the helpful suggestion of a customer
service representative is what keeps customers coming back.
1/
TRAINING CENTER
1=
PRO1ILE O1 THE 2AN3
2RANCH NETBOR3S
1>
Na($ of t:$ Co('any 6 "a6kot district Co=-perative Bank #td.
0$ar of $stab&is:($nt 6 ).!.
A""r$ss 6 "a6kot district Co=-perative Bank #td.
39illa Bank Bhavan4,
Dasturba "oad,
"a6kot E &8000).
P:on$ No. 6 027)=22&)8!0=!)=!2=!2.
R$!ist$r$" Offi)$6 "a6kot district Co=-perative Bank #td.
39illa Bank Bhavan4,
Dasturba "oad,
"a6kot E &8000).
R$!istration No.6 2.0F).!.
B$bsit$6 www. RDC bank.in
E,(ai& A""r$ss6 infoG RDC bank.in
1or( of or!ani8ation6 Co=-perative #td.
Borin! Days 6 1onday to ;aturday.
Ti(in! 6 )0F&0 to !F&0.
B$$&y Off6 ;unday.
2r$a 2F00 to 2F&0
2ran):$s 6 )&) Branches
A))o*ntin! 0$ar6 )
st
April to &)
st
1arch
A*"itor ".'.;hah
A))o*ntants B.1.;angani.
2resently the bank has been licensed )&) branches by the "B/. RDC
bank is taking greatest care to ensure that each branch is a compressive reflection
of the brand. All branches are fully computeri%ed.
;trategically located, designed and e?uipped to consistently deliver a
new Eage branch banking e0perience. All the branches are very well managed by
well trained staff and maintain the reputation of the bank. "ecently RDC bank has
made reserve of "s ! crores for the development of the )or$ banin! syst$(.
2#
3E0 INDICATORS O1 THE 2AN3
DR*'$$s in &a)sE
Parti)*&ar 1>>1,1>>2 1>>>,2### 2##/,2##=
;hare capital 87) )0)8 2!)!
"eserve @ other funds ),). !07) )07!7
'eposits )2.)! !)!22 .72))
/nvestments 7.8 &)!02 8,8!0
<et profit 2## ..- 21##

CURRENT 0EAR6
Parti)*&ar ;hare
capital
"eserve @
other funds
'eposits /nvestments <et profit
2#11,12 &0,2 )&,)0 )!!.7 )08!2 13-#
21
ACHIE4E5ENTS O1 THE 2AN3
T(> C>"T/$/CAT> A:A"'>' BH <ABA"' $-" T(> B>;T 2>"$-"1/<+ 'CCB /<
T(> ;TAT -$ +I9A"AT $-" T(> H>A" )..7=)....
T(> C>"T/$/CAT> A:A"'>' BH <ABA"' $-" T(> B>;T 2>"$-"1/<+ 'CCB
/< T(> ;TAT -$ +I9A"AT
$-" T(> H>A" 1>>/,>=
22
THE CERTI1ICATE ABARDED 20 NA2ARD 1OR THE 2EST
PER1OR5ING DCC2 IN THE STAT O1 GUFARAT
1OR THE 0EAR 1>>>,2###
T(> C>"T/$/CAT> A:A"'>' BH <ABA"' $-" T(> B>;T 2>"$-"1/<+ 'CCB /<
T(> ;TAT -$ +I9A"AT
$-" T(> H>A" 2###,2##1
23
T(> C>"T/$/CAT> A:A"'>' BH <ABA"' $-" T(> B>;T 2>"$-"1/<+ 'CCB /<
T(> ;TAT -$ +I9A"AT
$-" T(> H>A" 2##3,2##+
2+
OTHER ACHIE4E5ENT
Bank is paying ma0imum dividend according to the previous of the act,
since last )! years
;ince last ) years Bank is maintaining first rank in +u6arat state for best
recovery performance.
All )&) Branches A (.-. are fully computeri%ed
#ast && year5s bank is obtaining Audit class 3A4
Bank has obtained loans of "s. 78 crores
This bank is the first to launch 31ahal0mi ;elf (elp credit Card4
scheme for the members of self help groups with the motto getting loan
smoothly from the bank.
Bank is first in /ndia for launching 3;mart Dishan Credit4 from year 200=
0! as a additional facility of D.C.C. holder.
2-
3 0EAR 2ALANCE,SHEET
2.
PRATICULAR 5ar,#= 5ar,#> 5ar,1#
LIA2ILITIES
SHARE CAPITAL 25,74,45,677 27,44,77,350 30,71,45,150
RESER4E 1UND 1,20,48,89,067 1,29,57,09,905 1,37,10,71,792
DEPOSITE 10,77,89,24,476 12,43,66,11,882 14,55,98,67,705
STATE PATNERSHIP
1UND AGC
5,98,456 3,18,460 1,07,500
2ILL 1OR COLLECTION 2,34,56,456 1,80,38,318 1,20,42,570
ADFUST5ENT 4,56,78,890 3,88,63,523 3,36,24,503
RESER4E 1OR INTEREST 3,98,89,568 3,81,60,936 3,79,18,410
LIA2ILITIES 4,56,98,76,208 3,34,98,73,500 1,72,33,69,200
2AN3 INTEREST 31,47,598 27,01,172 23,34,857
5E52ER COLLECTION
CONTRACT
5,01,48,789 3,68,86,849 3,28,52,870
PA0A2LE INTEREST 1,26,78,854 1,76,96,695 2,03,29,699
OTHER
RESPONS2ILITIES
14,27,09,675 16,05,89,397 16,24,83,537
P @ L AGC 4,98,25,000 ,,,!,00,000 )),80,70,000
TOTAL 7,47,82,06,685 15,10,39,85,187 1-?2/?-3?+.?/>3
2/
PRATICULAR 5ar,#= 5ar,#> 5ar,1#
ASSETS
CA;( 27,86,74,890 30,27,56,416 35,57,60,597
BA<D CA;( 2,68,98,37,689 5,09,02,49,426 6,29,83,71,200
/<*>;T1><T 1,02,87,38,500 1,17,56,06,000 3,18,52,01,000
2AT><>";(/2 $I<' /*T 5,89,429 3,18,460 1,07,500
$/<A<C> 3,25,89,43,278 6,01,28,73,538 7,15,18,04,857
C-<T"ACT 4,34,29,689 3,68,86,849 3,28,52,870
/<T>">;T 42,28,69,350 35,73,96,379 28,77,04,390
B/## ">C>*AB#> 2,24,47,610 1,80,38,318 1,20,42,570
BI#'JA$T>" '>2<K 11,23,59,905 10,64,85,715 10,21,08,984
$I" @
C-1JA$T>"
'>2<K
6,87,46,598 6,09,32,101 5,78,71,454
-T(>" /*T 12,50,45,000 14,06,54,566 15,90,14,727
CA#/1; 1,98,55,700 1,77,88,000 65,21,00
2"-$/T @ #-;; ALC 3,97,53,720 &,0!,.!,2) 2,88,.8,&0&
TOTAL 7,47,82,06,685 15,10,39,85,187 1-?2/?-3?+.?/>3
3 0EAR P @ L AGC
PARTICULAR 5ar,#= 5ar,#> 5ar,1#
INCO5E
/<T>">;T -< /<*T. @
'>2.
1,29,43,70,370 1,47,08,75,420 1,48,64,52,816
C-11/;;/-< @
B"-D>"A+>
1,55,70,045 1,76,93,233 2,13,61,612
<-< BA<D/<+
/<C-1>
54,405 61,824 19,98,037
2"-*/;/< @ ">;>"*> ---- ---- 5,35,05,489
-T(>" /<C-1> 2,47,04,943 2,20,57,985 1,99,80,074
-IT;A<'/<+ TAM ---- ---- 2,33,267
TOTAL 1,32,94,05,848 1,51,06,88,463 1,58,35,31,297-
PARTICULAR 5ar,#= 5ar,#> 5ar,1#
2=
EXPENSES
/<T>">;T -< '>2-;/T 72,86,75,739 82,80,40,612 85,95,70,450
;A#A"H @ 2.$ 22,45,56,782 25,51,78,162 35,35,29,198
'/">CT-" $>>; 5,27,292 5,99,196 6,61,085
"><T, TAM,
#/+(T >TC.
1,68,31,987 1,91,27,259 2,17,60,312
#A: C("+>; 11,08,771 9,89,974 5,86,203
T>#>2(-<>
B/##
41,51,400 37,06,607 30,85,461
AI'/T-"; $>>; 36,75,206 32,81,434 16,19,339
'>2"/C/AT/-< 1,88,48,049 1,68,28,612 1,57,19,231
;TAT/-<A"H @
2"/<T/<+
31,44,789 35,73,624 35,87,493
#-;; J-T(>" T(A<
BA<D/<+K
31,482 28,109 11,692
-T(>" >M2><;>; 1,62,96,821 1,85,19,115 10,72,86,210
-T(>" 2"-*/;/-< 25,44,59,725 22,71,96,183 8,11,14,620
'/$A"' TAM 29,33,920 26,19,572 ----
2"-$/T @ #-;; ALC 13,50,00,000 13,50,00,000 13,50,00,000
TOTAL 1,32,94,05,848 1,51,06,88,463 1,58,35,31,297-




2>
3#
INDEX
31
NO. PURTICULAR
) /ntroduction
2 +ross 2rofit "atio
& <et 2rofit "atio
"eturn on Total Asset "atio
! Current "atio
8 Nuick "atio
, 'ebt >?uity "atio
7 :orking Capital Turnover "atio
. "eturn on >?uity Capital "atio
INTRODUCTION
1inan)ia& '$rfor(an)$ ana&ysis
$inancial performance analysis Jalso referred to as financial statement analysis or
accounting analysisK refers to an assessment of the viability, stability and
profitability of a business, sub=business or pro6ect.
/t is performed by professionals who prepare reports using ratios that make use of
information taken from financial statements and other reports. These reports are
usually presented to top management as one of their bases in making business
decisions. Based on these reports, management mayF
Continue or discontinue its main operation or part of its businessC
Ac?uire or rentLlease certain machineries and e?uipment in the production
of its goodsC
/ssue stocks or negotiate for a bank loan to increase its working capitalC
1ake decisions regarding investing or lending capitalC
-ther decisions that allow management to make an informed selection on
various alternatives in the conduct of its business.
32
5$t:o"s of a''raisin! finan)ia& '$rfor(an)$
The methods consists of a study of relationship and trends to determine whether
or not the financial position and results of operations as well as the financial
progress of the company are satisfactory or unsatisfactory. The analytical methods
or devices, listed below are used to ascertain the relationships among financial
statements items. The fundamental ob6ective of any analytical method is to
simplify or reduce the data under review to more understandable term.

The Analytical methods and devices used in analy%ing financial performance are
as followF
)K Comparative ;tatements
2K Common si%e ;tatements
&K Trend "atios
K Cash $low ;tatements
!K "atio Analysis
Ratio ana&ysis
According to 9. BATTH 3The term ratio is used to describe significant
relationships which e0ist between figures shown in balance sheet, 2 @ # account,
and budgetary control system or in any other part of the accounting organi%ation.4
"atio analysis is one of the techni?ues of financial analysis where ratios are used
for evaluating the financial condition and performance of a firm. Analysis and
interpretation of various accounting ratios gives a skilled and e0perienced analyst,
a better understanding of the financial condition and performance of the firm than
what he could have obtained only through a perusal of financial statement. "atios
33
are relationships e0press in mathematical terms between figures which are
connected with each other in some manner. "atios normally pinpoint a business5
strength and weakness in two waysF
"atios provide an easy way to compare present performance with past.
"atios depict the areas in which a particular business is competitively
advantaged or disadvantaged through comparing ratios to those of other
businesses of the same si%e within the same industry.
C&assifi)ation of ratio
"atios can be classified into different categories as followsC
J)K Traditional classification
J2K $unctional classification
D1E Tra"itiona& )&assifi)ation
The traditional classification has been on the basis of the financial statement to
which determinants of a ratio belong. -n this basis the ratios could be classified
asF
2rofit @ loss account ratio
Balance sheet ratio
Composite ratio
D2E 1*n)tiona& )&assifi)ation
3+
"atios are grouped in accordance with certain tests. -n the basis, there are four
categories of ratios.
Profitabi&ity Ratio

2rofitability "atios gives some yardstick to measure the profits in relative terms
with reference to sales, assets or capital employed. These "atios highlight the end
result of business activities. The main ob6ective is to 6udge the efficiency of the
business.
1inan)ia& Ratio
These "atios are calculated to 6udge the financial position of the organi%ation
from short term as well as long term solvency point of view. Thus it can be sub
divided intoF
;hort term solvency "atio J#i?uidity "atioK
#ong term solvency "atio JCapital structure "atioK
T*rno%$r Ratio or A)ti%ity ratio

These "atios are used to measure the effectiveness of the use of assetsLcapital in
the business.
5ar$t T$st Ratio

These are of course, some profitability "atios, having a bearing on the market
value of the shares.

3-
I('ortan)$ of ratio ana&ysis
The ma6or benefits arising from ratio analysis are as followsF
"atio analysis is a very powerful analytical tool useful for measuring
performance of an organi%ation.
"atio analysis concentrates on the inter=relationship among the figure
appearing in the financial statements.
"atio analysis helps the management to analyses the past performance of the
firm and to make further pro6ections.
"atio analysis allow interested parties to make evaluation of certain aspects of
the firm5s performance as given belowF
;hare holders and prospective investors will analy%e ratios for taking
investment and disinvestment decisions.
Bankers who provide working capital will analy%e ratios for appraising
the creditworthiness of the firm.
The financial institution that provides long=term debt will analy%e ratios
for pro6ect appraisal and debt servicing capacity of the firm.
The financial analysts will analy%e ratios for making comparisons and
recommending to the investing public.
The credit rating agencies will analy%e ratios of a firm to give the credit
rating to the firm.
The government agencies will analy%e ratio of a firm for review of its
performance.
3.
A"%anta!$s of ratio ana&ysis
"atio analysis simplifies the comprehension of financial statements.
"atios tell the whole story of changes in the financial condition of the
business.
"atio analysis provides data for inter=firm comparison. "atio highlights
the factors associated with successful and unsuccessful firms. They also
reveal strong firms and weak firms, over=valued and under=valued firms.
"atio analysis also makes possible comparison of the performance of the
different divisions of the firm. The ratios are helpful in deciding about
their efficiency or otherwise in the past and likely performance in the
future
"atio analysis helps in planning and forecasting. -ver a period of time a
firm or industry develops certain norms that may indicate future success
or failure. /f relationship changes in firm5s data over different time
periods. The ratios may provide clues on trends and future problems.
Li(itations of ratio ana&ysis
"atios are useful in 6udging the efficiency of the business only when they
are compared with the past result of the business or with the results of a
similar business.
"atios are only indicatorsC they cannot be taken as final regarding good
or bad financial position of the business. -ther things have also to be
seen.
3/
Companies made manipulation of account in a way so as to conceal vital
facts and present financial statement in a way to show better position
than what it actually is. -n account of such a situation presence of a
particular ratio may not be a definite indicator of good or bad
management.
$inancial analysis based on accounting ratios will give misleading results
if the effects of changes in price level are not taken in to account.
<o fi0ed standard can be laid down for ideal ratios.
GROSS PRO1IT RATIO
/t is a ratio e0pressing relationship between gross profits earned to
net sales in the case of company. But in the case of bank total income is to be
considered. /t is a useful indication of the profitability of business.
/f this ratio is low, it indicates that the cost of income is high.
+ross 2rofit "atio O +ross 2rofit 0 )00
Total /ncome

J"upees in lacsK
3=

CHART O1 GROSS PRO1IT RATIO
Int$r'r$tation6

The higher will be ratioC better will be the profitability of bank. /n order
to have idea of profitability, the gross profit ratio and net profit ratio may be
simultaneously considered. +ross profit of the bank has decreased in 200, but
after that increase in 2007and 200. but in the recent year it has decreased.

3>
0$ar 2##-,#. 2##.,#/ 2##/,#= 2##=,#> 2##>,1#
Gross Profit )&! )2,. 2.8 &8)0 2)82
Tota& In)o($ 7,& 7. 87 ))22. ) !)). )!7&8
Ratio )8..& ).8 22.2& 2&.7, )&.8!
NET PRO1IT RATIO
The ratio is valuable for the purpose of ascertain the over=all
profitability and efficiency of business. This ratio is also known as net margin. /t
measures the relationship between net profits and income of bank. /t can be
calculated as
<et profit ratio O <et 2rofit 0 )00
Total /ncome
/f the e0penses met out of the gross profit are disproportionately
heavy, the <et 2rofit "atio will go down it shows inefficiency of management.
J"upees in lacsK
+#
0$ar 2##-,#. 2##.,#/ 2##/,#= 2##=,#> 2##>,1#
N$t Profit
Aft$r TaH
)08! ,,! 2)00 )&!0 )&!0
Tota& In)o($ 7,& 7.8. ))2&0 )!)08 )!7&8
Ratio )2.8 7.8 )7.,0 7..& 7.!2
CHART O1 NET PRO1IT RATIO
Int$r'r$tation6
The average net profit of "'C is )).!B. The highest net profit of
"'C is )7.,0 in the year 2007. (igh net profit ratio would ensure ade?uate
returns to the owners but in the ne0t year it has gone down due to recession in the
market. /n the year 200. +ross 2rofit "atio is 2&.7, while <et 2rofit "atio is only
7..& which shows e0penses met out of the gross profit are disproportionately
heavy so it should be reduce.
+1
RETURN ON TOTAL ASSETS RATIO
The profitability of the firm is measured by establishing relation of net
profit with the total assets of the organi%ation. This ratio indicates the efficiency
of utili%ation of assets in generating revenue.
/t reveals the earning capacity on the e0isting assets, as well as the
cause of increase in the ratio, due to increase in profit or due to decrease in
investments. This ratio can be e0pressed as
"eturn on total Assets O <et profit after ta0 0 )00
Total assets


J"upees in lacsK
+2
0$ar 2##-,#. 2##.,#/ 2##/,#= 2##=,#> 2##>,1#
N$t Profit Aft$r
TaH
)08! ,,! 2)00 )&!0 )&!0
Tota& Ass$ts .&.07 )2,!72 )!08)0 ),.8. )77!
Ratio ).)& 0.8) ).&. 0.,! 0.,
CHART O1 RETURN ON TOTAL ASSETS
Int$r'r$tation6
/f this ratio is low, it indicates that the investment in fi0ed assets is
more than what is necessary and must be reduced. /n year 200,, 200. and 20)0
the position of bank is not satisfactory but in the year 2008 and 2007 it has gone
up it means return on assets has increased.
+3
CURRENT RATIO
The main ?uestion this ratio addresses isF P'oes your business have
enough current assets to meet the payment schedule of its current debts with a
margin of safety for possible losses in current assets, such as inventory shrinkage
or collectable accountsQP A generally acceptable current ratio is 2F). But whether
or not a specific ratio is satisfactory depends on the nature of the business and the
characteristics of its current assets and liabilities. The minimum acceptable
current ratio is obviously )F), but that relationship is usually playing it too close
for comfort.
Current "atio O Current Assets
Current #iability
J"upees in lacsK
++
0$ar 2##-,#. 2##.,#/ 2##/,#= 2##=,#> 2##>,1#
Tota& C*rr$nt
Ass$ts
2)8,0 .)2 8.,0 72878 7,).,
Tota& C*rr$nt
Liabi&ity
)).0, &),.. &!0& &&.. ),2&
Ratio ).72 ).!! 2.02 2.0 !.08
CHART O1 CURRENT RATIO
Int$r'r$tation6
+enerally 2F) is considered ideal for a concern. (ere in the year 2007
and 200. is almost near to 2F) but in the year 20)0 it was !.08F) which is much
higher than the ideal it may have been affected profitability of the bank.
+-
IUIC3 RATIO
Nuick "atio is sometimes called the Pacid=testP ratio and is one of the
best measures of li?uidity. /t is figured as shown belowF
The Nuick "atio is a much more e0acting measure than the Current
"atio. By e0cluding inventories, it concentrates on the really li?uid assets, with
value that is fairly certain. /t helps answer the ?uestionF P/f all sales revenues
should disappear, could my business meet its current obligations with the readily
convertible R?uickS funds on handQP
An acid=test of )F) is considered satisfactory unless the ma6ority of
your P?uick assetsP are in accounts receivable, and the pattern of accounts
receivable collection lags behind the schedule for paying current liabilities.
Nuick "atio O Nuick Assets
Nuick #iabilities

J"upees in lacsK
+.
0$ar 2##-,#. 2##.,#/ 2##/,#= 2##=,#> 2##>,1#
I*i) Ass$ts 2)8,0 .)2 8.,0 72878 7,).,
I*i) Liabi&ity )).0, &),.. &!0& &&.. ),2&
Ratio ).72 ).!! 2.02 2.0 !.08
CHART O1 IUIC3 RATIO
Int$r'r$tation6
Nuick "atio of the "'C Bank is very high it might affect profitability
of the Bank. /t has increased during last three year. /n the 200!=2008 and 2008=
200, it was near to the ideal ratio.
DE2T EIUIT0 RATIO
+/
'ebt >?uity "atio is the relation between borrowed fund and owners5
capital in a firm, it is also known as e0ternal internal e?uity ratio. The 'ebt
>?uity "atio is used to measure the soundness of long term financial policy of the
business.
'ebt >?uity "atioO 'ebtTTTTTTT
;hare holders5 fund

J"upees in lacsK

CHART O1 DE2T EIUIT0 RATIO
+=
0$ar 2##-,#. 2##.,#/ 2##/,#= 2##=,#> 2##>,1#
D$bt )).0, &),.. &!0& &&. ),2&
E;*ity )087& ))7. )28.& )!,02 )8,72
Ratio ).)2 2.87 2.,2 2.)& ).0&
Int$r'r$tation6
<ormally in /ndia 'ebt >?uity "atio between 0.8,F) and 2F) is
considered as ideal. (ere in the year 2008, 200, and 2007 it was above 2F). A
higher portion would be risky because loans carry with them for obligation to pay
interest at fi0ed rate which may became difficult if profit is reduced but in the
ne0t year it was reduced up to ).0&F) it means the position has improved.
+>
BOR3ING CAPITAL TURNO4ER RATIO
This ratio indicates the e0tent of working capital turned over in
achieving income of the firm.

/t is a ratio e0pressing relationship between income and working
capital of company. /t is an indication of management efficiency to operate the
business with sufficient success. /f income is less than working capital then it
cannot run successfully
:orking capital ratio can be calculated as underF
:orking capital turnover ratio O Total income
:orking capital
.

J"upees in lacsK
CHART O1 BOR3ING CAPITAL TURNO4ER RATIO
-#
0$ar 2##-,#. 2##.,#/ 2##/,#= 2##=,#> 2##>,1#
Tota& In)o($ 7,& 7.8. ))2&0 )!)08 )!7&8
Borin!
)a'ita&
.&. )2!, )77 ),70 )7&2
Ratio ..0& ,.) ,.!! 7.. 7.8
Working capital turnover ratio
0
1
2
3
4
5
6
7
8
9
10
2006 2007 2008 2009 2010
Year
W
o
r
k
i
n
g
c
a
p
i
t
a
l

t
u
r
n
o
v
e
r

R
a
t
i
o
Working
capital
turnover ratio
Int$r'r$tation6
This "atio shows the number of times the working capital is turned over
in a stated period. The "'C Bank has very good :orking capital turnover ratio
and it has been increasing constantly for last four year.
RETURN ON EIUIT0 CAPITAL
-1
/t is the "atio e0pressing relationship between profit after ta0 and
e?uity share capital higher the return better will be the reward for shareholders.

"eturn on e?uity capital O TTTT2AT 0 )00
>?uity share capital
J"upees in lacsK
CHART O1 RETURN ON EIUIT0 CAPITAL
-2
0$ar 2##-,#. 2##.,#/ 2##/,#= 2##=,#> 2##>,1#
PAT )08! ,,! 2)00 )&!0 )&!0
E;*ity s:ar$
)a'ita&
2)&! 228, 2!)! 2,! &0,)
Ratio ..77 &.). 7&.! ..)7 &..8
Return on equity capital
0
10
20
30
40
50
60
70
80
90
2006 2007 2008 2009 2010
Year
R
e
t
u
r
n

o
n

e
q
u
i
t
y

c
a
p
i
t
a
l
Return on
equity
capital
Int$r'r$tation6
"eturn on e?uity capital has decreased consistently from 200,=2007 due
to decrease in profit or increase in e?uity share capital.


E5LO0EES OR 2RANCH RATIO
-3
2rofit per branch O profit = 10.23
lakh
branch

2rofit per employee O profit = 1.75 lakh
Employ
Capital employeed per branch O C.>
Employ

= 6 lakh

-+
SBOT ANAL0SIS
--
Str$n!t:s
/t has good market share.
Uero <2A Bank.
$ully Computeri%ation and Automation.
/t has e0cellent services.
Branches in all most developed parts of saurashtra.
"espectable ranking and position in +u6arat5s top
Co=-perative banks.
B$an$ss
/t has very less focus over advertising as compare to its Competitors.
#ack of marketing e0pertise.
:eak updating of the website.
#ack of modern management concepts.
O''ort*niti$s
They can open up various branches even in small Cities.
/t can get competitive advantages.
-.
/ntroduction of various retail services.
After getting scheduled status we may apply multi state bank to
>0pand their Business.
Bank can perform marketing activities by media.

T:r$ats
+lobal banks are coming in /ndia
The other distractive players are much aggressive.
Changes in government rules and regulation.
Changing interest rates
-/





-=
CONCLUSION
Nuality wise @ infrastructure wise its services are well accepted. This is
one of the most advantages @ prestigious achievements of "'C bank.
$rom last five years continuously, bank awarded as Vbest performance
award5 like 0B <2A according to "B/ guideline.
/ have found that models which are their in the market of "'C bank
are giving best service to customers @ also have good amount of market share in
rural area of "a6kot district.
;taying with this bank for a period of 8 weeks / concluded that it is
almost the highly developing bank with great potential. All departments are
operating well but still there is a re?uirement of skill full staff.
->
1INDINGS
The basic motto to formulate co operative banks was to combat the
problems of rural farmers. Because ,0B of the total population in /ndia is
residing in rural sector.

The "a6kot district co=operative bank is an agricultural bank and it is also

based on the development of farmers and agricultural development. And
also our economy is also based on development of villages.
$armers are needs to the money for increasing their farm production at
different section like seedsC new medicinesC fertili%ers and new
technology. That all the loans are provided by 'istrict Co=-perative
Banks, commercial and citi%en bank.
Their operations are restricted to a particular state in case of a state Ape0
bank, a particular district in case of district co operative bank and to a local
area in case of primary co operative society
.#
The local intensity of the bank in its customer centric approach, hassle free
e0ecution of the decision @ technologies are their main difference from
commercial banks, also high level of commitment at all levels of
management @ self committed ground level staff makes them different
from other commercial banks.
;trategically located, designed and e?uipped to consistently deliver a new
Eage branch banking e0perience. All the branches are very well managed
by well trained staff and maintain the reputation of the bank.
+ross profit of the bank has decreased in 200, but after that increase in
2007and 200. but in the recent year it has decreased due to global melt
down but it maintain its net profit by efficiently reducing its e0penses.
/n the year 200. +ross 2rofit "atio is 2&.7, while <et 2rofit "atio is only
7..& which show e0penses met out of the gross profit are
disproportionately heavy so it should be reduced.
/f this ratio is low, it indicates that the investment in fi0ed assets is more
than what is necessary and must be reduced. /n year 200,, 200. and 20)0
the position of bank is satisfactory but in the year 2007 it has gone up but
bank has settled it in ne0t year.
Current "atio of the "'C bank ltd. is almost near to ideal "atio it shows
good li?uidity position but it was very high in recent year it might affect
profitability of the bank.
.1
'ebt e?uity ratio is fine during 200,, 2007 and 200. but it is not
satisfactory in the year 2008 and 20)0.
"'C bank has used its working capital e0cellently and working capital
ratio has been increasing for last three years.
SUGGESTIONS
/n the year 2007=200. +ross 2rofit "atio is 2&.7, B while <et 2rofit "atio
is only 7..&B which shows e0penses met out of the gross profit are
disproportionately heavy so it should be reduced.
#i?uidity and Nuick "atio of the bank is too high in the year 200.=20)0 it
might affect profitability of the bank hence it should be reduced up to ideal
level.
"eturn on assets in the year 2008=200,, 2007=200., and 200.=20)0 is very
low it should be reduced.

.2
.3
2I2LIOGRAPH0

2oos
'onald ". Cooper @ 2amela ;. ;chindler, Business "esearch 1ethods,
The 1cgraw (ill Companies
The company accounts, cost and management accounting, the institute of
company secretaries of /ndia, 200..
1.<.Arora, cost and management accounting, &rd

edition, 2007, (imalaya
publishing house.
Bharti *. 2athak, /ndian financial system, 200, 2eartion education.
Ambrish gupta, $inancial Accounting for management, &
rd
edition, 200.,
2eartion education.
Fo*rna&s
.+
The /ndian 6ournal of commerce J?uarterly publication of /ndian
commerce associationK
The /I2 6ournal of management "esearch.
Ann*a& R$'orts
Annual "eports of the "'C Bank of 200!=2008, 2008=200,, 200,=2007,
2007=200., and 200.=20)0.

.-
BE2LIOGRAPH0
B$bsit$s
www.rbi.org.in
www.rdcbank.in
www.banknetindia.com
www.mbaknowledgebase.com
www.wikipedia.com
www.google.com
www.nabard.org
..