Upload
jayanth-kumar
View
222
Download
0
Embed Size (px)
Citation preview
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 1/90
CASH MANAGEMENT
1.1 INDUSTRY PROFILE
BANK
A banker or bank is a financial institution whose primary activity is to act as
a payment agent for customers to borrow and lend.
The word Bank is used in the sense of commercial bank. It is of Germanic
origin though some persons trace its origin to the French word “Banqui”, and the
Italian word “Banca”, it referred to a bench for keeping, lending and exchanging of
money or coins in the market place by moneylenders and moneychangers. In fact
the early Jews in Lombardy transacted their banking business by sitting on
benches.
Banking Regulation Act of India, 1949 defines Banking as “accepting, for
the purpose of lending or investment of deposits of money from the public,
repayable on demand or otherwise and withdrawal by cheques, draft, order or
otherwise”.
HISTORY OF BANKING IN INDIA:
Banking in India originated in the last decades of the 18th century. The
oldest bank in existence in India is the State Bank of India , a government-owned
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 1 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 2/90
CASH MANAGEMENT
bank that traces its origins back to June 1806 and that is the largest commercial
bank in the country. Central banking is the responsibility of the Reserve Bank of
India , which in 1935 formally took over these responsibilities from the then
Imperial Bank of India, relegating it to commercial banking functions. After India's
independence in 1947, the Reserve Bank was nationalized and given broader
powers. In 1969 the government nationalized the 14 largest commercial banks; the
government nationalized the six next largest in 1980.
Currently, India has 88 scheduled commercial banks (SCBs) - 27 public
sector banks (that is with the Government of India holding a stake), 29 private
banks (these do not have government stake; they may be publicly listed and traded
on stock exchanges) and 31 foreign banks. They have a combined network of over
53,000 branches and 17,000 ATMs . According to a report by ICRA Limited, a
rating agency, the public sector banks hold over 75 percent of total assets of the
banking industry, with the private and foreign banks holding 18.2% and 6.5%respectively.
Without a sound and effective banking system in India it cannot have a
healthy economy. The banking system of India should not only be hassle free but it
should be able to meet new challenges posed by the technology and any other
external and internal factors.
For the past three decades India's banking system has several outstanding
achievements to its credit. The most striking is its extensive reach. It is no longer
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 2 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 3/90
CASH MANAGEMENT
confined to only metropolitans or cosmopolitans in India. In fact, Indian banking
system has reached even to the remote corners of the country. This is one of the
main reasons of India's growth process.
The government's regular policy for Indian bank since 1969 has paid rich
dividends with the nationalization of 14 major private banks of India.
Not long ago, an account holder had to wait for hours at the bank counters for
getting a draft or for withdrawing his own money. Today, he has a choice. Gone
are days when the most efficient bank transferred money from one branch to
other in two days.
The first bank in India, though conservative, was established in 1786. From
1786 till today, the journey of Indian Banking System can be segregated into three
distinct phases. They are as mentioned below:
Early phase from 1786 to 1969 of Indian Banks:
Nationalization of Indian Banks and up to 1991 prior to Indian banking sector
Reforms.
New phase of Indian Banking System with the advent of Indian Financial
& Banking Sector Reforms after 1991.
To make this write-up more explanatory, I prefix the scenario as Phase I, Phase IIand Phase III.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 3 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 4/90
CASH MANAGEMENT
PHASEI
The General Bank of India was set up in the year 1786. Next came Bank of
Hindustan and Bengal Bank. The East India Company established Bank of Bengal
(1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units
and called it Presidency Banks. These three banks were amalgamated in 1920 and
Imperial Bank of India was established which started as private shareholders
banks, mostly Europeans shareholders.
In 1865 Allahabad Bank was established and first time exclusively by
Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at
Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of
Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up.
Reserve Bank of India came in 1935.
During the first phase the growth was very slow and banks also
experienced periodic failures between 1913 and 1948. There were approximately
1100 banks, mostly small. To streamline the functioning and activities of
commercial banks, the Government of India came up with The Banking
Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as
per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested
with extensive powers for the supervision of banking in India as the Central
Banking authority.
During those day’s public has lesser confidence in the banks. As an
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 4 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 5/90
CASH MANAGEMENT
aftermath deposit mobilization was slow. Abreast of it the savings bank facility
provided by the Postal department was comparatively safer. Moreover, funds were
largely given to traders.
PHASEII
Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalized Imperial Bank of India with extensive
banking facilities on a large scale specially in rural and semi-urban areas. It formed
State Bank of India to act as the principal agent of RBI and to handle banking
transactions of the Union and State Governments all over the country.
Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on
19th July, 1969, major process of nationalization was carried out. It was the effort
of the then PrimeMinister of India, Mrs. Indira Gandhi. 14 major commercial
banks in the country were nationalized.
Second phase of nationalization Indian Banking Sector Reform was carried out in
1980 with seven more banks. This step brought 80% of the banking segment in
India under Government ownership.
The following are the steps taken by the Government of India to Regulate
Banking Institutions in the Country:
1949 : Enactment of Banking Regulation Act.
1955 : Nationalization of State Bank of India.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 5 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 6/90
CASH MANAGEMENT
1959 : Nationalization of SBI subsidiaries.
1961 : Insurance cover extended to deposits.
1969 : Nationalization of 14 major banks.
1971 : Creation of credit guarantee corporation.
1975 : Creation of regional rural banks.
1980 : Nationalization of seven banks with deposits over 200 crore.
After the nationalization of banks, the branches of the public sector bank India rose
to approximately 800% in deposits and advances took a huge jump by 11,000%.
Banking in the sunshine of Government ownership gave the public implicit faith
and immense confidence about the sustainability of these institutions.
PHASEIII
This phase has introduced many more products and facilities in the banking
sector in its reforms measure. In 1991, under the chairmanship of M Narasimham,
a committee was set up by his name which worked for the liberalization of banking
practices.
The country is flooded with foreign banks and their ATM stations. Efforts are
being put to give a satisfactory service to customers. Phone banking and net
banking is introduced. The entire System became more convenient and swift. Time
is given more importance than money.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 6 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 7/90
CASH MANAGEMENT
The financial system of India has shown a great deal of resilience. It is
sheltered from any crisis triggered by any external macroeconomics shock as other
East Asian Countries suffered. This is all Due to a flexible exchange rate regime,
the foreign reserves are high, the capital account is not yet fully convertible, and
banks and their customers have limited foreign exchange exposure.
Before the steps of nationalization of Indian banks, only State Bank of India
(SBI) was nationalized. It took place in July 1955 under the SBI Act of 1955.
Nationalization of Seven State Banks of India (formed subsidiary) took place on
19th July, 1960.
The State Bank of India is India's largest commercial bank and is ranked one
of the top five banks worldwide. It serves 90 million customers through a network
of 9,000 branches and it offers -- either directly or through subsidiaries -- a wide
range of banking services.
Structure
The Indian banking system can be classified into nationalized banks,
private banks and specialized banking institutions. The industry is highly
fragmented with 30 banking units contributing to almost 50% of deposits and 60%
of advances. The Reserve Bank of India is the foremost monitoring body in the
Indian Financial sector. It is a centralized body that monitors discrepancies and
shortcomings in the system.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 7 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 8/90
CASH MANAGEMENT
Industry estimates indicate that out of 274 commercial banks operating in
the country, 223 banks are in the public sector and 51 are in the private sector.
These private sector banks include 24 foreign banks that have began their
operations here. The specialized banking institutions that include cooperatives,
rural banks, etc. form a part of the nationalized banks category.
BANKING SECTOR IN BUDGET 2008
The Union Budget of India for the year 2008-2009 was announced by the
Indian Finance Minister, Mr. P Chidambaram, on 29th February 2008. The policies
and initiatives taken in the Union Budget of India 2008-2009 on the Indian
Banking sector were in tandem with the requirements of the Indian economy.
Small and marginal farmers have been relieved of all farm loans, disbursed till
March 2007 and also all loans, which are due till December 2007 and was unpaid
till February 2008. These farm loan waivers would be facilitated by all the
concerned Public Sector Banks and Regional Rural Banks of India. A total of Rs
60,000 crores would be waived-off under such scheme. The settlement of these
loan-waivers will be offered through special type of scheme.
Further, the Public Sector Banks and Regional Rural Banks of India were alsosuggested, to bring within their fold, a minimum of 250 rural household accounts
at every branch every year.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 8 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 9/90
CASH MANAGEMENT
The Indira Awas Yojana was brought under the ambit of Public Sector
Banks. Loan limit up to Rs 20,000 per unit at 4% interest was fixed under
differential rate of interest (DRI) scheme. The Finance Minister also advised the
Indian PSU Banks to open 288 branches in minority districts of India. Further, he
also asked the Indian banking industry to embrace total financial inclusion. In
another landmark decision, the Finance Minister, Mr. P. Chidambaram said that the
Ex-banking servicemen in India would be offered employment opportunities in the
banking sector.
Another major announcement was that, the much talked-about 'Banking
Cash Transaction Tax (BCTT)' would be withdrawn from the financial year 2009-
2010.
Experts believe the impact of the decisions and policies taken during the
Union Budget of India 2008-2009 on the Indian Banking sector would be mixed. Itis expected that the Indian PSU banks will face pressure on their net interest
margins due to the waiving-off of agricultural loans.
Further, the cumulative cost that will be incurred for opening up of new
Regional Rural Banks in India may substantially increase the operating cost for the
banks. The inclusion of the Indira Awas Yojana houses under the differential rateof interest scheme and at 4% interest will increase the proportion of sub-PLR
lending for the concerned banks.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 9 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 10/90
CASH MANAGEMENT
The major Public Sector Banks of India like the State Bank of India, Bank
of Baroda, and Punjab National Bank may see their net interest margins shrinking
till the subsidy for waiver of agricultural loans is being completely released.
Moreover, experts are skeptical about the long term benefit of such agricultural
loan waiver as offered through the Union Budget of India 2008-2009.
YEAR OF THE EVENTS:
1980 - The Bank came into existence on 15th April, as a consequence of the
Government of India taking over the undertaking of Vijaya Bank Ltd. The Bank is
engaged in transacts all types of banking business including foreign exchange and
is a Government of India undertaking.
1984 - Capital worth Rs 10 lakhs subscribed by Government.
1985 - The Bank sponsored its first Regional Rural Bank under the name and style
"Visweswaraya Grameena Bank" in March. This Regional Rural Bank would cater
to the needs of the target group belonging to Mandya district of Karnataka State.
- Capital worth Rs 772 lakhs subscribed by Government.
1986 - Capital worth Rs 1000 lakhs subscribed by Government.
1989 - Rs 800 lakhs subscribed by Government.
1991 - Rs 2500 lakhs subscribed by Government.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 10 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 11/90
CASH MANAGEMENT
1992 - Rs 2500 lakhs subscribed by Government.
- The bank has introduced automatic renewal facility up to four times inrespect of short term deposits accepted for periods from forty six days to
one year for the convenience of the stomers.
1993 - Rs 5000 lakhs subscribed by Government.
- The Bank has installed 68 ALPMs in 25 branches.
1994 - Rs 6500 lakhs subscribed by Government.
- The Bank had entered into the Memorandum of Understanding with the
Reserve Bank of India, undertaking to fulfill definite performance commitments.
- The Bank introduced the new schemes viz. Vijaya Gift Bond Scheme and
Vijaya Service Card for enlarging its services to its business clientele.
1995- - The Bank opened its third exclusive NRI branch at Mapuca (GAO) and
established special NRI Cells at the branches in Tiruvalla, Kottayam, Trivandrum
and Kozhencherry (all in the Kerala State).
- The Bank launched its "V-Invest" Scheme in January. 1995 - Rs 6231 lakhs
subscribed by Government.
- The Bank opened 33 new branches taking the total to 810 branches.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 11 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 12/90
CASH MANAGEMENT
- The Bank entered into strategic alliance with leading private sector banks and
branches of foreign banks in India viz City Bank, N. A. India, Catholic Syrian
Bank Ltd, HDFC Bank Ltd, Centurion Bank Ltd, UTI Bank Ltd, etc.
- The Bank introduced Office Automation by providing state-of-the-art word
processors at 45 branches, 13 Regional Offices and Head office departments.
1996 - The Bank opened its first subsidiary, VIBANK HOUSING FINANCE LTD
to add impetus to housing finance.
- Vijaya Bank introduced three new loan schemes, namely, 'Vijaya Nivruthi',
'Vijaya Krishi Vikas' and 'Vijaya Mangala' to cater to the credit needs of
pensioners, farmers and working women respectively.
1997 - Vijaya Bank has introduced a novel way to improve customer service.
- The bank has recently introduced a system of rating its branches once in sixmonths to evaluate the quality of service and the facilities extended to the clientele.
- Vijaya Bank has launched a special agriculture credit plan targeted
specifically at agriculture and other, rural advances.
- The Bank has recently introduced a new `trade finance' scheme.
1998 - Vijaya bank has introduced a jewel scheme under which loans are granted
by the bank to fund the purchase of jewellery by keeping the purchased item as
collateral till the loan has been repaid.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 12 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 13/90
CASH MANAGEMENT
1999 - Vijaya Bank has entered into a Rs 200-crore take-out financing agreement
with the Housing and Urban Development Corporation (HUD co) for funding
infrastructure projects.
- The Housing and Urban Development Corporation (HUD co) has entered into a
three-year reversible securitization deal with the public sector Vijaya Bank, to raise
funds for meeting some of its infrastructure financing commitments.
2000 - Vijaya Bank has introduced a new scheme named V-Star savings bank
account scheme.
- Vijaya Bank Chairman and Managing Director S Gopalakrishnan have
been elected as the president of Indian Banks' Association, Bangalore.
.
2002 -Vijaya Bank has informed BSE that Government of India appointed Sri M S
Kapur as the Chairman & Managing Director of the Bank and Mr. M S Kapur took charge as Chairman & Managing Director of the Bank w e f August 16, 2002.
Bank has further informed that Sri Michael Bastian, Executive Director of Bank
has been posted as the Chairman & Managing Director Syndicate Bank. Mr.
Michael Bastian was relieved as the Executive Director of the Bank on August 24,
2002.
2003 -Vijaya Bank signs a pact with LIC to offer Life insurance cover to all its
existing as well as its new deposit-holders.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 13 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 14/90
CASH MANAGEMENT
-Bank officials are undertaking road shows where senior officials carry placard,
giving reasons about their visit. This is an innovative way to deal with defaulters
for repaying loans without publicly naming them.
-Vijaya Bank has unveiled a new electronic fund remittance facility
called V-REMIT, under which the bank customers can electronically remit funds
to the account holders in any bank.
-P A Sethi has been appointed as the Executive Director of the Vijaya
Bank.
-Vijaya Bank has signed a Memorandum of Understanding with M/s
National Insurance Company Limited for marketing banc assurance products.
-Vijaya Bank decides to open training centre for employees in Bangalore
-The Union government has bought back Rs 240-crore high-yieldinggovernment securities from Vijaya Bank.
2004 -Vijaya Bank ties up with NIC to offer free insurance policy
-US-based Principal Group enters distributorship tie-ups with Vijaya Bank
-Delhi based Punjab National Bank (PNB) and Bangalore-based Vijaya Bank
enter into a four-way partnership with Principal Financial of the US and Berger
Paints to set up an insurance broking company
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 14 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 15/90
CASH MANAGEMENT
-Vijaya bank Housing Finance Ltd. becomes wholly owned subsidiary of
Vijaya Bank
- Vijaya Bank has entered into a memorandum of understanding (MoU) with
two tractor manufacturers International Tractors and Mahindra Gujarat Tractors to
provide finance on softer terms to farmers for purchase tractors and power tillers
-VIJAYA Bank signs pact with Nabard to co-finance agriculture, agro
processing, hi-tech agriculture and rural development projects.
-Vijaya Bank too enters RTGS bandwagon
-Principal Asset Management Company (AMC) formally relaunches itself
as Principal PNB Asset Management Company in association with Vijaya Bank on
July 2, 2004
-Vijaya Bank launched the bank's second city specific credit card - the'Hyderabad Card'
2005 -Vijaya Bank ties up with TAFE
-Vijaya Bank sets up new branches
2007 - Vijaya Bank has informed that Shri G B Singh has been nominated as GOI
Nominee Director of the Bank vice Shri Atul Kumar Rai, vide letter dated August
20, 2007 received from Government of India, Ministry of Finance, Department of
Financial Services with immediate effect.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 15 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 16/90
CASH MANAGEMENT
2008 - Vijaya Bank inked a memorandum of understanding with credit rating
agency, Crisil, for rating its corporate customers.
- Vijaya Bank has inked a pact with Credit Analysis & Research Ltd
(CARE), one of the RBI accredited rating agency, to provide bank loan ratings to
its corporate clients at a concessional fee.
-Vijaya Bank has informed that Shri. Sridhar Cherukuri has been nominatedas part-time non-official Director of the Bank with immediate effect, vide letter
dated July 10, 2008 received from Government of India, Ministry of Finance,
Department of Financial Services.
Vijaya Bank is an India-based bank. During the fiscal year ended March 31, 2008,
the Bank opened 73 new branches, upgraded five extension counters into full-
fledged branches. As of March 31, 2008, the Bank had 1,051 branches across 28
states and four union territories. Total credit cards issued by the Bank was 1,
43,000 at March 31, 2008. As of March 31, 2008, it had issued 3,95,000 debit-
cum-automated teller machine (ATM) cards
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 16 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 17/90
CASH MANAGEMENT
1.2 COMPANY PROFILE IN BRIEF
• INTRODUCTION:
Vijaya bank has been able to maintain a standard profile since it was born a
Detailed discussion on the profile of the organization is carried on below.
• ORIGIN AND GROWTH OF THE ORGANISATION:
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 17 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 18/90
CASH MANAGEMENT
Vijaya Bank was founded by late Shri A.B Shetty. He was an ardent
Gandhian and he was closely associated with the Indian freedom movement.
Vijaya Bank was established in the year 1931, in Mangalore, Karnataka. The Bank
commenced its business operations on 23rd October 1931 with an authorized
capital of Rs.5 lakhs and a paid of capital of Rs.8670.
The bank was founded essentially to promote banking habit, thrift and
entrepreneurship among the farming community of Dakshina Kannada district,
Karnataka. The Bank became a scheduled Bank in 1958.Vijaya Bank steadily grew
into a major All India Bank, with nine smaller Banks merging with it during 1963-
1968. The credit for the successful execution of the merger plan should go to late
Shri M Sunder Ram Shetty, who was the then Chief Executive of the Bank. The
Bank was nationalized on 15th April 1980. The Bank has built a network of 1027
branches spread over 29 states of the country and 3 union territories. The Bank
took several initiatives for effective implementation of various Governmentsdirected lending schemes.
Vijaya Bank has the highest number of branches in its home state,
Karnataka. In recent years the Bank has opened 40 branches that offer specialized
banking for industrial finance, small scale industries, agricultural (hi-tech) finance,
capital market, commercial and personal banking, asset recovery management,overseas banking, corporate banking and funds transfer.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 18 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 19/90
CASH MANAGEMENT
Presently the Bank has 1027 branches spread over in 29 states of the country
and 3 union territories. Very few banks have spread their branch network in so
many states and union territories. The Bank has highest number of branches in the
state of Karnataka (406). In recent years the Bank has opened as many as 99
specialized branches via Industrial Finance Branch (3), SSI branches (7), Capital
Market Services Branch (4), Specialized Commercial and Personal Banking
Branches (71), Asset Recovery Management Branch (7), Overseas Branch (3),
Corporate Banking Branch (1), Regional Forex cell (2).In line with the prevailing
trends, the bank has been giving greater thrust toward technological up-gradation
of its operations. As on March 2003, 356 branches have been computerized,
covering 78.26% of the Banks total business. Besides this, the Bank has also
installed ATM.s at 18 of its branches.
The Vijaya Bank has diversified its services by entering several new areas
such as credit card, merchant banking, hire purchase, leasing and electronicremittance services.
Vijaya Bank is one among the few banks in the country to take up principal
membership of VISA International and Master Card International. The driving
force behind Vijaya Banks every initiative has been its strong dedicated workforce.
INTERNATIONAL BANKING DIVISION
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 19 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 20/90
CASH MANAGEMENT
Vijaya Bank has obtained an AD License in 1971 and permanent license
after nationalization in 1980.The branches dealing in foreign business are called
“Overseas Branches” and are categorized into A,B and C Category Branches. All
the branches have SWIFT connectivity.34 designated branches have Core Banking
System (CBS).The Bank maintains 16 Nostro Accounts in ten currencies. The
vostro accounts are ten in number comprising of six private exchange houses and
four Banks. The Bank has entered in to agency arrangements with 156 Banks in 65
countries. It maintains exchange positions in 8 internationally quoted quotations.
The dealings operations handled at Forex and Treasury Management Division are
located in the Head Office.
MISSION:
“Our mission is to emerge as a prime national backed by modern technology,meeting
Customer’s aspirations with professional banking services and sustained growth
contributing to national development”
SERVICES:
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 20 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 21/90
CASH MANAGEMENT
When the bank commenced operation in 1931, the banks services primarily
focused on the growth and development of the agricultural sector. Today a variety
of specialized banking services are offered through 43 branches.
The banks expertise now extends to the prime areas of capital market, corporate
banking, Industrial finance, small scale industries and hi-tech agriculture, apart
from personal banking, Funds transfer overseas banking and asset recovery
management. Vijaya bank has been Giving mainly two types of services, those are
enlisted below:
1) DEPOSIT SCHEMES:
!) SAVING BANK ACCOUNT:
• Save as much as you can.
• Spend as little as you can.
• And see your money grow.
!!) CURRENT ACCOUNT:
• Pool your cash here, pay conveniently trough cheques.
!!!) TERM DEPOSITS:
a) recurring deposits
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 21 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 22/90
CASH MANAGEMENT
• save a definite sum every month for handsome gains with an option to vary
The monthly installments.
b) fixed deposits
• a safe way to high return, the only thing fixed is time
c) Vijaya shree units
• save lump sum and interest more than simple, stretches when you are in
need
d) jeevan nidhi deposits
• Helps you to save at your door steps, opens the gate way for bright future.
e) Vijaya cash certificates
• Your friend in need when it comes to education marriage of the benefit of
exemption from capital gains income to invest into capital gains account.
f) Vijaya raksha
• a life insurance scheme for deposit account holders
g) capital gains accounts scheme
• Income tax assessee can avail of the benefit of exemption from capital gains
income to invest into capital
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 22 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 23/90
CASH MANAGEMENT
h) v-stock invest deposits scheme
• Earn a handsome return through invest in v-stock scheme as much as you
can
2) RETAIL LENDING SCHEMES
!) Vijaya home loan
• Own your dream home/ flat at the lowest interest rate 7.5% p a in the
banking industry
!!) Vijaya wheels
• Drive your dream vehicle at the affordable PLR rate
!!!) v-equip schemes
• A friend who can always equip you with your choicest consumer durables
and improve your life style at PLR +1 rate
!v) v- trade scheme
• Avail instant bank finance against business assets at the PLR rate (presently
11.5%p a) for loans up to Rs 2 lakh and as the of PLR+2 there
v) Jewel loan
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 23 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 24/90
CASH MANAGEMENT
• a barrower friendly scheme against jewels to meet your urgent needs at the
PLR rate
V!) Loans to small road transport operators (SRTOs )
• right choice for the transport operators who want to make transport business
a success loans at PLR rate for priority sector and at PLR +1 rate for non
priority sector
\ (presently 12.5%p a)
V!!) V-rent schemes
• Take cash today at the PLR rate against tomorrows rent
V!!!) Education loan
• Avail our education loan and draw your wards life line. Loans up to Rs 4
lakh at PLR rate .loans above Rs 4 lakh at PLR + 1
!x) v-professionals scheme:
• Professional like doctors ,engineers, advocates, chartered accountants, etc
who Wish to set up their practice/business activity, in rural/semi –urban
areas can avail Loans up to Rs 15 lakh at 1% in metro urban areas
x) v-kanyadan scheme:
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 24 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 25/90
CASH MANAGEMENT
• marriages are made in heaven, but v- kanyadan helps to celebrate this on
Earth Loans at the lowest affordable interest rate of PLR-1 (presently
10.5%p a)
X!) V-mangala scheme:
• Special scheme to fulfill the dreams of working women at the lowest rate
That is PLR -1 (presently 10.5%p a)
3) OTHER SERVICE:
The bank also offers various services in the areas of credit cards, merchant
Banking, hire purchasing, and leasing and NRI (non-resident Indians) services.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 25 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 26/90
CASH MANAGEMENT
Times-norms for various banking transaction:
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 26 -
1) For cash payment
a) Trough teller
b) Trough cashier
3 to 8 minutes
8 to 15 minutes2) Receipt cash 10 to 20 minutes
For issuance of demand
raft/
Traveler cheques/ fixeddeposit receipt
15 to25 minutes
4) Payment of fixed
deposit receipt
15 to 20 minutes
5) Payment of demand
draft
10 to 20 minutes
6) Opening of an account 20 to 25 minutes7) Retirement of bills 20 to 30 minutes8) Updating of pass book 5 to 15 minutes9) Statement of accounts Within 1 days10) Collection of cheques
Local-
Out station-
1 to 2 days
5 to 7 days
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 27/90
CASH MANAGEMENT
ORGANISATION CHART
Today living up to the ideals of the founding visionaries is the management
at Vijaya bank. The management includes dedicated professionals, who bring with
then a considerable amount of expertise and experience in the banking Indus
try. Currently the banks boards of directors consist of 10 directors.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 27 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 28/90
CASH MANAGEMENT
FUNCTIONAL DEPARTMENTS OF VIJAYA BANK:
PERSONNEL DEPARTMENT
TREASURY MANAGEMENT DEPARTMENT
GENERAL ADMINISTRATION DEPARTMENT
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 28 -
PRAKASH P MALYA
Chairman and managing director
T.VALLIAPPANExecutive director
ASHOK KUMAR SHETTYDirector
ASHOK KUMAR Director
NISHANK KUMAR JAINDirector
K.VENKATAPPADirector
G.B.SINGHDirector
R.VAIDYANATHANDirector
SHANTHARAM SHETTYDirector
BRIJMOHAN SHARMADirector
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 29/90
CASH MANAGEMENT
PLANNING DEPARTMENT
CREDIT DEPARTMENT
DEPARTMENT OF INFORMATIONAL TECHNOLOGY
RISK MANAGEMENT DEPARTMENT
CENTRAL ACCOUNT DEPARTMENT
CENTRAL INSPECTION DEPARTMENT
PERSONNEL DEPARTMENT:
The personnel department frames the various policies related to the
Recruitment, training, promotion and transfer. It is also instrumental in managing
the various activities regarding the training of employees with the help of the
Officers. Training college. It also manages the promotion and transfer procedures.It also helps in the management and control of industrial relations.
TREASURY MANAGEMENT DEPARTMENT:
Treasury department has two wings- Domestic and Forex treasury.
Domestic treasury handles the security liquidity ratio. Security that is required to
maintain security liquidity ratio is handled by the department. The Forex treasury
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 29 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 30/90
CASH MANAGEMENT
maintains banks. Foreign accounts with the foreign banks called nostru accounts.
Forex treasury apart from covering merchant transactions also maintains trade in
foreign currency on behalf of bank. It also maintains mirror account of foreign
currency in all restrained bank accounts by the branches of the bank
GENERAL ADMINISTRATION DEPARTMENT:
General administration department looks after the matters related to
maintenance of head office building and other bank premises owned by bank. It
also deals with furnishing and purchase of furniture and fixtures for the bank
branches. It is also into matters relating to lease agreements of branch premises and
renewal of lease agreements and work related to printing of forms, ledgers,
statements and supply of computer stationary. It also maintains all the vehicles
owned by the bank.
PLANNING DEPARTMENT:
It prepares vision document for the bank. It also fixes targets to various
regional offices and branches to achieve corporate goals of the bank. For this
purpose the planning department follows a system of performance budgeting.
CREDIT DEPARTMENT:
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 30 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 31/90
CASH MANAGEMENT
The credit department has 4 wings- Credit policy, Credit operations, Credit
supervision & monitoring and Credit Review & Recovery. Credit policy
department frames banks. Credit policy inline with the policy laid down by RBI
and Government of India. The Credit Operations department lays down procedures
and rules and also delegates power for sanction of loans by field functionaries.
Credit supervision & monitoring provides offset audit of credit portfolio by
obtaining reports and statements from sanctioning authorities at head office. The
main purpose of the department is to ensure that the credit portfolio of the bank
continues to be healthy. Credit Review & Recovery department handles recovery
matters in respect of nonperforming assets like irregular accounts.
DEPARTMENT OF INFORMATIONAL TECHNOLOGY:
The Bank has created a .Department of Information Technology. at its
head office. The primary objective of this department is to promote computer literacy among employees, to upgrade communication and information technology
and to develop electronic banking capabilities. The Bank has initiated action for
implementing Core Banking solution, Integrated Risk Management System and
Networking of ATMs with addition of 100 ATMs.
RISK MANAGEMENT DEPARTMENT:
The Bank recognizes that management of risk is fundamental to the
business of banking. The Bank’s approach to risk management is proactive. The
primary goal of risk management is not to avoid or minimize risks inherent in
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 31 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 32/90
CASH MANAGEMENT
business but to steer them consciously and actively. The basic objective is to strike
a balance between risk and rewards.
CENTRAL ACCOUNT DEPARTMENT:
Central account department is very instrumental in consolidation of
balance sheet. It is also involved in reviewing the Management, Financial
statements with special emphasis on accounting policies and practices, compliance
of accounting standards and other legal requirements concerning financial
statements, qualifications in the audit report, compliance with stock exchange and
legal requirements concerning financial institutions, related party transactions, etc.
CENTRAL INSPECTION DEPARTMENT:
Central Inspection Department involves audit, inspection & vigilance.
Inspection of branches is one of the tools for internal control in the Bank. Based on
the finding of the Inspection, every branch is rated on a prescribed rating scale.
The rating of branches also enables the Bank to ensure that sufficient attention is
paid to the performance of those branches that have been awarded unsatisfactory
ratings. The focus of the Vigilance Department has been to constantly intervene
and upgrade the Systems & Procedures of the Bank and prevent intrusions that
spread the malaise of permissiveness.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 32 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 33/90
CASH MANAGEMENT
1.3 REVIEW OF LITERATURE
A Sound cash management is crucial to the survival and well-being of small enterprises of all types. Studies of reasons for small business failureinevitably show poor or careless cash management to be the most important cause
(see Berryman 1983, Peacock 1985 for reviews of the relevant literature). Statesthe case more succinctly. the clearest and most startling distinctions betweensuccessful and discontinued small businesses lie in their approach to the useswhich can be made of accounting information. In recognition of such findings,recent years have seen increased attention to cash management in small businesstraining and education programs and in the many books and articles written for small business.
It is not unreasonable to ponder whether this attention has had a visibleimpact on the way in which small businesses are operated. It seems appropriate toreview, and attempt to integrate, available empirical research findings concerningthe cash management practices of small business in North America. Such a reviewcan lead to improved understanding of both the research conducted to date and thecash management practices under scrutiny. Further more, it can act as a stimulus
for future research.
An additional function of this review is to identify and highlight trends in
the cash management practice of small firms. This will assist policy makers in
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 33 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 34/90
CASH MANAGEMENT
understanding the financial environment in which small firms operate and the
possible impact of the current and proposed policies directed at the small business
sector. Over the past decade there has been a significant increase in government
sponsored agencies and educational programs directed at the small business sector
and in interest in small firms, as illustrated by the President's annual report on
small business. Such attention warrants consideration as to whether these policies
have positively influenced the financial practices of small firms. This article
provides a concise summary of research evidence which indicates that financial
practice among small firms has not experienced any significant change over the
past fifteen years. This result should have impact on future policy decisions.
1.4 STATEMENT OF THE PROBLEM
Through the managing the cash organization can find out the present
financial Position with deficiency area for taking the right management actionthrough right way every organization needs to manage the cash effectively.
1.5 OBJECTIVES OF THE STUDY : Objectives may be classified into
1) PRIMARY OBJECTIVE :
a) To know the process of cash management in Vijaya bank.
2) SECONDARY OBJECTIVES:
b) TO meet the cash disbursement needs. (Payment schedule)
c) To minimize funds committed to cash balances.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 34 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 35/90
CASH MANAGEMENT
d) To find out the ways for increasing the profit earning level.
e) To find out the financial growth rate over the last 3 years.
1.6 NEED OF THE STUDY.
• Synchronization of cash flows.
• The cost associated with a short fall in the firms cash needs
• Excess cash balance costs.
• Cost associated with the establishing an operating cash management staff
and activities.
• The impact of uncertainties on cash management strategy.
1.7 SCOPE OF THE STUDY
• The study was aimed at understanding and analyzing the management of
cash in vijaya bank.
• This study based on the area of managing cash.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 35 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 36/90
CASH MANAGEMENT
• Review of project proposal provides them with suggestions and findings
to make the project effectively.
• The study reveals the different aspects.
1.8 RESEARCH METHODOLOGY OF THE STUDY:
The study is a desk top research work; it does not involve any field work. The
researcher has adopted casual research approach. Following methods has adopted
for this study
a) Consolidation of last 5 years balance sheet and income statement.
b) Comparative analysis of balance sheet and income statements.
c) Identification of parameters that is likely to reflect financial parameters.
d) Calculation of these parameters.
e) Silent conclusions and recommendations.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 36 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 37/90
CASH MANAGEMENT
DATA COLLECTION TOOL
The study is based on secondary data that is published in annual report of the bank
Consisting of audited income statement, balance sheet, auditors report and
directors Report and other quantitative figures other necessary details required for
the study were obtained from the bank
Data are mainly classified into 2 types
1) primary data
2) secondary data
Primary data
The data originally collected by an investigator or agency for the first time
for the First time for any statistical investigation and used by them in the statistical
analysis are Formed as primary data. Primary data is collected through discussion
with concerned persons like assistant Officers of finance department.
Secondary data
The data published or unpublished which have already been collected and
processed by some agency or person and take over from there and used by any
agency for their statistical work are termed as secondary data as for as secondary
agency is concerned Secondary data has been collected from annual reports,academic book and world wide web.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 37 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 38/90
CASH MANAGEMENT
1.9 LIMITATIONS OF THE STUDY
• The data collected which was available in the company records and annual
financial reports and other details
• This study is limited on 5 years
• This study is based on the data given by officials and annual reports of the
bank which are manipulated
•
The study is limited to financial department of vijaya bank • Other areas such as ratio analysis, capital budgeting, cost of capital ,risk
analysis were not looked into this study.
CHAPTER II
INTRODUCTION TO THE CASH MANAGEMENT
Cash management is one of the key areas of working capital
management. Apart from The fact that it is the most liquid current asset, cash is the
common denominator to which All current assets can be reduced because the other
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 38 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 39/90
CASH MANAGEMENT
major liquid assets, that is receivable And inventory get eventually converted into
cash. This underlines the significance of cash management.
Cash management involves preparation of cash budget. Cash budget is a
statement showing expected receipt and payment of cash during the given period
and its budget helps to forecast the balance of cash and also enable to make
arrangement of overdraft if there is shortage of cash.
MOTIVES FOR HOLDING CASH
A business enterprises has to maintain required amount of cash balance always as
such These are three motives of holding cash.
a) transaction motives
b) precautionary motives
c) speculative motivesd) Compensating motives
A) Transaction motives :
An important reason for maintaining cash balance is the transaction motives.
this refers to the holding of cash to meet routine cash requirement to finance
the transactions which a firm carries on in the ordinary cource of business. A firmenters into avarity of transactions to accomplish its objectives which have to be
paid for in the form of cash.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 39 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 40/90
CASH MANAGEMENT
b) Precautionary motives
In addition to the non-synchronization of anticipated cash inflows and
outflows in the Ordinary course of business, a firm may have to pay cash for the
purpose which cannot be predicted or anticipated. The unexpected cash needs at
short notice may be the result of
1) floods strikes and failure of important customers
2) cancellation of some order for goods as the customer is not satisfied
3) Sharp increase in cost of raw materials.
The cash balance held in reserve for such random and unforeseen
fluctuations in cash Flows are called as precautionary balances.
c) speculative motive
It refers to the desire of a firm to take advantage of opportunities which present themselves at unexpected motives and which are typically outside the
normal course of business. Or keep required amount of cash to take the
advantage of prevailing price So that short term profit can be made.
Example: 1) make purchase of raw materials at favorable prices.
2) Delay in purchase of raw materials on the anticipation of decline in prices.
d) Compensating motive:
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 40 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 41/90
CASH MANAGEMENT
One more motive to hold cash balance is to compensate banks for
providing certain Services and loans. Bank provides a variety of services to
business firms, such as clearance of Cheque, supply of credit information,
transfers of funds and so on. Usually clients are required to maintain a minimum
balance of cash at the bank since this balance cannot be utilized by the
firm for transaction purposes, the banks themselves can use the amount to earn a
return, such balances are compensating balances.
OBJECTIVES OF CASH MANAGEMENT
Mainly there are two objectives of cash management:
1. TO meet cash disbursement needs as per payment schedule or meeting
payment schedule
2. To minimize the funds locked up as cash balance or minimize funds
committed to such balances.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 41 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 42/90
CASH MANAGEMENT
Problems in managing cash
Cash is an important current asset, which is essential for the successful
operation of the operating cycle. A firm seeks to receive cash in shortest possible
time but does remain it for any longer period. Because that will entitle additional
cost to the firm. Adequate cash balance enables the firm to trade bills readily and
takes advantage of trade discounts besides, ample of cash is helpful to satisfy
unexpected advertise and exploit favorable opportunities that may come along
from time to time.
However keeping any excess stock of cash is largely wastage of resource.
Because it is non earning asset and some could be invested elsewhere to earn some
income. This means that the firm will be failing to maximize its profits at the
expenses of high liquidity.
There are four major problems in managing cash
!) Controlling inflow of cash
!!) Controlling out flow of cash
!!!) Controlling optimum investment of surplus cash
!v) control level of cash
!) Controlling inflow of cash
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 42 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 43/90
CASH MANAGEMENT
Through the preparation of cash budget the finance manager must be bale to
ensure that, there is no significant deviation in projected cash inflows and projected
cash out flows of cash .i e economizing cash
The over all purpose of the various methods is to reduce the time lag between
the moment a payment to the company is mailed and the moment the funds are
ready for redevelopment by the company.
!!) CONTROLING OF CASH OUT FLOWS
An effective control over cash out flows or cash disbursement also helps a
firm in concentrating cash and reducing financial requirement cash inflow
objectives is to accelerate the collections. While in case out flow the objective is to
show down the disbursement
The best combination of the fast collection and slow disbursement will result inmaximum availability of funds
!!!) OPTIMUM INVESTMENT OF SURPLUS CASH OR ALLOCATION
OF FUNDS BETWEEN CASH AND NEAR CASH ASSETS:
Short time highly liquid securities represent liquid earning assets, which may beconverted into cash without delay and appreciable loss.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 43 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 44/90
CASH MANAGEMENT
The basic principle of governing allocation of funds between cash and near cash
assets :
1) Marketability.
2) Safety in assets.
3) Maturity.
4) Taxability.
!v) CONTROLING LEVEL OF CASH;
One of the basic objectives of cash management is to minimize the level of
cash
balances. Strategy to achieve above objectives is
1) Preparation of cash budget.
2) Consideration of short costs.
1) preparation of cash budget;
It is device to help a firm to plan and control the use of cash it is a statement
showing the estimated cash inflows and cash out flows over the planning
horizon. It reveals the timings and size of net cash flows as well as period
during which excess cash may be available for temporary investment.
2) Consideration of short costs.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 44 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 45/90
CASH MANAGEMENT
it is the cost associated with a shortfall in the cash needs the cash forecast
presented in the cash budget would reveals of cash shortages.expences
incurred as a result of shortfall are called as “short casts.”
CASH MANAGEMNT MODELS
These models are used to determine optimum cash balance.
1) Baumol model
2) Miller ORR model
3) Orglers model
1) Baumol model: William j Baumol suggest this model. According to this model, optimum
cash level os that level Of cash where the carrying costs level is that level of cash
where the carrying costs and transaction costs are minimum
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 45 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 46/90
CASH MANAGEMENT
Carrying costs ; this is the cost of holding cash
Transaction cost : this is the cost involved in getting the marketable securities
converted into cash optimum cash level will be at that point where these two costs
are equal
2) Miller ORR model
When demand for cash is not studied and cannot known in advance, the miller
ORR model helps in determining optimum cash balance.
3) Orgler s model:
According this model optimum cash level can be determined by use of
multiple linear programming models. This consists of 3 sections.
1) Selection of the appropriate planning horizon.
2) Selection of the appropriate division variables.3) Formulating off the cash management strategy.
2.1 ANALYSIS AND INTERPRETATIONS:
Analysis and interpretation:
Collection, compilation, classification, tabulat ion and presentation of data
enables the researcher to make appropriate analysis and interpretation. Proper
analysis on the other hand, results in unambiguous observation, suggestions,
conclusions, inductions which may perhaps be the actual aid of the manager in this
decision making process
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 46 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 47/90
CASH MANAGEMENT
The process by which sense and meaning are made of the data gathered in
qualitative research, and by which the emergent knowledge is applied to clients'
problems. This data often takes the form of records of group discussions and
interviews, but is not limited to this. Through processes of revisiting and
immersion in the data, and through complex activities of structuring, re-framing or
otherwise exploring it, the researcher looks for patterns and insights relevant to the
key research issues and uses these to address the client's brief.
TABLE SHOWING THE PERCENTAGE OF CASH AND
CURRENT ASSETS:
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 47 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 48/90
CASH MANAGEMENT
Cash and current assets help to find the liquidity and bank position in
various years. And also it helps to find the bank performance. So it is the vital role
in the banking sector to managing appropriate cash and current assets in the bank
TABLE 2.1 (Rs. In Crores)
YEAR 2009-10 2010-11 2011-12
CASH 22.48 33.99 56.61CURRENT
ASSETS
201.51 301.52 390.59
PERCENTAGE 11.15% 11.27% 14.49%
Source: Bank’s Balance Sheet
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 48 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 49/90
CASH MANAGEMENT
Exhibit 2.1
INTERPRETATION:
As the above table 2.2 is shows that the bank and cash balance increasing every
year More than 10 crores simultaneously. The current assets are increasing for 100
crores every year. Hence the liquidity position of the bank is good and whichassures the customers to provide good facility.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 49 -
0
50
100
150
200
250
300
350
400
450
2009-10 2010-11 2011-12
R s i n c r o r e s
year
cash to current assets
CASH
CURRENT ASSETS
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 50/90
CASH MANAGEMENT
TABLE SHOWING THE PERCENTAGE OF CASH AND CURRENTLIABALITIES
TABLE 2.2
(Rs in crores)
YEAR 2009-10 2010-11 2011-12
CASH 22.48 33.99 56.61CURRENT
LIABALITY
112.38 119.04 166.70
PERCENTAGE 20% 28.55% 33.95%Source –
bank balance sheet
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 50 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 51/90
CASH MANAGEMENT
Exhibit 2.2
INTRPRETATION:
As above table 2.2 is showing that the cash balance with regarding to the current
liability of the bank. It indicates that the current liability is increasing every year
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 51 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 52/90
CASH MANAGEMENT
but not rapidly. While cash reserves also increasing this indicates the credit worthy
towards their customers.
TABLE SHOWING THE PERCENTAGE OF CASH AND OTHER CURRENT ASSETS
TABLE NO 2.3(Rs in
crores)YEAR 2009-10 2010-11 2011-12
CASH 22.48 33.99 56.61
OTHER CURRENTASSETS
179.03 267.53 333.98
PERCENTAGE 12.28% 12.70% 16.95%
Source -bank balance sheet
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 52 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 53/90
CASH MANAGEMENT
Exhibit 2.3
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 53 -
cash to other current assets
2009-10
2010-11
2011-12
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 54/90
CASH MANAGEMENT
INTERPRETATION:
As above table 2.3 is showing that every year cash balance increased and every
year other current assets increased rapidly because of increasing in balance with
reserve bank of India.
TABLE SHOWING THE PERCENTAGE OF CASH AND TOTAL LIABALITY
TABLE 2.4(Rs in crores)
YEAR 2009-10 2010-11 2011-12
CASH 22.48 33.99 56.61TOTAL LIABALITY 3153.4 4235.74 5618.43PERCENTAGE 0.712 0.80 1.00
Source –bank balance sheet
Exhibit 2.4
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 54 -
cash to total liabality
2009-10
2010-11
2011-12
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 55/90
CASH MANAGEMENT
INTERPRETATION:
As above table showing that the cash balance of the bank which is able to repay the
total liability was 0.7% in the year 2009-10. which it has been increased to 1% in the
current year.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 55 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 56/90
CASH MANAGEMENT
TABLE SHOWING THE PERCENTAGE OF CASH AND FIXED ASSESTS
TABLE 2.5(Rs in crores)
YEAR 2009-10 2010-11 2011-12
CASH 22.48 33.99 56.61FIXED ASSETS 202.49 186.17 507.82
PERCENTAGE 11.10% 18.25% 11.14%Source-bank balance sheet
Exhibit 2.5
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 56 -
0
100
200
300
400
500
600
2009-102010-11
2011-12
R s i n c r o r e s
yearCASH FIXED ASSETS
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 57/90
CASH MANAGEMENT
INTERPRETATION:
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 57 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 58/90
CASH MANAGEMENT
As the above table 2.5 shows that the fixed assets dealing in the year 2010-11 with 8%
and rapid increase in the current year which indicates that even cash utilized to
purchase for fixed assets.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 58 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 59/90
CASH MANAGEMENT
TABLE SHOWING THE PERCENTAGE OF CASH AND DEPOSITS
TABLE 2.6( Rs in crores)
YEAR 2009-10 2010-11 2011-12
CASH 22.48 33.99 56.61DEPOSITS 277.09 376.04 479.52PERCENTAGE 8.11% 9.03% 11.43%
Source-bank balance sheet
Exhibit 2.6
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 59 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 60/90
CASH MANAGEMENT
INTERPRETATION:
As the above table 2.6 shows that the deposit rate increased by every year 35% which
indicates that the bank is attracting more customers by providing good facilities and
good interest rate to the customers. So comparing this deposits with the cash it has
been increased 3.32% of the current year compare to the last 2 years.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 60 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 61/90
CASH MANAGEMENT
TABLE SHOWING THE PERCENTAGE OF CASH AND INVESTMENT
TABLE 2.7
YEAR 2009-10 2010-11 2011-12
CASH 22.48 33.99 56.61INVESTMENT 111.79 120.18 186.17PERCENTAGE 20.10% 28.28% 30.40%
Source bank balance sheet
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 61 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 62/90
CASH MANAGEMENT
Exhibit 2.7
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 62 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 63/90
CASH MANAGEMENT
INTERPRETATION:
The investment has been increased for every year because bank is investing indifferent groups like,
a) Government securities.
b) Other approved securities.
c) Shares
d) Debentures and bonds.
e) Investment in subsidiaries/joint ventures.
f) Others (commercial paper, units of mutual fund, preference shares, venture
capital funds)
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 63 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 64/90
CASH MANAGEMENT
TABLE SHOWING THE PERCENTAGE OF CASH AND EXPENDITURE OF THE VIJAYABANK
TABLE 2.8
YEAR 2009-10 2010-11 2011-12
CASH 22.48 33.99 56.61EXPENDITURE 246.87 276.65 405.92PERCENTAGE 9.10% 12.28% 13.94%
Source –bank balance sheet
Exhibit 2.8
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 64 -
0
50
100
150
200
250
300
350
400
450
2009-102010-11
2011-12
R s i n c r o r e s
year
cash to expenditure
CASH
EXPENDITURE
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 65/90
CASH MANAGEMENT
INTERPRETATON:
As above table show 2.8 showing that the expenditure of the bank increasing in the
year 2009-10 is 12% compare to 2010-11 and it has been increased in the year 2011-
12 at 46.72% which indicates that banks diversification or expansion of its service to the
customers.
Bank need not to spend higher amount with a view of cost cutting of current years.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 65 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 66/90
CASH MANAGEMENT
TABLE SHOWING THE PERCENTAGE OF CASH AND NET PROFIT
TABLE 2.9
YEAR 2009-10 2010-11 2011-12
CASH 22.48 33.99 56.61 NET PROFIT 126.87 331.34 361.27PERCENTAGE 17.71% 10.25% 15.66%
Source –bank balance sheet
Exhibit 2.9
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 66 -
2009-102010-11
2011-12
y e a r
Rs in crores
cash to net deposits
NET PROFIT
CASH
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 67/90
CASH MANAGEMENT
INTERPRETATION:
As the above table 2.9 shows that bank profit is increased more than double in
the year of 2010 to 2011. It indicates that banks position is good. Which fulfill the share
holders desire and also the bank is attracting new investors.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 67 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 68/90
CASH MANAGEMENT
TABLE SHOWING THE PERCENTAGE OF CASH AND BARROWINGS
TABLE 2.10
YEAR 2009-10 2010-11 2011-12
CASH 22.48 33.99 56.61
BARROWINGS 515.81 198.14 191.88PERCENTAGE 4.35% 17.15% 29.50%Source –bank balance sheet
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 68 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 69/90
CASH MANAGEMENT
Exhibit 2.10
INTERPRETATION:
As the above table showing that it indicates that barrowings rapidly from 2010 to 2011
which indicates that bank is more credit worthy. By this bank can attract more
customers and investors reserve bank of India to fulfill its necessary and emergency
requirement’s and also to maintain very good relationship with their stake holders.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 69 -
0
100
200
300
400
500
600
2009-10 2010-11 2011-12
R s i n c r o r e s
year
cash to barrowings
CASH
BARROWINGS
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 70/90
CASH MANAGEMENT
TABLE SHOWING THE PERCENTAGE OF CASH AND ADVANCES.
TABLE 2.11
YEAR 2009-10 2010-11 2011-12
CASH 22.48 33.99 56.61ADVANCES 166.64 242.23 316.89
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 70 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 71/90
CASH MANAGEMENT
PERCENTAGE 13.49% 14.03% 17.86%Source –bank balance sheet
Exhibit 2.11
INTERPRETATION:
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 71 -
0 100 200 300 400
2009-10
2010-11
2011-12
Rs in crores
y e a r
cash to advances
ADVANCES
CASH
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 72/90
CASH MANAGEMENT
As the above table 2.11 showing that bank is providing more loan and advances to
their customers in order to fulfill the customers requirement and compute with other
banks.
It is suggested to bank to make keen observation before providing the loans and
advances to their customers.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 72 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 73/90
CASH MANAGEMENT
TABLE SHOWING THE PERCENTAGE OF CASH AND TOTAL BUSINESS
TABLE 2.12
YEAR 2009-10 2010-11 2011-12
CASH 22.48 33.99 56.61TOTAL BUSINESS 447.71 622.48 799.71PERCENTAGE 5.02% 5.4% 7.0%
Source –bank balance sheet
Exhibit 2.12
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 73 -
20%
30%
50%
cash to total business2009-10 2010-11 2011-12
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 74/90
CASH MANAGEMENT
INTERPRETATION:
As the above table 2.12 shows that the rapid increase in the business for every year.
It indicates that the diversification of business and growth of the business is good by
providing good service to the customers and expectation of the business which helps
banks to grow rapidly.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 74 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 75/90
CASH MANAGEMENT
FIXED ASSETS TURN OVER RATIO
This ratio indicates the extent to which the investment infixed assets contribute
towards sales if compared with a previous period it indicates whether the investment in
fixed assets has been judicious or not the ratio is calculated as fallows
TOTAL BUSINESSFIXED ASSETS TURN OVER RATIO =--------------------------*100
FIXED ASSETS
TABLE 2.13
YEAR TOTAL BUSINESS FIXED ASSETS RATIO
2009-10 447.71 202.49 2.21%2010-11 622.48 186.17 3.34%2011-12 799.71 507.82 1.57%
Source –bank balance sheet
Exhibit 2.13
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 75 -
0%
24%
33%
43%
fixed asset turn over ratio
YEAR
2009-10
2010-11
2011-12
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 76/90
CASH MANAGEMENT
INTERPRETAION:
As the above table 2.13shows that the total business of 2009-12. it has been
increasing where as the fixed assets also increased rapidly from 2011 to 2012. it
indicates the strong stability of the bank with respective of its total business.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 76 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 77/90
CASH MANAGEMENT
TABLE SHOWING GROSS PROFIT RATIO
TABLE 2.14
YEAR GROSS PROFIT TOTAL BUSINESS RATIO
2009-10 633.01 44771.13 1.41%2010-11 696.02 62248.41 1.11%2011-12 660.08 79971.11 0.83%
Source –bank balance sheet
Exhibit 2.14
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 77 -0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
2009-10 2010-11 2011-12
GROSS PROFIT RATIO
Series1
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 78/90
CASH MANAGEMENT
INTERPRETATION:
As the above table 2.14 shows that the gross profit for the 3 years is small vary but
the total business is increasing every year which indicates that he bank is not focusing
for the profit but it is business.
A high ratio of gross profit to business is assign of good management
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 78 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 79/90
CASH MANAGEMENT
TABLE SHOWING THE NET PROFIT RATIO
This ratio indicates net margin earned by the bank it is calculated as fallows
NET PROFIT
NET PROFIT RATIO =------------------------* 100TOTAL BUSINESS
TABLE 2.15
YEAR NET PROFIT TOTAL BUSINESS RATIO
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 79 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 80/90
CASH MANAGEMENT
2009-10 126.88 44771.13 0.28%2010-11 331.34 62248.41 0.53%2011-12 361.28 79971.11 0.45%
Source –bank balance sheet
Exhibit 2.15
INTERPRETATION:
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 80 -
22%
42%
36%
NET PROFIT RATIO2009-10 2010-11 2011-12
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 81/90
CASH MANAGEMENT
As the above table 2.15 showing that the net profit increasing every year which
indicates its growth in the competition world and also it is increase in the total business
every year which indicates the service rendering to their customer is good
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 81 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 82/90
CASH MANAGEMENT
2.2 FINDINGS:
• The percentage of cash was little bit increased and contingent liability is also
increased from last 3 years.
• The gross profit is increased in the year 2010 and 2011 but in the year 2012 it
is decreased by 5%.
• The percentage of cash was little bit decreased a fixed assets are increasedcompared to last year.
• The percentage of cash is increased in last 3 years as well as the deposit is
also increased in 3 years.
• The net profit is increased from last 3 years but the percentage of cash is low
in 2006-07 and it is increased in 2008 by 34.54%
• The total business is increased from last 3 years and the percentage of cash
is also increased
• The gross profit ratio is decreasing from last 3 years.
• The net profit ratio is increased in2011 but it is decreased by 17.77% in 2012.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 82 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 83/90
CASH MANAGEMENT
2.3 SUGGESTIONS:
• Bank need not to spend for higher amount with a view of cost cutting of
current years
• Bank makes keen observation before providing the loans and advances to
their customers.
• A high ratio of gross profit to business is a sign of good management
• Bank should increase its net profit to competate the customers.
• Bank should be suggested that to provide inter bank facility.
• It is to be suggested that bank should start mutual fund facility.
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 83 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 84/90
CASH MANAGEMENT
BALANCESHEET AS ON 31-3-2011
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 84 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 85/90
CASH MANAGEMENT
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31-3-2011
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 85 -
PARTICULARS Schedule no As on 31-3-2011
1) CAPITAL ANDLIABALITIESa) capital
b) reserves and surplusc) depositsd) barrowingse) other liabilities and
provisions.
TOTAL
2) ASSETSa) Cash and balance with
reserve bank of Indiab) Balance with bank
and money at call andshort notice.
c) investmentsd) advancese) fixed assetsf) other assets
TOTAL
a) Contingent liabilities b) bills for collection
1234
5
6
789
1011
12
43351,78146315,92
3760449,9319814,00
265817,62---------------4235749,25
339971,35
167040,911201840,552422355,22
18617,7385923,49
---------------4235749,25
904802,9679220,13
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 86/90
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 87/90
CASH MANAGEMENT
reservee) interim dividendf) proposed dividend
g) balance carriedforward to balance sheet
TOTAL
4943,195071,94
61088,62
-------------82438,50
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 87 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 88/90
CASH MANAGEMENT
BALANCESHEET AS ON 31-3-2012
PARTICULARS Schedule no As on 31-3-2012
1) CAPITAL ANDLIABALITIES
a) capitalb) reserves and
surplusc) depositsd) barrowingse) other liabilities
and provisions.
TOTAL
2) ASSETSa) Cash and balance
with reserve bankof India
b) balance with bankand money at call
And short notice.c) investmentsd) advancese) fixed assets
f) other assets TOTAL
a) Contingent liabilities
1
234
5
6
789
10
11
12
43351,78
202553,24479520133191887,20
385437,44--------------5618430,99
586154,94
43581,311861732,023168921,61
50782,20
85923,49----------------4235749,25
904802,96
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 88 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 89/90
CASH MANAGEMENT
b) bills for collection 79220,13
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31-3-2012
PARTICULARS Schedule no For the year ended 31-3-2012
1) INCOMEa) interest earnedc) other income
TOTAL
2) EXPENDITUREa) interest expendedb) operating
expensesc) provisions and
contingencies
TOTAL
3) PROFIT/ LOSSa)net profit for the year.
add: transfer frominvestment fluctuation
reserve.
add: profit broughtforward
1314
15
16
398341,4743715,37
-----------------442056,84
305841,76
70127,43
29959,82---------------
405929,01
36127,83
------
60612,77
_____________________________________________________________________________ _
KARNATAKA STATE OPEN UNIVERSITY - 89 -
7/28/2019 Deepak Cah Management
http://slidepdf.com/reader/full/deepak-cah-management 90/90
CASH MANAGEMENT
Less: transferred fromvibank housing financeltd. TOTAL
4) APPROPRIATIONSa) Transfer to statutoryreserve.
b) Transfer to specialreserve in terms of sec31(1) of the income taxact.c) transfer to capitalreserve
d) transfer to generalreservee) interim dividendf) proposed dividendg) balance carriedforward to balance sheet
TOTAL
-----------------
96740,60
9031,96
2500,00
----
(463)-----
10143,88
75089,39 -------------
96740,60