Internship 2

INTERNSHIP AT THE MYSORE CO-OPERATIVE BANK LTD
EXECUTIVE SUMMARY
The Internship report has been undertaken in The Mysore Co-Operative Bank Ltd, Mysore
for a period of 4 weeks. The study includes the primary data collected from the Manager &
other staff members and secondary data is collected from annual reports of The Mysore Co-
operative Bank Ltd.
The bank is running on its own share capital and funds without taking any help or financial
assistance from Government. The Mysore cooperative bank on the co-operative principle of
“Each for all and all for each” allowed general public to become its members, irrespective of
caste or creed. Any person living in Mysore city can become a member of this bank .This
bank has been classified as “A” grade bank in Mysore city, the Reserve Bank of India
considered this bank as Grade I bank.
From this internship we can get a comprehensive understanding of banking operations,

financial products, and customer service. It covers risk management, financial analysis, and
technological advancements. Emphasis is placed on collaboration, ethics, and regulatory
compliance. Insights into market trends and develop essential professional skills required for
career in finance.
Though much smaller as compared to scheduled commercial banks, co-operative banks

constitute an important segment of the Indian banking system. They have extensive branch
network and reach out to people in remote areas. They have traditionally played an important
role in creating banking habits among the lower and middle-income groups and in
strengthening the rural credit delivery system.
A wider distribution and access of financial services helps both consumers and producers to
raise their welfare and productivity. Such access is especially powerful for the poor as it
provides them opportunities to build savings, make investments, avail credit, and more
important, insure themselves against income shocks and emergencies.
The bank has started with 36 members with a share capital of Rs.578/- has now reached
30,607 members, with a share capital of Rs. 532.09 Lakhs, having mobilized a deposit of Rs.
9,297.97 Lakhs and advanced to the tune of Rs.6,110.05 Lakhs and earned a net profit of
Rs.89.84 Lakhs as on 31.3.2017. This is one of the prominent co-operative banks in Mysore
city.
DEPARTMENT OF BUSINESS ADMINISTRATION ,VVCE, 1

INDUSTRY PROFILE
The Indian banking industry plays a crucial role in the country’s economy and is considered
one of the most robust and well-regulated banking systems in the world. With a history
spanning over two centuries, the banking sector in India has witnessed significant growth and
transformation. The Reserve Bank of India (RBI) is the central regulatory authority
responsible for overseeing and supervising the banking sector in India. It formulates policies,
issues guidelines, and regulates the functioning of banks to maintain stability and promote
financial inclusion.
The banking sector in India has witnessed significant transformation driven by economic
liberalization, technological advancements, and regulatory reforms. The entry of private and
foreign banks, coupled with the adoption of technology, has revolutionized banking
operations. Initiatives like financial inclusion programs have expanded the sector's reach.
Banks have evolved into universal institutions offering a broad spectrum of financial
services. This transformation has not only enhanced operational efficiency but also propelled
the sector's worth, making it a crucial pillar of India's economic growth and development.
The market size of cooperative banks in India can be assessed based on various factors such
as the total deposits held by these banks, their loan portfolio, and the number of branches and
customers served. The Reserve Bank of India (RBI) regulates cooperative banks in India and
periodically publishes data on their performance, including their financial indicators and
outreach.
In recent years, the Indian government has emphasized financial inclusion and the expansion
of banking services to underserved areas, which has further underscored the importance of
cooperative banks. These banks often cater to the needs of farmers, small businesses, and
individuals in rural and remote regions, contributing significantly to the country's overall
banking sector. The consolidated assets of the co-operative banking sector at end-March 2022
were ₹21.6 lakh crore. There are 31 cooperative banks in India, each of which is controlled
by a government firm to provide services to its employees. These cooperative banks are
furthermore managed by the Reserve Bank of India and were subject to the Banking Laws
Act of 1955 and the Banking Regulation Act of 1949.

COMPANY PROFILE
Figure
1. The Mysore Co-operative Bank
The Mysore Co-operative Bank Limited was established in the year 1906 on account of the
interest and encouragement by the great visionary His Highness Rajarshi Nalvadi
Krishnaraja Wadiyar. Late Nanjundaraje Urs was the first President of this Institution. In the
beginning years the institution has served the Society as a food provision store under the
banner" SWADESHI STORES", which was converted into a Bank after the enforcement of
Banking Regulation in 1966. Ever since its incorporation the Bank has been serving all
sections of the people of Mysore by enrolling them as its members and Depositors. The Bank
has celebrated its Silver Jubilee in 1931, Golden Jubilee in 1956, Diamond Jubilee in 1967
and Platinum Jubilee in 1976.
The Centenary year of celebrations were held in a grand manner in 2006. The operations of
the main office and the branch of the bank are fully computerized. The keen Inspection
Committee of Reserve Bank of India has appreciated the maintenance of books and accounts
of the bank. The Audit Department has considered the bank as 'A' Grade Bank till this
date .This bank is the first bank registered under co-operative institutions in Mysore. It has
obtained License from Reserve bank of India to continue the banking business and its
deposits are insured with Deposit Insurance and Credit Guarantee Corporation(DICGC).

1. Year Of Establishment 1906
2. Type Of Company Banking
3. Nature Of Business Lending and deposits
4. Address Gandhi Square , Lashkar
Mohalla, Mysuru
5. State Karnataka
6. Pin code 570001
7. Branches 1
8. Phone Number 0821 252 1631
9. IFSC code IBKL01092MY
10. Services Loans, deposits ,banking.
Table 1 Details of the Mysore co-operative bank
BACKGROUND AND HISTORY
In the year 1966 when the co-operative Banking act came into effect the name “Swadeshi
Stores” was changed as “THE MYSORE CO-OPERATIVE BANK Ltd., with the aim to
provide banking facility to its members. The bank is running on its own share capital and
funds without taking any help or financial assistance from Government. The Mysore
cooperative bank on the co-operative principle of “Each for all and all for each” allowed
general public to become its members, irrespective of caste or creed. Any person living in
Mysore city can become a member of this bank .
This bank has been classified as “A” grade bank in Mysore city, the Reserve Bank of India
considered this bank as Grade I bank. This bank has celebrated Silver Jubilee in the year
1933, Golden Jubilee in the year 1956, Platinum Jubilee in the year 1976 and after
completing 100 years in 2006 celebrated centenary celebration in a befitting manner. The
bank started to function in a small rented building but now has its own buildings at Gandhi
Square as Head Office and a branch at New Sayyaji Rao road, Mysore. Both head office and
branch offices are fully computerized.

In addition to the banking facility provided to its members it is rendering social service to its
members and public. Such as the bank has created a fund to provide one day meal in a year to
the patients of Bharath Cancer Hospital at Mysore. The bank so far conducted nine free eye
camps and conducted eye testing and eye operations to its member’s. This bank is the first
bank registered under co-operative institutions in Mysore. It has obtained License from
Reserve bank of India to continue the banking business and its deposits are insured with
Deposit Insurance and Credit Guarantee Corporation (DICGC).
city.
NATURE OF BUSINESS
The Mysore Co-operative Bank provides its members with financial assistance, mostly in the
form of short-term loans, loans for constructing and housing, loans for buying cars, and
assistance for the less fortunate sections of society. Since 1906, The Mysore Co-operative
Bank has operated a branch in Mysore. In order to motivate people to save more money,
Mysore Co-operative Bank is committed to providing basic banking services, such as
opening several types of bank accounts, including bank savings accounts, a bank account, a
bank term deposit account, and many more. The bank also provides loans and advances on
gold jewellery and bonds through enticing programs.
VISION, MISSION, POLICY

VISION STATEMENT
The Mysore Co-operative bank is dedicated to the overall growth of the bank by providing
the required credit facility to the client. It also promises to serve the general public by
developing improved banking services and improving credit dispersion better than any other
banking channel.
• Increase shareholder value by maximizing profits per share over time.
• A place where people care about one other on a personal level and work together

to achieve common goals .
MISSION STATEMENT
Aiming to maintain the Bank's reputation as the dominant wealth management corporation,
with standards set and considerable worldwide significance, and to play a leadership role in
developing and broadening wealth management industries while retaining focus on its growth
finance rule.
POLICY STATEMENT
Co-operative banks typically operate under regulations set forth by the government or
regulatory bodies in the country where they are located. These regulations govern various
aspects of banking operations, including lending practices, capital requirements, governance
structures, and customer protection measures. Here's an overview of some common banking
policies for cooperative banks.
Governance and Management: Cooperative banks are typically required to have a transparent
governance structure with clearly defined roles and responsibilities for board members,
management, and staff. Regulatory authorities often set standards for the qualifications and
experience required for key management positions.
Prudential Regulations: Prudential regulations are designed to ensure the safety and
soundness of cooperative banks by establishing minimum capital requirements, liquidity
standards, and risk management practices. These regulations help prevent excessive risk-
taking and protect depositors' funds.
Lending Policies: Cooperative banks are usually required to follow prudent lending practices
to minimize credit risk. This may include conducting thorough credit assessments,
establishing loan-to-value ratios, and setting limits on exposure to specific borrowers or
sectors.
Asset Quality: Regulatory authorities typically require cooperative banks to maintain a

certain level of asset quality by regularly assessing the quality of their loan portfolio and
making provisions for potential loan losses. Non-performing assets (NPAs) are closely
monitored, and banks may be required to take corrective actions to address any deterioration
in asset quality.
Compliance and Reporting: Cooperative banks must comply with all applicable laws,
regulations, and guidelines issued by regulatory authorities. They are typically required to

submit periodic reports on their financial condition, operations, and compliance with
regulatory requirements.
WORK FLOW MODEL
Figure 2.1 Workflow in a Co-operative bank
The Banking workflow chart outlines the steps involved in providing banking services to
customers. The first step is when a customer requests service, which may involve opening a
new account or performing a transaction on an existing account. If the customer is opening a
new account, the next step is to gather the necessary information and documentation to open
the account. This may include verifying the customer's identity, collecting their personal
information, and determining the type of account that best meets their needs.
Once the account has been opened, the next step is to perform any requested transactions on
the account. This may include deposits, withdrawals, transfers, or other banking services.
Throughout the process, it is important to provide the customer with a receipt for any
transactions performed. This can help ensure that the customer has a record of the transaction
and can be used for future reference or disputes.

Figure 2.2 Customer Service Process
The process begins with the customer requesting service, which could be through a variety of
channels such as phone, email, or online chat. The customer's information is collected, which
could include their name, contact information, and details about the issue they are
experiencing. This information is used to create a ticket, which is logged in a system to track
the progress of the issue.
The ticket is then assigned to the appropriate team based on the nature of the issue. For
example, a technical issue might be assigned to the IT team, while a billing issue might be
assigned to the finance team. The team works to resolve the issue, which could involve
troubleshooting, research, or other actions. If the issue has been resolved, the team confirms
the resolution with the customer. This could be done through a follow-up call, email, or other
communication. The customer confirms that the issue has been resolved to their satisfaction,
and the ticket is closed in the system.
Overall, this process ensures that customer issues are handled efficiently and effectively, with
clear communication and tracking throughout the process to ensure that the issue is resolved
to the customer's satisfaction. By following this process, organizations can improve their
customer service quality and customer satisfaction.

SERVICE PROFILE
city.
Savings Account:
Easy Account Opening Procedure: Mysore Cooperative Bank offers a straightforward process
for opening savings accounts, making it convenient for customers to start saving.
Facility of Computerized Passbook: Customers can easily track their transactions and account
balance through a computerized passbook provided by the bank.
Free Cheque Books: Account holders are provided with complimentary cheque books,
facilitating easy transactions and payments.
Free Ru-Pay Debit cum ATM Cards: Customers can access their funds conveniently through
Ru-Pay debit cards, which can be used for both online and offline transactions as well as for
ATM withdrawals.
Nomination Facility Available: The bank allows customers to nominate individuals who will
receive the funds in the event of the account holder's demise.
Minimum Balance of Rs. 1000: Account holders are required to maintain a minimum balance
of Rs. 1000 in their savings account.
Current Account:
Available to Various Entities: The current account is open to individuals, proprietorship

firms, partnership firms, companies, Hindu Undivided Families (HUFs), trusts, and other
entities.
Free Ru-Pay Debit-cum-ATM Card: Individual account holders are provided with a Ru-Pay
debit card for convenient access to funds and transactions.
Easy Account Opening Procedure: Similar to savings accounts, the current account can be
opened with a straightforward process, ensuring convenience for customers.

Loans
The cooperatives pool their surplus funds, which are then used as collateral to obtain loans
from a bank. This loan amount is used to further lend to the members of the cooperative.
When the members repay the loan to the cooperative, the cumulative amount is repaid to the
bank
Housing Loan:
Wide Eligibility: Housing loans are available to a broad range of entities including
individuals, proprietorship firms, partnership firms, companies, HUFs, co-operative societies,
and associations.
Free Debit-cum-ATM Card: Individual account holders availing housing loans are provided
with Ru-Pay debit cards.
Easy Account Opening Procedure: The bank offers a hassle-free process for opening accounts
for customers applying for housing loans.
Loan Against Property:
Loan for Business Needs: Customers can avail loans against marketable property to meet
their business requirements.
Attractive Interest Rates: The bank offers competitive interest rates for loans against
property.
Easy Repayment Schedule: Flexible repayment schedules are provided to borrowers, making
it easier for them to repay the loan.
Interest Applied on Daily Reducing Balance: Interest is calculated on a daily reducing

balance basis, potentially reducing the overall interest burden on the borrower.
SL.NO DETAILS INTEREST RATE
1. From 25lakhs to 50lakhs 12%
2. From 15 lakhs to 13.50%

24.99lakhs

3. From 15 lakhs 14.50%
Gold Loans:
Loan Against Gold Ornaments: Customers can obtain loans by pledging their gold ornaments
to meet their business needs.
Attractive Interest Rates: The bank offers competitive interest rates for gold loans @ 9% .
Easy Process and Repayment: The process for obtaining a gold loan is simple, and repayment
options are convenient for borrowers.
Interest Applied on Daily Reducing Balance: Similar to loan against property, interest for
gold loans is applied on a daily reducing balance basis .
Fixed Deposit
Sl. No. Duration of Days Interest
1. 31days to 90days 4.00%
2. 91days to 180days 4.50%
3. 181days to 270days 5.50%
4. 271days to 365days 7.50%
5. Above 1year 6.50%
Note: Senior Citizens above 60 years will be paid 0.50% higher interest.
Table 2.1 Interest rates on fixed deposits

OWNERSHIP PATTERN
The bank has owned funds of Rs. 1660.71 lakhs which consists of 34005 members as of the
current financial year 2022-2023.
Key Personals
NAME DESIGNATION
P Rajeshwari President
H Harish Kumar Vice - President
K Harshith Gowda Chief Executive Officer
K Umashankar Director
S Sommanna Director
P Savitha Director
S Aravind Director
J Yogesh Director
M Y Ramesh Gowda Professional Director
Table 2.2 list of Directors in the Bank
ACHIEVEMENTS AND REWARDS
The bank has been classified as “A” grade bank in Mysore city, the Reserve Bank of India
considered this bank as Grade I bank.
This bank has celebrated Silver Jubilee in the year 1933, Golden Jubilee in the year 1956,
Platinum Jubilee in the year 1976 and after completing 100 years in 2006 celebrated
centenary celebration in a befitting manner. On account of Centenary Celebrations on
24.12.2006 it was decided to honor one hundred Senior members and ten members who have
borrowed and regular in repayment.
The bank is encouraging for the education of the children of members with low income
bearing the tuition and examination fees. Children of the members who secure distinction in

public examinations, participate and win prizes in State and National Level sports events are
honored by the bank.10,000
The bank is providing Rs.10000 in the event of death of any member for the cremation and
ritual rites within 6 months-to the Nominee/ authorized persons of the members. This kind of
service is appreciated by everyone. A provision for meeting a day's food expenses of Bharath
Cancer Hospital of Mysore has been made.
A Health check-up Camp was organized to examine the health of the members where eye,
hears, throat, blood pressure, sugar and other tests were conducted for both male and female
members .
List of Being First :
• The First Registered Co-operative Institution in the entire Mysore City.
• The First Co-operative Bank in Mysore.
• The First Cooperative Bank to get permission for banking from the Reserve Bank of India.
• The First Cooperative Bank celebrating Centenary year in the entire state of Karnataka.
• The First Co-operative Bank in Mysore City to have more than twenty-five thousand
members from all sections of the Society.
• The First Cooperative Bank having the practice of helping the families of the deceased
members at the time of need.
FUTURE GROWTH AND PROSPECTS
Opening of 4 new branches in Mysore is a strategic move for Mysore Cooperative Bank to
expand its physical presence and accessibility to customers in key areas of the city. This
expansion allows the bank to reach a broader customer base and serve the growing population
in that locality.
Adopting new banking technology is crucial for the modernization and efficiency of Mysore
Cooperative Bank's operations. By integrating the latest technological advancements, such as
online banking platforms, mobile banking apps, and digital payment solutions, the bank can
enhance its service offerings, improve customer experience, and streamline internal
processes.

MCKINSEY’s 7S FRAMEWORK
McKinsey 7s model was developed in 1980s by McKinsey consultants Tom Peters, Robert
Waterman and Julien Philips with a help from Richard Pascale and Anthony G. Athos. Since
the introduction, the model has been widely used by academics and practitioners and remains
one of the most popular strategic planning tools.
The model highlights that there exists a domino effect when any one element is transformed
to restore effective balance. The central placement of shared values emphasizes that a strong
change culture impacts all the other elements to drive change. The 7 elements identified in
the McKinsey 7s model can be categorized as being hard or soft in nature. Hard elements
include strategy, structure, and systems. The soft elements of the McKinsey 7s model, in turn,
include shared values, staff, skills, and strategy.
1.Strategy:
The strategic direction and the overall business strategy for the co-operative bank are clearly
defined and communicated to all the employees and stakeholders. This helps the organization
manage performance, guide actions, and devise different tactics that are aligned with the
business strategy.
An important aspect of the strategy at Mysore co-operative bank is that it takes into constant
consideration the changing consumer trends and demands, as well as the evolving consumer
market patterns and consumption behavior. This is an important part of the strategic direction
as it allows the company to remain competitive and relevant to its target consumer groups, as
well as allows the company to identify demand gaps in the consumer market.
2.Structure:
The bank has a flatter organizational hierarchy that is supported by learning and progressive
organizations. With lesser managerial levels in between and more access to the senior
management and leadership, the employees feel more secure and confident and also have
higher access to information. It has a developed and intricate system for ensuring
communication between employees, and different managerial levels.
3.System:
The system of monitoring the performance of the employees is continual and ongoing done
through observation and informal discussions. Feedback to employees and overall department

heads is informally given regularly as and when is required. Formal evaluation of

performance is also conducted semiannually or quarterly, depending on the need and the
urgency of the projects and assigned tasks. This is a formal process that is undertaken by
supervisors and managers to ensure the identification of performance lags, and suggestive
means of improvement.
4. Shared values:
Creativity ,honesty ,transparency ,accountability ,trust, quality and heritage to foster a

creative and supportive organizational structure that will allow employees to perform
optimally, and enhance their motivation and organizational commitment. “Each for all and all
for each” is one of the principles they follow in the bank.
5. Style:
The co-operative bank is following participative leadership style, which will engage and
involve its employees in decision-making processes and managerial decisions. This also
allows the leadership to regularly interact with the employees and different managerial
groups to identify any potential conflicts for resolution, as well as for feedback regarding
strategic tactics and operations.
6.Staff:
There are around 50 employees in the organization and all the job roles and positions are
designed to facilitate the achievement of objectives and clearing of examinations prescribed
time to time .Based on the nature of the need, the human resource department arranges for
recruitments which may be permanent or contractual in nature, as well as arranges training
sessions if need be for the current workforce.
7.Skills:
Problem solving and analytical skills are required by the employees of the bank and they
should be able to perform the quickest basic calculations, multiplications, ratios, and
fractions. The human resource is one of the core competitive advantages of the bank and
skills of employees are developed specifically for job roles and requirements .

PORTER’S FIVE FORCE MODEL
Porter's five forces are used to identify and analyze an industry's competitive forces. The five
forces are competition, the threat of new entrants to the industry, supplier bargaining power,
customer bargaining power, and the ability of customers to find substitutes for the sector's
products.
The model guides businesses in determining the intensity of competition and potential
profitability within their market, helping them better understand where power lies in their
sector. Porter's model was meant to critique "perfectly competitive" business models, unlike
real-world markets where competitors aren't just rivals and firms in specific industries tend to
rise and fall together.
1.Bargaining Power of Buyers:
High bargaining power of customers on account of banks renders uniform services to the
clients. Now a day's almost all banks would like to provide requisite information very easily
by way to Internet, Mobile banking to the clients. If the bargaining power of customers is
high, they influence the profitability of the market by imposing their requirements in terms of
price, service, quality, clients is crucial because a firm should avoid to be in a situation of
dependence. The level of concentration of customers gives them more or less power.
2. Bargaining power of Supplier:
Low bargaining power of suppliers on account of RBI regulatory benchmarks. Banks have to
meet numerous regulatory standards created by RBI .The bargaining power of suppliers is
very important in a market. Powerful suppliers can impose their conditions in terms of price,
quality and quantity. On the other hand, if there are a lot of suppliers their influence is
weaker. One has to analyze the number of realized orders, the cost of changing the supplier,
the presence of raw materials.
3. Competitive Rivalry:
High competition of account of number of prominent public , private, foreign along with
cooperative banks. The competition between firms determines the attractiveness of a sector.
Banks are struggling to maintain their power. The competition changes based on sector
development, diversity and the existence of barriers to enter. In addition to this is an

analysis of the number of competitors, products, brands, strengths and weaknesses, strategies,
market shares.
4. Threat of New Entrants:
Low threat of new entrants on account of banking regulations. Before setting up of a new
bank, it is essential to take the consent of Reserve Bank of India .It is in a company's interest
to create barriers to prevent its competitors to enter to market. They are either new
companies, or companies which intend to diversify. These barriers can be legal and the
arrival of new entrants also depends on the size of the market (economy of scale) The
reputation of a company already installed, the cost of entry, access to raw materials, technical
standards, cultural barriers.
5.Threats of Substitutes Products:
High level threat from substitutes like NBFC's, Mutual funds, Government securities and T-
bills. The substitute products can be considered as an alternative compared to supply on the
market. These products are due to changes in the state of technology or to the innovation. The
companies see their products be replaced by different products. These products often have a
better price/quality report and come from sectors with higher profits. These substitute
products can be dangerous and the company should anticipate to cope with this threat.
SWOT ANALYSIS
SWOT analysis is used in Co-operative banks to evaluate their internal strengths and
weaknesses, as well as external opportunities and threats, enabling them to leverage their
strengths, address weaknesses, capitalize on opportunities, and mitigate potential threats for
the success and growth of the bank.
SWOT analysis is an acronym for (Strength, Weakness, Opportunities, and Threats) and is a
structured planning method that evaluates those four elements of an organization, project or
business venture.

Strengths:
1. Large client base: The Mysore Cooperative Bank boasts a substantial customer base,
indicating trust and reliability among the local populace.
2. Variety of new products and programs: The bank's diverse product range indicates
adaptability and innovation, catering to various financial needs of customers.
3. Short-term low-interest loan: Offering low-interest loans for businesses and small
enterprises enhances the bank's appeal and supports local economic development.
4. Skilled human resources: Having dedicated and skilled employees ensures efficient service
delivery and fosters customer satisfaction.
5. Friendly environment: A welcoming atmosphere in the bank contributes to positive

customer experiences and promotes customer loyalty.
6. Good reputation and reliability: A solid reputation signifies trustworthiness, which is

essential in the banking sector, leading to customer retention and attracting new clients.
7. Popularity among the people of Mysore: Being favored by the local community
strengthens the bank's position and fosters community engagement.
Weaknesses:
1. Limited area of operation: Restriction to a specific geographic area limits potential growth
opportunities and diversification.
2. Non-performing assets: Having a high proportion of non-performing assets can strain the
bank's financial health and hinder profitability.
3. Less adoption of new technologies: Lagging behind in technology adoption may result in
inefficiencies and hamper competitiveness in the digital age.
4. Few ATM booths: Insufficient ATM infrastructure may inconvenience customers and limit
accessibility to banking services.
5. Language barriers: Language barriers can hinder effective communication with diverse
customer segments and may require additional resources for translation services.

Opportunities:
1. Credit demand: Anticipating credit needs presents an opportunity to expand loan offerings
and attract new customers, stimulating business growth.
2. Technological advancement: Investing in technology can streamline operations, improve

customer experience, and enhance competitiveness in the market.
3. High household savings: The presence of high household savings indicates potential
opportunities for deposit mobilization and investment products.
4.Prime commercial area: Being located in a prime commercial area presents opportunities
for increased foot traffic and business partnerships.
5. Offering various loan types: Diversifying loan products can cater to different customer
segments and increase revenue streams.
Challenges:
1. Competition: Intense competition from other banks and financial institutions requires
strategic differentiation to maintain market share.
2. Government policy changes: Changes in government policies can impact regulatory

compliance and business operations, necessitating adaptability.
3. NBFCs, capital markets, and mutual funds: Competing with non-banking financial
institutions and capital markets requires innovative strategies to retain customers and attract
investments.
4. Inflation and recession: Economic fluctuations such as inflation and recession can affect
loan performance and financial stability.
5. High preliminary cost of new technologies: Initial investment costs for implementing new
technologies may strain financial resources and require careful budgeting and plan.

ANALYSIS OF FINANCIAL STATEMENTS
PROFIT AND LOSS STATEMEMT
A profit and loss (P&L) statement, also known as an income statement, is a financial
statement that summarizes the revenues, costs, expenses, and profits/losses of a company
during a specified period. These records provide information about a company’s ability to
generate revenues, manage costs, and make profit
Tabel 4.1 Profit and loss statement for five years from 2022-2018

BALANCE SHEET
A balance sheet is a financial statement that reports a company's assets, liabilities, and
shareholder equity. The balance sheet is one of the three core financial statements that are
used to evaluate a business.
Table4.2 Balance sheet for 5 years from 2022-2018

RATIO ANALYSIS
Ratio analysis is a financial analysis technique used to evaluate performance, profitability,

and financial health of a company by examining the relationships between different financial
variables. There are four categories of ratio analysis namely profitability, liquidity, solvency,
and valuation.
NET PROFIT MARGIN
Net profit margin, or simply net margin, measures how much net income or profit is
generated as a percentage of revenue. It is the ratio of net profits to revenues for a company
or business segment.
FORMULA : Net Profit Margin = Net Profit ⁄ Total Revenue x 100
YEAR NET PROFIT TOTAL REVENUE PERCENTAGE

2018 13400553 123388266 10.86%
2019 10655423 120754138 8.82%
2020 10271776 130634552 7.82%
2021 20063063 140217206 14.30%
2022 32451026 157156709 20.64%
Table 5.1 Net profit for five years
Figu
NET PROFIT
re 5.2
180000000 25.00%
160000000
140000000 20.00%
120000000
15.00%
100000000
80000000
10.00%
60000000
40000000 5.00%
20000000
0 0.00%
2018 2019 2020 2021 2022
NET PROFIT TOTAL REVENUE PERCENTAGE

Composition of net profit in total revenue for five years
INTERPRETATION:
From the above ratio we can say that the company has been experiencing growth in both
revenue and profitability over the specified period, with fluctuations in the net profit ratio
indicating varying levels of operational efficiency and profitability from one year to year.

ASSET TURNOVER RATIO
The asset turnover ratio measures how effectively a company uses its assets to generate
revenues or sales. The ratio compares the dollar amount of sales or revenues to the company's
total assets to measure the efficiency of the company's operations. To calculate the ratio,
divide net sales or revenues by average total assets.
FORMULA Asset Turnover Ratio = Net Sales / Total Assets
YEAR SALES TOTAL ASSETS ATR

2018 123388266 1139630607 0.108
2019 120754138 1133141124 0.106
2020 130634552 1299973926 0.1
2021 140217206 1447202608 0.096
2022 157156709 1520388761 0.103
Table5.2 Sales and total assets for five years
0.11 ASSET TURNOVER RATIO

0.108
0.108
0.106
0.106
0.104 0.103
PERCENTAGE
0.102
0.1
0.1
0.098
0.096
0.096
0.094
0.092
0.09
2018 2019 2020 2021 2022
YEARS
Figure 5.2 Asset turnover ratio for five years
INTERPRETATION
The data includes sales and total assets from 2018 to 2022, alongside the asset turnover ratio
for each year. Fluctuations in the ratio reflect changes in the company's efficiency in using
assets to generate revenue, with higher ratios indicating better utilization and lower ratios
suggesting decreased efficiency.

DEBT EQUITY RATIO

Debt to Equity ratio is a financial and a liquidity ratio that indicates how much debt and
equity a company uses. It shows the capital structure of the company and is calculated by
dividing the company's debts by shareholders' equity.
FORMULA Debt Equity Ratio = Total Debt / Total Equity
YEAR TOTAL DEBT TOTAL EQUITY PERCENTAGE
2018 97,90,06,216.23 16,72,14,249.60 5.85%

2019 96,01,32,124.11 17,51,56,234.75 548.31%
2020 1,14,76,36,416.89 18,40,98,155.05 6.23%
2021 1,14,52,56,444.72 20,90,91,484.32 5.48%
2022 1,29,12,09,830.43 23,42,17,430.69 5.51%
Table 5.3. Debt equity ratios for Five years
DEBT EQUITY RATIO

1,400,000,000.00
1,200,000,000.00
1,000,000,000.00
800,000,000.00
TOTAL
600,000,000.00
400,000,000.00
200,000,000.00
0.00
2018 2019 2020 2021 2022
YEARS
TOTAL DEBT TOTAL EQUITY
Linear (TOTAL EQUITY)
Figure5.3 Composition of debt and equity for five years
INTERPRETATION
Total Debt and Total Equity have shown an upward trend, indicating growth and investment.
The Debt Equity ratio remained stable around 5.5 from 2020 to 2022, suggesting a balanced
capital structure. However, the sharp increase in the ratio to 548.31 in 2019 raises concerns
about high financial risk due to excessive debt compared to equity. The company seems to
have improved its debt management in recent years.

INTEREST COVERAGE RATIO
The Interest Coverage Ratio (ICR) is a financial ratio that is used to determine how well a
company can pay the interest on its outstanding debts. The ICR is commonly used by lenders,
creditors, and investors to determine the riskiness of lending capital to a company.
FORMULA Interest Coverage Ratio = Net Profit / Interest on Deposits
YEAR NET PROFIT INTEREST ON DEPOSITS RATIO
2018 13400553 7,60,31,896.29 0.162

2019 10655423 7,27,21,121.67 0.1464
2020 10271776 7,15,48,152.00 0.1439
2021 20063063 7,41,45,805.63 0.27
2022 32451026 7,07,23,806.90 0.458
Table5.4 Net profit and interest on deposits for five years
INTEREST COVERAGE RATIO

0.5
0.45
0.4
0.35
0.3
RATIO
0.25
0.2
0.15
0.1
0.05
0
2018 2019 2020 2021 2022
YEARS
Figure 5.4 Interest Coverage ratio for five years
INTERPRETATION
The Interest Coverage Ratio, which reflects the company's ability to handle its interest
obligations, has been fluctuating but remained relatively low. A lower ratio implies that the
company's operating profits are not sufficient to cover its interest expenses adequately.

LOAN TO VALUE RATIO

LTV ratio is a metric to compare a loan amount to the value of the asset purchased with the
loan. This ratio is a lending risk assessment ratio that financial institutions and other lenders
examine before approving a mortgage .
FORMULA
Loan-to-Value Ratio = (Total Loans and Advances / Value of Assets) * 100
YEAR LOANS AND ADVANCES VALUE OF ASSETS RATIO
2018 39,33,52,450.30 1,13,96,30,607 34.49%

2019 41,25,72,841.30 41,25,72,841.30 36.39%
2020 73,35,31,835.30 1,29,99,73,926 56.43%
2021 74,58,86,827.30 1,44,72,02,608 51.52%
2022 84,09,18,552.39 1,52,03,88,761 55.35%
Table 5.5 Total amount of loans and assets for five years
LOAN TO VALUE RATIO

56.43% 55.35%
55.00% 51.52%
45.00%
36.39%
PERCENTAGE
34.49%
35.00%
25.00%
15.00%
5.00%
2018 2019 2020 2021 2022
RATIO 34.49% 36.39% 56.43% 51.52% 55.35%
YEARS
Figure 5.5 loan to value ratio for five years
INTERPRETATION
The LTV ratio was at its lowest, indicating conservative lending practices. Overall, the
company appears to have maintained a balanced approach in providing loans while ensuring
the value of assets supports its lending activities.
LEARNING EXPERIENCE

On the first day of the internship a brief introduction about the organization was given by the
General Manager. I started my internship under the guidance of Sri Harshith Gowda Sir,
who is the CEO and the General Manager at Mysore co-operative Bank Ltd . I was given an
opportunity to refer to the organization records. Wherein I got to know about the
documentation procedures involved in that work and gained a fair idea and the functions of
the bank. I came to know the various activities that the bank is involved with the
departments .
I learnt about the various types of services provided by the bank and their way of handling
customers. Account opening and closing procedures along with lending of different kinds of
loans especially the home loan and gold loan were taught to me . Various aspects relating to
book keeping ,maintaining registers of employees everyday attendance,
deposits ,withdrawals and knowing about the interest rates .
Information related to closure of accounts on maturity and process of reinvestment were also
been taught .I could see a lot of customers during the morning hours and the workload was
hectic due to this reason. All the counters were operating simultaneously at that time. I gained
understanding of financial reports and day-to-day operations.
The good quality service that the bank provided impressed me a lot. The customers have a
very good impression on the bank and have been the customers since long time . The working
hours are helpful to the customers. I am very impressed with the decorum of the bank. The
bank staff also helped me by providing the details and information of the bank for
completing the project.
The internship taken up in the bank has given me a very comprehensive image of the work of
the bank and I have gained complete knowledge of the working of bank. The bank I choose
has completed 100 years and it is a successful bank even today. The service is their motto. It
is one of the popular banks in the heart of the Mysuru city. I am proud to have taken up the
project in such a bank .I am thankful to the bank authorities to have given me an opportunity
to learn all the information listed above.

BIBLIOGRAPHY
https://themycobank.com/
https://www.dicgc.org.in/

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INTERNSHIP AT THE MYSORE CO-OPERATIVE BANK LTD

From this internship we can get a comprehensive understanding of banking operations,

Though much smaller as compared to scheduled commercial banks, co-operative banks

DEPARTMENT OF BUSINESS ADMINISTRATION ,VVCE, 1

DEPARTMENT OF BUSINESS ADMINISTRATION ,VVCE, 2

DEPARTMENT OF BUSINESS ADMINISTRATION ,VVCE, 3

1. Year Of Establishment 1906

2. Type Of Company Banking

3. Nature Of Business Lending and deposits

4. Address Gandhi Square , Lashkar

6. Pin code 570001

8. Phone Number 0821 252 1631

9. IFSC code IBKL01092MY

10. Services Loans, deposits ,banking.

Table 1 Details of the Mysore co-operative bank

BACKGROUND AND HISTORY

DEPARTMENT OF BUSINESS ADMINISTRATION ,VVCE, 4

VISION, MISSION, POLICY

• Increase shareholder value by maximizing profits per share over time.

DEPARTMENT OF BUSINESS ADMINISTRATION ,VVCE, 5

to achieve common goals .

Asset Quality: Regulatory authorities typically require cooperative banks to maintain a

DEPARTMENT OF BUSINESS ADMINISTRATION ,VVCE, 6

WORK FLOW MODEL

Figure 2.1 Workflow in a Co-operative bank

DEPARTMENT OF BUSINESS ADMINISTRATION ,VVCE, 7

Figure 2.2 Customer Service Process

DEPARTMENT OF BUSINESS ADMINISTRATION ,VVCE, 8

Available to Various Entities: The current account is open to individuals, proprietorship

DEPARTMENT OF BUSINESS ADMINISTRATION ,VVCE, 9

Loan Against Property:

Interest Applied on Daily Reducing Balance: Interest is calculated on a daily reducing

SL.NO DETAILS INTEREST RATE

1. From 25lakhs to 50lakhs 12%

2. From 15 lakhs to 13.50%

DEPARTMENT OF BUSINESS ADMINISTRATION ,VVCE, 10

3. From 15 lakhs 14.50%

Sl. No. Duration of Days Interest

1. 31days to 90days 4.00%

2. 91days to 180days 4.50%

3. 181days to 270days 5.50%

4. 271days to 365days 7.50%

5. Above 1year 6.50%

Table 2.1 Interest rates on fixed deposits

DEPARTMENT OF BUSINESS ADMINISTRATION ,VVCE, 11

H Harish Kumar Vice - President

K Harshith Gowda Chief Executive Officer

M Y Ramesh Gowda Professional Director

Table 2.2 list of Directors in the Bank

ACHIEVEMENTS AND REWARDS

DEPARTMENT OF BUSINESS ADMINISTRATION ,VVCE, 12

List of Being First :

• The First Registered Co-operative Institution in the entire Mysore City.

• The First Co-operative Bank in Mysore.

FUTURE GROWTH AND PROSPECTS

DEPARTMENT OF BUSINESS ADMINISTRATION ,VVCE, 13

DEPARTMENT OF BUSINESS ADMINISTRATION ,VVCE, 14

heads is informally given regularly as and when is required. Formal evaluation of

Creativity ,honesty ,transparency ,accountability ,trust, quality and heritage to foster a

DEPARTMENT OF BUSINESS ADMINISTRATION ,VVCE, 15

PORTER’S FIVE FORCE MODEL

1.Bargaining Power of Buyers:

2. Bargaining power of Supplier: