pananchery service cooperative bank

PANANCHERY SERVICE

COOPERATIVE BANK

SUBMITTED BY,

PRATHYUSH RAJ.K(2010-45-104) SRUTHY K BABU(2010-45-110) SRUTHY RAJ(2010-45-118) STARA M.S(2010-45-120) ASWATHY ASHOK(2010-45-125)

GENESIS

Established in the year 1946

Registered on 13-06-1946

Commenced its business on 25-06-1946

Head Office at Pananchery

Two branches at Vilaganur and Vaniyampara.

OBJECTIVES AND FUNCTIONS

Encourage the habit of thrift, self help and co-operation.

Distribute short term and medium term loans to members

of the society.

Gather seeds, fertilizers, insecticides, agricultural

implements and other resources required for agricultural and

domestic industries.

Sell agricultural and industrial products in a

beneficial way through some marketing groups for

the members.

Prepare plans and put them into force for the

production of agricultural products for the

members.

own or take for rent warehouses to procure and

preserve the produces of the members.

render assistance to members for producing new

kinds of seeds.

provide help for the members who individually or

collectively prepare bio fertilizers or mixed

fertilizers within the area of operation of the bank.

buy modern implements for the purpose of renting

it out to the members.

acquire movable and immovable assets required for

the functioning of the bank.

sell seeds, chemicals, agricultural tools etc as an

agent

undertake agricultural activities like irrigation and

land protection for the members under certain

circumstances, with the permission of Registrar.

undertakes the sale of agricultural

inputs like fertilizers and pesticides,

sale of consumer goods through Neethi

stores, marketing activities etc.

criteria

Has to attain 18 years of age Should be a resident or Should have landed property within the

region of the bank

types

a class membership

for individual members having voting rights

B class membership for government & DISTRICT COOPERATIVE BANKS

Membership status from

2000-01 to 2009-10year A class b class membership Growth

index2000-01 5195 5075 10270 100

2001-02 5475 5221 10696 104.15

2002-03 5985 5220 11235 109.4

2003-04 6200 5940 12140 118.2

2004-05 6580 6124 12704 123.7

2005-06 6875 6046 12921 125.8

2006-07 6900 6218 13118 127.7

2007-08 6752 6580 13332 129.82

2008-09 6500 6961 13461 131.07

2009-10 6340 7412 13752 133.9

membership

Sources of funds

Share capital Reserves Deposits borrowings

Share capital

The society has tWO types of shares ‘A’ class and “B” class.

For getting ‘A’ class membership each individuals members should take minimum of one shares worth Rs.10.

‘B’ class members are mainly the government and government agencies. The membership fee is Rs.100/share.

Status of Share Capital from 2000-01 to 2009-10

Year A Class B C lass Total Growth (in lakhs) (in lakhs) (in lakhs) Index 2000-01 16.75 12.17 28.92 100 2001-02 17.00 15.12 32.12 111.07 2002-03 17.36 15.19 32.55 112.55 2003-04 17.55 15.04 32.59 112.69 2004-05 18.24 15.27 33.21 114.83 2005-06 18.69 15.31 34.00 117.57 2006-07 17.76 16.96 34.72 120.05 2007-08 17.01 18.54 35.55 122.92 2008-09 13.64 19.00 32.64 112.86 2009-10 17.79 19.34 37.13 128.39

Share capital

0

5

10

15

20

25

30

35

40

A Class

B C lass

Total(in lakhs)

reserves

Are kept by the bank to meet unforeseen contingencies that might occur in futures.

are kept according to the norms laid down in the co operative societies Act.

The bank keep mainly two types of reserves:- -Statutory reserves -Non statutory reserves.

Statutory reserves includes reserves fund, agricultural credit stabilization fund, reserves for bad and doubtful debts.

Non statutory reserves include reserves for damaged stock, common good fund, building funds and depreciation fund etc

Status of reserves from 2000-01 to 2009-10

Year Amount(in lakhs) Growth Index 2000-01 92.93 100 2001-02 79.43 85.47 2002-03 84.98 91.44 2003-04 94.43 101.61 2004-05 135.87 146.2 2005-06 62.01 66.72 2006-07 65.01 69.95 2007-08 62.19 66.92 2008-09 62.25 66.99 2009-10 62.33 67.07

reserves

DEPOSITDEPOSIT

Deposit is regarded as the lifeblood of banking business. Deposit mobilization has a vital role in managing the day to

day financial transactions. The deposits are accepted from the members as well as

non members.

TYPES OF DEPOSITSTYPES OF DEPOSITS FIXED DEPOSITS SAVINGS BANK DEPOSITS CURRENT DEPOSITS RECURRING DEPOSITS THRIFT DEPOSITS COMPULSORY DEPOSITS MANGALYA NIDHI JUBILEE TERM DEPOSITS MONTHLY DEPOSIT SCHEME

FIXED DEPOSITSFIXED DEPOSITS FIXED AMOUNT IS DEPOSITED FOR A

FIXED PERIOD OF TIME. THE AMOUNT SHOULD NOT BE LESS

THAN 500 &THE PERIOD SHOULD NOT BE LESS THAN 15 DAYS.

THE INTEREST RATE VARIES ACCORDING TO THE PERIOD FOR WHICH THE DEPOSITS HAS BEEN MADE.

SAVINGS BANK ACCOUNTSAVINGS BANK ACCOUNT THE DEPOSITS MOSTLY ARE OF SMALL

AMOUNT. CAN BE OPENED WITH A MINIMAM

AMOUNT OF 100.

Current Deposit

This type of account is generally opened by businessmen and by both members and non members can operate it.Cheque facility can be used for withdrawal. Usually no interest is given to current account holders.

Recurring DepositsRecurring Deposits

Recurring deposit is for the members of the cooperative society. The member should make such deposits on regular intervals up to a certain period. It is just like fixed deposits because amount can be withdrawn only after the maturity date. The minimum period is one year. Rs.100 or multiples of 100 is accepted for depositing.

Compulsory Deposit Compulsory Deposit

This type of deposit is compulsorily deposited with the bank in the form of shares. If a member takes loan from the bank, one percent of the loan amount will be subscribed as shares and the bank provide a certain percent of interest for this share.

Suvarna NidhiSuvarna Nidhi

In this type of deposits, the depositor will get double the amount he deposited with the bank within a period of 7 years.

Thrift depositThrift deposit It is a weekly savings scheme mainly to

encourage the thrift among people. The duration of this is 52 weeks. Minimum amount is Rs.50 and the amount may vary to multiples of Rs.50. Thrift deposit shows a declining trend throughout the period of study.

Status of deposits from 2000-01 to Status of deposits from 2000-01 to 2009-10(in lakhs)2009-10(in lakhs)

YearFixed

Deposit

Savings

Deposit

Recurring

Deposit

Current

Deposit

Jubilee

Term

Deposit

Mangalya

Nidhi

Suvarna

Nidhi

Other

DepositsTotal

2000-01 297.39 53.84 - 0.007 293.8 11.71 235.39 1.266 893.4

2001-02 291.34 52.08 - 0.007 346.77 11.71 275.01 1.576 978.5

2002-03 321.64 63.41 - 0.007 410.60 11.71 262.59 1.736 1071.7

2003-04 538.51 73.27 - 0.007 156.94 11.71 257.42 2.006 1039.9

2004-05 675.82 104.60 - 4.97 125 11.71 191.40 2.246 1115.7

2005-06 751.41 179.90 - 15.55 - 11.71 96.81 2.936 1058.3

2006-07 825.80 174.63 8.78 20.34 - 11.71 63.51 4.016 1108.8

2007-08 949.66 175.48 16.24 31.15 - 11.71 70.55 4.416 1259.2

2008-09 585.57 213.83 23.43 37.42 - - - 3.75 864

2009-10 706.31 118.08 27.81 42.51 277.50 - - 3.46 1175.7

BORROWINGS

The Thrissur District Co-operative bank and government are the main sources of borrowings of the Pananchery Service Co-operative Bank Ltd .The Borrowings of the bank from 2000-01 to 2009-10.

Table 1.5; Status of Borrowings from 2000-01 to 2009-10

YearSources of Borrowings

Total(in lakhs)DCB Government

2000-01 2.14 0.9 3.04

2001-02 26.80 0.8 27.60

2002-03 1.45 0.61 2.06

2003-04 96.11 0.61 96.72

2004-05 339.18 0.21 339.39

2005-06 375.80 - 375.80

2006-07 417.40 - 417.40

2007-08 370.55 - 370.55

2008-09 221.81 - 221.81

2009-10 197.31 - 197.31

Mobilization of deposits and deployment of loans are the major

functions of the bank.

Optimum deployment of loan is a matter of concern for all banks.

Advances are vital as it is the source, which provides income for

survival of banks.

This enables bank to meet its credit requirements and thus its

goals.

YearLoans and Advances

(In Lakhs)Growth Index

2000-01 596.63 100

2001-02 667.05 111.80

2002-03 732.07 122.70

2003-04 790.61 132.51

2004-05 915.26 153.40

2005-06 1026.47 172.04

2006-07 1121.11 187.90

2007-08 1246.82 208.97

2008-09 1324.21 221.94

2009-10 1407.37 235.88

Table :Total Loans and Advances from 2000-01 to 2009-10

The continuous increase in the loans granted shows that the service of bank reaches the particular region.

Main non-banking businesses are of the bank are

(i) Fertilizer Depots

(ii) Neethi Gas Storeso Apart from these the bank also conducts other

trading activities during Onam, Christmas etc to supply essential commodities to Members and Non – Members at reasonable rate.

The Management of the Pananchery Service Co-operative Bank is vested with the Board of Directors subjected to the general control of the General Body.

The General Body

•Supreme authority of the bank.

•Quorum of the G.B being 25 or 1/5 of members which ever is lower.

•Powers vested are to elect director board, consideration and approval of annual reports, budgets, division of net profit, and amendment of byelaws etc.

The Board of Directors

Ultimate authority and Control vested.

Consists of 9 members who are elected.

One seat reserved for SC/ ST and Women member.

The Board of directors shall meet once in a month

Term of office is 5 years.

The President

Overall Control and responsible for administration of the bank

Handles the accounts of the bank jointly with secretary

Vice President handles the responsibilities in absence

The Secretary

Chief executive officer of the bank.

Subject to general control of the bank.

Responsible for administration of the bank

A paid of the employee

FINANCIAL ANALYSIS

Financial statement reflects the state of affairs of an organization at a given point

of time as well as its financial performance over a period of time.

Performance Evaluation

Through ratio analysis

EFFICIENCY IN MOBILISATION EFFICIENCY IN DEPLOYMENT Efficiency in operation

EFFICIENCY IN MOBILISATION A) Deposits to Borrowed Funds

Ratio

This ratio indicates the share of deposits in the borrowed fund.

= Deposit/Borrowed *100

RATIO ANALYSIS

Year Deposit Borrowings Ratios (In %)2000-01 893.4 3.04 26278.23

2001-02 978.5 27.60 356.88

2002-03 1071.7 2.06 1071.72

2003-04 1039.9 96.72 1075.16

2004-05 1115.7 339.39 328.73

2005-06 1058.3 375.80 281.61

2006-07 1108.8 417.40 265.642

2007-08 1259.2 370.55 339.83

2008-09 864 221.81 389.52

2009-10 1175.7 197.31 595.86

B) Owned funds to Borrowed Funds Ratio

Owned funds to borrowed funds ratio

= Owned funds/Borrowed funds * 100

Year ShareCapital

Reserves OwnedFund

Deposits

Borrowings BorrowedFund

Ratios(In %)

2000-01 28.92 92.93 121.85 893.4 3.04 896.5 13.59

2001-02 32.12 79.43 111.55 978.5 27.60 1006.12 1.14

2002-03 32.55 84.98 117.53 1071.7 2.06 1073.78 10.94

2003-04 32.59 94.43 127.02 1039.9 96.72 1136.62 11.17

2004-05 33.21 135.87 169.08 1115.7 339.39 1455.09 11.61

2005-06 34.00 62.01 96.01 1058.3 375.80 1434.11 6.69

2006-07 34.72 65.01 99.73 1108.8 417.40 1526.1 6.53

2007-08 35.55 62.19 97.74 1259.2 370.55 1629.8 5.99

2008-09 32.64 62.25 94.89 864 221.81 1085.81 8.73

2009-10 37.13 62.33 99.46 1175.7 197.31 1373.01 7.24

RATIO ANALYSIS

EFFICIENCY IN DEPLOYMENTThe fund collected by the bank through

owned fund and borrowed fund should be deployed in profitable revenues.

A) Credit to Deposit Ratio This ratio indicates the ability of bank in

deploying credit to customers out of the deposits mobilized .

Credit to Deposit Ratio = Credit/Deposit*100

Year Credit DepositRatios(In %)

2000-01 596.63 893.4 66.77

2001-02 667.05 978.5 68.16

2002-03 732.07 1071.7 68.30

2003-04 790.61 1039.9 76.02

2004-05 915.26 1115.7 82.03

2005-06 1026.47 1058.3 96.99

2006-07 1121.11 1108.8 101.1

2007-08 1246.82 1259.2 99.01

2008-09 1324.77 864 153.32

2009-10 1435.28 1175.7 122.07

RATIO ANALYSIS

B) Credit to Borrowed Funds Ratio Credit to Borrowed funds ratio reveals the

measure of the efficiency of the bank in converting the borrowed funds to loans and advances.

Credit to Borrowed Funds Ratio = Credit/Borrowed funds*100

Year CreditBorrowed

FundRatios(In %)

2000-01 596.63 896.5 66.55

2001-02 667.05 1006.12 66.29

2002-03 732.07 1073.78 68.18

2003-04 790.61 1136.62 69.56

2004-05 915.26 1455.09 62.90

2005-06 1026.47 1434.11 71.57

2006-07 1121.11 1526.1 73.46

2007-08 1246.82 1629.8 76.50

2008-09 1324.77 1085.81 122

2009-10 1435.28 1373.01 104.53

RATIO ANALYSIS

C) Credit to Total Funds Ratio

From this ratio we can get an idea of quantity of credit that is included in the total funds of banks.

Credit to Total Funds Ratio = Credit/Total funds*100

YearCredit

OwnedFund

BorrowedFund

Total Funds Ratios(In %)

2000-01 596.63 121.85 896.5 1018.35 58.58

2001-02 667.05 111.55 1006.12 1117.62 59.68

2002-03 732.07 117.53 1073.78 1191.31 61.45

2003-04 790.61 127.02 1136.62 1263.64 62.56

2004-05 915.26 169.08 1455.09 1624.17 56.35

2005-06 1026.47 96.01 1434.11 1530.12 67.08

2006-07 1121.11 99.73 1526.1 1625.83 68.95

2007-08 1246.82 97.74 1629.8 1727.54 72.17

2008-09 1324.77 94.89 1085.81 1180.7 112.20

2009-10 1435.28 99.46 1373.01 1472.47 97.47

RATIO ANALYSIS

FUTURE PLANS

Link with other agencies for the encouragement of agricultural sector.

Opening of Neethi Stores.

Diversify their funds into educational sector

CONCLUSION

Pananchery Service Cooperative Bank meets the credit needs of the members.

Able to mobilize good deposit every year. Fixed deposit is the single largest contributor

of the source of fund to the bank. The total loans and advances provided by the

bank increased year after year

THANK YOU….