A Study On Financial Progress at SUBCO Bank

A Study on Financial progress at SUBCO Bank
A STUDY ON
“FINANCIAL PROGRESS
IN
SREE SUBRAMANYESHWARA CO-OPERATIVE BANK LIMITED “
Internship Report submitted in partial fulfillment of the requirements for the award of the
degree of
MASTER OF COMMERCE (FA)
OF
BANGALORE CITY UNIVERSITY
BY
ANUSHREE N
REG NO: FA191203

Under the Guidance of
Dr. VIJAYKUMAR A.B
Director
Seshadripuram First Grade College
Seshadripuram First Grade College
PG Department of Commerce and Management,
Yelahanka New Town, Bengaluru, Karnataka 560064
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DECLARATION
I, Anushree N student of Master of Commerce (Finance and Accounting), bearing the University
Registration Number FA191203 under Post Graduate Department of Commerce and Management,
Seshadripuram First Grade College, Yelahanka wish to declare That this Internship Report undertaken by is
my own original work And not a copy or imitation of a report submitted or prepared for Any other
College/Institution/University.
This Internship Report has not formed a basis for the award of Any other Degree/Diploma of any university
or Institution; nor Has it been submitted in any other college or institution for the Award of Master of
Commerce (Finance and Accounting) degree Under Bangalore University.
This is an original report submitted by me through my own Efforts.
Signature of the Student
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ACKNOWLEDGMENT
This project is an outcome of my practical knowledge at SREE SUBRAMANYESHWARA CO-

OPERATIVE BANK ,to fulfill the requirement of MASTER OF COMMERCE (FA) degree.
I would foremost like to thank Dr Vijayakumar AB, Director –Post Graduate Department of Commerce and
Management, Seshadripuram First Grade College, Yelahanka for his immense guidance and support
towards completion of this project work. Without his guidance And support I would not have been able to
finish this report.
I would like to thank Dr S N Venkatesh, Principal – Seshadripuram First Grade College, Yelahanka for his
guidance and Support by giving me this wonderful opportunity to pursue Master of Commerce (Finance
and Accounting) from this esteemed College.
I would like to thank all the staff members of Post Graduate Department of Commerce and Management,
Seshadripuram First Grade College, Yelahanka for their continued academic support and assistance
towards completion of this project work.
I would like to thank my Parents and Friends for always supporting me towards every academic activity I
have undertaken, for being there and motivating me.
I am very grateful to General Manager & Staff of the SUBCO BANK for their assistance in furnishing me the
data for the project
DATE
ANUSHREE N
REG NO:FA191203
PLACE: BANGALORE
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TABLE OF CONTENT
CHAPTER TITLE PAGE

NO.
1. INTRODUCTION
2. RESEARCH DESIGN
3. COMPANY PROFILE
4. DATA ANALYSIS AND

INTERPRETATION
5. FINDINGS AND RECOMMENDATIONS

AND
6. CONLUSION
7. BIBLIOGRAPHY
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LIST OF TABLES
SL.NO TITLE PAGE.

NO
4.1 Investment progress for the year ending 31st march
2018 2019 and 2020
4.2 Member and share capital for the year ending 31st
march 2018 2019 and 2020
4.3 Funding details for the year ending 31st march

2018 2019 and 2020
4.4 Collection of deposits for the year ending 31st march

2018 2019 and 2020
4.5 Loans of the bank for the year ending 31st march
2018 2019 and 2020
4.6 Investment of bank for the year ending 31st march

2018 2019 and 2020
4.7 Branches asset statistics for the year ending 31st march
2018 2019 and 2020
4.8 Net profit allocation for the year ending 31st march
2018 2019 and 2020
4.9 INCOME STATEMENT OF THE YEAR ENDING 31ST MARCH 2018 2019
AND 2020
4-10 COMPARATIVE STATEMENT OF THE YEAR ENDING 31ST MARCH

2018 2019 AND 2020
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LIST OF GRAPHS
SL.NO TITLE PAGE.

NO
4.1 Financial progress for the year ending 31st march
2018
2019
2020
march 2018
march 2019
march 2020
2018-2019
2019-2020
2018-2019
2019-2020
2018 2019 and 2020
2018 2019 and 2020
4.13 Investment of bank for the year ending 31st march 2018

2019
2020
4.16 Branches asset statistics for the year ending 31st march
2018 2019 and 2020
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4.17 Net profit allocation for the year ending 31st march
2018 2019 and 2020
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CHAPTER-1
INTRODUCTION
INTRODUCTION OF BANKING SYSTEM IN INDIA
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A bank is a financial institution that provides banking and other financial services to their customers. A bank
is generally understood as an institution which provides fundamental banking services such as accepting
deposits and providing loans. there are also nonbanking institution that provide certain banking services
without meeting the legal definition of a bank. Banks are a subset of the financial services industry.
A banking system also referred as a system provided by the bank which offers cash management services for
customers, reporting the transaction of their accounts and portfolios, throughout the day. The banking
system in India should not only be hassle free but it should be able to meet the new challenges posed by the
technology and any other external and internal factor. For the past three decades, India’s banking system has
several outstanding achievements to its credits. The banks are the main participants of the financial system
in India. The Banking sectors offers several facilities and opportunities to their customers. All the banks
safeguard the money and valuables and provide loans, credit, and payment services, such as checking
accounts, money orders, and cashier’s cheques. The banks also offer investment and insurance products. As
a variety of models for cooperation and integration among finance industries have emerged, some of the
traditional distinctions between banks, insurance companies, and securities firms have diminished. In spite
of these changes, banks continue to maintain and perform their role accepting deposits and leading funds
from these deposits.
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NEED OF THE BANKS:
Before the establishment of banks, the financial activities were handled by money lenders and individuals.
At that time the interest rates were very high. Again there were no security of publics savings and no
uniformity regarding loans. So as to overcome such problems the organized banking sector was established,
which was fully regulated by the government. The organized banking sector works within the financial
system to provide loans, accept deposits and provide other services to their customers. The following are the
functions of the bank the need of the bank and its importance :
 To provide the security to the savings of customers.

 To control supply of money and credit.
 To encourage public confidence in the working of the financial system, increase savings speedily and
efficiently.
 To avoid focus of financial powers in the hands of a few individuals and institutions.
 To set equal norms and conditions ( i ,e. rate of interest, period of lending etc ) to all types of
customers.
 To maintain economic stability by means of controlling money market.
 To assist the Govt. for trade& business and socio-economic development.
 To establish as an institution for maximizing profits and to conduct overall economic activities.
 To motivate people for investing money with a view to bringing solvency in them .
 To build up capital through savings.
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HISTORY OF INDIAN BANKING SYSTEM:
The Banking sector in India has seen a lot of transitions and changes over the centuries. It can be
broadly categorized into 3 sub-parts that are:
1. Pre-Independence (Before 1947)
2. II Phase (1947 to 1991)
3. III Phase (1991 and beyond).
Banking during Pre-Independence (1770 to 1947)
There were quite a few banks established during this time. The Banking System in India began with the
establishment of the Bank of Hindustan in 1770 but it stopped operating by 1832.
During this period, over 600 banks were established. However, very few were able to succeed. Some of the
banks were –
 The General Bank of India (1786-1791)
 Bank of Bengal (1809)
 Bank of Bombay (1840)
 Oudh Commercial Bank (1881-1958)
 Bank of Madras (1843)
This phase also witnessed the alliance of the 3 major banks – Bank of Bengal, Bank of Madras, and Bank of
Bombay established by The East India Company. They together amalgamated and formed the Imperial
Bank. This was taken over by the SBI (State Bank of India) in 1955.
Other Banks that were established during this time were – Allahabad Bank (est. 1865), Punjab National
Bank (est. 1894), Bank of India (est. 1906), Bank of Baroda (est. 1908), and Central Bank of India (est.
1911).
The reasons why many major banks failed to survive during the pre-independence period, the following
conclusions can be drawn:
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 Indian account holders had become fraud-prone.

 Lack of machines and technology.
 Human errors & time-consuming.
 Fewer facilities.
 Lack of proper management skills.
Following the Pre-Independence period was the post-independence period which observed some major
changes in the banking industry scenario and has to date developed a lot.
II Phase of Indian Banking – Banking Post Independence (1947 to 1991)
The then Government – after Indian Independence, decided to nationalize the Banks because all the major
banks were led privately which was a cause of concern as people in the rural areas still turned to money
lenders for assistance. Under the Banking Regulation Act, 1949, these banks were nationalized and the
Reserve Bank of India was nationalized in 1949. These banks are:
1. Allahabad Bank
2. Bank of India
3. Bank of Baroda
4. Central Bank of India
5. Bank of Maharashtra
6. Canara Bank
7. Dena Bank
8. Indian Overseas Bank
9. Indian Bank
10. Punjab National Bank
11. Syndicate Bank
12. Union Bank of India
13. United Bank
14. UCO Bank
In 1980 , 6 other banks were nationalized that are:

1. Andhra Bank
2. Corporation Bank
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3. New Bank of India

4. Oriental Bank of Comm.
5. Punjab & Sind Bank
6. Vijaya Bank
Seven subsidiaries of SBI which were nationalized in 1959:

1. State Bank of Patiala
2. State Bank of Hyderabad
3. State Bank of Bikaner & Jaipur
4. State Bank of Mysore
5. State Bank of Travancore
6. State Bank of Saurashtra
7. State Bank of Indore
All these banks were later merged with the State Bank of India in 2017, except for the State Bank of
Saurashtra, which was merged in 2008. State Bank of Indore was merged in 2010.
Impact of Nationalization on Banking System
There were several reasons for nationalism in the banks of India that are:
1. Nationalism led to an increase in funds and thereby increased the economic condition of the country.
2. It increased efficiency.
3. It helped in boosting the rural and agricultural sector of the country.
4. This opened up a major employment opportunity for the people.
5. The profit gained by Banks was used by the Government for the betterment of the people.
6. The competition was decreased and work efficiency had increased.
The post-independence phase was the one that led to the major development of the banking sector in India.
III Phase of Indian Banking (1991 to beyond)
To provide stability and profitability to the Nationalized Public sector Banks, the Government decided to set
up a committee under the leadership of Shri. M Narasimham to manage the various reforms in the Indian
banking industry.
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The biggest development was the introduction of Private sector banks in India. RBI gave license to 10
Private sector banks to establish themselves in the country. These banks included:
1. Global Trust Bank
2. ICICI Bank
3. HDFC Bank
4. Axis Bank
5. Bank of Punjab
6. IndusInd Bank
7. Centurion Bank
8. IDBI Bank
9. Times Bank
10. Development Credit Bank
List of Public Sector Banks and Private Sector Banks in India are:
1. Axis Bank
2. Bank of Baroda
3. Bank of India
4. Bandhan Bank
5. Bank of Maharashtra
6. Canara Bank
7. Central Bank of India
8. City Union Bank
9. Dhanlaxmi Bank
10. Federal Bank
11. HDFC Bank
12. IDBI Bank
13. Indian Bank
14. Indian Overseas Bank
15. ICICI Bank
16. IDFC Bank
17. Indusind Bank
18. Karnataka Bank
19. Karur Vysya Bank
20. Kotak Mahindra Bank
21. Lakshmi Vilas Bank
22. Punjab National Bank
23. Punjab & Sind Bank
24. RBL Bank
25. State Bank of India
26. South Indian Bank
27. UCO Bank
28. Union Bank of India
29. Yes Bank
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List of Small Finance Banks in India:

1. Capital Small Finance Bank
2. Equitas Small Finance Bank
3. Utkarsh Small Finance Bank
4. Suryoday Small Finance Bank
5. Ujjivan Small Finance Bank
6. ESAF Small Finance Bank
7. Au Small Finance Bank
8. Fincare Small Finance Bank
9. North East Small Finance Bank
10. Jana Small Finance Bank
List of payment banks in India:

1. Airtel Payment Bank Ltd.
2. Paytm Payments Bank
3. Fino Payments Bank
4. Jio Payments Bank
5. Aditya Birla Idea Payments Bank
6. India Post Payment Bank
The banks have revolutionized over the years. The Banking sector is extremely important for a country’s
economy. In order to keep the system to thrive, estimated interval changes and modifications are to be
made.
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GOVERNMENT POLICY ON BANKING INDUSTRY:
Banks operating in most of the countries must contend with heavy regulations, rules enforced by Federal and
State agencies to govern their operations, services offerings, and the manner in which they grow and expand
their facilities to better serve the public. A banker works within the financial system to provide loans, accept
deposits, and provide other services to their customer. They must do so within a climate of extensive
regulation, designed primarily to protect the public interests. The main reason why the banks are heavily
regulated are as follows:
 To provide safety of the public’s savings

 To provide the supply of money and credit in order to achieve a nation’s broad economic goal.
 To ensure equal opportunity and fairness in the public’s access to credit and other vital financial
services.
 To promote public confidence in the financial system, so that savings are made speedily and
efficiently.
 To avoid concentrations of financial power in the hands of a few individuals and institutions.
 Provide the Government with credit, tax revenues and others services.
 To help sectors of the economy that they have special credit needs for eg. Housing, small business
and agricultural loans etc.
THE REGULATIONS OVER BANKS IN INDIA:
The Banking Regulation Act of 1949 and the RBI Act 1953 has given the RBI the power to regulate the
banking system. The Indian banking sector is broadly classified into scheduled banks and non-scheduled
banks. All banks included in the Second Schedule to the Reserve Bank of India Act, 1934 are Scheduled
Banks. Some of the regulatory functions of RBI are :
 RBI issues license to commence new banking operations or to open new branches of the existing
banks through the power given to the RBI under the Banking Regulation Act 1949.
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 RBI controls the appointment of the chairman, directors and additional directors of banks in India.
 RBI ensures banks maintain transparency in disclosing any charges that they levy on their
customers and also ensures that money laundering is curbed through its KNOW YOUR
CUSTOMER guidelines that need to be ensured when anyone opens an account with them.
 RBI has its own monitoring procedure and system for audit and inspection on the basis of
“CAMELS” that stands for Capital adequacy, Asset quality, Management, Earning, Liquidity,
System and Control.
The BANKING REGULATIONS ACT 1949 was passed with the aim of having a specific Act for
Banking companies. Prior to this act, the banking companies were regulated by the Indian Companies Act,
1913. This comprehensive legislation ensured a minimum capital requirement to prevent bank failures and it
also eliminated cut-throat competition by regulation the opening of branches and deciding the location of
banks. The BR Act has thus helped in the balanced growth of banks in India and their working also. It has
ensured that the interests of the depositors are safeguarded.
CLSSIFICATION OF BANKING INDUSTRY IN INDIA:
Indian banking industry has been divided into two parts, organized and unorganized sectors. The
organized sector consists of Reserve Bank of India, Commercial Banks and Co-operative Banks, and
Specialized Financial Institutions (IDBI, ICICI, IFC etc.). The unorganized sector, which is not Indian Banking
System homogeneous, is largely made up of money lenders and indigenous bankers .
An outline of the Indian Banking structure may be presented as follows:-
1. Reserve banks of India.
2. Indian Scheduled Commercial Banks.
a) State Bank of India and its associate banks.
b) Twenty nationalized banks.
c) Regional rural banks.
d) Other scheduled commercial banks.
3. Foreign Banks
4. Non-scheduled banks
5. Co-operative banks.
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CO-OPERATIVE BANKING IN INDA:
INTRODUCTION OF CO-OPERATIVE BANKS:
Co-operative banks are financial entities established on a co-operative basis and belonging to their members. This
means that the customers of a co-operative bank are also its owners. These banks provide a wide range of regular
banking and financial services. However, there are some points where they differ from other banks. The co-operative
banking system came into being with the aim to promote saving and investment habits among people, especially in
rural parts of the country. In India, co-operative banks play a crucial role in rural financing, with funding of areas
under agriculture, livestock, milk, personal finance, self-employment, setting up of small-scale units among the few
focus points for both urban and rural cooperative banks. They provide a much-needed alternative to the age-old
exploitative practice of people approaching the village moneylender, most often getting into a debt-trap that they
struggle to pull themselves out of. The cooperative banking system came into being with the aim to promote saving
and investment habits among people, especially in rural parts of the country . In India, co-operative banks are
registered under the States Cooperative Societies Act. They also come under the regulatory ambit of the
Reserve Bank of India (RBI) under two laws, namely, the Banking Regulations Act, 1949, and the Banking
Laws (Co-operative Societies) Act, 1955.
They were brought under the RBI's watch in 1966, a move which brought the problem of dual regulation
along with it
The structure of commercial banking is of branch-banking type; while the co-operative banking structure is
a three tier federal one,
 A State Co-operative Bank works at the apex level.(i.e. works at state level)
 The Central Co-operative Banks works at the Intermediate level.( i.e. District Co-operative Banks
ltd. works at district level)
 Primary co-operative credit societies at base level (At village level)
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Features of Cooperative Society
1. Voluntary Association- The membership of cooperative societies is voluntary. Anybody having a

common interest is free to join a cooperative society. The member can also leave the society any
time after giving a proper notice.
2. Equal Voting Rights- A cooperative society is based on the principle of “one man one vote”. A
member has only one vote irrespective of the number of share(s) held by him. Thus, a co-operative
society runs on democratic principles
3. Separate Legal Entity- A cooperative society is required to be registered under the Co-operative
Societies Act. Registration provides it a separate legal entity. Its existence is quite different from its
members. The death, insolvency or lunacy of a member does not affect its existence. It can sue and
be sued in its own name. It can make agreements as well as purchase and sell property in its own
name.
4. Service Motive- A cooperative society is based on the service motive of its members. Its main
objective is to provide service to the members and not to maximize profits. Earning profits is the
most important objective of other forms of business organization. It is not so in the case of co-
operatives.
5. Distribution of Surplus- Members are paid dividend and bonus out of the profits of the co-operative
society. The bonus is given according to the volume of business transacted by each member with the
co-operative society.
6. State Control- Cooperative societies are subjected to regulation and control by the government. In
India a cooperative society can be registered under the Cooperative Societies Act, 1912 or the State
Co-operative Societies Act.
7. Elimination of Middlemen- The main object of the cooperative societies is to eliminate middlemen
and to establish direct contact between members and customers. This ensures availability of goods at
fair prices and minimizes unhealthy competition.
8. Cash Trading- Generally, a co-operative society buys and sells goods on cash basis. Cash trading
does not involve bad debts and credit collection expenses. Thus, it helps the society to have a good
working capital and to maintain short-term solvency.
9. Audit- Accounts of cooperative society are audited by the auditors appointed by the Government
under the supervision and control of Registrar of Co-operative Societies.
10. Principle of Self and Mutual Help- Cooperative society promotes the common interests of its
members through self-help and mutual help.
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11. Democratic Management- Annual General Meeting (AGM) of co-operative society is held every
year in which the managing committee is elected, which manages the affairs of the co-operative
society.
12. Perpetual Existence- Existence cooperative remains unaffected by the death, or insolvency of any
of its members. Thus, it has perpetual existence.
HISTORY OF CO-OPERATIVE BANKS IN INDIA:
The genesis of the cooperative movement and its implementation in a modern technical sense can be traced
after the Industrial Revolution in England during the period of 18th and 19th century. The idea of Hermann
Schulze and Friedrich Wilhelm Raiffeisen during the economic meltdown to provide easy credit to small
businesses and poor sections of the society took shape as cooperative banks of today across the world.
Pre-independence period (prior to 1947)
British India replicated this model and based on the recommendations of Sir Frederick Nicholson (1899) and
Sir Edward Law (1901), the Co-operative Credit Societies Act, 1904 was passed. It tried to deal with the
problems of rural indebtedness and consequent conditions of farmers in the country. The Act promoted the
establishment of credit cooperative societies which led to the formation of first urban co-operative credit
society, registered on October 1904 at Kanjeepuram now in Tamil Nadu State. It marked the beginning of
the institutionalization of the Cooperative Banking system in India. But there were certain defects in the Act
which restricted the reach of the expected benefits of cooperatives. The Act only permitted the registration
of credit societies, and there was no provision for the protection of non-credit societies or federal societies.
These shortcomings were recognized by the Government and to remedy it; more comprehensive legislation
was introduced, known as the Cooperative Societies Act of 1912. It recognized the formation and
organization of non-credit societies and the central co-operative federations.
In 1919, after the end of the first world war under the Treaty of Versailles,1919, the Montague Chelmsford
Reforms were introduced in India under which Cooperation becomes a transferred subject which was to be
administered by the States. The need for separate acts for effective implementation and to widen the reach of
the cooperative banks was felt by the States. The Bombay Provincial Government was the first to pass its
own act which was known as Bombay Provincial Cooperative Societies Act, 1925. Other state governments
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like Madras, Bengal, Bihar and Punjab followed the Bombay Act and passed their own legislation in the
following years.
In 1942, the British Government enacted the Multi-Unit Cooperative Societies Act, 1942, the ambit of which
covered societies whose operations are extended to more than one state. The Act provided for the regulation
of affairs of such society by the provisions of cooperative societies act of the state where the principal
business of the society is located.
Post-independence period (after 1947)
After independence, the movement of cooperative societies maintained its pace even after facing several
hardships during that phase and continued to be part of the economic development of the country. The First
Five Year Plan recognized the importance of cooperatives in the implementation of development plans,
particularly targeting the farmers and weaker section of the society. In 1954, Government of India appointed
a committee called All India Rural Credit Survey Committee to remedy the problem of rural credit and other
financial issues of the rural community. It recommended a well defined institutional framework for
cooperative organizations, particularly for meeting the needs of rural India. The recommendations of the
committee were recognized and were put into effect under the Second Five Year Plan. The Second Five
Year Plan recommended expanding the scope of cooperative activities to other fields with special emphasis
on the warehousing sector. The Third Five Year Plan emphasized on training personnel for the cooperative
sector and to increase the reach of the cooperative movement. The Fourth Five Year Plan recommended the
consolidation of a cooperative system for effective functioning. The Fifth Five Year Plan recommended the
establishment of Farmers Service Societies. The Sixth Five Year Plan developed a point program for a
cooperative society to bring economic development and for expanding the scope of cooperative societies.
The Seventh Five Year Plan also focus on expansion and growth of the scope of cooperative societies so as
to achieve greater employment and decrease poverty in the country.
Functions of Cooperative Banks
 It provides financial assistance to people with small means and protects them from the latches of
money lenders providing loans and other services at a higher rate at the expense of the needy.
 It supervises and guides affiliated societies.
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 Rural financing- It provides financing to rural sectors like cattle farming, crop
farming, hatching, etc. at comparatively lower rates.
 Urban financing- it provides financing for small scale industries, personal
finance, home finance, etc.
 It mobilizes funds from its members and provides interest on the invested
capital.
OBJECTIVES OF CO-OPERATIVE BANK:
 To provide rural financing and micro-financing.

 To remove the dominance of money lenders and middleman.
 To provide credit services to agriculturalists and weaker sections of the society at
comparatively lower rates.
 To provide financial support and personal financial services to small scale
industries, housing financial assistance, etc.
 To provide basic banking services to its members.
 To promote the overall development of rural areas.
STRUCTURE OF CO-OPERATIVE BANKS IN INDIA:
The co-operative banking structure in India is divided into Short term structure
and Long-term structure.
Short term structure has three levels
 A State Co-operative Bank works at the apex level (i.e. works at the state level).
 The Central Co-operative Bank works at the Intermediate Level (i.e. works at
district level).
 Primary Co-operative Credit Societies at a base level (i.e. works at village level).
Long term structure has two levels
 State Co-operative Agriculture and Rural Development Banks (SCARDBs) at the

apex level.
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 Primary Co-operative Agriculture and Rural Development Banks (PCARDBs) at the district level or
block level.
TYPES OF CO-OPERATIVE BANK IN INDIA:
The co-operative banking structure in India is divided into the following 5 categories:
1. Primary Co-operative Credit Society
 The Primary Co-operative Credit Society is an association of borrowers and non-borrowers residing
in a particular locality.
 The funds of the society are derived from the share capital and deposits of members and loans from
central co-operative banks.
 Borrowing constitutes the most important element of their working capital.
 The borrowing powers of the members as well as of the society are fixed but may differ from state to
state.
 The loans are given to members for the purchase of cattle, fodder, fertilizers and pesticides.
2. Central Co-operative Banks
 These are the federations of primary credit societies in a district and are of two types:
 Those having a membership of primary societies only.
 Those are having a membership of societies as well as individuals.
 The funds of the bank consist of share capital, deposits, loans and overdrafts from state co-operative
banks and joint stocks.
 These banks provide finance to member societies within the limits of the borrowing capacity of
societies.
 They also conduct all the business of a joint-stock bank.
3. State Co-operative Banks
 The state co-operative bank is a federation of central co-operative bank and acts as a watchdog of the
co-operative banking structure in the state.
 It procures funds from share capital, deposits, loans and overdrafts from the Reserve Bank of India.
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 The state co-operative banks lend money to central co-operative banks and primary societies and not
directly to the farmers.
4. Land Development Banks
 These are organized in 3 tiers, namely; state, central, and primary level with the objective to meet the
long term credit requirements of the farmers for developmental purposes.
 National Bank for Agriculture and Rural Development (NABARD) supervises Land development
banks.
 The sources of funds for these banks are the debentures subscribed by both Central and State
government as these banks do not accept deposits from the general public.
5. Urban Co-operative Banks
 It refers to primary cooperative banks located in urban and semi-urban areas.

 Earlier the scope of these banks was restricted, which now has been considerably widened.
 They provide funds and services to small borrowers and small business.
IMPORTANTS OF CO-OPERATIVE BANKS:
 It has an extensive branch network all over the country, making credit easily available even to rural
areas. It accounts for 67 per cent of total rural credit.
 It is an integral source for credit to agriculturalists.
 It confirms to the requirements of democratic planning and economic progress.
 It provides support to small and marginal farmers for buying inputs, storage and marketing
assistance.
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ADVANTAGES OF CO-OPERATIVE BANKS:
 Easy to form
 Registration and legal requirements are comparatively easy compared to traditional banks. It takes a
group of ten adults to form a cooperative bank. It needs a base capital of 25 lakhs only as compared
to 100 crores of Small Finance Banks.
 Alternative credit source
 One of the objectives of the cooperative system is to provide easy accessibility to the rural section of
the country so as to protect them from the clutches of greedy money lenders. These money lenders
exploit the needy by providing credit facilities at higher rates and by manipulating their accounts. It
acts as an effective alternative to this traditional money lending system.
 Cheap credit
 It provides cheap credit to rural masses. It provides a high-interest rate to members for their
investments and low lending interest rate. This also protects the rural masses from the exorbitant
interest rate at which money lender provides credit, thus breaking their monopoly.
 Encouragement of savings and investments
 It has encouraged the habit of thrift among the masses. Instead of hoarding money or spending
unnecessarily, masses tend to invest and save their money.
 Advancement in farming
 Cooperative societies provide credit to agriculturalists at cheaper rates to buy inputs, warehousing
facilities, marketing assistance and other facilities. These banks often provide assistance for buying
cheap products and services and help them by introducing them to modern technology and better
farming methods to improve their output.
RBI POLICIES FOR CO-OPERATIVE BANKS:
The RBI appointed a high power committee in May 1999 under the chairmanship of Shri, K, Madhav
Rao, Ex-Chief Secretary, Government of Andhra Pradesh to view the performance of Urban Co-
operative Banks (UCBs) and to suggest necessary measures to strengthen this sector, with reference
to the terms given to the committee, the committee indentified five broad objectives:
 To present the co-operative character of UCBs.

 To protect the depositor’s interest.
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 To reduce financial risk.

 To put in place strong regulatory norms at the entry level to sustain the operational efficiency
of UCBs in a competitive and evolve measures to strengthen the existing UCB structure
particularly in the context of ever increasing number of weak banks.
 To align urban banking sector with the other segment of banking sector in the context of
application or prudential norms in to and removing the irritants of dual control regime.
 RBI has extended the Off-Site Surveillance System (OSS) to all non-scheduled urban co-
operative banks (UCBs) having deposits size of Rs.100 Crores and above.
PROBLEMS FACED IN THE INDIAN CO-OPERATIVE BANKING
SYSTEM:
 Small capital base

Cooperative banks have a small capital base as it can start with a capital base of 25 lakhs, making it
difficult for them to account a portion of such capital as their working capital and raising working
capital has been a major hurdle for almost all cooperative banks.
 Political interference
Politicians use them to increase their vote bank and usually get their representatives elected over the
board of directors in order to gain undue advantages like sanctioning of loans which later gets written
off.
 RBI Supervision
The supervision of RBI is not as stringent on cooperative banks as compared to commercial banks.
RBI inspects the books of these banks only once a year.
 Dual control
Cooperative banks are controlled under the dual system, i.e. by RBI and by their respective State
government which poses a problem in coordination and management.
 Professional management and technological advancement
Cooperative banks are often reluctant to adopt new technologies like computerised data
management. Professional management in the banks is often missing due to lack of training of
personnel because of lack of funds.
 Dependence of finance
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Cooperative banks depend heavily on RBI, NABARD and the government for refinancing facilities.
It depends on the government for capital rather than on its members.
 Overdue loans
Overdue loans of cooperative banks are increasing yearly, restricting the recycling of funds which in
turn affects the lending and borrowing capacity of the bank.
MESURES TO BE TAKEN
In 2015, an RBI panel under R. Gandhi, a former deputy governor at the Central bank, had proposed
several governance reforms for the cooperative banking sector, some of which are as follows:
 Greater control and supervision of RBI upon the cooperative banks.

 These banks and other financial institutions should be professionally managed, which means that the
board of directors should be delegated power similar to those delegated under commercial banks.
Board of directors should be able to conduct an independent assessment and supervise the bank’s
functioning. They should be able to question the shareholder’s representation.
 The committee also recommended certain changes in Banking Regulation Act,1949, so as to increase
the ambit of power of RBI to wind up and liquidate banks without involving other regulators under
the cooperative societies’ laws.
 Conversion of UCBs into small finance banks by RBI should be allowed subject to fulfilment of
certain conditions.
 Creation of umbrella organization for supervising and coordinating the activities of all cooperatives.
Such an organization should be over and above the board of directors and should be reporting
directly to RBI so as to bring it under better control.
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FINANCIAL ANALYSIS
MEANING OF FINANCIAL ANALYSIS:
The term ‘financial analysis’ also known as analysis and interpretation of financial statements, refers to the process
of determining financial strengths and weaknesses of the firm by establishing strategic relationship between the
item the balance sheet, profit and loss account and other operative data .
DIFFERENT TYPES OF FINANCIAL ANALYSIS:
 External Analysis:
People outside the firm do external analysis. In the matter of financial statement analysis, investors, credit
agencies, government agencies, shareholders, etc., are outsiders/external parties to the firm.An external
analyst usually has only the published information to rely upon. His position has been improved in recent
times due to increased governmental regulations requiring business concerns to provide detailed information
to the public through audited accounts.
 Internal Analysis:
Analysis for management purposes is the internal type of analysis. It is done by the Company’s finance and
accounting departments and is more detailed than external analysis. Executives and employees of the
organization also conduct it. Officers appointed by the governmental or court agencies under regulatory and
other jurisdictional powers vested in them over the business also conduct the analysis.
 Horizontal Analysis:
It refers to the comparison of the trend of each item in the financial statement over a period of years, or that
of companies. The figures for this type of analysis are presented horizontally over a number of columns.
Such a column represents a year or a company. This type of analysis is also called as Dynamic Analysis as it
is based on data from year to year, rather than on data of any one year.
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 Vertical Analysis:
It is also called as Static Analysis. In vertical analysis the figures relating to a financial statement are
presented vertically, i.e., a figure from a year’s statement is compared with a base selected from the same
statement. This type of analysis is mainly used to study through ratios the quantitative relationship of
various items in the financial statement on a particular data, or for one accounting period. It is useful to
understand the performance of several companies in the same group, or many divisions or departments in
the same company.
MAJOR TOOLS OF FINANCIAL ANALYSIS:
1. Comparative Statement or Comparative Financial and Operating Statements.

2. Common Size Statements.
3. Trend Ratios or Trend Analysis.
4. Average Analysis.
5. Statement of Changes in Working Capital.
6. Fund Flow Analysis.
7. Cash Flow Analysis.
8. Ratio Analysis.
9. Cost Volume Profit Analysis
In this project, I have done only analysis of Comparative financial statements.
Comparative financial statement:
Comparative financial statement are the complete set of financial statements that an entity issues, revealing
information for more than one accounting period. The financial statements that may be included in this
package are:
 Comparative Balance Sheet

 Comparative Income Statement
Comparative balance Sheet:
Comparative balance sheet is the part of financial statement analysis. Comparative balance sheet is a balance
sheet that provides the amount of changes in assets, liabilities, and equities from the beginning to the end of
the the period.
Comparative Income Statement:
Comparative income statement is the part of financial statement analysis. This statement is made for analysis
of company’s revenue position. For making this statement, we take three years of income statements.
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CHAPTER-2
RESEARCH DESIGN
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CHAPTER-2
RESEARCH DESIGN
INTRODUCTION OF STUDY:
Taking control of your financial future is a process. As with any process, it is important to monitor your
progress and measure results. Doing so will help you to understand how well you are doing and to determine
if the financial strategies you are using are working.
A balance sheet provides a business with a snapshot view of its financial status. An income statement
measures progress. You should do the same with your personal finances.
Monitoring progress
Preparing a personal balance sheet annually should be part of your financial management. You simply add
up all you assets and subtract your liabilities to determine your net worth.
When preparing your personal balance sheet, separate your investment assets into stock, bond and cash
categories. Understanding your personal “asset allocation” will help you organize your finance and monitor
them. Many financial institutions provide financial statement formats as part of loan applications. You can
also find examples in almost any financial planning book.
Measuring your results
The other step, and the one that is more difficult, is determining how well you are doing. Determining your
“absolute results” or if your net worth has increased from year to year is easy. Determining your “relative
results” or how well your doing compared to the rest of the financial world is not easy. If your stock
portfolio went up15%, that is good if the overall market was only up10%. However, if the market was up
23% during the same period, a return of 15% is not so good.
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Measuring your results can be difficult in two ways. First, just doing the calculation can be complex,
especially if you added or withdrew money from your portfolio during the year. It is also difficult to know
what formula to use.
There are rate-of return calculation tools in many computer software programs. If you are using a
spreadsheet program, use the internal rate of return function to calculate the total return on your portfolio.
Second, you must have some basis of comparison to measure how well you compared to a benchmark. If
your portfolio is all stocks, you may want to compare your returns with those of an index life the S&P 500.
If your portfolio is all bonds, you may want to use the return on long-term governments bonds as a
comparison.
You can also compare your returns with quoted mutual funds returns. But, remember to compare with a fund
that has a similar make-up of its portfolio. If you are a conservative investor with a portfolio of blue chip
issues, do not compare your returns with an aggressive small company mutual fund.
PLACE OF STUDY:
All the activities are carried out in the Sree Subramanyeshwara Co-operative Bank.
SCOPE OF STUDY
 The data and information were gathered during training.

 The scope is limited to the secondary data only.
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OBJECTIVE OF THE STUDY:
 The role objective of the project is to help the management of the organization in decision making
regarding the subject matter.
 Calculation of financial statement and ration is only the clerical task whereas the interpretation of its
needs immense skill intelligence and foresightedness. One of the easiest and most popular ways of
evaluating performance of the organization is to compare its recent ratio with the past ones called
comparison and through development action plan.
 It gives an indication of the direction of change and reflects whether the organization’s financial
position and predominance has improved deteriorated or remained constant over period of time.
 Here much emphasis is given to historical comparison and on forecasting the immediate future
trends.
METHODOLOGY
The research involved extensive and intensive studies of Sree Subramanyeshwara Co-operative Bank
in this project report a sincere effort has been made to study the financial progress of the bank.
During the study, I study the financial position and performance of the bank. At last, I have given
interpretation and conclusion of the study.
DATA COLLECTION:
The whole of my study is based on secondary data of Sree Subramanyeshwara Co-operative Bank. I
have not taken any primary data for my study because primary data would not have been helpful to
my study. During tenure of my study I have taken help of the following secondary data.
 Annual report of Sree Subramanyeshwara Co-operative Bank.

 Annual audit report of Sree Subramanyeshwara Co-operative Bank.
 Balance sheet of Sree Subramanyeshwara Co-operative Bank.
 Development action plan of Sree Subramanyeshwara Co-operative Bank.
 Profit and Loss account of Sree Subramanyeshwara Co-operative Bank.
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LIMITATION:
 It is only based on mathematical interpretation of the figures and ignores the factor such as
management style, motivation of workers leadership etc.
 It is effected by the price level changes.
 It does not give any clue for future.
OVERVIEW OF CHAPTERS
CHAPTER-1 INTRODUCTION
This chapter includes the introduction about the topic financial progress, about the Bank
Sector and its history.
CHAPTER-2 RESEARCH DESIGN
Includes Title of the project; Scope, Objectives and also limitations of the project; Sample size,
Sampling techniques and Research Methodology.
CHAPTER-3 COMPANY PROFILE
Comprises History of SUBCO BANK; its Mission, Vision, Board of Directors, Organization Chart;
Awards, Key customers and competitors; Future Growth and Prospects.
CHAPTER-4 DATA ANALYSIS AND INTERPRETATION
Includes Introduction, Calculation of Comparative Income Statement; Comparative Balance Sheet.
CHAPTER-5 FINDINGS AND RECOMMENDATION AND CONCLUSION
This chapter comprises of findings, suggestion and conclusion of the project.
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CHAPTER-3
COMPANY PROFILE
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CHAPTER-3
COMPANY PROFILE
A BRIEF NOTE ON SREE SUBRAMANYESHWARA CO-OPERATIVE
BANK LIMITED:
Sree Subramanyeswara Co-operative Bank Ltd., popularly known as SUBCO BANK was established in the
year 1971 with a sole objective to extend financial assistance to weaker section, downtrodden people of the
Urban, Rural, District of Bangalore and adjacent districts of Bangalore for their various needs such as
Business, Self employment, Small scale and Cottage industries, Housing, Transport operators etc. to
improve their economic conditions which an enhancement in their incomes. Since the bank is working in
this direction and having uninterrupted track record of 50 years in extending its dedicated services. Dynamic
Leader, social Worker, Co operator Vysya Jyothi Dr. K. M. Rangadhama Setty is the Founder of this
Institution.
The Bank has its humble beginning with 240 members and maintained steady growth from year to year and
increased the member to 40000 for the year ended 31-03-2020. The bank is extending banking services
through its Nine Branches including Head office Branch located in Heart of the City at R. V. Road, near
Lalbagh West Gate. All the Nine Branches are located at thickly populated and business centers such as V.
V. Puram, Avenue Road, Vijayanagar, Subramanyanagar, Padmanabhanagar, Kacharakanahalli,
Yeshwanthapura, Nagarabhavi and Konanakunte extensions in the Bangalore city. All the Branches are
working in a well furnished of the Bank is providing banking services to the customers and members
blended with Co-operative principles.
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ACHIEVEMENTS:
1. The bank has been conferred by the government of Karnataka / Karnataka state Co-operative
Housing Federation as best performing urban Co-operative Bank continuously
for 14 years performing during the celebration of Co-operative week every year.
2. The Bank is having uninterrupted track record in declaring good Profits every year since its inception
i.e., for 50 years. The Net Profit for the period ended 31.03.2020 is Rs 4.08 Crores.
3. The Bank is having track record in declaring good dividends on subscribed share capital of members.
First bank in declaring the dividends of 25% in the year 1995, and later continuously for 7 years. The
Dividends Declared for the year 2018-2019 was 10%.
4. The Bank is having 40000 No., of members. The Bank’s Own funds exceeds Rs. 86.00 Crores and its
deposits exceeds Rs.404.00 Crores.
5. The Bank’s Capital Adequacy for the year ended 31-03-2020 is 20.14%, which is more than Reserve
Bank of India expectation for any sound Bank i.e., 9%.
6. The Bank has been classified as “A” class in Audit Classification, as awarded by the Department of
Co-operative, Government of Karnataka.
CUSTOMER SERVICES IN THE BANK
1. D. D. facilities all over India-Tie up with Commercial Banks.

2. Direct Clearing Facilities
3. Locker facilities
4. Additional interest 0.5% on Deposits of Senior Citizens
5. 1% Concession in interest rate for prompt repayment of loans installments
6. RTGS and NEFT facilities tie-up with commercial Banks
7. Core Banking Software
8. E – stamp facilities
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NON BANKING SERVICES:
Members are the backbone of the bank. In keeping the welfare measures of the members the board of
management has introduced and providing following Non- banking services.
1. Free personal Accident Insurance coverage of Rs. 100000/- for all the borrowers in the banks.
2. Medical Aid up to Rs. 10000/- for cancer, cardiac & Kidney Operations etc. , of any members of the
bank.
3. Death Relief Fund up to Rs. 10000/- as death relief fund to the family of the deceased members.
4. Interest concession of 1% p. a. for prompt and regular repayment of loan installments.
SOCIAL SREVICES:
1. Bank is giving priority to the community services which being the one of the Co-operative principles
and following are few examples
2. Financial sponsor to Small Water projects carried out by State Government.
3. Medical Aid to the Freedom Fighters.
4. Donation to the KIDWAI Memorial Cancer Hospital.
5. Donation to the Akshaya Pathra Scheme of ISKCON.
6. Donation of computers to the Government Schools.
7. Donation to the C. M. Relief Fund for Rehabilitation of North Karnataka Flood victims.
[Type text] Page 38

ORGANIZATION STRUCTURE OF THE BANK:
GENERAL BODY
BOARD OF DIRECTORS
GENERAL MANAGER
DEPUTY GENERAL DEPUTY GENERAL
MANAGER - 1 MANAGER - 2

BRANCH MANAGER
ACCOUNTANT
ASSISTANT ACCOUNTANT
ASSISTANT
SUB STAFF
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The bank is managed by cohesive and dedicated Board of Management comprised with Honorable
Directors, is a team of Social workers, Chartered Accountant, Auditors, Senior Officials Nationalized banks
and Engineers, Educationists and Businessmen.
BOARD OF DIRECTORS OF SUBCO BANK:
1. Dr. K.M. Rangadhama Setty -Founder- President

2. Sri. D R Vijayasarathi -Vice President
3. Sri. B L Venkatachalapathy - Director
4. Sri. P Rudramurthy - Director
5. Sri. Sathya murthy - Director
6. Sri. Nanje Gowda - Director
7. Sri. Suresh Babu M K - Director
8. Smt. Annapuranamma - Director
9. Smt. Mahalakshmi - Director
10. Sri. Jayalakshmi G Thotager - Director
11. Sri. Raveendra P K - Director
12. Sri. Ravi K - Director
13. Sri.Maruthi H - Director
14. S A Nagabhushan - Professional Director
15. M.C.Palanetrappa - Professional Director
[Type text] Page 40

FINANCIAL STRENGTHS OF THE BANK
(Rs. In Crores)
SL.N Particulars Position as on

O 31-03-2020
1. Paid up Share Capital Rs. 18.73
2. Reserves and Other Funds Rs. 67.47
3. Deposits Rs. 403.98
4. Working Capital Rs. 503.49
5. Loans and Advances Rs. 272.87
6. Net Profit Rs. 4.08
7. Capital Adequacy Ratio 20.14
8. Net NPA 13.52%
9. Dividend Declared -
10. Audit Classification “A”
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CHAPTER – 4
DATA ANALYSIS AND
INTERPRETATION
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FINACIAL PROGRESS FOR THE LASTTHREE YEARS 2018 2019 AND

2020
(Rs. In Crores)
31.03.2018 31.03.2019 31.03.2020 Growth in Growth

% 2019 in %
particulars 2020
Member's Number 38816 38641 38269 -0.5% -1.0%

Paid-up Share Capital 18.12 18.26 18.73 0.8% 2.6%
Reserve And Other Fund 59.77 63.11 67.47 5.6% 6.9%
Own Capital 77.89 81.37 86.2 4.5% 5.9%
Deposits 531.83 507.62 403.98 -4.6% -20.4%
Loan And Advances 265.74 263.66 272.87 -0.8% 3.5%
Working Capital 623.61 601.82 503.49 -3.5% -16.3%
Total Business 797.57 771.28 676.85 -3.3% -12.2%

Operating Profit 6.82 6.38 8.53 -6.5% 33.7%
Net Profit 4.25 4.04 4.08 -4.9% 1.0%
Priority Sector Loan 94.13 90.11 93.5 -4.3% 3.8%
Total Business For
Employees 6.33 6.27 5.55 -0.9% -11.5%
Net Non-Performing
Assets 6.98 6.36 13.52 -8.9% 112.6%
Capital Risk Asset Ratio 16.04 18.63 20.14 16.1% 8.1%
Audit Classification "A" "A" "A"
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Financial progress for the year 2018
2018
45000
40000
35000
30000
25000
20000
15000 2018
10000
5000
0
r l l s s l s fit fit oan es sets atio n
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[Type text] Page 44

2019
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[Type text] Page 45

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Pa ber
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15000
20000
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Page 46
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The number of members in financial year 2019 it was decreased by 0.5% and 1% in 2020. The share capital
in 2018 was increased by 0.8% and in 2020 it’s increased by 2.6%. Reserves and other funds have been
increased by 5.6% in 2019 and 6.9% in the year 2020. Deposits in the year 2019 are decreased by 4.6% and
20.4% in the year 2020. Loans and payables was decreased by 0.7% in 2019 and its increased by 3.4% in the
year 2020. Working capital has been decreased by 3.5% in 2019 and 16.3% 2020.Total business it was
decreased by 3.3% in 2019 and 12.2% in 2020. Operating profit its decreased in 2019 by 6.5% and increased
33.7% in the year 2020 compared to 2019. Net profit it is also decreased by 4.9% compare to 2018 and its
increased by 1.0% in 2020 compare to 2019.Total business for employees has been decreased by 0.9% in
2019 and 11.5% in 2020.Net non performing asset is decreased by 8.9% in 2019 and its quite increased by
112.6% in the year 2020.Capital risk asset ratio is increased in the both the years by 16.1% in 2019 and
8.1% in the year 2020.
MEMBER SHARE CAPITAL FOR THE YEAR 2018 2019 AND 2020
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(Rs. In Crores)
2018 2019 2020
Particulars No of Share No of Share No of Share

Members capital Members capital Members capital
Open Balance 38918 17.49 38816 18.12 38641 18.26
Current Year 486 1.68 487 1.70 325 1.35

Registration
Current Year Returns 588 1.05 662 1.56 697 0.88
Closing Year Balance 38816 18.12 38641 18.26 38269 18.73
Current Year Progress (-)0.3% 3.6% (-)0.4% 0.8% (-)1.0% 2.6%
MEMBER AND SHARE CAPITAL FOR THE YEAR 2018

[Type text] Page 48
40000
35000
30000
25000
20000
15000
10000 No. of Members
Share Capital
5000
0
ce
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[Type text] Page 49

40000
35000
30000
25000
20000
15000
Share Capital
10000
No of Members
5000
0
ce n s e ss
la an atio urn
lanc gre
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[Type text] Page 50

100%
90%
80%
70%
60%
50%
40%
30% Share Capital
20% No, of Members
10%
0%
ce n s e ss
la an atio u rn
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en e a ea r
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[Type text] Page 51

INFERENCE
The no of members in opening balance in the year 2018, 2019 and 2020 it was increased by 17.49%,18.12%
and 18.26%.The current year registration is 1.68% in 2018 and increased by 1.70% in 2019 and its
decreased by 1.35% in 2020. Current year returns has been increased by 1.56 in 2019 compared to 2018 and
decreased by 0.88% in 2020 compared to 2019. Closing balance is just 0.14% difference in 2019 compare to
2018 and 0.47in 2020 compare to 2019.Current year progress was decreased by 0.8% compare to 3.6% in
2018 and little increased by 2.6% in 2020 compared to 2018.
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FUND DETAILS FOR THE YEAR 2018 2019 AND 2020
Particulars 2018 2019 2020 Progress Progress

in % 2019 in % 2020
Reserves Fund 15.40 16.52 17.61 7.3% 6.6
Building Fund 4.70 4.87 5.03 3.6% 3.3
Bad And Doubtful Reserve 19.30 20.00 22.37 3.6% 11.9

Fund
Investment On Fund 12.58 13.70 14.09 8.9% 2.8
Standard Assets Fund 1.61 1.66 1.70 3.1% 2.4
Other Fund 6.18 6.36 6.67 2.9% 4.9
TOTAL 59.77 63.11 67.47 5.6% 6.9
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Fund details for the year 2018 - 2019
2019 Progress in %
9.00%
8.00%
7.00%
6.00%
5.00%
4.00%
3.00% 2019 Progress in %
2.00%
1.00%
0.00%
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[Type text] Page 54

Fund details for the year 2019 – 2020
Current year progress in %

12
10
4
Current year progress in %
2
0
nd
d
Fu
un
d
un
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Ba
[Type text] Page 55

INFERENCE
Reserve fund increased in 7.3% in 2019 and 6.6% in 2020.Building fund 3.6% is increased in the year 2019
and 3.3% in 2020. Bad and doubtful reserve fund is increased by 3.6% in 2019 and 11.9% in
2020.Investment on fund is more increased by 8.9% in 2019 and quite increased by 2.8% in 2020.Standard
asset fund in 2019 it was increased by 3.1% and 2.4% in 2020.Other funds increased by 2.9% in 2019 and
also more increased by 4.9% in 2020.
[Type text] Page 56

COLLECTION OF DEPOSITS FOR THE YEAR 2018 2019 AND 2020
Particulars 31.03.2018 31.03.2019 31.03.2020 2019 2020

Progress in Progress in
% %
Term Deposits 427.01 413.58 327.81
-3.1% -20.7%
Demand 104.82 94.04 76.17
Deposits -10.3% -19.0%
TOTAL 531.83 507.62 403.98
-4.6% -20.4%
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COLLECTION OF DEPOSITS FOR THE YEAR 2019
2019
Term Deposits Demand Deposits
0.00%
-2.00%
2019
-4.00%
-6.00%
-8.00%
-10.00%
-12.00%
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COLLECTION OF DEPOSITS FOR THE YEAR
2020
Term Deposits Demand Deposits
-18.00%
-18.50%
2020
-19.00%
-19.50%
-20.00%
-20.50%
-21.00%
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INTERPRETATION
[Type text] Page 60

LOANS OF THE BANK FOR THE YEAR 2018 2019AND 2020
Particulars 31.03.2018 31.03.201 31.03.2020

9
Personal loan 38.33 34.20 28.68
Over draft 18.17 16.03 14.96
Immovable property loan 190.35 197.36 210.22
Machinery movable property 1.42 0.28 0.54

Loan
Vehicle loan 1.05 0.73 0.58
Deposit loan 5.72 5.55 8.15
Gold loan 7.55 6.46 4.98
Staff loan 3.01 2.75 4.58
Loan on LIC NSC 0.14 0.16 0.18
[Type text] Page 61

Bill Discount - 0.14 -
TOTAL 265.74 263.66 272.87
LOANS OF THE BANK FOR THE YEAR 2018 – 2019
2019
200
160
120
80
40
0
an ft
la lo ra an ty
n r d lo er an an
rs
o v e
er
ty
ro
p Lo lo an an
Pe
O e lo lo an C
r op lep h icl
o
ist
ld ff
lo NS un
t
ep ab Ve p Go
St
a IC
sc
o
a bl ov De on
L
Di
ov ym an Bill
m n er Lo
Im hi
ac
M
2019
[Type text] Page 62

LOANS OF THE BANK FOR THE YEAR 2020
2020
250
200
150
100
2020
50
0
an ft an ty an an an an an C t
ra er NS un
la lo d y lo p Lo e lo
si t lo
ld
lo lo C co
n er rt pr
o cl aff LI is
so Ov pe e hi po Go St on ll D
Pe
r o l Ve De
an Bi
pr ab
b le ov Lo
ov
a ym
m ner
Im hi
ac
M
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INTERPRETATION
[Type text] Page 64

INVESTMENTS OF BANK FOR THE YEAR 2018 2019 AND 2020
2018 2019 2020
Particulars
Rs. Rs. Rs. Rs. Rs. Rs.
SLR Investments: 182.05 171.58 121.17

a) Central government
securities
a) Non-SLR 13.82 14.82 12.26
Investments:
b) Mutual funds
c) Mutual funds 40.50 28.75 13.50
d) Shares 0.05 54.37 0.05 43.62 0.05 25.81
Other banks: 74.54 71.29 44.29

a) Deposits
b) Called deposit 6.00 80.54 8.31 79.60 - 44.29
investment
[Type text] Page 65

Other assets: 40.91 43.36 39.35
TOTAL 357.87 338.16 230.62
INVESTMENTS OF BANK FOR THE YEAR 2018
Sales
SLR Investments
Non-SLR Investments
Other banks
Other assets
[Type text] Page 66

2019
SLR Investments
Non-SLR Investments
Other banks
Other assets
[Type text] Page 67

2020
SLR Investments
Non-SLR Investments
Other banks
Other assests
[Type text] Page 68

INTERPRETATION
[Type text] Page 69

BRANCHES ASSET STATISTICS FOR THE YEAR 2018 2019 AND

2020
31.03.20 31.03.20
18 19
Branches Deposits Loans Net Deposits Loans Net
and profi and profit
Advances t Advances
V.V puram 180.19 93.33 2.40 173.57 90.40 3.68
Avenue Road 62.15 48.02 3.38 56.43 39.39 1.42
Vijayanagar 117.92 44.03 0.28 109.45 50.05 1.12
Subramanyanagar 76.25 21.01 -0.31 73.98 26.23 0.37
Padmanabhanagar 55.81 16.98 -0.38 55.44 15.36 -0.13
Kacharakanahalli 9.00 13.09 1.49 7.93 12.40 0.87
Yashawanthapura 12.15 13.40 0.16 10.95 12.37 0.29
Nagarabhavi 9.95 7.00 -0.19 11.32 6.48 -0.21
Konanakunte 8.41 8.88 -0.12 8.55 10.98 -
Administrative office - - -2.46 - - -3.37
Total 531.83 265.74 4.25 507.62 263.66 4.04
31.03.2020
Deposits Loans and Net profit
Advances
125.90 88.70 5.22
47.03 41.55 0.26
95.43 54.80 1.52
65.28 33.92 0.82
40.80 16.85 0.10
6.97 7.97 0.12
[Type text] Page 70

7.36 12.45 0.41

8.72 6.34 -0.20
6.49 10.29 -0.17
- - -4.00
403.98 272.87 4.08
BRANCHES ASSET STATISTICS FOR THE YEAR 2018 2019 AND

2020
600
500
400
300 Deposits
Loans and Advances
Net profit
200
100
0
2018 2019 2020
[Type text] Page 71

INFERENCE
[Type text] Page 72

PROFIT DISTRIBUTION FOR THE YEAR ENDING 31ST MARCH 2018

2019 AND 2020
Particulars 31.03.2018 31.03.2019 31.03.2020
Reserve fund(less than 25%) 10619594 10372595 10200473
Cooperative education fund 636964 605400 612000
Dividend (17%) 318482 302700 306000
Bad and doubtful fund 28360000 1473250 1485000
Building fund 200000 21800000 21305203
Member general fund 270000 3000000 500000
Co-operative development fund 100000 500000 500000
Member death relief fund 150000 300000 2969000
Jubilee fund 900000 800000 1484000
Staff welfare fund 50000 1100000 50000
Charity fund 50000 50000 80000
Investment fluctuation fund 800000 50000 1300000
Dividend equalization fund 9203.55 6127.56 8083.17
Total 42464243.55 40360072.56 40799759.17
[Type text] Page 73

PROFIT DISTRIBUTION FOR THE YEAR ENDING 31ST MARCH 2018

2019 AND 2020
100%
90%
80%
70%
60%
50%
40%
30%
20% 2020
10% 2019
0% 2018
%) nd %) nd nd nd nd nd nd nd nd und und
25 fu (17 l fu g fu l fu t fu f fu e fu e fu y fu f f
h an tion nd tfu
din e ra en elie ile far
l ar it tion tion
st ca ide ub uil gen opm th r b a a
les edu Div d do B r l a
Ju we Ch ctu aliz
( e e e aff u u
d e an b ev d St fl
nt d e
q
f un ativ d em ve d ber e n
e r a M ti
rv pe B a em stm ide
ese oo p er M n ve Div
R C -o I
Co
[Type text] Page 74

INFERENCE
[Type text] Page 75

INCOME AND EXPENDITURE STATEMENT FOR THE YEAR 2018

2019 AND 2020
EXPENSES
Particulars 2018 2019 2020 2018-2019 2019-2020

Absolute % of Absolute % of
change change change change
Interest paid on 413074524.1 376618791 338896809.7 -36455733 -9% - -10%
deposits 37721981
Establishment 85124418 90991259 95056863 5866841 7% 4065604 4%
charges and PF
Directors fee and 2239891 2385618 3852751 145727 7% 1467133 61%
other expenses
Rent, Tax, 16229421 16142923 16413228.09 -86498 -1% 270305.09 2%
Insurance and
Electricity
Postage and 839038.7 730657.77 634725.14 -108380.9 -13% -95932.63 -13%
telephone
Audit fee 921125 923380 827800 2255 0% -95580 -10%
Depreciation and 15644385 12850688 24232974.8 -2793697 -18% 11382287 89%

provision
Printing , 1330428.66 1300252.51 1430216.14 -30176.15 -2% 129963.63 10%
Stationary and
Advertisement
Other expenses 16594052.26 17688506.83 17549631.21 1094454.6 7% -138875.6 -1%
Bonus 1799035 3479137 3534614 1680102 93% 55477 2%
Housing loan 540000 405000 425000 -135000 -25% 20000 5%
[Type text] Page 76

provisions
Net profit before 55964243.55 56160072.56 63799759.17 195829.01 0% 7639686.6 14%
tax
Income tax 13500000 15800000 23000000 2300000 17% 7200000 46%
Net profit 42464243.55 40360072.56 40799759.17 -2104171 -5% 439686.61 1%
TOTAL 610300562.2 579676285.7 566654372.3 -30624277 -5% - -2%

13021913
INCOMES
Particulars 2018 2019 2020 2018 - 2019 2019 - 2020

change change change change
Interest and -
discount 554239456.8 531226469.3 505235306.1 -23012988 -4% 25991163 -5%
Commission
brokerage 1121046 1177368 1198919.5 56322 5% 21551.5 2%
Other incomes 54940059.41 47272448.4 60220146.67 -7667611 -14% 12947698 27%

-
TOTAL 610300562.2 579676285.7 566654372.3 -30624277 -5% 13021913 -2%
[Type text] Page 77

COMPARATIVE BALANCE SHEET FOR THE YEAR 2018 2019 AND

2020
Particular 2018 2019 2020 2019 2020

s
CURRENT Absolute % of Absolute % of
ASSETS change change change chang
AND FIXED e
ASSETS
Cash in hand 19797898 24475542 28011765 4677644 24% 3536223 14%
Cash at bank 977565875 975462805 662458630 -2103069.81 0% -313004175 -32%

Call money
investment 60000000 83100000 - 23100000 39% -83100000 -100%
Investment 2386169297 2173965047 1491749047 -212204250 -9% -682216000 -31%

Loans and
Advances 2657358965 2636625217 2728650586 -20733748.24 -1% 92025369.3 3%
Interest
receivable on
loan/investme
nt 284928223.2 352359544.2 447480693 67431321 24% 95121149 27%
Bill receivable 2816056 22202 - -2793854 -99% -22202 -100%

Branch
Adjustment - - 40000 - - 40000 0%
Bank Building 24963240 24600185 24347175 -363055 -1% -253010 -1%

Furniture and
fixtures 19787527 18384356 16482577 -1403171 -7% -1901779 -10%
Bank Vehicle 1231030 984820 787855 -246210 -20% -196965 -20%
Other assets 28307019.0 36070738.5 35647097. 7763719.49 27% -423641.48 -1%
Total 6462925130 6326050457 5435655426 -136874674 -2% -890395031 -251%
[Type text] Page 78

CAPITAL AND LIABILITIES

Particulars 2018 2019 2020 2019 2020
change change change chang
e
CAPITAL &
LIABILITIES
Authorized share
capital 300000000 300000000 300000000 0 0 0 0
Paid-up share
capital 181164100 182613225 187272200 1449125 1% 4658975 3%
Reserve and other 43665852.5
funds 597718602 631086565.5 674752418.1 33367963.6 5% 6 7%
Deposit and other -
account 5318293085 5076199002 4039804262 -242094083 -5% 1036394740 -20%
Bill payable 2816056 22202 _ -2793854 -99% -22202 -100%

NPA interest
reserve 221579109.2 292868709.2 401256080.2 71289600 24% 108387371 37%
Interest payable
deposit 35761859 35054442 32320589 -707417 -2% -2733853 -8%
Other liabilities 63128075.23 67846239.14 59450117.63 4718163.91 7% -8396121.51 -12%

42464243.5
Net Profits 5 40360072.56 40799759.17 -2104171 -5% 439686.61 1%
TOTAL 6462925130 6326050457 5435655426 -136874673 -74% -890395032 -93%
Guaranty issued
[Type text] Page 79

A Study On Financial Progress at SUBCO Bank

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A Study on Financial progress at SUBCO Bank

SREE SUBRAMANYESHWARA CO-OPERATIVE BANK LIMITED “

MASTER OF COMMERCE (FA)

BANGALORE CITY UNIVERSITY

REG NO: FA191203

Dr. VIJAYKUMAR A.B

Seshadripuram First Grade College

PG Department of Commerce and Management,

Yelahanka New Town, Bengaluru, Karnataka 560064

[Type text] Page 1

This is an original report submitted by me through my own Efforts.

Signature of the Student

[Type text] Page 2

This project is an outcome of my practical knowledge at SREE SUBRAMANYESHWARA CO-

[Type text] Page 3

CHAPTER TITLE PAGE

4. DATA ANALYSIS AND

5. FINDINGS AND RECOMMENDATIONS

[Type text] Page 4

SL.NO TITLE PAGE.

4.3 Funding details for the year ending 31st march

4.4 Collection of deposits for the year ending 31st march

4.6 Investment of bank for the year ending 31st march

4-10 COMPARATIVE STATEMENT OF THE YEAR ENDING 31ST MARCH

[Type text] Page 5

SL.NO TITLE PAGE.

4.14 Investment of bank for the year ending 31st march

[Type text] Page 6

[Type text] Page 7

INTRODUCTION OF BANKING SYSTEM IN INDIA

[Type text] Page 8

[Type text] Page 9

NEED OF THE BANKS:

 To provide the security to the savings of customers.

[Type text] Page 10

HISTORY OF INDIAN BANKING SYSTEM:

Banking during Pre-Independence (1770 to 1947)

[Type text] Page 11

 Indian account holders had become fraud-prone.

II Phase of Indian Banking – Banking Post Independence (1947 to 1991)

In 1980 , 6 other banks were nationalized that are:

[Type text] Page 12

3. New Bank of India

Seven subsidiaries of SBI which were nationalized in 1959:

Impact of Nationalization on Banking System

III Phase of Indian Banking (1991 to beyond)

[Type text] Page 13

List of Small Finance Banks in India:

List of payment banks in India:

[Type text] Page 15

GOVERNMENT POLICY ON BANKING INDUSTRY:

 To provide safety of the public’s savings

THE REGULATIONS OVER BANKS IN INDIA:

[Type text] Page 16

CLSSIFICATION OF BANKING INDUSTRY IN INDIA:

[Type text] Page 17

CO-OPERATIVE BANKING IN INDA:

INTRODUCTION OF CO-OPERATIVE BANKS:

[Type text] Page 18