PROJECT

ON
WORKING CAPITAL MANAGEMENT
OF

External Guide Internal Guide

A.MOHANTY MISS AMITA PATRA

FACULTY (OSCB) H.O.D MCOM(F&C)

Submitted By:
BISWAKALYAANI BAL
Roll No : PGUNFAC18021

MASTER IN FINANCE AND CONTROL

 DECLARATION

I do hereby declare that the project work entitled is the original piece of
work done by me. This report in being submitted as part of fulfillment of the
requirements for the summer internship of the Master in Financial Control
MFC programme conducted in Institute of Media Studies, Bhubaneswar.

This is my original work and had not been previously submitted as a

part of other degree, diploma of another B-School or University. The finding
and conclusion of data in this report are based on my personal study, during
the occupancy of my summer internship.

BISWAKALYANI BAL

Roll NO-18021

MFC 3rd semester

 ACKNOWLEDGEMENT

I would like to express my obligating and gratitude to those whose

guidance and co-operations helps me a lot throughout the project as
sources of stimulations.

This acknowledgement is a way of expressing my heart full gratitude

towards those who are working in the organization “ODISHA State Co -
operative Bank”, Bhubaneswar who made the summer training an enjoyable
experience, something, I would treasure forever.

Thanks to Mr. A.MOHANTY, Faculty of OSCB for giving me for this

magnificent opportunity to work in this institute. His kind cooperation and
idyllic supervision to the instant of necessity was a source of great
inspiration for me and constantly pushed me toward achieving superior
heights an give my preeminent to the organization.

Also I would like to convey my great gratitude to the staff and

professor of my department. Who helped me a lot to complete my work in
the stipulated time and construct this effort a
flourishing one .

BISWAKALYANI BAL

Roll NO-18021

MFC 3rd semester

 U.N( AUTO)COLLEGE

CONTENTS

Chapter 1:- Research Design and Methodology

 Introduction
 Objectives
 Scope
 Place
 Limitation
 Research and Methodology

Chapter 2:- Company Profile

 Introduction
 History
 Structure
 Function and Role of OSCB
 Mission and Achievement
 Direct Financing
 Retail Banking
Chapter 3:- Theoretical Aspect
 Introduction
 Concept
 Components
 Types of Working Capital
 Operating cycle concept
 Significance of working capital

Chapter 4:- Data Analysis and Reporting

Chapter 5:- Finding and Suggestion

Chapter 6:- Conclusion

Chapter 7:- Bibliography

 CHAPTER 1

RESEARCH DESIGN
AND
METHODOLOGY
 INTRODUCTION

In the present day economy finance is defined as provision of money as and

when desire or required. Every enterprise needs finance or capital to start or
carry out its operations. Finance act as life blood and nervous system of an
organization. So finance should be managed effectively both for short term
and long term purpose.

SUBJECT

Working capital is the life blood of an organization, which indicates or

shows the source and resource of fund in an organization. Source indicates
the total fund requirement of an organization i.e. at a particular point of time
it is equal to the sum of equity and debt which forms the liabilities of a firm.
The liabilities include long-term and short-term liabilities. Long-term,
liabilities indicates the liabilities which are either permanent or have a long
life and short-term or current liabilities indicates the liabilities generated due
to the business activities or related due to the operating activities of a
business. The total fund employ is equal to debt plus of equity i.e. the
sources from which business secured or raised fund is known as sources of
fund. There are two types of sources from which an organization get fund.
The owners contribution is known as capital otherwise called as fixed
liabilities i.e. equity or owners equity. Owners equity =Equity share capital +
Preference share capital + Retain earning. The new concept retain earning
is another sources of fund this is called fund generating by the business.
The second source is known as debt financing. The fund collected through
debenture and termed loan cones under debut financing which is called as
creditors of the business

Working capital is that part of the long-term financed locked in and use
to support the current activities i.e. to maintain the productivity of fixed asset
i.e. without the fund to support current activities the fixed assets are
valueless. The amount blocked for or locked for current activities is really
Working Capital.

DEFINITION

"Circulating capital means current asset of a that are changed in the

ordinary course of business from one to another as for example, from cash
to inventories, inventories to receivable, receivable to cash."
-GENESTERNBERG

"WORKING CAPITAL is the amount of fund necessary to cover the

cost of operating the enterprise."

-SHUBIN

NET WORKING CAPITAL = CURRENT ASSET - CURRENT LIABILITY

OBJECTIVE

This study is made as a part of the MFC programme, IMS, Utkal University
in the form of summer internship project with the following objective.

 To study the working capital management in order to study the

financial efficiency of OSCB Ltd.
 To find out the strategies and managerial aspect of managing current
assets.
 The bank whether has the strength to fulfill its current obligation or
not.
 Performance of OSCB Ltd for generation credit providing loan &
advanced, accepting deposits and making investment etc.
 Growth rate of OSCB Ltd.
SCOPE

 The scope is expanded within organization introduction to practical

exposure to co-operate day to day activity.
 The data and information were gathered during the training.
 The result includes secondary data only.
 Aim of the research is academic representation of corporate data & to
obtain the % of current asset and current liabilities.
 To know the partial part of working capital management of OSCB Ltd
through the data available as managerial tool & its future prospects.
LIMITATIONS

Every work has a particular advantages and disadvantages. So this always

a boundary line, whatever is to be done. This project work has same
problem with some disadvantages. The various problem or limitations of the
study are as follows:-

 It is only based on methodological interpretation of the figures and

ignores the factors such as management style, motivation of workers
leadership etc.
 Management of working capital is controlled by various factors such
future economic trend, market condition and agriculture demand etc.
 Time factor is plays vital roles: the study was conducted within six
weeds.
 Due to heavy burden of work getting information from staff was not
possible.
RESEARCH & METHODOLOGY

 The data which is collected for the first time are known as primary
data. Primary data can be collected through direct observation,
personal interview, and telephone interview and via mail survey.
 Secondary data are the type of data which are already exist for
reference, these are collected through internal (cost information,
customer feedback etc.) Source and external (book magazine
newspaper, annual report, etc.) source.
 This study deals with the prudential norms laid down by RBI for bank,
the actual method of calculations of NPA, based on 19 days norms
and factors data’s are giving rise to NPA of co-operative bank and
finally conclusion and recommendation were to overcome to overcome
from the rising NPAs.

TOOLS & TECHNIQUES

There are some tools which are relevant for the study of working capital
requirements and analysis of performance of OSCB ltd is

 Comparative statement
 Profit and loss account statement
 Ratio analysis
 CHAPTER 2

COMPANY
PROFILE
INTRODUCTION :

The Odisha state co-operative bank Ltd registered (Reg. No.-29 cu/date
02.04.1948) under the Bihar and Odisha co-operative society act 1935 as
Odisha provisional co- operative bank with its head quarter at Cuttack and
functioning from 2nd April 1948. Later the bank shifted to the state capital,
Bhubaneswar.

The Odisha State co-Operative bank is apex bank in odisha has office at
Bhubaneswar with its branches at. It supports 17 central co-operative banks
which in turns support a more than 4000 primary co-operative society.

HISTORY OF O.S.C.B LTD

With the growth of central bank the need for loan and advances are credit
as reasonable rate of interest grew for central banks to enable them make
adequate finance available to the societies. So, in April 1941 the Bihar and
Odisha provincial co-operative bank was formed.

The early 40s witnessed the introduction of provincial autonomy in British

Indian provinces and what was the paramount importance was the birth the
odisha province on 1st April 1936. The odisha provincial co-operative bank is
of the manifestations of great historical indentifying of odishia people.

During this period the number of the separate odisha province the OSCB
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 IS

 To finance the co-operative societies.

 To act as a balance centre for the surplus fund of the societies in
odisha.
 To carry on the banking business.

The central bank and union of odisha applied for the bifurcation of the Bihar
and odihsa provincial co-operative bank. The 13 central co-operative bank
in north Odisha served all connections with the Bihar provincial cooperative
bank in 1983, and their net liability to the bank was taken over by odisha
govt.
The odisha provincial co-operative bank registered on 15th August 1936
could not start its function die to pending of govt. decisions on the enquiry
into the condition of the co-operative movement in Odisha. There was no
apex bank for the 13 northern CCBs, however the two southern ware
obtaining loans from the madras provincial co-operative bank as usual.

On 2nd April 1948 the Orissa provincial co-operative bank was again
registered under Bihar and Orissa co-opeerative society act 1935, 22
members were enrolled and 100 shares were issued and share the capital
of 10000 was collected. So it was a twice born of the bank. The name of the
Orissa provincial co-operative bank was changed to Orissa state Co-
operative bank in the year -52.

Mission and achievement.

The mission of OSCB LTD is to become a strong and vibrate bank having
competition edge and to lead rejuvenated short term credit structure to
serve the people of Odisha.

 Large network of 287 PACs/LAMPs/FSS and 308 branches of 17

central co operative bank at block level.
 80% agriculture families are covered /enrolled as numbered of
PACS/LAMPS/FSS.
 Providing easy asses to credit through 6.4 lakh kisan credit card
issued to the frames.
 Surviving 70% of total agriculture credit disbursed in the state rabbi
credit to the tune of Rs. 159 crores in cyclone affected area.
 Disbursed crop loan Rs. 422 crores during 1991 -2000 recording a
growth of 28% over the previous year.
 Total credit disbursed by St co-operative structure was Rs.3.21 crores
90-91 which rows 13 fold of the level of Rs. 422 in 1990-2000.
 All branches and exchange counters are fully computerized to
provide efficient costumer service ATM facility is installed to provide
cash withdrawing services.
 Agriculture inputs like fertilizers and pesticides supplied to the farmer
to the rural area PACs level.
 22 mahila branches of the district central co-operative banks
functioning executively render banking service to the women folk.
 The bank is running over the profit over 5 decades since its inception
of 1948.
 Progressive more societies are becoming viable by increasing their
business turnover through large clientele coverage.

THE INDUSTRIAL RURAL CREDIT DELIVERY SYSTEM

OFAGRICULTURAL COMPRISES OF:

1. Short term co-operative credit structure

2. Long term credit structure.
3. Regional rural bank
4. Commercial bank
5. RBI
6. NABARD

Human resource and manpower development

The success of co-operative bank depends on human resource

development and support extends to creation of appropriate structure
and facility for member education, leadership development and defective
training programme at all level.

In the area of globalization, the need of the hour is re-designing co-

operative training and education programme.

The programme were conducted exclusively for the officers of RCS,

Odisha, which as per feedback was highly relevant and needful to the
target group in view of the changing environment under pre-vidyananth
committee reforms.

FUNCTION AND ROLE OF OSCB LTD.

The Odisha state co-operative bank and apex level institution of short
term co-operative credit delivery system in the state is playing major role
in strengthening DCCB/ACS for the socio economical of the state.

1. Role of towards credit policy at the state level.

OSCB as the leader of the state co-operative credit structure is

drawing annual plan.
  Simplification of loaning procedure
 Kissan credit card has been introduced to adequacy and time liner
in credit delivery.

2. Role towards rural saving mobilization to attain self reliance of CCB &
PACS.

3. To make loan availability easier in the state.

4. To serve as a balancing center in the state for all type all type of co-
operative societies registered under the co-operative societies act.

5. To function as banker accepts all type of deposits such as current.

6. To act as refinancing agency to the affiliated societies in respect of

production and investment credit and investment credit and handloom
credit in the state.

DIRECT FINANCE

Direct finance by OSBC

The OSBC has financed the sugar industries state to help cultivation to
remunerative price for the sugar cane crop. It has also financed the Odisha
co-operative marketing federation for fertilizer business. The following large
unit are also financed by bank.

 Nilachal ispat Nigam Large Scale Steel Industry

 Kalinga Hospital- Corporate hospital
 Bilati limited – tropical food
 Flour mills
 Press
 Mass media.

RETAIL BANKING

 HOUSING LOAN

The is financing housing loan under its “APNA GHAR” scheme maximum
under this head is Rs. 2 lakh purchase of readymade house or construction
for repair renovations, additions, alteration the limit is Rs 10 lakh. The rate
of interest is competitive and varying time on reducing balance Maximum
repayment period is 15 years.
 Personal loan
 Requirement / formalities.
Maximum limit is Rs. 50 lakhs or 75% of the cost of the item
 Subject to 50 times net monthly income, the net monthly salary
should not less than Rs. 3000 per month under any
circumstances.
 Repayable in maximum 96 monthly installments in reducing
balance.
 Motor vehicles loans
For any start of surface transport and water transport vehicle both
commercial and Commercial and for personal purpose.
 Requirement / formalities
 75% of the total cost of vehicle including insurance and
registrations.
 Repayable in 60 monthly installment in reducing balance.
 Business enterprise.
 Term loan for
 Fixed asset for project
 Commercial project and kalian mandap
 Hotel, Tourist Resort and Health care units.
 Equipment and machine.
 Requirement / Formalities.
 Maximum 75% of the fixed asset
 Maximum payable period is to 10 years.
 Interest in reduced balance method.
 Working capital loans.
 Retail business
 Trader
 Wholesaler
 Project solution
 Requirement / formalities.
 Maximum 75% of working capital requirement subject to stock
holding.
 Quarterly interest on days balance.
 CHAPTER 3

THEORETICAL
ASPECT
Introduction To Working Capital Management

“Working capital means the part of the total assets of the business that
change from one form to another form in the ordinary course of business
operations.”

Concept of working capital:-

The word working capital is made of two words 1.Working and 2. Capital

The word working means day to day operation of the business, whereas
the word capital means monetary value of all assets of the business.

Working capital : -

Working capital may be regarded as the life blood of business.

Working capital is of major importance to internal and external
analysis because of its close relationship with the current day-to-day
operations of a business. Every business needs funds for two
purposes.

* Long term funds are required to create production facilities through

purchase of fixed assets such as plants, machineries, lands, buildings
& etc

* Short term funds are required for the purchase of raw materials,
payment of wages, and other day-to-day expenses.

. It is other wise known as revolving or circulating capital

It is nothing but the difference between current assets and current

liabilities. i.e.
Working Capital = Current Asset – Current Liability.

Businesses use capital for construction, renovation, furniture,

software, equipment, or machinery. It is also commonly used to
purchase inventory, or to make payroll. Capital is also used often by
businesses to put a down payment down on a piece of commercial real
estate. Working capital is essential for any business to succeed. It is
becoming increasingly important to have access to more working
capital when we need it.

Concept of working capital

 Gross Working Capital = Total of Current Asset

 Net Working Capital = Excess of Current Asset over Current
Liability

Current Assets Current Liabilities

 Cash in hand / at  Bills Payable
bank  Sundry Creditors
 Bills Receivable  Outstanding
 Sundry Debtors expenses
 Short term loans  Accrued expenses
 Investors/ stock  Bank Over draft
 Temporary
investment
 Prepaid expenses
 Accrued incomes
Working capital in terms of five components:

1. Cash and equivalents: - This most liquid form of working capital

requires constant supervision. A good cash budgeting and forecasting
system provides answers to key questions such as: Is the cash level
adequate to meet current expenses as they come due? What is the
timing relationship between cash inflow and outflow? When will peak
cash needs occur? When and how much bank borrowing will be
needed to meet any cash shortfalls? When will repayment be expected
and will the cash flow cover it?

2. Accounts receivable: - Many businesses extend credit to their

customers. If you do, is the amount of accounts receivable reasonable
relative to sales? How rapidly are receivables being collected? Which
customers are slow to pay and what should be done about them?

3. Inventory: - Inventory is often as much as 50 percent of a firm's

current assets, so naturally it requires continual scrutiny. Is the
inventory level reasonable compared with sales and the nature of

your business? What's the rate of inventory turnover compared with

other companies in your type of business?

4. Accounts payable:- Financing by suppliers is common in small

business; it is one of the major sources of funds for entrepreneurs. Is
the amount of money owed suppliers reasonable relative to what you
purchase? What is your firm's payment policy doing to enhance or
detract from your credit rating?

5. Accrued expenses and taxes payable: These are obligations of your

company at any given time and represent a future outflow of cash.
Two different concepts of working capital are:-

 Balance sheet or Traditional concept

 Operating cycle concept.

Balance sheet or Traditional concept:- It shows the position of the firm at

certain point of time. It is calculated in the basis of balance sheet
prepared at a specific date. In this method there are two type of working
capital:-

 Gross working capital

 Net working capital

Gross working capital:- It refers to the firm’s investment in current

assets. The sum of the current assets is the working capital of the
business. The sum of the current assets is a quantitative aspect of
working capital. Which emphasizes more on quantity than its quality, but
it fails to reveal the true financial position of the firm because every
increase in current liabilities will decrease the gross working capital.

Net working capital:- It is the difference between current assets and

current liabilities or the excess of total current assets over total current
liabilities.

Working capital= current assets - current liabilities.

Net working capital: - It is also can defined as that part of a firm’s current
assets which is financed with long term funds. It may be either positive or
negative. When the current assets exceed the current liability, the
working capital is positive and vice versa.
Operating cycle concept:-

The duration or time required to complete the sequence of

events right from purchase of raw material for cash to the realization
of sales in cash is called the operating cycle or working capital cycle.

CASH RAW MATERIAL

DEBTORS & BILLS

OPERATING CYCLE
WORK IN PROGRESS
RECEIVABLES

SALES FINISH GOODS

Types of Working Capital:-

TYPES OF
WORKING
CAPITAL

ON THE BASIS ON THE BASIS

OF B/S CONCEPT OF TIME

GROSS REGULAR TEMPORARY

NET WORKING
WORKING WORKING WORKING
CAPITAL
CAPITAL CAPITAL CAPITAL

SEASONAL
WORKING
CAPITAL

SPECIFIC
WORKING
CAPITAL
SIGNIFICANCE OF WORKING CAPITAL:-

PAYMENT
TO
SUPPLIERS

EASY LOAN DIVIDEND

FROM DISTRIBUTI-
BANKS ON
SIGNIFICAN-
-CE OF
WORKING
CAPITAL
INCREASE INCREASE
EFFECIENC- DEBT
Y CAPACITY

INCREASE
IN FIX
ASSETS

Factors requiring consideration while estimating working capital.

 The average credit period expected to be allowed by suppliers.

 Total costs incurred on material, wages.
 The length of time for which raw material are to remain in stores
before they are issued for production.
 The length of the production cycle (or) work in process.
 The length of sales cycle during which finished goods are to be
kept waiting for sales.
 The average period of credit allowed to customers.
 The amount of cash required to make advance payment .

MANAGEMENT OF WORKING CAPITAL

Management of working capital is concerned with the problem arise in
attempting to manage current assets, the current liability and inter
relationship that exist within them.

Its goal is to intain the satisfactory level of working capital i.e. it is neither in
adequate excessive because these leads to insolvency of business and
accumulation of nonprofits making funds respectively.

Principle of working capital

 Principle of risk variation

Risk is the inability of a firm to meet its obligations. Larger investment

in current asset increase liquidity reduce risk and there by decrease
the opportunity of gain and loss and vice versa in other words, there
is definite inverse relationship between the degree of risk and
profitability.

 Principle of cost of capital

Higher the risk and lower the cost and vice-versa a sound working
capital management should always try to achieve a proper balance
between this two.
 Principle of equity position
According to this principle, planning about the total investment in
current asset should be efficient. The amount or working capital in
investment in each component should be adequately justified a firms
“equity position”. The level of current asset may be measured by the
ration. Current asset as a % of total asset.

 Principle of maturity of payment

This principle is concerned with planning the sources of finance of
working capital with relating maturities of payment to its flow of
internally generated funds. Generally shorter the maturity schedule of
current liabilities, the greater the inability to meet its obligation in time.

ESTIMATION OF WORKING CAPITAL

No business can be a successfully run without an adequate amount of

working Capital. To avoid the shortage of working capital at once an
estimate of working capital requirements should be made advance through
the following method:

Method of estimating working capital requirements:

 Percentage of sales method

 Regression analysis method
 Cash forecasting method
 Operating cycle method
 Project balance sheet method

Bank borrowing

 Over draft
 Cash credit
 Purchase or discount of bill
 Letter of credit
 Working capital loan

Short term source of finance for bank

 Ride credit
 Accrued expenses and deferred income
 Bank borrowing
 Factoring of receivable
 Commercial paper

Security for bank financing

 Hypothecation
 Pledge
 Mortgage
 Lien
 CHAPTER 4
DATA ANALYSIS
AND
REPORTING
Current Liability

 Saving bank deposits

 Current deposits
 Borrowing term loan
 Bills payable
 Interest Payable
 Other Liabilities

YEAR 2010-11 2011-12 2012-13 2013-14

CURRENT 2783507045 49346870220 61917123332 70608434969
ASSET
CURRENT 45209900747 25441531870 25581055426 39304904581
LIABILITY

Interpretation

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

banker rule of thumb current ratio of OSCB satisfactory as shown in the
above table and graph.
ABSOLUTE LIQUID RATIO

It is defined as the relationship between liquid asset and current

liabilities

Absolute liquid asset

 Cash
 Balance in other banks
 Money at call and short notice

YEAR 2010-11 2011-12 2012-13 2013-14

CURRENT 45209900747 25441531870 35581055426 39304904581
LIABILITY
CURRENT 2647794419 2475124810 80896491554 31951844321
ASSET
CALCULATION OF WORKING CAPITAL

YEAR 2010-11 2011-12 2012-13 2013-14

CURRENT 2783507045 49346870220 61917123332 70608434969
ASSET
CURRENT 4520990747 25441531810 35581055426 39304904581
LIABILITY
WORKING -18026393702 23905338350 26336067906 31308530388
CAPITAL
COMPARISON BETWEEN CURRENT ASSET AND WORKING CAPITAL

YEAR 2010-11 2011-12 2012-13 2013-14

CURRENT 27183507045 49346810220 61917123332 70608434969
ASSET
WORKING -18026393702 23905338350 26336067906 31303530388
CAPITAL
 COMPARISON BETWEEN CURRENT LIABILITY AND WORKING
CAPITAL

YEAR 2010-11 2011-12 2012-13 2013-14

CURRENT 45209900747 25441531870 35581055426 39304904581
LIABILITY
CURRENT 2647794419 2475124810 80896491554 31951844321
CAPITAL
The excess of receipt over payment represents surplus of cash & the
excess of payment over receipt case and deficit of amount of working capital
required.

PROJECT VALANCED METHOD

Under this method project balance sheet for future date is prepared by
forecasting of asset & liability by following any of the method.

The excuse of estimated current liabilities, as shown in the projected

balance sheet computed to indicate the estimated amount of working capital
required.

ESTIMATION OF WORKING CAPITAL:

As percentage of fixed asset

Total of foxed asset = total of asset [current asset + fictitious asset]

Total of asset = total of asset side = sum of fixed asset, current asset and
fictitious assets.

As a percentage of fixed investment.

Working capital is the computed as a percentage of fixed investment or total

investment.

Fixed investment = total of fixed asset before depreciation i.e. amount of

capital blocked in fixed assets.

Total investment or gross assets = fixed assets before depreciation + total of

current assets.

WORKING CAPITAL ANALYSIS

Working capital is the very essential of running of business, smoothly and

profitability . The concept of working capital has its own importance in a
going concern and a position working capital i.e. excesses of current asets
over current liability shows the healthy existence of a business. But
sometimes the uses of working capital may be more than the sources
resulting in negative value of working capital. This –ve balance is generally
off set soon by gains in the following periods. A study of changes in the uses
and sources of working capital is necessary to evaluate the efficiency with
which the working capital is employed in the business. This involves the
need of working capital analysis and this analysis is conducted through a
No. of device such as:

RATIO ANALYSIS

These techniques can be employed for measuring short term liquidity of

working capital position of the firm as:

 Current ratio
 Acid test ratio
 Absolute liquidity ratio
 Receivable turnover ratio
 Payable turnover ratio
 Working capital turnover ratio
 Working capital leverage ratio
 Ratio of current liability

Analysis of ratio:

Liquidity ratios:

It measure the organization meet its current obligations. In fact analysis of

liquidity budget and cash and fund flow statement. But liquidity ratio by
establishing a relationship between case and other current asset to current
obligation provide a quick measure of liquidity’s very degree of liquidity is
also bad as asset earn nothing in this case. So it is necessity to strike a
proper balance between high liquidity and lack of liquidity. The most
common ratio relevant to study is:

A) Current ratio
B) Absolute liquid ratio

Current ratio
Current ratio defined as the relationship between current asset and current
liabilities. This ratio is also known as working capital ratio. It is widely used
to make the analysis of short term financial position of the firm.

Current ratio= current assets/current liability

Current assets

 Cash in hand
 Cash in bank
 Money at call & short notice
 Advances (short-term, cash, credit & O/D)
 Interest receivable
 Bills receivable
CHAPTER 5
FINDING
AND
SUGGESTION
 CHAPTER-5
FINDINGS

 The size of balance sheet of the bank stood at Rs 6889.94corers as

compared to Rs 6232.62corers on 2012-13 registering a growth close
at 14% and this growth is much slower the year ago growth of 40%
witnessed by the bank and consolidated growth of OSCB registering a
19% FY 14.The lower growth of deposit attributed to slow down in
balance sheet growth.
 Bank earning a net profit of 12 corers.
 Working capital requirement of different DCCBS are found to be
adequately managed.
 The credit deposit ratio at 90.6% remaining higher than national
average of 76.5% on the end March 2014.
 The asset quality of the bank improved in 2013-14 in comparison to
the precious year.
 Deposit grew up by 3.08% from the previous year.
SUGGESTION

 Current asset should be raised in certain limit and that should be

maintained constantly.
 Large exposure on big corporate or single project should be
avoided.
 Operating staff and credit skill should be up graded i.e. skilled
financial manager should be employed.
 There is no shift bank approach from collateral security to visibility
of project intrinsic of promoters.
 The amount of working capital net profit is going on an increasing
order; it should be maintained in the coming year.
 CHAPTER 6

CONCLUSION
 CONCLUSION

 The finding are obtained from the analysis of the various level of
working capital requirements can suggest the management of
adequate amount of working capital is how much necessary for banks.
 It enhances the efficiency of the banks and enabled them to meet the
day to day requirements of finance when needed.
 It can be concluded that the excess and inadequate amount of
working capital is dangerous for many organization in smooth
functioning of the organizations.
 Hence, the management of adequate level of working capital is very
much Important for the bank as working capital is lire blood for any
organization.
 An organization having a well managed working capital requirement
has a long life smooth and profitable functioning.
 CHAPTER 7

BIBLIOGRAPHY
 BIBLIOGRAPHY

Annual report of OSCB ltd. 2013-14

BOOKS

 I.M. PANDAY : FINANCIAL MANAGEMENT

 SHARMA AND GUPTA : MANAGEMENT ACCOUNTING

WEBSITES :

WWW.OSCB.COOP

WWW.GOOGLE.COM

WWW.RBI.COM