Project report of oscb 11

A STUDY ON FINANCIAL FUNCTION OF O.S.C.B
R A J D H A N I C O L L E G E O F E N G G . & M A N A G E M E N T Page 1
INTRODUCTION
Aggressive entry of the commercial bank both in public and private
sector into the rural areas with advanced technology and net working to
implement the financial inclusion envisaged in the 11th five year is the
major challenge before STCCS of the for which, our major trust would
be go for Core Banks with scope to connect the PACS in the commercial
counterparts and to scope with the imminent changes in banking
industry.
BACKGROUND OF THE STUDY :-
The business model for focusing only on Agriculture is possible for
sustenance when the balance sheet is small. But as the balance sheet size
expands, the bank is taking steps to diversify into to other segments of
lending to sustain the growth momentum. Continued pressure on margin of
all the three tires including the bank constitute one of the most daunting
challenges during the year 2007-08 necessitating redesigning and
rebalancing the business portfolio for sustaining the profitability. We need
to build strength to face stiff competition on account liberalization. Use of
technology has redefined relationship in the banking products available to
Indian customer . But Core Banking Solution in the bank is yet to
grounded although the work is in progress. However, the bank dwarfs
other Banks in Agricultural finance. It has been evolved as one of the best
farmers friendly Bank providing about 27% of the priority sector lending’s
including 44% of agricultural loans and 63% of crop loans disbursed by

the entire bank irrespective of the Cooperative Banks held only 4% of total
deposits mobilized in the state.
RESEARCH METHODOLOGY:-
The research involved extensive and intensive studies of the Orissa State
Cooperative Bank Limited. In This project has been made to study the
financial analysis of the bank. During this period, I study the final
position and performance of the Bank. At last, I have given
interpretation and conclusion of the study.
OBJECTIVES OF THE STUDY:-
1. To study the current financial of position of financial condition of the
bank.
2. To study the profitability of The Bank for Last Five Years
3. To Study the important Ratios For five Years.
4. Action to be taken for variance.
DATA COLLECTION :-
The data collection is completely made from as well as secondary
sources.
 The secondary sources cover :
 Annual Report

 Commercial Data
 Official Records in the organization
 Files
 Books on subject
 Web sites
LIMITATIONS OF THE STUDY:-
 Limitation of time
 The viability of the project under taken depends upon the reliability
of primary & secondary data taken.
 It is only a study of interims report & annual reports of the
organization. The study should not be made compressive due to true
factor and limited information in hand.
 It is a service organization so all the tool and technique are not apply.

COMPANY PROFILE
With the growth of central Bank, the need for loan and advances and
cash credit at a reasonable rate of grew for central Bank to enable them
to make adequate finance available to the societies. So in April 1914, the
Bihar and Orissa provincial Cooperative Bank was formed.
The early 40s witnessed the introduction of provincial autonomy in
all British Indian provinces and what was paramount importance was the
birth of the “Orissa providence” on 1st April 1936. The Orissa
providential cooperative Bank is one of the manifestations of the great
historical identity of Oriya people.
During this period the number of central Bank in North Orissa and South
Orissa are 13 & 2 respectively.
A few months after the formation of the separate Orissa Cooperative
Bank was registered on 15th August, 1936 and sum of Rs 10520 was
collected towards share capital of the Bank. The main objective of the
bank was –
 To finance the cooperative societies.
 To act as a balancing centre for the surplus funds of the societies in
Orissa.
 To carry on the banking businesas.

The central Bank and union of Orissa applied for the bifurcation of the
Bihar and Orissa provincial cooperative Bank. The 13 central
cooperative Banks in North Orissa served all connections with the Bihar
provincial cooperative by Orissa Government. The Orissa provincial
cooperative bank registered on 15th August, 1939 could not start its
functions due to pending of Government decision on the enquiry into the
conditions of the cooperative movement in Orissa. There was no Apex
Bank for the 13 northern CCBs. However, the two southern were
obtaining loans from the Madras provincial cooperative bank as usual.
On 2nd April, 1984 the Orissa provincial cooperative Bank was
again registered under the Bihar and Orissa cooperative society act
1935.22members were enrolled and 100 shares were issued and share
capital of Rs. 10,020/- was collected. So it was twice born of the Bank.
The name of “Orissa provincial cooperative Bank “was charged to
Orissa State cooperative Bank “ in the year 1951-52.
The institutional Rural Credit Delivery system of Agriculture
Comprises of :-
1. Short term cooperative credit structure.
2. Long term cooperative credit structure.
3. Regional rural Bank
4. Commercial Bank
5. NABARD
6. RBI

Milestone in the History of O.S.C.B. Bankltd.
1954-55 The Orissa Cooperative Society Act 1951 was
enforced and the rules The rules were formed
there under.
1955-56 M.T. Agriculture Loans were advanced to the
farmer for the First time.
1956-57 1.Line of credit for the handloom introduced
2. Bank’s deposit exceeds 1crore.
1957-58 Loan and advances of the bank exceeded
Rs.1 corer and stood 1.8 corers.
1959-60 Financing of the Industrial Cooperative Society
started.
1965-66 The Banking Regulation Act, 1949 was made
applicable to
1968-69 Crop loan was introduced
1965-66 The Banking Regulation Act 1949 was made
applicable to
1968-69 Crop loan was introduced
1970-71 The 1st branch of the Bank was opened at
Bhubaneswar on 15-12-1970.

1974-75 The Bank made loss of Rs 86000/- in the history
of 50 years i.e. from 1947 to 2000
1978-79 Cooperative storage projects stated in Orissa.
1981-82 A.C.S.T.I of the Bank was set up on 19-11-1985.
1990-91 New Cooperative year commenced from
01-04-1990
1994-95 MOU was signed between OSCB, NABARD and
Govt. of Orissa.
1996-97 The bank became a member of Indian Bank
Association on 23-04-1996
1997-98 The bank started total branch automation, the main
branch was fully computerized, NABARD awarded the
bank with Two best Performance prize for excellence
performance.
2000-02 ATM were installed in Cuttack and Bhubaneswar.
Customer attitude survey was taken up through the Xavier
Institution of Management, Bhubaneswar.

2002-03 i) Introduction of cooperation bank mutual Arrangement
scheme. (COBMASO)
ii) Recovery of cooperative duties in Orissa.
iv) The cooperative Bank has earned highest profit in that
year.
2003-04 i) Cooperation of “Mini Bank Schemes” at PACS level to
mop up Rural savings.
ii) Computerization Programmes for improving the quality
of customer service streamlines MIS and Financial
Accounting System.

STRUCTURE :-
Reserve Bank of India ( Central Bank)
Commercial
Bank
I.I S.B.I. Groups
II. National Banks
III. Regional Rural
Bank
IV. Private Bank
Insurance Companies
I) L.I.C
II) G.I.C
Mutual Fund
U.T.I
Development
Banks
NABARD
SIDBI
EXIM Bank
SFCS
IFC
ICICI
IDBI
State Land Development
Cooperative
Primary Land Development
Urban
Bank
State Cooperative Bank
17 District Central Cooperative Bank
2747 Primary Agricultural Cooperative
Society

HOW ORISSA STATE COOPERATIVE BANK GET FINANCE?
NABARD (National Bank for Agriculture and Rural Development)
Orissa State Cooperative Bank
District Central Cooperative Bank
Primary Agricultural Cooperative Society
Members
RESERVE BANK OF INDIA:-
On the recommendation of Royal Commission and Indian Central Bank
Enquiry committee, Reserve Bank of India was established on April 1st
1935 under Reserve Bank of India Act, 1934 as the Central Bank of the
Country. It was nationalized on 1st 1949 under the Reserve Bank Act
1948.
STATE COOPERATIVE BANK :-
It forms the apex of the cooperative credit structure in each state and as
such, It also known as Apex Bank. It finances, coordinates and control

the working of Central Bank in each sate. It serves as the link between
R.B.I NABARD on one side and the Central Cooperative Bank and
primary Society on other. They mobilize resources from the public by
way of deposits and by borrowing from RB.I, NABARD, SIOBI and
other refinancing agencies.
MISSION OF O.S.C.B LTS.:-
The mission of O.S.C.B. Ltd is to become a strong and Vibrant Bank
having competition edge and to lead a rejuvenated short term
Cooperative Credit Structure to serve the people of Orissa.
ACHIEVEMENT:-
Net worth exceeding 140 corers and deposits more than 1026 corers.
ATM service is available in the Main branches for anytime banking.
Earning profits since inception and paying dividend to share holders.
Awarded for best performance by finance Ministry, Govt. Of India.
Higher enter on all type of deposits.
Loan for commercial vehicles, small business building.
Purchase of customer and durables.
Demand draft issued on all types of deposits and on ace major cities of
country.

There are 17 affiliates of the Orissa State Cooperative bank which are
known as the Central Cooperative Bank or District Cooperative Banks
are as follows :-
Map Picture of Orissa
Represents CCBs
OSCB Network
17CCBs

The India Scenario of the Orissa State Cooperative Bank is as
follows :-
Chit fund
Indigenous Banker Unorganized
Money lender
Organized
Nidhis
R.B.I S.E.B.I MOF
Foreign Indian Cooperative Banks
Private Sector Public sector SCBs SCARD UCBs
Banks PCBs
CCBs
CARD BANKS
PACs
SBI & Nationalized PRBs
Subsidiaries Banks
Organized

FINANCIAL STATEMENT ANALYSIS:-
Introduction
According is the processes of recording, classifying, summarizing and
interpreting various business transactions in a systematic manner. It
provides the information to its various users for decision making. The
end products of the business transactions are the financial statements
comprising primarily the position statements or balance sheet and
income statement or profit and loss account.
MEANING OF FINANCIAL STATEMENT ANALYSIS :
A financial statement is a collection of data organized according to some
logical and consistent accounting procedures. Its purpose is to convey
and understanding of some financial aspects of a business form.
The term financial statement generally refers to the following two
statements:
 The position statement or the balance sheet.
 The income statement or profit and loss account.
Financial statements are prepared preliminary for decision making. But
the information provided in the financial statement is not an end in itself
as any meaningful conclusion can be drawn from these statements alone.

FANANCIAL STATEMENT ANALYSIS :
The financial statements are useful to different parties for different
purposes The objectives of financial statement analysis can be of many
and a few of them is listed below :-
1. To judge the earning performance of the business.
2. To judge the financial health of the enterprise.
3.To judge the financial viability of the company to pay its obligation
along with the interest.
4. To judge the solvency position of the enterprise.
PROCEDURE OF FINANCIAL STATEMENT ANALYSIS:
Broadly speaking, the analysis of financial statements is involved in the
steps :-
1. Selection
2. Classification
3. Interpretation
The first step involved selection of information relevant to the purpose
of analysis of financial statements. The second step involved is the
mathematical classification of the data. The 3rd step includes drawing of
interference and conclusion.

The following procedure is adopted for the analysis and
interpretation of financial statement :-
1. The analysis should know all the principles and postulates of
accounting, plans and policies or the management to find out whether
the plans are properly execute or not.
2. To know the earning capacity of the enterprise then analysis of
income statement and to know the financial position then analysis of
balance sheet will be undertaken.
3. The financial data given in the statement should be reorganized and
re-arranged. Similar data grouped under same heads, breaking down
individual components of statements according to the nature. The data is
reduced to a standard form.
4. A relationship is established among financial statements with the help
of tools and techniques of analysis such as ratios, trends, common size,
funds flow. Etc.
5. The information is interpreted in a simple and understandable way.
6. The significance and utility of financial data is explained for helping
decision taking.
7. The conclusions drawn from interpretation are presented to the
management in the form of reports.

TYPES OF FINANCIAL ANALYSIS :
Financial analysis can be classified into different types depending upon;
1. The material used, and
2. The method of operation followed in the analysis or the modus opera
ding og analysis.
3. Types of financial analysis.
Types of financial analysis
On the basis of Material used On the basis of modus operandi
ON THE BASIS OF MATERIAL USED :-
According to material used, financial analysis is of two types
a. External Analysis :
This analysis is done by the outsiders who do not have access to the
detailed internal accounting records of the business firm. These outsiders
include investors, potential investors, creditors, potential creditors, govt.
Agencies, and the general public. For financial analysis, these external
External
Analysis
Internal
Analysis
Horizontal
Analysis
Vertical
Analysis

parties to depend entirely almost on the published financial statements.
Thus external service serves a limited purpose. However, the recent
changes in the government regulations requiring business firm to make
available more detailed information to the public through audited
published accounts have considerably improved the position on the
external analysis.
b. Internal analysis :
The analysis concluded by person who have access to the internal
accounting records of a business firm is known as internal analysis. This
analysis is performed by executives and employees of the organization
as well as govt. Agencies which have statutory powers vested in them.
Financial analysis for managerial purposes is the internal type of
analysis that can be effected depending upon to the purpose to be
achieved.
ON THE BASIS OF MODUS OPERANDI :-
According to the method of operation followed in the analysis,
financial analysis can also be of two types:-
a. Horizontal
b. Vertical analysis

a. Horizontal analysis :-
Horizontal analysis refers to the comparison of financial data of a
company for several years. The figures for this of analysis are presented
horizontally over a number of columns. The figures of the various years
are compared with standard or base year. A base year is a year chosen as
beginning point. This type of analysis is also called Dynamic Analysis
as it is based on the data from year to year rather
Than on data of any year. There are two tools for horizontal analysis
1. Comparative statement
2. Trend percentage.
(b) Vertical analysis :-
Vertical analysis refers to the study of relationship of the various items
in the financial statements of one accounting period. In this types of
analysis the figures from financial statement of a year are compared with
a base selected from the same year statement. It is also known as static
analyses. There are two tools for vertical analysis :-
1. Common size financial statement
2. 2. Financial ratio.
METHODS OR DEVICES OF FINANCIAL ANALYSIS :-
The analysis and interpretation of financial statement is used to
determine the financial position and results of operations as well. A
number of methods or devices are used to study the relationship between

different statements. An effort is made to use those devices which
clearly analyze the position of the enterprise. The following methods
analyses are generally used :
1. Comparative Statement
2. Trend analysis
3. Common –size statement
4. Funds flow statement
5. Cash flow statement
6. Ratio analysis
7. Cost volume profit analysis
A.COMPARATIVE STATEMENT :-
The comparative financial statements are statements which are prepared
at different periods of time relating to the same concern. This is done to
make the financial data more meaningful. In comparative statement
figures for two or more periods are placed side by side to facilitate
comparison. In fact, the comparative statements will show the following:
1. Figures i.e. absolute figures
2. Change in figure i.e. increase or decrease.
3. Data in terms of percentage
4. Changes in terms of percentage i.e. increase or decrease. Both the
income statement and balance sheet can be prepared in the form of
comparative financial statements.

(i) COMPARATIVE INCOME STATEMENT :
The income statement discloses the net profit or net loss on account of
business operations. The comparative income statement will show the
absolute figure for two or more periods, the changes in absolute figures
and the changes in terms of percentages. Since, the figure of two or more
periods are shown side by side the reader can quickly ascertain whether
sales has increased or decreased, gross profit has increased or decreased.
(ii) COMPARATIVE BALANCE SHEET :
The comparative balance sheet as on two more different dates can be
used for comparing the assets and liabilities and finding out any increase
or decrease in those items. Thus in a single balance sheet the main
emphasis is on present position while it is on the changes of assets and
liabilities. Such a comparative balance sheet is very useful in studying
the financial position every different periods.
Guidelines for interpretation of comparative balance sheet:
While interpreting comparative balance sheet the interpreter is expected
to study the following aspects:
1. Current financial position and liquidity position
2. Long term financial position
3. Profitability of the concern.

B. Trend Analysis:
It is an important tool of financial statement analysis. This technique is
greatly helpful in making a comparative study of the financial statements
relating to several years at a time. Under this technique trend percentage
are calculated for each item of the financial statement taking the figures
of base year as 100. Generally the starting year is taken as base year.
The trend percentage shows the relationship of each item with the
figures of other years. They will show the direction (i.e. upward or down
ward) to which the concern is proceeding.
For example, if sales figure for the year 1995 to 2000 are to be studied,
then sales of 1995 will be taken as 100 and the percentage of sales for all
other years will be calculated in relation to the base year, i.e. 1995.
Suppose the following trends are determined.
Year Trend
1995 100
1996 120
1997 110
1998 125
1999 135
2000 140
2001 100
2002 120

The trends to sales show that sales have been more in all the years since
1995. The sales have shown on upward trend except in 1997 when sales
were less than the previous year i.e. 1996. A minute study of trends
shows that rate of increasing in sales is less in the years 1999 and 2000.
The increase in sales is 15% in 1998 as compared to 1997 and increase
in 1999 as compared to 1998 and 5% in 2000 as compared to 1999.
Through the sales are more as compared to the base year but still the rate
of increase has not been constant and acquires a study by comparing
these trends to other items like cost of production, etc.
PROCEDURE FOR CALCULATING TRENDS:
1. One year is taken as base year. Generally the first or last year is taken
as base year.
2. The figures of based year are taken as 100.
3. Trend percentages are calculated in relation to base year. If a figure in
other years is less than 100 and it will be more than 100 if figure is more
than base year figure. Each year figures are divided by the base year
figures.
C. COMMON- SIZE STATEMENT:
This is technique of financial analysis. The common – size statement,
balance sheet and income statement are shown in analytical percentages.
The figures are shown as percentage of total asset, total liabilities and
total sales. The total sales are taken as 100 and different assets are

expressed as a percentage of total. Similarly, various liabilities are taken
as component percentage or 100 percentage of the total.
1. Current ratio :
Current ratio is defined as the relationship between current assets and
current liabilities. This ratio is also known as working capital ratio, is
widely used to make the analysis of short term financial positional
liquidity of firm.
Current ratio = current asset/ current liability
YEAR CURRENT
ASSETS
CURRENT
LIABILITIES
RATIO
2004-05 10,632,206,762 6,454,307,961 1.64
2005-06 13,244,594,645 6,575,391,300 2.01
2006-07 16,487,392,940 6,873,819,228 2.40
2007-08 25,007,781,922 11,291,173,345 2.21
2008-09 28,369,278,489 12,334,468,908 2.30
The short term solvency position of bank is sound in 2007 -08

2. Cash position or Absolute liquid ratio:
Absolute liquid ratio may be defined as the relationship between liquid
asset and current liabilities.
Year Abs.Current asset Current
liability
Ratio
2004-05 1,580,818,439 6,454,307,961 0.24
2005-06 1,923,413,326 6,575,391,300 0.29
2006-07 3,293,147,702 6,873,819,228 0.48
2007-08 8,335,927,303 11,291,173,345 0.74
2008-09 10,484,298,572 12, 334,468,908 0.85
The absolute liquid ratio is increased in 2009-10
3. Debt equity ratio
Debt equity ratio is also known as external, internal equity ratio is
calculated to measure the relative claims of outsiders and the owner
against the firm assets. The financing of total assets of business concerns
done by owner’s equity as well as outsider’s debt. This ratio indicate the
relationship between the external equities or the share holders fund.

Debt equity ratio = Outsider’s funs/ shareholder’s fund
Debt equity ratio for the year 2005-06 to 2009-10 is as follows:
Year Outsider’s Fund Shareholder’s fund Ratio
2004-05 18,506,331,139 2,943,835,475 6.28
2005-06 22,563,000,765 3,198,520,937 7.05
2006-07 26,290,842,495 3,269,895,251 8.05
2007-08 33,349,509,288 3,447,009,077 9.69
2008-09 30,235,719,000 3,779,464,875 8.00
The debt equity ratio increased in 2008-09 but it but it was decreased in
2009-10 due to depression period.
4. Funded debt to capitalization ratio:
The ratio establishes a link between the long term funds raised from
outside and total long term funds available in business:
Funded debt to total capitalization ratio = ( funded debt/ total
capitalization) x 100
Funded debt to total capitalization ratio for the year 2005-06 to 2009-10
is as follows:
Year Funded Debt Total Capitalization Ratio
2004-05 2,140,779,754 2,611,895,352 0.82
2005-06 4,618,937,904 3,673,552,139 1.25
2006-07 12,514,136,802 13,211,822,727 0.95
2007-08 7,781,255,848 10,648,030,059 0.73
2008-09 8,468,978,322 9,409,975,913 0.90
The funded debt to total capitalization ratio is increased maximum in 2006-07

5. Equity or proprietary Ratio:
This ratio establishes the relationship between shareholder’s funds to
total assets of the firm.
Equity or proprietary ratio = ( shareholder’s fund/ total assets x 100
The equity ratio for the year 2005-06 to 2009-10 is as follows:
Year Shareholder’s Fund Total assets Ratio
2004-05 2,943,835,475 21,453,862,751 0.14
2005-06 3,198,520,937 25,773,075,463 0.13
2006-07 3,269,895,251 29,464,856,352 0.11
2007-08 3,447,009,077 36,845,691,827 0.09
2008-09 3,779,464,875 45,521,470,057 0.08
The proprietary ratio is increased in the year 2005-06 , and then
decreases.
6. Solvency Ratio:
The ratio indicates the relationship between total liabilities to outsiders
total liabilities to total assets of firm and can be calculated as follow:-
Solvency Ratio = ( total liabilities to outsiders/ total asset) X 100
Solvency ratio for the years 2005-06 to 2009-10 is as follows:
Year Total liabilities to
outsiders
Total asset Ratio
2004-05 15,022,967,513 21,453,862,751 0.70
2005-06 15,117,126,662 25,773,075,473 0.59
2006-07 16,340,008,434, 29,494,856,352 0.55
2007-08 33,394,509,289 36,845,691,827 0.91
2008-09 45,521,470,382 45,521,470,057 1.00
The solvency ratio increases in 2008-09.

7. Return on capital employed:
Return on capital employed established the relationships between profit
and the capital employed is the primary ratio and is most widely used to
measure the overall profitability and efficiency of the business.
Return on capital employed = ( net profit/ total capital employed X 100 )
Year Net Profit Total Capital Percentage
2004-05 174,0443,023 2,191,252,452 7%
2005-06 196,964,998 2,493,044,929 8%
2006-07 91,603,261 2,715,073,550 3.37%
2007-08 97,231,865 2,621,037,124 4.03%
2008-09 96,910,330 2,040,217,500 4.75%
The return on capital employed for the year 20089-09 is increased as
compared to 2007-08
8. Return on equity capital:-
In ordinary, shareholders are the real owners of the company, They
assume the highest risk in the company. It establishes the relationship
between net profit and equity capital.
Return on capital employed = ( Net profit / Equity capital ) X 100
Return on equity capital for the year ended 2004-05 to 2008-09 as
follows:

Year Net Profit Equity share Percentage
2004-05 174,43,023 4,500,000 38.79%
2005-06 196,964,998 4,500,000 43.76%
2006-07 91,603,261 4,500,000 20.35%
2007-08 97,231,865 4,500,000 21.61%
2008-09 96,910,330 4,500,000 21.53%
The earning per share is increased up to 2005-06 and decreases in 2006-
07.
9. Earnings per share (EPS)
Earning per share are a small variation of return on equity capital. It
shares that net profit available to equity shareholder and number of
equity share outstanding.
Earning per share = (Net profit / No of equity shareholders ) X 100
Earning per share for the year 2004 -05 to 2007-08 are as follows :-
Year Net Profit Equity share Percentage
2004-05 174,443,023 4,500,000 38.79%
2005-06 196,964,998 4,500,000 43.76%
2006-07 91,603,261 4,500,000 20.35%
2007-08 97,231,865 4,500,000 21.61%
2008-09 96,910,330 4,500,000 21.53%
The earning per share is increased up to 2005-06 and then decreases.

ORISSA STATE CO- OPERATIVE BANK LTD. BBSR
P/L ACCOUNT FOR THE YAER ENDING 31.03.2010
EXPENDITURE ( Amount in lakh )
Particulars 2006-07 2007-08 2008-09 2009-10
Interest paid on Deposits
& Borrowings
1395937255.58 1742121619.02 2370535326.73 3027935139.08
Salary & Allowances 94960048.95 144470099.70 119878998.60 145746368.26
Director & Local
Committee Members
215659.00 577892.96 941018.46 2333326.18
Rent , Taxes &
Insurance
14894381.83 18936824.89 17740328.26 15018657.65
Law Charges legal
expenses
1241822.90 1206672.00 918739.00 1119506.00
Postage telegram 1590337.13 2010979.47 1635528.86 1714171.54
Audit fee 159142.00 331484.00 288890.00 389382.00
Depreciation & repair 17964933.26 17201877.68 16637597.76 15637990.23
Stationary and
advertisement
3447826.96 3529339.49 3091984.41 4091486.83
Other expenditure 119142242.98 79578931.58 63948683.32 107582799.91
Balance profit 91603261.57 97231865.85 96910330.18 103437258.82
Total 1741156912.16 2107197586.64 2692527425.52 3491798526.50

Income (Amount in lakh)
Particulars 2006-07 2007-08 2008-09 2009-10
Interest &
Discount
1691129945.33 2085494315.36 2673633013.04 3454856261.10
Commission,
Exchange &
Brokerage
8295349.24 10936979.41 12259922.72 22339495.13
Subscription
& Donation
00 00 00 00
Income from
non Banking
Asset &
Profit from
sale of such
asset
00 00 00 00
Other receipt 41731617.59 10766291.87 6634489.76 14602770.27
Total 1741156912.16 2107197586.64 2692527425.52 3491798526.50

FinancialStatement of OSCB Bank Ltd
Balance sheeton31.03.2010
Capital & Liabilities
Particulars 2005-06 2006-07 2007-08 2008-09 2009-10
Share Capital 643,798,225 697,685,925 713,758,300 734,312,050.00 744,130,850.00
Reserve fund
and other
reserves
1,849,246,713 2,017,387,326 2,153,015,911 2,224,524,285 2344987132.00
Deposit and
other account:
 Fixed
Deposit
 Saving
Bank
Deposit
11,380,225,322
477,692,338
11,826,847,907
694,462,338
14,322,080,095
681,158,815
21,494,019,073
826,925,335
31674926705.00
1049334572.00
Borrowings
From
RBI/NABAR
D
a. Short term
loan
b. Medium
term loan
c. Long term
loan
ii. From state
govt.
iii. From other
institutions.
4,924,479,000
3,045,867,400
1,180,507,200
42,563,304
350,000,000
5,658,399,000
2,935,393,200
1,399,153,800
22,979,414
21,498,211,388
8,678,069,000
2,722,643,500
2,049,333,100
9,271,248
3,000,000,000
10,054,262,00
1,034,983,565
2,632,674,000
5,390,587,
3,500,000,000
12500000000
1461481220
3392465300
4707964
5000000000
Bill Payable 11,553,760 3,813,252 4,173,480 4,969,967 6881775
Overdue
interest
reserved
508,511,000 554,822,000 483,003,000 490,300,000 355182729
Interest
Payable
749,918,675, 505014456 916358147 1325571665 2306862680
Other
Liabilities
138,066,697 151770520 156146042 315370443 255985025
Profit and loss 196964997 91603261 97231866 96910330 103437258

PROPERTIES AND ASSETS
Particular 2005-06 2006-07 2007-08 2008-09 2009-10
Cash 747,205,922 1095019529 1389999078 1333349677 2789653910
Balance with
other Bank
19458795 5219215 9127365 3747397 30782957
Money call
& short
notice
1156748608 2,192908958 8677832820 16639307325 23657507325
Investment 5947778710 5666979089 5645567938 6273729094 9279074630
Advance:
i. Short term
loan
ii. Medium
term loan
iii.Long term
loan
iv.Gold loan
10326557051
4472867228
201821700
4410867
12167837492
4485775141
2718261125
4251114
13971051846
2818531527
3266842342
7349504
13803589684
2004124495
3989679296
15385075
17720786352
2458112504
4691336724
18302736
Interest
receivable
877704404 978103360 871631465 867494919 1004288426
Bills
receivable
11553760 3813252 4173481 4969968 6881775
Adjusting
head
13785553 1498320 28665848 432980110 424241545
Premises 30432571 33528111 32629127 31046213 28901593
Furniture
and fixture
and fixtures
less :
depreciation
40988885 37170507 34150138 30678539 30189783
Other asset 105366100 104491197 88139347 91388268 186111456
Non Banking
assets
acquired in
certification
of claims
Nill Nill Nill Nill Nill
Profit &
Loss
Nill Nill Nill Nill Nill

INTERPRETATION
CAPITAL & LIABILITIES
1. The common size balance sheet from 2005-10 included that there are nearly
equal existence of share capita or very small change year to year.
2.Reserve fund & other reserve are nearly equal to each other . In
2007,2008,2009,2010 was 20173.87,2530.16,22745.24,23449.87 respectively.
3.Owned fund will increase year to year in 2007,2008,2009,2010, was
27150.73,28667.74,29588.36,30891.18respectively .
4.Deposit will be vary year to year 2007,2008,2009,2010 was
129586.23,156626.80,231022.01,33850049 respectively .
5.Borrowing also increase year to year in 2007,2008,2009,2010 was
125147.37,166593.25,172273.10,223586.54 respectively.
6.Investment will increase year to year in higher percentage in
2007,2008,2009,2010 was 78598.88,143234.01, 229130.36,329365.82,respectavily
7. Advances will vary year to year in 2007,2008 was 193761.22,200637.75. But
2009 decreases 198127.78 & 2010 it increases 248885. 38.
8. Cost management will also change year to year in 2007,2008 it was
1679.00,2678.43.But 2009 it was decreases 1864.72 & in 2010it increases to
2292.83.
9. Working capital also increase year to year but in 2010 it increases highly that is
622117.45.
10. Net Profit will also vary year to year in 2007 ,2008 was 916.03,972.32. But in
2009 decreases to 969.10 and increase in 2010.1034.37.
11. Dividend declared also increase highly in 2008 but in decrease in 2009 as
compare to the year 2008.

PROPERTIES AND ASSETS
1. The cash amount is maximum in 2009 -10 as compared to 2008-09.It
increase 109.22% in 2009-10 as compared to the pervious year.
2. Balance with other bank in2008-09 was 3747396.65 and in 2009-10 it
increase to 30782957.65.
3. Money at call and short notice in 2008-09 was 16639307325.00 and
in 2009-10 it increase s to 23657507325.00.
4.Investment in 2008-09 was 6273729094.00 and it increases 2009-10 to
9279074630.00.
5. Loan and advances also increases in 2009-10 as compared to 2008-09
that is 19812778550.14 to 24888538318.17.
6. Interest receivable increases I 2009-10 to 1004288426.63as compared
to 2008-09.
7. Bill receivable being the bill lodged as per contra in 2008-09 was
49.69 lakh. But it increases in 2009-10 to 68.81 lakh.
8. Adjusting head in the year 2008-09,4329.80lakh. But in 2009-10it
decreases to 4242.41 lakh.
9. The premises of the continuing year are following down slowly in
2008-09 it was 310.46 lakh but in 2009-10 it decreases to 289.01lakh.
10. Furniture & Fixture less depreciation was in 2008-09 Rs.
306.78lakh. It decreases in the year 2009-10 to Rs.301.89lakh.
11. Other asset will be purchase by bank in 2010 which indicates to
improvement of bank and it will increases Rs.1861.11lakh in the year
2009-10.
12. Profit also increase year to year.

FINDINGS
1. As a convention of current ratio the maximum of 2:1 is referred to as
a bank’s rule of thumb but in 2004-05 states not so satisfactory. Thus,
from the current ratio analysis, bank’s overall liquid position is
satisfactory.
2. The standards norm or absolute liquidity liquidity ratio is is 0.5:1. But
in case of O.S.C.B absolute liquidity position is satisfactory.
3. In case of debt equity ratio of O.S.C.B outsides fund has increased
over the year, which states that the claims of outsiders are greater than
those owners.
4. In case of funded debt to total capitalization ratio says that there is no
rule of thumb. But still the lesser is the better, i.e., up to 50% or 55% So
funded debt to total capitalization ratio of O.S.C.B is satisfactory.
5. The proprietary ratio of O.S.C.B over the year shows that business
concern becomes more dependent upon creditors to supply its working
capital.
6. The concern assets to proprietary fund of the bank are very high over
the year it means that proprietary’s fund of bank over the year are not
satisfactory.
7. The fixed assets to proprietary’s fund of the bank over the year are not
satisfactory.

8. The solvency ratio of O.S.C.B is high over the year but low
percentage is satisfactory. It indicates the long term solvency position of
the company is not so good.
9. The fixed asset to current assets of O.S.C.B is very high which has
reminded idle that is not satisfactory to the company
10.The return on assets of O.S.C.B is satisfactory that is the resources of
the organization were being used properly.
11.The return on equity capital of O.S.C.B provides a higher rate of
dividend to its equity shareholders.
12. The return on equity capital of O.S.C.B provides a higher rate of
dividend to equity shareholders.
13. The earnings per share of O.S.C.B over the year have gradually
increased which is satisfactory to the equity shareholders.

SUGGESTION
 Invest the ideal money ineffectively and efficient manner.
 Keep the financial position better and incest the fund in the right time
and right place.
 Increase share capital rather than debt capital.
 Select the standard performance try to over the stand and performance
 The Performance and facility should be better than other commercial
bank.
 Increase the return on investment, so that, the share capital should be
increased easily.
 Less amount of borrowing givens a good financial position.
 Invest amount of borrowing gives a good financial position.
 Invest long term, so that it decrease liquidity of the firem
 Modernized occurring to the other organization and policy.
 The modernized rules and regulation must be suitable for the
customer, employees and employer.
 Increase the personal transaction and individual savings.
 The current account operation should give minimum operating cost.

 All type of modern systems should be used for better performance.
 The bank should focus more on advancing long and getting money
from depositors
 It should recover its money from defaulters in a limited time.
 It should control the non-operation expenses and other.
 It should ready for the coming competition as because all bank are
going to be privatized.
 It should diversify its business and should given longs to
nonagricultural sectors.

CONCLUSION
From all the above interpretation we many conclude that the overall
performance of the bank is satisfactory. The growth rate of the bank
shows a sound position. The organization does not utilize its assets.
From the discussion we can say that the market value per share is low
and book value of the share is high. The bank has been earning profit
since its inception and continuously pauing dividend to its shareholders.
All the branches and extension counters of the bank are fully
computerized to provide efficient customer service.
The OSCB have designed its loan policy document and manual of
instruction with a broadly concept minimizing its credit facilities to the
right borrowing. It is the most leading bank in the sector of the co-
operative and it can all types of financial facilities to the customer for
challenge to the modern private and Govt. Banks.

BIBLIOGRAPHY
1. Chandra Prasad : Financial Management, Theory & Practice
2. Khan M.Y & P.K. Jain : Financial Management
3. Pandey L.M : Financial Management
4. Sharman R.K &
Shashi K. Gupta : Management accounting
REFERENCES :
1. Annual report (2008-09) : O.S.C.B. Ltd
2. Annual Report (2009-10) : O.S.C.B. Ltd
3. Web –site : www.oscb.coop

Project report of oscb 11

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