Finincial Analysis of Tumkur Grain Merchants Co-Operative Bank

7/31/2019 Finincial Analysis of Tumkur Grain Merchants Co-Operative Bank

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Introduction of Co-operative Banks

History

The Co-operative banks have a history of almost 100 years. The co-operativemovement originated in the west but the importance that such banks have

assumed in India is rarely paralleled anywhere else in the world. Their role in

rural financing continues to important even today and their business in the

urban areas also has increased phenomenally in recent years mainly due to the

sharp increase in the number of primary Co-operative banks.

While the co-operative banks in the rural areas mainly finance agricultural

based activities including farming, cattle milk, hatchery, personal finance etc,along with some small scale industries and self employment driven activities,

the co-operative banks in urban areas mainly finance various categories of

people for self-employment , industries, small scale units, home finance,

consumer finance, personal finance etc. Some of the co-operative banks are

quite forward looking and have developed sufficient core competencies to

challenge state and private sector banks.

1892. Sir Fredrick Nicholson recommends the establishment of rural Co-

operative credit societies on German pattern.

1902. The finance commission recommended the introduction of co-operative

s.

1919. Under the Govt of India act, the subject of Co-operation transferred to

provinces.

1939. Mehta Bhansali committee concept of urban Co-operative banks.

1984. Multi State Co-operative societies act.

1914. Maclagen committee recommended a three tier system on which

present system of co-operative structure is based.


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Types of Co-operative Banks

There are two main categories of co-operative Banks:

a) Short term lending oriented co-operative banks within this category thereare sub categories of banks vise-state co-operative banks, district co-operative

banks and primary agricultural societies.

b) Long term lending oriented Co-operative Banks within the second category

there are land development banks at three state levels, district levels and

village.

The co-operative banking structure in India is divided into following main

categories. They are as follows.

1. Primary Co-operative Credit Society

The Primary co-operative credit society is an association of borrowers and

non-borrowers residing in a particular locality. The funds of the society are

derived from the share capital o f members as well as the society is fixed. The

loans are given to members for the purchase of cattle, fodder, fertilizers,

pesticides, implements, etc.

2. Central Co-operative Banks

These are the federations of primary credit societies in a district and are of two

types those having a membership of societies as well as individuals. The funds

of the banks consist of share capital, deposits, loans and overdrafts from state

co-operative banks and joint stocks. These banks finance member societies

within the limits of the borrowing capacity of societies. They also conduct all

the business of a joint bank.


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3. State Co-operative Banks

The State Co-operative bank is a federation of central Co-operative bank and

act as a watchdog of the co-operative banking structure in the state. Its funds

are obtained from share capital, deposits, loans and overdrafts from the

Reserve Bank of India. The State Co-operative banks lend money to central co-

operative s and not directly to farmers.

4. Land Development Banks

The Land development banks are organized in 3 tiers namely: State, Central

and Primary level and they meet the long-term credit requirements of the

farmers for development purposes the state land development bank overseas

the primary land development banks overseas the primary land development

banks situated in the districts and in the state. They are governed both by the

state government and the RBI. Recently, the supervision of land development

banks has assumed by National Bank for Agricultural and Rural Development

(NABARD). The sources of funds for these banks are the debentures subscribed

by both central and state government. These banks do not accept depositsfrom the public.

IMPORTANCE OF BANKING IN INDIA

Banks play a significant role in the economic development of the country. They

touch every aspect of the modern economy. Some of the important role

played by the banks for the development of Indian economy is as follows: -

Though the supply of many (bank money and credit money) banks exert apowerful influence on the interest rates in the money market.

Banks help trade and commerce, industry and agriculture by meeting theirfinancial requirements.

Banks direct the flow of funds into productive channels. While lendingmoney, they discriminate in favor of essential activities.


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In the modem economy the people who save and the people whoundertake investment are different hence there is a need for investments

that should help the flow of funds from the investors.

Banks mobilize the small, scattered and idle saving of the people, and makethem available for the productive purpose, i.e.; they help in the process of

capital formation

By offering attractive interest on the savings of people deposited withthem, Banks promote the habit of thrift and savings among them.

Bank provide a convenient and economic means of payment and transfer ofFunds i.e., Cheque, DD and bank drafts.

Banks help the movement of funds from regions where they are not veryuseful to regions where they can be more usefully employed.

Growth of Co-operative Banks in India

The co-operative banks have a history of almost 100 years. These co-operative

banks are an important constituent of the Indian financial system, judging by

the role assigned to them, the expectation stay is supposed to fulfill their

number, and the number of offices they operate. The co-operative

movement originated in the west, but the important that such banks have

assumed in India is rarely paralleled anywhere else in the world. Their role in

rural financing continues to be important even today and their business in the

urban areas also has increased phenomenally in recent years mainly due to the

sharp; increase in the number of primarily co-operative banks. While the co-

operative banks in rural areas mainly finance agricultural based activities small

scale industries and self employment driven activities, the co-operative banks

in urban areas mainly finance various categories of people for self-

employment, industries, small scale units, home finance, consumer finance

etc. Some of the co-operative banks are quite forward looking and have

developed sufficient core competencies to challenge state and private sector

banks.


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Recent Developments

Over the years, primary (urban) co-operatives banks have registered a

significant growth in number, size and volume of business handled. As on 31st

March 2003 there were 2,104 UCBs of which 56 were scheduled banks. About

79 percent of these are located in five states, Andhra Pradesh, Gujarat,

Karnataka, Maharashtra and Tamil Nadu. Recently the problems faced by a few

large UCBs have highlighted some of the difficulties these banks face and

policy endeavours are geared to consolidating and strengthening this sector

and improving governance.

Some Facts about Co-operatives Banks in India

Some co-operatives banks in India are more forward than many of thestate and private sector banks.

According to NAFCUB the total deposits & landings of Co-operatives Banksin India is much more than Old Private Sector Banks & also the New Private

Sector Banks.

This exponential growth of Co operative Banks in India is attributed mainlyto their much better local reach, personal interaction with customers, and

their ability to catch the nerve of the local clientele.

RESERVE BANK OF INDIA POLICIES

The RBI appointed a High Power committee in May 1999 under the chairmanof Shri K. Madhave Rao. Ex-Chief Secretary of Government of Andhra Pradesh

to review the performance Urban Co-operative Banks and to suggest necessary

measures to strengthen this sector. With reference to the terms given to the

committee identified five board objectives:

To preserve the co-operative character of urban co-operative Banks. To protect the depositors interest. To reduce the systematic risks to the financial systems.
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To put in place strong regulatory norms at the entry levels is as to sustainthe operational efficiency of urban co-operatives banks in a competitive

environment and revolve measures to strengthen the existing urban

co-operative banks structure particularly in the context of ever increasing

number of weak banks.

To align urban banking sector with the segments of banking sector in thecontext of application of prudential norms in Toto and removing the

irritants of dual control regime.

Main Provision Applicable to Co-operative Banks

The provisions of the Banking Regulation Act applicable to co-operative banks

are laid down in part 1 of the act under section 56, the main provisions of the

act applicable to co-operative bank are:

Use of the word Banks and Banking

Every co-operative bank governed by the Banking Regulating Act must use a

part it name, any of the words, Banks, Banker or Banking.

Licensing

Every co-operative bank governed by the banking regulation act must hold a

license from the RBI.

Cash Reserves

Even co-operative bank governed by the Banking Regulation Act in India must

maintain a way of cash reserve with itself or in current account with at the RBI,

or the eco-operative bank of the state concerned or with any other bank

notified by the central co-operative bank of the district concerned or partly in

cash itself and partying the above mentioned account or a cost of sum

equivalent to at least 3% of the total of its time and demand liabilities in India.


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RESTRICTIONS ON LOAN AND ADVANCES

Co-operatives on the security of own shares should grant no loan or advance.

No unsecured loan or advance should be made by the co-operative bank to anyof its directors, firms or private companies or individuals where any its

directors is interested to interested to any of the company in which the

chairman of the Board of the co-operative bank is interested.

Submission of Returns

Every co-operative bank is required to submit to the RBI before the 15th

ofevery month, a return showing the amount of cash reserve held by it on Friday

in each week of the preceding month with particulars of his time and demand

liabilities.

Every co-operatives is required to submit to the RBI a return showing all the

unsecured loans and advances granted by it during a month to companies in

which any of directors is interested, this return its be submitted before the

closer of the month succeeding the month to which the return relates.

NABARD has been identified as a principle agency for planning coordinating

and monitoring the rural credit delivery system at the district level.

Membership

The member ship of an Urban Co-operative bank is limited to the persons

residing in the city and town who are salaried employees, factory workers,

small traders, artisans etc.

Management of Urban Co-operative Bank

Management or urban co-operative bank is vested in the Board of directors.

The shareholders elect them. The final authority in all matters rests with the


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General Body, but the day to day working of the bank are looked after by the

Board of Directors and efficient staff.

Deposit mobilization

The growing public confidence in the working of Urban Co-operative Banks in

India has succeeded in attracting deposits even from the non-members. An

Urban bank generally accepts current deposits, savings deposits and fixed

deposits. Major portion of the deposits of Urban Co-operative Banks if from

the fixed deposits collected by it.

Resources

The sources of finance or Urban Co-operative Banks are from capital,

borrowed fund and from deposits. Own funds consist of paid up share capital

and accumulated profit or retained profit in various form of reserved created

out of appropriation of profit.

Accounts and Audit

The profit and loss account and the Balanced Sheet of a Co-operative bank are

required to prepare for the year ending 31st

March. A qualified Chartered

accountant must audit these accounts. Three copies of the audited profit and

loss account and balance sheet of a co-operative bank required to be

submitted to the RBI within a period of six months from 31march, which canbe extended by another six months, by the RBI.

Co-operative Principle

Co-operatives banks are organized and managed on the Principle of Co-

operation, Self-help, and mutual help. They function with the rule of one

member, one vote, function on no profit, no loss basis. Co-operative banks,


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as a principle do not pursue the goal of profit maximization. Co-operative bank

performs all the main banking function of deposit mobilization, supply of credit

and provision of remittance facilities.

Co-operative banks provide limited banking products and are functionallyspecialists in agriculture related products. However, co-operative banks now

provide housing loans also.

Principle of Co-operative Banks

There are as follows,

Voluntary and open membership Democratic Member Control Member Economies Participation Autonomy and Independence Education, Training and Information Co-operation among co-operatives Concern for Community

7 PRINCIPLES OF CO-OPERATIVE BANK

The co-operative principle are guidelines by which co-operative put their

values into practice

1st

principle = Voluntary and Open Membership

Co-operative open to all person able to use their service and willing to

accept the responsibility of membership without gender, social, racial, political

or religious discrimination.

2nd

principle = Democratic Member Control.

Co-operative are democratic organization controlled by their member, who

actively representative are accountable to the membership , in primary the Co-

operative member have equal voting rights (one member, one vote )and co-operative at other are also organized in a democratic manner.


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3rd

principle = Member Economic Participation

Contribute equitable to and democratically control the capital of their

co-operative. At least part the capital is usually the common property of the

co-operative member, usually receive limited compensation subscribed, if anyon capital subscribed as condition of membership member allocate surplus for

any of the following purpose developing their co-operatives, possible by

setting up reserve, part of which at least would be in divisible, benefiting

members in proportion to their transaction with the co-operative, the co-

operatives and supporting other activities approved by the membership.

4th

principle = Autonomy an independence

Co-operative provides education and training for the training for the member,

elected representatives, managers if they enter into agreements with other

organization, including government to raise capital from external sources they

do so in terms that ensure democratic control by their member and maintain

their co-operative autonomy.

5th

principle = Education, Training and Information

Co-operative provide education and training for their members electedrepresentative, managers and employees, so the employee so that, they can

contribute effectively to the development of their co-operative , they inform

the general public-particularly young people and opinion leaders about the

nature and benefit of co-operative.

6th

principle = Co-operation among Co-operative

Co-operative serve their member most effectively and strength the co-

operative movement by working together through local, national, regional

and international structure.

7th

principle = Concern for Community

Co-operative work for the sustainable development of their communities

through policies approved by their member.


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FEATURES OF CO-OPERATIVE BANK

Some distinguishing characteristics of the co-operative bank are as follows: Co-operative bank belongs to the money market as well as to capital

market.

Co-operative bank do banking business mainly in the agriculture and ruralsector.

Co-operative bank performs all the main banking function on deposits,mobilization of funds.

They function on no profit, no loss basis. They are organized and managed on the principles co-operation, self-help

and mutual help. They function with the rule of 1 member, 1 vote.

Co-operative bank perhaps the 1st government sponsored financial agencyin India.

Co-operative bank are subject to CRR and liquidity requirements as otherscheduled and non-scheduled banks.

Characteristic of Co-operative Banks

The character features of Co-operative banks are given as follows:

Self help and mutual help One man, one vote Motivated by service Mainly agricultural finance Government interference Regulation by dual masters Statutory audit Money market (financial market) Financial intermediaries Financial assistance by government Federal structure


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Problems of Co-operative Banks

The main problems of co-operative banks are as follows

Weak and Dormant Banks

Stiff competition by commercial banks Uneven growth Structural weakness Too much officialiisation and politicization Mounting over due and unprofessionalsied management

Finance is that business activity which is consent with the acquisition and

conservation of the capital hinds in meeting the financial hinds in meeting the

financial needs and overall objective of business enterprise.

The word finance comes indirectly from Latin word FINIS under Roman law

contract was not completed until there was a binding agreement for monetary

or credit arrangements. Finances are defined as issuance of distribution and

purchase of liabilities and equity claims issued for the purpose of generating

review producing assets.

Finance guides and regulates investment decision and expenditure and the

expenditure decision by pertain to recurring expenditure or may relate to

capital expenditure programmers or capital getting to get the best out of

available funds is the tale of financial management thus finance objective of

any corporate plan must be expressed in financial terms efficient management

of its finance it is the basic foundation of all kinds of economic activities.

Finance is the lifeblood of business: procuring and judicious of finance are the

two important activities of financial managements. Adequate funds at disposal

of business and funds of various types to carry out the business smoothly

without the fear of losing funds.


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FINANCIAL MANAGEMENT

Financial management is managerial activity consent with planning controlling

the firms financial resources, which is interest to acidification. As well as

practicing managers to understand the theory of financial management is not

merely accounting management. Besides accounting also involves, financial

decision that is how to rise funds loans are retain profit investment decision

utilization of funds is one activity are the other dividend decision quantum of

retain to the investment

The objective financial management is to find out the profitability and to

information about financial position of the concern. Two principal statement of

financial accounting are income and expenditure statement and balance sheet.

Financial management is a measuring rod for success or failure of an

organization financial management is an exclusive exercise in economic, which

includes

a) Funds managementb) Control and reporting systemc) Financial cost and management accountingd) Tax planninge) Budgets related disciplines

Importance of Financial Management

Financial management is applicable to every type of organization irrespective

of its size, kind or nature. The core of financial policy is to maximize earnings in

the long run and optimize then in the short run. The reason for placing the

finance function in the hands of top management may be attributed to any of

these following reasons. Finance is needed to promote or establish the

business acquire fixed assets; make investigations such as market surveys,

development of products.

Financial decisions are crucial to the survival of the firm. At no cost can a firm

affords threaten its solvency is affected by the flow of funds that is a result of

various financial activities, top management being in position to co-ordinate


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those activates retains financial function in its control. It also deals with

financial planning.

Another important function of financial accounting is to make the information

more useful and reliable. This is done

Functional Areas of Financial Management

Today, the changing business environment has widened the role of a financial

manager. Some of the functional areas covered in financial management are

Determining Financial Needs

This is done to ensure the availability of adequate funds. Financial needs must

be assessed for different purposes. Money may be required for initial

promotional expenses, fixed capital and working capital needs. Financial

accounting is useful to management as well as to external users such as

potential owners creditors government agencies and other interested person

making summaries, dealing with financial transaction, interpreting financial

information, communicating results of its operation. It provides information

regarding the status of the business and result of its operation. The financial

accounting is concerned with the preparation of final accounts that is P&L

account and balance sheet.

Determining sources of funds

The financial manager has to choose resources of funds. He may borrow from a

number of financial institutions and the public. A firm is committed to the

financial lenders and must meet the terms on which they offer credit.

Financial analysisIt is the evaluation and the interpretation of a firms financial position

operations and involves comparison and interpretation of accounting data.


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Optimal capital structureThe financial manager must establish an optimal capital structure and ensure

the maximum rate of return on investment. The ratio between equity and

other liabilities carrying fixed charges has to be defined. In the process, he has

to consider the operating and financial leverages of the firm.

Cost volume profit analysisFixed cost, variable coat and semi-variable cost have to be analyzed. It must be

ensured that the income of the firm will cover its variable cost. Moreover, a

firm must generate an adequate income to cover its fixed costs.

NEED FOR FINANCE IN BUSINESS

Finance in business is needed to meet both long term and short term

objectives of the organization. Following are some of the avenues where

business finance is developed to meet the firms objectives.

1. Acquisition and management of current assets for managing day to dayoperations.

2. Managing merger, reorganization, expansion, and diversification.3. To meet expectation of stake holders.4. To find the establishment of an organization, this includes the acquisition of

necessary assets for running the business

According to Guttmann and Doug all, business finance can be broadly defined

as the activity concerned with planning, raising, controlling and administering

of the funds used in the business.

Finance is the processes of organizing the flow of funds so that a business can

carry out in the most efficient manner and most its obligations as they fall due.


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TYPES OF FINANCE

Finance can be classified in to two types as follows

1. Public finance2. Private finance

Public Finance: It deals with the requirement, receipts and disbursements of

funds in the government institutions like states, local self-government and

central Government.

Private Finance: It is concerned with requirements, receipts and

disbursements of funds in case of individual, a profit seeking business

organization and non-profit organization.

FUNCTIONS OF FINANCE

Although it is different to separate finance functions from other functions, yet

the function them can be readily identified. The function of raising funds,

investing them in assets and distributing returns earned from assets to

shareholder are respectively known as financing, investment and dividend

decisions. While performing these functions, the firm attempts to balance cash

inflow and outflows. This is called liquidity decision and it is taken as one of the

most important finance functions. In short, finance is concerned with

Obtaining funds at the lowest cost making the optimal use of these funds


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PROBLEMS OF FINANCING

Every firm has its own goals aiming at a certain extent of profit generation. It is

not necessary for a firm to have the goal or profit maximization as the only

objective in the short as well a long run. The management might have its own

limitations of efficiency and capacity, levels of satisfaction and appraisal of

future, etc. The problems faced by an account dealing with finance functions

are:

Type of expenditure to which a firm should get itself involved in acommitment to spend

The volume of funds that should be committed by a firm on various type ofexpenditure

The financing pattern that is consider desirable. The ways and means by which the existing funds committed as well as non-

committed could be utilized forgetting maximum benefits for the firm.

The course of action to be taken whenever the expectation does notmaterialize and a failure is to be averted.


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TITLE OF THE STUDY

A study on Financial Statement Analysis of Tumkur Grain Merchants co-

operative bank ltd.

STATEMENT OF THE PROBLEM

Finance is regarded, as the lifeblood of the business world and one of the

major sources to meet these requirements are financial institutions. Tumkur

Grain Merchants Co-operative bank is also one of the institutions, which offers

the financial solution to meet the requirements of the different business

people.

Lending of fund is the basic function of a Co-operative bank. It constitutes the

main business of a bank. The major portion of banks funds is employed by way

of advances. Loans and advances enable trade, commerce, industry and

agricultures to meet their financial requirements. This project has been

undertaken to study the procedures involved in process in financial

performance pertaining to loan to different methods of Tumkur Grain

Merchants Co-operative Bank.

Analysis of financial performance is one of the major requirements for

planning. Tumkur Grain Merchants Co-operative bank is a private sector bank

and been analyzed its performance required by shareholders, management,

creditors, prospective investors, employees and trade unions and other

financial institutions as they are interested to know the financial soundness of

the bank.

The project analysis of the financial performance of Tumkur Grain Merchants

co-operative bank by taking 5 years into consideration i.e., 2006-2010.


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OBJECTIVES OF STUDY

To understand the financial performance of the Tumkur Grain MerchantsCo-operative bank.

To study the trend of actual performance of various financial parameterswith reference to estimated performance.

To analysis financial statements through various ratiosTo bring out strengths and weakness.

SCOPE OF THE STUDY

It was taken up to know the financial activities in Tumkur Grain Merchants

co-operative bank relating their business activities and performance of the

corporation.

The study is being done to know the financial activities of thecorporation.

Study is being done to ascertain the financial status of the firm. The study of financial performance comprise of ratio analysis, and

comparative statement analysis.

The study was made to analyze the financial performance withreference to financial statements like profit and loss account and

balance sheet with help of tables, ratios, and graphs, providingsuggestions for improving the methods and procedures followed by the

firm.


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SOURCE OF DATA

The data collecting for the study is divided in to two ways.

Primary data.

Secondary data.

Primary data

Hence, the study is in financial management .Then the chance of primary data

is less, but the interviews from the managers and the chief accountants will be

made.

Secondary data

Secondary data is from published materials that is journals, news papers,

annual report and magazines.

Method used in collecting data

The researcher has collected the data by way of reference. Researcher

referred various books Time frame of the data: Information and data collected

by researcher is a period of five financial year (2005-2006 to 2009-2010)

Tools used in analysis

The ratio analysis as used in the accounting includes at least two basic

statements which are prepared by the concern at end of every financial year

The income statements or profit and loss account

The position statements or the balance sheet

METHODOLOGY

The study is based on the discussion conducted with the officials of the bank

and guide the various data collected through annual reports, journals,

magazines, data from internet.


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LIMITATIONS OF THE STUDY

This study on ratio analysis is for the period of the 5 years only

Time factor is one the limitations of the study

The data collected information is limited neither is because of the much data

nor provided by the bank.

CHAPTER SCHEME

Following are the chapter schemes followed in the project work such as,

Chapter-1

Introduction of banks, Types of Co-operative Banks, Importance of banking in

India, Growth of Co-operative banks in India, Recent Developments, RBI

polices, Main provision applicable to co-operative Banks,7 Principle of Co-

operative Banks, Characteristic features of Co-operative Banks, financial

management, Important of financial management, need for finance in

Business, types of finance, functions of finance, problems of financing

Chapter-2

Title of the study, Statement of the problem, Objectives of study, Scope of the

study, Source of data, Tools used in analysis, Methodology, Limitation of the

study, Chapter scheme.

Chapter-3

Company profile- Original of TGMC Bank Ltd , Present Situation of the Bank,

TGMC Banks Area of Operation, Branches, Board of Management, Strategic

Alliance, Mekineseys 7s Model, Functions of TGMC Bank, Aims and Objectives of

the Bank, Products of the Bank, Other special services.

Chapter-4

Analysis and interpretation- The Table or data has to be analyzed and

interpreted.


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Chapter-5

Findings and conclusion

Chapter-6

Suggestions and recommendations

Chapter-7

Conclusion

Chapter-8

Bibliography


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Profile of Tumkur Grain Merchants Co-operative Bank Ltd.,Original of TGMC Bank Ltd:-

Tumkur Grain merchants co-operative bank ltd., was registered on 16.09.1963

by register of co-operative societies, mysore state with a registration No.270.

In 1950s and 60s Tumkur city has been developed as a major business centre

of Karnataka State. In that period, the city has so many industries and

merchant class. In this substantial growth time the merchants of the city were

facing the lack of proper banking facilities and services, as in those days a few

public sector banks were functioning in the city and that too having lot of

imbalances in their service to customers.

By observing this pathetic condition, the leading merchants of Tumkur Sri.

A.K.A Paradhwanath, Sri. T.N. Kempahonnaiah, Sri. Gubbi Huchappa, Sri. D.S.

Siddappa, Sri.P.G.Srinivasasetty, Sri.G.B.Chidanand, Sri H.N. Thammaiah, Sri.

C.L. Shekarappa. Sri.Y.Chandfa Shekarappa and Sri. N.R. Jagadish and other

leading merchants discussed and decided to open an Urban Co-operative Bank

in the city.

By an inspiration from Grain Merchants Co-operative Bank Ltd., Bangalore by

the providing Banking facilities and service to the business people of the city.

For this Sri. A.K.A.Pershwamath was elected as the Chief Promoter and the

Bank was registered on 16.09.1963 and the bank was started its business on

13.12.1963.


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The financial position of the bank as on 30.6.1964 at the end of the

First year was as under:

In the following years, the bank has marked its substantial growth in the Co-

operative Banking Sector along with the objective. Since its inception, the bank

has been recording its social obligation. In the year 1987 the bank has got its

license from the reserve bank of India, Mumbai.

Present Situation of the Bank:-

The Tumkur Grain Merchants co-operative bank Ltd., Tumkur is one of the

best managed co-operative Bank in the Karnataka State. Bank celebrated its

Silver Jubilee on 31.10.1992 and 40th

anniversary in the year 2003. The Bank

has successfully completed 47 years of service in the banking. Sector, now

serving in Tumkur Bangalore Urban, Bangalore Rural, Mysore and

Chamarajanagar Districts. Bank started operating profit from the first year of

functioning if growing to greater heights over since, gaming the glory of being

Particulars Amount (In Rs.)

No. of members 257

Share Capital 1,35,400

Deposits 1,24,600

Borrowings 86,584

Loans and Advances 3,45,344

Investments 25,000

Net Profit 967


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adjudged the Best Managed urban co-operative Bank in the State for the

year 2005-06.

TGMC Banks Area of Operation:-

1. Tumkur District2. Bangalore Urban District3. Bangalore Rural District4. Mysore District5. Chamarajanagar District

Planning to Extend the Area of Operation to the Following

Neighbouring Districts:-

1. Chitradurga2. Hassan3. Chikkamagalur4. Mandya and5. Kolar

Network of TGMC Bank Ltd:-

Tumkur Grain Merchants co-operative bank head office

B.H. Road


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Tumkur 572103

Phone no: 0816 2255905, 6541902, 6531903

Fax no: 0816 2257636

Email:[email protected]

A.B.I. License no. UBD; KA; P DT. 11.11.1987

Branches:-

1. J.C. Road Branch J.C. Road, Tumkur 572 101 Ph.No. 0816 2278244,2273360, 6531905 R.B.I. License No. UBD: KA: 912: DT. 11.11.1987.

2. S.S Puram Branch, B.H. Road, Tumkur 572103 Ph.No. 0816-227439,6531904 R.B.I. License No. UBD: KGL: 2155: DT. 16.05.1990.

3. Raghavendra Nagara Branch, S.I.T. Main road Tumkur 572103 Ph.Nos 0816-2272966, 6531907 R.B.I. License No. UBD: KGC: 50: DT. 28.03.1994.

4. Sira Road Branch, Sira Gate, Opp: S.B.M. Tumkur 572 101 Ph.No. 0816 2275090, 6531908 RBI License No. UBD: KGGL: 49 DT. 28.3.1994.

5. Tiptur Branch, Kamadhenu Complex, Police Lane Tiptur 572 201Ph.No.08134 250 423 RBI License No. UBD KGGL: 183 DT. 13.4.1996.

6. Sira Branch Sri Hanuman complex, NH 4, Sira 572 137 Ph.No.08135 276072 RBI License No. UBD: KGGL: 259 DT. 31.7.1997.

7. APMC Yard Branch 1st cross, APMC yard Tumkur 572 103 Ph.No.0816 228315, 6531906, RBI License No. UBD: KGGL; 274 DT. 12.12.1997.
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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8. Rajajinagar Brancy 999, 2nd cross ESI Road, 4th block, Rajajinagar, Bangalore.560 010, Ph No. 080 23208229, 23506278, RBI License No. UBD: KBGBL:

333 DT. 24.3.1999.

9. Mysore branch D.Devaraj Urs road, Mysore 570001, Ph.no: 0821 2448728,2430212.

10.Basaveswaranagar branch no. 322, 8th main, 3rd stage, 4th block,Basaveshwaranagar, Bangalore-560079, Ph.No: 0890-23286268, RBI License

No. UBD: KBGBL 413 DT. 09.1.2002.

11.Jayanagar branch Nol. 232/19, Pavithra south avenue 9th main, 3rd block,jayanagar, Bangalore 560011, Ph.No: 080-265302 9, RBI License No. UBD

KBGBL: 416, DT: 20.1.2002.

12.Indiranagar branch No. 421/n Krishna temple road, 1st stage, Indiranagar,Bangalore-560038, Ph.No: 0890-41269969, RBI License No. UBD: KBGBL:

493, DT: 1.4.2202.

Board of Management of the Bank

18 Board of Management

1-President 1-Vice President 16-Directors


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Organization Structure

The Bank has full-time Chief executive officer. All the Board of Directors

including president and Vice-President of the bank are serving as honorary.


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Board of Management who provide necessary vision, Decision makers and

policy formulation. C.E.O, and Assistant C.E.O. for team formulation and

implementation of strategies.

Board of Management of TGMC Bank Ltd, for the Year 2007-2012

1. Sri N.R. Jagadeesh Industrialist President of the Bank.2. Sri. K.Y. ShivannaVice President3. Sri R.J. Anantha rajaih DIRECTOR4. Sri. H.M. Divyananda Murthy DIRECTOR5. Sri. M.S. Jinesh Jain DIRECTOR6. Sri. D.D. Basavaraju DIRECTOR7. Sri. M.P. Mahesh DIRECTOR8. Sri. K.V. Srinath DIRECTOR9. D.S.RudramuniyappaDIRECTOR10.K.C. SrikantaiahDIRECTOR11.T.S. Ravi KumarDIRECTOR12.C.R. NatarajDIRECTOR13.T.S.Guruprasad DIRECTOR14.V.K. RajashekariahDIRECTOR15.S.R. Venkatarama SettyDIRECTOR


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16.G.V. Shanthish JainDIRECTOR17.Dr .G. SachidanandaDIRECTOR18.G.V. RohiniDIRECTOR19.Sudhir kumar YaragattiCHIEF EXECUTIVE OFFICER

Various Committees of TGMC Bank Ltd:-

The following sub committees are formed to carry out administrative affairs of

the bank. President N.R. Jagadish and Vice president K.Y. Shivanna are part of

it. The bank has framed 3 sub-committees are as follows:-

1. Joint Loan / Hypothecation loan and pledge loan sub-committee2. Loan on mortgage of property / machinery loan sub-committee3. Branch control / Recruitment / Investment / audit Sub-committee

Vision Statement:

WORKING FOR YOUR GROWTH.

Mission Statement:-

YOUR TRUST IS OUR ASSET

Strategic Alliance:


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T.G.M.C. Bank has a strategic alliance with the Karnataka State Co-operative

Apex Bank under Inland mutual arrangement scheme under the alliance

providing DD & cheques collections facilities all over India with the help of ICICI

bank, Bangalore.

Department/Section in TGMC Bank Ltd:-

The various Department and section at the branch level comprising

of

1. Deposit Section2. Loans and Advance Section3. Bills/clearing/D.D./Pay order Section4. Cash Section5. Savings Bank / Current Account

At the level of Administrative Office:-

Administrative Section, Establishment Section Looks after conducting Board

meeting Sub-committee meeting and staff meeting

Shares Section Accounts Section Internal Control and Inspection Section M.I.S. & M.I.P.D. Section


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Planning and Development Recovery Section E.D.P. Section Stores Section Inward & outward section P.R.O Section Funds management section Treasury Section Human Resources management Section.Each departments/section function under the control of Chief executive

Officer, who ensures effective functioning of their respective duly assisted by

D.G.M.A.G.M. and H.O. Manager etc.,


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Mekineseys 7s Model:

Every organization will have an expectation on its employees. Based on this

expectation employees will have responsibilities. There expectation of the

organization and employees responsibilities go hand for an organization to

affair its objectives, according to Mekinesey the culture of any organization has

fabric dimensions, which will become the core element of management.

1.Style:The Board is the sole authority in taking decision in such as

Loan Sanction Recruitment and Selection of Personnel

Mekineseys 7s

Model

StyleStaff

Structure System

SkillsStrategy

Shared Values


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During the meeting every branch Managers and need to show their periodic

performance of the Board. In trading, the workers work internally and

externally.

2.Skills:It refers to the ability or capacity to do a particular work or job. Every

employee must possess required skill in order to perform the required job. The

bank has its own way to improving the skills of the workers. It trains the

employed by sending them to get train from their organization.

College of agricultural Banking (CAB), Pune Regional Institute of Co-operative Management, Bangalore Karnataka state co-operative urban banks federation Ltd., Bangalore National Federation of urban co-operative banks and credit societies Ltd,

New Delhi.

National Institute of banking studies and corporate management, Noida(NCT)

Vaikunt Metha Institute of Co-operative Management, Pune.And the bank conducts programs for its employees to enhance its efficiencyin the area of:

Customer relationship Public relationship Effective communication Leadership skills etc.,


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3.System:All the branches are fully computerized and the head office. Administrative

office will collect all the informations from all the branches on daily basis the

management information system works on the basis of WAN. All the branches

of this bank inter connected with each other. After implementation of core

banking solutions to all its Branches of the bank it will be easy to take out all

the information at any movement.

4.Staff:It refers to working personnel in the organization staff refers to total No. of

employees in the organization. The size of the staff depends on the type and

nature of operation of the organization. T.G.M.C. Bank has total of 111

employees.

5.Strategy:It is nothing but set of action plans for future in order to complete with

competition, building good image and to serve better quality of service.

Main Strategies of T.G.M.C.N. Bank Areas:

Core Banking Solution (CBS)

The Banking is already entered MOU with M/s C- Edge Technologies Ltd.,

towards the upgrade the technology which is State of the art technology is

called core Banking Solutions. C-Edge technology Enterprises Ltd., is jointly

developed by M/s TCS and S.B.I Product name is called C-edge which is

exclusively developed for Urban Co-operative Banks. TGMC Bank is the first

urban Co-operative Bank in the Karnataka state to implement core banking


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solutions among 297 UCBS. After implementation of the CBS to a Branch, the

Bank is planning to provide the following services to its esteemed customers:

ATM Facility

Tele Banking Mobile Banking Retail Banking Internet Banking R.T.G.S. Facility E.F.T. Facility 7days Banking for all branches.


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6.Structure:The bank has typical organizational structure. The board of directors heads the

organization. There are 18 directors which include one provider and one Vice

President. The bank has total employees from all the 12 branches and

corporate office.

President

Vice President

Board of Directors

Sub - Committees

Joint Loan/

Hypothecation Loan/

Pled e Loan

Staff Recruitment,

Audit, and Investment

Loan on Mortgage of

Property & Machinery

loan

GM/CEO

DGM/CEO

AGM/A.C.E.O

Manager

Deputy Manager

AST. Manager

Senior Assistant

Junior Assistant

Staff/ Attenders


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7.Shared Values:This is the vision statement, which determines the goal of the organization.

The vision of the T.G.M.C. Bank is To become leader among 297 urban co-

operative banks in the Karnataka State in terms of profitability, Innovation,

Quality, better services to its customers and to obtain schedule status form the

reserve bank of India, Mumbai

Statement of the Bank:

Invest your money with us for better safety, security, Identity and

Profitability

Awards to the Bank:

The best managed urban co-operative bank in the Karnataka State for theyear 2002-03.

The best urban co-operative bank in the Karnataka state for the year 2005-06.

Business Hours:

Tumkur Tiptur/Sira Branches

Monday to Friday:- Working hours 10.30 am to 5.30pm

Transaction hours 10.30 am to 2.30 pm.

On Saturday:- Working hours 10.30 am to 2.30 pm

Transaction hours 10.30 am to 12.30 pm.

SUNDAY HOLIDAY


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Bangalore & Mysore Branches:-

Monday to Friday: - Working hours 10.00 am to 6.00 pm

Transaction hours 10.00 am to 1.00 pm

3.00 pm to 5.00 pm

On Saturday: - Working hours 10.00 am to 1.00 pm

Transaction hours 10.00 am to 12.00 pm

SUNDAY HOLIDAY

In Tumkur, S.S. Puram and Raghavendra Nagar Branches, and in Bangalore,

Rajajinagar Branch is working all the 7 days.

Functions of TGMC Bank Ltd:-

1. Accept the deposits from its members, Associate members, nominalmembers, and general public, for the purpose of the meeting the credit

requirements of the banks members.

2. Provide credit facilities to its members, Associate members and nominalmembers as short term loans, Medium term loans and long term loans to

various vital roles in finance.

3. Besides the above functions, they also carry an ordinary banking operationsare collection of D.D./Bills/Cheque, issue of pay orders/ demand drafts.

Issue of cuff cheques, safe deposit lockers, issue of bank Guarantee and an

arrangement of letter of credit facilities from the H.D.F.C. BANK OF ITS

CUSTOMERS.


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Accounting System at T.G.M.C. Bank Ltd:-

Accounts are maintained under double entry system of book keeping. Ledger is

maintained to record each transaction. The Bank is using PENTA BANK

SOFTWARE Ailment Software and now they are implementing core banking

solutions from M/s C- Edge enterprise technologies Ltd., which is jointly

developed from urban co-operative Banks. This is the first Urban Co-operative

Bank in the Karnataka State to implement state of the art technology is core

banking solutions (CBS).

Each Branch/ Department function under the control of Chief executive Officer

who ensure effective functioning of their respective Branch/ Department duly

assisted by the branch managers/ managers etc.,

Auditing System of the Bank:

The bank has good auditing control system. The bank has appointed 2 internal

Auditors to check the internal discrepancies and to strengthen the internal

affairs of the Bank accordance with Reserve bank of Indias circulars,

guidelines, norms, directions and system and procedures.

Agency, con current audit is done by external audit the EC who are

professionally qualified as charted accountancy, CISA and system audit and

control; they will issue a report as.

Quarterly basis, whatever objections raised by auditors, concerned branch

manager and will give compliance then and there itself. Statutory audit is done

by charted accountants those who are enrolled as panel auditors in the

Reserve Bank of India and statutory Auditors will be appointed by Director of

Co-operative Audit, Department of co-operation, Bangalore.


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Associated Institution of TGMC Bank Ltd:

Grain merchants Association parent body. Grain merchants charitable Trust G.M.A. Educational trust Sri. Mahalakshmi Temple TrustRaising of funds of the bank:

The bank will raise its funds by the following ways, when there is need. They

are as follows:-

Issue of Shares Accepting deposits of various kinds and by issue of cash certificates

Entrances fees

Any other means permitted under the act.

Salient Features of the Bank:-

1. Very attractive interest rates on all types of deposits. Which are more thancommercial and nationalized banks.

2. Safe Deposit lockers facilities are available.3. All Deposits up to Rs 1,00,000 is guaranteed by Deposits insurance scheme

in DICGO.

4. Prompt Quick and efficient service.


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5. Continuous increases in net profits.6. Rapid development in the state of the art technology at a faster pace.7. All deposits having nomination facilities.8. Tailor made deposits schemes to all classes of people in the society.9. Gold loan facility available.10.NRO/NRE Accounts are accepted.11.Quick cheque collection facility.12.Easy procedure and documentation to avail loans.13.Total banking transactions are fully computerized with core banking

solutions.

14.All types of loans and advances given at competitive rate of interest.15.Working hours extended for 7 days a week16.One of the leading urban co-operative banks in the Karnataka state.

Aims and Objectives of the Bank:-

To reduce cost of deposits. To expand area of operation. To increase customer satisfaction. To provide A.T.M. Facilities to customers. To provide retail banking.


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To increase net profit. To maintain personal integrity. To prove versatile banking services. To focus on recovery. To focus on NPA.

Products of the Bank:-

The bank is offering its customers most of all the facilities of the banking

industry

The products or services of the bank can be classified into two broad ways

1. Deposit Accounts.2. Loans and Advances Accounts.3. Other special services.

Deposit Account:-

The deposits are the back bone of the bank. Any bank will sustain in the

industry and comply in the market only up to that period, where the

depositors having believe about the bank. If any bank losses believe in the

minds of the depositors, if will not be having any more life in future, there are

five types of deposit products, which are briefed below:


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a.Current Accounts:-An account to take care of all business requirements with Any branch

Banking facility. These deposits contribute major portion of the bank

circulating media of exchange. Bank does not pay any interest for these

deposits. Rs 50 will be charged for those deposits as bank charges for every

half year and also charge Rs 2/- for every cheque leaf. In this account, the

customers should have to maintain a minimum balance of Rs 1,000/-

b.Savings Bank Accounts:-People with steady monthly income and serve their earnings through this

account. Bank pays interest at a nominal rate @ 3.5% and minimum balance is

Rs 500/-

c. Fixed Deposit Account:-Money is accepted for a fixed period. The rate of interest is higher than other

accounts. Minimum period is 15 days and maximum period is 10 years. Interest

can be withdrawn on monthly/ quarterly or half yearly, the longer the period

the higher interest.

d.Mangala Cash Certificate:-In this scheme the deposit will earn every quarterly on compounding interest.

Interest will accumulate quarterly minimum period is 15 months and maximum

period of deposit is 10 years. Only mature of date interest can be withdrawn

on mature date. Interest can be withdrawn along with principal amount and

accumulated compound interest.


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e.Cumulative Term Deposit:-All you need to do is to deposit a fixed amount every month, which will turn

into handsome returns at the end of the tenure.

Small fixed account of savings every month can be invested on C.T.D. Ideally

suited for salaried officials, Retail traders, savings, needed Housewives etc.,

any time you need your money back, before the due date, will be paid with

least formalities and in quick time. Minimum deposit period is months and

maximum deposit period is 10 years.

f. Non Resident Accounts:-Non Resident Indians can open Saving Bank Account, fixed deposit Account

and Mangala cash certificate account at the designated Branches.

Attractive Interest Rates on Deposits:-

Sl.No Period Rate of Interest

1 15 days to 90days 6%

2 91 days to 90 days 7%

3 181 days to 1 year 8%

4 Above 1 year to 3 years 10%

5 Above 3 years 9%

1% additional interest will be paid for Senior citizen, charitable trusts, widows,

and physically handicapped persons for above one year deposits.


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2. Loans and Advances:-

The borrowers are the Heart of every Bank. The key persons to generate the

profit of the bank are the borrowers. Today banks are not completing for

attracting the depositors, but they are competing for attracting the prompt

borrowers. Non performing asset (NPA) norms of Reserve Bank of India is the

main cause for todays healthy competition. This is helpful in throughout the

dusty loan accounts.

The bank is offering different types of loans and advances on its members. The

bank has classified its loans and advances in 3 broad categories, on the basis of

tenure of the loan. They are as follows:

Sl.no. Particulars Tenure

1 Short term loans and advances Below 1 year

2 Medium term loans and advances 1 year to 5 year

3 Long term loans and advances Above 5 years

1.Short Term Loans and Advances:-a. Joint loan and Installment joint loan:-Joint loan is given to member of the bank who is having the voting right with a

surety of another member. A member can get this loan only up to Rs 25,000\-

share amount margin should be maintained 5% on sanctioned loan amount.

Maximum loan limit of Rs 25,000/- and the tenure of this loan is 5 months.

The instalment joint loan is also is also same like joint, but here the borrower

has to repay the loan amount in 10 equal instalments.


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b. Over Draft/ Cash credit facilities:-The bank is also giving advances traders, businessmen, industries etc in the

form of over draft. Cash credit facilities to their remaining account maintainedwith the bank. This loan will be given to meet the working capital need of the

traders, businessmen, industries, on security of stocks and the immovable

property, this facility will be sanctioned after considering the working capital

requirement and the security and also the transactions made in their accounts.

The tenure of this facility will be given for a period of 1 year, if the transactions

are satisfactory to the bank and the reserve bank of India norms. As per the

RBI s norms transactions should be made at least 6 times of sanctioned OD. /

C.C. limit amount. The account for every day and charged on every month.

c. Gold Loan:-To avail this Lon, the borrower has to pledge his/her gold ornaments to the

bank. They will give the loan only after its valuation by its authorized gold

smith appraiser sanction of loan only up to 50% of its market value and tenure

of the loan will be maximum 1 year.

d. Pledge Loan:-This loan can be availed by the traders, merchants, business men, industrialists

etc., this loan will be given by pledging the goods and stocks of the borrowers,

which are related to their trade/business. Goods will be stored in their own go

downs, under the custody of the bank and goods will be stored at central/

Karnataka state ware housing go downs. Proper lien will be noted form the

concerned authorities then only loan will be sanctioned. The loan will be

sanctioned by 70% of the value of the stock, after its inspecting the quality and


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quantity of the stock. This loan will be sanctioned for a period from 3 months

to maximum 6 months.

e.

Bills discounting:-

Bank is discounting the cheques issued by the reported

corporate/organizations in favour of the account holders of the bank. This

facility is given only to the required customers of the bank. To avail this facility,

the customers should have to get prior sanction from the bank for a limited

amount. In this case, the bank is discounting the cheques presented in the

clearing, by charging the interest at the rate of 18% p.a. up to the period of the

realization of the cheques.

f. Loan on NSC and LIC bonds:-Any person holding NSC and LIC Bonds can be availed this loan, by pledging

certificates and Bonds, loan will be sanctioned against LIC Bonds only on

surrender value certificate loan will be sanctioned.

From 70% to 80% on the face value of the certificates loan tenure will be given

maximum of 1 year.

g. Deposit Loans:-Deposit loans can be availed by any depositor of the Bank, by its lien in the

bank, a depositor can avail the loan up to 90% of this deposit, and interest will

be charged 1% of interest more than their deposit interest rates.


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2.Medium Term Loans and Advances:-a. Loan on mortgage of property:-This loan will be given for the purpose of the business by mortgaging the

immovable property of the Borrower, after considering lot of legal aspects,

security repayment capacity, credit worthiness and fulfilling required

documentation procedures. Normally, this loan will be given 50-60% of the

value of the property. Valuation should be done by the banks approved panel

valuator only. In this loan the borrower should have to repay the loan in equal

instalments.

b. Hypothecation loan for vehicles:-Hypothecation loan will be sanctioned to purchase a new or an old (old not

more than 3 years) vehicle, by hypothecating the same and register the

hypothecation in the R.T.O. Normally, this loan will be sanctioned for new

vehicles from 70% to 75% on Invoice price and for the old vehicles depends

upon the vehicle condition, engine condition, age of the vehicle etc., for old

vehicles loan will be should be done by the authorized valuators and for old

vehicles, loan will be sanctioned form 50% to 60% of the valuation report. In

this loan the borrower should has to repay the loan in equal instalments.

Tenure of the loan form new vehicles will be 36 months to 60 months and for

old vehicles will be 36 months only; collateral security will be insisted by the

bank for better security.

c. Machinery Loans:-The bank is promising the small scale industries. Medium scale industries and

large scale industries also, by sanctioning loan for purchase of new or old

machineries. Additional collateral security is rendered for this loan. 75% on the


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invoice value of the new machinery and 50% on the valuation of the old

machinery loan will be sanctioned. Loan tenure will be given from 36 months

to 60 months. In this loan the borrower should has to repay the loan in equal

instalments.

d. Consumable article Loan:-The bank is promoting the small businessmen, salary earning persons and low

income group persons for purchase of consumable articles like, television

refrigerator, washing machine, computer laptop, and other electronic

equipments Normally 60 to 75% on the value of the invoice loan will be

sanctioned. Loan tenure will be from 1 year to 3 years.

e. Housing Loan:-The bank is also interested in promoting the housing sector, by granting the

loans for purchase or builds a house for the purpose of reliance; normally this

loan will be sanctioned from 50% to 60% on the project cost/estimated cost. In

this loan the borrower should has to repay the loan in equal instalments. Loan

tenure will be 60 months.

f. Staff Advances:-To encourage the work interest of the employees, the bank is grating loans to

the staff for different purpose viz: purchase / build the house purchase of

vehicles, consumable articles, education, and marriage and or for other

personal necessities. Normally, this loan will be given form 1 year and 3 years

and loan will be repaid by equal instalments.


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Instalments will be deducted from the salary of the employees. For this loan

the rate of interest will be charged at the maximum deposit rate of the bank.

I.e. now it is 10% P.A.

Apartment from this the employees are eligible to get festival advance, up to

maximum for Rs 2,000/- to meet the expenses on the occasion of festivals,

only. This advance is free of interest with repayment in 10 equal instalments.

Sl.No Particulars Rate of interest

1 Pledge loan 11.0%

2 Gold Loan and Housing loan 12.50%

3 Joint Loan, term loan and machinery 12.50

4 Hypothecation loan (commercial)

New vehicle

Old vehicle 13.50%

5 Hypothecation loan (personal/private

New vehicle

Old vehicle

12.50%

13.00%

6 Loan on mortgage of property

consumable articles loan, over draft, cash

credit loan, NSC/LIC Bonds/shares/ Bonds

and other loans

13.00%

3.Other special services:Apart from the above products, bank is also offering other services which

may attracts some bank charges. They are as follows:


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a. Issue of pay orders and demand draftsb. Issue if gift chequesc. Cheques collection facilityd. Safe deposit lockerse. Bank guarantees and letter of credit


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Computation of Trend Percentages of Tumkur Grain merchantsCo-

operative bank ltd

Objective: 1

To understand the financial performance of the Tumkur Grainmerchants Co-operative bank.

TABLE-1

Table shows the share capital from the year 2006 to 2010

(In Lakhs)

year Amount Percentage

2005-06 822 100%

2006-07 1034 125.7%2007-08 1144 139%

2008-09 889 108.1%

2009-10 1050 127.7%

Analysis

From the above table, the status of share capital on 2006 was Rs. 822 07317

which is 100% than in 2007 it was Rs.103479250 which indicate that there was

a increase 25.7% (125.7-100) of than in 2008 it was Rs.114480650 there is

increase in 39% in share capital and in 2009 was Rs. 88924900 that is 8%

(108.1-100) can be increase, and then in 2010 share capital was Rs.105024650

again it was increased 27.7% (127.7-100) for from the above.


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GRAPH-1

Graph showing share capital of Tumkur Grain Merchants

Co-operative Bank from the year 2006 to 2010

Inference

Above graph indicates, Share capital issued by Tumkur Grain merchants Co-

operative bank ltd has by 100% in 2006 and it increased by 25.7% (125.7-100)

from the 2007 to 2008 there was some percent as increased by 39% (139-100)and again it was increased by 27.7% (127.7-100) in the year 2010.

0%

20%

40%

60%

80%

100%

120%

140%

2005-06 2006-07 2007-08 2008-09 2009-10

100%

125.70%

139%

108.10%

127.70%

Percentage


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TABLE-2

Table showing Reserves funds from the year 2006 to 2010

(In Lakhs)


2006 822 100%

2007 1034 125.7%

2008 1144 135%2009 6609 804%

2010 7098 863.5%

Analysis

From the above table, the status of Reserves and funds on 2006 was

Rs.82207317 which is 100% than in 2007 was Rs.103479250 it indicates, that

there is increased by 25.7%(125.7-100) it was increase to than in 2008 it was

Rs.114480650 that is there is increase in 35% (120 -100) in reserves and funds

and in 2009 was Rs. 660942765 that is 704%(804-100) and than in 2010 it was

Rs.709824138 be increase by 763.5% (863.5-100) from the above.


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GRAPH-2

Graph showing the Reserves and funds Tumkur Grain Merchants


Inference

Above graph indicates, Reserves and funds issued by Tumkur Grain merchants

Co-operative bank ltd has 100% in 2006 and it increased by 25.7% (125.7-100)

from the 2006 to 2007 than it increased by 35%(135-100) from the 2007 to

2008 and again it increased by 704% (804-100) in the year 2008 to 2009 and

again there is increase by 763%(863-100) from the year2009to 2010.

0%

100%

200%

300%

400%

500%600%

700%

800%

900%

2005-06 2006-07 2007-08 2008-09 2009-10

100% 125.70%135%

804%863.50%

Percentage


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TABLE-3

Table showing the Deposits from the year 2007 to 2009

(In Lakhs)


2006 18617 100%

2007 20223 108.6%

2008 25072 134.6%

2009 35211 189.1%

2010 42224 226.8%

Analysis

From the above table, the status of Deposits on 2006 was Rs.1861749425

which is 100% than in 2007 was Rs.2022361139.67 it indicates, that there is

increased by 8.6%(108.6-100) it was increase to than in 2008 it was

Rs.2507213913 that is there is increase in 34.6% (134.6 -100) in Deposits andin 2009 was Rs.3521158627 that is 89.1%(189.1-100) and than in 2010 it was

Rs. 4222475305 be increase by 126.8% (226.8-100) from the above.


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GRAPH-3

Graph showing the Deposits of Tumkur Grain merchants

Co-operative bank from the year 2007 to 2009

Inference

Above graph indicates, Deposits issued by Tumkur Grain merchants Co-

operative bank ltd has 100% in 2006 and it increased by 8.6% (108.6-100) from

the 2006 to 2007 than it increased by 34.6%(134.6-100) from the 2007 to 2008

and again it increased by 89.1% (189.1-100) in the year 2008 to 2009 and again

there is increase by 126.8%(226.8-100) for the year 2009 to 2010.

0%

50%

100%

150%

200%

250%

2005-06 2006-07 2007-08 2008-09 2009-10

100%108.60%

134.60%

189.10%

226.80%

Percentage


63/110

63

TABLE: 4

Table showing the Branch Adjustments as per contra from the year

2006 to 2010

(In Lakhs)


2006 1.80 100%

2007 7.50 416.6%

2008 2.27 126%

2009 2.87 159.4%

2010 0.96 53.3%

Analysis

From the above table, the status of Bills receivable as per contra on 2006 was

Rs.287670 than in which is 100% than in 2007 was Rs.750000 that is

indicates, there was increase by 316.6%(416.6-100) than in 2008 it was

Rs.273750 and increase in 26% (126-100) and in 2009 was Rs. 280734 there is

increase that is 59.4%(159.4-100) and in the year 2010 in Branch Adjustments

was Rs.96056 decrease by 47.7% (53.3-100) from the above.


64/110

64

GRAPH-4

Graph showing the Branch Adjustments of Tumkur Grain

merchantsCo-operative Bank from the year 2006 to 2010

Inference

Above graph indicates, Branch Adjustments issued by Tumkur Grain merchants

Co-operative bank ltd has in the year 2006 was 100% and then in 2007 was

416.6% and in 2008 and again it increased by 26%(126-100) in the year 2009

again in was increase to 59.4%(159.4-100) and in the year 2010 the bank as

deceased it branch adjustment to 46.7(53.3-100) and in 2010.

0%

50%

100%

150%

200%

250%300%

350%

400%

450%

2005-06 2006-07 2007-08 2008-09 2009-10

100%

416.60%

126%159.40%

53.30%

Percentage


65/110

65

TABLE: 5

Table showing the Interest payables from the year 2006to 2010

(In Lakhs)


2006 1512 100%

2007 1638 108.3%

2008 2085 137.8%

2009 3167 209.4%

2010 3584 237%

Analysis

From the above table, the status of Interest payables on 2006 was

Rs. 151827005 which is 100% than in year 2007 was Rs.163838174 that

indicates, there is increase by 8.3%(108.3-100) in year 2008 it was

Rs.208562771 there is increase by 37.8% (137.8-100) in interest payables and

than in 2009 was Rs.316714388 that is increase by 109.4%(209.4-100) in 2010

it was Rs.358488719 there was increase by 137%(237-100).


66/110

66

GRAPH-5

Graph showing the Interest payables of Tumkur Grain merchants


Inference

Above graph indicates, Interest payables issued by Tumkur Grain merchants

Co-operative bank ltd has in the year 2006 it was 100%, and it increase by

8.3% (108.3-100) from the 2006 to 2007 than again there was increase by

37.8%(137.8-100) from the 2007 to 2008 than in it increase by 109.4% (209.4-

100) and increased by 137% (237-100) in the year 2009 to 2010

0%

50%

100%

150%

200%

250%

2005-06 2006-07 2007-08 2008-09 2009-10

100%108.30%

137.80%

209.40%

237%

Percentage


67/110

67

TABLE-6

Table showing the Other Liabilities from the year 2006 to 2010

(In Lakhs)


2006 161 100%

2007 421 261%

2008 264 163.9%

2009 3543 2200%

2010 4411 2739.7%

Analysis

From the above table, the status of Other Liabilities on 2006 was Rs.16180552

which is 100% than in 2007 was Rs.4212979.27 that is indicates there was

increase by 161%(261-100), 2008 it was Rs.26415752 there is increase in

63.9% (163.9-100) in Other Liabilities and in 2009 was Rs.354372110 that is

2100% (2200-100) can be increase and in 2010 the other liabilities was

Rs.441128101 means there was increase by 2639.7%(2739.7-100) from the

above.


68/110

68

GRAPH-6

Graph showing the Other Liabilities of Tumkur Grain merchantsCo-

operative Bank from the year 2006 to 2010

Inference

Above graph indicates, Other Liabilities issued by Tumkur Grain merchants Co-

operative bank ltd has 100% in 2006, and it was decreased by 161% (261-100)

from the 2007 and then in 2008 was by 63.9% (163.9-100) it increase by

2100% (2200-100) in the year 2009 and again by 2639%(2739-100) increased

in the year of 2010.

0%

500%

1000%

1500%

2000%

2500%

3000%

2005-06 2006-07 2007-08 2008-09 2009-10

100%261% 163.90%

2200%

2739.70%

Percentage


69/110

69

TABLE: 7

Table showing the Total Liabilities from the year 2006 to 2010

(In Lakhs)


2006 20275 100%

2007 21146 104.2%

2008 27267 134.4%

2009 46901 231.3%

2010 55347 272.9%

Analysis

From the above table, the status of Total Liabilities on 2006 was

Rs. 2027512894 which is 100% than in 2007 was Rs. 2114618094 that is

indicates, there is increase by 4.2%(104.2-100) in 2008 it was Rs. 2726756204

it was increased by 34%(134-100) and in 2009 was Rs. 4690143536 that is

131.3% (231.3-100) in total liabilities and in 2010 was Rs. 5534761570 it was

172.9(272.9-100) can be increase from the above.


70/110

70

GRAPH-7

Graph showing the Total Liabilities of TumkurGrain merchantsCo-


Inference

Above graph indicates, Total Liabilities issued by Tumkur Grain merchants Co-

operative bank ltd has in the year 2006 it was 100%, and it increase by 4.2%

(104.2-100) from the 2006 to 2007 and there was increase in by 34.4%(134.4-

100) from 2007 to 2008 and again it increased by 131.3% (231.3-100) in the

year 2008 to 2009 and there was increased by 172.9%(272.9-100) from the

year 2009 to 2010.

0%

50%

100%

150%

200%

250%

300%

2005-06 2006-07 2007-08 2008-09 2009-10

100% 104.20%

134.40%

231.30%

272.90%

Percentage


71/110

71

TABLE-8

Table showing Net Profit after Tax for the year 2006 to 2010

(In Lakhs)

Year Amount Percentage

2006 916 100%

2007 630 68.7%

2008 773 84.3%

2009 647 70.6%

2010 563 61.4%

Analysis

From the above table, the status of Net Profit After Tax on 2006 was

Rs.9164568 which is 100% than in 2007 was Rs.63078857 that is indicates

there is decrease in 31.3%(68.7-100) than in 2008 it was Rs.77364098 there

was decrease by 15.7% (84.3-100) and in 2009 was Rs.64745133 that indicate

there more decrease by 29.4% (70.6-100) in Net Profit After Tax , and again

there was decrease that is 38.6% (61.4-100) in 2010 was Rs.56309375 from the

above.


72/110

72

GRAPH-8

Graph showing the Net Profit after Tax of Tumkur Grain merchants

Co-operative bank from the year 2006 to 2010

Inference

Above graph indicates, Net profit after issued by Tumkur Grain merchants Co-

operative bank ltd has in the year 2006 it was 100%, and in the year

2007,2008,2009,2010 the bank facing the decrease in the Net profit by 31.3%,

25.7% 29.4%, and 38.6%.

0%

20%

40%

60%

80%

100%

2005-06 2006-07 2007-08 2008-09 2009-10

100%

68.70%

84.30%

70.60%

61.40%

Percentage


73/110

73

Computation of Trend Percentages of Assets of Tumkur Grain

merchantsCo-operative bank Ltd

TABLE: 9

Table Showing the Cash from the year 2006 to 2010

(In Lakhs)

years Amount Percentage

2006 618 100%

2007 980 158.5%

2008 1066 172.4%

2009 1643 265.8%

2010 2386 386%

Analysis

From the above table, the status of Cash on 2006 was Rs.61838637 which is

100% than in 2007 was Rs.98064201 that is indicates there was decrease by

58.5%(158.5-100), 2008 it was Rs.106668704 there is increase in 72.4% (172.4-

100) in Cash and in 2009 was Rs.164397411 that is 165.8% (265.8-100) can be

increase and again in 2010 the Cash was Rs.238646786 means there was

increase by 286%(386-100) from the above.


74/110

74

GRAPH-9

Graph showing the Cash of Co-operative from the year 2006 to

2010

Inference

Above graph indicates, Cash issued by Tumkur Grain merchants Co-operative

bank ltd has 100% in 2006, and it was increased by 58.5% (158.5-100) from the

2007 and then in 2008 was by 72.4% (172.4-100) it increase by 165.8% (265.8-

100) in the year 2009 and again by 286%(386-100) increased in the year of

2010.

0%

50%

100%

150%

200%

250%

300%

350%

400%

2005-06 2006-07 2007-08 2008-09 2009-10

100%

158.50%172.40%

265.80%

386%

Percentage


75/110

75

TABLE-10

Table Showing the Fixed Deposits from the year 2006 to 2010

(In Lakhs)

Year Amount Percentage

2006 18617 100%

2007 20223 108.6%

2008 25072 134.6%

2009 48202 258.9%

2010 35632 191.3%

Analysis

From the above table, the status of Fixed Deposits on 2006 was

Rs.1861749425 which is 100% than in 2007 was Rs.2022361139 it indicates,

that there is increased by 8.6%(108.6-100) than in 2008 it was Rs.2507213913

that there is increase in 34.6% (134.6 -100) in Fixed Deposits and in 2009 was

Rs.48720223314 that is 158.9%(258.9-100) and than in 2010 it was

Rs.3563224758 be increase by 91.3% (191.3-100) from the above.


76/110

76

GRAPH-10

Graph showing the Fixed Deposit of Tumkur Grain merchantsco-


Inference

Above graph indicates, Fixed deposit issued by Tumkur Grain merchants Co-



100) from 2007 to 2008 and again it increased by 158.9% (258.9-100) in the

year 2008 to 2009 and there was increased by 91.3%(191.3-100) from the year

2009 to 2010.

0%

50%

100%

150%

200%

250%

300%

2005-06 2006-07 2007-08 2008-09 2009-10

100% 108.60%

134.60%

258.90%

191.30%

Percentage


77/110

77

TABLE-11

Table showing Loans and Advances from the year 2006 to 2010

(In Lakhs)


2006 19678 100%

2007 12348 62.7%2008 12966 65.8%

2009 27951 142%

2010 30362 154.2%

Analysis

From the above table, the status of Loans and Advances on 2006 was Rs.

1967829999 which is 100% than in 2007 was Rs. 1234820894 it indicates, that

there is decreased by 38.3%(62.7-100) than in 2008 it was Rs.1296652487

there is decrease by 34.2% (65.8 -100) in Loans and Advances and in 2009 was

Rs.2795185702 that is 42%(142-100) and than in 2010 it was Rs.3036270152

be increase by 54.2% (154.2-100) from the above.


78/110

78

GRAPH-11

Graph showing the Loans and Advances of Co-operative from the

year 2006 to 2010

Inference

Above graph indicates, Fixed deposit issued by Tumkur Grain merchants Co-

operative bank ltd has in the year 2006 it was 100%, and it decrease by 37.3%

(62.7-100) from the 2006 to 2007 and there was decrease in by 34.2%(65.8-

100) from 2007 to 2008 and again it increased by 142% (142-100) in the year

2008 to 2009 and there was increased by 54.2%(154.2-100) from the year

2009 to 2010.

0%

20%

40%

60%

80%

100%

120%

140%

160%

2005-06 2006-07 2007-08 2008-09 2009-10

100%

62.70% 65.80%

142%154.20%

Percentage


79/110

79

TABLE-12

Table showing Investments from the year 2006 to 2010

(In Lakhs)

Years Amount Percentage

2006 1046 100%

2007 990 94.6%

2008 1390 132.8%

2009 7730 739%

2010 12446 1189.%

Analysis

From the above table, the status of Investments on 2006 was Rs. 104660000

which is 100% than in 2007 was Rs.99050000 it indicates, there is decreased

by 5.4%(94.6-100) than in 2008 it was Rs.139050000 there is increase by

32.8%(132.8-100) in Investments and in 2009 was Rs.773075620 that is

639%(739-100) and than in 2010 it was Rs.1244600214 be increase by 1089%

(1189-100) from the above.


80/110

80

GRAPH-12

Graph showing the Investments of Tumkur Grain Merchants Co-

operative from the year 2006 to 2010

Inference

Above graph indicates, Investments issued by Tumkur Grain merchants Co-



100) from 2007 to 2008 and then there is increased by 639% (739-100) in the

year 2008 to 2009 and there was increased by 1089%(1189-100) from the year

2009 to 2010.

0%

200%

400%

600%

800%

1000%

1200%

2005-06 2006-07 2007-08 2008-09 2009-10

100% 94.60% 1

Documents

Finincial Analysis of Tumkur Grain Merchants Co-Operative Bank