5. OSCB-FIN-Puri-12.docx

8/11/2019 5. OSCB-FIN-Puri-12.docx

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Submi t t ed b y :BAIKUNTHA BIHARI PRADHAN

Regd. No : 590/09 Roll No : 10MBA702

Under the guidance of :

External Guide Internal GuideMr. S.K. Das SRIKANT CHANDRA PRADHANSenior Manager, OSCB (FINANCE)

DDCE, SAMBALPUR UNIVERSITYJYOTI VIHAR, BURLA


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DECLARATION

I hereby declare that the Project report entitled Sources andApplication of Funds of O.S.C.B being submitted by me to the DDCE,

Sambalpur University is partial fulfillment of Master of Business

Administration Under DDCE, Sambalpur University. It is my own and has

not been submitted to any other university or published any time

before.

Baikuntha Bihari Pradhan

Roll No. : 10MBA702DDCE, Sambalpur University


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CERTIFICATE

This is to certify that Baikuntha Bihari Pradhan, a student of DDCE,

Sambalpur University has prepared a Project report titled Sources and

Application of F unds of O.S.C.B as a partial fulfillment of MBA degree

for the Academic Year 2009-2011. This has not formed a basis for the

award of any Degree /Diploma by this university or any other university.

We wish all success in her future endeavor.

S.K. DasSenior Manager (OSCB)


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EXAMINERS CERTIFICATE

This project is submitted by Baikuntha Bihari Pradhan of MBA bearing the

Roll No. 10MBA702 under DDCE, Sambalpur University and forwarded for

evaluation.

Internal Examiner External Examiner


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CERTIFICATE OF APPROVAL

This is to Certify that the Project Entitled: Sources and Application of Funds of O.S.C.B

Submitted by Baikuntha Bihari Pradhan (Enr. No 590/09), Sambalpur University, Burla towards

partial fulfillment of the requirements for the award of the degree of Master of Business Administration

(MBA) is a bona fide record of the work carried out by him under the able guidance of Samir Mishra ,

Faculty, NICE, Talcher.

(Approval of the Center Director)


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CERTIFICATE OF GUIDE

This is to certify that Baikuntha Bihar i Pradhan bearing the

Enrollment No. 590/09 is a bonafide student of DDCE, Sambalpur

University. She has conducted the Project report on Sources and

Application of F unds of O.S.C.B in O.S.C.B under my guidance as per

the partial fulfillment of the requirement of the degree of M.B.A.

To the best of my knowledge she has work sincerely to being this report.

Srikant Chandra Pradhan


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ACKNOWLEDGEMENT

I wish to take this opportunity to express my deep sense of gratitude to

Mr. Srikant Chandra Pradhan from NICE, TALCHERfor his invaluable guidancein this endeavour. He has been a constant source of inspiration and I sincerely

thank him for his suggestions and help to prepare this report.

I express my deep sense of gratitude to my external guide Mr. S.K. Das SeniorManager (OSCB) of O.S.C.B, Orissa, for offering me suggestions and help insuccessfully completing my project report.

Finally, It is my foremost duty to thank all my respondents, who helped me to

complete my project work without which this project would not have been

possible.

Baikun tha Bihari Pradhan Roll No : 10MBA702


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PREFACE

In the MBA course curriculum a student has to undergo on a

specific topic as per his choice. As I have some interest aboutaccountancy and financial market so I chose finance as my area of work.

As OSCB is a co-operative bank, using its funds for agricultural field, so I

chose OSCB bank as my project place. In OSCB the fund mainly comes

for agriculture purpose and distributes loans to poor farmers with a little

rate of interest. It mainly collects funds from NABARD and RBI forimproving agricultural sector. It also gets funds from Govt. in the form of

subsidy for recovering its losses. Rather then other commercial banks, it

provides loans to the farmers without any mortgage. So it suffers losses.

As it is basically collects from NABARD, RBI and Govt. and provides loans

to farmers for improving agriculture sectors, so I like to do my report onSources and uses of Funds of OSCB


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Chapters

1. Sources and uses of funds

Introduction

Objective of study

Method of study

Scope of study

Limitation

2. Indian banking system

Chart

Classification of banks

Nationalization of banks

Liberalization of banks

3. Bank profile

History

Achievements

Structure of OSCB

4. Review of literature

Sources of funds

Uses of funds5. Sources and uses of funds of OBCB

Sources of funds

Paid up share capital

Reserves

Owned fund

Deposits


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Borrowings

Borrowed from NABARD for weavers

Net profits

Uses of funds

Distribution loans and advances

Investment

Dividend

Seasonal crop loans

6. Conclusions and suggestions

Conclusions

Suggestions

7. Appendix

Appendix A

profit and Loss A/c:

Balance Sheet of OSCB:

Appendix B

Abbreviation

Bibliography


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1. Sources and Uses of funds

What and Why

Sources and uses of fundsIntroduction

Financial management is that manager electivity which is concerned with

the planning and controlling of firms financial resources. Generally it deals withfour types of decisions. They are; Investment Decisions, Financing Decisions,

Dividend Decisions and Liquidity Decisions.

A firms investment decision involves capital expenditures. It refers to

capital budgeting decisions. It involves allocation of capital long term assets. That

would yield benefits in future. Generally investment proposals evaluated in terms

of expected returns. Besides the decision to commit funds in new investment

proposals, capital budgeting also involves replacement decisions.

Financing decisions involves when, where and how to acquire funds to meet

the firms investment needs. The central issue before manager is to determine the

appropriate proportion of equity and debt. The mix of equity and debt is known as

firm s capital structure.

Introduction

Objective of study

Method of study

Scope of study


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In dividend decisions, the manager must decide whether the firm should

distribute all profits, or retain them, or distribute a portion and retain the balance.

The proportion of profits distributed as dividends is called dividend pay out ratio.

The optimum dividend policy is one that maximizes the market value of the firm s

shares.

Liquidity decisions refers to the investment of current assets, affects the

firms profitability and liquidity. Current assets management that affects firm s

liquidity is yet another important financial function. Lack of liquidity in extreme

situation can lead to the firms insolvency. So current assets should be managed

efficiently for safeguarding the firm against the risk of illiquidity. If the firm

doesnt invest sufficient funds in current assets, it may become illiquid and

therefore, risky. But it would lose profitability, as idle current assets could not

earn anything.

All the results of these decisions can be done through financial statement.

Financial statement is the statement which shows financial position and operatingresults of the firm. Mainly financial statement refers to profit and loss account and

balance sheet. It also refers to the process of determining financial strength and

weakness of the firm by establishing strategic relationship between the items of

the balance sheet and profit and loss account.

This project based on sources and uses of funds in OSCB. There are

various sources of raising long term funds including issue of shares, debentures,

etc. The short term requirement of funds can be met from commercial bank,

trade credit, installment credit, advances, factory, etc. Uses of funds refer to funds

lost in operation, redemption of preference share capital, purchase of non-current

assets, etc.


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In OSCB funds comprising of paid of capital and reserves, deposits and

borrowings. A major part of the resources are deployed in loans and advances to

the affiliated CCBs, member societies and individuals.

Objective of study

To study the sources of collecting funds of OSCB.

To study the effective utilization of funds.

To study the financial performance of the bank.

Methods

The study is mainly based on primary and secondary data. The primary data

is collected from staffs of OSCB and secondary data collected from annual report

of OSCB, from internet, management accounting books, various magazines and

web sites. Sample size is very small. It contains data of three years.

Scope

All activities of the summer project were carried out in the training institute

of Orissa state co-operative bank, Bhubaneswar, under the guidance of finance

faculty and also in DDCE, Sambalpur University, under the guidance of finance

faculty.

Limitation

It is only based on mathematical interpretation. It totally ignorespsychological and behavioral aspects like motivation, leadership, and

costumers satisfaction.

Time period is limit.

Collected data size is small i.e. contains only three years data.


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2. Indian banking system

INDIAN BANKING SYSTEM


Over the years the nationalized banks have acquired a place of prominence

and have seen tremendous progress. The need to become highly customer

focused has forced these slow-moving banks to adopt a fast track approach.

On the other hand private banks have been fast on the uptake and are

reorienting their strategies using the internet as a medium.

Complementing the roles of the nationalized and private banks are the

specialized financial institutions or Non Banking Financial Institutions (NBFCs).

With their focused portfolio of products and services, these Non Banking Financial

Institutions act as an important catalyst in contributing to the overall growth of

RESERVE BANK OF INDIA

COMMERCIAL BANKS INSURANCE COMPANIES MUTUAL FUNDS DEVELOPMENT BANKS

SBI, OBC, UBIALLAHABAD BANKANDHRA BANKICICI BANK, HDFC

ETC.

LICGICETC.

UTIRELIANCEKOTAK MAHINDRAETC.

NABARDSIDBIIDBIICICI

IFC

Chart


Nationalization of banks


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the financial services sector. NBFCs offer loans for working capital requirements,

facilitate mergers and acquisitions, IPO finance, etc. apart from financial

consultancy services. Trends are now changing as banks (both public and private)

have now started focusing on NBFC domains.

Co-operative banks are nimble footed in approach and armed with efficient

branch networks which focus primarily on the retail segments. These banks which

focus on areas of agriculture, rural development etc. has lower overheads. This

enables them to give a marginally higher percentage on savings deposits.

Among the above stated banks the Indian nationalized banks (banks ownedby the government) continue to be the major lenders in the economy due to their

sheer size and penetrative networks which assures them high deposit

mobilization.

Moreover, to control the actions of these banks, the Reserve Bank of India

acts a centralized body monitoring any discrepancies and shortcoming in the

system.

Over the years, the Indian banking has gone through two main phases or

changes which need to be noticed and are therefore explained in the following

paragraphs.

1. Nationalization of banks

By the 1960s, the Indian banking industry had become an important tool to

facilitate the Development of the Indian economy. At the same time, it had

emerged as a large employer, and a debate was ensued about the possibility to

nationalize the banking industry. So for this, Indira Gandhi, the-then Prime

Minister of India expressed this intention of the GOI (Government of India) in the

annual conference of the All India Congress Meeting in a paper. The paper was

received with positive enthusiasm. Thereafter, her move was swift and sudden,


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and the GOI issued an ordinance and nationalized the 14 largest commercial

banks with effect from the midnight of July 19, 1969. This nationalism was

described as a "masterstroke of political sagacity by one of the national leaders

of India.

A second dose of nationalization of 6 more commercial banks followed in

1980. The stated reason for the nationalization was to give the government more

control of credit delivery. With the second dose of nationalization, the GOI

controlled around 91% of the banking business of India.

The nationalized banks were credited by some; including Home minister P.Chidambaram, to have helped the Indian economy resist the global financial crisis

of 2007-2009.

List of Public Sector Banks in India is as follows:

Allahabad Bank, Andhra Bank, Bank of Baroda, Bank of India, Bank of

Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, Dena Bank,

Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce, Punjab and Sind

Bank, Punjab National Bank, State Bank of Bikaner & Jaipur, State Bank of

Hyderabad, State Bank of India (SBI), State Bank of Indore, State Bank of Mysore,

State Bank of Patiala, State Bank of Saurashtra, State Bank of Travancore,

Syndicate Bank, UCO Bank, Union Bank of India.

2. Liberalization of banks

In the early 1990s, the then Narsimha Rao government embarked on a

policy of liberalization, licensing a small number of private banks. The examples of

private banks include Global Trust Bank (the first of such new generation banks to

be set up), which later amalgamated with Oriental Bank of Commerce, Axis

Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank.


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Effects of Liberalization: The liberalization brought huge changes in the banking

industry. Some of these changes are stated below.

The reserve which needed to be kept with the RBI was reduced to a great

degree. The Reduction of the CRR and SLR resulted in increased flexibility for

banks in determining both the volume and terms of lending.

There was deregulation of interest rates which aimed at promoting financial

savings and growth of the organized financial system.

Because of the lowering of entry barriers, competition has significantly increased

since the beginning of the1990s. Seven new private banks entered the marketbetween 1994 and 2000. In addition, over 20 foreign banks started operations in

India since 1994.

After the episodes of nationalization and liberalization, the next stage for the

Indian banking had been setup with the proposed relaxation in the norms for

Foreign Direct Investment, where all Foreign Investors in banks may be given

voting rights.


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3. Bank Profile

ORISSA STATE CO-OPREATIVE BANK

History

The Orissa Provincial Co-operative Bank is one of the manifestations of the

great historical identity of Oriya people. Orissa province was formed on 1 st April

1936. In April 1941 Bihar and Orissa provincial co-operative Bank was formed. A

few months after the formation of Orissa province the Orissa Co-operative Bankwas registered on 15 th August 1936. It could not start its functions due to pending

of Govt. decision on the enquiry in to the conditions of co-operative movement

in Orissa. The name of Orissa Provincial Co -Operative Bank was changed to

Orissa State Co -operative Bank.

The Orissa State Co-operative Bank - It is a Scheduled Bank under RBI Act

was registered in the year 1948 as the Apex Bank of the short term Coop. Credit

structure of Orissa with an objective of Development of the agrarian economy of

Orissa by catching the credit equipment of the terms of the state. The OSCB had

made a humble beginning with a Share Capital of Rs. 1.76 Lakhs and a borrowing

of Rs.25.50 Lakhs to address the problem of farm credit dispensation. Now it has

17 Central Cooperative banks (CCB), 308 branches which in turns support 2817

Primary Agricultural Cooperative Societies (PACS) and having 42 Lakhs members.

History

Functions

Achievements

Ob ectives


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The bank is also impacting training facility on the subjects regarding co-operative

principals and activities among the employees of different types of co-operatives

in Agricultural co-operative staff training institutive (ACSTI).

The Orissa co-operative act was passed in 1962. As such registrar regulates

the functioning of societies. Auditing the accounts books part in managing

committee, but government was not directly involved in management affairs in

which registrar was regarded as friend, philosopher and guide for co-operative

movement. RBI and subsequently NABARD in 1983 are refinancing all type of firm

credit.

The Bank has assumed the role of leader of the Coop - Credit Structure to

develop the lower tiers to cope with the emerging challenges of banking activities.

The activities of OSCB are:

General Banking Business

Re-finance to the DCCB

Dispensation of farms credit

Production Credit

Functions

The Orissa State Co-operative Bank as the Apex level institution of the short term

Co-operative credit delivery system in the state is playing major role

strengthening DCCB/ ACS for the Socio- economic structure of Orissa.

ACHIEVEMENTS

1. Large network of 2817 PACS / LAMPS / FSS and 308 Branches of 17 Central

Co-operative Banks at the Block level.

2. 80% of agricultural families are covered / enrolled as members of PACS /

LAMPS / FSS.


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3. Providing easy access to credit through 6.40 lakh Kisan Credit Cards issued to

the frames (13% of total KCC issued in the country).

4. Purveying 71 % of total agricultural credit (crop loan) disbursed in the State

Disbursed Rabi credit to the tune of Rs. 159 crores in cyclone affected area.

5. Disbursed crop loan of Rs.422.00 crores during 1999-2000 recording a

growth of 28% over previous year.

6. Total credit disbursement by ST Coop. structure was Rs.3.21 crores in 90-91

which raised 13 fold to the level of Rs.422.00 crores in 1999-2000.

7. Provided credit in 99-2000 for purchase of 277 tractors, 83 power tillers &

309 pump sets of which 255 tractors, 81 power tillers and 138 pump sets are

financed in cyclone hit area.

8. All the Branches and Extension Counters of the Bank are fully computerized

to provide efficient customer service. ATM facility is installed in the Main

Branch to provide any time Banking.

9. Agricultural inputs like fertilizer and pesticides supplied to the farmers in the

rural areas PACS level.

10. Extending banking service in the rural areas through 800 Mini Banks

operating at PACS level and mobilized rural deposit of 232.00 crores.

11. 22 Mihila Branches of Dist. Central Co-operative Banks functioning

exclusively to render banking service to the women folk.

12. Rs.900.00 crores deposits mobilized by 17 Central Cooperative Banks.

13. The Bank is running on profit for over five decades since its inception in

1948.

14. Progressively more societies are becoming viable by increasing their

business turnover through larger clientele coverage.


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STRUCTURE OF OSCB

Objectives To improve agricultural sector of Orissa.

To finance the co-operative societies

To carry the banking business

Net worth exceeding 10 corers and deposits more then 1566 corers.

To improve the savings capacity in rural areas.

NABARD / RBI

OSCB

DISTRICT CENTRAL CO-OPERATIVE BANK

PRIMERY AGRICULTURAL CO-OPERATIVE SOCIETIES (PACS)

LARGE SIZE ADIBASIMULTIPURPOSE SERVICE

SOCIETY (LAMPS)

FARMERS SERVICESSOCIETIES (FSS)

MEMBERS


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4. Review of Literature

REVIEW OF LITERATURE

Sources of funds

Sources mean ways of collecting and increasing of funds. The ways are;

Funds from operation

The profit from operation of the business is the most important major

sources of funds. The main sources of inflow of funds into the business are

sale as they increase the current assets like cash debtor or bills receivables.

Issue of share capital

If there is any increase in share capital, whether preference or equity during

the year, it means that capital has been raised during the year. Issue of

share is a source of funds as it constitutes inflow of funds.

Issue of Debenture and raising of loans,etc.

A flow of funds results when there is an issue of debentures or raising of

loans (long-term) whether secured or unsecured. The inflow of funds is the

actual proceeds from the issue of such debentures or raising of such loans

i.e. including the amount of premium or excluding discount, if any.

Sources of funds

Uses of funds

Sources and uses offunds of OSCB


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Non-Trading Receipts

Any non- trading receipt like refund of tax, recent received, dividend

received, etc. also increases funds and is treated as a sources of funds

because such as income is not include in the funds from operations.

Uses of funds

Uses means application of funds.

Funds lost in operation

The result of trading, sometimes, in a certain year is a loss and some funds

are lost during the period in trading operation. Such loss of funds in trading

is treated as an application of funds as it amounts to an outflow of funds.

Redemption of preference share capital

If there is redemption of preference share during the year, it will result in

an application of funds as it amount to an outflow of funds. it is the net

amount paid when the shares are redeemed at discount or premium.

Repayment of loans or redemption of debentures, etc.

The redemption of debentures or repayment of loans also constitutes an

application of funds in the same way as redemption of preference share

capital.

Purchase of any non-current or fixed assets

If any non-current or fixed assets like land, building, plant & machinery,

furniture, long term investment, etc. are purchased, it amounts to an

outflow of funds.


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Payment of dividends and taxes

Payment of dividends and taxes are also applications of funds as it amounts

to an outflow of funds. It is not the mere declaration of dividend or creating

of a provision for taxation but the actual payment of dividend (may be

interim dividend) and tax which should be taken as an outflow of funds.

Sources and uses of funds of O.S.C.B

Sources

The main sources of bank are;

Paid up capital

reserves

Deposits

Borrowings

Funds from operation (profit)

Uses

The main purposes of using the funds are

Redemption of preference shares

Redemption of debentures

Payment of dividend and taxes

Distribution of loans and advances

Investments

Short term crop loans


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5. Sources and uses of funds of OSCB

Sources of funds of last 3 years

The Orissa State Co-operative Bank has made strides in many key areas and

achieved all targets setup in the Development Action Plan (DAP). The funds

comprising of paid of capital and resource, deposit and borrowing are the main

resource of the bank. A Major chunk of this resource is deployed under the loans

and advances to the affiliated central Cooperative Banks, Member society and

individuals for different purpose under farm and non-farm sectors.

The Statutory investment requirement under RBI Act and BR Act are met by

investment in Central/State Governance Securities and others approved trustee

securities, seasonal investible surpluses are deployed in call and short term

deposits with commercial banks, to maximize as yield on assets.

Sources of funds Paid up share capital Reserves Owned fund Deposits Borrowings Net profits

Uses of funds Distribution loans and

advances

Investment Dividend


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Besides remaining vigilant over judicious deployment of funds, the banks is

also making concerted efforts to bring down the level of non earning assets of the

banks and increase the financial margin.

DIAGRAM 1:-SOURCES OF FUNDS

Paid up capital

(Rs. In Lakhs)

particulars As on 31.03.09 As on 31.03.10 As on 31.03.11Amount(Rs) % Amount(Rs.) % Amount(Rs.) %

State Govt. 1,697.72 26.37 1,697.72 24.33 1,697.72 23.79Central coop. bank 4,611.72 71.63 5,125.53 73.46 5,276.58 73.93

Apex coop. societies 34.33 0.53 34.33 0.49 34.35 0.48Other coop. societies 57.17 0.90 82.27 1.18 91.59 1.28

Nominal members 37.02 0.57 36.99 0.54 37.31 0.52Total 6,437.98 100.00 6,976.86 100.00 7,137.58 100.00

TABLE 1:- PAID UP CAPITAL FOR 3 YEARS

The table shows that the paid up share capital of the bank stood at7137.58 Lakhs. The share amount of the state Government is remaining constant

at Rs.1697.72 during these 3 years. But the amount of paid up share capital of

central co-operative banks increasing frequently. Like State Government, The

share capital of Apex Co-operative Societies also remains constant at Rs. 34.33

Lakhs. The share of nominal members at first decreased during the year of 2009-


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10. But it again increased during the year 2010-11. Most of the amount of paid up

share capital is cones from Central Co-operative Banks and State Government.

DIAGRAM 2:- PAID UP CAPITAL FOR 3 YEARS

Reserves

(Rs. In Lakhs)

Types of reserves 2008-09 2009-10 2010-11Statutory reserve fund 2,180.82 2,673.56 2,902.58Agri. Credit stabilization fund 4,042.61 4,512.89 4,751.65Other reserves 12,269.04 12,987.42 13,875.93Total 18,492.04 20,173.87 21,530.16

TABLE 2:- RESERVES FOR 3 YEARS

Reserves means amount of money appropriated out of profit and not

meant to cover up liability, contingency, commitment or reduction in value of an

asset is a reserve. Amount of reserves increases every year. Bank increases its

reserves for increasing its liquidity. During the year 2008-09, reserve stood at Rs.

18492.04 Lakhs. Again it increases 9.09% and 6.72% during the year 2009-10 and

2010-11 respectively.

DIAGRAM 3:- RESERVES FOR 3 YEARS


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Owned fund(In Lakhs)

Year 2008-09 2009-10 2010-11Owned fund 24930.45 27150.73 28667.74

TABLE 3:- OWNED FUNDS FOR 3 YEARS

Owned funds means funds from the shareholders. Banks owned fund

is increasing each year rapidly. Owned fund stood at Rs.24930.45 during the

year 2008-09. Again it increased to Rs. 27150.73 in the year 2009-10.it again

increased to Rs. 28667.74 in the year 2010-11.

DIAGRAM 4:- OWNED FUND FOR 3 YEARS

Deposits

(Rs. In Lakhs)

Types of deposits 2008-09 2009-10 2010-11 Current deposits 2,736.81 4,373.13 6,594.41Savings Bank Deposits 4,776.92 6,944.62 6,811.59Term Deposits 1,13,802.25 1,18,268.48 1,43,220.80

Total 1,21,315.98 1,29,586.23 1,56,626.80TABLE 4:- DEPOSITS FOR 3 YEARS

During the year 2010-11, total deposits increased to Rs.156626.80 Lakhs i.e.

20.86 % increased. It is possible due to computerized operation system including

ATM and 24*7 anywhere/anytime banking. Total deposits consisting of 4.21%

current deposits, 4.34% savings bank deposits and remaining 91.45% term

deposits. It is possible due to location of branches at urban areas and commercial


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banks having ATM facilities through the country attracting the depositors to keep

their deposits with them.

DIAGRAM 5:- DEPOSITS FOR 3 YEARS

Borrowings(Rs. In Lakhs)

particulars 2008-09 2009-10 2010-11NABARD Borrowings 91,508.54 99,924.46 1,36,500.46Loan form State Govt. 425.63 229.79 92.79Loan from NCDC/SIDBI/Other inst. 3,500.00 24,982.12 30,000.00Grand Total 95,434.17 1,25,141.37 1,66,593.25

TABLE 5:- BORROWING FOR LAST 3 YEARS

Generally, bank takes borrowings from NABARD, State Government

including World Bank assistance, NCDC, SIDBI, AND other institutions. It takes 3

types of borrowings. They are; short term, medium term and long terms. It takes

most borrowings from NABARD i.e. 80-85%. Total borrowings stands at

Rs.91508.54 Lakhs. It increased at 9.197% and 36.60% during the year 2009-10and 2010-11 respectively.


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DIAGRAM 6:- BORROWINGS FOR 3 YEARS

Borrowings from NABARD for weavers(Rs. In Lakhs)

Year 2008-09 2009-10 2010-11Amount 1370.13 910.21 582.62

TABLE 6:- BORROWINGS FOR WEAVERS

OSCB also collects funds from NABARD for financing loans to weavers

co-operative societies for production and marketing of handloom fabrics.

During the year 2010-11 NABARD sanctioned Rs.582.62 on behalf three

CCBs. Weavers are diversifying their profession due to less demand in their

products. so the sanctioning amount also decreasing year by year.


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DIAGRAM 7:- BORROWINGS FOR 3 YEARS

Net profit

(In Lakhs)

YEAR 2008-09 2009-10 2010-11NET PROFIT 1,969.39 916.03 972.32

TABLE 7:- NET PROFIT FOR 3 YEARS

The above table shows that the profit of the bank is Rs.1969.39 Lakhs

during the year 2008-09. But the profit decreased to Rs. 916.03 Lakhs i.e . 53.487

%. This loss incurred due to non-payment of loans provided to the farmers and

decreased rate of interests. Despite of tremendous pressure on profitability of the

bank due to Government policy to advance crop loans at 7 % and non-receipt ofrequired interest subvention in time, the profit of the firm increase to 972 Lakhs

during the year 2010-11.


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DIAGRAM 8:- NET PROFIT FOR 3 YEARS

USES OF FUNDSDistribution of loans and advances

(In Lakhs)

YEAR 2008-09 2009-10 2010-11LOANS AND ADVANCES 16,822.52 2,554.07 6,876.53

Table 8:- DISTRIBUTION OF LOANS AND ADVANCES

Loans and advances constitute 54% of the total assets of the bank.

Aggregate loans and advances under different sectors as on 31.03.11 stood at

200637.75 Lakhs and it stood at 28244.08 Lakhs and 49478.62 Lakhs during theyear 2009-10 and 2010-11 respectively. It provides short term medium term and

long term loans and advances. During the year 2008-09, it increased at 32 %. But it

decreased at 1.5 % during the year 2009-10 due to decrease in profitability of the

firm. It again shows a positive attitude i.e. 3.55% growth during the year 2010-11.


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DIAGRAM 9:- LOANS AND ADVANCES

Investments

(In Lakhs)

Types of investment 2008-09 2009-10 2010-11

Investment in State/CentralGovernment

57,562.24 54,554.24 53,690.13

Other Trustee Securities 1,834.00 2,034.00 2,684.00Share in Coop institutions 13.20 13.20 13.20Other investment 11,735.84 21,997.44 86,846.68

Total 71,145.28 78,598.88 1,43,234.01Table 9:- INVESTMENT FOR 3 YEARS

Bank mainly invests in central and state Government Securities. Investment

is increasing each year. Total investment is Rs. 71148.28 Lakhs during the year

2008-09. It again increased at 10.48% and 82.23% during the year 2009-10 and

2010-11 respectively. For maximizing the profitability of the bank it has invested

more money during the year 2010-11.


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DIAGRAM 10:- INVESTMENT FOR 3 YEARS

Dividends(In Percentage)

Year 2008-09 2009-10 2010-11dividend 7.00 2.75 4.50

Table 10:- DIVIDEND FOR 3 YEARS

During the year 2008-09, bank has given 7.00% dividend. But it decreased

to 2.75% during the year 2009-10. It again increased to 4.50% in the year 2010-11.

Due to decrease in net profit, bank unable to maintain its dividend rate during the

year 2009-10. As the profitability of the bank increased so bank again provides a

good rate of dividend i.e. 4.50% during the year 2010-11.

DIAGRAM 11:- DIVIDEND FOR 3 YEARS


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Seasonal crop loan (In Lakhs)

yearDistributed during the year

Khariff Rabi Total2008-09 76435.27 63017.60 139452.872009-10 83746.70 72169.68 155916.382010-11 89923.90 60249.94 150173.84

Table 11:- SEASONAL CROP LOANS

Generally bank deals with two types of seasonal loans. They are Khariff andRabi. During the year 2010-11 total loan decreased to 150173.84 Lakhs. It is

occurred due to Cheques presented by KCC holders for withdrawn of loans is

honored by CBB, whether loan is achieved or not otherwise a wrong message

would go to the customer about the financial condition of the bank.

Table 12:- SEASONAL CROP LOANS


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6. Conclusions and suggestions

CONCLUSIONS

In paid up share capital, percentage of state Govt. share is decreasing every

year on the other hand, the share capital of central co-operative banks

increasing. During the year 2010-11, the share of nominal members also

increased.

Bank able to maintain reserves as per the provisions of the Orissa State Co-

operative Societies Act during the year 2010-11.

In deposit section, term deposit covers 91.45%. During the year 2010-11, termdeposit and current deposit increased. But savings deposit lost its position.

As it is an agricultural bank, so it mainly depends on NABARD for lending loans.

For meeting grass root level demand, bank borrows money from NABARD,

State Govt., SIDBI, NCDC and other institutions.

During the year 2010-11, the net profit increased to Rs. 972.32 Lakhs in the

tremendous financial crises.

As per NABARD instructions, the quantum of dividend limits to 2.5%, during

the year 2010-11. But by the approval of registrar, cooperative societies in

terms of said NABARD circulate to release such norms, have proposed

payment of dividend of 4.5% during the year 2010-11.

Conclusions Suggestions


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Due to industrialization and mismanagement, the demand for handloom

products decreased. As a result, the amount sanctioned towards the weavers is

decreased every year.

For maximizing yields, bank takes investment plans. At first, bank invests

money in purchasing Govt. securities for safety and profitability. In the year

2010-11, it it makes more other investments like gold, commercial papers and

other instruments in the nature of shares, debentures and bonds for getting

more profits.

Bank mostly provides Khariff Season Crop Loan rather then Rabi Season CropLoan, because most areas of Orissa are having no irrigation facility. As a result,

agricultural work is not possible in this season.


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SUGGESTIONS

For increasing deposits, bank should concentrate on rural banking because

rural Orissa is not covered by banking system. Bank should open more

computerized core banking branches at different areas of Orissa and should

open ATMs for competing with other banks.

As bank loans 80% covers crop loan and there is no certainty in rein due to

global worming, so bank should provide medium term and long term water

storage projects. As a result, people of areas having no irrigation facilities can

take advantages of this loan facility.

As financial crises are going on, so bank should invest money in purchasing

Govt. securities rather then investing in share market.

Now-a-days farmers are diversifying their business from agriculture to other

sectors and opens small business units for getting some profit. So bank should

also provide loan facilities to small traders. Then income from interest can be

increased.

The number of self help group a lso increasing these days. They are also having

good business. So bank should also give special attention towards these groups.

The financial position of the primary weavers co -operative societies is going tobe ruined. As a result, the entire outstanding will be added to the non-

performing assets. So bank should provide some financial help to implement

recapitalization plan.


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7.A. APPENDIX A

Orissa State Coop. Bank LimitedProfit & Loss Account for the period ending 31.03.2009

Amount ( Rs. ) Particulars Amount ( Rs. ) Amount ( Rs. )

Previous Year EXPENDITURE

1. Interest paid on Deposits & Borrowings

469,081,274.50 a. Interest paid on borrowings 567,302,301.80

751,151,488.42 b. Interest paid on deposits 828,634,953.781,220,232,762.92 1,395,937,255.58

85,390,761.49 2. Salary & Allowances 94,960,048.95 94,960,048.95

3. Director & Local Committee members

fees and allowances

279,430.00 Directors & Local Committee member fees & all. 215,659.00 215,659.00

22,933,643.90 4. Rent, Taxes, Insurance & Lighting etc. 14,894,381.83 14,894,381.83

1,182,851.80 5. Law Charges, Legal Expenses 1,241,822.90 1,241,822.90

6. Postage, Telegram & Telephone Charges

205,112.84 a. Postage & Telegram 199,008.00

1,918,007.39 b. Telephone rent & charges 1,391,329.13

2,123,120.23 1,590,337.13

Profit and Loss Account ofO.S.C.B : 2007-08

Balance Sheet of O.S.C.B :2007-08

Profit and Loss Account ofO.S.C.B : 2008-09

Balance Sheet of O.S.C.B :

2008-09


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139,142.00 7. Audit Fees 159,142.00 159,142.00

8. Depreciation & Repair to Property

6,411,990.15 a. Repair & Maintenance 4,562,913.32

9,094,744.65 b. Depreciation 13,402,019.94

15,506,734.80 17,964,933.26

9. Loss for sale of or dealing with

non-banking assets




4,396,905.75 10.Stationary,Printing & Advertisement 3,447,826.96 3,447,826.96

64,732,513.46 11.Other Expenditures 119,142,242.98 119,142,242.98

196,939,397.82 12. Balance of Profit 91,603,261.57 91,603,261.57

1,613,857,264.17 1,741,156,912.16

INCOME


Previous Year

1,531,505,271.67 1. Interest & Discount 1,691,129,945.33 1,691,129,945.33

4,376,364.23 2. Commission, Exchange & Brokerage 8,295,349.24 8,295,349.24

3. Subscription & Donation

4. Income from Non-Banking Assets and

profit from sale of or dealing with such assets

77,975,628.27 5. Other Receipts 41,731,617.59 41,731,617.59

1,613,857,264.17 1,741,156,912.16


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Orissa State Coop. Bank Limited

Balance Sheet as on 31.03.2010

Capital & Liabilities


Previous Year

1. Share Capital

i. Authorized Capital

( Rs.100 Crores ) 9,00,000 shares ofRs.1000/-each and 10,00,000 Nominal

Shares @ Rs.100/- each.

ii. Amount Called and Paid Up

470,322,075.00 a. Co-op. Institution 524,213,375.00

169,772,000.00 b. State Govt. 169,772,000.00

2,300.00 c. Other Institutions 2,300.00

1,549,550.00 d. Individuals 1,549,550.00

2,152,300.00 e. Nominal Share 2,148,700.00

643,798,225.00 697,685,925.00

2. Reserve Fund & Other Reserves

218,081,861.90 I. Statutory reserve fund 267,356,451.72

404,261,007.99ii. Agrl.Credit Stabilisation fund including

State Govt Loan 451,288,813.99

73,518,789.08 iii. Building Fund 93,518,789.08739,249.75 iv. Dividend Equalisation Fund 939,249.75

840,089,000.00v. Bad Debt reserve fund(including NPA

provision of Rs.736161000.00) 840,089,000.00

282,883,785.00vi. Investment depreciation reserve(prov.Rs.53069000.00 as decline value) 329,883,785.00

5,407.72vii. Special Bad Debt Reserve Fundincluding Risk Fund 5,407.72

viii. Other Funds

280,500.00 a. Charitable Fund/ Common Good Fund 280,500.00

13,879,961.62 b. Development Fund (Staff) 14,179,961.62

8,519,966.86c. Cooperative Development Fund &

Technology Upgradation Fund 11,819,966.86

6,977,721.00 d. Coop. Education Fund 7,877,576.00

9,463.00 e. Staff Welfare Fund 147,825.00

1,849,246,713.92 2,017,387,326.74

0.003. Principal Subsidiary and StatePartnership Fund 0.00

4. Deposits & Other a/cI. Fixed Deposits


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3,358,897,979.53 a. Individual & others 3,342,849,956.41

6,721,270,723.00 b. Central Co-op. Banks 6,782,390,996.00

1,082,932,092.57 c. Primary Coop. Banks 1,279,000,206.31

217,124,527.19 d. Other Co-op. Institutions 422,606,748.69

11,380,225,322.29 11,826,847,907.41II. Saving Bank Deposit

452,558,395.59 a. Individuals 671,593,517.66

85,850.21 b. Central Co-op. Banks 89,932.21

7,242,213.48 c. Primary Coop. Banks 5,481,758.48


477,692,338.20 694,462,338.36

III. Current Deposits

25,244,544.02 a. Individuals 39,382,410.54

177,225,318.53 b. Central Co-op. Banks 339,675,491.4331,516,231.53 c. Primary Coop. Banks 28,828,016.76


673,156.36 e. Matured Fixed Deposits 673,156.36

273,680,828.75 437,312,561.68

12,131,598,489.24 Total of Deposits and other Accounts 12,958,622,807.45

5. Borrowings

I. Form RBI/NABARD

4,924,479,000.00 a. Short term loans ( Sch-V ) 5,658,399,000.00

3,045,867,400.00 b. Medium Term Loans ( Sch-VI ) 2,935,393,200.00

1,180,507,200.00 c. Long Term Loans ( Sch.VII) 1,399,153,800.00

9,150,853,600.00 Total of RBI / NABARD 9,992,946,000.00

II. From State Govt.

37,855,340.00 a. Borrowing from State Government 18,271,450.00

4,707,964.00 b.World Bank Asst. Fishery Project 4,707,964.00

42,563,304.00 22,979,414.00

III. From Other Institutions

350,000,000.00 a. Loan from Other Institutions 2,498,211,388.89 2,498,211,388.89

9,543,416,904.00 Total of Borrowings 12,514,136,802.89

6. Bills for Collection being the billsreceivable as per contra

11,553,760.84Bills for Collection being the bills

receivable as per contra 3,813,252.31 3,813,252.31

7. Adjusting Head

a. Branch Adjustment 0.00


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508,511,000.00 8. Over Due Interest Reserve 554,822,000.00 554,822,000.00

9. Interest Payable

30,457,930.00 a. Interest payable on Borrowing 55,567,006.00

719,460,745.00 b. Interest payable on Deposit 449,447,450.00749,918,675.00 505,014,456.00

10.Other Liabilities

46,462.50a. Unclaimed dividend & Dividend

payable 76,464.50

13,188,772.71 b. Pay order 18,269,900.22

220,764.00 c. Share Application 4,320,857.00

19,615,699.78 d. Provision 5,758,405.78

40,616,109.69 e. Suspense Payable 39,408,030.73

56,286,664.69 f. Sundry Creditor 56,270,703.69

19,605.00 g. Form Account 7,645.20

0.00 h. Clearing Adjustment

2,282,336.00 I. Outstanding Charges Payable 13,270,206.00

5,699,883.31 j. D.D.Payable 14,252,307.71

116,000.00 k. Audit fee payable to Govt. 136,000.00

138,092,297.68 151,770,520.83

11.Profit & Loss

0.00 a. Profit as per last Balance Sheet

196,939,397.82 b. Add profit for the period 91,603,261.57 91,603,261.57

196,939,397.82

25,773,075,463.50 TOTAL 29,494,856,352.79

OFF BALANCE SHEET ITEM

16,077,160.00Acceptance, Endorsement & Other

Obligation 16,073,860.00 16,073,860.00

29,510,930,212.79

25,789,152,623.50 0.00


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Orissa State Coop. Bank Ltd.


Properties & Assets


1. Cash

747,205,922.97in hand and with RBI/SBI/Other Banks

(notified) 1,095,019,529.56 1,095,019,529.56

2. Balance with Other Banks

9,458,795.39a. Current Account with Other Banks (

other than Notified ) 5,219,215.66

10,000,000.00 b. Fixed Deposit with Other Banks 0.0019,458,795.39 5,219,215.66

3. Money at Call & Short Notice

368,000,000.00 a. ST Deposits with Approved Banks 885,000,000.00

788,748,608.42 b. Other Institutions 1,307,908,958.42

1,156,748,608.42 2,192,908,958.42

4. Investments

2,618,803,000.00 a. Investment in Govt. Securities forTrading 2,151,138,000.00

3,137,420,600.00b. Investment in Central / State Govt.

Securities 3,304,285,979.00

183,400,000.00 c. Investment in Other Trustee Securities 203,400,000.00

1,320,000.00 d. Share with Coop. Institutions 1,320,000.00

6,835,110.00 e. Share with Other Institutions 6,835,110.00

0.00 f. Constituent SGL A/C 0.00

5,947,778,710.00 5,666,979,089.00

5. AdvancesA. Short term loan, cash credit and

overdraftI). of which secured against Govt.

securities and other approved securities

9,953,454,725.20ii). Other Tangible securities of the

advances due from individuals 11,718,654,490.94

373,102,326.49iii). Other Tangible securities of the

advances due from individuals 449,182,938.06

10,326,557,051.69 12,167,837,429.00

B. M.T.Loans of which secured againstI). of which secured against Govt.

securities and other approved securities.


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4,165,913,294.00ii). Other Tangible securities of the


306,953,934.73 iii). Other Tangible securities of the


4,472,867,228.73 4,485,775,141.33

C. L.T.Loans of which secured againstI). of which secured against Govt.

securities and other approved securities

.

566,115,164.92ii). Other Tangible securities of the


1,452,101,836.17iii). Other Tangible securities of the


2,018,217,001.09 2,718,261,125.03

4,410,867.74 D. Gold Loan 4,251,114.58 4,251,114.58

16,822,052,149.25 Total of Loans & Advances 19,376,124,809.94

6. Interest Receivable

728,766,109.73A. Interest receivable on Loans &

Advances 838,052,784.85

148,938,295.00 B. Interest Receivable on Investment 140,050,576.00

877,704,404.73 978,103,360.85

11,553,760.847. Bills receivable being the bills lodged asper contra 3,813,252.31 3,813,252.31

8. Adjusting Head

13,785,553.74 a. Branch Adjustment 1,498,320.86 1,498,320.86

30,432,571.89 9. Premises 33,528,111.85 33,528,111.85

10.Furniture & Fixture less depreciation

40,988,885.42 Furniture & Fittings 37,170,507.19 37,170,507.19

11.Other assets

109,136.43 a. Library 128,198.26

759,852.43 b. Stationery in Stock 1,050,158.76

501,044.92 c. Vehicle Account 1,059,112.27

17,110,471.24 d. Suspense Recoverable 20,898,765.03

660,364.00 e. House rent Receivable 660,364.00

14,945,576.00 f. Clearing Adjustment 15,890,387.00

15,669,865.54 g. Cheque/ Bills Purchase account 9,097,762.54

16,743,011.00 h. Income Tax refund receivable 16,743,011.001,259.00 I. Unspent Postage 1,271.00


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2,162,365.61 j. Audit & Other Recoveries 2,162,365.61

k. Form Account 0.00

1,387,813.00 l. D.D. Ex-advice 1,387,813.00

m. D.D.Issuing Bank 0.00

35,315,341.68 n. Sundry Debtors 35,411,988.68

0.00 o. DD Inter Branch

105,366,100.85 104,491,197.15

12. Non-Banking Assets Acquired insatisfaction of claims

Non-Banking Assets Acquired insatisfaction of claims

13. Profit & Loss

25,773,075,463.50 TOTAL 29,494,856,352.79

OFF BALANCESHEET ITEM

16,077,160.00Constituent's Liabilities, Acceptance,Endorsement & Other Oblig. 16,073,860.00 16,073,860.00

25,789,152,623.50 29,510,930,212.79


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1. Interest paid on Deposits &Borrowings

567,302,301.80 a. Interest paid on borrowings 625,692,394.99

828,634,953.78 b. Interest paid on deposits 1,116,429,224.03

1,395,937,255.58 1,742,121,619.02

94,960,048.95 2. Salary & Allowances 144,470,099.70 144,470,099.70

3. Director & Local Committeemembers fees and allowances

215,659.00Directors & Local Committeemember fees & all. 577,892.96 577,892.96

14,894,381.834. Rent, Taxes, Insurance & Lightingetc. 18,936,824.89 18,936,824.89

1,241,822.90 5. Law Charges, Legal Expenses 1,206,672.00 1,206,672.00

6. Postage,Telegram & TelephoneCharges

199,008.00 a. Postage & Telegram 275,736.00

1,391,329.13 b. Telephone rent & charges 1,735,243.47

1,590,337.13 2,010,979.47

159,142.00 7. Audit Fees 331,484.00 331,484.00

8. Depreciation & Repair toProperty

4,562,913.32 a. Repair & Maintenance 5,014,537.75

13,402,019.94 b. Depreciation 12,187,339.93

17,964,933.26 17,201,877.68

9. Loss for sale of or dealing with

non-banking assets


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Amount ( Rs. ) Particulars Amount ( Rs. ) Amount ( Rs. )Previous Year EXPENDITURE

3,447,826.9610.Stationary,Printing &Advertisement 3,529,339.49 3,529,339.49

119,142,242.98 11.Other Expenditures 79,578,931.58 79,578,931.58

91,603,261.57 12. Balance of Profit 97,231,865.85 97,231,865.85

1,741,156,912.16 2,107,197,586.64

INCOME


Previous Year

1,691,129,945.33 1. Interest & Discount 2,085,494,315.36 2,085,494,315.36

8,295,349.242. Commission, Exchange &Brokerage 10,936,979.41 10,936,979.41

3. Subscription & Donation

4. Income from Non-Banking Assetsand profit from sale of or dealingwith such assets

41,731,617.59 5. Other Receipts 10,766,291.87 10,766,291.87

1,741,156,912.16 2,107,197,586.64


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Orissa State Coop. Bank Limited


Capital & Liabilities

Amount ( Rs. ) Particulars Amount ( Rs. ) Amount ( Rs. )Previous Year

1. Share Capitali. Authorized Capital

( Rs.100 Crores ) 9,00,000shares of

Rs.1000/-each and 10,00,000Nominal Shares @ Rs.100/- each.

ii. Amount Called and Paid Up524,213,375.00 a. Co-op. Institution 540,252,250.00169,772,000.00 b. State Govt. 169,772,000.00

2,300.00 c. Other Institutions 2,800.001,549,550.00 d. Individuals 1,549,550.002,148,700.00 e. Nominal Share 2,181,700.00

697,685,925.00 713,758,300.00

2. Reserve Fund & OtherReserves

267,356,451.72 I. Statutory reserve fund 290,257,971.29

451,288,813.99ii. Agrl.Credit Stabilisation fund

including State Govt Loan 475,164,858.26

93,518,789.08 iii. Building Fund 93,518,789.08939,249.75 iv. Dividend Equalisation Fund 939,249.75

840,089,000.00

v. Bad Debt reservefund(including NPA provision ofRs.736161000.00) 754,929,000.00

329,883,785.00

vi. Investment depreciationreserve(prov. Rs.53069000.00 asdecline value) 519,412,785.00

5,407.72vii. Special Bad Debt Reserve

Fund including Risk Fund 5,407.72viii. Other Funds

280,500.00a. Charitable Fund/ Common

Good Fund 280,500.0014,179,961.62 b. Development Fund (Staff) 14,179,961.62

11,819,966.86

c. Cooperative DevelopmentFund & Technology UpgradationFund 318,966.86

7,877,576.00 d. Coop. Education Fund 3,664,130.00147,825.00 e. Staff Welfare Fund 344,291.60

2,017,387,326.74 2,153,015,911.18

0.003. Principal Subsidiary and StatePartnership Fund 0.00


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4. Deposits & Other a/cI. Fixed Deposits

3,342,849,956.41 a. Individual & others 4,544,354,333.41

6,782,390,996.00b. Central Co-op. Banks

7,710,430,635.00

1,279,000,206.31 c. Primary Coop. Banks 1,623,822,601.93

422,606,748.69d. Other Co-op. Institutions

443,472,525.1411,826,847,907.41 14,322,080,095.48

II. Saving Bank Deposit671,593,517.66 a. Individuals 626,521,372.51

89,932.21 b. Central Co-op. Banks 21,953.215,481,758.48 c. Primary Coop. Banks 6,617,528.48

17,297,130.01 d. Other Co-op. Institutions 47,997,960.82694,462,338.36 681,158,815.02

III. Current Deposits39,382,410.54 a. Individuals 52,849,483.99

339,675,491.43 b. Central Co-op. Banks 526,488,352.5128,828,016.76 c. Primary Coop. Banks 61,463,470.3228,753,486.59 d. Other Co-op. Institutions 17,966,877.86

673,156.36 e. Matured Fixed Deposits 673,156.36437,312,561.68 659,441,341.04

12,958,622,807.45Total of Deposits and otherAccounts 15,662,680,251.54

5. BorrowingsI. Form RBI/NABARD

5,658,399,000.00 a. Short term loans 8,878,069,000.002,935,393,200.00 b. Medium Term Loans 2,722,643,500.001,399,153,800.00 c. Long Term Loans ( Sch.VII) 2,049,333,100.009,992,946,000.00 Total of RBI / NABARD 13,650,045,600.00

II. From State Govt.

18,271,450.00a. Borrowing from State

Government 4,571,284.00

4,707,964.00b.World Bank Asst. Fishery

Project 4,707,964.0022,979,414.00 9,279,248.00


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III. From Other Institutions

2,498,211,388.89a. Loan from Other

Institutions 3,000,000,000.00 3,000,000,000.0012,514,136,802.89 Total of Borrowings 16,659,324,848.00

6. Bills for Collection being thebills receivable as per contra

3,813,252.31Bills for Collection being the

bills receivable as per contra 4,173,480.78 4,173,480.78

7. Adjusting Heada. Branch Adjustment 0.00

554,822,000.00 8. Over Due Interest Reserve 483,003,000.00 483,003,000.00

9. Interest Payable

55,567,006.00a. Interest payable on

Borrowing 63,479,963.00

449,447,450.00b. Interest payable on

Deposit 852,878,184.00505,014,456.00 916,358,147.00

10.Other Liabilities

76,464.50a. Unclaimed dividend &

Dividend payable 88,255.5018,269,900.22 b. Pay order 23,145,870.61

4,320,857.00 c. Share Application 9,336,087.005,758,405.78 d. Provision 5,758,405.78

39,408,030.73 e. Suspense Payable 48,692,854.8756,270,703.69 f. Sundry Creditor 56,153,221.20

7,645.20 g. Form Accounth. Clearing Adjustment 919,829.23

13,270,206.00I. Outstanding Charges

Payable 2,827,000.0014,252,307.71 j. D.D.Payable 8,954,518.18

136,000.00 k. Audit fee payable to Govt. 270,000.00151,770,520.83 156,146,042.37

11.Profit & Loss

0.00 a. Profit as per last BalanceSheet91,603,261.57 b. Add profit for the period 97,231,865.85 97,231,865.8591,603,261.57

29,494,856,352.79 TOTAL 36,845,691,846.72OFF BALANCE SHEET ITEM

16,073,860.00Acceptance, Endorsement

& Other Obligation 15,216,233.00 15,216,233.0036,860,908,079.72

29,510,930,212.79 0.00


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Orissa State Coop. Bank Ltd.


Properties & Assets


1. Cash

1,095,019,529.56in hand and with RBI/SBI/Other

Banks (notified) 1,389,999,078.42 1,389,999,078.42

2. Balance with Other Banks

5,219,215.66a. Current Account with Other

Banks ( other than Notified ) 9,127,364.90

0.00b. Fixed Deposit with Other Banks

0.005,219,215.66 9,127,364.90

3. Money at Call & Short Notice

885,000,000.00a. ST Deposits with Approved

Banks 7,629,000,995.001,307,908,958.42 b. Other Institutions 1,048,831,825.002,192,908,958.42 8,677,832,820.00

4. Investments

2,151,138,000.00a. Investment in Govt. Securities

for Trading 2,091,138,000.00

3,304,285,979.00b. Investment in Central / State

Govt. Securities 3,277,874,828.00

203,400,000.00c. Investment in Other Trustee

Securities 268,400,000.001,320,000.00 d. Share with Coop. Institutions 1,320,000.006,835,110.00 e. Share with Other Institutions 6,835,110.00

0.00 f. Constituent SGL A/C 0.005,666,979,089.00 5,645,567,938.00

5. AdvancesA. Short term loan, cash credit

and overdraftI). of which secured against

Govt. securitiesand other approved

securities.

11,718,654,490.94ii). Other Tangible securities of

the advances due from individuals 13,492,257,683.66

449,182,938.06iii). Other Tangible securities of

the advances due from individuals 478,794,162.8412,167,837,429.00 13,971,051,846.50

B. M.T.Loans of which securedagainst

I). of which secured againstGovt. securities


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and other approved

securities.

3,984,003,748.00ii). Other Tangible securities of

the advances due from individuals 2,270,673,167.00

501,771,393.33iii). Other Tangible securities of

the advances due from individuals 547,858,359.76

4,485,775,141.33 2,818,531,526.76C. L.T.Loans of which secured

againstI). of which secured against

Govt. securities and other approvedsecurities.

ii). Other Tangible securities ofthe advances due from individuals

538,399,968.52 518,658,784.65

2,179,861,156.51

iii). Other Tangible securities of

the advances due from individuals 2,748,183,557.442,718,261,125.03 3,266,842,342.094,251,114.58 D. Gold Loan 7,349,503.58 7,349,503.58

19,376,124,809.94 Total of Loans & Advances 20,063,775,218.93

6. Interest Receivable

838,052,784.85A. Interest receivable on Loans &

Advances 696,788,069.52

140,050,576.00B. Interest Receivable on

Investment 174,843,395.00978,103,360.85 871,631,464.52

7. Bills receivable being the billslodged as per contra

3,813,252.31 4,173,480.78 4,173,480.78

8. Adjusting Head1,498,320.86 a. Branch Adjustment 28,665,848.26 28,665,848.26

33,528,111.85 9. Premises 32,629,127.31 32,629,127.31

10.Furniture & Fixture lessdepreciation

37,170,507.19 Furniture & Fittings 34,150,138.26 34,150,138.26

11.Other assets128,198.26 a. Library 131,778.42

1,050,158.76 b. Stationery in Stock 1,096,042.531,059,112.27 c. Vehicle Account 856,526.96

20,898,765.03 d. Suspense Recoverable 21,029,433.80660,364.00 e. Houserent Receivable 807,664.00

15,890,387.00 f. Clearing Adjustment

9,097,762.54g. Cheque/ Bills Purchase account

9,102,314.54

16,743,011.00 h. Income Tax refund receivable 15,776,950.001,271.00 I. Unspent Postage

2,162,365.61 j. Audit & Other Recoveries 2,162,365.61


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0.00 k. Form Account 364,894.801,387,813.00 l. D.D. Ex-advice 1,387,813.00

0.00 m. D.D.Issuing Bank 0.0035,411,988.68 n. Sundry Debtors 35,423,563.68

o. DD Inter Branch104,491,197.15 88,139,347.34

12. Non-Banking Assets Acquired insatisfaction of claims

Non-Banking Assets Acquired insatisfaction of claims

13. Profit & Loss29,494,856,352.79 TOTAL 36,845,691,826.72

OFF BALANCESHEET ITEM

16,073,860.00

Constituent's Liabilities, Acceptance,Endorsement & Other Oblig.15,216,253.00 15,216,253.00

29,510,930,212.79 36,860,908,079.72


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7.B.Appendix B

Appendix B

Abbreviations OSCB- Orissa State Co-operative Bank

CCB- Central Co-operative Bank

CB- Core-Banking

PACS- Primary Agricultural Co-operative Societies

RBI- Reserve Bank of India

NABARD- National Agricultural Bank for Rural Development

DCCB- District Central CO-operative Bank

ACS Apex Co-operative Societies

LAMPS- Large Size Adibasi Multi Purpose Service Societies

FSS- Farmers Service Societies

SIDBI- Small Industries Development Bank of India

KCC- Kishan Credit Card

CBB- Core Banking Branches

SAO- Seasonal Agricultural Operation

HL- Hand Loom

ST- Short Term

LT- Long Term

MT- Medium Term

i.e. - That is

etc. et cetera

e.g. - for example

Abbreviations

Bibliography


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Bibliography

Books referred

1. Financial Management { Prasanna Chandra, Tata McGraw Hill Publishing

Company, New Delhi}

2. Management Accounting { Sharma R.K. and Sashik Gupta, Kalyani Publisher, New

Delhi}

3. Corporate Accounting { S.P. Jain and K.L. Narang, Kalyani Publisher, New Delhi}

4. Financial Management { I M Pandey, Vikas Publishing House, New Delhi}

5. Financial Accounting { Lal Jawahar and Seema Srivastava, S. Chand and Ltd., New

Delhi}

6. Management of Indian Financial Institution { R M Srivastava and Divya Nigam,

Himalaya Publishing House, New Delhi}

7. Banking Theory(Law and Practice){ Gordon Natarajan, Himalaya Publishing House,

New Delhi}

Web Sites searched

http://www.google.com/

www.oscb.coop

www.yahoo.com

www.wikipidia.com

www.rbi.com

b d
http://www.google.com/http://www.google.com/http://www.oscb.coop/http://www.oscb.coop/http://www.yahoo.com/http://www.yahoo.com/http://www.wikipidia.com/http://www.wikipidia.com/http://www.rbi.com/http://www.rbi.com/http://www.nabard.org/http://www.nabard.org/http://www.nabard.org/http://www.rbi.com/http://www.wikipidia.com/http://www.yahoo.com/http://www.oscb.coop/http://www.google.com/

Documents

5. OSCB-FIN-Puri-12.docx