OUTLINE OF THE CHAPTER - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/77951/12/12_chapter 5.p… · (Source: Annual Reports of BCCB of last 10 Years) EPS of BCCB `40.92 per

Financial Performance Analysis Page | 164

OUTLINE OF THE CHAPTER

1. Introduction

2. Financial performance of ‘The Bhuj Commercial Co-operative

Bank Ltd.’ (BCCB)

3. Financial performance of ‘The Kalupur Commercial Co-

operative Bank Ltd.’ (KCCB)

4. Financial performance of ‘The Rajkot Commercial Co-

operative Bank Ltd.’ Rajkot (RCCB)

5. Financial performance of ‘The Jivan Commercial Co-

operative Bank Ltd.’ (JCCB)

6. Financial performance of ‘The Vijay Commercial Co-

operative Bank Ltd.’ (VCCB)

7. Financial performance of ‘The Commercial Co-operative

Bank Ltd. Jamnagar’ (TCCBLJ)

8. Financial performance of ‘The Market Yard Commercial Co-

operative Bank Ltd.’ (MCCB)

9. Financial performance of ‘The Chanasma Commercial Co-

operative Bank Ltd.’ (CCCB)

10. Financial performance of ‘The Srvodaya Commercial Co-

operative Bank Ltd.’ (SCCB)

11. Financial performance of ‘The Randheja Commercial Co-

operative Bank Ltd.’ (TRCCBL)

12. Financial performance of ‘The Vallabh Vidhyanagar

Commercial Co-operative Bank Ltd. (VVCC)

13. Financial performance of ‘The Junagadh Commercial Co-

operative Bank Ltd. (TJCCBL)

14. Financial performance of ‘The Porbandar Commercial Co-

operative Bank Ltd. (TPCCBL)

15. Financial performance of ‘The Baroda Commercial Co-

operative Bank Ltd. (TBCCBL)

16. Conclusion


1. INTRODUCTION:

Theoretical aspect of financial performance; its importance, limitations and various

techniques has already been discussed by the researcher in the first chapter. In this chapter

the researcher going to use the techniques of financial performance analysis to measure the

financial performance of selected commercial co-operative banks of Gujarat state. Various

techniques like ratio analysis, common size analysis, trend analysis and other statistical

techniques are included in this chapter. This chapter includes financial performance of each

selected commercial co-operative bank of Gujarat state and then after comparative analysis

of financial performance of selected CCOBs and testing of hypothesis included in 6th

chapter.

2. FINANCIAL PERFORMANCE OF ‘THE BHUJ COMMERCIAL CO-

OPERATIVE BANK LTD.’ (BCCB):

2.1 Ratio Analysis of BCCB:

Ratio means a relation between two figures present in percentage, times, proportion

etc. If such figures taken from financial statements like Profit and Loss accounts or Balance

Sheets or other parts of accounting records of business units it is known as ‘Accounting

Ratios.’ Various accounting ratios are use to measure various position of the business like

profitability, liquidity, solvency and overall efficiency. Apart from this different kinds of

ratios are to be calculated according to the requirements of business unit or types of

business. In banking businesses following Ratios are normally calculated to measure the

financial performance of a bank.

(1) Credit Deposit Ratio, (2) Capital Adequacy Ratio, (3) Interest Income Ratio, (3) Interest

income as percentage of average working capital Ratio, (4) Interest expenses against total

expenses ratio, (5) Interest expenses as percentage of average working capital, (6) Total

Profit and Average Working capital ratio, (7) Net Profit and Average Working capital Ratio,

(8) Net profit Net Assets Ratio, (10) Employees cost and Average Working Capital Ratio,

(11) Cost of Deposit, (12) Business Per Employee, (14) Total Profit Per Employee, (15)

Deposit Per Employee, (15) Advance Per Employee, (16) Earnings per share etc.

(I) Credit Deposit Ratio (CDR):

Formula:


Table 5.1

Table showing CDR of BCCB of last 10 years

Year Total Advances

(` in Lakhs)

Total Deposit

(` in Lakhs)

CDR

(%)

2003-04 1692.58 2899.79 58.37

2004-05 1510.92 2709.42 55.77

2005-06 1375.55 2496.25 55.11

2006-07 1415.81 2356.29 60.09

2007-08 1349.84 2617.64 51.57

2008-09 1469.52 2672.30 54.99

2009-10 1505.94 2948.76 51.07

2010-11 1537.98 2990.02 51.44

2011-12 1633.88 3532.62 46.25

2012-13 1903.48 3868.05 49.21

Average 53.39 (Source: Annual Reports of BCCB of last 10 Years)

From the above table it is clear that bank’s credit deposit ratio of remain between 49

to 60 percent. Highest CDR of the bank found in the year 2006-07; 60.09 percent and

lowest CDR found in the year 2011-12; 46.25 percent. Average of last 10 years CDR was

53.39 percent. It indicates BCCB uses its deposit on an average 53 percent to give advances

to its customers.

(II) Capital Adequacy Ratio (CAR)/Capital to Risk (Weighted) Assets Ratio (CRAR):

Formula:

Table 5.2

Table showing CAR of BCCB of last 10 years

Years Tier I Capital

(` in Lakhs)

Tier II Capital

(` in Lakhs)

Total TI+TII

(` in Lakhs)

RWA

(` in Lakhs)

CAR

(%)

2003-04 406.69 225.92 632.61 1713.39 36.92

2004-05 417.01 208.5 625.51 1719.19 36.38

2005-06 381.78 23.58 405.36 1886.46 21.49

2006-07 396.19 14.31 410.5 1882.89 21.80

2007-08 406.41 23.05 429.46 1844.75 23.28

2008-09 414.96 21.75 436.71 1740.48 25.09

2009-10 435.64 25.18 460.82 2014.27 22.88

2010-11 476.61 24.68 501.29 1974.18 25.39

2011-12 560.13 27.07 587.2 2166.16 27.11

2012-13 603.5 24.52 628.02 1961.61 32.02

Average 27.24

(Source: Annual Reports of BCCB of last 10 Years)


This ratio is used to protect depositor’s interest and promote the stability and

efficiency of financial systems around the world. Objectives of capital adequacy policy

safety, stability and soundness of individual banks and banking system & fair and consistent

in application to banks; competitive level playing fields for banks. According to RBI and

Basel committee report minimum CAR require for any UCB is 9 percent after 2005. Above

table shows BCCB has minimum CAR 21.49 percent and maximum 36.92 percent i.e.

BCCB has maintained its CAR more than required rate during last 10 years period of the

study. Average CAR of the banks found 27.24 percent of last 10 years. It indicates financial

soundness of the bank during last 10 years.

(III) Interest Income to Total Income Ratio:

Formula:

Table 5.3

Table showing IITIR of BCCB of last 10 years

Year Total Interest

(` in Lakhs)

Total Income

(` in Lakhs)

IITIR

(%)

2003-04 534.92 561.66 95.24

2004-05 585.98 617.81 94.85

2005-06 394.19 429.20 91.84

2006-07 355.18 384.13 92.46

2007-08 333.21 362.13 92.01

2008-09 339.68 373.12 91.04

2009-10 387.29 430.02 90.06

2010-11 373.90 415.84 89.91

2011-12 398.38 436.21 91.33

2012-13 479.66 523.41 91.64

Average 92.04

(Source: Annual Reports of BCCB of last 10 Years)

Above table shows that out of the total income of BCCB on an average 92.04

percent income was interest income during last ten years. Highest IITIR found 95.24

percent in the year 2003-04 and lowest ratio found 89.91 percent in the year 2010-11.

(IV) Interest Expenses to Total Expenses Ratio:

Formula:


Table 5.4

Table showing IETER of BCCB of last 10 years

Year Total Interest Exp.

(` in Lakhs)

Total Expenses

(` in Lakhs)

IETER

(%)

2003-04 340.10 480.08 70.84

2004-05 307.21 566.17 54.26

2005-06 287.74 386.73 74.40

2006-07 239.94 347.60 69.03

2007-08 204.34 329.51 62.01

2008-09 193.29 338.03 57.18

2009-10 218.58 392.37 55.71

2010-11 209.63 363.79 57.63

2011-12 209.84 382.85 54.81

2012-13 261.03 452.37 57.70


In the above table showing IETER highest ratio is 74.40 percent and lowest ratio is

54.26 percent in the year 2005-06 and 2004-05 respectively. Average IETER of 10 years

was found 61.36 percent i.e. on an average during last 10 years out of total expenses of bank

around 61 percent portion of total expenses was interest expense.

(V) Net Profit to Net Assets Ratio:

Formula:

Table 5.5

Table showing NPNAR of BCCB of last 10 years

Year Net Profit

(` in Lakhs)

Net Assets

(` in Lakhs)

NPNAR

(%)

2003-04 81.58 661.25 12.34

2004-05 51.64 914.77 5.64

2005-06 42.47 932.84 4.55

2006-07 36.53 975.96 3.74

2007-08 32.62 985.63 3.31

2008-09 35.09 1033.20 3.40

2009-10 37.65 1054.03 3.57

2010-11 52.05 1034.28 5.03

2011-12 53.36 1092.40 4.88

2012-13 71.03 1142.75 6.22



During last 10 years maximum NPNAR was found 12.34 percent and minimum

NPNAR was 3.31 percentages. On an average bank has maintained it NPNAR 5.27

percentage during last 10 years.

(VI) Earnings per Share:

Formula:

Table 5.6

Table showing EPS of BCCB of last 10 years

Year Net Profit

(`)

No. of Equity

Share

EPS

(`)

2003-04 8158149 107613 75.81

2004-05 5163768 107614 47.98

2005-06 4247129 107614 39.47

2006-07 3653112 107614 33.95

2007-08 3262260 107614 30.31

2008-09 3508817 108234 32.42

2009-10 3764992 110077 34.20

2010-11 5204980 124668 41.75

2011-12 5336169 188130 28.36

2012-13 7103247 193773 36.66


EPS of BCCB `40.92 per share on an average during last 10 years. Maximum

EPS earned by the bank in the year 2003-04 `75.81 per share and minimum EPS earned by

the bank `28.36 in the year 2011-12. It indicates good earning capacity of the bank.

(VII) Interest Income to Average Working Fund Ratio:

Formula:

Working Fund = Total assets – Bills Receivable


Table 5.7

Table showing IIAWFR of BCCB of last 10 years

Year Total Interest

(` in Lakhs)

AWF

(` in Lakhs)

IIAWFR

(%)

2003-04 534.92 3995.48 13.39

2004-05 585.98 4093.93 14.31

2005-06 394.19 3996.20 9.86

2006-07 355.18 3837.67 9.26

2007-08 333.21 3875.74 8.60

2008-09 339.68 4039.19 8.41

2009-10 387.29 4230.98 9.15

2010-11 373.90 4388.06 8.52

2011-12 398.38 4686.88 8.50

2012-13 479.66 5172.62 9.27


During last 10 year shown in the above table highest interest income to average

working fund ratio was 14.31 percent and lowest ratio was found 8.41 percent in the year

2004-05 and 2008-09 respectively. On an average bank has 9.93 percent ratio of interest

income to average working fund annually.

(VIII) Interest Expenses to Average Working Fund Ratio:

Formula:

Table 5.8

Table showing IEAWFR of BCCB of last 10 years


(` in Lakhs)

AWF

(` in Lakhs)

IEAWFR

(%)

2003-04 340.10 3995.48 8.51

2004-05 307.21 4093.93 7.50

2005-06 287.74 3996.20 7.20

2006-07 239.94 3837.67 6.25

2007-08 204.34 3875.74 5.27

2008-09 193.29 4039.19 4.79

2009-10 218.58 4230.98 5.17

2010-11 209.63 4388.06 4.78

2011-12 209.84 4686.88 4.48

2012-13 261.03 5172.62 5.05



During last 10 year highest interest expenses to average working fund ratio was

found 8.51 percent and lowest ratio is 4.48 percent in the year 2003-04 and 2011-12

respectively. On an average bank has 5.90 percent ratio of interest expenses to average

working fund annually. Interest income ratio average 9.93 percent against it average interest

expense ratio was 5.90 percent of last ten years of bank indicate that bank has earning gap

of interest 4.04 percent on average working fund.

(IX) Gross Profit to Average Working Fund Ratio:

Formula:

Table 5.9

Table showing GPAWFR of BCCB of last 10 years

Year Gross Profit

(` in Lakhs)

AWF

(` in Lakhs)

GPAWFR

(%)

2003-04 143.58 3995.48 3.59

2004-05 251.64 4093.93 6.15

2005-06 52.47 3996.20 1.31

2006-07 59.53 3837.67 1.55

2007-08 62.10 3875.74 1.60

2008-09 76.82 4039.19 1.90

2009-10 69.54 4230.98 1.64

2010-11 76.80 4388.06 1.75

2011-12 77.88 4686.88 1.66

2012-13 91.38 5172.62 1.77


Above table show that the highest GPAWFR of the bank 6.15 percent in the year

2004-05 and lowest ratio found 1.31 percent in the year 2005-06. It was 3.59 percent in the

year 2003-04. From 2005-06 to 2012-13 GPAWFR remains on an average more than 1

percent and less than 2 percent. Average GPAWFR of the banks of last 10 years found 2.29

percent.

(X) Net Profit to Average Working Fund Ratio:

Formula:


Table 5.10

Table showing NPAWFR of BCCB of last 10 years

Year Net Profit

(` in Lakhs)

AWF

(` in Lakhs)

NPAWFR

(%)

2003-04 81.58 3995.48 2.04

2004-05 51.64 4093.93 1.26

2005-06 42.47 3996.20 1.06

2006-07 36.53 3837.67 0.95

2007-08 32.62 3875.74 0.84

2008-09 35.09 4039.19 0.87

2009-10 37.65 4230.98 0.89

2010-11 52.05 4388.06 1.19

2011-12 53.36 4686.88 1.14

2012-13 71.03 5172.62 1.37


Above table shows that the highest NPAWFR of the bank is 2.04 percent in the year

2003-04, and lowest 0.84 percent in the year 2007-08. On an average 1.16 percent ratio of

NPAWF remained during last 10 years.

(XI) Employee Cost to Average Working Fund Ratio:

Formula:

Table 5.11

Table showing ECAWFR of BCCB of last 10 years

Year Employee exp.

(` in Lakhs)

AWF

(` in Lakhs)

ECAWFR

(%)

2003-04 32.57 3995.48 0.82

2004-05 31.81 4093.93 0.78

2005-06 44.65 3996.20 1.12

2006-07 40.51 3837.67 1.06

2007-08 45.50 3875.74 1.17

2008-09 48.79 4039.19 1.21

2009-10 53.57 4230.98 1.27

2010-11 74.72 4388.06 1.70

2011-12 88.74 4686.88 1.89

2012-13 84.29 5172.62 1.63



From the above ratios of employee cost to average working fund of last 10 years of

the bank it is clear that average employee’s cost of the bank on average working fund was

remained 1.27 percent annually. During the last ten years period of the study highest

ECAWFR found in the year 2011-12; 1.89 percent and lowest ratio found in the year 2004-

05; 0.78 percent.

(XII) Cost of Deposit Ratio:

Formula:

Table 5.12

Table showing CoDR of BCCB of last 10 years


(` in Lakhs)

Average Deposits

(` in Lakhs)

CoDR

(%)

2003-04 340.10 2880.18 11.81

2004-05 307.21 2818.56 10.90

2005-06 287.74 2613.45 11.01

2006-07 239.94 2436.07 9.85

2007-08 204.34 2495.29 8.19

2008-09 193.29 2692.39 7.18

2009-10 218.58 2867.50 7.62

2010-11 209.63 2996.48 7.00

2011-12 209.84 3288.08 6.38

2012-13 261.03 3727.14 7.00


Above table 5.12 is showing Cost of deposit ratio of the BCCB of last 10 years from

2003-04 to 2012-12. Percentages of Interest expenses on Average deposits during last 10

years was found maximum 11.81 percent in the year 2003-04 and minimum 6.38 percent in

the year 2011-12. Average cost of deposits of last 10 years of the bank was found 8.69

percent.


(XIII) Summary of the above Ratios:

Table 5.13

A summary of all the ratios of BCCB Calculated above

Yea

rs

CD

R (%

)

CA

R (%

)

IITIR

(%)

IET

ER

(%)

NP

NA

R (%

)

EP

S (`

)

IIAW

FR

(%)

IEA

WF

R (%

)

GP

AW

FR

(%)

NP

AW

FR

(%)

EC

AW

FR

(%)

CO

DR

(%)

03-04 58.37 36.92 95.24 70.84 12.34 75.81 13.39 8.51 3.59 2.04 0.82 11.81

04-05 55.77 36.38 94.85 54.26 5.64 47.98 14.31 7.50 6.15 1.26 0.78 10.90

05-06 55.11 21.49 91.84 74.40 4.55 39.47 9.86 7.20 1.31 1.06 1.12 11.01

06-07 60.09 21.80 92.46 69.03 3.74 33.95 9.26 6.25 1.55 0.95 1.06 9.85

07-08 51.57 23.28 92.01 62.01 3.31 30.31 8.60 5.27 1.60 0.84 1.17 8.19

08-09 54.99 25.09 91.04 57.18 3.40 32.42 8.41 4.79 1.90 0.87 1.21 7.18

09-10 51.07 22.88 90.06 55.71 3.57 34.20 9.15 5.17 1.64 0.89 1.27 7.62

10-11 51.44 25.39 89.91 57.63 5.03 41.75 8.52 4.78 1.75 1.19 1.70 7.00

11-12 46.25 27.11 91.33 54.81 4.88 28.36 8.50 4.48 1.66 1.14 1.89 6.38

12-13 49.21 32.02 91.64 57.70 6.22 36.66 9.27 5.05 1.77 1.37 1.63 7.00

Avg. 53.39 27.24 92.04 61.36 5.27 40.09 9.93 5.90 2.29 1.16 1.27 8.69

2.2 NPA Management of the BCCB:

Table 5.14

Table showing NPA Management of BCCB of last 10 years

Yea

rs

Tota

l

Ad

van

ces

(` i

n L

ak

hs)

Gro

ss N

PA

(` i

n L

ak

hs)

Gro

ss N

PA

(%) Provision

Required

(ìn Lakhs)

Pro

vis

ion

Du

rin

g t

he

Yea

r

(ìn

Lak

hs)

Tota

l p

rovis

ion

(ìn

Lak

hs)

NE

T N

PA

1 2 1/2x100

Std.

Assets NPA

Total

SA+NPA

03-04 1692.58 203.41 12.02 3.72 53.57 57.29 60.00 253.92 00

04-05 1510.92 246.08 16.28 3.16 32.86 36.02 196.00 448.50 00

05-06 1375.55 442.89 32.21 2.33 158.96 161.29 10.00 460.97 00

06-07 1415.81 447.05 31.72 3.87 213.53 270.40 0.00 461.36 00

07-08 1349.84 402.84 30.22 3.79 257.15 261.00 0.00 466.36 00

08-09 1469.52 446.47 30.38 4.09 207.56 211.65 10.00 476.38 00

09-10 1505.94 442.57 29.39 4.25 203.30 207.55 10.14 486.52 00

10-11 1537.98 415.17 26.99 2.81 294.47 297.28 00.23 486.75 00

11-12 1633.88 342.65 20.97 3.23 257.54 260.77 33.85 452.91 00

12-13 1903.48 309.69 16.27 3.98 244.66 248.62 1.41 454.32 00

Average 25.00 00

(Source: Compiled from the information available in annual reports of the Bank)


In most of the Banks Net NPA is zero because they have made sufficient provisions

against their NPA loans (Bad Debts). But only zero NPA percentage is not sufficient as it

doesn’t mean that the bank has no bad debts. So Gross NPA percentage should be lower.

Gross NPA of BCCB of last 10 years shows highest 32.21 percent in the year2005-06 and

lowest 12.02 percent in the year 2003-04. On an average bank has 25 percent ratio of Gross

NPA of last 10 year. Though Net NPA of the bank is zero there are some amount written off

as bad debts every year by the bank.

Overall NPA management of the bank found good during the period of the study.

Bank has maintained enough reserve against its NPA so Net NPA remained zero throughout

the period of the study. Apart from this Gross NPA ratio decrease continuously in the year

2005-06 gross NPA of the bank 31.21 percent highest which was decreased to 16.27 percent

in the year 2012 -13 it was a great achievement of the bank and it shows well management

of the NPA by the bank during the period of the study.

According to recent guideline of the RBI Bank should have less than 10 percent

Gross NPA and less than 5 percent Net NPA. Net NPA of the bank was found zero

throughout the period of the study. That means bank has maintained more than enough

reserve against its non-performing assets (advances). But Gross NPA ratio of the bank

found more than 10 percent throughout the years it was a matter of worry. Otherwise NPA

management of the banks was found overall good.

12

.02

16

.28

32

.21

31

.72

30

.22

30

.38

29

.39

26

.99

20

.97

16

.27

0

5

10

15

20

25

30

35

Gro

ss N

PA

%

Years

Chart 5.1: Gross NPA of BCCB


2.3 Common Size Statement and Trend Analysis:

(I) Common Size Income Statement of BCCB:

Table 5.15

Ìn Lakhs

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Income:

Interest and discount 534.92 585.98 394.19 355.18 333.21 339.68 387.29 373.90 398.38 479.66

Percentage of Total Income 95.24 94.85 91.84 92.46 92.01 91.04 90.06 89.91 91.33 91.64

Commission and Exchange 22.90 17.89 14.73 15.12 16.46 18.76 17.12 16.80 13.53 10.50


Other Income 3.85 13.94 20.28 13.83 12.47 14.68 25.61 25.14 24.30 33.24


Total Income (A) 561.66 617.81 429.20 384.13 362.13 373.12 430.02 415.84 436.21 523.41


Expenditures:

Interests on Deposits, Borrowings 340.10 307.21 287.74 239.94 204.34 193.29 218.58 209.63 209.84 261.03


Salary, Allowances, provident fund and staff welfare 32.57 31.81 44.65 40.51 45.50 48.79 53.57 74.72 88.74 84.29


Seating fees of Directors and meeting fees 0.06 0.06 0.08 0.15 0.06 0.10 0.06 0.17 0.07 0.08


Office expenses 4.19 2.91 4.45 5.01 5.42 3.86 8.81 6.71 6.60 10.48


Rents, Rates, Insurance, Electricity etc. 10.02 9.11 10.89 9.58 9.59 10.87 11.33 11.16 11.55 15.87



Legal fees 1.56 0.52 0.47 0.31 1.62 0.37 1.40 1.98 1.91 4.71


Postage, Telephone, etc. 1.40 1.79 2.10 1.81 2.13 1.76 1.87 1.70 1.46 1.73


Audit Fees, Interval Audit fees 0.58 1.30 2.09 0.95 0.89 1.25 1.37 1.71 1.75 1.82


Depreciation 5.97 5.31 5.19 9.96 8.46 6.66 10.31 7.36 6.81 6.39


Printing Stationary, Advertisement 3.94 2.19 7.79 2.23 8.10 2.61 2.79 12.58 6.00 9.02


Computer Maintenance 0.86 0.92 0.81 0.42 0.75 0.90 0.75 0.85 1.23 1.20


Travelling and Conveyance expenses 2.90 2.06 2.76 2.52 3.05 2.71 2.61 3.08 5.75 4.03


Sundry Expenses 1.18 0.62 0.90 0.39 0.66 0.85 0.51 0.40 0.70 0.59


Contingent Liability 2.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Loss on sale of security 0.00 0.00 0.00 0.00 16.00 0.87 0.00 0.00 0.00 7.56


Relief 0.00 0.36 0.00 10.82 9.45 5.78 38.32 5.08 2.06 0.00


GOI Amortization fund and Dep. Fund 0.00 4.00 0.00 23.00 13.48 13.63 15.89 7.37 7.02 2.73


Member Gift expenses / Deposit Mobilization expenses 12.77 0.00 6.80 0.00 0.00 15.63 5.21 0.00 13.87 0.00



NPA Provision 60.00 196.00 10.00 0.00 0.00 10.00 10.00 0.00 0.00 0.00


PNB Principle fund Provision 0.00 0.00 0.00 0.00 0.00 18.11 9.00 0.00 0.00 0.00


Staff Gratuity Fund 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10.50


Staff Leave Encashment Provision 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10.00


Income Tax Provision 0.00 0.00 0.00 0.00 0.00 0.00 0.00 19.27 17.50 20.35


Total (B) 480.08 566.17 386.73 347.60 329.51 338.03 392.37 363.79 382.85 452.37


Net Profit 81.58 51.64 42.47 36.53 32.62 35.09 37.65 52.05 53.36 71.03


Trend Percentages:

Trend Ratio of Total Operating Income 100.00 110.00 76.42 68.39 64.48 66.43 76.56 74.04 77.66 93.19

Trend Ratio of Total Operating Expenses 100.00 117.93 80.55 72.40 68.64 70.41 81.73 75.78 79.75 94.23

Trend Ratio of Net Profit 100.00 63.30 52.06 44.78 39.99 43.01 46.15 63.80 65.41 87.07

(Source: Calculated from the published annual reports of BCCB of last 10 years)

(2003-04 is base year for trend percentages)


Common size profit and loss account of BCCB ltd. presented in the above table 5.15

it shows percentage of each item of profit and loss account in common percentage with total

operating income during last ten years. The above table also includes trend percentage of

major items of profit and loss account viz. operating income, operating expenses and net

profit. The chart 5.1 shows the graphical presentation of trend percentage ratio.

The chart clearly state that net profit of the bank is having decreasing trend from

2003-04 to 2006-07 than after it having increasing trend up to the year 2012-13. In the year

2004-05 operating income is increase but on the other hand operating expense also increase

and ultimately profit goes down. Than after from 2005-06 to 2012-13 all three components

Operating income, Operating expenses and Net profit having same kind of trend.

From the above common size statement it is clear that major portion of operating

income is interest earned by the bank on loan and advances and major portion of operating

expenses is interest paid on deposit and borrowings. Other income and expenditure have no

considerable impact on total operating income and expenditure. During the period of study,

bank having average 92 percent interest incomes out of total operating income and average

55 percentage interest expenses out of the total operating expenses.

From the above analysis it also clear that portion of other operation income in total

operation income is only 8 percent average and portion of other operating expenses is only

45 percent in total expenses i.e. less than fifty percent.

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

Per

cen

tag

e

Years

Chart 5.2: Trend Analysis of P/L Accounts of BCCB

Trend Ratio of Total

Operating Income


Operating Expenses

Trend Ratio of Net Profit


(II) Common size Balance sheets of BCCB:

Table 5.16

` in Lakhs

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Liabilities: Share Capital (share of Rs.100each) 107.61 107.61 107.61 107.61 107.61 108.23 110.08 124.67 188.13 193.77

Percentages of Total Liabilities 2.62 2.62 2.75 2.85 2.70 2.63 2.51 2.82 3.78 3.59

Reserve and Surplus 553.64 807.15 825.23 868.35 878.01 924.96 943.95 909.61 904.27 948.97


Deposits 2899.79 2709.42 2496.25 2356.29 2617.64 2672.30 2948.76 2990.02 3532.62 3868.05


Borrowings 17.97 9.95 11.28 8.33 8.33 86.52 27.41 26.76 26.76 26.84


Bill For collection (Contra) 17.28 12.74 12.10 6.69 7.82 16.24 15.57 13.17 12.32 8.50


Branch Adjustments 80.09 36.36 68.68 49.70 48.49 0.40 0.32 0.00 0.00 0.00


Interest Payable 321.28 347.79 341.50 302.77 248.25 229.04 250.27 207.59 196.52 219.02


Other Liabilities 35.36 20.61 8.86 43.89 37.06 43.81 43.17 103.82 57.58 58.30


Profit and Loss Account 81.58 51.64 42.47 36.53 32.62 35.09 37.65 52.05 53.36 71.03



Total 4114.60 4103.27 3913.98 3780.15 3985.83 4116.60 4377.17 4427.69 4971.56 5394.50


Assets:

Cash and Bank Balance 809.82 1031.17 615.13 625.91 1157.99 1132.67 1600.69 1751.27 2196.09 2508.29

Percentages of Total Assets 19.68 25.13 15.72 16.56 29.05 27.51 36.57 39.55 44.17 46.50

Investment 1453.82 1381.68 1747.08 1565.08 1279.16 1288.21 1052.83 924.64 887.77 708.36


Advances 1692.58 1510.92 1375.55 1415.81 1349.84 1469.52 1505.94 1537.98 1633.88 1903.48


Interest Receivable 55.17 79.24 50.81 43.27 34.45 59.44 85.36 69.03 117.83 128.15


Bills Receivables (Contra) 17.28 12.74 12.10 6.69 7.82 16.24 15.57 13.17 12.32 8.50


Assets (after Depreciation) 35.16 30.74 50.03 49.17 52.07 54.29 45.59 39.68 37.00 34.04


Other Assets 50.78 56.78 63.27 74.22 104.50 96.23 71.20 92.02 81.66 103.67


Branch Adjustment Account 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.00 0.00


Total 4114.60 4103.27 3913.98 3780.15 3985.84 4116.60 4377.17 4427.69 4971.56 5394.50



Trend Percentages:

Trend Percentage of Capital 100.00 100.00 100.00 100.00 100.00 100.58 102.29 115.85 174.83 180.07

Trend Percentage of Reserve and Surplus 100.00 145.79 149.06 156.84 158.59 167.07 170.50 164.30 163.33 171.41

Trend Percentage of Deposits 100.00 93.43 86.08 81.26 90.27 92.15 101.69 103.11 121.82 133.39

Trend Percentage of Advances 100.00 89.27 81.27 83.65 79.75 86.82 88.97 90.87 96.53 112.46

(Source: Calculated from the published annual reports of BCCB of last 10 years)


0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

200.00

2003-042004-052005-062006-072007-082008-092009-102010-112011-122012-13

Per

cen

tag

e

Years

Chart 5.3: Trend Analysis of Balance sheets of BCCB

Trend Percentage of Capital

Trend Percentage of Reserve

and Surplus

Trend Percentage of Deposits

Trend Percentage of Advances

Trend Percentage of

Investments


Table 5.16 shows common size balance sheet of the BCCB ltd. of last 10 years from

2003-04 to 2012-13 and it also included trend percentages of major items of balance sheet

like capital, reserve and surplus, deposits, advances and investments. Chart 5.3 shows

graphical presentation of trend percentage of the same major items of balance sheet during

the period of study.

From the common size balance sheet it is clear that major portion of liabilities are

covered by reserve and surplus and deposit and major portion of assets side covered by

advances and investment. On an average 87 percent portion of liabilities side covered by

reserve and deposit and remaining items are only 13 percentages. On the other hand on

assets side average 66 percent portion of total assets covered by investment and advances.

Trend percentage indicate that capital of the bank remain constant till 2007-08 and

then after it having increasing trend in last three years from 2010-11 to 2012-13 it increased

by more than 80 percent as compare to base year 2003-04.

Trend of reserve and surplus is increasing trend in the year 2010-11 and 2011-12 it

little bit decrease but then after it again increase. It suggests financial position of the bank

made strengthen year by year.

Trend of deposit decreasing in the first five years but then after it start increasing till

the last year of the study.

Trend of advances is almost same as trend of deposit, after all advances are depends

on deposits by the depositors.

Trend of investment increase in the initial years of the study but then after it has

declining trend in the year 2012-13 it has been decrease by 51 percent as compare to2003-

04. It indicates that bank more focus on provides the loan and advances the last 10 years.

3. FINANCIAL PERFORMANCE OF ‘THE KALUPUR

COMMERCIAL CO-OPERATIVE BANK LTD.’ (KCCB):

3.1 Ratio Analysis of KCCB:


Formula:


Table 5.17

Table showing CDR of KCCB of last 10 years

Year Total Advances

(` in Lakhs)

Total Deposit

(` in Lakhs)

CDR

(%)

2003-04 47922.17 87039.56 55.06

2004-05 56660.85 93842.99 60.38

2005-06 57975.71 108344.67 53.51

2006-07 60490.69 105369.09 57.41

2007-08 73565.29 135242.11 54.40

2008-09 90448.33 161109.68 56.14

2009-10 114657.74 199208.68 57.56

2010-11 135691.10 223729.11 60.65

2011-12 188420.92 269699.32 69.86

2012-13 227075.92 327495.02 69.34

Average 59.43

(Source: Computed from Annual Reports of KCCB of last 10 Years)

From the above table it is clear that bank’s credit deposit ratio of the bank remained

between 53 to 70 percent. Average of last 10 years CDR was found 59.43 percent. It

indicates KCCB uses its deposit on an average 59 percentage to give advances to their

customers. Highest CDR of the bank found in the year 2011-12 69.86 percent and lowest

ratio found 53.51 percent in the year 2005-06.

(II) Capital Adequacy Ratio (CAR)/Capital to Risk (Weighted) Assets Ratio (CRAR):

Formula:

Table 5.18

Table showing CAR of KCCB of last 10 years


(` in Lakhs)

Tier II Capital

(` in Lakhs)

Total TI+TII

(` in Lakhs)

RWA

(` in Lakhs)

CAR

(%)

2003-04 13424.95 1362.63 14787.58 28870.71 51.22

2004-05 14562.43 1801.68 16364.11 30119.84 54.33

2005-06 16009.61 2113.27 18122.88 38932.07 46.55

2006-07 20127.36 3161.37 23288.73 51902.67 44.87

2007-08 22518.75 3184.15 25702.90 45355.39 56.67

2008-09 25001.25 3206.93 28208.18 80802.58 34.91

2009-10 27413.77 3229.71 30643.48 76839.22 39.88

2010-11 30801.65 3520.19 34321.84 125721.02 27.30

2011-12 34578.58 4623.88 39202.46 201038.26 19.50

2012-13 39689.84 4884.90 44574.74 226152.93 19.71

Average 39.49



According to RBI and Basel committee report minimum CAR require for any UCB

is 9 percent after 2005. Above table shows CAR of KCCB constantly decreased from 2003-

04 to 2012-13 except in the year 2007-08. Though CAR of the KCCB constantly decreases

it remains more than 9 percent. At last in the year 2012-13 CAR of the bank is 19.71

percent it is 10.71 percent more than required CAR as per Basel Committee. So it indicates

healthy financial position of the bank. Average CAR of bank of last 10 years period of the

study was found 39.49 percent. Highest CAR of the bank 54.33 percent in the year 2004-05

and lowest percent was found in the year 2011-12 which was 19.50 percent.


Formula:

Table 5.19

Table showing IITIR of KCCB of last 10 years

Year Total Interest

(` in Lakhs)

Total Income

(` in Lakhs)

IITIR

(%)

2003-04 13097.78 13628.76 96.10

2004-05 9100.75 9536.22 95.43

2005-06 10161.79 10696.86 95.00

2006-07 10566.13 11170.42 94.59

2007-08 13994.30 14999.90 93.30

2008-09 17765.74 18461.14 96.23

2009-10 20339.28 21517.85 94.52

2010-11 21940.67 23529.46 93.25

2011-12 28088.14 30104.05 93.30

2012-13 35671.43 41073.08 86.85

Average 93.86 (Source: Calculated from Annual Reports of KCCB of last 10 Years)

Above table shows that out of the total income of KCCB on an average 93.86

percent income was interest income during last ten years. During the period of study highest

interest income to total income ratio remained 96.25 percent in the year 2008-09 and lowest

ratio was found 86.85 percent in the year 2012-13.


Formula:


Table 5.20

Table showing IETER of KCCB of last 10 years


(` in Lakhs)

Total Expenses

(` in Lakhs)

IETER

(%)

2003-04 6237.04 11826.85 52.74

2004-05 5605.40 7708.98 72.71

2005-06 5430.41 8839.51 61.43

2006-07 5621.02 8941.67 62.86

2007-08 7924.65 12449.80 63.65

2008-09 10614.85 15743.68 67.42

2009-10 13037.41 18707.53 69.69

2010-11 12375.51 20079.18 61.63

2011-12 17104.52 26044.81 65.67

2012-13 22268.30 36188.56 61.53

Average 63.93


In the above table highest ratio was found 72.71 percent and lowest ratio was found

52.74 percent in the year 2004-05 and 2003-04 respectively then after till 2012-13 it

remained between 60 to 70 percent. Average of 10 years of IETER of the bank found 63.93

percent i.e. on an average during last 10 years out of total expenses of bank around 64

percent portion of total expenses was interest expense.


Formula:

Table 5.21

Table showing NPNAR of KCCB of last 10 years

Year Net Profit

(` in Lakhs)

Net Assets

(` in Lakhs)

NPNAR

(%)

2003-04 1801.90 49269.10 3.66

2004-05 1827.26 51226.01 3.57

2005-06 1857.33 54862.89 3.39

2006-07 2228.76 53845.17 4.14

2007-08 2550.11 55883.42 4.56

2008-09 2717.45 59390.47 4.58

2009-10 2810.33 62847.25 4.47

2010-11 3450.29 66581.11 5.18

2011-12 4059.27 72321.68 5.61

2012-13 4884.54 77261.42 6.32

Average 4.55



During last 10 years maximum NPNAR was 6.32 percent in the year 2012-13

and minimum NPNAR was 3.39 percent in the year 2005-06. On an average bank has

maintained it NPNAR 4.55 percent during last 10 years.


Formula:

Table 5.22

Table showing EPS of KCCB of last 10 years

Year Net Profit

(` in Lakhs)

No. of Equity

Share (in Lakhs)

EPS

(`)

2003-04 1801.90 49.63 36.30

2004-05 1827.26 55.44 32.96

2005-06 1857.33 61.07 30.41

2006-07 2228.76 79.76 27.94

2007-08 2550.11 103.40 24.66

2008-09 2717.45 120.46 22.56

2009-10 2810.33 150.02 18.73

2010-11 3450.29 194.51 17.74

2011-12 4059.27 241.01 16.84

2012-13 4884.54 266.69 18.32

Average 24.65


EPS of KCCB `24.65 per share on an average during last 10 years. Maximum

EPS earned by the bank in the year 2003-04 `36.30 per share and minimum EPS earned by

the bank `16.84 in the year 2011-12. It indicates good earning capacity of the bank. Face

value of KCCB’s equity share `25 per share against it average `24.65 return annually i.e.

98.6 percent. It is great return earned by the bank to its equity owners.


Formula:



Table 5.23

Table showing IIAWFR of KCCB of last 10 years

Year Total Interest

(` in Lakhs)

AWF

(` in Lakhs)

IIAWFR

(%)

2003-04 13097.78 134978.95 9.70

2004-05 9100.75 148010.73 6.15

2005-06 10161.79 160881.43 6.32

2006-07 10566.13 173805.80 6.08

2007-08 13994.30 188376.05 7.43

2008-09 17765.74 214311.53 8.29

2009-10 20339.28 250677.30 8.11

2010-11 21940.67 290027.43 7.57

2011-12 28088.14 333662.55 8.42

2012-13 35671.43 390424.88 9.14

Average 7.72


From the above table it is clear that during last 10 year highest interest income to

average working fund ratio was 9.70 percent in the year 2003-04 and lowest ratio was 6.08

percent in the year 2006-07. On an average bank has 7.72 percent ratio of interest income to

average working fund annually during last 10 years period of study.


Formula:

Table 5.24

Table showing IEAWFR of KCCB of last 10 years


(` in Lakhs)

AWF

(` in Lakhs)

IEAWFR

(%)

2003-04 6237.04 134978.95 4.62

2004-05 5605.40 148010.73 3.79

2005-06 5430.41 160881.43 3.38

2006-07 5621.02 173805.80 3.23

2007-08 7924.65 188376.05 4.21

2008-09 10614.85 214311.53 4.95

2009-10 13037.41 250677.30 5.20

2010-11 12375.51 290027.43 4.27

2011-12 17104.52 333662.55 5.13

2012-13 22268.30 390424.88 5.70

Average 4.45 (Source: Computed from Annual Reports of KCCB of last 10 Years)


Above table state that during last 10 year highest interest expenses to average

working fund ratio was 5.70 percent and lowest ratio is 3.23 percent in the year 2012-13 and

2006-07 respectively. On an average bank has 4.45 percent ratio of interest expenses to

average working fund annually. Interest income ratio average 7.72 percent against it

average interest expense ratio 4.45 percent of last ten years of bank indicate that bank has

earning gap of interest 3.27 percent on average working fund.


Formula:

Table 5.25

Table showing GPAWFR of KCCB of last 10 years

Year Gross Profit

(` in Lakhs)

AWF

(` in Lakhs)

GPAWFR

(%)

2003-04 5482.86 134978.95 4.06

2004-05 2163.72 148010.73 1.46

2005-06 3458.38 160881.43 2.15

2006-07 3366.20 173805.80 1.94

2007-08 4552.28 188376.05 2.42

2008-09 4664.50 214311.53 2.18

2009-10 5005.47 250677.30 2.00

2010-11 6722.01 290027.43 2.32

2011-12 8366.64 333662.55 2.51

2012-13 10698.11 390424.88 2.74

Average 2.38


Above table shows that the highest GPAWFR of the bank is 4.06 percent in the year

2003-04 and then after it is less than 3 percent till 2012-13. Lowest ratio of the banks was

found in the year 2004-05; 1.46 percent. Average gross profit ratio with average working

capital of last 10 years was found 2.38 percent.


Formula:


Table 5.26

Table showing NPAWFR of KCCB of last 10 years

Year Net Profit

(` in Lakhs)

AWF

(` in Lakhs)

NPAWFR

(%)

2003-04 1801.90 134978.95 1.33

2004-05 1827.26 148010.73 1.23

2005-06 1857.33 160881.43 1.15

2006-07 2228.76 173805.80 1.28

2007-08 2550.11 188376.05 1.35

2008-09 2717.45 214311.53 1.27

2009-10 2810.33 250677.30 1.12

2010-11 3450.29 290027.43 1.19

2011-12 4059.27 333662.55 1.22

2012-13 4884.54 390424.88 1.25

Average 1.24 (Source: Computed from Annual Reports of KCCB of last 10 Years)


2007-08, and lowest 1.12 percent in the year 2009-10 and average NPAWFR of the bank

1.24 percent of last 10 years.


Formula:

Table 5.27

Table showing ECAWFR of KCCB of last 10 years

Year Employee exp.

(` in Lakhs)

AWF

(` in Lakhs)

ECAWFR

(%)

2003-04 992.77 134978.95 0.74

2004-05 997.83 148010.73 0.67

2005-06 1017.15 160881.43 0.63

2006-07 1213.78 173805.80 0.70

2007-08 1289.33 188376.05 0.68

2008-09 1471.36 214311.53 0.69

2009-10 1714.78 250677.30 0.68

2010-11 2090.41 290027.43 0.72

2011-12 2624.09 333662.55 0.79

2012-13 3475.15 390424.88 0.89

Average 0.72



From the above ratios of employee cost to average working fund of last 10 years of

the bank it was clear that average employee’s cost of the bank was 0.72 percent of average

working fund of the bank per annum. Highest and lowest ratio of employee’s cost to

average working fund was found 0.89 and 0.63 percent in the year 2012-13 and 2005-06

respectively.


Formula:

Table 5.28

Table showing CoDR of KCCB of last 10 years


(` in Lakhs)

Average Deposits

(` in Lakhs)

CoDR

(%)

2003-04 6237.04 84417.75 7.39

2004-05 5605.40 93112.10 6.02

2005-06 5430.41 103145.33 5.26

2006-07 5621.02 114304.38 4.92

2007-08 7924.65 126553.10 6.26

2008-09 10614.85 148175.90 7.16

2009-10 13037.41 180159.18 7.24

2010-11 12375.51 213716.64 5.79

2011-12 17104.52 248961.96 6.87

2012-13 22268.30 298597.17 7.46

Average 6.44

(Source: Calculated from Annual Reports of KCCB of last 10 Years)

From the above table the researcher can clearly observed that Maximum Percentages

of Interest on Average deposits during last 10 years was found in the year 2012-13; 7.46

percent and minimum 4.92 percent in the year 2006-07. Average cost of deposits of last 10

years period of the bank was found 6.44 percent.



Table 5.29

A summary of all the ratios of KCCB Calculated above

Yea

rs

CD

R (%

)

CA

R (%

)

IITIR

(%)

IET

ER

(%)

NP

NA

R (%

)

EP

S (`

)

IIAW

FR

(%)

IEA

WF

R (%

)

GP

AW

FR

(%)

NP

AW

FR

(%)

EC

AW

FR

(%)

CO

DR

(%)

03-04 55.06 51.22 96.10 52.74 3.66 36.30 9.70 4.62 4.06 1.33 0.74 7.39

04-05 60.38 54.33 95.43 72.71 3.57 32.96 6.15 3.79 1.46 1.23 0.67 6.02

05-06 53.51 46.55 95.00 61.43 3.39 30.41 6.32 3.38 2.15 1.15 0.63 5.26

06-07 57.41 44.87 94.59 62.86 4.14 27.94 6.08 3.23 1.94 1.28 0.70 4.92

07-08 54.40 56.67 93.30 63.65 4.56 24.66 7.43 4.21 2.42 1.35 0.68 6.26

08-09 56.14 34.91 96.23 67.42 4.58 22.56 8.29 4.95 2.18 1.27 0.69 7.16

09-10 57.56 39.88 94.52 69.69 4.47 18.73 8.11 5.20 2.00 1.12 0.68 7.24

10-11 60.65 27.30 93.25 61.63 5.18 17.74 7.57 4.27 2.32 1.19 0.72 5.79

11-12 69.86 19.50 93.30 65.67 5.61 16.84 8.42 5.13 2.51 1.22 0.79 6.87

12-13 69.34 19.71 86.85 61.53 6.32 18.32 9.14 5.70 2.74 1.25 0.89 7.46

Avg. 59.43 39.49 93.86 63.93 4.55 24.65 7.72 4.45 2.38 1.24 0.72 6.44

3.2 NPA Management of the KCCB:

Table 5.30

Table showing NPA Management of KCCB of last 10 years

Yea

rs

Tota

l

Ad

van

ces

(` i

n L

ak

hs)

Gro

ss N

PA

(` i

n L

ak

hs)

Gro

ss N

PA

(%) Provision

Required

(ìn Lakhs)

Pro

vis

ion

Du

rin

g t

he

Yea

r

(ìn

Lak

hs)

Tota

l p

rovis

ion

(ìn

Lak

hs)

NE

T N

PA

1 2 1/2x100 Std.

Assets NPA

Total

SA+NPA

03-04 47922.17 15733.00 32.83 80 15653 15733 1338.95 22343 00

04-05 56660.85 13556.00 23.92 18 13213 13231 162.69 22597 00

05-06 57975.71 12756.00 22.00 179 12350 12529 123.80 17816 00

06-07 60490.69 7492.00 12.39 1050 6627 7686 22.07 14541 00

07-08 73565.29 4405.00 5.99 1370 3606 4976 0.00 14146 00

08-09 90448.33 4230.00 4.68 1713 3347 5060 0.00 9213 00

09-10 114657.74 3213.00 2.80 2212 2721 4933 0.00 9820 00

10-11 135691.10 1927.00 1.42 2700 1466 4166 0.00 9489 00

11-12 188420.92 1800.00 0.96 2700 389 3089 0.00 10026 00

12-13 227075.92 2170.00 0.96 2700 620 3320 0.00 10637 00

Average 10.79



In most of the Banks Net NPA is zero because banks have made sufficient

provisions against their NPA loans (Bad Debts). But only zero NPA percentage is not

sufficient to analysis of NPA management of the banks. ZERO NPA doesn’t mean that the

bank has no bad debts. So Gross NPA percentage should be observed and it should be

minimize.

In Gross NPA of KCCB of last 10 years highest 32.83 percent in the year 2003-04

and lowest 0.96 percent in the year 2011-12 and 2012-13. Gross NPA of the Bank has

constantly decreased during last 10 years it indicate good NPA management of the bank. It

shows good lent and collection policy of the bank also. In the years 2003-05 bank has Gross

NPA 32.83 percent which was reduced to 0.96 in the year 2012-13 it indicates well NPA

management by the bank during the period of the study. Apart from this bank has made

more than enough provision against gross NPA and maintained more NPA provision than

gross NPA so Net NPA percentage found zero in all the 10 years the period of the study that

the researcher studied. From last six years bank has provided zero amounts to NPA

provision due to its good recovery policy. In last two years 2011-12 and 2012-13 the gross

NPA of the bank was only 0.96 percent it was appreciable thing, in the year 2003-04 bank

has gross NPA 32.83 percent that declined to 0.96 percent in10 years. Average Gross NPA

percentage of last 10 years period of the study was found 10.79.

32

.83

23

.92

22

.00

12

.39

5.9

9

4.6

8

2.8

0

1.4

2

0.9

6

0.9

6

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

GN

PA

%

Years

Chart 5.4: Gross NPA of KCCB


3.3 Common Size Statement and Trend Analysis:

(I) Common Size Income Statement of KCCB:

Table:5.31

ìn Lakhs

Particulars 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Income: Interest and discount 13097.78 9100.75 10161.79 10566.13 13994.30 17765.74 20339.28 21940.67 28088.14 35671.43


Commission, Exchange & Brokerage 152.51 61.08 77.90 94.83 133.41 117.84 176.71 346.28 427.42 701.22


Other Receipts 378.47 374.39 457.17 509.46 872.19 577.56 1001.86 1242.51 1588.49 4700.43


Total (A) 13628.76 9536.22 10696.86 11170.42 14999.90 18461.14 21517.85 23529.46 30104.05 41073.08

100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Expenditures:







Legal fees 27.04 29.15 30.92 44.56 35.02 37.07 36.00 79.25 19.84 17.06





Audit Fees, Internal Audit fees 7.23 11.75 11.46 21.37 18.22 24.95 22.85 23.29 11.06 13.20


Depreciation and Repairs to property 322.77 246.64 280.91 348.21 408.56 474.09 497.86 578.58 591.97 610.58




Other expenses 179.07 217.51 210.56 261.86 414.48 535.74 648.87 857.76 777.58 895.40


Leave Encashment Liability 0.00 21.31 22.46 32.14 207.46 90.36 3.79 88.64 0.00 0.00


Staff Gratuity fund 26.05 32.48 28.77 27.73 279.04 121.05 39.39 150.67 0.00 0.00


NPA provision 1338.95 162.69 123.80 22.07 0.00 0.00 0.00 0.00 0.00 0.00


Bad & Doubtful Debt Reserve 300.00 0.00 0.00 0.00 0.00 0.00 360.00 480.00 600.00 620.00


Special Bad Debts Reserve 300.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Bad Debts Reserve 300.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Special Building Funds 10.00 5.00 5.00 5.00 5.00 20.00 10.00 500.00 500.00 1500.00


General Welfare fund 10.00 5.00 5.00 5.00 5.00 20.00 10.00 100.00 8.00 300.00



Contingency fund 10.00 5.00 5.00 10.00 35.00 35.00 15.00 70.00 0.00 675.00


Provisions for other Assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 480.00 0.00


Development fund 10.00 5.00 5.00 5.00 5.00 15.00 10.00 100.00 100.00 300.00


Staff Welfare fund 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 100.00


Special Contingency Fund 0.00 0.00 420.00 50.00 25.00 25.00 10.00 100.00 0.00 0.00


Special Reserve 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 292.00 341.00


Building Fund 0.00 0.00 0.00 0.00 0.00 300.00 0.00 0.00 0.00 0.00


Investment Fluctuation Reserve 500.00 100.00 50.00 50.00 200.00 200.00 200.00 0.00 0.00 0.00


Fringe Benefit Tax 0.00 0.00 0.00 0.00 0.00 5.35 0.00 0.00 0.00 0.00


Income Tax Provision 0.00 0.00 0.00 800.00 1165.00 1326.69 1580.14 1921.72 2327.37 1977.58


Deferred tax 0.00 0.00 0.00 130.51 75.74 0.00 0.00 0.00 0.00 0.00


MMC deposits written off 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2388.84


Investment Depreciation Reserve 875.95 0.00 936.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00



Total (B) 11826.85 7708.98 8839.51 8941.67 12449.80 15743.68 18707.53 20079.18 26044.81 36188.56


Net Profit (A-B) 1801.91 1827.24 1857.35 2228.75 2550.10 2717.46 2810.32 3450.28 4059.24 4884.52


Trend Percentages:




(Source: Calculated from the published annual reports of KCCB of last 10 years)


0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

2003-042004-052005-062006-072007-082008-092009-102010-112011-122012-13

Percen

tag

es

Years

Chart 5.5. Trend analysis of P/L accounts of KCCB

Trend Ratio of Total Operating

Income

Trend Ratio of Total Operating

Expenses



Above table no. 5.31 shows common size analysis profit and loss accounts of the

KCCB ltd. for 10 years from 2003-04 to 2012-13. From the above table it is clear that

out of the total operating income of the bank major portion covered by the interest and

discount income. During the 10 years period of the study the maximum percentage of

interest and discount income on total operating income was found 96.23 percent and

minimum rate of percentage was 86.85 percent in the year 2008-09 and 2012-13

respectively. Average of 10 years interest and discount income percentage was 93.86

percent. So the researcher can conclude that average annual operating income of bank

consists, approximately 94 percent interest and discount income and 6 percent other

income.

The above table also state that out of the total operating expenses of the bank

average 54 percent of the total operating income is interest expenditure annually.

Average net profit ratio of the 10 year was 15.45 percentage i.e. percentage of other

operating expenses and provisions average 30.55 percent which includes 8 to 9 percent

of the total income as employee expenses like salary provident fund etc.

Last portion above table and chart no.5.5 shows the trend percentages of the

major items of profit and loss account. Trend percentage of operating income and

operating expenses show the same kind of trend it decline in first 3 years in than after it

increased continuously. Expenditure always depends on income as income increase

expenditure also increases and income decrease expenditure also decreases that thing

clearly indicate in the above graph. But the good thing is percentage of increase in

expenditure is less than percentage of increase in income the result is profitability

increase. The profit line in the above trend percentage graph shows increasing trend from

the first year to the last year of the study period. In comparison of the year 2003-04 profit

percentages increased by 171.07 percent in the year 2012-13. Though average percentage

of profit with total income is 15.45 percent, profit of the bank continuously increased it is

good thing for the bank and its progress during last 10 years.

Overall by the observation of above common size income statement and trend

chart the researcher can conclude that overall profitability of the bank increased during

last ten years not only this but also operating income of the bank also increase which

makes banks financial position stronger.


(II) Common size Balance sheets of KCCB:

Table 5.32

ìn Lakhs

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Liabilities:

Share Capital (`.25each) 1240.86 1385.99 1526.72 1994.12 2585.10 3011.60 3750.60 4862.75 6025.31 6667.24




Deposits 87039.56 93842.99 108344.67 105369.09 135242.11 161109.68 199208.68 223729.11 269699.32 327495.02


Borrowings 3638.66 1702.99 2400.00 12495.00 0.00 0.00 0.00 4495.48 0.00 0.00






Overdue Interest 13658.53 16447.37 19192.85 15098.31 14195.66 13449.66 14259.85 9679.06 8697.36 7957.37









Total 158444.65 168315.10 189817.81 192937.45 214405.94 243836.72 289279.58 327858.41 383998.20 446807.55


Assets:



Call Money 0.00 3000.00 0.00 7500.00 0.00 8500.00 0.00 0.00 0.00 0.00


Investment 64553.79 62386.58 70532.64 66903.48 79395.98 65797.41 106257.65 110003.78 110130.95 112759.29


Advances 47922.17 56660.85 57975.71 60490.69 73565.29 90448.33 114657.74 135691.10 188420.92 227075.92






Assets (After Depreciation) 1410.29 1635.21 2079.70 2632.43 3222.56 3347.78 3684.91 3661.12 4389.37 4892.55


Other Assets 2262.83 3222.35 2655.37 2158.47 4104.41 5147.01 5976.46 7816.80 9553.75 7774.55




Non Banking Assets 1093.77 818.88 296.92 236.73 82.27 82.27 19.21 19.36 0.00 0.00


Total 158444.65 168315.10 189817.81 192937.45 214406.94 243836.72 289279.58 327858.41 383998.20 446807.55



Trend Percentages:


Trend Percentage of Reserves 100.00 103.77 111.05 107.96 110.97 117.39 123.05 128.50 138.04 146.98



Trend Percentage of Investments 100.00 96.64 109.26 103.64 122.99 101.93 164.60 170.41 170.60 174.67

(Source: Calculated from the published annual reports of KCCB of last 10 years)


0.00

100.00

200.00

300.00

400.00

500.00

600.00

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Per

cen

tag

e

Years

Chart 5.6: Trend Analysis of Balance sheet of KCCB


Trend Percentage of Reserve

and SurplusTrend Percentage of Deposits


Above table 5.32 shows common size balance sheet of the KCCB ltd. of last 10

years from 2003-04 to 2012-13. It also includes the trend percentages of major items of the

balance sheet.

From the above analysis it is clear that liabilities side of the balance sheet the most

important items are reserve and surplus and deposits. Out of the total funds invested in the

bank’s assets major portion provided by reserve and deposits. During the period of study

lowest percentage of reserves found 15.80 in the year 2012-13 and highest 30.31 in the

years 2003-04. During this period highest percentage of deposits 73.30 in the year 2012-13

and lowest percentage 54.93 in the year 2003-04 it indicates during the period of study bank

has increase the proportion of deposits and decrease the proportion of reserves. Overall

average 87 percent of the total assets of the bank funded by these two components. On one

hand bank has reduced the proportion of reserves but on the other hand bank has increased

the proportion of share capital during this period so overall banks owners capital maintain in

good proportion with increased proportion of debts (deposits). Increasing trends of deposits

improves bank’s profitability because bank become more able to lent money to the

customers and increasing trends of capital improves bank’s solvency as owner’s fund

increase.

On the assets side the major item are cash & bank balance investments and

advances. Above analysis state that during the period of last 10 years proportion of cash &

bank, and investment decrease and proportion of advances were increased. Advances in the

year 2003-04 were 30.25 percent of total assets which increased to 50.82 percent of total

assets. One side deposits of banks has increased and other side banks advances has

increased it suggest bank has done good business during the 10 years period of study. Due

to this bank profitability also increased.

Chart 5.6 shows trend analysis of the major items of balance sheets of KCCB ltd. of

last 10 years. From the above chart it is clear that all components of the balance sheets

shows increasing trend. Share capital of the bank increase to 5.37 times as compare to the

year 2003-04 in the year 2012-13. Reserve increased by 47 percent as compare to first year

in the last year. Deposits, Advances and Investment were reached at 376.26, 473.84, and

174.67 percent respectively from 100 percent in the year 2003-04 to the year 2012-13. It

shows excellent performance of the bank during last 10 years of the study.


4. FINANCIAL PERFORMANCE OF ‘THE RAJKOT COMMERCIAL

CO-OPERATIVE BANK LTD.’ (RCCB):

4.1 Ratio Analysis of RCCB.


Formula:

Table 5.33

Table showing CDR of RCCB of last 10 years

Year Total Advances

(` in Lakhs)

Total Deposit

(` in Lakhs)

CDR

(%)

2003-04 10543.55 19285.39 54.67

2004-05 11014.97 18812.20 58.55

2005-06 11505.98 18690.57 61.56

2006-07 11274.43 16590.92 67.96

2007-08 9984.16 10389.77 96.10

2008-09 9243.32 11345.82 81.47

2009-10 6405.42 12909.47 49.62

2010-11 4370.82 11560.61 37.81

2011-12 4492.50 9943.43 45.18

2012-13 5408.99 10738.84 50.37

Average 60.33 (Source: Computed from Annual Reports of RCCB of last 10 Years)

From the above table it is clear that bank’s credit deposit ratio remain between 37 to

96 percent. Average of last 10 years CDR was 60.33 percent. It indicates RCCB uses its

deposit on an average 60.33 percentage to give advances to their customers during the

period of study of last 10 years from 2003-04 to 2012-13. Highest deposit used by the bank

to provide loans to its customers in the year 2007-08, which was 96.10 percent of total

deposits. Lowest ratio of CDR found in the years 2010-11 37.81 percent.

(II) Capital Adequacy Ratio (CAR)/ Capital to Risk (Weighted) Assets Ratio (CRAR):

Formula:


Table 5.34

Table showing CAR of RCCB of last 10 years


(` in Lakhs)

Tier II Capital

(` in Lakhs)

Total TI+TII

(` in Lakhs)

RWA

(` in Lakhs)

CAR

(%)

2003-04 1977.00 200.67 2177.67 7881.54 27.63

2004-05 2060.23 249.70 2309.93 7856.90 29.40

2005-06 2134.94 280.96 2415.90 8606.70 28.07

2006-07 1360.75 178.82 1539.57 9280.11 16.59

2007-08 1390.12 194.61 1584.73 6981.19 22.70

2008-09 1593.16 224.64 1817.80 6396.20 28.42

2009-10 1650.12 239.27 1889.39 6090.88 31.02

2010-11 1534.92 228.70 1763.62 5025.99 35.09

2011-12 1961.49 294.22 2255.71 5531.41 40.78

2012-13 3154.72 474.68 3629.40 7211.21 50.33

Average 31.00

(Source: Computed from Annual Reports of RCCB of last 10 Years)


is 9 percent after 2005. Above table shows CAR of RCCB in all the years of the study from

2003-04 to 2012-13 more than 9 percent. It indicates that CAR of the bank is more than

required rate by RBI in all the years. Average CAR of the 10 years period is 31 percent it

shows financial soundness of the bank during the period of study. Highest CAR of the bank

found in the years 2012-13 50.33 percent and lowest CAR found in the year 2006-07 16.59

percent.


Formula:

Table 5.35

Table showing IITIR of RCCB of last 10 years

Year Total Interest

(` in Lakhs)

Total Income

(` in Lakhs)

IITIR

(%)

2003-04 2498.12 2999.56 83.28

2004-05 2345.38 2464.65 95.16

2005-06 2179.14 2261.87 96.34

2006-07 1715.89 1823.12 94.12

2007-08 1678.27 1745.43 96.15

2008-09 1368.94 1545.94 88.55

2009-10 1444.21 1577.21 91.57

2010-11 1384.93 1462.93 94.67

2011-12 1339.30 1420.39 94.29

2012-13 1442.14 1539.94 93.65

Average 93.00

(Source: Calculated from Annual Reports of RCCB of last 10 Years)


Above table shows that out of the total income of RCCB on an average 93 percent is

interest income during last ten years. During the period of study highest interest income to

total income ratio was found 96.34 percent and lowest ratio was 83.28 percent in the year

2005-06 and 2003-04 respectively.


Formula:

Table 5.36

Table showing IETER of RCCB of last 10 years


(` in Lakhs)

Total Expenses

(` in Lakhs)

IETER

(%)

2003-04 1876.69 2880.82 65.14

2004-05 1702.18 2345.19 72.58

2005-06 1530.57 2138.13 71.58

2006-07 1405.57 2631.25 53.42

2007-08 994.41 1731.74 57.42

2008-09 797.27 1342.97 59.37

2009-10 878.26 1535.58 57.19

2010-11 755.32 1583.79 47.69

2011-12 585.18 1192.47 49.07

2012-13 573.73 1207.17 47.53


In the above table highest ratio is 72.58 percent and lowest ratio is 47.53 percent in

the year 2004-05 and 2012-13 respectively. Average of 10 years is 58.10 percent i.e. on an

average during last 10 years out of total expenses of the bank around 58 percent portion of

total expenses was interest expense on deposits and borrowings. Average interest income

ratio was 93 percent against it average interest expenses ratio 58 percent it mentioned that

on an average during the last 10 years 35 percent is interest margin earned by the bank.


Formula:


Table 5.37

Table showing NPNAR of RCCB of last 10 years

Year Net Profit

(` in Lakhs)

Net Assets

(` in Lakhs)

NPNAR

(%)

2003-04 118.74 8925.27 1.33

2004-05 119.46 9843.43 1.21

2005-06 123.74 11039.25 1.12

2006-07 -808.13 14346.33 -5.63

2007-08 13.69 15762.34 0.09

2008-09 202.97 17297.35 1.17

2009-10 41.63 18680.57 0.22

2010-11 -120.86 20102.79 -0.60

2011-12 227.92 22028.06 1.03

2012-13 332.77 25382.76 1.31


During last 10 years maximum NPNAR was found 1.33 percent in the year 2003-

04 and minimum NPNAR was found (-5.63) percent in the year 2006-07. During these 10

years bank has negative NPNAR in two years 2006-07 and 2010-11. But on an average

during the last 10 years banks has 0.13 percent NPNAR. Bank has successfully covered its

loss incurred in 2006-07 and 2010-11.


Formula:

Table 5.38

Table showing EPS of RCCB of last 10 years

Year Net Profit

(` in Lakhs)

No. of Equity

Share (in Lakhs)

EPS

(`)

2003-04 118.74 10.08 11.78

2004-05 119.46 10.54 11.33

2005-06 123.74 10.54 11.74

2006-07 -808.13 13.90 -58.12

2007-08 13.69 14.47 0.95

2008-09 202.97 14.41 14.09

2009-10 41.63 14.99 2.78

2010-11 -120.86 15.21 -7.94

2011-12 227.92 22.77 10.01

2012-13 332.77 23.86 13.94

Average 1.06



EPS of RCCB `1.06 per share on an average during last 10 years. Maximum EPS

earned by the bank in the year 2012-13 `13.94 per share and minimum EPS earned by the

bank `-58.12 in the year 2006-07. Though bank has negative EPS in two years, overall EPS

of the bank during the period of the study found good.


Formula:


Table 5.39

Table showing IIAWFR of RCCB of last 10 years

Year Total Interest

(` in Lakhs)

AWF

(` in Lakhs)

IIAWFR

(%)

2003-04 2498.12 23914.65 10.45

2004-05 2345.38 24483.85 9.58

2005-06 2179.14 23869.66 9.13

2006-07 1715.89 22823.72 7.52

2007-08 1678.27 19175.35 8.75

2008-09 1368.94 16302.02 8.40

2009-10 1444.21 18116.99 7.97

2010-11 1384.93 17445.93 7.94

2011-12 1339.30 15893.08 8.43

2012-13 1442.14 15923.96 9.06



average working fund ratio was found 10.45 percent in the year 2003-04 and lowest ratio

was found 7.94 percent in the year 2010-11. On an average bank has 8.72 percent ratio of

interest income to average working fund annually during last 10 years from 2003-04 to

2012-13.


Formula:


Table 5.40

Table showing IEAWFR of RCCB of last 10 years


(` in Lakhs)

AWF

(` in Lakhs)

IEAWFR

(%)

2003-04 1876.69 23914.65 7.85

2004-05 1702.18 24483.85 6.95

2005-06 1530.57 23869.66 6.41

2006-07 1405.57 22823.72 6.16

2007-08 994.41 19175.35 5.19

2008-09 797.27 16302.02 4.89

2009-10 878.26 18116.99 4.85

2010-11 755.32 17445.93 4.33

2011-12 585.18 15893.08 3.68

2012-13 573.73 15923.96 3.60

Average 5.39


Above table shows that during last 10 year highest interest expenses to average

working fund ratio was found 7.85 percent and lowest ratio was found 3.60 percent in the

year 2003-04 and 2012-13 respectively. On an average bank has 5.39 percent ratio of

interest expenses to average working fund annually. Interest income ratio average 8.72

percent against it average interest expense ratio 5.39 percent of last ten years of bank it

states that bank has earning gap of interest 3.33 percent on average working fund.


Formula:

Table 5.41

Table showing GPAWFR of RCCB of last 10 years

Year Gross Profit

(` in Lakhs)

AWF

(` in Lakhs)

GPAWFR

(%)

2003-04 794.30 23914.65 3.32

2004-05 339.49 24483.85 1.39

2005-06 300.11 23869.66 1.26

2006-07 -54.46 22823.72 -0.24

2007-08 273.90 19175.35 1.43

2008-09 354.49 16302.02 2.17

2009-10 384.97 18116.99 2.12

2010-11 301.02 17445.93 1.73

2011-12 466.32 15893.08 2.93

2012-13 575.59 15923.96 3.61

Average 1.97



Above table shows that the highest GPAWFR of the bank is 3.61 percent in the year

2012-13 and lowest ratio is (-0.24) percent in the year 2006-07 average GPAWFR remained

1.97 of last 10 years from 2003-04 to 2012-13.


Formula:

Table 5.42

Table showing NPAWFR of RCCB of last 10 years

Year Net Profit

(` in Lakhs)

AWF

(` in Lakhs)

NPAWFR

(%)

2003-04 118.74 23914.65 0.50

2004-05 119.46 24483.85 0.49

2005-06 123.74 23869.66 0.52

2006-07 -808.13 22823.72 -3.54

2007-08 13.69 19175.35 0.07

2008-09 202.97 16302.02 1.25

2009-10 41.63 18116.99 0.23

2010-11 -120.86 17445.93 -0.69

2011-12 227.92 15893.08 1.43

2012-13 332.77 15923.96 2.09



2012-13, and lowest (-3.54) percent in the year 2006-07 and average NPAWFR of the bank

0.24 percent of last 10 years from 2003-04 to 2012-13. From the above table it also clear

that 2012-13 was good year for bank because in this year bank earned good profit as

compare to other years of the study and bank has highest net profit in this year.


Formula:


Table 5.43

Table showing ECAWFR of RCCB of last 10 years

Year Employee exp.

(` in Lakhs)

AWF

(` in Lakhs)

ECAWFR

(%)

2003-04 203.81 23914.65 0.85

2004-05 215.23 24483.85 0.88

2005-06 232.19 23869.66 0.97

2006-07 249.82 22823.72 1.09

2007-08 254.55 19175.35 1.33

2008-09 238.36 16302.02 1.46

2009-10 208.43 18116.99 1.15

2010-11 298.73 17445.93 1.71

2011-12 254.30 15893.08 1.60

2012-13 278.51 15923.96 1.75


From the above table showing ratios of employee cost to average working fund of

last 10 years of the bank it is clear that average employee’s cost of the bank on average

working fund is 1.28 percent per annum. During last 10 years highest ECAWFR 1.75

percent in the year 2012-13 and lowest ratio 0.85 percent in the year 2003-04.


Formula:

Table 5.44

Table showing CoDR of RCCB of last 10 years


(` in Lakhs)

Average Deposits

(` in Lakhs)

CoDR

(%)

2003-04 1876.69 18894.56 9.93

2004-05 1702.18 19048.80 8.94

2005-06 1530.57 18751.39 8.16

2006-07 1405.57 17640.75 7.97

2007-08 994.41 13490.35 7.37

2008-09 797.27 10867.80 7.34

2009-10 878.26 12127.65 7.24

2010-11 755.32 12235.04 6.17

2011-12 585.18 10752.02 5.44

2012-13 573.73 10341.14 5.55

Average 7.41 (Source: Calculated from Annual Reports of RCCB of last 10 Years)


From the above table it was found percentages of Interest on Average Deposits

during last 10 years Maximum 9.93 in the year 2003-04 and minimum 5.44 in the year

2011-12 and average cost of deposits last 10 years of the bank remained 7.41percent.


Table 5.45

A summary of all the ratios of RCCB Calculated above

Yea

rs

CD

R (%

)

CA

R (%

)

IITIR

(%)

IET

ER

(%)

NP

NA

R (%

)

EP

S (`

)

IIAW

FR

(%)

IEA

WF

R (%

)

GP

AW

FR

(%)

NP

AW

FR

(%)

EC

AW

FR

(%)

CO

DR

(%)

03-04 54.67 27.63 83.28 65.14 1.33 11.78 10.45 7.85 3.32 0.5 0.85 9.93

04-05 58.55 29.4 95.16 72.58 1.21 11.33 9.58 6.95 1.39 0.49 0.88 8.94

05-06 61.56 28.07 96.34 71.58 1.12 11.74 9.13 6.41 1.26 0.52 0.97 8.16

06-07 67.96 16.59 94.12 53.42 -5.63 -58.12 7.52 6.16 -0.24 -3.54 1.09 7.97

07-08 96.1 22.7 96.15 57.42 0.09 0.95 8.75 5.19 1.43 0.07 1.33 7.37

08-09 81.47 28.42 88.55 59.37 1.17 14.09 8.4 4.89 2.17 1.25 1.46 7.34

09-10 49.62 31.02 91.57 57.19 0.22 2.78 7.97 4.85 2.12 0.23 1.15 7.24

10-11 37.81 35.09 94.67 47.69 -0.6 -7.94 7.94 4.33 1.73 -0.69 1.71 6.17

11-12 45.18 40.78 94.29 49.07 1.03 10.01 8.43 3.68 2.93 1.43 1.6 5.44

12-13 50.37 50.33 93.65 47.53 1.31 13.94 9.06 3.6 3.61 2.09 1.75 5.55

Avg. 60.33 31.00 92.78 58.10 0.13 1.06 8.72 5.39 1.97 0.24 1.28 7.41

4.2 NPA Management of the RCCB:

Table 5.46

Table showing NPA Management of RCCB of last 10 years

Yea

rs

Tota

l

Ad

van

ces

(` i

n L

ak

hs)

Gro

ss N

PA

(` i

n L

ak

hs)

Gro

ss N

PA

(%) Total Provision

(ìn Lakhs)

NE

T N

PA

(ìn

Lak

hs)

NE

T N

PA

(%)

1 2 1/2x100 Std.

Assets NPA

Total

SA+NPA

03-04 10543.55 1888.70 17.91 25 1543.76 1568.76 319.94 3.56

04-05 11014.97 1521.85 13.82 25 1724.25 1749.25 -227.4 -2.45

05-06 11505.98 777.63 6.76 50 2075.44 2125.44 -1347.81 -14.37

06-07 11274.43 3775.21 33.48 50 2828.71 2878.71 896.5 10.68

07-08 9984.16 3480.60 34.86 55 2843.71 2898.71 581.89 8.21

08-09 9243.32 3256.41 35.23 55 2870.23 2925.23 331.18 5.24

09-10 6405.42 1611.45 25.16 55 1297.87 1352.87 258.58 5.12

10-11 4370.82 1158.68 26.51 55 1239.87 1294.87 -136.19 -4.43

11-12 4492.50 663.41 14.77 55 1309.87 1364.87 -701.46 -22.43

12-13 5408.99 489.92 9.06 55 591.28 646.28 -156.36 -3.28



As per recent guidelines provided by the RBI Net NPA should be less than 5 percent

to pay dividend and Gross NPA should be less than 10 percent to avoid supervisory action

from RBI.

From the above table no. 5.46 and chart no. 5.7 it is clear that Gross NPA of RCCB

more than 10 percent in all the years except in the year 2005-06 and 2012-13. The

researcher found that NPA management of the bank was not well during the last 10 years

the period of the study. In the years 2006-07 to 2009-10 the bank has more than 5 percent

Net NPA it was matter of worry. Apart from this bank has incurred a big loss in the year

2006-07. But at the end of the year 2012-13 the management of the bank has improved and

bank has Net NPA less than zero. Not only this bank having less than 5 percent net NPA in

5 year out of 10 years. It is good thing for the bank that the bank has proved itself to

maintained good NPA position in the critical situation.

From the above table 5.46 and chart 5.7 the researcher can clearly conclude that the

bank has great challenge during 2006-07 to 2009-10. During this period bank has great

difficulty to maintain its NPA in good position due to big loss and mismanagement in the

bank and its various branches. But management of the bank has accepted the challenges

well and brought its net NPA not only at zero level but less than zero. The bank has highest

gross NPA 35.23 percent in the year 2008-09 which had gone down to 9.06 percent at the

end of the year 2012-13 and the highest net NPA 10.68 percent in the year 2006-07 also

reduced to -3.28 percent at the end of the year 2012 -13.

17

.91

13

.82

6.7

6

33

.48

34

.86

35

.23

25

.16

26

.51

14

.77

9.0

6

3.5

6

-2.4

5

-14

.37

10

.68

8.2

1

5.2

4

5.1

2

-4.4

3

-22

.43

-3.2

8

-30.00

-20.00

-10.00

0.00

10.00

20.00

30.00

40.00

20

03

-04

20

04

-05

20

05

-06

20

06

-07

20

07

-08

20

08

-09

20

09

-10

20

10

-11

20

11

-12

20

12

-13

Gro

ss a

nd

Net

NP

A (

%)

Years

Chart 5.7 Gross and Net NPA of RCCB

Gross NPA

Net NPA


4.3 Common Size Statement and Trend Analysis of RCCB:

(I) Common Size Income Statement of RCCB:

Table:5.47

ìn Lakhs

Particulars Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Incomes:





Other Receipts 477.17 97.81 61.55 83.53 51.13 162.76 125.02 72.41 75.82 94.11


Total (A) 2999.56 2464.65 2261.87 1823.12 1745.43 1545.94 1577.21 1462.93 1420.39 1539.94


Expenditures:







Legal fees 3.93 11.14 6.73 4.32 4.23 14.09 4.08 4.40 5.99 1.96











Other expenses 26.31 103.70 98.44 125.68 125.58 61.26 24.98 30.72 35.30 36.33


Other Provisions 675.56 220.03 176.37 753.67 260.21 151.52 343.34 421.88 0.00 0.00


Total Expenses (B) 2880.82 2345.19 2138.13 2631.25 1731.74 1342.97 1535.58 1583.79 1192.47 1207.17


Net Profit (A-B) 118.74 119.46 123.74 -808.13 13.69 202.97 41.63 -120.86 227.92 332.77

Percentage of Total Income 3.96 4.85 5.47 -44.33 0.78 13.13 2.64 -8.26 16.05 21.61

Trend Percentage: 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13



Trend Ratio of Net Profit 100.00 100.61 104.21 -680.59 11.53 170.94 35.06 -101.79 191.95 280.25

(Source: Calculated from the published annual reports of RCCB of last 10 years)



Above table no. 5.47 shows common size analysis of Profit and Loss account of

the RCCB ltd. for 10 years from 2003-04 to 2012-13. From the above table it is clear that

out of the total operating income of the bank major portion covered by the interest and

discount income. During the 10 years period of the study the maximum percentage of

interest and discount income on total operating income was found 96.34 percent and

minimum rate of percentage was 83.28 percent. Average of 10 years interest and discount

income percentage was 92.78 percent. So the researcher can conclude that average annual

operating income of the bank consists, approximately 93 percent interest and discount

income and 7 percent other income.

The above table also state that out of the total operating expenses of the bank

average 58 percent of the total operating income is interest expenditure annually. Average

net profit ratio of the 10 year was 1.59 percentage i.e. percentage of other operating

expenses and provisions average 40.41 percent which includes approx 14 percent of the

total income as employee expenses like salary provident fund etc.

Last portion above table and chart no.5.8 shows the trend percentages of the major

items of profit and loss account. Trend percentage of operating income and operating

expenses show the same kind of trend declining trend. In comparison of 2003-04 in the

year 2012-13 Operating income reduced to 51.34 percent i.e. it reduced by 48.66 percent

-800.00

-600.00

-400.00

-200.00

0.00

200.00

400.00

20

03

-04

20

04

-05

20

05

-06

20

06

-07

20

07

-08

20

08

-09

20

09

-10

20

10

-11

20

11

-12

20

12

-13

Per

cen

tag

e

Years

Chart 5.8 Trend analysis of P/L accounts of RCCB


Operating Income


Operating Expenses



on the other hand operating expenses decreased to 41.90 percent i.e. it reduced by 58.10

percent in 10 years. Expenditure always depends on income as income increase

expenditure also increases and income decrease expenditure also decreases that thing

clearly indicate in the above graph. But the worst thing is percentage of increase in

expenditure is more than percentage of increase in income the result is profitability

decrease. The profit line in the above trend percentage graph shows fluctuating trend from

the first year to the last year of the study period. In comparison of the year 2003-04 profit

percentages increased by 180.25 percent in the year 2012-13. A great downfall has seen in

the profit trend of the bank in the year 2006-07 in comparison of 2003-04 it reduced by

780.59 percent. In the year 2010-11 it again has negative profit but this time it reduced by

101.79 percent as compare to 2003-04. But at last there was good rise in profit trend and it

increase by 180.25 percent at the end of March 2013.

Overall by the observation of above common size income statement and trend

chart the researcher can conclude that overall profitability of the bank maintained well

during last ten years.


(II) Common size Balance sheets of RCCB:

Table 5.48

ìn Lakhs

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Liabilities:

Share Capital (`.25each) 251.99 263.58 263.59 347.59 361.86 360.14 374.68 380.34 569.34 596.60




Deposits 19285.39 18812.20 18690.57 16590.92 10389.77 11345.82 12909.47 11560.61 9943.43 10738.84


Borrowings 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00






Overdue Interest 1297.48 1034.65 225.37 753.32 800.35 805.64 2355.61 2317.21 2152.72 2097.58






Profit and Loss Account 118.74 119.46 123.74 -808.13 -794.45 -591.48 -549.85 -670.71 -433.17 332.77

Percentages of Total Liabilities 0.48 0.49 0.52 -3.65 -4.87 -3.39 -2.85 -3.82 -2.66 1.89


Total 24786.86 24299.25 23785.38 22142.65 16306.46 17441.65 19268.88 17572.17 16277.80 17649.05


Assets:



Call Money 700.00 500.00 300.00 0.00 0.00 0.00 0.00 0.00 300.00 0.00


Investment 5092.99 4150.06 3290.31 3493.53 1729.05 1729.12 2882.17 2882.45 2882.45 2882.45


Advances 10543.55 11014.97 11505.98 11274.43 9984.16 9243.32 6405.42 4370.82 4492.50 5408.99








Other Assets 100.53 435.18 355.32 165.77 506.03 250.35 343.82 319.76 367.94 454.51






Total 24786.86 24299.25 23785.38 22142.65 16306.46 17441.65 19268.88 17572.17 16277.80 17649.05



Trend Percentages:






(Source: Calculated from the published annual reports of RCCB of last 10 years)


0.00

50.00

100.00

150.00

200.00

250.00

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Per

cen

tag

e

Years

Chart 5.9 Trend Analysis of Balance sheets of RCCB


Trend Percentage of Reserve and

SurplusTrend Percentage of Deposits



Above table 5.48 shows common size balance sheet of the RCCB ltd. of last 10

years from 2003-04 to 2012-13. It also includes the trend percentages of major items of

the balance sheet.

From the above analysis it is clear that liabilities side of the balance sheet the most

important items is deposits followed by reserve and surplus. Out of the total funds invested

in the bank’s assets major portion provided by Deposits and Reserve. During the period of

study lowest percentage of reserves found 14.06 in the year 2003-04 and highest 23 in the

years 2011-12. During this period highest percentage of deposits is 78.58 in the year 2005-

06 and lowest percentage 60.85 in the year 2012-13. Overall average 90.55 percent of the

total assets of the bank funded by these two components i.e. share of the other items in the

balance sheet is 10 percent average during last 10 years from 2002-03 to 2012-13. During

the last 10 years bank has no borrowing in its balance sheet. The major liabilities are only

deposits.

On the assets side the major items are as usual in other banks cash & bank balance

investments and advances. Above analysis state that during the period of last 10 years

proportion of cash & bank, investment and advances in total assets on an average 87

percent and proportion of other items in the balance sheet assets side on an average only

13 percent of the total assets during last 10 years. During the period of study highest

percentages of Cash and Bank, Investment and Advances are found 39.93, 20.55 and

61.23 in the year 2011-12, 2003-04 and 2007-08 respectively. On the other hand lowest

percentages are remained 16.75, 9.91 and 24.27 in the year 2007-08, 2008-09 and 2010-11

respectively.

Chart 5.9 shows trend analysis of the major items of balance sheets of RCCB ltd.

of last 10 years. Share capital shows increasing trend as compare to 2003-04 share capital

of the bank increased by 136.26 percent. There were no any decreases in share capital

during the period of study. Reserve and surplus have increasing trend up to 2008-09 than

after it shows decreasing trend till 2012-13. Deposit line in above chart indicate decreasing

trend it bank’s deposits are decrease by 44.32 percent as compare to 2003-04 in the year

2012-13. On the other hand advances shown increasing trend till 2005-06 than after it

shown decreasing trend till 2012-13. Generally banks uses it deposits for the purpose of

providing advances to its customers. Till the years 2005-06 the bank has increasing trend

of advances and decreasing trend of deposits. Due to this controversy bank has critical

situation in the year 2006-07. But then after position has been improved that clearly can be


seen from the above chart no.5.9. Investment also shown decreasing trend in the above

chart as compare to 2003-04 investment decreased to 56.60 percent in the year 2012-13

i.e. it decreased by 43.4 percent.

5. FINANCIAL PERFORMANCE OF ‘THE JIVAN COMMERCIAL

CO-OPERATIVE BANK LTD.’ (JCCB):

5.1 Ratio Analysis of JCCB.


Formula:

Table 5.49

Table showing CDR of JCCB of last 10 years

Year Total Advances

(` in Lakhs)

Total Deposit

(` in Lakhs)

CDR

(%)

2003-04 7351.52 10436.43 70.44

2004-05 8443.82 12078.85 69.91

2005-06 8787.69 11514.93 76.32

2006-07 8879.99 12283.95 72.29

2007-08 8544.08 13151.51 64.97

2008-09 9258.29 13744.54 67.36

2009-10 10599.59 17138.89 61.85

2010-11 12287.84 18072.42 67.99

2011-12 12543.34 19954.14 62.86

2012-13 12950.16 20343.36 63.66

Average 67.77 (Source: Computed from Annual Reports of JCCB of last 10 Years)

From the above table it is clear that bank’s credit deposit ratio remained between

61 to 77 percent. Average of last 10 years CDR is 67.77 percent. It indicates JCCB uses

its deposit on an average 67.77 percentage to give advances to their customers during the

period of study of last 10 years from 2003-04 to 2012-13. Highest deposit used by the

bank to provide loans to its customer in the year 2005-06, which was 76.32 percent of total

deposits and lowest ratio was in the year 2009-10 61.85 percent.


(II) Capital Adequacy Ratio (CAR)/ Capital to Risk (Weighted) Assets Ratio

(CRAR):

Formula:

Table 5.50

Table showing CAR of JCCB of last 10 years


(` in Lakhs)

Tier II Capital

(` in Lakhs)

Total TI+TII

(` in Lakhs)

RWA

(` in Lakhs)

CAR

(%)

2003-04 962.95 21.10 984.05 4352.28 22.61

2004-05 1072.09 22.30 1094.39 6366.43 17.19

2005-06 1144.87 23.40 1168.27 8565.03 13.64

2006-07 920.56 23.51 944.07 6484.00 14.56

2007-08 1267.41 24.02 1291.43 7807.92 16.54

2008-09 1350.71 25.70 1376.41 8570.42 16.06

2009-10 1446.03 25.85 1471.88 9683.42 15.20

2010-11 1574.61 30.80 1605.41 10596.77 15.15

2011-12 1712.20 30.90 1743.10 14125.61 12.34

2012-13 1733.38 40.10 1773.48 14656.86 12.10

Average 15.54

(Source: Computed from Annual Reports of JCCB of last 10 Years)


is 9 percent after 2005. Above table shows CAR of JCCB ltd. in all the years of the study

from 2003-04 to 2012-13 more than 9 percent. It indicates that CAR of the bank is more

than required rate by RBI in all the years. Average CAR of the 10 years period is 15.54

percent it shows financial adequacy of the bank during the period of study. Highest CAR

of the bank found in the year 2003-04 22.61 percent and lowest ratio found in the year

2012-13 12.10 percent.


Formula:


Table 5.51

Table showing IITIR of JCCB of last 10 years

Year Total Interest

(` in Lakhs)

Total Income

(` in Lakhs)

IITIR

(%)

2003-04 1912.48 2007.23 95.28

2004-05 1855.16 1912.75 96.99

2005-06 1682.76 1746.26 96.36

2006-07 1744.02 1812.86 96.20

2007-08 1877.94 1948.57 96.38

2008-09 2114.26 2188.54 96.61

2009-10 2294.14 2410.92 95.16

2010-11 2664.48 2804.75 95.00

2011-12 2365.23 3104.71 76.18

2012-13 2491.58 3330.86 74.80

Average 91.90 (Source: Calculated from Annual Reports of JCCB of last 10 Years)

Above table shows that out of the total income of JCCB on an average 91.90

percent is interest and discount income during last ten years. During the period of study

highest interest income to total income ratio was 96.99 percent in the year 2004-05 and

lowest ratio was found 74.80 percent in the year 2012-13.


Formula:

Table 5.52

Table showing IETER of JCCB of last 10 years


(` in Lakhs)

Total Expenses

(` in Lakhs)

IETER

(%)

2003-04 1224.92 1875.47 65.31

2004-05 1210.19 1778.59 68.04

2005-06 1161.23 1643.51 70.66

2006-07 1164.54 1736.70 67.05

2007-08 1224.34 1865.89 65.62

2008-09 1288.75 2077.84 62.02

2009-10 1496.37 2282.76 65.55

2010-11 1709.14 2659.34 64.27

2011-12 1249.57 2936.16 42.56

2012-13 1414.92 3142.53 45.02



In the above table highest ratio is 70.66 percent and lowest ratio is 42.56 percent in

the year 2005-06 and 2011-12 respectively. Average of 10 years is 61.61percent i.e. on an


total expenses was interest expense on deposits and borrowings. Average interest income

ratio is 92 percent against it average interest expenses ratio 62 percent it mention that on

an average during the above 10 years 30 percent was interest margin earned by the bank.


Formula:

Table 5.53

Table showing NPNAR of JCCB of last 10 years

Year Net Profit

(` in Lakhs)

Net Assets

(` in Lakhs)

NPNAR

(%)

2003-04 131.76 1876.04 7.02

2004-05 134.16 1961.01 6.84

2005-06 102.75 2052.64 5.01

2006-07 76.16 2276.68 3.35

2007-08 82.68 2343.06 3.53

2008-09 110.70 2578.84 4.29

2009-10 128.16 2644.77 4.85

2010-11 145.41 2779.06 5.23

2011-12 168.55 2866.00 5.88

2012-13 188.33 2952.03 6.38



and minimum NPNAR was 3.35 percent in the year 2006-07.On an average during the last

10 years banks has 5.24 percent NPNAR. From the above table it is clear that the NPNAR

not continuously increase or continuously decrease but is remained in fluctuating position.


Formula:


Table 5.54

Table showing EPS of JCCB of last 10 years

Year Net Profit

(` in Lakhs)

No. of Equity

Share (in Lakhs)

EPS

(`)

2003-04 131.76 10.79 12.22

2004-05 134.16 12.42 10.80

2005-06 102.75 13.39 7.67

2006-07 76.16 14.41 5.29

2007-08 82.68 14.59 5.67

2008-09 110.70 15.77 7.02

2009-10 128.16 17.51 7.32

2010-11 145.41 20.34 7.15

2011-12 168.55 20.90 8.07

2012-13 188.33 21.27 8.85


EPS of the JCCB was remained `8.01 per share on an average during last 10

years. Maximum EPS earned by the bank in the year 2003-04 `12.22 per share and

minimum EPS earned by the bank `5.29 in the year 2006-07. Bank has earned average `8

per share annually against the equity share of `25 i.e. 32 percent.


Formula:

Working Fund = Total assets – Bills Receivable and other contra entry

Table 5.55

Table showing IIAWFR of JCCB of last 10 years

Year Total Interest

(` in Lakhs)

AWF

(` in Lakhs)

IIAWFR

(%)

2003-04 1912.48 13326.81 14.35

2004-05 1855.16 14189.71 13.07

2005-06 1682.76 14803.99 11.37

2006-07 1744.02 14949.87 11.67

2007-08 1877.94 15829.39 11.86

2008-09 2114.26 16718.53 12.65

2009-10 2294.14 18875.01 12.15

2010-11 2664.48 21231.56 12.55

2011-12 2365.23 22930.25 10.31

2012-13 2491.58 24276.85 10.26




average working fund ratio was 14.35 percent in the year 2003-04 and lowest ratio was

10.26 percent in the year 2012-13. On an average bank has 12.02 percent ratio of interest

income to average working fund annually during last 10 years from 2003-04 to 2012-13.


Formula:

Table 5.56

Table showing IEAWFR of JCCB of last 10 years


(` in Lakhs)

AWF

(` in Lakhs)

IEAWFR

(%)

2003-04 1224.92 13326.81 9.19

2004-05 1210.19 14189.71 8.53

2005-06 1161.23 14803.99 7.84

2006-07 1164.54 14949.87 7.79

2007-08 1224.34 15829.39 7.73

2008-09 1288.75 16718.53 7.71

2009-10 1496.37 18875.01 7.93

2010-11 1709.14 21231.56 8.05

2011-12 1249.57 22930.25 5.45

2012-13 1414.92 24276.85 5.83



working fund ratio was found 9.19 percent and lowest ratio was 5.45 percent in the year


expenses to average working fund annually. Interest income ratio average 12 percent

against it average interest expense ratio 7.61 percent of last ten years of bank suggests that

bank has earning gap of interest 4.39 percent on average working fund.


Formula:


Table 5.57

Table showing GPAWFR of JCCB of last 10 years

Year Gross Profit

(` in Lakhs)

AWF

(` in Lakhs)

GPAWFR

(%)

2003-04 462.94 13326.81 3.47

2004-05 314.69 14189.71 2.22

2005-06 182.75 14803.99 1.23

2006-07 214.43 14949.87 1.43

2007-08 225.49 15829.39 1.42

2008-09 328.16 16718.53 1.96

2009-10 257.16 18875.01 1.36

2010-11 434.93 21231.56 2.05

2011-12 493.90 22930.25 2.15

2012-13 427.23 24276.85 1.76


Above table shows that the highest GPAWFR of the bank is 3.47 percent in the

year 2003-04 and lowest ratio is 1.23 percent in the year 2005-06. Average GPAWFR

remained 1.91 of last 10 years from 2003-04 to 2012-13.


Formula:

Table 5.58

Table showing NPAWFR of JCCB of last 10 years

Year Net Profit

(` in Lakhs)

AWF

(` in Lakhs)

NPAWFR

(%)

2003-04 131.76 13326.81 0.99

2004-05 134.16 14189.71 0.95

2005-06 102.75 14803.99 0.69

2006-07 76.16 14949.87 0.51

2007-08 82.68 15829.39 0.52

2008-09 110.70 16718.53 0.66

2009-10 128.16 18875.01 0.68

2010-11 145.41 21231.56 0.68

2011-12 168.55 22930.25 0.74

2012-13 188.33 24276.85 0.78



Above table shows that the highest NPAWFR of the bank is 0.99 percent in the

year 2003-04, and lowest 0.51 percent in the year 2006-07 and average NPAWFR of the

bank 0.72 percent of last 10 years from 2003-04 to 2012-13 i.e. bank has earned 0.72

percent of its average working fund as net profit during last 10 years the period of study.


Formula:

Table 5.59

Table showing ECAWFR of JCCB of last 10 years

Year Employee exp.

(` in Lakhs)

AWF

(` in Lakhs)

ECAWFR

(%)

2003-04 256.86 13326.81 1.93

2004-05 288.19 14189.71 2.03

2005-06 293.26 14803.99 1.98

2006-07 316.08 14949.87 2.11

2007-08 341.42 15829.39 2.16

2008-09 420.96 16718.53 2.52

2009-10 452.02 18875.01 2.39

2010-11 464.54 21231.56 2.19

2011-12 482.26 22930.25 2.10

2012-13 540.81 24276.85 2.23


From the above table showing ratios of employee’s cost to average working fund

of last 10 years of the bank it is clear that average employee’s cost of the bank on average




Formula:


Table 5.60

Table showing CoDR of JCCB of last 10 years


(` in Lakhs)

Average Deposits

(` in Lakhs)

CoDR

(%)

2003-04 1224.92 10044.26 12.20

2004-05 1210.19 11257.64 10.75

2005-06 1161.23 11796.89 9.84

2006-07 1164.54 11899.44 9.79

2007-08 1224.34 12717.73 9.63

2008-09 1288.75 13448.03 9.58

2009-10 1496.37 15441.72 9.69

2010-11 1709.14 17605.66 9.71

2011-12 1249.57 19013.28 6.57

2012-13 1414.92 20148.75 7.02

Average 9.48 (Source: Calculated from Annual Reports of JCCB of last 10 Years)

From the above table it was found that the percentages of Interest on Average

Deposits during last 10 years maximum 12.20 percent in the year 2003-04 and minimum

6.57 percent in the year 2011-12 and average cost of deposits last 10 years of the bank

remained 9.48 percent. Apart from this the researcher can clearly observed that the cost of

deposit ratio continuously decrease from 2003-04 to 2011-12 and in the year 2012-13 was

slightly increase.

(XIII) Summary of the above Ratios of JCCB:

Table 5.61

A summary of all the ratios of JCCB Calculated above

Yea

rs

CD

R (%

)

CA

R (%

)

IITIR

(%)

IET

ER

(%)

NP

NA

R (%

)

EP

S (`

)

IIAW

FR

(%)

IEA

WF

R (%

)

GP

AW

FR

(%)

NP

AW

FR

(%)

EC

AW

FR

(%)

CO

DR

(%)

03-04 70.44 22.61 95.28 65.31 7.02 12.22 14.35 9.19 3.47 0.99 1.93 12.20

04-05 69.91 17.19 96.99 68.04 6.84 10.80 13.07 8.53 2.22 0.95 2.03 10.75

05-06 76.32 13.64 96.36 70.66 5.01 7.67 11.37 7.84 1.23 0.69 1.98 9.84

06-07 72.29 14.56 96.20 67.05 3.35 5.29 11.67 7.79 1.43 0.51 2.11 9.79

07-08 64.97 16.54 96.38 65.62 3.53 5.67 11.86 7.73 1.42 0.52 2.16 9.63

08-09 67.36 16.06 96.61 62.02 4.29 7.02 12.65 7.71 1.96 0.66 2.52 9.58

09-10 61.85 15.20 95.16 65.55 4.85 7.32 12.15 7.93 1.36 0.68 2.39 9.69

10-11 67.99 15.15 95.00 64.27 5.23 7.15 12.55 8.05 2.05 0.68 2.19 9.71

11-12 62.86 12.34 76.18 42.56 5.88 8.07 10.31 5.45 2.15 0.74 2.10 6.57

12-13 63.66 12.10 74.80 45.02 6.38 8.85 10.26 5.83 1.76 0.78 2.23 7.02

Avg. 67.77 15.54 91.90 61.61 5.24 8.01 12.02 7.61 1.91 0.72 2.16 9.48


5.2 NPA Management of the JCCB:

Table 5.62

Table showing NPA Management of JCCB of last 10 years

Yea

rs

Tota

l

Ad

van

ces

(` i

n L

ak

hs)

Gro

ss N

PA

(` i

n L

ak

hs)

Gro

ss N

PA

(%) Total Provision

(ìn Lakhs)

NE

T N

PA

(ìn

La

kh

s)

NE

T N

PA

(%)

1 2 1/2x100 Std.

Assets NPA

Total

SA+NPA

03-04 7351.52 2112.59 28.74 49.34 849.42 898.76 1213.83 18.81

04-05 8443.82 1360.75 16.12 50.74 790.34 841.08 519.67 6.84

05-06 8787.69 1094.91 12.46 56.74 727.37 784.11 310.80 3.88

06-07 8879.99 1201.03 13.53 63.01 775.12 838.13 362.90 4.51

07-08 8544.08 973.83 11.40 68.04 759.97 828.01 145.82 1.89

08-09 9258.29 938.52 10.14 100.00 853.29 953.29 -14.77 -0.18

09-10 10599.59 882.24 8.32 100.00 814.54 914.54 -32.30 -0.33

10-11 12287.84 808.16 6.58 100.77 641.63 742.4 65.76 0.57

11-12 12543.34 744.89 5.94 103.40 648.66 752.06 -7.17 -0.06

12-13 12950.16 704.21 5.44 103.40 645.92 749.32 -45.11 -0.37

(Calculated from the information available in annual reports of the Bank)

In the above table Net NPA in (`) and NET NPA in (%) calculated as under

28

.74

16

.12

12

.46

13

.53

11

.40

10

.14

8.3

2

6.5

8

5.9

4

5.4

4

18

.81

6.8

4

3.8

8

4.5

1

1.8

9

-0.1

8

-0.3

3

0.5

7

-0.0

6

-0.3

7

-5.00

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

Gro

ss a

nd

Net

NP

A (

%)

Years

Chart 5.10 Gross and Net NPA of JCCB

Gross NPA

Net NPA


Above table no. 5.62 and chart no.5.10 shows Gross NPA and Net NPA of

selected CCOBs of Gujarat state.

As per recent guidelines of RBI Net NPA should be less than 5 percent to pay

dividend and Gross NPA should be less than 10 percent to avoid supervisory actions from

RBI. From the above table 5.61 and chart 5.10 the researcher can observed that Gross

NPA of JCCB more than 10 percent in the year 2003-04 to 2008-09 than after it was less

than 10 percent till 2012-13 the last year of the period of the study. The researcher found

that NPA management of the bank was well during the last 10 years the period of the

study. Net NPA of the bank found more than 5 percent in the years 2003-04 and 2004-05

only than after it was found less than 5 percent. Apart from this gross NPA of the bank has

decreased continuously.

Gross NPA of the bank 28.74 percent in the year 2003-04 it was decreased to

5.44 percent in the year 2012-13. Bank has maintained sufficient reserve to overcome the

problem of NPA every year. From the above table and chart the researcher found that the

Net NPA of the bank less than zero in the year 2008-09, 2009-10, 2011-12 and 2012-13.

In the year 2010-11 it was 0.57 percent only. It was also found from the above table that

Net NPA of the bank continuously decrease in the year 2003-04 Net NPA of the bank was

18.81 percent which was decreased to -0.37 in the year 2012-13.

From the above discussion and observation of chart and table the researcher

can conclude that the NPA management of the bank found good during the period of the

study from 2003-04 to 2012-13. Bank has maintained not only enough but more than

enough provision against standard assets and non performing assets of the bank according

to the rules and regulation suggested by RBI time to time.


5.3 Common Size Statement and Trend Analysis of JCCB:

(I) Common Size Income Statement of JCCB:

Table:5.63

ìn Lakhs


Incomes:





Other Receipts 79.75 45.52 49.87 51.02 52.39 61.45 110.43 132.74 732.23 828.32


Total (A) 2007.23 1912.75 1746.26 1812.86 1948.57 2188.54 2410.92 2804.75 3104.71 3330.86


Expenditures:









Legal fees 3.64 3.27 1.74 1.55 6.68 4.27 2.52 2.33 5.49 3.62











Other expenses 14.13 45.75 27.86 39.96 62.52 55.38 111.83 99.63 776.28 837.70




Total Expenses (B) 1875.47 1778.59 1643.51 1736.70 1865.89 2077.84 2282.76 2659.34 2936.16 3142.53


Net Profit (A-B) 131.76 134.16 102.75 76.16 82.68 110.70 128.16 145.41 168.55 188.33






(Source: Calculated from the published annual reports of JCCB Ltd. Rajkot of last 10 years)



Above table 5.63 shows Common Size Analysis of Income Statement (profit and

loss account) of Jivan Commercial Co-operative Bank Ltd. Rajkot for 10 years from 2003-

04 to 2013-14 and it also shows Trend Analysis of Total Operating Income, Total

Operating Expenses and Net Profit of JCCB ltd. Rajkot for the same period mentioned

above. Chart 5.11 shows graphical presentation of trend analysis as shown in the table

no.5.63.

From the above Common Size Analysis of bank’s profit and loss account the

researcher observed that out of the total operating income of the bank the major income is

interest and discount income. During the last 10 years average interest income was

remained 91.9 percent of the total operating income. Highest percentage interest and

discount income with total operating income was found during the period of study 96.99

percent in the year 2004-05 and lowest percentage found 74.80. Share of other income in

total operating income was found during the period of study on an average 8.1 percent.

Interest and discount income of the bank remained more than 95 percent from 2003-04 to

2010-11 only in last two years of the period of study in 2011-12 and 2012-13 it was 76.1

and 74.80 respectively.

Average percentage of total operating expenses including various provisions on

total operating income was found 94.54 percent during the period of study. And therefore

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00P

erce

nta

ge

Years

Chart 5.11 Trend analysis of P/L accounts of JCCB


Operating Income


Operating Expenses



average net profit during the period of study was found 5.45 percent of the total operating

income. Major expenses of the bank were interest on deposit and borrowing and

employee’s related expenses like salary, provident fund etc. Average interest expenses

during the period of study were 58. 25 percent of the total income and average employee

related expenses were 16.59 percent of the total income. With the help of this statistic the

researcher can conclude that overall 75 percent of the total income was interest expenses

and salary and other expenses while 25 percent of the total operating income includes

other operating expenditure and provisions in the bank.

From the above table 5.63 the researcher also seen that average percentage of net

profit during the period of study was remained 5.46 percent of total operating income of

the bank. The highest net profit to total operating income percentage was found during last

10 years was 7.01 percent in the year 2004-05 and lowest percentage was found in the year

2006-07 4.20 percent.

From the trend analysis of the bank’s profit and loss account shown in the above

table and chart the researcher can conclude that all the three items total operating income,

total operating expenses and net profit shown decreasing trend from 2003-04 to 2007-08

and then after it shown increasing trend till 2012-13. From the above chart 5.11 it is clear

that expenses and profit increase with increase in income and vice versa. The difference

between Operating income and Operating expenses is profit to increases the profit bank

should control the operating expenses and try to increase the operating income so

automatically profit margin increases.

There is a positive correlation between Operating income and Operating expenses

and Operating income and Net profit of the bank. Correlation coefficient between

operating income and operating expenses determined 0.99 and correlation coefficient

between operating income and net profit determined 0.87. So the researcher can conclude

that net profit and expenses are correlated with operating income and also depend on

operating income.


(II) Common size Balance sheets of JCCB:

Table 5.64

ìn Lakhs

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Liabilities:

Share Capital (`25each) 269.65 310.48 334.87 360.21 364.86 394.33 437.83 508.59 522.45 531.80




Deposits 10436.43 12078.85 11514.93 12283.95 13151.51 13744.54 17138.89 18072.42 19954.14 20343.36


Borrowings 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00






Overdue Interest Prov. 691.80 747.76 706.70 616.93 597.24 596.74 585.60 3099.99 3411.76 3776.14









Total 13350.52 15148.14 14567.86 15406.90 16339.16 17173.22 20626.02 24437.62 26847.49 27787.20


Assets:



Call Money 400.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Investment 2183.48 2936.62 2664.12 2664.12 2644.12 2644.13 3096.98 4485.59 4879.86 5129.03


Advances 7351.52 8443.82 8787.69 8879.99 8544.08 9258.29 10599.59 12287.84 12543.34 12950.16








Other Assets 135.38 255.43 28.15 55.33 58.92 60.95 85.96 82.34 122.80 218.25






Total 13350.52 15148.14 14567.86 15406.90 16339.16 17173.22 20626.02 24437.62 26847.49 27787.20



Trend Percentages:






(Source: Calculated from the published annual reports of JCCB ltd. Rajkot of last 10 years)


0.00

50.00

100.00

150.00

200.00

250.00

Per

cen

tag

e

Years

Chart 5.12 Trend Analysis of Balance sheets of JCCB


Trend Percentage of Reserve and Surplus



Trend Percentage of Investments


Above table 5.64 shows common size Balance sheet of The Jivan Commercial

Cooperative Bank Ltd. Rajkot of last 10 years from 2003-04 to 2012-13. It also includes

the trend percentages of major items of the balance sheet. Chart 5.12 shows graphical

presentation of the trend percentage shown in the table 5.64.

From the above Common Size Analysis it is clear that liabilities side of the

balance sheet the most important items is deposits followed by reserve and surplus. Out

of the total funds invested in the bank’s assets major portion provided by Deposits and

Reserve. During the period of study lowest percentage of reserves found 8.71 in the year

2012-13 and highest 12.72 percent in the years 2008-09. During this period highest

percentage of deposits was 83.09 in the year 2009-10 and lowest percentage 73.21 in the

year 2012-13. Overall average 89.12 percent of the total assets of the bank funded by

these two components i.e. share of the other items in the balance sheet was 10.88 percent

average during last 10 years from 2002-03 to 2012-13. During the last 10 years bank has

no borrowing in its balance sheet. The major liabilities in the bank were only deposits.

On the assets side the major items are as usual in other banks cash & bank

balance investments and advances. Above Common size analysis of the balance sheet of

the JCCB Ltd. Rajkot state that during the period of last 10 years proportion of cash &

bank, investment and advances in total assets on an average 91 percent and proportion of

other items in the balance sheet assets side on an average only 9 percent of the total

assets during last 10 years. During the period of study highest percentages of Cash and

Bank, Investment and Advances are found 28.66, 19.39 and 60.32 in the year 2009-10,

2004-05 and 2005-06 respectively. On the other hand lowest percentages are remained

13.68, 15.01 and 46.60 in the year 2005-06, 2009-10 and 2012-13 respectively.

Chart 5.12 shows trend analysis of the major items of balance sheets of JCCB ltd.

Rajkot of last 10 years. Share capital shows continuous increasing trend as compare to

2003-04 share capital of the bank increased by 97.22 percent in the year 2012-13. There

were no any decreases in share capital during the period of study. Reserve and surplus

also have continuous increasing trend as compare to 2003-04 reserves and surplus of the

bank increased by 50.56 percent in the year 2012-13. Deposit line in above chart no. 5.12

indicate increasing trend, bank’s deposits were increased by 94.93 percent as compare to

2003-04 in the year 2012-13. In the year 2005-06 deposits were slightly decreased but

overall it was upward trend. On the other hand advances of the bank also shown

increasing trend till 2012-13. As compare to the year 2003-04 advances of the bank


increased by 76.16 percent in the year 2012-13. Generally banks uses it deposits for the

purpose of providing advances to its customers. In this bank advances and deposits both

showing increasing trend it indicate as deposits of the banks increase bank use it to

provide advances to its customers i.e. banks uses its deposits well to provides loan to its

customer it increase its profitability positively. Investments of the bank shown mixed

trend during the period of the study. As compare to the year 2003-04 it increase in the

year 2004-05 by 34.49 percent then after in the year 2005-06 it decrease and it remained

stable till the year 2008-09. From the year 2009-10 it start increasing till the year 2012-

13 it increased by 134.90 percent at the end of the year 2012-13.

6. FINANCIAL PERFORMANCE OF ‘THE VIJAY COMMERCIAL

CO-OPERATIVE BANK LTD.’ (VCCB):

6.1 Ratio Analysis of VCCB.


Formula:

Table 5.65

Table showing CDR of VCCB of last 10 years

Year Total Advances

(` in Lakhs)

Total Deposit

(` in Lakhs)

CDR

(%)

2003-04 3107.51 4613.71 67.35

2004-05 3220.91 4826.86 66.73

2005-06 3637.11 5753.73 63.21

2006-07 4192.97 6607.73 63.46

2007-08 4451.29 7140.00 62.34

2008-09 4755.43 7355.45 64.65

2009-10 4759.68 8307.95 57.29

2010-11 4043.64 7649.71 52.86

2011-12 4115.82 7439.67 55.32

2012-13 4152.48 7498.34 55.38

Average 60.86 (Source: Computed from Annual Reports of VCCB of last 10 Years)

From the above table it is clear that bank’s credit deposit ratio remain between

52.86 to 67.35 percent. Average percentage of last 10 years CDR was 60.86. It indicates


VCCB uses its deposits on an average 61 percentage to give advances to their customers

during the period of study of last 10 years from 2003-04 to 2012-13. Highest deposit

used by the bank to provide loans to its customer in the year 2003-04, which was 67.35

percent of total deposits and lowest ratio was in the year 2010-11, 52.86 percent.


(CRAR):

Formula:

Table 5.66

Table showing CAR of VCCB of last 10 years


(` in Lakhs)

Tier II Capital

(` in Lakhs)

Total TI+TII

(` in Lakhs)

RWA

(` in Lakhs)

CAR

(%)

2003-04 507.69 22.56 530.25 4429.82 11.97

2004-05 560.84 23.12 583.96 4736.09 12.33

2005-06 517.09 23.41 540.50 4310.21 12.54

2006-07 515.69 20.51 536.20 3797.45 14.12

2007-08 548.92 24.87 573.79 3772.45 15.21

2008-09 551.74 25.47 577.21 3820.05 15.11

2009-10 571.71 26.11 597.82 3358.54 17.80

2010-11 578.66 30.21 608.87 3303.69 18.43

2011-12 604.27 31.46 635.73 3153.42 20.16

2012-13 749.51 40.22 789.73 3240.58 24.37

Average 16.20

(Source: Computed from Annual Reports of VCCB of last 10 Years)

According to RBI and Basel committee report minimum CAR require for any

Urban Co-operative Bank is 9 percent after 2005. Above table shows CAR of VCCB ltd.

Rajkot in all the years of the period of study from 2003-04 to 2012-13 more than 9

percent. It indicates that CAR of the bank was more than required rate by RBI in all the

years. Average CAR of the 10 years period was 16.20 percent it shows good financial

adequacy of the bank during the period of study. From the above table 5.66 the

researcher can clearly observed that CAR of the bank continuously increase in the year

2003-04 it was 11.97 percent and it increased to 24.37 percent in the year 2012-13.


Formula:


Table 5.67

Table showing IITIR of VCCB of last 10 years

Year Total Interest

(` in Lakhs)

Total Income

(` in Lakhs)

IITIR

(%)

2003-04 481.06 504.18 95.41

2004-05 529.85 565.48 93.70

2005-06 618.31 640.77 96.49

2006-07 721.20 750.76 96.06

2007-08 807.90 837.93 96.42

2008-09 821.25 860.98 95.39

2009-10 845.40 896.26 94.33

2010-11 826.94 873.01 94.72

2011-12 947.01 997.45 94.94

2012-13 1001.69 1040.75 96.25

Average 95.37 (Source: Calculated from Annual Reports of VCCB of last 10 Years)

Above table shows that out of the total income of VCCB Ltd. Rajkot on an

average 95.37 percent income was interest and discount income during last ten years

from 2003-04 to 2012-13. During the period of the study highest interest income to total

income ratio was 96.49 percent in the year 2005-06 and lowest ratio was 93.70 percent in

the year 2004-05.


Formula:

Table 5.68

Table showing IETER of VCCB of last 10 years


(` in Lakhs)

Total Expenses

(` in Lakhs)

IETER

(%)

2003-04 300.21 424.46 70.73

2004-05 325.47 474.24 68.63

2005-06 421.2 600.45 70.15

2006-07 523.11 727.24 71.93

2007-08 583.2 798.55 73.03

2008-09 633.5 845.05 74.97

2009-10 645.33 866.02 74.52

2010-11 613.17 852.51 71.93

2011-12 568.96 964.96 58.96

2012-13 597.76 981.12 60.93



In the above table the highest ratio is 74.97 percent and lowest ratio is 58.96

percent in the year 2008-09 and 2011-12 respectively. Average of 10 years ratio was

69.58 percent i.e. on an average during last 10 years out of total expenses of the bank

around 70 percent portion of total expenses was interest expense on deposits and

borrowings. Average interest income ratio is 95 percent against it average interest

expenses ratio 70 percent it mention that on an average during the above 10 years 20

percent was interest margin earned by the bank.


Formula:

Table 5.69

Table showing NPNAR of VCCB of last 10 years

Year Net Profit

(` in Lakhs)

Net Assets

(` in Lakhs)

NPNAR

(%)

2003-04 79.72 964.40 8.27

2004-05 91.24 1057.56 8.63

2005-06 40.32 1048.02 3.85

2006-07 23.52 1055.19 2.23

2007-08 39.38 1066.24 3.69

2008-09 15.93 1073.18 1.48

2009-10 30.24 1067.07 2.83

2010-11 20.50 1091.81 1.88

2011-12 32.49 1086.70 2.99

2012-13 59.63 1120.71 5.32



and minimum NPNAR was 1.48 percent in the year 2008-09. On an average during the

last 10 years banks has 4.12 percent NPNAR. From the above table it is clear that the

NPNAR of the bank, neither increase nor decrease continuously but it remained in

fluctuating position during last ten years the period of the study.


Formula:


Table 5.70

Table showing EPS of VCCB of last 10 years

Year Net Profit

(` in Lakhs)

No. of Equity

Share (in Lakhs)

EPS

(`)

2003-04 79.72 1.14 69.67

2004-05 91.24 1.22 74.55

2005-06 40.32 1.26 32.04

2006-07 23.52 1.34 17.59

2007-08 39.38 1.44 27.34

2008-09 15.93 1.48 10.73

2009-10 30.24 1.37 22.00

2010-11 20.50 1.37 14.95

2011-12 32.49 1.37 23.72

2012-13 59.63 1.39 42.94

Average 33.55


EPS of The VCCB Ltd. Rajkot found `33.55 per share on an average during

last 10 years. Maximum EPS earned by the bank in the year 2004-05 `74.55 per share

and minimum EPS earned by the bank `10.73 in the year 2008-09. Bank has earned

average `33.55 per share annually against the equity share of `100 i.e. 33.55 percent.


Formula:

Working Fund = Total assets – Bills Receivable and other contra entries

Table 5.71

Table showing IIAWFR of VCCB of last 10 years

Year Total Interest

(` in Lakhs)

AWF

(` in Lakhs)

IIAWFR

(%)

2003-04 481.06 5750.60 8.37

2004-05 529.85 5908.93 8.97

2005-06 618.31 6503.36 9.51

2006-07 721.20 7357.02 9.80

2007-08 807.90 8057.83 10.03

2008-09 821.25 8440.48 9.73

2009-10 845.40 9023.10 9.37

2010-11 826.94 9342.17 8.85

2011-12 947.01 8476.75 11.17

2012-13 1001.69 8342.02 12.01

Average 9.78




average working fund ratio is 12.01 percent in the year 2012-13 and lowest ratio is 8.37

percent in the year 2003-04. On an average bank has 9.78 percent ratio of interest income

to average working fund annually during last 10 years from 2003-04 to 2012-13.


Formula:

Table 5.72

Table showing IEAWFR of VCCB of last 10 years


(` in Lakhs)

AWF

(` in Lakhs)

IEAWFR

(%)

2003-04 300.21 5750.60 5.22

2004-05 325.47 5908.93 5.51

2005-06 421.20 6503.36 6.48

2006-07 523.11 7357.02 7.11

2007-08 583.20 8057.83 7.24

2008-09 633.50 8440.48 7.51

2009-10 645.33 9023.10 7.15

2010-11 613.17 9342.17 6.56

2011-12 568.96 8476.75 6.71

2012-13 597.76 8342.02 7.17



working fund ratio is found 7.51 percent and lowest ratio is 5.22 percent in the year


expenses to average working fund annually. Interest income ratio average 9.78 percent

against it average interest expense ratio 6.67 percent of last ten years of bank suggests

that bank has earning gap of interest 3.11 percent on average working fund.


Formula:


Table 5.73

Table showing GPAWFR of VCCB of last 10 years

Year Gross Profit

(` in Lakhs)

AWF

(` in Lakhs)

GPAWFR

(%)

2003-04 99.52 5750.60 1.73

2004-05 111.25 5908.93 1.88

2005-06 61.32 6503.36 0.94

2006-07 45.08 7357.02 0.61

2007-08 62.88 8057.83 0.78

2008-09 26.25 8440.48 0.31

2009-10 56.25 9023.10 0.62

2010-11 44.96 9342.17 0.48

2011-12 45.36 8476.75 0.54

2012-13 93.63 8342.02 1.12


Above table shows that the highest GPAWFR of the bank was 1.88 percent in the

year 2004-05 and lowest ratio was 0.31 percent in the year 2008-09. Average GPAWFR

of the bank remained 0.90 of last 10 years from 2003-04 to 2012-13.


Formula:

Table 5.74

Table showing NPAWFR of VCCB of last 10 years

Year Net Profit

(` in Lakhs)

AWF

(` in Lakhs)

NPAWFR

(%)

2003-04 79.72 5750.60 1.39

2004-05 91.24 5908.93 1.54

2005-06 40.32 6503.36 0.62

2006-07 23.52 7357.02 0.32

2007-08 39.38 8057.83 0.49

2008-09 15.93 8440.48 0.19

2009-10 30.24 9023.10 0.34

2010-11 20.50 9342.17 0.22

2011-12 32.49 8476.75 0.38

2012-13 59.63 8342.02 0.71





bank 0.62 percent of last 10 years from 2003-04 to 2012-13 i.e. bank has earned average

0.62 percent of its average working fund as net profit during last 10 years the period of

study.


Formula:

Table 5.75

Table showing ECAWFR of VCCB of last 10 years

Year Employee exp.

(` in Lakhs)

AWF

(` in Lakhs)

ECAWFR

(%)

2003-04 69.23 5750.60 1.20

2004-05 75.40 5908.93 1.28

2005-06 87.12 6503.36 1.34

2006-07 98.05 7357.02 1.33

2007-08 99.04 8057.83 1.23

2008-09 105.70 8440.48 1.25

2009-10 102.30 9023.10 1.13

2010-11 125.02 9342.17 1.34

2011-12 135.63 8476.75 1.60

2012-13 131.31 8342.02 1.57


From the above table, showing ratios of employee cost to average working fund

of last 10 years of the bank it is clear that average employee cost of the bank on average




Formula:


Table 5.76

Table showing CoDR of VCCB of last 10 years


(` in Lakhs)

Average Deposits

(` in Lakhs)

CoDR

(%)

2003-04 300.21 4613.71 6.51

2004-05 325.47 4720.29 6.90

2005-06 421.20 5290.30 7.96

2006-07 523.11 6180.73 8.46

2007-08 583.20 6873.87 8.48

2008-09 633.50 7247.73 8.74

2009-10 645.33 7831.70 8.24

2010-11 613.17 7978.83 7.68

2011-12 568.96 7544.69 7.54

2012-13 597.76 7469.01 8.00

Average 7.85 (Source: Calculated from Annual Reports of VCCB of last 10 Years)


Deposits during last 10 years Maximum 8.74 percent in the year 2008-09 and minimum


remained 7.85 percent.

(XIII) Summary of the above Ratios of VCCB:

Table 5.77

A summary of all the ratios of VCCB Calculated above Y

ears

CD

R (%

)

CA

R (%

)

IITIR

(%)

IET

ER

(%)

NP

NA

R (%

)

EP

S (`

)

IIAW

FR

(%)

IEA

WF

R (%

)

GP

AW

FR

(%)

NP

AW

FR

(%)

EC

AW

FR

(%)

CO

DR

(%)

03-04 67.35 11.97 95.41 70.73 8.27 69.67 8.37 5.22 1.73 1.39 1.20 6.51

04-05 66.73 12.33 93.70 68.63 8.63 74.55 8.97 5.51 1.88 1.54 1.28 6.90

05-06 63.21 12.54 96.49 70.15 3.85 32.04 9.51 6.48 0.94 0.62 1.34 7.96

06-07 63.46 14.12 96.06 71.93 2.23 17.59 9.80 7.11 0.61 0.32 1.33 8.46

07-08 62.34 15.21 96.42 73.03 3.69 27.34 10.03 7.24 0.78 0.49 1.23 8.48

08-09 64.65 15.11 95.39 74.97 1.48 10.73 9.73 7.51 0.31 0.19 1.25 8.74

09-10 57.29 17.80 94.33 74.52 2.83 22.00 9.37 7.15 0.62 0.34 1.13 8.24

10-11 52.86 18.43 94.72 71.93 1.88 14.95 8.85 6.56 0.48 0.22 1.34 7.68

11-12 55.32 20.16 94.94 58.96 2.99 23.72 11.17 6.71 0.54 0.38 1.60 7.54

12-13 55.38 24.37 96.25 60.93 5.32 42.94 12.01 7.17 1.12 0.71 1.57 8.00

Avg. 60.86 16.20 95.37 69.58 4.12 33.55 9.78 6.67 0.90 0.62 1.33 7.85


6.2 NPA Management of the VCCB:

Table 5.78

Table showing NPA Management of VCCB of last 10 years

Yea

rs

Tota

l

Ad

van

ces

(` i

n L

ak

hs)

Gro

ss N

PA

(` i

n L

ak

hs)

Gro

ss N

PA

(%) Total Provision

(ìn Lakhs)

NE

T N

PA

(ìn

La

kh

s)

NE

T N

PA

(%)

1 2 1/2x100 Std.

Assets NPA

Total

SA+NPA

03-04 3107.51 612.54 19.71 8.57 234.5 243.07 369.47 12.90

04-05 3220.91 721.80 22.41 9.02 252.3 261.32 460.48 15.56

05-06 3637.11 740.18 20.35 9.52 295.56 305.08 435.10 13.06

06-07 4192.97 810.32 19.33 10.11 310.44 320.55 489.77 12.65

07-08 4451.29 690.15 15.50 10.38 345.84 356.22 333.93 8.15

08-09 4755.43 598.14 12.58 11.40 360.74 372.14 226.00 5.16

09-10 4759.68 561.58 11.80 12.33 414.78 427.11 134.47 3.10

10-11 4043.64 418.46 10.35 14.13 464.94 479.07 -60.61 -1.70

11-12 4115.82 336.81 8.18 19.13 464.94 484.07 -147.26 -4.05

12-13 4152.48 257.89 6.21 24.13 364.94 389.07 -131.18 -3.49



19

.71 22

.41

20

.35

19

.33

15

.50

12

.58

11

.80

10

.35

8.1

8

6.2

1

12

.90 15

.56

13

.06

12

.65

8.1

5

5.1

6

3.1

0

-1.7

0

-4.0

5

-3.4

9

-10.00

-5.00

0.00

5.00

10.00

15.00

20.00

25.00

Gro

ss a

nd

Net

NP

A (

%)

Years

Chart 5.13 Gross and Net NPA of VCCB

Gross NPA

Net NPA


Above table no. 5.78 and chart no. 5.13 shows the Non Performing Assets

management of the bank during the period of the study from the year 2003-04 to 2012-

13. It shows Gross NPA, Net NPA in amount and in percentage. It also shown provision

maintain by the bank against NPA.

As per recent guidelines from RBI Net NPA should be less than 5 percent to

pay dividend and Gross NPA should be less than 10% to avoid supervisory action from


NPA of VCCB more than 10 percent in the year 2003-04 to 2010-11 than after it was

less than 10 percent till 2012-13 the last year of the period of the study. The researcher

found that NPA management of the bank was well during the last 10 years the period of

the study. Net NPA of the bank found more than 5 percent in the years 2003-04 to 2008-

09 than after it was found less than 5 percent.

Apart from this gross NPA of the bank has decreased continuously that thing

shows good NPA management of the bank. Gross NPA of the bank highest 22.41 percent

in the year 2004-05 has decreased to 6.21 percent in the year 2012-13 that was the

appreciable thing of the bank regarding NPA management. Bank has maintained

sufficient reserve to overcome the problem of NPA every year. From the above table and

chart the researcher found that the Net NPA of the bank less than zero in the year 2010-

11, 2011-12, and 2012-13 i.e. Zero NPA. In the year 2004-05 the bank has highest NPA

15.56 percent which decreased to -3.49 percent in the year 2012-13.




enough provision against non performing assets of the bank according to the rules and

regulation suggested by RBI time to time. Apart from this bank has tried well to maintain

its NPA Zero and bank got success in this matter in last three continuous years.


6.3 Common Size Statement and Trend Analysis of VCCB:

(I) Common Size Income Statement of VCCB:

Table:5.79

ìn Lakhs


Incomes:





Other Receipts 20.01 32.42 19.04 25.60 26.02 34.53 44.73 37.71 44.52 34.84


Total (A) 504.18 565.48 640.77 750.76 837.93 860.98 896.26 873.01 997.45 1040.75


Expenditures:









Legal fees 2.00 2.60 1.08 4.50 2.92 0.87 0.00 0.78 5.85 1.33











Other expenses 11.20 20.12 35.50 42.75 48.21 50.88 47.93 48.97 187.96 156.88




Total Expenses (B) 424.46 474.24 600.45 727.24 798.55 845.05 866.02 852.51 964.96 981.12


Net Profit (A-B) 79.72 91.24 40.32 23.52 39.38 15.93 30.24 20.50 32.49 59.63






(Source: Calculated from the published annual reports of VCCB Ltd. Rajkot of last 10 years)




loss account) of Vijay Commercial Co-operative Bank Ltd. Rajkot for 10 years from

2003-04 to 2013-14 and it also shows Trend Analysis of Total Operating Income, Total

Operating Expenses and Net Profit of VCCB ltd. Rajkot for the same period mentioned


no.5.79.






percent in the year 2005-06 and lowest percentage found 94.33 in 2009-10. Share of other

income in total operating income was found during the period of study on an average 4.63

percent. Interest and discount income of the bank remained more than 93 and less than 97

percent from 2003-04 to 2012-13 in the period of study.

Average percentage of total operating expenses including various provisions on

total operating income was found 93.74 percent during the period of study. And therefore

average net profit during the period of study was found 6.26 percent of the total operating

income. Major expenses of the bank were interest on deposits and borrowing and

employee’s related expenses like salary, provident fund etc. Average interest expenses

during the period of study were 65.24 percent of the total income and average employee

0.00

50.00

100.00

150.00

200.00

250.00P

erce

nta

ge

Years

Chart 5.14 Trend analysis of P/L accounts of VCCB


Operating Income


Operating Expenses



related expenses were 12.98 percent of the total income. With the help of this statistic the

researcher can conclude that overall 78 percent of the total income was interest expenses

and salary and other expenses while 22 percent of the total operating income includes

other operating expenditure and provisions of the bank.




10 years was16.13 percent in the year 2004-05 and lowest percentage was found in the

year 2008-09 1.85 percent. Seating fees of directors and meeting expenses were remained

zero during the period of the study.


table and chart the researcher can conclude that the total operating income, total operating

expenses shown parallel and increasing trend from 2003-04 to 2012-13 except the year

2010-11. From the above chart 5.14 it is clear that operating expenses increase with

increase in operating income and vice versa. There is a positive correlation between

Operating income and Operating expenses and Operating income of the bank. Correlation

coefficient between operating income and operating expenses determined 0.99. So the

researcher can conclude operating expenses are correlated with operating income and also

depend on operating income.

Trend percentage Net profit shown fluctuating trend during the period of study. It

also found negatively correlated with operating income and operating expenses of the

bank. Correlation coefficient between operating income and operating expenses with net

profit determined (-0.57) and (-0.66) respectively. It might be due to heavy NPA. Zigzag

shape of profit trend percentage line indicate that net profit of the bank increase and

decrease during the period of the study as compare to 2003-04. Finally at the end of the

March 2013 net profit of the bank has decreased by 25.20 percent as compare to base year

2003-04.


(II) Common size Balance sheets of VCCB:

Table 5.80

ìn Lakhs

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Liabilities:

Share Capital (`100 each) 114.43 122.38 125.86 133.68 144.04 148.45 137.44 137.11 136.99 138.87




Deposits 4613.71 4826.86 5753.73 6607.73 7140.00 7355.45 8307.95 7649.71 7439.67 7498.34


Borrowings 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00















Total 5752.81 6069.62 6942.96 7777.57 8344.08 8541.94 9506.30 9195.00 9021.38 9526.40


Assets:



Principle/Subs.S P F Investments 0.00 0.00 0.00 0.00 0.00 0.00 12.25 12.25 12.25 0.00


Investment 1813.21 2026.31 2074.17 2732.81 2972.45 2957.56 1625.70 2066.51 1931.89 1919.22


Advances 3107.51 3220.91 3637.11 4192.97 4451.29 4755.43 4759.68 4043.64 4115.82 4152.48








Other Assets 110.41 114.44 195.14 124.24 120.16 119.65 154.36 139.23 147.75 88.79






Total 5752.81 6069.62 6942.96 7777.57 8344.08 8541.94 9506.30 9195.00 9021.38 9526.40



Trend Percentages:






(Source: Calculated from the published annual reports of VCCB ltd. Rajkot of last 10 years)


0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

200.00

2003-042004-052005-062006-072007-082008-092009-102010-112011-122012-13

Per

cen

tag

e

Years

Chart 5.15 Trend Analysis of Balance sheets of VCCB







Above table 5.80 shows Common Size Balance sheet of The Vijay Commercial

Cooperative Bank Ltd. Rajkot of last 10 years from 2003-04 to 2012-13. It also includes

the trend percentages of major items of the balance sheet. Chart 5.15 shows graphical

presentation of the trend percentage shown in the table 5.80.

From the above Common Size Analysis it is clear that liabilities side of the

balance sheet the most important items is deposits followed by reserve and surplus. Out

of the total funds invested in the bank’s assets major portion provided by Deposits and

Reserve. During the period of study lowest percentage of reserves found 9.78 in the year

2009-10 and highest 15.41 percent in the years 2004-05. During this period highest

percentage of deposits was 87.39 in the year 2009-10 and lowest percentage 78.71 in the

year 2012-13. Overall average 94.92 percent of the total assets of the bank funded by

these two components i.e. share of the other items in the balance sheet was 5.08 percent

average during last 10 years from 2003-04 to 2012-13. During the last 10 years bank has

no borrowing in its balance sheet. The major liabilities in the bank were only deposits.

Percentage of share capital in balance sheet average of 10 years remained 1.69 only.

On the assets side the major items are as usual in other banks cash & bank

balance investments and advances. Above Common size analysis of the balance sheet of

the VCCB Ltd. Rajkot state that during the period of last 10 years proportion of cash &

bank, investment and advances in total assets on an average 95 percent and proportion of

other items in the balance sheet assets side on an average only 5 percent of the total

assets during last 10 years. During the period of study highest percentages of Cash and

Bank, Investment and Advances are found 30.07, 35.62 and 55.67 in the year 2010-11,

2007-08 and 2008-09 respectively. On the other hand lowest percentages are remained

6.04, 17.10 and 43.59 in the year 2008-09, 2009-10 and 2012-13 respectively.

Chart 5.15 shows trend analysis of the major items of balance sheets of VCCB

ltd. Rajkot of last 10 years. Share capital shows continuous increasing trend till 2008-09

as compare to 2003-04 share capital of the bank increased by 29.73 in the year 2008-09

than after it decrease continuously in three years again it increased and reach at 121.36

percent in the year 2012-13 i.e. finally it increased by 21.36 percent as compare to base

year. Reserve and surplus shows mixed trend of increasing and decreasing. The

researcher clearly observed that changes in reserve and surplus of the bank very slow. As

compare to the base year 2003-04 reserves and surplus of the bank has increased by

15.51 percent in the year 2012-13 finally. Deposit line in above chart no. 5.15 indicate

increasing trend of the bank’s deposits till the year 2009-10. Deposits of the bank were


increased by 80.07 percent as compare to 2003-04 in the year 2009-10. In the year 2010-

11 and 2011-12 deposits of the bank showing decrease and in the year 2012-13 it was

increase finally it reach at 162.52 percent. On the other hand advances of the bank also

shown increasing trend till 2009-10 than after it decrease and finally it increase i.e. it

shows same kind of trend as deposits. Generally banks uses it deposits for the purpose of

providing advances to its customers. In this bank advances and deposits both showing

parallel trend it indicate that as deposits of the banks increase bank use it to provide

advances to its customers i.e. banks uses its deposits well to provides loan to its

customers it increase its profitability positively. Investments of the bank shown mixed

trend during the period of the study. As compare to the year 2003-04 it increase in the

year 2007-08 by 63.93 percent then after in the year 2009-10 it decrease by 10.34

percent. Finally in the year 2012-13 investment of the bank showing 5.85 percent

increase as compare to base year.

7. FINANCIAL PERFORMANCE OF ‘THE COMMERCIAL CO-

OPERATIVE BANK LTD. JAMNAGAR’ (TCCBLJ):

7.1 Ratio Analysis of TCCBLJ:


Formula:

Table 5.81

Table showing CDR of TCCBLJ of last 10 years

Year Total Advances

(` in Lakhs)

Total Deposit

(` in Lakhs)

CDR

(%)

2003-04 3780.02 8298.16 45.55

2004-05 3663.88 7736.48 47.36

2005-06 3721.96 6516.67 57.11

2006-07 3251.31 8530.05 38.12

2007-08 3436.03 4714.67 72.88

2008-09 3730.61 10070.37 37.05

2009-10 3876.39 11747.94 33.00

2010-11 4593.18 11742.92 39.11

2011-12 5766.51 12021.09 47.97

2012-13 7073.56 12791.28 55.30

Average 47.45 (Source: Computed from Annual Reports of TCCBLJ of last 10 Years)


From the above table no. 5.81 it is clear that bank’s credit deposit ratio remained

between 33 to 73 percent. Average percentage of last 10 years CDR was 47.35. It

indicates TCCBLJ uses its deposits on an average 47.35 percentage to give advances to

their customers during the period of study of last 10 years from 2003-04 to 2012-13.

Highest deposit used by the bank to provide loans to its customer in the year 2007-08,

which was 72.88 percent of total deposits and lowest ratio was in the year 2009-10, 33

percent.


(CRAR):

Formula:

Table 5.82

Table showing CAR of TCCBLJ of last 10 years


(` in Lakhs)

Tier II Capital

(` in Lakhs)

Total TI+TII

(` in Lakhs)

RWA

(` in Lakhs)

CAR

(%)

2003-04 1047.59 21.57 1069.16 11774.89 9.08

2004-05 1021.09 24.56 1045.65 11328.82 9.23

2005-06 1183.15 24.90 1208.05 11560.29 10.45

2006-07 1225.48 23.80 1249.28 12093.71 10.33

2007-08 1275.85 26.70 1302.55 11038.56 11.80

2008-09 1332.84 25.67 1358.51 11098.94 12.24

2009-10 1395.45 26.89 1422.34 10496.97 13.55

2010-11 1445.17 30.34 1475.51 11654.90 12.66

2011-12 1975.75 32.18 2007.93 13687.32 14.67

2012-13 2070.21 36.80 2107.01 12715.81 16.57

Average 12.06

(Source: Computed from Annual Reports of TCCBLJ of last 10 Years)


Urban Co-operative Bank is 9 percent after 2005. Above table shows CAR of TCCBL

Jamnagar in all the years of the period of study from 2003-04 to 2012-13 more than 9

percent. It indicates that CAR of the bank is more than required rate by RBI in all the

years. Average CAR of the 10 years period was 12.06 percent it shows good financial



2003-04 it was 9.08 percent which was lowest CAR and it increased to 16.57 percent in


the year 2012-13 which was the highest CAR during the period of the study. Only in the

year 2011-12 CAR of the bank slightly decreased otherwise it increased continuously.


Formula:

Table 5.83

Table showing IITIR of TCCBLJ of last 10 years

Year Total Interest

(` in Lakhs)

Total Income

(` in Lakhs)

IITIR

(%)

2003-04 1163.19 1238.23 93.94

2004-05 1033.71 1144.65 90.31

2005-06 1042.15 1089.91 95.62

2006-07 1007.91 1064.48 94.69

2007-08 996.45 1067.49 93.35

2008-09 1181.88 1250.75 94.49

2009-10 1264.04 1337.70 94.49

2010-11 1173.13 1264.88 92.75

2011-12 1366.45 1474.22 92.69

2012-13 1479.42 1559.12 94.89

Average 93.72 (Source: Calculated from Annual Reports of TCCBLJ of last 10 Years)

Above table shows that out of the total income of TCCB Ltd. Jamnagar on an



income ratio was 95.62 percent in the year 2005-06 and lowest ratio was 90.31 percent in

the year 2004-05. From the above table the researcher can conclude that the IITIR of the

TCCBLJ was remained between 90 to 96 percent during the period of the study.


Formula:


Table 5.84

Table showing IETER of TCCBLJ of last 10 years


(` in Lakhs)

Total Expenses

(` in Lakhs)

IETER

(%)

2003-04 621.19 1134.64 54.75

2004-05 523.18 1074.48 48.69

2005-06 410.56 1004.32 40.88

2006-07 452.09 963.46 46.92

2007-08 282.88 942.41 30.02

2008-09 523.66 1111.10 47.13

2009-10 580.66 1257.13 46.19

2010-11 537.51 1204.41 44.63

2011-12 581.53 1304.82 44.57

2012-13 692.86 1387.91 49.92



percent in the year 2003-04 and 2007-08 respectively. Average of 10 years ratio is 45.37

percent i.e. on an average during last 10 years out of total expenses of the bank around

45 percent portion of total expenses was interest expense on deposits and borrowings i.e.

ratio of other operating expenses with total expenses average 55 percent.


Formula:

Table 5.85

Table showing NPNAR of TCCBLJ of last 10 years

Year Net Profit

(` in Lakhs)

Net Assets

(` in Lakhs)

NPNAR

(%)

2003-04 103.59 1828.74 5.66

2004-05 70.17 2030.10 3.46

2005-06 85.59 2186.10 3.92

2006-07 101.01 2230.37 4.53

2007-08 125.08 2367.58 5.28

2008-09 139.65 2452.52 5.69

2009-10 80.57 2585.72 3.12

2010-11 60.47 2676.52 2.26

2011-12 169.39 2722.53 6.22

2012-13 171.21 2849.31 6.01



During last 10 years maximum NPNAR of the bank was 6.22 percent in the

year 2011-12 and minimum NPNAR was 2.26 percent in the year 2010-11. On an

average during the last 10 years banks has 4.62 percent NPNAR. From the above table it

is clear that the NPNAR of the bank, neither increase nor decrease continuously but it

remained in fluctuating position during last ten years the period of the study.


Formula:

Table 5.86

Table showing EPS of TCCBLJ of last 10 years

Year Net Profit

(` in Lakhs)

No. of Equity

Share (in Lakhs)

EPS

(`)

2003-04 103.59 1.63 63.42

2004-05 70.17 1.68 41.71

2005-06 85.59 1.65 51.79

2006-07 101.01 1.62 62.27

2007-08 125.08 1.66 75.49

2008-09 139.65 1.55 89.90

2009-10 80.57 1.61 50.03

2010-11 60.47 1.87 32.38

2011-12 169.39 1.81 93.84

2012-13 171.21 1.82 94.15


EPS of The TCCB Ltd. Jamnagar found `65.50 per share on an average

during last 10 years. Maximum EPS earned by the bank in the year 2012-13 `94.15 per

share and minimum EPS earned by the bank `32.38 in the year 2010-11. Bank has

earned average `65.50 per share annually against the equity share of `100 i.e. 65.50

percent.


Formula:



Table 5.87

Table showing IIAWFR of TCCBLJ of last 10 years

Year Total Interest

(` in Lakhs)

AWF

(` in Lakhs)

IIAWFR

(%)

2003-04 1163.19 10466.17 11.11

2004-05 1033.71 10215.02 10.12

2005-06 1042.15 9425.24 11.06

2006-07 1007.91 9911.19 10.17

2007-08 996.45 9118.82 10.93

2008-09 1181.88 10021.66 11.79

2009-10 1264.04 13671.68 9.25

2010-11 1173.13 14604.11 8.03

2011-12 1366.45 14814.65 9.22

2012-13 1479.42 15469.41 9.56



average working fund ratio is 11.79 percent in the year 2008-09 and lowest ratio is 8.03

percent in the year 2010-11. On an average bank has 10.13 percent ratio of interest



Formula:

Table 5.88

Table showing IEAWFR of TCCBLJ of last 10 years


(` in Lakhs)

AWF

(` in Lakhs)

IEAWFR

(%)

2003-04 621.19 10466.17 5.94

2004-05 523.18 10215.02 5.12

2005-06 410.56 9425.24 4.36

2006-07 452.09 9911.19 4.56

2007-08 282.88 9118.82 3.10

2008-09 523.66 10021.66 5.23

2009-10 580.66 13671.68 4.25

2010-11 537.51 14604.11 3.68

2011-12 581.53 14814.65 3.93

2012-13 692.86 15469.41 4.48



Above table 5.88 shows that during last 10 year highest interest expenses to

average working fund ratio is found 5.94 percent and lowest ratio is 3.10 percent in the



percent against it average interest expense ratio 4.46 percent of last ten years of bank it

suggests that bank has earning gap of interest 5.67 percent on average working fund.


Formula:

Table 5.89

Table showing GPAWFR of TCCBLJ of last 10 years

Year Gross Profit

(` in Lakhs)

AWF

(` in Lakhs)

GPAWFR

(%)

2003-04 263.54 10466.17 2.52

2004-05 260.81 10215.02 2.55

2005-06 316.77 9425.24 3.36

2006-07 236.86 9911.19 2.39

2007-08 335.18 9118.82 3.68

2008-09 249.17 10021.66 2.49

2009-10 148.72 13671.68 1.09

2010-11 106.47 14604.11 0.73

2011-12 286.93 14814.65 1.94

2012-13 254.21 15469.41 1.64


Above table shows that the highest GPAWFR of the bank during the period of

the study was 3.68 percent in the year 2007-08 and lowest ratio was 0.73 percent in the

year 2010-11. Average GPAWFR remained 2.24 percent of last 10 years from 2003-04

to 2012-13.


Formula:


Table 5.90

Table showing NPAWFR of TCCBLJ of last 10 years

Year Net Profit

(` in Lakhs)

AWF

(` in Lakhs)

NPAWFR

(%)

2003-04 103.59 10466.17 0.99

2004-05 70.17 10215.02 0.69

2005-06 85.59 9425.24 0.91

2006-07 101.01 9911.19 1.02

2007-08 125.08 9118.82 1.37

2008-09 139.65 10021.66 1.39

2009-10 80.57 13671.68 0.59

2010-11 60.47 14604.11 0.41

2011-12 169.39 14814.65 1.14

2012-13 171.21 15469.41 1.11

Average 0.96


Above table shows that the highest NPAWFR of the bank was found 1.39 percent

in the year 2008-09, and lowest 0.41 percent in the year 2010-11 and average NPAWFR

of the bank found 0.96 percent of last 10 years from 2003-04 to 2012-13 i.e. bank has

earned average 0.96 percent of its average working fund as net profit during last 10 years

the period of study.


Formula:

Table 5.91

Table showing ECAWFR of TCCBLJ of last 10 years

Year Employee exp.

(` in Lakhs)

AWF

(` in Lakhs)

ECAWFR

(%)

2003-04 261.74 10466.17 2.50

2004-05 266.03 10215.02 2.60

2005-06 270.40 9425.24 2.87

2006-07 280.32 9911.19 2.83

2007-08 315.34 9118.82 3.46

2008-09 350.45 10021.66 3.50

2009-10 363.20 13671.68 2.66

2010-11 429.99 14604.11 2.94

2011-12 432.26 14814.65 2.92

2012-13 464.91 15469.41 3.01

Average 2.93



From the above table 5.91, showing ratios of employee cost to average working

fund of last 10 years of the bank it is clear that average employee cost of the bank on

average working fund was 2.93 percent per annum. During last 10 years highest

ECAWFR found 3.50 percent in the year 2008-09 and lowest ratio was 2.50 percent in

the year 2003-04.


Formula:

Table 5.92

Table showing CoDR of TCCBLJ of last 10 years


(` in Lakhs)

Average Deposits

(` in Lakhs)

CoDR

(%)

2003-04 621.19 8342.23 7.45

2004-05 523.18 8072.02 6.48

2005-06 410.56 7142.25 5.75

2006-07 452.09 7528.41 6.01

2007-08 282.88 6622.36 4.27

2008-09 523.66 7392.52 7.08

2009-10 580.66 10909.16 5.32

2010-11 537.51 11745.43 4.58

2011-12 581.53 11882.01 4.89

2012-13 692.86 12406.19 5.58

Average 5.74 (Source: Calculated from Annual Reports of TCCBLJ of last 10 Years)


Deposits during last 10 years Maximum 7.45 percent in the year 2003-04 and minimum


remained 5.74 percent.


(XIII) Summary of the above Ratios of TCCBLJ:

Table 5.93

A summary of all the ratios of TCCBLJ Calculated above

Yea

rs

CD

R (%

)

CA

R (%

)

IITIR

(%)

IET

ER

(%)

NP

NA

R (%

)

EP

S (`

)

IIAW

FR

(%)

IEA

WF

R (%

)

GP

AW

FR

(%)

NP

AW

FR

(%)

EC

AW

FR

(%)

CO

DR

(%)

03-04 45.55 9.08 93.94 54.75 5.66 63.42 11.11 5.94 2.52 0.99 2.50 7.45

04-05 47.36 9.23 90.31 48.69 3.46 41.71 10.12 5.12 2.55 0.69 2.60 6.48

05-06 57.11 10.45 95.62 40.88 3.92 51.79 11.06 4.36 3.36 0.91 2.87 5.75

06-07 38.12 10.33 94.69 46.92 4.53 62.27 10.17 4.56 2.39 1.02 2.83 6.01

07-08 72.88 11.80 93.35 30.02 5.28 75.49 10.93 3.10 3.68 1.37 3.46 4.27

08-09 37.05 12.24 94.49 47.13 5.69 89.90 11.79 5.23 2.49 1.39 3.50 7.08

09-10 33.00 13.55 94.49 46.19 3.12 50.03 9.25 4.25 1.09 0.59 2.66 5.32

10-11 39.11 12.66 92.75 44.63 2.26 32.38 8.03 3.68 0.73 0.41 2.94 4.58

11-12 47.97 14.67 92.69 44.57 6.22 93.84 9.22 3.93 1.94 1.14 2.92 4.89

12-13 55.30 16.57 94.89 49.92 6.01 94.15 9.56 4.48 1.64 1.11 3.01 5.58

Avg. 47.35 12.06 93.72 45.37 4.62 65.50 10.12 4.47 2.24 0.96 2.93 5.74

7.2 NPA Management of the TCCBLJ:

Table 5.94

Table showing NPA Management of TCCBLJ of last 10 years

Yea

rs

Tota

l

Ad

van

ces

(` i

n L

ak

hs)

Gro

ss N

PA

(` i

n L

ak

hs)

Gro

ss N

PA

(%) Total Provision

(ìn Lakhs)

NE

T N

PA

(ìn

Lak

hs)

NE

T N

PA

(%)

1 2 1/2x100 Std.

Assets NPA

Total

SA+NPA

03-04 3780.02 867.23 22.94 10.00 607.72 617.72 249.51 7.89

04-05 3663.88 886.22 24.19 10.00 677.72 687.72 198.50 6.67

05-06 3721.96 848.43 22.80 10.00 682.32 692.32 156.11 5.15

06-07 3251.31 777.58 23.92 10.50 700.24 710.74 66.84 2.63

07-08 3436.03 695.80 20.25 11.00 720.25 731.25 -35.45 -1.31

08-09 3730.61 372.90 10.00 20.00 760.45 780.45 -407.55 -13.81

09-10 3876.39 386.29 9.97 39.00 795.61 834.61 -448.32 -14.74

10-11 4593.18 196.59 4.28 46.00 807.69 853.69 -657.10 -17.57

11-12 5766.51 98.61 1.71 57.00 416.76 473.76 -375.15 -7.09

12-13 7073.56 53.05 0.75 57.00 442.17 499.17 -446.12 -6.79





management of the bank during the period of the study from the year 2003-04 to 2012-

13. It shows Gross NPA, Net NPA in amount and in percentage. It also shown provision

maintain by the bank against NPA.




NPA of TCCBL Jamnagar more than 10 percent in the year 2003-04 to 2007-08 than

after it was 10 percent and less than 10 percent till 2012-13 the last year of the period of

the study. In the year 2012-13 Gross NPA of the bank was only 0.75 percent. It was a

great achievement for the bank that its GNPA reach at 0.75 percent which was 23.92

percent in the year 2006-07. The researcher found that good NPA management of the

bank during the last 10 years the period of the study. Net NPA of the bank found more

than 5 percent in the years 2003-04 to 2005-06 than after it was found less than 5

percent. Not only this but the bank success to made it Net NPA Zero from 2008-09 to

2012-13.

22

.94

24

.19

22

.80

23

.92

20

.25

10

.00

9.9

7

4.2

8

1.7

1

0.7

5

7.8

9

6.6

7

5.1

5

2.6

3

-1.3

1

-13

.81

-14

.74

-17

.57

-7.0

9 -6.7

9

-20.00

-15.00

-10.00

-5.00

0.00

5.00

10.00

15.00

20.00

25.00

30.00G

ross

an

d N

et N

PA

(%

)

Years

Chart 5.16 Gross and Net NPA of TCCBLJ

Gross NPA

Net NPA




in the year 2006-07 has decreased to 0.75 percent in the year 2012-13 that was the

achievement in NPA management of the bank. Bank has maintained sufficient reserve to

overcome the problem of NPA every year. From the above table and chart the researcher

found that the Net NPA of the bank less than zero in the years 2008-09 to 2012-13

From the above discussion and observation of chart 5.16 and table 5.94 the

researcher can conclude that the NPA management of the bank found good during the

period of the study from 2003-04 to 2012-13. Bank has maintained not only enough but

more than enough provision against non performing assets of the bank according to the

rules and regulation suggested by RBI time to time. Apart from this bank has tried well

to maintain its NPA Zero and bank got success in this matter in last five continuous

years.


7.3 Common Size Statement and Trend Analysis of TCCBL Jamnagar:

(I) Common Size Income Statement of TCCBLJ:

Table: 5.95

ìn Lakhs


Incomes:





Other Receipts 40.76 90.59 25.62 30.44 40.92 40.47 48.14 67.06 93.94 67.49


Total (A) 1238.23 1144.65 1089.91 1064.48 1067.49 1250.75 1337.70 1264.88 1474.22 1559.12


Expenditures:









Legal fees 4.68 4.69 4.81 4.96 5.02 5.08 5.12 4.13 5.26 5.84











Other expenses 36.32 36.77 33.55 33.82 72.34 57.20 165.58 117.28 99.51 51.01




Total Expenses (B) 1134.64 1074.48 1004.32 963.46 942.41 1111.10 1257.13 1204.41 1304.82 1387.91


Net Profit (A-B) 103.59 70.17 85.59 101.01 125.08 139.65 80.57 60.47 169.39 171.21






(Source: Calculated from the published annual reports of TCCB Ltd. Jamnagar of last 10 years)




loss account) of The Commercial Co-operative Bank Ltd. Jamnagar for 10 years from


Operating Expenses and Net Profit of TCCB ltd. Jamnagar for the same period mentioned


no.5.95.






percent in the year 2012-13 and lowest percentage found 90.31 in the year 2004-05. Share

of other income in total operating income was found during the period of study on an

average 6.28 percent. Interest and discount income of the bank remained more than 90 and

less than 95 percent from 2003-04 to 2012-13 in the period of study.

On the other hand average percentage of total operating expenses including various

provisions on total operating income was found 91.2 percent during the period of study.

And therefore average net profit during the period of study was found 8.8 percent of the

total operating income. Major expenses of the bank were found interest on deposits and

borrowing employee’s related expenses like salary, provident fund etc. and depreciation

and repairing of assets Average interest expenses during the period of study were 41.42

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

Per

cen

tag

e

Years

Chart 5.17 Trend analysis of P/L accounts of TCCBLJ


Operating Income


Operating Expenses



percent of the total income, average employee related expenses were 27.34 percent of the

total income and average depreciation expenses was 26 percent of the total operating

expenses. With the help of this statistic the researcher can conclude that overall 95 percent

of the total income was interest expenses, salary and other expenses and depreciation

while 5 percent of the total operating income includes other operating expenditure and

provisions of the bank.


profit during the period of study was remained 8.8 percent of total operating income of the

bank. The highest net profit to total operating income percentage was found during last 10

years was 11.72 percent in the year 2007-08 and lowest percentage was found in the year

2010-11 4.78 percent.



expenses shown parallel and mixed trend of increasing and decreasing from 2003-04 to



Operating income and Operating expenses and Operating income of the bank. Correlation


researcher can conclude operating expenses are correlated with operating income and also



also found positively correlated with operating income and operating expenses of the


profit determined 0.60 and 0.42 respectively. Zigzag shape of profit trend percentage line

indicate that net profit of the bank increase and decrease during the period of the study as

compare to 2003-04. It also indicate that net profit is not completely depend on operating

income and operating expenses of the bank but other factors also affect on net profit of the

bank. Finally at the end of the March 2013 net profit of the bank has increased by 65.28

percent as compare to base year 2003-04. Out of ten years net profit of the bank 6 times

decreased and 4 times increased as compare to base year 2003-04.


(II) Common size Balance sheets of TCCBL Jamnagar:

Table 5.96

ìn Lakhs

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Liabilities:





Deposits 8298.16 7736.48 6516.67 8530.05 4714.67 10070.37 11747.94 11742.92 12021.09 12791.28


Borrowings 88.14 21.25 10.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00




O/S in on NPA acc.(Contra) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1502.84 1293.64 1094.26













Total 10498.19 9996.10 8916.73 10963.96 7327.50 12761.90 14615.56 16115.62 16320.75 17029.38


Assets:



Investments 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00


Advances 2214.79 1764.79 1240.27 2879.90 1406.39 3011.21 3180.58 4061.05 3544.15 3494.43






Int. Receivable on NPA (Contra) 32.02 32.24 30.11 28.20 25.63 20.45 13.65 6.48 4.11 19.31




Other Assets 90.76 90.67 90.58 160.43 152.41 144.79 143.24 141.20 119.90 137.70







Total 10498.19 9996.10 8916.73 10963.96 7327.50 12761.90 14615.56 16115.62 16320.75 17029.38


Trend Percentages:






(Source: Calculated from the published annual reports of TCCB ltd. Jamnagar of last 10 years)


0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

200.00

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Per

cen

tag

e

Years

Chart 5.18 Trend Analysis of Balance sheet of TCCBLJ







Above table 5.96 shows Common Size Balance sheet of The Commercial

Cooperative Bank Ltd. Jamnagar of last 10 years from 2003-04 to 2012-13. It also

includes the trend percentages of major items of the balance sheet. Chart 5.18 shows

graphical presentation of the trend percentage shown in the table 5.96.

From the above Common Size Analysis it is clear that liabilities side of the balance

sheet the most important items is deposits followed by reserve and surplus. Out of the total

funds invested in the bank’s assets major portion provided by Deposits and Reserve.

During the period of study lowest percentage of reserves found 15.45 in the year 2010-11

and highest 30.05 percent in the years 2007-08. During this period highest percentage of

deposits was 80.38 in the year 2009-10 and lowest percentage 64.34 in the year 2007-08.

Overall average 94 percent of the total assets of the bank financed by these two

components i.e. share of the other items in the balance sheet was 6 percent average during

last 10 years from 2003-04 to 2012-13. During the last 10 years bank has borrowing in the

year 2003-04 to 2005-06 than after there were no borrowing in banks balance sheet. The

major liabilities in the bank were only deposits. Percentage of share capital in total of the

balance sheet average of 10 years remained 1.45 only.

On the assets side the major items are as usual in other banks cash & bank balance

investments and advances. Above Common size analysis of the balance sheet of the TCCB

Ltd. Jamnagar state that during the period of last 10 years proportion of cash & bank,

investment and advances in total assets on an average 94 percent and proportion of other

items in the balance sheet assets side on an average only 6 percent of the total assets

during last 10 years. During the period of study highest percentages of Cash and Bank,

Investment and Advances are found 48.70, 26.27 and 41.74 in the year 2009-10, 2006-07

and 2005-06 respectively. On the other hand lowest percentages are remained 28.97, 13.91

and 26.52 in the year 2012-13, 2005-06 and 2009-10 respectively. From the above

analysis the researcher can conclude that Deposits, Reserves, Advances, Cash & Bank and

Investment play an important role in balance sheet of the bank.

Chart 5.18 shows trend analysis of the major items of balance sheets of

TCCB ltd. Jamnagar of last 10 years. Share capital shows mixed trend of increasing and

decreasing trend as compare to 2003-04 share capital of the bank increased by 14.33 in the

year 2010-11this was the highest increase shown in trend line of share capital during 10

years period of the study. As compare to base year 2003-04 Share capital shown

increasing trend in 6 years 2004-05, 2005-06 and 2010-11 to 2012-13. In other years share


capital of the bank has been decreasing trend. Reserve and surplus shows continuous

increasing trend. As compare to the base year 2003-04 reserves and surplus of the bank

has increased by 60.17 percent in the year 2012-13. Continuous increase in reserve makes

bank’s financial position sound. Deposit line in above chart no. 5.18 indicates continuous

increasing trend in last five years of the study from 2008-09 to 2012-13. In first five years

of the study from 2003-04 to 2007-08 deposit line of the bank shows mixed trend of

increasing and decreasing. Deposits of the bank were increased by 54.15 percent as

compare to 2003-04 in the year 2012-13 and in the year 2007-08 it has been decreased by

43.18 percent as compare to base year. On the other hand advances of the bank also

shown increasing trend in last six years of the study from 2007-08 to 2012-13. In the year

2012-13 advances of the bank has been increased by 87.13 percent as compare to base

year 2003-04. Generally banks uses it deposits for the purpose of providing advances to its

customers. In this bank advances and deposits both showing parallel trend it indicate that

as deposits of the banks increase bank use it to provide advances to its customers i.e.

banks uses its deposits well to provides loan to its customers it increase its profitability

positively. Co-relation co-efficient determined between deposits and advances of the bank

0.71 indicate that there is good positive co-relation in deposits accepted by band and

advances given by bank. Investments of the bank shown mixed trend during the period of

the study. As compare to the year 2003-04 it increase in the year 2010-11 by 83.36 percent

and it was the highest increase during the period of the study. Zigzag shape of the

investment trend percentage line indicate continuous mixed trend of increasing and

decreasing during the period of study.


8. FINANCIAL PERFORMANCE OF ‘THE MARKET YARD

COMMERCIAL CO-OPERATIVE BANK LTD. UNJHA’ (MCCB):

8.1 Ratio Analysis of MCCB:


Formula:

Table 5.97

Table showing CDR of MCCB of last 10 years

Year Total Advances

(` in Lakhs)

Total Deposit

(` in Lakhs)

CDR

(%)

2003-04 3039.69 4579.16 66.38

2004-05 2927.54 4256.29 68.78

2005-06 2093.20 3945.36 53.05

2006-07 2550.19 3832.05 66.55

2007-08 1773.59 4383.84 40.46

2008-09 2745.20 4555.39 60.26

2009-10 2555.27 5314.11 48.08

2010-11 2404.00 5526.57 43.50

2011-12 3068.65 6187.88 49.59

2012-13 4176.20 7419.91 56.28

Average 55.00 (Source: Computed from Annual Reports of MCCB of last 10 Years)

From the above table it is clear that bank’s credit deposit ratio remain between 43

to 69 percent. Average percentage of last 10 years CDR was 55.29. It indicates MCCB

uses its deposits on an average 55 percentage to give advances to their customers during

the period of study of last 10 years from 2003-04 to 2012-13. Highest deposit used by the

bank to provide loans to its customer in the year 2004-05, which was 68.78 percent of total

deposits and lowest ratio was in the year 2010-11, 43.50 percent.


(CRAR):

Formula:


Table 5.98

Table showing CAR of MCCB of last 10 years


(` in Lakhs)

Tier II Capital

(` in Lakhs)

Total TI+TII

(` in Lakhs)

RWA

(` in Lakhs)

CAR

(%)

2003-04 1031.80 24.34 1056.14 13805.75 7.65

2004-05 1057.81 24.40 1082.21 13874.49 7.80

2005-06 1075.06 26.38 1101.44 13598.02 8.10

2006-07 1093.08 30.80 1123.88 13491.96 8.33

2007-08 1148.74 31.40 1180.14 12827.61 9.20

2008-09 1219.21 32.40 1251.61 13258.58 9.44

2009-10 1260.69 31.80 1292.49 13987.99 9.24

2010-11 1291.28 30.21 1321.49 12420.02 10.64

2011-12 1345.87 30.40 1376.27 13599.51 10.12

2012-13 1407.61 31.40 1439.01 13324.17 10.80

Average 9.13

(Source: Computed from Annual Reports of MCCB of last 10 Years)


Urban Co-operative Bank is 9 percent after 2005. Above table shows CAR of MCCB Ltd.

Unjha in all the years after 2007-08 more than 9 percent. It indicates that CAR of the bank

was more than required rate by RBI in all the years after 2007-08. Average CAR of the 10

years period was 9.13 percent it also more than 9 percent it shows good financial adequacy

of the bank during the period of study. From the above table 5.98 the researcher can

clearly observed that CAR of the bank continuously increase in the year 2003-04 it was

7.65 percent and it increased to 10.80 percent in the year 2012-13.


Formula:

Table 5.99

Table showing IITIR of MCCB of last 10 years

Year Total Interest

(` in Lakhs)

Total Income

(` in Lakhs)

IITIR

(%)

2003-04 1039.46 1132.70 91.77

2004-05 726.05 737.72 98.42

2005-06 624.01 634.43 98.36

2006-07 592.55 599.38 98.86

2007-08 635.28 642.21 98.92

2008-09 621.15 631.30 98.39

2009-10 677.97 692.49 97.90

2010-11 720.38 730.51 98.61

2011-12 933.10 943.30 98.92

2012-13 1073.62 1083.62 99.08

Average 98.00

(Source: Calculated from Annual Reports of MCCB of last 10 Years)


Above table 5.99 shows that out of the total income of MCCB Ltd. Unjha on an

average 98 percent income was interest and discount income during last ten years from

2003-04 to 2012-13. During the period of the study highest interest income to total income

ratio was found 99.08 percent in the year 2012-13 and lowest ratio was 91.77 percent in

the year 2003-04. So the researcher can conclude from the above table that average

interest and discount income of the bank remained 98 of the total income of the bank

during the period of the study.


Formula:

Table 5.100

Table showing IETER of MCCB of last 10 years


(` in Lakhs)

Total Expenses

(` in Lakhs)

IETER

(%)

2003-04 890.87 1093.06 81.50

2004-05 589.06 704.82 83.58

2005-06 512.31 619.20 82.74

2006-07 441.06 583.06 75.65

2007-08 455.46 617.19 73.80

2008-09 436.94 598.10 73.05

2009-10 522.96 668.31 78.25

2010-11 532.27 699.89 76.05

2011-12 694.8 892.31 77.87

2012-13 790.96 1019.02 77.62



percent in the year 2004-05 and 2008-09 respectively. Average of 10 years ratio is 78

percent i.e. on an average during last 10 years out of total expenses of the bank around 78

percent portion of total expenses was interest expense on deposits and borrowings i.e. ratio

of other operating expenses with total expenses average 22 percent.


Formula:


Table 5.101

Table showing NPNAR of MCCB of last 10 years

Year Net Profit

(` in Lakhs)

Net Assets

(` in Lakhs)

NPNAR

(%)

2003-04 39.64 865.11 4.58

2004-05 32.90 892.99 3.68

2005-06 15.23 923.85 1.65

2006-07 16.32 939.31 1.74

2007-08 25.02 984.42 2.54

2008-09 33.20 1044.66 3.18

2009-10 24.18 1092.39 2.21

2010-11 30.62 1115.90 2.74

2011-12 50.99 1149.14 4.44

2012-13 64.60 1194.72 5.41





NPNAR of the bank, neither increase nor decrease continuously but it remained in



Formula:

Table 5.102

Table showing EPS of MCCB of last 10 years

Year Net Profit

(` in Lakhs)

No. of Equity

Share (in Lakhs)

EPS

(`)

2003-04 39.64 1.20 33.03

2004-05 32.90 1.20 27.42

2005-06 15.23 1.20 12.69

2006-07 16.32 1.30 12.51

2007-08 25.02 2.60 9.61

2008-09 33.20 4.10 8.09

2009-10 24.18 4.95 4.89

2010-11 30.62 5.47 5.60

2011-12 50.99 5.07 10.05

2012-13 64.60 4.99 12.95



EPS of The MCCB Ltd. Unjha found `13.68 per share on an average during last

10 years. Maximum EPS earned by the bank in the year 2003-04 `33.03 per share and

minimum EPS earned by the bank `4.89 in the year 2009-10. Bank has earned average

`13.68 per share annually against the equity share of `25 i.e. 54.72 percent.


Formula:


Table 5.103

Table showing IIAWFR of MCCB of last 10 years

Year Total Interest

(` in Lakhs)

AWF

(` in Lakhs)

IIAWFR

(%)

2003-04 1039.46 7069.11 14.70

2004-05 726.05 6244.42 11.63

2005-06 624.01 5895.93 10.58

2006-07 592.55 5641.50 10.50

2007-08 635.28 5761.86 11.03

2008-09 621.15 6027.51 10.31

2009-10 677.97 6483.87 10.46

2010-11 720.38 7189.04 10.02

2011-12 933.10 7708.56 12.10

2012-13 1073.62 8744.29 12.28



average working fund ratio was 14.70 percent in the year 2003-04 and lowest ratio is

10.02 percent in the year 2010-11. On an average bank has 11.36 percent ratio of interest



Formula:


Table 5.104

Table showing IEAWFR of MCCB of last 10 years


(` in Lakhs)

AWF

(` in Lakhs)

IEAWFR

(%)

2003-04 890.87 7069.11 12.60

2004-05 589.06 6244.42 9.43

2005-06 512.31 5895.93 8.69

2006-07 441.06 5641.50 7.82

2007-08 455.46 5761.86 7.90

2008-09 436.94 6027.51 7.25

2009-10 522.96 6483.87 8.07

2010-11 532.27 7189.04 7.40

2011-12 694.8 7708.56 9.01

2012-13 790.96 8744.29 9.05



working fund ratio is found 12.60 percent and lowest ratio is 7.25 percent in the year



against it average interest expense ratio 8.72 percent of last ten years of bank it suggests

that bank has earning gap of interest 2.64 percent on average working fund.


Formula:

Table 5.105

Table showing GPAWFR of MCCB of last 10 years

Year Gross Profit

(` in Lakhs)

AWF

(` in Lakhs)

GPAWFR

(%)

2003-04 103.43 7069.11 1.46

2004-05 37.38 6244.42 0.60

2005-06 19.45 5895.93 0.33

2006-07 21.57 5641.50 0.38

2007-08 31.82 5761.86 0.55

2008-09 43.98 6027.51 0.73

2009-10 34.96 6483.87 0.54

2010-11 44.62 7189.04 0.62

2011-12 69.92 7708.56 0.91

2012-13 98.64 8744.29 1.13

Average 0.73

(Source: Computed from Annual Reports of MCCB of last 10 Years)


Above table 5.105 shows that the highest GPAWFR of the bank was 1.46 percent

in the year 2003-04 and lowest ratio was 0.33 percent in the year 2005-06. Average

GPAWFR remained 0.73 percent of last 10 years from 2003-04 to 2012-13.


Formula:

Table 5.106

Table showing NPAWFR of MCCB of last 10 years

Year Net Profit

(` in Lakhs)

AWF

(` in Lakhs)

NPAWFR

(%)

2003-04 39.64 7069.11 0.56

2004-05 32.90 6244.42 0.53

2005-06 15.23 5895.93 0.26

2006-07 16.31 5641.50 0.29

2007-08 25.02 5761.86 0.43

2008-09 33.20 6027.51 0.55

2009-10 24.18 6483.87 0.37

2010-11 30.62 7189.04 0.43

2011-12 50.99 7708.56 0.66

2012-13 64.60 8744.29 0.74







Formula:


Table 5.107

Table showing ECAWFR of MCCB of last 10 years

Year Employee exp.

(` in Lakhs)

AWF

(` in Lakhs)

ECAWFR

(%)

2003-04 91.09 7069.11 1.29

2004-05 85.81 6244.42 1.37

2005-06 89.35 5895.93 1.52

2006-07 97.40 5641.50 1.73

2007-08 109.68 5761.86 1.90

2008-09 106.35 6027.51 1.76

2009-10 108.74 6483.87 1.68

2010-11 118.50 7189.04 1.65

2011-12 120.04 7708.56 1.56

2012-13 120.27 8744.29 1.38


From the above table, showing ratios of employee cost to average working fund of

last 10 years of the bank it is clear that average employee cost of the bank on average




Formula:

Table 5.108

Table showing CoDR of MCCB of last 10 years


(` in Lakhs)

Average Deposits

(` in Lakhs)

CoDR

(%)

2003-04 890.87 5141.71 17.33

2004-05 589.06 4417.73 13.33

2005-06 512.31 4100.83 12.49

2006-07 441.06 3889.37 11.34

2007-08 455.46 4108.61 11.09

2008-09 436.94 4469.62 9.78

2009-10 522.96 4934.75 10.60

2010-11 532.27 5420.34 9.82

2011-12 694.80 5857.23 11.86

2012-13 790.96 6853.90 11.54

Average 11.92 (Source: Calculated from Annual Reports of MCCB of last 10 Years)


From the above table 108 it was found that the percentages of Interest on Average

Deposits ratio (CoDR) during last 10 years highest 17.33 percent in the year 2003-04 and

lowest 9.78 percent in the year 2008-09 and average cost of deposits ratio last 10 years of

the bank remained 11.92 percent.

(XIII) Summary of the above Ratios of MCCB Unjha:

Table 5.109

A summary of all the ratios of MCCB Calculated above

Yea

rs

CD

R (%

)

CA

R (%

)

IITIR

(%)

IET

ER

(%)

NP

NA

R (%

)

EP

S (`

)

IIAW

FR

(%)

IEA

WF

R (%

)

GP

AW

FR

(%)

NP

AW

FR

(%)

EC

AW

FR

(%)

CO

DR

(%)

03-04 66.38 7.65 91.77 81.50 4.58 33.03 14.70 12.60 1.46 0.56 1.29 17.33

04-05 68.78 7.80 98.42 83.58 3.68 27.42 11.63 9.43 0.60 0.53 1.37 13.33

05-06 53.05 8.10 98.36 82.74 1.65 12.69 10.58 8.69 0.33 0.26 1.52 12.49

06-07 66.55 8.33 98.86 75.65 1.74 12.51 10.50 7.82 0.38 0.29 1.73 11.34

07-08 40.46 9.20 98.92 73.80 2.54 9.61 11.03 7.90 0.55 0.43 1.90 11.09

08-09 60.26 9.44 98.39 73.05 3.18 8.09 10.31 7.25 0.73 0.55 1.76 9.78

09-10 48.08 9.24 97.90 78.25 2.21 4.89 10.46 8.07 0.54 0.37 1.68 10.60

10-11 43.50 10.64 98.61 76.05 2.74 5.60 10.02 7.40 0.62 0.43 1.65 9.82

11-12 49.59 10.12 98.92 77.87 4.44 10.05 12.10 9.01 0.91 0.66 1.56 11.86

12-13 56.28 10.80 99.08 77.62 5.41 12.95 12.28 9.05 1.13 0.74 1.38 11.54

Avg. 55.29 9.13 97.92 78.01 3.22 13.68 11.36 8.72 0.73 0.48 1.58 11.92

8.2 NPA Management of the MCCB Unjha:

Table 5.110

Table showing NPA Management of MCCB Unjha of last 10 years

Yea

rs

Tota

l

Ad

van

ces

(` i

n L

ak

hs)

Gro

ss N

PA

(` i

n L

ak

hs)

Gro

ss N

PA

(%) Total Provision

(ìn Lakhs)

NE

T N

PA

(ìn

Lak

hs)

NE

T N

PA

(%)

1 2 1/2x100 Std.

Assets NPA

Total

SA+NPA

03-04 3039.69 482.70 15.88 10.00 371.33 381.33 101.37 3.81

04-05 2927.54 442.70 15.12 10.00 395.06 405.06 37.64 1.49

05-06 2093.20 305.51 14.60 10.00 399.12 409.12 -103.61 -6.15

06-07 2550.19 313.67 12.30 10.00 400.6 410.60 -96.93 -4.53

07-08 1773.59 186.90 10.54 10.00 177.44 187.44 -0.54 -0.03

08-09 2745.20 179.80 6.55 10.00 179.49 189.49 -9.69 -0.38

09-10 2555.27 151.72 5.94 10.00 182.26 192.26 -40.54 -1.72

10-11 2404.00 140.50 5.84 10.00 182.9 192.90 -52.40 -2.37

11-12 3068.65 120.30 3.92 10.00 209.28 219.28 -98.98 -3.47

12-13 4176.20 108.40 2.60 10.00 221.82 231.82 -123.42 -3.13





management of the Market Yard Commercial Co-operative Bank Ltd. Unjha during the

period of the study from the year 2003-04 to 2012-13. It shows Gross NPA, Net NPA in

amount and in percentage also. It also shown provision maintain by the bank against non

performing assets.




NPA of MCCB Unjha is more than 10 percent in the year 2003-04 to 2007-08 than after it

was 10 less than 10 percent till 2012-13 the last year of the period of the study. In the year

2012-13 Gross NPA of the bank was only 2.60 percent. It was a great achievement for the

bank that its GNPA reach at 2.60 percent which was 15.88 percent in the year 2003-04.

15

.88

15

.12

14

.60

12

.30

10

.54

6.5

5

5.9

4

5.8

4

3.9

2

2.6

03.8

1

1.4

9

-6.1

5

-4.5

3

-0.0

3

-0.3

8

-1.7

2

-2.3

7

-3.4

7

-3.1

3-10.00

-5.00

0.00

5.00

10.00

15.00

20.00

Gro

ss a

nd

Net

NP

A (

%)

Years

Chart 5.19 Gross and Net NPA of MCCB Unjha

Gross NPA

Net NPA


The researcher found that good NPA management of the bank during the last 10 years the

period of the study because gross NPA of the bank continuously decrease.

Net NPA of the bank found less than 5 percent during all the years the period

of the study from 2003-04 to 2012-13. From 2005-06 to 2012-13 the bank has maintained

more provision against non performing assets of the bank therefore Net NPA percentage

found Zero in all the years after 2004-05.



in the year 2003-04 has decreased to 2.60 percent in the year 2012-13 that was the great

achievement in NPA management of the bank. Bank has maintained sufficient reserve to

overcome the problem of NPA every year. From the above table and chart the researcher

found that the Net NPA of the bank less than zero in the years 2005-06 to 2012-13.






its NPA Zero and bank got success in this matter in last eight continuous years.


8.3 Common Size Statement and Trend Analysis of MCCB Ltd. Unjha:

(I) Common Size Income Statement of MCCB:

Table: 5.111

ìn Lakhs


Incomes:





Other Receipts 91.77 10.35 8.27 4.91 4.44 9.11 13.65 9.26 9.63 9.65


Total (A) 1132.70 737.72 634.43 599.38 642.21 631.30 692.49 730.51 943.30 1083.62


Expenditures:









Legal fees 0.87 0.64 0.19 0.62 0.79 0.01 0.19 0.45 0.32 0.28











Other expenses 101.93 22.61 11.74 38.16 42.34 41.08 27.94 38.13 66.89 98.36


Total Expenses (B) 1093.06 704.82 619.20 583.06 617.19 598.10 668.31 699.89 892.31 1019.02


Net Profit (A-B) 39.64 32.90 15.23 16.32 25.02 33.20 24.18 30.62 50.99 64.60






(Source: Calculated from the published annual reports of MCCB Ltd. Unjha of last 10 years)




loss account) of The Market Yard Commercial Co-operative Bank Ltd. Unjha for 10 years

from 2003-04 to 2013-14 and it also shows Trend Analysis of Total Operating Income,

Total Operating Expenses and Net Profit of MCCB ltd. Unjha for the same period

mentioned above. Chart 5.20 shows graphical presentation of trend analysis as shown in

the table no.5.111.


researcher found that out of the total operating income of the bank the major income is


remained 97.92 percent of the total operating income. Highest percentage of interest and




average 2.08 percent.





borrowing and employee’s related expenses like salary, provident fund etc. Average

interest expenses during the period of study were 74.8 percent of the total income and

average employee related expenses were 13.97 percent of the total income. With the help

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

Per

cen

tag

e

Years

Chart 5.20 Trend analysis of P/L accounts of MCCB Unjha


Operating Income


Operating Expenses



of this statistic the researcher can conclude that overall 89 percent of the total income was

interest expenses and employee’s expenses while 11 percent of the total operating income

includes other operating expenditure and provisions of the bank.




10 years was 5.96 percent in the year 2012-13 and lowest percentage was found 2.40 in

the year 2005-06.






Operating income and Operating expenses of the bank. Correlation coefficient between

operating income and operating expenses determined 0.9998. So the researcher can

conclude operating expenses are strongly correlated with operating income and also





profit determined 0.83 and 0.80 respectively. Zigzag shape of profit trend percentage line

indicate that net profit of the bank increase and decrease during the period of the study as

compare to 2003-04. It also indicate that net profit is not completely depend on operating

income and operating expenses of the bank but other factors also affect on net profit of the

bank. Finally at the end of the March 2013 net profit of the bank has increased by 62.97

percent as compare to base year 2003-04. Overall whatever the operating income and

operating expenditure trend but overall profitability of the bank has increased as compare

to base year. During ten years trend percentage line showing profit has been decreased

three times and increased seven times.


(II) Common size Balance sheets of MCCB Ltd. Unjha:

Table 5.112

ìn Lakhs

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Liabilities:





Deposits 4579.16 4256.29 3945.36 3832.05 4383.84 4555.39 5314.11 5526.57 6187.88 7419.91


Borrowings 0.00 0.00 0.00 1.33 0.00 0.00 0.00 0.00 0.00 100.00















Total 6498.83 6029.96 5789.30 5503.28 6062.43 6028.80 6944.41 7440.36 7980.09 9510.12


Assets:



Call Money 700.00 900.00 1520.00 388.82 2163.51 507.36 0.00 0.00 0.00 0.00


Investments 0.00 0.00 0.00 0.00 0.00 0.00 936.88 0.00 0.00 0.00


Advances 1811.74 1891.73 1891.73 1792.74 1739.83 1692.20 1695.71 1695.71 1743.96 2062.01






Int. Receivable on NPA (Contra) 15.36 24.60 2.81 6.77 35.23 0.99 4.48 2.22 1.12 0.51




Other Assets 18.72 5.17 4.18 3.34 4.22 10.97 15.03 10.13 5.31 24.67


Total 6498.83 6029.96 5789.30 5503.28 6062.43 6028.80 6944.41 7440.36 7980.09 9510.12


Trend Percentages:







(Source: Calculated from the published annual reports of MCCB ltd. Unjha of last 10 years)


0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

450.00

500.00

2003-042004-052005-062006-072007-082008-092009-102010-112011-122012-13

Per

cen

tag

e

Years

Chart 5.21 Trend Analysis of Balance sheet of MCCB Unjha







Above table 5.112 shows Common Size Balance sheet of The Market Yard

Commercial Cooperative Bank Ltd. Unjha of last 10 years from 2003-04 to 2012-13. It

also includes the trend percentages of major items of the balance sheet. Chart 5.21 shows

graphical presentation of the trend percentage shown in the table 5.112.

From the above Common Size Analysis it is clear that liabilities side of the balance

sheet the most important items is deposits followed by reserve and surplus. Out of the total

funds invested in the bank’s assets major portion provided by Deposits and Reserve.

During the period of study lowest percentage of reserves found 11.25 in the year 2012-13

and highest 16.48 percent in the years 2006-07. During this period highest percentage of

deposits was 78.02 in the year 2012-13 and lowest percentage 68.15 in the year 2005-06.

Overall average 87 percent of the total assets of the bank financed by these two

components i.e. share of the other items in the balance sheet was 13 percent average

during last 10 years from 2003-04 to 2012-13. This 13 percent include 9.74 percent

interest payable i.e. share of other items in balance sheet was only 3.26 percent. During the

last 10 years bank has borrowing in the year 2006-07 and 2012-13 only. The major

liabilities in the bank were only deposits. Percentage of share capital in total of the

balance sheet average of 10 years remained 1.14 only.

On the assets side of the balance sheet the major items are as usual in other banks

cash & bank balance investments and advances. Apart from this Call Money is also an

important component. Above Common size analysis of the balance sheet of the MCCB

Ltd. Unjha state that during the period of last 10 years proportion of cash & bank,

investment, advances and call money in total assets on an average 97 percent and

proportion of other items in the balance sheet assets side on an average only 3 percent of

the total assets during last 10 years. During the period of study highest percentages of

Cash and Bank, Investment and Advances with total assets are found 43.60, 32.68, 48.55

and 35.69 in the year 2010-11, 2005-06, 2004-05 and 2007-08 respectively. On the other

hand lowest percentages are remained 4.40, 21.68 and 29.26 in the year 2004-05, 2012-13

and 2007-08 respectively. Highest percentage of call money in total assets was found in

the year 2007-08, 35.69 percent. Bank did not have call money from the year 2008-09 to

2012-13. From the above analysis the researcher can conclude that Deposits, Reserves,

Advances, Cash & Bank, Call Money and Investment play an important role in balance

sheet of the bank.



MCCB ltd. Unjha of last 10 years. Trend percentage line of share capital of the bank

shows that share capital of the bank remained constant in the years 2003-04 to 2005-06.

Than share capital start increasing and reach at 455.70. It state that share capital of the

bank increase by 355.70 percent as compare to base year 2003-04. At the end of the year

2012-13 trend percentage line of the bank shows 415.80 percent i.e. finally share capital of

the bank increased by 315.80 percent at the end of the year 2012-13. From the year 2006-

07 to 2012-13 good increasing trend of the share capital indicate that financial position of

the bank become strong. Reserve and surplus shows continuous increasing trend. As

compare to the base year 2003-04 reserves and surplus of the bank has increased by 28.12

percent in the year 2012-13. Continuous increase in reserve makes bank’s financial

position sound.

Deposit line in above chart no. 5.21 indicates that deposit of the bank

decreased continuously till 2006-07 than it start increasing continuously and finally stop at

162.04. It state that finally deposits of the bans has increased by 62.04 percent as compare

to base years at the end of the year 2012-13. On the other hand advances of the bank

shows mixed trend of increasing and decreasing during the period of the study. But over

all advances of the bank has increased by 37.39 percent in the year 2012-13 as compare to

base year 2003-04. Generally banks uses it deposits for the purpose of providing advances

to its customers. The bank uses its deposits well to provide advances to its customers. Co-

relation co-efficient determined between deposits and advances of the bank 0.73 indicate

that there is good positive co-relation between deposits accepted by bank and advances

provided by bank to its customers.

Investments of the bank shown mixed trend during the period of the study.

As compare to the year 2003-04 it increased in the year 2004-05, 2005-06 and 2012-13. It

shows decreasing trend in remaining years of the study. Finally at the end of the year

2012-13 investment of the bank increased by 13.81 percent as compare to base year.


9. FINANCIAL PERFORMANCE OF ‘‘THE CHANASMA

COMMERCIAL CO-OPERATIVE BANK LTD.’ (CCCB):

9.1 Ratio Analysis of CCCB Ltd. Chanasma:


Formula:

Table 5.113

Table showing CDR of CCCB of last 10 years

Year Total Advances

(` in Lakhs)

Total Deposit

(` in Lakhs)

CDR

(%)

2003-04 1006.80 1696.40 59.35

2004-05 1094.41 1383.88 79.08

2005-06 902.25 1217.80 74.09

2006-07 860.24 1076.81 79.89

2007-08 834.65 1205.40 69.24

2008-09 874.30 1373.79 63.64

2009-10 1082.19 1601.61 67.57

2010-11 1259.78 1846.77 68.22

2011-12 1269.03 2119.22 59.88

2012-13 1427.35 2374.21 60.12

Average 68.11 (Source: Computed from Annual Reports of CCCB of last 10 Years)

The above table 5.113 shows credit deposit ratio of The CCCB Ltd. Chanasma for

10 years from 2003-04 to 2012-13. From the table it is clear that bank’s credit deposit ratio

remain between 58 to 80 percent. Average percentage of last 10 years CDR was 68.11. It

indicates CCCB uses its deposits on an average 68 percentage to give advances to their

customers during the period of study of last 10 years from 2003-04 to 2012-13. Highest

deposit used by the bank to provide loans to its customer in the year 2006-07, which was

79.89 percent of total deposits and lowest ratio was in the year 2003-04, 59.35 percent.


(CRAR):

Formula:


Table 5.114

Table showing CAR of CCCB of last 10 years


(` in Lakhs)

Tier II Capital

(` in Lakhs)

Total TI+TII

(` in Lakhs)

RWA

(` in Lakhs)

CAR

(%)

2003-04 948.61 22.51 971.12 4800.40 20.23

2004-05 963.99 25.40 989.39 4407.08 22.45

2005-06 998.83 25.50 1024.33 4696.61 21.81

2006-07 997.25 23.80 1021.05 4313.69 23.67

2007-08 1014.46 26.70 1041.16 4094.22 25.43

2008-09 1042.16 28.25 1070.41 3886.75 27.54

2009-10 307.05 30.40 337.45 1139.65 29.61

2010-11 297.25 35.41 332.66 1218.53 27.30

2011-12 310.67 34.50 345.17 1221.84 28.25

2012-13 326.18 36.60 362.78 1417.66 25.59

Average 25.19

(Source: Computed from Annual Reports of CCCB of last 10 Years)


Urban Co-operative Bank is 9 percent after 2005. Above table 5.114 shows CAR of

CCCB Ltd. Chanasma in all the years of the period of study from 2003-04 to 2012-13

found more than 9 percent i.e. more than required rate as per RBI. Average CAR of the 10

years period was 25.19 percent it also more than 9 percent it shows good financial



2003-04 it was 20.23 percent and it increased to 25.59 percent in the year 2012-13.


Formula:

Table 5.115

Table showing IITIR of CCCB of last 10 years

Year Total Interest

(` in Lakhs)

Total Income

(` in Lakhs)

IITIR

(%)

2003-04 201.36 203.16 99.11

2004-05 170.94 172.23 99.25

2005-06 153.38 155.96 98.35

2006-07 162.05 163.81 98.93

2007-08 175.28 177.20 98.92

2008-09 174.45 175.80 99.23

2009-10 196.35 199.03 98.65

2010-11 215.16 216.95 99.17

2011-12 256.62 258.01 99.46

2012-13 300.82 302.43 99.47

Average 99.00

(Source: Calculated from Annual Reports of CCCB of last 10 Years)


Above table5.115 shows that out of the total income of CCCB Ltd. Chanasma on

an average 99 percent income was interest and discount income during last ten years from



the year 2005-06. So the researcher can conclude from the above table that average

interest and discount income of the bank average 99 of the total income of the bank.


Formula:

Table 5.116

Table showing IETER of CCCB of last 10 years


(` in Lakhs)

Total Expenses

(` in Lakhs)

IETER

(%)

2003-04 118.75 167.16 71.04

2004-05 96.87 152.23 63.63

2005-06 85.25 134.96 63.17

2006-07 86.38 152.81 56.53

2007-08 92.38 163.95 56.35

2008-09 99.28 159.40 62.28

2009-10 112.08 178.53 62.78

2010-11 121.94 194.58 62.67

2011-12 150.47 231.89 64.89

2012-13 176.35 274.33 64.28


In the above table showing interest expenses to total expenses ratio the highest

ratio was found 71.04 percent and lowest ratio was 56.35 percent in the year 2004-05 and

2007-08 respectively. Average of 10 years ratio was 62.76 percent i.e. on an average

during last 10 years out of total expenses of the bank around 63 percent portion of total

expenses was interest expense on deposits and borrowings i.e. ratio of other operating

expenses with total expenses average 37 percent.


Formula:


Table 5.117

Table showing NPNAR of CCCB of last 10 years

Year Net Profit

(` in Lakhs)

Net Assets

(` in Lakhs)

NPNAR

(%)

2003-04 36.00 212.05 16.98

2004-05 20.00 234.02 8.55

2005-06 21.00 245.21 8.56

2006-07 11.00 241.21 4.56

2007-08 13.25 261.42 5.07

2008-09 16.40 267.04 6.14

2009-10 20.50 278.80 7.35

2010-11 22.37 296.35 7.55

2011-12 26.12 308.40 8.47

2012-13 28.10 325.61 8.63





NPNAR of the bank remained in fluctuating position during last ten years the period of the

study.


Formula:

Table 5.118

Table showing EPS of CCCB of last 10 years

Year Net Profit

(` in Lakhs)

No. of Equity

Share (in Lakhs)

EPS

(`)

2003-04 36.00 0.68 52.71

2004-05 20.00 0.71 28.09

2005-06 21.00 0.74 28.46

2006-07 11.00 0.69 15.95

2007-08 13.25 0.71 18.72

2008-09 16.40 0.72 22.77

2009-10 20.50 0.78 26.34

2010-11 22.37 0.87 25.70

2011-12 26.12 0.90 29.01

2012-13 28.10 0.95 29.45

Average 27.72



EPS of The CCCB Ltd. Chanasma found `27.72 per share on an average during

last 10 years. Maximum EPS earned by the bank in the year 2003-04 `52.71 per share and


`27.72 per share annually against the equity share of `100 i.e. 27.72 percent.


Formula:


Table 5.119

Table showing IIAWFR of CCCB of last 10 years

Year Total Interest

(` in Lakhs)

AWF

(` in Lakhs)

IIAWFR

(%)

2003-04 201.36 2179.67 9.24

2004-05 170.94 2090.14 8.18

2005-06 153.38 1874.35 8.18

2006-07 162.05 1661.99 9.75

2007-08 175.28 1652.96 10.60

2008-09 174.45 1788.64 9.75

2009-10 196.35 2001.96 9.81

2010-11 215.16 2262.09 9.51

2011-12 256.62 2547.08 10.08

2012-13 300.82 2843.49 10.58



average working fund ratio was 10.60 percent in the year 2007-08 and lowest ratio was

8.18 percent in the years 2004-05 and 2005-06. Average IIAWFR of the bank is 9.57

percent of last 10 years from 2003-04 to 2012-13 the period of the study.


Formula:


Table 5.120

Table showing IEAWFR of CCCB of last 10 years


(` in Lakhs)

AWF

(` in Lakhs)

IEAWFR

(%)

2003-04 118.75 2179.67 5.45

2004-05 96.87 2090.14 4.63

2005-06 85.25 1874.35 4.55

2006-07 86.38 1661.99 5.20

2007-08 92.38 1652.96 5.59

2008-09 99.28 1788.64 5.55

2009-10 112.08 2001.96 5.60

2010-11 121.94 2262.09 5.39

2011-12 150.47 2547.08 5.91

2012-13 176.35 2843.49 6.20



working fund ratio is found 6.20 percent and lowest ratio is 4.55 percent in the year 2012-

13 and 2005-06 respectively. On an average bank has 5.41 percent ratio of interest


against it average interest expense ratio 5.41 percent of last ten years of bank i.e. the bank

has earning gap of interest 4.16 percent on average working fund.


Formula:

Table 5.121

Table showing GPAWFR of CCCB of last 10 years

Year Gross Profit

(` in Lakhs)

AWF

(` in Lakhs)

GPAWFR

(%)

2003-04 41.45 2179.67 1.90

2004-05 24.63 2090.14 1.18

2005-06 25.55 1874.35 1.36

2006-07 16.20 1661.99 0.97

2007-08 18.84 1652.96 1.14

2008-09 21.95 1788.64 1.23

2009-10 26.10 2001.96 1.30

2010-11 27.76 2262.09 1.23

2011-12 32.03 2547.08 1.26

2012-13 34.30 2843.49 1.21

Average 1.28



Above table 1.121 shows that the highest GPAWFR of the bank is 1.90 percent in

the year 2003-04 and lowest ratio is 0.97 percent in the year 2006-07. Average GPAWFR

remained 1.28 percent of last 10 years from 2003-04 to 2012-13.


Formula:

Table 5.122

Table showing NPAWFR of CCCB of last 10 years

Year Net Profit

(` in Lakhs)

AWF

(` in Lakhs)

NPAWFR

(%)

2003-04 36.00 2179.67 1.65

2004-05 20.00 2090.14 0.96

2005-06 21.00 1874.35 1.12

2006-07 11.00 1661.99 0.66

2007-08 13.25 1652.96 0.80

2008-09 16.40 1788.64 0.92

2009-10 20.50 2001.96 1.02

2010-11 22.37 2262.09 0.99

2011-12 26.12 2547.08 1.03

2012-13 28.10 2843.49 0.99







Formula:


Table 5.123

Table showing ECAWFR of CCCB of last 10

years

Year Employee exp.

(` in Lakhs)

AWF

(` in Lakhs)

ECAWFR

(%)

2003-04 32.10 2179.67 1.47

2004-05 32.50 2090.14 1.55

2005-06 34.12 1874.35 1.82

2006-07 34.56 1661.99 2.08

2007-08 35.20 1652.96 2.13

2008-09 36.12 1788.64 2.02

2009-10 39.07 2001.96 1.95

2010-11 44.79 2262.09 1.98

2011-12 44.12 2547.08 1.73

2012-13 54.67 2843.49 1.92

Average 1.87




working fund is 1.87 percent per annum. During last 10 years highest ECAWFR of the

bank found 2.13 percent in the year 2007-08 and lowest ratio was found 1.47 percent in

the year 2003-04.


Formula:

Table 5.124

Table showing CoDR of CCCB of last 10 years


(` in Lakhs)

Average Deposits

(` in Lakhs)

CoDR

(%)

2003-04 118.75 1735.81 6.84

2004-05 96.87 1540.14 6.29

2005-06 85.25 1300.84 6.55

2006-07 86.38 1147.97 7.52

2007-08 92.38 1141.77 8.09

2008-09 99.28 1289.60 7.70

2009-10 112.08 1487.70 7.53

2010-11 121.94 1724.19 7.07

2011-12 150.47 1983.00 7.59

2012-13 176.35 2296.72 7.68

Average 7.29

(Source: Calculated from Annual Reports of CCCB of last 10 Years)


From the above table showing cost of deposit ratio it was found that the

percentages of Interest on Average Deposits during last 10 years highest 8.09 percent in

the year 2007-08 and lowest 6.29 percent in the year 2004-05 and average cost of deposits

last 10 years of the bank remained 7.79 percent.

(XIII) Summary of the above Ratios of CCCB Chanasma:

Table 5.125

A summary of all the ratios of CCCB Calculated above

Yea

rs

CD

R (%

)

CA

R (%

)

IITIR

(%)

IET

ER

(%)

NP

NA

R (%

)

EP

S (`

)

IIAW

FR

(%)

IEA

WF

R (%

)

GP

AW

FR

(%)

NP

AW

FR

(%)

EC

AW

FR

(%)

CO

DR

(%)

03-04 59.35 20.23 99.11 71.04 16.98 52.71 9.24 5.45 1.90 1.65 1.47 6.84

04-05 79.08 22.45 99.25 63.63 8.55 28.09 8.18 4.63 1.18 0.96 1.55 6.29

05-06 74.09 21.81 98.35 63.17 8.56 28.46 8.18 4.55 1.36 1.12 1.82 6.55

06-07 79.89 23.67 98.93 56.53 4.56 15.95 9.75 5.20 0.97 0.66 2.08 7.52

07-08 69.24 25.43 98.92 56.35 5.07 18.72 10.60 5.59 1.14 0.80 2.13 8.09

08-09 63.64 27.54 99.23 62.28 6.14 22.77 9.75 5.55 1.23 0.92 2.02 7.70

09-10 67.57 29.61 98.65 62.78 7.35 26.34 9.81 5.60 1.30 1.02 1.95 7.53

10-11 68.22 27.30 99.17 62.67 7.55 25.70 9.51 5.39 1.23 0.99 1.98 7.07

11-12 59.88 28.25 99.46 64.89 8.47 29.01 10.08 5.91 1.26 1.03 1.73 7.59

12-13 60.12 25.59 99.47 64.28 8.63 29.45 10.58 6.20 1.21 0.99 1.92 7.68

Avg. 68.11 25.19 99.05 62.76 8.19 27.72 9.57 5.41 1.28 1.01 1.87 7.29


9.2 NPA Management of the CCCB Chanasma:

Table 5.126

Table showing NPA Management of CCCB Chanasma of last 10 years

Yea

rs

Tota

l

Ad

van

ces

(` i

n L

ak

hs)

Gro

ss N

PA

(` i

n L

ak

hs)

Gro

ss N

PA

(%) Total Provision

(ìn Lakhs)

NE

T N

PA

(ìn

La

kh

s)

NE

T N

PA

(%)

1 2 1/2x100 Std.

Assets NPA

Total

SA+NPA

03-04 1006.80 81.72 8.12 3.41 121.4 124.81 -43.09 -4.89

04-05 1094.41 80.90 7.39 3.90 130.45 134.35 -53.45 -5.57

05-06 902.25 80.65 8.94 4.21 135.5 139.71 -59.06 -7.75

06-07 860.24 74.45 8.65 4.55 140.8 145.35 -70.90 -9.92

07-08 834.65 75.80 9.08 4.44 135.55 139.99 -64.19 -9.24

08-09 874.30 74.26 8.49 4.16 139.65 143.81 -69.55 -9.52

09-10 1082.19 70.45 6.51 5.16 145.96 151.12 -80.67 -8.66

10-11 1259.78 65.27 5.18 5.03 149.40 154.43 -89.16 -8.07

11-12 1269.03 64.30 5.07 5.50 154.43 159.93 -95.63 -8.62

12-13 1427.35 64.78 4.54 6.00 118.22 124.22 -59.44 -4.56



8.1

2

7.3

9 8.9

4

8.6

5

9.0

8

8.4

9

6.5

1

5.1

8

5.0

7

4.5

4

-4.8

9

-5.5

7

-7.7

5

-9.9

2

-9.2

4

-9.5

2

-8.6

6

-8.0

7

-8.6

2

-4.5

6

-15.00

-10.00

-5.00

0.00

5.00

10.00

15.00

Gro

ss a

nd

Net

NP

A (

%)

Years

Chart 5.22 Gross and Net NPA of CCCB Chanasma

Gross NPA

Net NPA



management of The Chanasma Commercial Co-operative Bank Ltd. during the period of

the study from the year 2003-04 to 2012-13. It shows Gross NPA, Net NPA in amount and

in percentage also. It also shown provision maintain by the bank against non performing

assets.




NPA of The CCCB Chanasma is Less than 10 percent in all the year of the study 2003-04

to 2012-13it indicates that NPA management of the bank too good during the period of the

study. It was a great achievement for the bank that bank has maintained its GNPA less

than 10 percent. During the period of the study the highest GNPA found 9.08 percent in

the year 2007-08 and lowest percentage of GNPA found 4.54 in the year 2012-13.

Net NPA of the bank should be less than 5 percent as per RBI rule. During all

the years, the period of the study from 2003-04 to 2012-13 the researcher found that the

Net NPA of the bank in negative percentage i.e. not only less than 5 percent but less than

zero. Bank has maintained its Net NPA zero throughout the period of the study it was a

great achievement for the bank.


can conclude that the NPA management of the bank found too good during the period of

the study from 2003-04 to 2012-13. Bank has maintained not only enough but more than



its NPA Zero and bank got success in this matter in all the ten continuous years the period

of the study from 2003-04 to 2012-13.


9.3 Common Size Statement and Trend Analysis of CCCB Ltd. Chanasma:

(I) Common Size Income Statement of ‘The CCCB Ltd.’:

Table: 5.127

ìn Lakhs


Incomes:





Other Receipts 1.20 0.85 2.22 1.50 1.67 0.80 2.22 1.23 0.97 1.18


Total (A) 203.16 172.23 155.96 163.81 177.20 175.80 199.03 216.95 258.01 302.43


Expenditures:









Legal fees 0.51 0.45 0.25 0.33 0.62 1.15 0.64 0.21 0.47 0.80











Other expenses and IT Provisions 9.80 16.31 10.16 25.75 29.61 14.73 20.45 20.40 27.09 32.95


Total Expenses (B) 167.16 152.23 134.96 152.81 163.95 159.40 178.53 194.58 231.89 274.33


Net Profit (A-B) 36.00 20.00 21.00 11.00 13.25 16.40 20.50 22.37 26.12 28.10






(Source: Calculated from the published annual reports of CCCB Ltd. Chanasma of last 10 years)




loss account) of The Chanasma Commercial Co-operative Bank Ltd. Chanasma for 10

years from 2003-04 to 2012-13 and it also shows Trend Analysis of Total Operating

Income, Total Operating Expenses and Net Profit of CCCB ltd. Chanasma for the same

period mentioned above. Chart 5.23 shows graphical presentation of trend analysis as

shown in the table no.5.127.








average 1 percent only.






0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00P

erce

nta

ge

Years

Chart 5.23 Trend analysis of P/L accounts of CCCB


Operating Income


Operating Expenses





of this statistic the researcher can conclude that overall 75 percent of the total income was

interest expenses and employee’s expenses while 25 percent of the total operating income

was other operating expenditure and provisions included in total operating expenses of the

bank.





the year 2006-07.






Operating income and Operating expenses of the bank. Correlation coefficient between

operating income and operating expenses determined 0.9899. So the researcher can

conclude operating expenses are strongly correlated with operating income and also





profit determined 0.577 and 0.457 respectively. Zigzag shape of profit trend percentage

line indicate that net profit of the bank increase and decrease during the period of the study

as compare to 2003-04. It also indicate that net profit is not completely depend on

operating income and operating expenses of the bank but other factors also affect on net

profit of the bank. Finally at the end of the March 2013 net profit of the bank has

decreased by 22 percent as compare to base year 2003-04. During ten years trend

percentage line of net profit showing profit has been decreased two times and increased

eight times.


(II) Common size Balance sheets of CCCB Ltd. Chanasma:

Table 5.128

ìn Lakhs

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Liabilities:





Deposits 1696.40 1383.88 1217.80 1076.81 1205.40 1373.79 1601.61 1846.77 2119.22 2374.21


Borrowings 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00












Other Funds Staff Related 17.68 34.29 24.39 17.14 18.32 19.64 19.07 23.51 14.14 21.17



Provisions 158.85 327.84 187.05 233.25 171.89 176.42 182.32 180.27 192.52 198.61




Total 2154.66 2032.01 1721.75 1609.79 1703.61 1882.85 2128.84 2400.78 2701.88 2993.68


Assets:



Call Money 200.00 100.00 50.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Investments 669.80 572.85 575.18 577.78 767.36 903.00 964.85 1029.63 1297.38 1409.41


Advances 1006.80 1094.41 902.25 860.24 834.65 874.30 1082.19 1259.78 1269.03 1427.35








Other Assets 4.53 4.25 3.15 2.85 1.15 0.92 2.03 2.15 1.98 2.53


Total 2154.66 2032.01 1721.75 1609.79 1703.61 1882.85 2128.84 2400.78 2701.88 2993.68



Trend Percentages:






(Source: Calculated from the published annual reports of CCCB ltd. Chanasma of last 10 years)


0.00

50.00

100.00

150.00

200.00

250.00

2003-042004-052005-062006-072007-082008-092009-102010-112011-122012-13

Per

cen

tag

e

Years

Chart 5.24 Trend Analysis of Balance sheet of CCCB Chanasma







Above table 5.128 shows Common Size Balance sheet of The Chanasma

Commercial Cooperative Bank Ltd. Chanasma of last 10 years from 2003-04 to 2012-13.

It also shows the trend percentage analysis of major items of the balance sheet. Chart 5.24

shows graphical presentation of the trend percentage analysis shown in the table no. 5.128.

From the above Common Size Analysis of the balance sheet it is clear that

liabilities side of the balance sheet the most important items are deposits and reserve &

surplus. Out of the total funds invested in the bank’s assets major portion provided by

Deposits and Reserves. During this period highest percentage of deposits with total asset

was 79.31 in the year 2012-13 and lowest percentage was found 66.89 in the year 2006-

07. During the period of study lowest percentage of reserves found 6.67 in the year 2003-

04 and highest 11.19 percent in the years 2007-08. Overall average 84 percent of the total

assets of the bank financed by these two components i.e. share of the other items in the

balance sheet was 16 percent average during last 10 years from 2003-04 to 2012-13.

During the last 10 years borrowings of the bank remained zero. The major liabilities in the

bank were found deposits only. Average Percentage of share capital in total of the balance

sheet of 10 years remained 3.70 only.

On the assets side of the balance sheet of the main items are investments and

advances. Above Common size analysis of the balance sheet of the CCCB Ltd. Chanasma

state that during the period of last 10 years proportion of investment and advances in total

assets on an average 90 percent and proportion of other items in the balance sheet on an

average only 10 percent of the total assets during last 10 years. During the period of study

highest percentages of Investment and Advances with total assets are found 47.96, and

53.86 in the year 2008-09 and 2004-05 respectively. On the other hand lowest percentages

are remained 28.19 and 46.43 in the year 2004-05 and 2008-09 respectively. The bank has

call money in the years 2003-04, 2004-05 and 2005-06 `200 lakhs, `100 Lakhs and `50

lakhs. Bank did not have call money from the year 2006-07 to 2012-13. Average

percentage of cash and bank balance of the bank of last 10 years was remained 6.20.


CCCB ltd. Chanasma of last 10 years. Trend percentage line of share capital of the bank

shows that share capital of the bank increased continuously during the period of the study

in the years 2003-04 it was `68.30 which increased to `95.43 in the year 2012-13. Share

capital of the bank increased by 39.72 percent as compare to base year 2003-04.

Increasing trend of the share capital indicate that financial position of the bank become


strong. Reserve and surplus shows continuous increasing trend. As compare to the base

year 2003-04 reserves and surplus of the bank has increased by 60.13 percent in the year

2012-13. Continuous increase in reserves makes bank’s financial position more strong.

Deposit line in above chart no. 5.24 indicates that deposit of the bank decreased

continuously till 2006-07 than it start increasing continuously and finally stop at 139.96. It

state that finally deposits of the bank has increased by 39.96 percent as compare to base

year 2003-04 at the end of the year 2012-13. On the other hand advances of the bank

shows mixed trend of increasing and decreasing during the period of the study. But over

all advances of the bank has increased by 41.77 percent in the year 2012-13 as compare to

base year 2003-04. Normally banks uses it deposits for the purpose of providing advances

to its customers. The bank uses its deposits well to provide advances to its customers. To

know that the researcher has calculated Co-relation co-efficient determined between

deposits which was 0.9357. It indicates that there is good positive co-relation between

deposits accepted by bank and advances provided by bank to its customers. The

researcher can conclude here that advances of the bank depend on deposits of the bank.

Investments of the bank shown mixed trend during the period of the study. As

compare to the year 2003-04 it increased by 110.42 percent in the year 2012-13. It shows

decreasing trend in the years 2004-05 to 2006-07 than after it shows increasing trend of

investment of the bank.


10. FINANCIAL PERFORMANCE OF ‘‘THE SARVODAYA

COMMERCIAL CO-OPERATIVE BANK LTD. MEHSANA’ (SCCB):

10.1 Ratio Analysis of SCCB Ltd. Mehsana:


Formula:

Table 5.129

Table showing CDR of SCCB of last 10 years

Year Total Advances

(` in Lakhs)

Total Deposit

(` in Lakhs)

CDR

(%)

2003-04 5919.19 9997.77 59.21

2004-05 5123.93 9832.44 52.11

2005-06 4455.16 9735.68 45.76

2006-07 4696.65 9626.84 48.79

2007-08 4672.42 11894.36 39.28

2008-09 8778.94 13901.67 63.15

2009-10 11060.75 15285.33 72.36

2010-11 14523.00 19503.49 74.46

2011-12 17852.90 24281.73 73.52

2012-13 24303.32 33755.00 72.00

Average 60.00 (Source: Computed from Annual Reports of SCCB of last 10 Years)

Table no. 5.129 shows credit deposit ratio of The SCCB Ltd. Mehsana for 10

years from 2003-04 to 2012-13. From above the table it is clear that bank’s credit deposit

ratio remained between 45 to 75 percent. Average percentage of last 10 years CDR was

60. It indicates SCCB uses its deposits on an average 60 percentage to give advances to

their customers during the period of study of last 10 years from 2003-04 to 2012-13.

Highest CDR found 74.46 percent in the year 2010-11 and lowest percentage of CDR

found 45.76 percent in the year 2005-06.


(CRAR):

Formula:


Table 5.130

Table showing CAR of SCCB of last 10 years


(` in Lakhs)

Tier II Capital

(` in Lakhs)

Total TI+TII

(` in Lakhs)

RWA

(` in Lakhs)

CAR

(%)

2003-04 1917.37 40.21 1957.58 13660.71 14.33

2004-05 1964.17 60.55 2024.72 10956.28 18.48

2005-06 2156.53 65.88 2222.41 10414.29 21.34

2006-07 2226.64 75.56 2302.20 11586.31 19.87

2007-08 2414.98 80.88 2495.86 11009.53 22.67

2008-09 2435.39 88.09 2523.48 12504.86 20.18

2009-10 2660.67 97.45 2758.12 12474.54 22.11

2010-11 2777.06 127.28 2904.34 14010.32 20.73

2011-12 2969.69 244.50 3214.19 15437.99 20.82

2012-13 3355.13 295.19 3650.32 22380.87 16.31

Average 19.68

(Source: Computed from Annual Reports of SCCB of last 10 Years)

Minimum CAR required for any Urban Co-operative Bank is 9 percent after 2005

according to RBI and Basel committee report. Above table 5.130 shows CAR of SCCB

Ltd. Mehsana in all the years of the period of study from 2003-04 to 2012-13 found more

than 9 percent i.e. more than required rate as per RBI. Average CAR of the 10 years

period was 19.68 percent it also more than 9 percent it shows good financial adequacy of

the bank during the period of study. From the above table 5.130 the researcher can clearly

observed that CAR of the bank neither continuously increase nor decrease. In the year

2003-04 it was 14.33 percent and it increased to 22.67 percent in the year 2007-08 and in

the year 2012-13 it was 16.31 percent. During the period of the study highest CAR of the

bank found in the year 2009-10; 22.67 percent and lowest ratio 14.33 percent found in the

year 2003-04.


Formula:


Table 5.131

Table showing IITIR of SCCB of last 10 years

Year Total Interest

(` in Lakhs)

Total Income

(` in Lakhs)

IITIR

(%)

2003-04 1466.36 1486.44 98.65

2004-05 1386.85 1405.08 98.70

2005-06 1406.26 1428.84 98.42

2006-07 1397.46 1428.72 97.81

2007-08 1427.98 1455.72 98.09

2008-09 1439.95 1472.05 97.82

2009-10 1690.46 1725.21 97.99

2010-11 2014.60 2087.31 96.52

2011-12 2549.82 2617.04 97.43

2012-13 3465.23 3543.32 97.80

Average 97.92

(Source: Calculated from Annual Reports of SCCB of last 10 Years)

Above table shows that out of the total income of The SCCB Ltd. Mehsana on an

average 97.92 percent income was interest and discount income during last ten years from



the year 2010-11. So the researcher can conclude on the basis of above table that average

interest and discount income of the bank was found more than 98 of the total income of

the bank.


Formula:

Table 5.132

Table showing IETER of SCCB of last 10 years


(` in Lakhs)

Total Expenses

(` in Lakhs)

IETER

(%)

2003-04 845.35 1346.44 62.78

2004-05 839.69 1300.08 64.59

2005-06 765.38 1228.43 62.31

2006-07 729.71 1189.78 61.33

2007-08 656.66 1145.71 57.31

2008-09 670.75 1211.55 55.36

2009-10 751.55 1406.50 53.43

2010-11 946.16 1765.47 53.59

2011-12 1358.65 2295.00 59.20

2012-13 2146.79 3167.47 67.78

Average 59.77



In the above table no.5.132 showing interest expenses to total expenses ratio the

highest ratio was found 67.78 percent and lowest ratio was 53.43 percent in the year 2012-

13 and 2009-10 respectively. Average of 10 years ratio was 59.77 percent i.e. on an


total expenses was interest expense on deposits and borrowings i.e. ratio of other operating

expenses with total expenses was average 40 percent.


Formula:

Table 5.133

Table showing NPNAR of SCCB of last 10 years

Year Net Profit

(` in Lakhs)

Net Assets

(` in Lakhs)

NPNAR

(%)

2003-04 140.00 2251.89 6.22

2004-05 105.00 2464.27 4.26

2005-06 200.41 2605.23 7.69

2006-07 238.94 2450.67 9.75

2007-08 310.02 2600.25 11.92

2008-09 260.50 2955.72 8.81

2009-10 318.71 3324.80 9.59

2010-11 321.84 3823.64 8.42

2011-12 322.04 4724.66 6.82

2012-13 375.85 5061.42 7.43




last 10 years banks has 8.09 percent NPNAR. From the above table 5.133 it is clear that

the NPNAR of the bank remained in fluctuating position during last ten years the period of

the study.


Formula:


Table 5.134

Table showing EPS of SCCB of last 10 years

Year Net Profit

(` in Lakhs)

No. of Equity

Share (in Lakhs)

EPS

(`)

2003-04 140.00 4.35 32.15

2004-05 105.00 4.34 24.17

2005-06 200.41 4.47 44.81

2006-07 238.94 4.58 52.13

2007-08 310.02 4.79 64.72

2008-09 260.50 5.06 51.51

2009-10 318.71 9.72 32.80

2010-11 321.84 14.39 22.36

2011-12 322.04 19.05 16.90

2012-13 375.85 20.98 17.91

Average 35.95


EPS of The SCCB Ltd. Mehsana found `35.95 per share on an average during

last 10 years. Maximum EPS earned by the bank in the year 2007-08 `64.72 per share and


`35.95 per share annually against the share of `25 each i.e. 143.8 percent.


Formula:


Table 5.135

Table showing IIAWFR of SCCB of last 10 years

Year Total Interest

(` in Lakhs)

AWF

(` in Lakhs)

IIAWFR

(%)

2003-04 1466.36 13687.90 10.71

2004-05 1386.85 13433.57 10.32

2005-06 1406.26 13207.65 10.65

2006-07 1397.46 13250.32 10.55

2007-08 1427.98 14468.99 9.87

2008-09 1439.95 16688.94 8.63

2009-10 1690.46 18722.71 9.03

2010-11 2014.60 21919.43 9.19

2011-12 2549.82 27108.16 9.41

2012-13 3465.23 35056.86 9.88

Average 9.82



From the above table 5.135 it is clear that during last 10 year highest interest

income to average working fund ratio is 10.71 percent in the year 2003-04 and lowest ratio

is 8.63 percent in the years 2008-09. Average IIAWFR of the bank is 9.82 percent of last

10 years from 2003-04 to 2012-13 the period of the study.


Formula:

Table 5.136

Table showing IEAWFR of SCCB of last 10 years


(` in Lakhs)

AWF

(` in Lakhs)

IEAWFR

(%)

2003-04 845.35 13687.90 6.18

2004-05 839.69 13433.57 6.25

2005-06 765.38 13207.65 5.79

2006-07 729.71 13250.32 5.51

2007-08 656.66 14468.99 4.54

2008-09 670.75 16688.94 4.02

2009-10 751.55 18722.71 4.01

2010-11 946.16 21919.43 4.32

2011-12 1358.65 27108.16 5.01

2012-13 2146.79 35056.86 6.12






against it average interest expense ratio 5.18 percent of last ten years of bank i.e. the bank

has average earning gap of interest 4.64 percent on average working fund.


Formula:


Table 5.137

Table showing GPAWFR of SCCB of last 10 years

Year Gross Profit

(` in Lakhs)

AWF

(` in Lakhs)

GPAWFR

(%)

2003-04 234.49 13687.90 1.71

2004-05 165.65 13433.57 1.23

2005-06 255.95 13207.65 1.94

2006-07 280.15 13250.32 2.11

2007-08 342.43 14468.99 2.37

2008-09 306.15 16688.94 1.83

2009-10 349.49 18722.71 1.87

2010-11 344.59 21919.43 1.57

2011-12 366.29 27108.16 1.35

2012-13 445.91 35056.86 1.27






Formula:

Table 5.138

Table showing NPAWFR of SCCB of last 10 years

Year Net Profit

(` in Lakhs)

AWF

(` in Lakhs)

NPAWFR

(%)

2003-04 140.00 13687.90 1.02

2004-05 105.00 13433.57 0.78

2005-06 200.41 13207.65 1.52

2006-07 238.94 13250.32 1.80

2007-08 310.02 14468.99 2.14

2008-09 260.50 16688.94 1.56

2009-10 318.71 18722.71 1.70

2010-11 321.84 21919.43 1.47

2011-12 322.04 27108.16 1.19

2012-13 375.85 35056.86 1.07



Above table 5.138 shows that the highest NPAWFR of the bank is 2.14 percent in

the year 2007-08, and lowest 1.02 percent in the year 2003-04 and average NPAWFR of

the bank 1.43 percent of last 10 years from 2003-04 to 2012-13 i.e. bank has earned 1.43

percent of its average working fund as net profit during last 10 years the period of study on

an average.


Formula:

Table 5.139

Table showing ECAWFR of SCCB of last 10 years

Year Employee exp.

(` in Lakhs)

AWF

(` in Lakhs)

ECAWFR

(%)

2003-04 329.76 13687.90 2.41

2004-05 330.46 13433.57 2.46

2005-06 331.41 13207.65 2.51

2006-07 333.47 13250.32 2.52

2007-08 338.57 14468.99 2.34

2008-09 340.42 16688.94 2.04

2009-10 405.64 18722.71 2.17

2010-11 425.91 21919.43 1.94

2011-12 472.02 27108.16 1.74

2012-13 517.38 35056.86 1.48







Formula:


Table 5.140

Table showing CoDR of SCCB of last 10 years


(` in Lakhs)

Average Deposits

(` in Lakhs)

CoDR

(%)

2003-04 845.35 10093.12 8.38

2004-05 839.69 9935.16 8.45

2005-06 765.38 9806.92 7.80

2006-07 729.71 9839.06 7.42

2007-08 656.66 11020.60 5.96

2008-09 670.75 13058.02 5.14

2009-10 751.55 14658.50 5.13

2010-11 946.16 17429.43 5.43

2011-12 1358.65 21917.64 6.20

2012-13 2146.79 29169.90 7.36

Average 6.73 (Source: Calculated from Annual Reports of SCCB of last 10 Years)

From the above table showing cost of deposit ratio it was found that the

percentages of Interest on Average Deposits during last 10 years highest 8.45 percent in

the year 2004-05 and lowest 5.13 percent in the year 2009-10 and average cost of deposits

last 10 years of the bank remained 6.73 percent.

(XIII) Summary of the above Ratios of SCCB Mehsana:

Table 5.141

A summary of all the ratios of SCCB Calculated above Y

ears

CD

R (%

)

CA

R (%

)

IITIR

(%)

IET

ER

(%)

NP

NA

R (%

)

EP

S (`

)

IIAW

FR

(%)

IEA

WF

R (%

)

GP

AW

FR

(%)

NP

AW

FR

(%)

EC

AW

FR

(%)

CO

DR

(%)

03-04 59.21 14.33 98.65 62.78 6.22 32.15 10.71 6.18 1.71 1.02 2.41 8.38

04-05 52.11 18.48 98.70 64.59 4.26 24.17 10.32 6.25 1.23 0.78 2.46 8.45

05-06 45.76 21.34 98.42 62.31 7.69 44.81 10.65 5.79 1.94 1.52 2.51 7.80

06-07 48.79 19.87 97.81 61.33 9.75 52.13 10.55 5.51 2.11 1.80 2.52 7.42

07-08 39.28 22.67 98.09 57.31 11.92 64.72 9.87 4.54 2.37 2.14 2.34 5.96

08-09 63.15 20.18 97.82 55.36 8.81 51.51 8.63 4.02 1.83 1.56 2.04 5.14

09-10 72.36 22.11 97.99 53.43 9.59 32.80 9.03 4.01 1.87 1.70 2.17 5.13

10-11 74.46 20.73 96.52 53.59 8.42 22.36 9.19 4.32 1.57 1.47 1.94 5.43

11-12 73.52 20.82 97.43 59.20 6.82 16.90 9.41 5.01 1.35 1.19 1.74 6.20

12-13 72.00 16.31 97.80 67.78 7.43 17.91 9.88 6.12 1.27 1.07 1.48 7.36

Avg. 60.06 19.68 97.92 59.77 8.09 35.95 9.82 5.18 1.73 1.43 2.16 6.73


10.2 NPA Management of the SCCB Mehsana:

Table 5.142

Table showing NPA Management of SCCB Mehsana of last 10 years

Yea

rs

Tota

l

Ad

van

ces

(` i

n L

ak

hs)

Gro

ss N

PA

(` i

n L

ak

hs)

Gro

ss N

PA

(%) Total Provision

(ìn Lakhs)

NE

T N

PA

(ìn

La

kh

s)

NE

T N

PA

(%)

1 2 1/2x100 Std.

Assets NPA

Total

SA+NPA

03-04 5919.19 1482.30 25.04 23.69 433.12 456.81 1025.49 18.77

04-05 5123.93 1380.00 26.93 22.50 456.80 479.30 900.70 19.39

05-06 4455.16 922.00 20.70 22.50 470.67 493.17 428.83 10.82

06-07 4696.65 470.00 10.01 23.50 489.56 513.06 -43.06 -1.03

07-08 4672.42 270.00 5.78 23.50 510.44 533.94 -263.94 -6.38

08-09 8778.94 152.00 1.73 35.12 535.65 570.77 -418.77 -5.10

09-10 11060.75 124.00 1.12 44.24 545.96 590.20 -466.20 -4.45

10-11 14523.00 88.00 0.61 58.09 637.94 696.03 -608.03 -4.40

11-12 17852.90 118.00 0.66 71.42 695.01 766.43 -648.43 -3.79

12-13 24303.32 59.00 0.24 97.22 584.58 681.80 -622.80 -2.64



25

.04

26

.93

20

.70

10

.01

5.7

8

1.7

3

1.1

2

0.6

1

0.6

6

0.2

4

18

.77

19

.39

10

.82

-1.0

3

-6.3

8

-5.1

0

-4.4

5

-4.4

0

-3.7

9

-2.6

4

-10.00

-5.00

0.00

5.00

10.00

15.00

20.00

25.00

30.00

Gro

ss a

nd

Net

NP

A (

%)

Years

Chart 5.25 Gross and Net NPA of SCCB Mehsana

Gross NPA

Net NPA



management of The Sarvodaya Commercial Co-operative Bank Ltd. Mehsana during the

period of the study from the year 2003-04 to 2012-13. It shows Gross NPA, Net NPA in

amount and in percentage also. It also shown provision maintain by the bank against non

performing assets.




NPA of The SCCB Mehsana is Less than 10 percent in the year 2007-08 to 2012-13. It

was a great achievement for the bank that bank has maintained its GNPA less than 10

percent in continuous last six years. During the period of the study the highest GNPA

found 26.93 percent in the year 2004-05 and lowest percentage of GNPA found 0.24 in

the year 2012-13. From the above statistic the researcher can conclude that recovery and

collection policy of the bank improved too good during the period of the study.

Therefore bank got success to minimize its GNPA from 26.93 percent to 0.24 percent

only.

Net NPA of the bank should be less than 5 percent as per RBI rules. During

the period of the study from 2003-04 to 2012-13 the researcher found that the Net NPA

of the bank was in negative percentage i.e. not only less than 5 percent but less than zero

from 2006-07 to 2012-13. Bank has maintained its Net NPA zero continuously from last

7 years it was a great achievement for the bank.


can said that the NPA management of the bank found very good during the period of the



regulation suggested by RBI time to time. Therefore Net NPA of the bank found zero

from last 7 continuous years and Gross NPA less than 10 percent from last 6 continuous

years. Apart from this the researcher found that GNPA of the bank reduced constantly

and it reaches at 0.24 percent in the year 2012-13.


10.3 Common Size Statement and Trend Analysis of SCCB Ltd. Mehsana:

(I) Common Size Income Statement of ‘The SCCB Ltd.’:

Table: 5.143

ìn Lakhs


Incomes:





Other Receipts 8.32 7.42 10.48 20.15 15.88 18.68 22.40 59.59 57.27 66.21


Total (A) 1486.44 1405.08 1428.84 1428.72 1455.72 1472.05 1725.21 2087.31 2617.04 3543.32


Expenditures:









Legal fees 0.51 0.55 0.32 0.45 0.55 0.65 0.70 0.74 1.85 0.96











Provisions 94.49 60.65 55.54 41.21 32.42 45.65 30.78 22.75 44.25 70.06


Other expenses 20.44 16.56 18.43 21.52 50.80 80.85 134.42 272.55 295.03 290.41


Total Expenses (B) 1346.44 1300.08 1228.43 1189.78 1145.71 1211.55 1406.5 1765.47 2295 3167.47


Net Profit (A-B) 140 105 200.41 238.94 310.01 260.5 318.71 321.84 322.04 375.85


Trend Percentage: Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13




(Source: Calculated from the published annual reports of SCCB Ltd. Mehsana of last 10 years)




loss account) of The Sarvodaya Commercial Co-operative Bank Ltd. Mehsana for 10 years


Total Operating Expenses and Net Profit of SCCB ltd. Mehsana for the same period


the table no.5.143.








average 2.08 percent only.








0.00

50.00

100.00

150.00

200.00

250.00

300.00

Per

cen

tag

e

Years

Chart 5.26 Trend analysis of P/L accounts of SCCB


Operating Income


Operating Expenses



of above figures the researcher can conclude that overall 73 percent of the total income

was interest expenses and employee’s expenses while 13 percent of the total operating

income was other operating expenditure and provisions included in total operating

expenses of the bank.





the year 2004-05.


table and chart the researcher can make conclusion that the total operating income, total

operating expenses shown parallel and increasing trend from 2005-06 to 2012-13. From

the above chart 5.26 it is clear that operating expenses increase with increase in operating

income and vice versa. There is a strong positive correlation between Operating income

and Operating expenses of the bank. Correlation coefficient between operating income and

operating expenses determined 0.9899. So the researcher can conclude operating expenses

are strongly correlated with operating income and also depend on operating income.




profit determined 0.578 and 0.457 respectively. It indicates that net profit of the bank was

not completely depend on operating income and operating expenses of the bank but other

factors also affect on net profit of the bank. Zigzag shape of profit trend percentage line

indicates that net profit of the bank increase and decrease during the period of the study as

compare to 2003-04. Finally at the end of the March 2013 net profit of the bank has

increased by 168.46 percent as compare to base year 2003-04. During ten years trend

percentage line of net profit showing profit has been decreased two times and increased

eight times. So overall it was an increasing trend of profitability of the bank during the

period of the study.


(II) Common size Balance sheets of SCCB Ltd. Mehsana:

Table 5.144

ìn Lakhs

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Liabilities:





Deposits 9997.77 9832.44 9735.68 9626.84 11894.36 13901.67 15285.33 19503.49 24281.73 33755.00


Borrowings 0.00 40.11 5.60 310.00 210.00 110.00 20.00 50.04 0.02 303.04






Provision for Interest due (Contra) 20.10 29.28 20.95 21.88 28.44 46.70 35.41 37.93 39.75 42.57









Total 13567.72 13407.23 13125.11 13508.96 15592.06 17974.70 19674.28 24385.98 30058.07 40297.57


Assets:



Call Money 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Investments 5352.58 6002.91 6166.17 6529.00 7706.12 7090.42 6540.10 8224.47 9588.63 12991.47


Advances 5919.19 5123.93 4455.16 4696.65 4672.42 8778.94 11060.75 14523.00 17852.90 24303.32






Provision for interest due (Contra) 20.10 29.28 20.95 21.88 28.44 46.70 35.41 37.93 39.75 42.57




Other Assets 356.21 261.35 241.46 231.70 351.90 155.06 211.20 131.97 118.69 132.43




Advanced Income Tax 0.00 0.00 0.00 100.00 180.00 0.00 130.00 120.00 125.00 145.00



Total 13567.72 13407.23 13125.11 13508.96 15592.06 17974.70 19674.28 24385.98 30058.07 40297.57


Trend Percentage:

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13






(Source: Calculated from the published annual reports of SCCB ltd. Mehsana of last 10 years)


0.00

100.00

200.00

300.00

400.00

500.00

600.00

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Per

cen

tag

e

Years

Chart 5.27 Trend Analysis of Balance sheet of SCCB Mehsana







Above table 5.144 shows Common Size Balance sheet of The Sarvodaya

Commercial Cooperative Bank Ltd. Mehsana of last 10 years from 2003-04 to 2012-13.

It also shows the trend percentage analysis of major items of the balance sheet. Chart

5.27 shows graphical presentation of the trend percentage analysis shown in the table no.

5.144.

From the above Common Size Analysis of the balance sheet it is clear that

liabilities side of the balance sheet the most important items are deposits and reserve &

surplus. Out of the total funds invested in the bank’s assets major portion provided by



07. During the period of study lowest percentage of reserves found 11.26 in the year

2012-13 and highest 19 percent in the years 2005-06. Average Percentage of 10 years in

case of Reserves of the bank remained 15.66 percent and in case of deposits it remained

76.83 percent. Overall average 93 percent of the total assets of the bank financed by

these two components i.e. share of the other items in the balance sheet was 7 percent

average during last 10 years from 2003-04 to 2012-13. During the last 10 years

borrowings of the bank remained average 0.57 percent of the total assets of the bank.

Therefore the major liabilities in the bank were found deposits only. Average Percentage

of share capital in total of the balance sheet of 10 years remained 1.04 only.

On the assets side of the balance sheet of the major items are as usual in other

banks of the study, investments and advances. Above Common size analysis of the

balance sheet of the SCCB Ltd. Mehsana state that during the period of last 10 years

share of investment and advances in total assets of the bank remained on an average

86.43 percent and share of other items in the balance sheet on an average only 13.57

percent of the total assets during last 10 years. This 13.57 percent include 6.68 percent

share of cash and bank balance i.e. share of other items are only 6.89 percent only.

During the period of study highest percentages of Investment and Advances with total

assets were found 49.42, and 60.31 in the year 2007-08 and 2012-13 respectively. On the

other hand lowest percentages were found 31.90 and 29.97 in the year 2011-12 and

2007-08 respectively. The bank has zero amount of call money during the period of the

study.


Chart 5.27 shows trend analysis of the main items of balance sheets of SCCB ltd.

Mehsana of last 10 years. Trend percentage line of share capital of the bank shows

continuous increasing trend of share capital of the bank. In the year 2012-13 share capital

of the bank becomes 4.82 times of the capital in the year 2003-04. Increasing trend of the

share capital indicate that financial position of the bank become strong during the period

of the study. Major increased in share capital has done in last four years of the study

period from 2009-10 to 2012-13. Reserve and surplus also shows continuous increasing

trend. As compare to the base year 2003-04 reserves and surplus of the bank has

increased by 111.70 percent in the year 2012-13. Continuous increase in reserves makes

bank’s solvency position more strong and powerful.

Deposit line in above chart no. 5.27 indicates that deposit of the bank decreased

continuously till 2006-07 than it start increasing continuously and finally stop at 337.56.

It state that finally deposits of the bank has increased by 227.56 percent as compare to

base year 2003-04 at the end of the year 2012-13. During the period of the study the

researcher found that deposits of the bank shows less decreasing and more increasing

trend. It indicates increase in faith of depositors in bank during the period of the study.

On the other hand advances of the bank shows mixed trend of increasing and decreasing

during the period of the study. But over all advances of the bank has increased by 310.59

percent in the year 2012-13 as compare to base year 2003-04. Normally banks uses it

deposits for the purpose of providing advances to its customers. The SCCB uses its

deposits well to provide advances to its customers. The researcher can conclude like that

because the advances trend of the bank same as like deposit. To know that the researcher

has calculated Co-relation co-efficient between deposits advances which was 0.9975. It

indicates that there is strong positive co-relation between deposits accepted by bank and

advances provided by bank to its customers. The researcher can conclude here that

advances of the bank have depended on deposits of the bank.

Investments of the bank shown mixed trend during the period of the study. As

compare to the year 2003-04 it has increased by 142.71 percent in the year 2012-13.

Trend percentage line of Investment shows decreasing trend in the years 2008-09 and

2009-10 only, otherwise it shown increasing trend in all the years of period of the study.


11. FINANCIAL PERFORMANCE OF ‘‘THE RANDHEJA

COMMERCIAL CO-OPERATIVE BANK LTD.’ (TRCCB):

11.1 Ratio Analysis of TRCCB Ltd. Randheja:


Formula:

Table 5.145

Table showing CDR of TRCCBL of last 10 years

Year Total Advances

(` in Lakhs)

Total Deposit

(` in Lakhs)

CDR

(%)

2003-04 294.41 531.12 55.43

2004-05 321.00 528.33 60.76

2005-06 302.06 570.20 52.97

2006-07 320.44 533.54 60.06

2007-08 316.98 470.00 67.44

2008-09 376.28 551.89 68.18

2009-10 441.69 634.89 69.57

2010-11 492.27 724.76 67.92

2011-12 447.99 726.89 61.63

2012-13 408.43 736.83 55.43

Average 61.94 (Source: Computed from Annual Reports of TRCCBL of last 10 Years)

Table no. 5.145 shows credit deposit ratio of TRCCBL Ltd. Randheja for 10



61.94. It indicates TRCCBL uses its deposits on an average 62 percentage to give

advances to their customers during the period of study of last 10 years from 2003-04 to

2012-13. Highest CDR found 69.57 percent in the year 2009-10 and lowest percentage



(CRAR):

Formula:


Table 5.146

Table showing CAR of TRCCBL of last 10 years


(` in Lakhs)

Tier II Capital

(` in Lakhs)

Total TI+TII

(` in Lakhs)

RWA

(` in Lakhs)

CAR

(%)

2003-04 78.87 5.81 84.68 388.62 21.79

2004-05 78.80 5.85 84.65 371.27 22.80

2005-06 80.20 6.20 86.40 371.61 23.25

2006-07 78.56 6.26 84.82 344.10 24.65

2007-08 83.52 7.03 90.55 352.61 25.68

2008-09 89.28 7.35 96.63 365.88 26.41

2009-10 100.43 7.89 108.32 420.50 25.76

2010-11 109.79 8.01 117.80 468.02 25.17

2011-12 124.08 8.55 132.63 535.23 24.78

2012-13 115.71 9.22 124.93 432.73 28.87

Average 24.91

(Source: Computed from Annual Reports of TRCCBL of last 10 Years)

Table 5.146 shows Capital adequacy ratio of TRCCBL for 10 years from 2003-04

to 2012-13. Minimum CAR required for any Urban Co-operative Bank is 9 percent after

2005 according to RBI and Basel committee report. In above table the researcher can

observed that CAR of the bank found more than 9 percent i.e. more than required rate as

per RBI in all the years. Average CAR of the 10 years period was 24.91 percent it also

more than 9 percent it shows good financial adequacy of the bank during the period of

study. From the above table the researcher can clearly observed that CAR of the bank

neither continuously increase nor decrease. But bank has maintained more that 20

percent CAR during the period of the study. During the period of the study highest CAR

of the bank found in the year 2012-13 and lowest ratio of the bank found in the year

2003-04 that was 28.87 percent and 21.79 percent respectively.


Formula:


Table 5.147

Table showing IITIR of TRCCBL of last 10 years

Year Total Interest

(` in Lakhs)

Total Income

(` in Lakhs)

IITIR

(%)

2003-04 119.68 129.47 92.44

2004-05 65.71 66.88 98.25

2005-06 63.86 65.16 98.00

2006-07 65.12 66.78 97.51

2007-08 63.45 65.87 96.32

2008-09 67.85 69.32 97.88

2009-10 78.88 80.54 97.94

2010-11 90.63 92.06 98.45

2011-12 95.37 96.49 98.84

2012-13 93.82 94.83 98.93

Average 97.45

(Source: Calculated from Annual Reports of TRCCBL of last 10 Years)

Above table shows that out of the total income of TRCCBL Ltd. Randheja on an



income ratio was found 98.93 percent in the year 2012-13 and lowest ratio was 92.44

percent in the year 2003-04. So the researcher can conclude on the basis of above table

that average interest and discount income of the bank was average 97.45 percent of the

total income of the bank and other income of were only 2 percent of the total income of

the bank.


Formula:

Table 5.148

Table showing IETER of TRCCBL of last 10 years


(` in Lakhs)

Total Expenses

(` in Lakhs)

IETER

(%)

2003-04 109.51 121.14 90.40

2004-05 53.12 63.08 84.21

2005-06 48.20 61.30 78.63

2006-07 46.96 65.59 71.60

2007-08 40.39 61.46 65.72

2008-09 46.35 63.58 72.90

2009-10 54.98 72.59 75.75

2010-11 61.43 82.92 74.08

2011-12 60.13 83.55 71.97

2012-13 65.21 84.83 76.88

Average 76.21



The above table no.5.148 showing interest expenses to total expenses ratio the

highest ratio was found 90.40 percent and lowest ratio was 65.72 percent in the year

2003-04 and 2007-08 respectively. Average of 10 years ratio was 76.21 percent i.e. on an

average during last 10 years out of total expenses of the bank around 76 percent portion

of total expenses was interest expenses on deposits and borrowings i.e. ratio of other

operating expenses with total expenses was average 24 percent.


Formula:

Table 5.149

Table showing NPNAR of TRCCBL of last 10 years

Year Net Profit

(` in Lakhs)

Net Assets

(` in Lakhs)

NPNAR

(%)

2003-04 8.33 103.03 8.08

2004-05 3.80 108.67 3.50

2005-06 3.86 106.30 3.63

2006-07 1.19 114.37 1.04

2007-08 4.42 113.43 3.89

2008-09 5.74 121.89 4.71

2009-10 7.95 134.86 5.90

2010-11 9.14 146.18 6.25

2011-12 12.94 155.69 8.31

2012-13 10.01 163.23 6.13





the NPNAR of the bank remained in fluctuating position during last ten years the period

of the study


Formula:


Table 5.150

Table showing EPS of TRCCBL of last 10 years

Year Net Profit

(` in Lakhs)

No. of Equity

Share (in Lakhs)

EPS

(`)

2003-04 8.33 1.23 6.80

2004-05 3.80 1.31 2.90

2005-06 3.86 1.32 2.93

2006-07 1.19 1.31 0.91

2007-08 4.42 1.35 3.26

2008-09 5.74 1.46 3.93

2009-10 7.95 1.72 4.63

2010-11 9.14 1.92 4.76

2011-12 12.94 1.97 6.56

2012-13 10.01 1.97 5.08

Average 4.18


Earning per share of TRCCBL Ltd. Randheja found `4.18 per share on an

average during last 10 years. During the period of the study maximum EPS earned by the

bank in the year 2003-04 `6.80 per share and minimum EPS earned by the bank `0.91 in

the year 2005-06. Bank has earned average `4.18 per share annually against the share of

`25 each i.e. 16.72 percent.


Formula:


Table 5.151

Table showing IIAWFR of TRCCBL of last 10 years

Year Total Interest

(` in Lakhs)

AWF

(` in Lakhs)

IIAWFR

(%)

2003-04 119.68 647.87 18.47

2004-05 65.71 675.94 9.72

2005-06 63.86 696.12 9.17

2006-07 65.12 694.44 9.38

2007-08 63.45 653.67 9.71

2008-09 67.85 676.32 10.03

2009-10 78.88 765.09 10.31

2010-11 90.63 861.33 10.52

2011-12 95.37 929.74 10.26

2012-13 93.82 947.86 9.90

Average 10.75



From the above table 5.151 it is clear that during last 10 year the highest interest

income to average working fund ratio is 18.47 percent in the year 2003-04 and lowest

ratio is 9.17 percent in the years 2005-06. Average IIAWFR of the bank of last ten years

was remained10.75 percent from 2003-04 to 2012-13 the period of the study.


Formula:

Table 5.152

Table showing IEAWFR of TRCCBL of last 10 years


(` in Lakhs)

AWF

(` in Lakhs)

IEAWFR

(%)

2003-04 109.51 647.87 16.90

2004-05 53.12 675.94 7.86

2005-06 48.20 696.12 6.92

2006-07 46.96 694.44 6.76

2007-08 40.39 653.67 6.18

2008-09 46.35 676.32 6.85

2009-10 54.98 765.09 7.19

2010-11 61.43 861.33 7.13

2011-12 60.13 929.74 6.47

2012-13 65.21 947.86 6.88


Above table shows that during last 10 year the highest interest expenses to




percent against it average interest expense ratio 7.92 percent of last ten years i.e. the bank

has average earning gap of interest income 2.83 percent of average working fund.


Formula:


Table 5.153

Table showing GPAWFR of TRCCBL of last 10 years

Year Gross Profit

(` in Lakhs)

AWF

(` in Lakhs)

GPAWFR

(%)

2003-04 8.33 647.87 1.29

2004-05 3.80 675.94 0.56

2005-06 3.86 696.12 0.55

2006-07 1.19 694.44 0.17

2007-08 4.42 653.67 0.68

2008-09 5.74 676.32 0.85

2009-10 7.95 765.09 1.04

2010-11 9.14 861.33 1.06

2011-12 12.94 929.74 1.39

2012-13 10.01 947.86 1.06






Formula:

Table 5.154

Table showing NPAWFR of TRCCBL of last 10 years

Year Net Profit

(` in Lakhs)

AWF

(` in Lakhs)

NPAWFR

(%)

2003-04 8.33 647.87 1.29

2004-05 3.80 675.94 0.56

2005-06 3.86 696.12 0.55

2006-07 1.19 694.44 0.17

2007-08 4.42 653.67 0.68

2008-09 5.74 676.32 0.85

2009-10 7.95 765.09 1.04

2010-11 9.14 861.33 1.06

2011-12 12.94 929.74 1.39

2012-13 10.01 947.86 1.06






percent of its average working fund as net profit during last 10 years the period of study

on an average. Here net profit and gross profit of the bank were equal because there was

no any provision made by the bank.


Formula:

Table 5.155

Table showing ECAWFR of TRCCBL of last 10 years

Year Employee exp.

(` in Lakhs)

AWF

(` in Lakhs)

ECAWFR

(%)

2003-04 6.21 647.87 0.96

2004-05 6.08 675.94 0.90

2005-06 6.62 696.12 0.95

2006-07 6.48 694.44 0.93

2007-08 7.56 653.67 1.16

2008-09 4.92 676.32 0.73

2009-10 5.78 765.09 0.76

2010-11 6.86 861.33 0.80

2011-12 7.26 929.74 0.78

2012-13 8.35 947.86 0.88





percent in the year 2007-08 and lowest ratio 0.73 percent in the year 2012-13 was found.


Formula:


Table 5.156

Table showing CoDR of TRCCBL of last 10 years


(` in Lakhs)

Average Deposits

(` in Lakhs)

CoDR

(%)

2003-04 109.51 505.05 21.68

2004-05 53.12 538.73 9.86

2005-06 48.20 558.27 8.63

2006-07 46.96 556.37 8.44

2007-08 40.39 513.95 7.86

2008-09 46.35 527.85 8.78

2009-10 54.98 602.61 9.12

2010-11 61.43 679.83 9.04

2011-12 60.13 725.83 8.28

2012-13 65.21 731.86 8.91

Average 10.06 (Source: Calculated from Annual Reports of TRCCBL of last 10 Years)

From the above table showing cost of deposit ratios of the bank the researcher

was found that the percentages of Interest on Average Deposits during last 10 years

highest 21.68 percent in the year 2003-04 and lowest 7.86 percent in the year 2007-08

and average cost of deposits last 10 years of the bank remained 10.06 percent.

(XIII) Summary of the above Ratios of TRCCBL Randheja:

Table 5.157

A summary of all the ratios of TRCCBL Calculated above Y

ears

CD

R (%

)

CA

R (%

)

IITIR

(%)

IET

ER

(%)

NP

NA

R (%

)

EP

S (`

)

IIAW

FR

(%)

IEA

WF

R (%

)

GP

AW

FR

(%)

NP

AW

FR

(%)

EC

AW

FR

(%)

CO

DR

(%)

03-04 55.43 21.79 92.44 90.40 8.08 6.80 18.47 16.90 1.29 1.29 0.96 21.68

04-05 60.76 22.80 98.25 84.21 3.50 2.90 9.72 7.86 0.56 0.56 0.90 9.86

05-06 52.97 23.25 98.00 78.63 3.63 2.93 9.17 6.92 0.55 0.55 0.95 8.63

06-07 60.06 24.65 97.51 71.60 1.04 0.91 9.38 6.76 0.17 0.17 0.93 8.44

07-08 67.44 25.68 96.32 65.72 3.89 3.26 9.71 6.18 0.68 0.68 1.16 7.86

08-09 68.18 26.41 97.88 72.90 4.71 3.93 10.03 6.85 0.85 0.85 0.73 8.78

09-10 69.57 25.76 97.94 75.75 5.90 4.63 10.31 7.19 1.04 1.04 0.76 9.12

10-11 67.92 25.17 98.45 74.08 6.25 4.76 10.52 7.13 1.06 1.06 0.80 9.04

11-12 61.63 24.78 98.84 71.97 8.31 6.56 10.26 6.47 1.39 1.39 0.78 8.28

12-13 55.43 28.87 98.93 76.88 6.13 5.08 9.90 6.88 1.06 1.06 0.88 8.91

Avg. 61.94 24.92 97.46 76.21 5.14 4.18 10.75 7.91 0.87 0.87 0.89 10.06


11.2 NPA Management of the TRCCBL Randheja:

Table 5.158

Table showing NPA Management of TRCCBL Randheja of last 10 years

Yea

rs

Tota

l

Ad

van

ces

(` i

n L

ak

hs)

Gro

ss N

PA

(` i

n L

ak

hs)

Gro

ss N

PA

(%) Total Provision

(ìn Lakhs)

NE

T N

PA

(ìn

La

kh

s)

NE

T N

PA

(%)

1 2 1/2x100 Std.

Assets NPA

Total

SA+NPA

03-04 294.41 1.21 0.41 1.25 6.79 8.04 -6.83 -2.39

04-05 321.00 1.28 0.40 1.25 6.98 8.23 -6.95 -2.22

05-06 302.06 2.44 0.81 1.25 7.16 8.41 -5.97 -2.03

06-07 320.44 5.34 1.67 1.25 2.19 3.44 1.90 0.60

07-08 316.98 13.53 4.27 1.25 5.37 6.62 6.91 2.23

08-09 376.28 6.07 1.61 1.25 6.92 8.17 -2.10 -0.57

09-10 441.69 5.58 1.26 1.25 9.26 10.51 -4.93 -1.14

10-11 492.27 5.17 1.05 1.50 9.66 11.16 -5.99 -1.25

11-12 447.99 0.57 0.13 1.50 11.00 12.50 -11.93 -2.74

12-13 408.43 25.08 6.14 1.50 13.1 14.60 10.48 2.66



0.4

1

0.4

0

0.8

1 1.6

7

4.2

7

1.6

1

1.2

6

1.0

5

0.1

3

6.1

4

-2.3

9

-2.2

2

-2.0

3

0.6

0

2.2

3

-0.5

7

-1.1

4

-1.2

5

-2.7

4

2.6

6

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Gro

ss a

nd

Net

NP

A (

%)

Years

Chart 5.28 Gross and Net NPA of TRCCBL Randheja

Gross NPA

Net NPA



management of The Randheja Commercial Co-operative Bank Ltd. for the period of the

study from the year 2003-04 to 2012-13. It shows Gross NPA and Net NPA of the bank

in amount and in percentage. It also shown provision maintained by the bank against non

performing assets of the bank during the period of the study.



RBI. From the above table 5.158 and chart 5.28 the researcher found that Gross NPA of

TRCCBL Randheja was remained less than 10 percent in all the years of the study 2003-

04 to 2012-13. It was a great achievement for the bank that bank has maintained its

GNPA less than 10 percent in continuous 10 years the period of the study. During the

period of the study the highest GNPA found 6.14 percent in the year 2012-13 and lowest

percentage of GNPA found 0.13 in the year 2011-12. The Average GNPA of the bank of

ten years from 2002-03 to 2012-13 was 1.78 percent. From the above statistic the

researcher can conclude that recovery and collection policy of the bank is too good

during the period of the study. Therefore bank got success to maintain its GNPA less

than 7 percent throughout the period of the study.



of the bank was remained less than 5 percent in all the years of the study. Not only this

but also Net NPA of the bank remained less than zero in 8 years out of 10 years the

period of the study. Bank has maintained its Net NPA zero continuously from last 10

years from 2003-04 to 2012-13 except in years 2006-07 and 2007-08. It was a great

achievement for the bank.


can said that the NPA management of the bank found too good during the period of the



regulation recommended by RBI time to time. Therefore Net NPA of the bank found

zero in 8 years out of 10 years and Gross NPA less than 10 percent throughout the period

of the study.


11.3 Common Size Statement and Trend Analysis of TRCCB Ltd. Randheja:

(I) Common Size Income Statement of TRCCBL Randheja.:

Table: 5.159

ìn Lakhs


Incomes:





Other Receipts 9.24 0.52 0.41 0.60 1.51 0.57 0.74 0.64 0.54 0.59


Total (A) 129.47 66.88 65.16 66.78 65.87 69.32 80.54 92.06 96.49 94.83


Expenditures:









Legal fees 0.00 0.00 0.00 0.00 0.00 0.00 0.13 0.08 0.02 0.03











Provisions 0.00 0.31 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Other expenses 3.46 1.58 3.95 9.35 11.06 10.26 9.67 11.84 12.66 7.76


Total Expenses (B) 121.14 63.08 61.30 65.59 61.46 63.58 72.59 82.92 83.55 84.83


Net Profit (A-B) 8.33 3.80 3.86 1.19 4.42 5.74 7.95 9.14 12.94 10.01






(Source: Calculated from the published annual reports of TRCCB Ltd. Randheja of last 10 years)




loss account) of The Randheja Commercial Co-operative Bank Ltd. Randheja for 10 years


Total Operating Expenses and Net Profit of TRCCB ltd. Randheja for the same period


the table no.5.159.

From the above Common Size Analysis of TRCCBL profit and loss account the







average 2.54 percent only.







0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00P

erce

nta

ge

Years

Chart 5.29 Trend analysis of P/L accounts of TRCCBL Randheja


Operating Income


Operating Expenses



average employee related expenses were 8.33 percent of the total income. With the help of

above figures the researcher can conclude that overall 78.59 percent of the total income

was interest expenses and employee’s expenses while 21.41 percent of the total operating

income was other operating expenditure and provisions included in total operating

expenses of the bank.





the year 2006-07.



expenses shown parallel and decreasing trend from 2004-05 to 2012-13. From the above

chart 5.29 it is clear that operating expenses increase with increase in operating income

and vice versa. There is a strong positive correlation between Operating income and

Operating expenses of the bank. Correlation coefficient between operating income and


are strongly correlated with operating income and also depend on operating income.





not completely depend on operating income and operating expenses of the bank but other

factors also affect on net profit of the bank. Zigzag shape of profit trend percentage line

indicates that net profit of the bank increase and decrease during the period of the study as

compare to 2003-04. Finally at the end of the March 2013 net profit of the bank has

increased by 20.11 percent as compare to base year 2003-04. During ten years trend

percentage line of net profit showing profit has been decreased during the year 2004-05 to

2006-07 and then start increasing and continue till the last year of the study 2012-13.

Trend analysis shown though income shows decreasing trend but overall bank has increase

its profitability during the period of the study it indicate that ban has maintained good

control on its operating expenses.


(II) Common size Balance sheets of TRCCB Ltd. Randheja:

Table 5.160

ìn Lakhs

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Liabilities:





Deposits 531.12 528.33 570.20 533.54 470.00 551.89 634.89 724.76 726.89 736.83


Borrowings 0.00 18.00 0.00 9.00 15.36 18.44 0.00 0.00 0.00 0.00






Provision for Interest due 4.02 0.47 0.53 0.32 1.45 0.81 0.58 0.50 0.04 4.16









Total 670.69 681.19 711.04 677.83 631.55 723.13 807.05 915.61 943.87 951.85


Assets:



Call Money 8.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Investments 259.63 261.15 261.60 255.00 204.33 206.45 208.56 210.96 205.82 232.37


Advances 294.41 321.00 302.06 320.44 316.98 376.28 441.69 492.27 447.99 408.43








Other Assets 0.36 0.38 0.28 0.40 0.40 0.33 0.30 0.27 0.21 0.24


Advanced Income Tax 0.00 0.00 0.00 1.50 0.53 2.44 3.44 3.45 4.94 6.18


Total 670.69 681.19 711.04 677.83 631.55 723.13 807.05 915.61 943.87 951.85



Trend Percentage:

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13






(Source: Calculated from the published annual reports of TRCCB ltd. Randheja of last 10 years)


0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

2003-042004-052005-062006-072007-082008-092009-102010-112011-122012-13

Per

cen

tag

e

Chart 5.30 Trend Analysis of Balance sheet of TRCCB Ltd. Randheja







Above table 5.160 shows Common Size Balance sheet of The Randheja

Commercial Cooperative Bank Ltd. Randheja of last 10 years from 2003-04 to 2012-13.

It also shows the trend percentage analysis of major items of the balance sheet. Chart


5.160.

From the above Common Size Analysis of the balance sheet of the bank it is clear

that liabilities side of the balance sheet the most important items are deposits and reserve

& surplus. Out of the total funds invested in the bank’s assets major portion provided by



08. During the period of study highest and lowest percentage of reserves and surplus

with total assets was found 12.60 percent and 10.32 in the year 2007-08 and 2005-06.

Average Percentage of 10 years in case of Reserves of the bank remained 11.41 percent

and in case of deposits it remained 77.86 percent. Overall average 89 percent of the total

assets of the bank financed by these two components i.e. share of the other items in the

balance sheet was 11 percent average during last 10 years from 2003-04 to 2012-13.

During the last 10 years borrowings of the bank remained average 0.9 percent of the total

assets of the bank. From the above balance sheet the researcher clearly seen that bank has

paid its borrowings as early as possible. Out of the ten years period of the study the

borrowing was found in four years only. Therefore the major liabilities in the bank were

found deposits only. Average Percentage of share capital in total of the balance sheet of

10 years remained 5.02 percent.

On the assets side of the balance sheet of the major items are as usual in other

banks of the study, Cash & Bank Balances, Investments and Advances. Above Common

size analysis of the balance sheet of the TRCCB Ltd. Randheja state that during the

period of last 10 years share of Cash & Bank Balances, Investments and Advances in

total assets of the bank remained on an average 98.73 percent and share of other items in

the balance sheet on an average only 1.27 percent of the total assets during last 10 years.

During the period of study highest percentages of Cash & Bank Balances, Investments

and Advances with total assets were found 30.87, 38.71 and 53.76 in the year 2012-13,

2003-04 and 2010-11 respectively. On the other hand lowest percentages were found

14.10, 21.81 and 42.48 in the year 2006-07, 2011-12 and 2005-06 respectively. The bank


has zero amount of call money during the period of the study except in the year 20003-

04 it was `8,00,000.

Chart 5.30 shows trend analysis of the main items of balance sheets of TRCCB

ltd. Randheja of last 10 years. Trend percentage line of share capital of the bank shows

increasing trend of share capital of the bank. In the year 2012-13 share capital of the

bank increased by 60.72 percent as compare to base year 2003-04. Increasing trend of the

share capital point out that solvency position of the bank become strong during the

period of the study. Major increased in share capital has done in last four years of the

study period from 2007-08 to 2011-12. Reserve and surplus also shows increasing trend.

As compare to the base year 2003-04 reserves and surplus of the bank has increased by

57.46 percent in the year 2012-13. Continuous increase in reserves and surplus makes

bank’s solvency position more strong and powerful.


neither continuously increased nor decrease. It shows mixed trend of increasing and

decreasing during the period of the study. It state that deposits of the bank has increased

by 38.73 percent as compare to base year 2003-04 at the end of the year 2012-13. During

the period of the study the researcher found that deposits of the bank shows less

decreasing and more increasing trend. It indicates increase in faith of depositors in bank

during the period of the study. On the other hand advances of the bank also shows mixed

trend of increasing and decreasing during the period of the study. But over all advances

of the bank has increased by 38.73 percent in the year 2012-13 as compare to base year

2003-04. Normally banks uses it deposits for the purpose of providing advances to its

customers. The TRCCB uses its deposits well to provide advances to its customers. The

researcher can conclude like that because the advances trend of the bank same as like

deposit. To know that the researcher has calculated Co-relation co-efficient between

deposits advances which was 0.85. It indicates that there is strong positive co-relation

between deposits accepted by bank and advances provided by bank to its customers. The

researcher can conclude here that advances of the bank have depended on deposits of the

bank 85 percent and on other funds 15 percent.

Investments of the bank shown mixed trend during the period of the study.

As compare to the year 2003-04 the investment of the bank has decreased by 10.50

percent in the year 2012-13.


12. FINANCIAL PERFORMANCE OF ‘‘THE VALLABH

VIDYANAGAR COMMERCIAL CO-OPERATIVE BANK LTD.’

(VVCC):

12.1 Ratio Analysis of ‘The VVCC Bank Ltd.’:


Formula:

Table 5.161

Table showing CDR of VVCC of last 10 years

Year Total Advances

(` in Lakhs)

Total Deposit

(` in Lakhs)

CDR

(%)

2003-04 2710.42 5100.00 53.15

2004-05 2887.58 5205.44 55.47

2005-06 2446.99 5124.77 47.75

2006-07 2416.45 5220.14 46.29

2007-08 2176.34 5544.86 39.25

2008-09 1857.88 6218.14 29.88

2009-10 2047.99 7335.71 27.92

2010-11 2389.82 7711.14 30.99

2011-12 3080.05 8287.73 37.16

2012-13 4000.51 9068.93 44.11

Average 41.20

(Source: Computed from Annual Reports of VVCC Bank Ltd. of last 10 Years)

Table no. 5.161 shows credit deposit ratio of The VVCC Bank Ltd. for 10 years

from 2003-04 to 2012-13. From above the table it is clear that bank’s credit deposit ratio

remained between 27 to 56 percent. Average percentage of last 10 years CDR was

41.20. It indicates VVCC bank uses its deposits on an average 41 percentage to give

advances to their customers during the period of study of last 10 years from 2003-04 to

2012-13. Highest CDR found 55.47 percent in the year 2004-05 and lowest percentage



(CRAR):

Formula:


Table 5.162

Table showing CAR of VVCC of last 10 years


(` in Lakhs)

Tier II Capital

(` in Lakhs)

Total TI+TII

(` in Lakhs)

RWA

(` in Lakhs)

CAR

(%)

2003-04 401.12 40.10 441.22 1935.18 22.80

2004-05 423.86 44.50 468.36 2172.34 21.56

2005-06 482.85 47.81 530.66 2262.92 23.45

2006-07 514.59 53.70 568.29 2215.57 25.65

2007-08 527.68 52.78 580.46 2333.99 24.87

2008-09 597.70 60.76 658.46 2151.82 30.60

2009-10 614.82 62.11 676.93 2342.30 28.90

2010-11 643.47 64.45 707.92 2546.47 27.80

2011-12 693.28 70.20 763.48 2415.31 31.61

2012-13 777.33 76.43 853.76 2866.89 29.78

Average 26.70 (Source: Computed from Annual Reports of VVCC Bank Ltd. of last 10 Years)

Table 5.162 shows Capital adequacy ratio of The VVCC bank ltd. for 10 years

from 2003-04 to 2012-13. Minimum CAR required for any Urban Co-operative Bank is

9 percent after 2005 according to RBI and Basel committee report. In above table the

researcher can observed that CAR of the bank found more than 9 percent i.e. more than

required rate as per RBI in all the years. Average CAR of the 10 years period was 26.70

percent it also more than 9 percent it shows good financial adequacy of the bank during

the period of study. From the above table the researcher can clearly observed that CAR

of the bank neither continuously increase nor decrease. The highest CAR of the bank

found 31.61 percent and the lowest CAR found 21.56 percent in the year 2011-12 and

2005-06 respectively.


Formula:


Table 5.163

Table showing IITIR of VVCC of last 10 years

Year Total Interest

(` in Lakhs)

Total Income

(` in Lakhs)

IITIR

(%)

2003-04 483.45 495.14 97.64

2004-05 531.90 545.70 97.47

2005-06 580.67 596.33 97.37

2006-07 570.43 586.23 97.30

2007-08 582.26 604.49 96.32

2008-09 663.15 762.63 86.96

2009-10 667.29 698.48 95.53

2010-11 707.15 720.83 98.10

2011-12 818.92 826.83 99.04

2012-13 923.42 959.13 96.28

Average 96.20

(Source: Calculated from Annual Reports of VVCC Bank Ltd. of last 10 Years)

Above table shows that out of the total income of The VVCC Ltd. on an average

96.20 percent income was interest and discount income during last ten years from 2003-

04 to 2012-13. During the period of the study highest interest income to total income


the year 2009-10. The researcher can conclude on the basis of above table that average

interest and discount income of the bank was remained 96 percent of the total income of

the bank and other income of the bank were only average 4 percent of the total income of

the bank.


Formula:

Table 5.164

Table showing IETER of VVCC of last 10 years


(` in Lakhs)

Total Expenses

(` in Lakhs)

IETER

(%)

2003-04 325.70 466.80 69.77

2004-05 342.35 512.48 66.80

2005-06 357.42 555.65 64.32

2006-07 376.80 543.67 69.31

2007-08 389.79 568.66 68.55

2008-09 442.84 677.82 65.33

2009-10 453.66 633.45 71.62

2010-11 477.92 660.89 72.31

2011-12 508.93 759.83 66.98

2012-13 577.35 884.13 65.30

Average 68.03










Formula:

Table 5.165

Table showing NPNAR of VVCC of last 10 years

Year Net Profit

(` in Lakhs)

Net Assets

(` in Lakhs)

NPNAR

(%)

2003-04 28.34 1288.71 2.20

2004-05 33.22 1383.82 2.40

2005-06 40.68 1534.51 2.65

2006-07 42.56 1584.66 2.69

2007-08 35.83 1617.20 2.22

2008-09 84.81 1656.27 5.12

2009-10 65.03 1738.50 3.74

2010-11 59.94 1800.95 3.33

2011-12 67.00 1847.17 3.63

2012-13 75.00 1967.44 3.81





the NPNAR of the bank remained in fluctuating position during last ten years the period

of the study.


Formula:


Table 5.166

Table showing EPS of VVCC of last 10 years

Year Net Profit

(` in Lakhs)

No. of Equity

Share (in Lakhs)

EPS

(`)

2003-04 28.34 0.28 100.14

2004-05 33.22 0.29 113.39

2005-06 40.68 0.61 66.61

2006-07 42.56 0.69 61.38

2007-08 35.83 0.69 51.89

2008-09 84.81 0.67 125.83

2009-10 65.03 0.72 90.00

2010-11 59.94 0.84 71.54

2011-12 67.00 1.07 62.37

2012-13 75.00 1.46 51.37

Average 79.45


Earning per share of The VVCC Bank Ltd. found `79.45 per share on an

average during last 10 years. During the period of the study maximum EPS earned by the

bank in the year 2008-09 `125.83 per share and minimum EPS earned by the bank

`51.37 in the year 2012-13. Bank has earned average `79.45 per share annually against

the share of `100 each i.e. 79.45 percent.


Formula:


Table 5.167

Table showing IIAWFR of VVCC of last 10 years

Year Total Interest

(` in Lakhs)

AWF

(` in Lakhs)

IIAWFR

(%)

2003-04 483.45 6909.01 7.00

2004-05 531.90 7693.89 6.91

2005-06 580.67 7844.66 7.40

2006-07 570.43 7915.27 7.21

2007-08 582.26 8125.57 7.17

2008-09 663.15 9084.73 7.30

2009-10 667.29 9970.69 6.69

2010-11 707.15 10257.58 6.89

2011-12 818.92 10708.28 7.65

2012-13 923.42 11397.46 8.10

Average 7.23




income to average working fund ratio was 8.10 percent in the year 2012-13 and lowest

ratio was 7 percent in the years 2003-04. Average IIAWFR of the bank of last ten years

was 7.23 percent from 2003-04 to 2012-13 the period of the study.


Formula:

Table 5.168

Table showing IEAWFR of VVCC of last 10 years


(` in Lakhs)

AWF

(` in Lakhs)

IEAWFR

(%)

2003-04 325.70 6909.01 4.71

2004-05 342.35 7693.89 4.45

2005-06 357.42 7844.66 4.56

2006-07 376.80 7915.27 4.76

2007-08 389.79 8125.57 4.80

2008-09 442.84 9084.73 4.87

2009-10 453.66 9970.69 4.55

2010-11 477.92 10257.58 4.66

2011-12 508.93 10708.28 4.75

2012-13 577.35 11397.46 5.07









Formula:


Table 5.169

Table showing GPAWFR of VVCC of last 10 years

Year Gross Profit

(` in Lakhs)

AWF

(` in Lakhs)

GPAWFR

(%)

2003-04 48.26 6909.01 0.70

2004-05 71.75 7693.89 0.93

2005-06 88.47 7844.66 1.13

2006-07 69.07 7915.27 0.87

2007-08 57.08 8125.57 0.70

2008-09 114.99 9084.73 1.27

2009-10 86.23 9970.69 0.86

2010-11 79.94 10257.58 0.78

2011-12 98.00 10708.28 0.92

2012-13 140.04 11397.46 1.23



year 2008-09 and lowest ratio was 0.70 percent in the year 2003-04 and 2007-08.

Average GPAWFR remained 0.94 percent of last 10 years from 2003-04 to 2012-13.


Formula:

Table 5.170

Table showing NPAWFR of VVCC of last 10 years

Year Net Profit

(` in Lakhs)

AWF

(` in Lakhs)

NPAWFR

(%)

2003-04 28.34 6909.01 0.41

2004-05 33.22 7693.89 0.43

2005-06 40.68 7844.66 0.52

2006-07 42.56 7915.27 0.54

2007-08 35.83 8125.57 0.44

2008-09 84.81 9084.73 0.93

2009-10 65.03 9970.69 0.65

2010-11 59.94 10257.58 0.58

2011-12 67.00 10708.28 0.63

2012-13 75.00 11397.46 0.66







on an average.


Formula:

Table 5.171

Table showing ECAWFR of VVCC of last 10 years

Year Employee exp.

(` in Lakhs)

AWF

(` in Lakhs)

ECAWFR

(%)

2003-04 51.22 6909.01 0.74

2004-05 55.26 7693.89 0.72

2005-06 62.03 7844.66 0.79

2006-07 65.00 7915.27 0.82

2007-08 66.60 8125.57 0.82

2008-09 96.97 9084.73 1.07

2009-10 93.77 9970.69 0.94

2010-11 96.02 10257.58 0.94

2011-12 111.23 10708.28 1.04

2012-13 114.26 11397.46 1.00




working fund is 0.89 percent per annum. During last 10 years highest ECAWFR was

remained 1.07 percent in the year 2008-09 and lowest ratio was remained 0.72 percent in

the year 2004-05.


Formula:


Table 5.172

Table showing CoDR of VVCC of last 10 years


(` in Lakhs)

Average Deposits

(` in Lakhs)

CoDR

(%)

2003-04 325.70 4994.90 6.52

2004-05 342.35 5152.72 6.64

2005-06 357.42 5165.11 6.92

2006-07 376.80 5172.46 7.28

2007-08 389.79 5382.50 7.24

2008-09 442.84 6256.93 7.08

2009-10 453.66 7152.38 6.34

2010-11 477.92 7523.45 6.35

2011-12 508.93 7999.44 6.36

2012-13 577.35 8694.64 6.64

Average 6.74 (Source: Calculated from Annual Reports of VVCC Bank Ltd. of last 10 Years)

From the above table; showing cost of deposit ratio the researcher was found

that the percentages of Interest on Average Deposits during last 10 years highest 7.28

percent in the year 2006-07 and lowest 6.34 percent in the year 2009-10 and average cost

of deposits last 10 years of the bank remained 6.74 percent.

(XIII) Summary of the above Ratios of ‘The VVCC Bank Ltd.’:

Table 5.173

A summary of all the ratios of The VVCC Bank Ltd. Calculated above Y

ears

CD

R (%

)

CA

R (%

)

IITIR

(%)

IET

ER

(%)

NP

NA

R (%

)

EP

S (`

)

IIAW

FR

(%)

IEA

WF

R (%

)

GP

AW

FR

(%)

NP

AW

FR

(%)

EC

AW

FR

(%)

CO

DR

(%)

03-04 53.15 22.80 97.64 69.77 2.20 100.14 7.00 4.71 0.70 0.41 0.74 6.52

04-05 55.47 21.56 97.47 66.80 2.40 113.39 6.91 4.45 0.93 0.43 0.72 6.64

05-06 47.75 23.45 97.37 64.32 2.65 66.61 7.40 4.56 1.13 0.52 0.79 6.92

06-07 46.29 25.65 97.30 69.31 2.69 61.38 7.21 4.76 0.87 0.54 0.82 7.28

07-08 39.25 24.87 96.32 68.55 2.22 51.89 7.17 4.80 0.70 0.44 0.82 7.24

08-09 29.88 30.60 86.96 65.33 5.12 125.83 7.30 4.87 1.27 0.93 1.07 7.08

09-10 27.92 28.90 95.53 71.62 3.74 90.00 6.69 4.55 0.86 0.65 0.94 6.34

10-11 30.99 27.80 98.10 72.31 3.33 71.54 6.89 4.66 0.78 0.58 0.94 6.35

11-12 37.16 31.61 99.04 66.98 3.63 62.37 7.65 4.75 0.92 0.63 1.04 6.36

12-13 44.11 29.78 96.28 65.30 3.81 51.37 8.10 5.07 1.23 0.66 1.00 6.64

Avg. 41.20 26.70 96.20 68.03 3.18 79.45 7.23 4.72 0.94 0.58 0.89 6.74


12.2 NPA Management of ‘The VVCC Bank Ltd.’:

Table 5.174

Table showing NPA Management of The VVCC Bank Ltd. of last 10 years

Yea

rs

Tota

l

Ad

van

ces

(` i

n L

ak

hs)

Gro

ss N

PA

(` i

n L

ak

hs)

Gro

ss N

PA

(%)

Total Provision

(` in Lakhs)

NE

T N

PA

(ìn

La

kh

s)

NE

T N

PA

(%)

1 2 1/2x100

03-04 2710.42 652.21 24.06 610.42 41.79 1.99

04-05 2887.58 631.12 21.86 620.92 10.20 0.45

05-06 2446.99 610.34 24.94 643.89 -33.55 -1.86

06-07 2416.45 596.65 24.69 656.09 -59.44 -3.38

07-08 2176.34 584.42 26.85 668.86 -84.44 -5.60

08-09 1857.88 502.02 27.02 698.64 -196.62 -16.96

09-10 2047.99 493.61 24.10 709.92 -216.31 -16.17

10-11 2389.82 395.68 16.56 718.91 -323.23 -19.34

11-12 3080.05 322.73 10.48 728.96 -406.23 -17.28

12-13 4000.51 278.19 6.95 740.21 -462.02 -14.17



24

.06

21

.86

24

.94

24

.69

26

.85

27

.02

24

.10

16

.56

10

.48

6.9

5

1.9

9

0.4

5

-1.8

6

-3.3

8

-5.6

0

-16

.96

-16

.17

-19

.34

-17

.28

-14

.17

-30.00

-20.00

-10.00

0.00

10.00

20.00

30.00

Gro

ss a

nd

Net

NP

A (

%)

Years

Chart 5.31 Gross and Net NPA of The VVCC Bank Ltd.

Gross NPA

Net NPA



management of The Vallabh Vidyanagar Commercial Co-operative Bank Ltd. for the

period of the study from the year 2003-04 to 2012-13. It shows Gross NPA and Net NPA

of the bank in amount and in percentage. It also shown provision maintained by the bank

against non performing assets of the bank during the period of the study.



RBI. From the above table 5.174 and chart 5.31 the researcher found that Gross NPA of

The VVCC Bank was remained more than 10 percent in all the years of the study 2003-

04 to 2011-12 except in the year 2012-13 it was 6.95 percent. It was a achievement for

the bank that bank has successful to reduced its Gross NPA to 6.95 percent which was

highest 27.02 percent in the year 2008-09.



of the bank was remained less than 5 percent in all the years of the study. Not only this

but also Net NPA of the bank remained less than zero in 8 years out of 10 years the

period of the study. Bank has maintained its Net NPA zero continuously from last 8

years from 2005-06 to 2012-13. It shows good NPA management of the bank. Bank

always maintained reserve more than its Gross NPA therefore Net NPA of the bank

remained Zero. But a high ratio of Gross NPA during the last 10 years is a matter of

worry for the bank it increased possibilities of bad debts.


can said that the NPA management of the bank found good during the period of the study

from 2003-04 to 2012-13. Bank has maintained not only enough but more than enough

provision against non performing assets of the bank according to the rules and regulation

recommended by RBI time to time. Therefore Net NPA of the bank found zero in 8 years

out of 10 years. But Gross NPA of the bank found more than 10 percent in 9 years out 10

years the period of the study create a question mark against a good NPA management of

the bank but the good thing is bank got success to reduced its Gross NPA in last two

years and it will be continue in future. Bank has Gross NPA `652.21 lakhs in the years

2003-04 that reduced to `278.19 lakhs in the year 2012-13.


12.3 Common Size Statement and Trend Analysis of ‘The VVCC Bank Ltd.’:

(I) Common Size Income Statement of ‘The VVCC Bank Ltd.’:

Table: 5.175

ìn Lakhs


Incomes:





Other Receipts 9.36 10.12 12.15 11.78 15.88 94.19 26.43 10.29 3.20 30.39


Total (A) 495.14 545.70 596.33 586.23 604.49 762.63 698.48 720.83 826.83 959.13


Expenditures:









Legal fees 0.31 0.00 1.02 1.49 0.90 1.37 1.84 2.01 0.68 7.34











Provisions 19.92 38.53 47.79 26.51 21.25 30.18 21.20 20.00 31.00 65.04


Other expenses 54.50 62.21 70.90 55.60 69.88 84.72 46.28 48.57 92.30 56.92


Total Expenses (B) 466.80 512.48 555.65 543.67 568.66 677.82 633.45 660.89 759.83 884.13


Net Profit (A-B) 28.34 33.22 40.68 42.56 35.83 84.81 65.03 59.94 67.00 75.00






(Source: Calculated from the published annual reports of The VVCC Bank Ltd. of last 10 years)



Above table 5.175 shows Common Size Analysis of Income Statement (profit

and loss account) of The Vallabh Vidyanagar Commercial Co-operative Bank Ltd. for 10

years from 2003-04 to 2012-13 and it also shows Trend Analysis of Total Operating

Income, Total Operating Expenses and Net Profit of VVCC Bank ltd. for the same

period stated above. Chart 5.32 shows graphical presentation of trend analysis as shown

in the table no.5.175.

From the above Common Size Analysis of VVCC Bank Ltd. profit and loss

account the researcher found that out of the total operating income of the bank the major

income is interest and discount income. During the last 10 years average interest income

was remained 96.20 percent of the total operating income. Highest percentage of interest

and discount income with total operating income was found during the period of study

99.04 percent in the year 2010-11 and lowest percentage found 86.96 in the year 2008-

09. Share of other income in total operating income was found during the period of study

on an average 3.8 percent only.

On the other side average percentage of total operating expenses including

various provisions on total operating income was found 92.35 percent during the period

of study. And therefore average net profit during the period of study was found 7.65

percent of the total operating income. Major expenses of the bank were found interest on

deposits and borrowing and employee’s related expenses like salary, provident fund etc.

Average interest expenses during the period of study were 62.83 percent of the total

income and average employee related expenses were 11.78 percent of the total income.

With the help of above figures the researcher can conclude that overall 74.61 percent of

0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

Per

cen

tag

e

Years

Chart 5.32 Trend analysis of P/L accounts of The VVCC Bank

Ltd.


Operating Income


Operating Expenses



the total income was interest expenses and employee’s expenses while 25.39 percent of

the total operating income was other operating expenditure and provisions included in

total operating expenses of the bank.

From the above table 5.175 the researcher also seen that average percentage of

net profit during the period of study was remained 7.65 percent of total operating income

of the bank. The highest net profit to total operating income percentage was found during

last 10 years was 11.12 percent in the year 2008-09 and lowest percentage was found

5.72 in the year 2003-04.


table and chart the researcher can conclude that the total operating income, total

operating expenses shown parallel and increasing trend from 2003-04 to 2012-13 the

whole period of the study. From the above chart 5.32 it is clear that operating expenses

increase with increase in operating income and vice versa. There is a strong positive

correlation between Operating income and Operating expenses of the bank. Correlation


researcher can conclude operating expenses are strongly correlated with operating

income and also depend on operating income.





depend on operating income and operating expenses of the bank but other factors also

affect on net profit of the bank. Zigzag shape of profit trend percentage line indicates that

net profit of the bank increase and decrease during the period of the study as compare to

2003-04. Finally at the end of the March 2013 net profit of the bank has increased by

93.71 percent as compare to base year 2003-04. During ten years trend percentage line

of net profit showing profit has been increased every year during the period of the study.

In the year 2008-09 profit of the bank increased by 199.26 percent as compare to base

year it was highest increase during the period of the study.


(II) Common size Balance sheets of The VVCC Bank Ltd.:

Table 5.176

ìn Lakhs

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Liabilities:

Share Capital (share of Rs.100 each) 28.30 29.30 61.08 69.34 69.05 67.40 72.26 83.79 107.43 146.01




Deposits 5100.00 5205.44 5124.77 5220.14 5544.86 6218.14 7335.71 7711.14 8287.73 9068.93


Borrowings 0.00 0.00 0.00 0.00 0.00 750.86 0.05 0.00 0.00 32.61






Total 7567.61 7820.16 7869.16 7961.39 8289.74 9879.71 10061.67 10453.49 10963.06 11831.85


Assets:



Call Money 282.70 372.98 411.57 431.54 943.95 1415.55 1049.98 1259.14 1866.97 1844.24



Investment 3105.32 3204.32 3668.45 3648.63 3937.26 5306.98 5862.02 5715.00 5166.31 5160.36


Advances 2710.42 2887.58 2446.99 2416.45 2176.34 1857.88 2047.99 2389.82 3080.05 4000.51




Other Assets 1340.77 1232.48 1210.08 1336.97 1105.60 1191.50 989.75 958.88 726.95 665.85


Total 7567.61 7820.16 7869.16 7961.39 8289.74 9879.71 10061.67 10453.49 10963.06 11831.85


Trend Percentage:

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13






(Source: Calculated from the published annual reports of The VVCC Bank ltd. of last 10 years)



Above table 5.176 shows Common Size Balance sheet of The Vallabh Vidyanagar

Commercial Cooperative Bank Ltd. of last 10 years from 2003-04 to 2012-13. It also

shows the trend percentage analysis of major items of the balance sheet. Chart 5.33 shows

graphical presentation of the trend percentage analysis shown in the table no. 5.176.






09. During the period of study highest and lowest percentage of reserves and surplus with

total assets was found 19.03 percent and 15.39 in the year 2006-07 and 2012-13. Average

Percentage of 10 years in case of Reserves of the bank remained 17.1 percent and in case

of deposits it remained 69.34 percent. Overall average 86.44 percent of the total assets of

the bank financed by these two components i.e. share of the other items in the balance

sheet was 13.56 percent average during last 10 years from 2003-04 to 2012-13. During the

last 10 years borrowings of the bank remained average 0.79 percent of the total assets of

the bank. From the above balance sheet the researcher clearly seen that bank has paid its

borrowings as early as possible. Out of the ten years period of the study the borrowing was

found in two years only. Therefore the major liabilities in the bank were found deposits

only. Average Percentage of share capital in total of the balance sheet of 10 years

remained 0.76 percent only.

0.00

100.00

200.00

300.00

400.00

500.00

600.00

Per

cen

tag

e

Years

Chart 5.33 Trend Analysis of Balance sheet of The VVCC Bank

Ltd.

Trend Percentage of

Capital

Trend Percentage of

Reserve and Surplus

Trend Percentage of

Deposits

Trend Percentage of

Advances

Trend Percentage of

Investments


On the assets side of the balance sheet of the major items are Call Money,

Investments and Advances. Above Common size analysis of the balance sheet of The

VVCC Bank Ltd. state that during the period of last 10 years share of Call Money,

Investments and Advances in total assets of the bank remained on an average 86.34

percent and share of other items in the balance sheet on an average only 13.66 percent of

the total assets during last 10 years. During the period of study highest percentages of Call

Money, Investments and Advances with total assets were found 14.33, 58.26 and 36.92 in

the year 2008-09, 2009-10 and 2004-05 respectively. On the other hand lowest

percentages were found 3.74, 40.98 and 18.81 in the year 2003-04, 2004-05 and 2008-09

respectively.

Chart 5.33 shows trend analysis of the main items of balance sheets of VVCCB ltd.

of last 10 years. Trend percentage line of share capital of the bank shows a continuous

increasing trend of share capital of the bank. In the year 2012-13 share capital of the bank

increased by 415.94 percent as compare to base year 2003-04. Increasing trend of the

share capital point out that solvency position of the bank become strong during the period

of the study. Reserve and surplus also shows continuous increasing trend. As compare to

the base year 2003-04 reserves and surplus of the bank has increased by 44.51 percent in

the year 2012-13. Continuous increase in reserves and surplus makes bank’s solvency

position more strong and powerful.


continuously increased from the year 2006-07 to 2012-13 as compare to base year deposits

of the banks increased by 77.82 percent in the year 2012-13. It shows mixed trend of

increasing and decreasing during the period of the study. During the period of the study

the researcher found that deposits of the bank shows increasing trend. It indicates increase

in faith of depositors in bank during the period of the study. On the other hand advances of

the bank shows mixed trend of increasing and decreasing during the period of the study.

But over all advances of the bank has increased by 47.60 percent in the year 2012-13 as

compare to base year 2003-04. Advances of the banks shows decreasing trend from 2005-

06 to 2008-09 and in remaining period of the study the advances trend of the bank was

found increasing trend. Normally banks uses it deposits for the purpose of providing

advances to its customers. The researcher has calculated Co-relation co-efficient between

deposits and advances 0.51. It indicates that there is positive co-relation between deposits

accepted by bank and advances provided by bank to its customers. The researcher can


conclude here that advances of the bank have depended on deposits of the bank 51 percent

and on other funds 49 percent.

Investments of the bank have shown a continuous increasing trend during the

2003-04 to 2010-11. In the year 2011-12 and 2012-13 it shows decreasing trend. As

compare to the year 2003-04 the investment of the bank has increased by 66.18 percent in

the year 2012-13. Continuous increase in investment shows that bank has increased its

investment in outside securities it might be a reason for decreasing in advances in that

particular period of time.

13. FINANCIAL PERFORMANCE OF ‘‘THE JUNAGADH

COMMERCIAL CO-OPERATIVE BANK LTD.’ (TJCCBL):

13.1 Ratio Analysis of ‘TJCCBL’:


Formula:

Table 5.177

Table showing CDR of TJCCBL of last 10 years

Year Total Advances

(` in Lakhs)

Total Deposit

(` in Lakhs)

CDR

(%)

2003-04 2175.78 5124.12 42.46

2004-05 2813.64 5210.44 54.00

2005-06 2614.22 5023.78 52.04

2006-07 2970.23 5120.14 58.01

2007-08 2176.34 5647.67 38.54

2008-09 3671.55 6018.15 61.01

2009-10 3544.90 7433.33 47.69

2010-11 4051.56 7812.14 51.86

2011-12 4821.38 7006.22 68.82

2012-13 5344.91 8114.68 65.87

Average 54.29 (Source: Computed from Annual Reports of TJCC Bank Ltd. of last 10 Years)

Table no. 5.177 shows credit deposit ratio of TJCC Bank Ltd. Junagadh for 10



54.29. It indicates TJCCBL uses its deposits on an average 54 percentage to give advances

to their customers during the period of study of last 10 years from 2003-04 to 2012-13.


Highest CDR found 68.82 percent in the year 2011-12 and lowest percentage found 38.54

percent in the year 2007-08.


(CRAR):

Formula:

Table 5.178

Table showing CAR of TJCCBL of last 10 years


(` in Lakhs)

Tier II Capital

(` in Lakhs)

Total TI+TII

(` in Lakhs)

RWA

(` in Lakhs)

CAR

(%)

2003-04 363.32 45.10 408.42 1937.50 21.08

2004-05 441.38 49.50 490.88 2393.39 20.51

2005-06 539.83 52.81 592.64 2563.30 23.12

2006-07 541.75 58.70 600.45 2260.72 26.56

2007-08 532.20 57.78 589.98 3034.86 19.44

2008-09 804.90 65.76 870.66 3948.58 22.05

2009-10 732.55 67.11 799.66 3277.30 24.40

2010-11 754.81 69.45 824.26 3238.74 25.45

2011-12 542.77 75.20 617.97 2792.47 22.13

2012-13 665.71 81.43 747.14 2980.21 25.07

Average 22.98

(Source: Computed from Annual Reports of TJCC Bank Ltd. of last 10 Years)

Table 5.178 shows Capital adequacy ratio of TJCC bank ltd. for 10 years from

2003-04 to 2012-13.Minimum CAR required for any Urban Co-operative Bank is 9

percent after 2005 according to RBI and Basel committee report. In above table the




the period of study. From the above table the researcher can clearly observed that CAR of

the bank neither continuously increase nor decrease. The highest CAR of the bank found

26.56 percent and the lowest CAR found 19.44 percent in the year 2006-07 and 2007-08

respectively.


Formula:


Table 5.179

Table showing IITIR of TJCCBL of last 10 years

Year Total Interest

(` in Lakhs)

Total Income

(` in Lakhs)

IITIR

(%)

2003-04 486.23 538.36 90.32

2004-05 553.67 609.25 90.88

2005-06 545.65 612.53 89.08

2006-07 570.34 639.12 89.24

2007-08 580.88 669.03 86.82

2008-09 670.21 848.70 78.97

2009-10 720.55 863.14 83.48

2010-11 831.36 895.70 92.82

2011-12 892.39 1061.22 84.09

2012-13 989.98 1071.16 92.42

Average 87.08

(Source: Calculated from Annual Reports of TJCC Bank Ltd. of last 10 Years)

Above table shows that out of the total income of TJCCL on an average 87.8

percent income was interest and discount income during last ten years from 2003-04 to

2012-13. During the period of the study highest interest income to total income ratio was

found 92.82 percent in the year 2010-11 and lowest ratio was 78.97 percent in the year

2009-10. The researcher can conclude on the basis of above table that average interest and

discount income of the bank was 88 percent of the total income of the bank and other

income were 12 percent of the total income of the bank.


Formula:

Table 5.180

Table showing IETER of TJCCBL of last 10 years


(` in Lakhs)

Total Expenses

(` in Lakhs)

IETER

(%)

2003-04 326.70 488.90 66.82

2004-05 352.35 543.72 64.80

2005-06 341.21 568.99 59.97

2006-07 374.54 608.23 61.58

2007-08 390.78 641.63 60.90

2008-09 424.56 759.27 55.92

2009-10 435.67 798.72 54.55

2010-11 467.92 870.14 53.78

2011-12 447.34 1037.88 43.10

2012-13 539.44 945.73 57.04

Average 57.85







total expenses was interest expenses on deposits and borrowings i.e. ratio of other



Formula:

Table 5.181

Table showing NPNAR of TJCCBL of last 10 years

Year Net Profit

(` in Lakhs)

Net Assets

(` in Lakhs)

NPNAR

(%)

2003-04 49.46 632.78 7.82

2004-05 65.53 730.62 8.97

2005-06 43.54 1025.08 4.25

2006-07 30.89 904.57 3.41

2007-08 27.40 847.28 3.23

2008-09 89.43 1150.61 7.77

2009-10 64.42 1132.24 5.69

2010-11 25.56 1236.59 2.07

2011-12 23.34 1221.56 1.91

2012-13 125.43 1390.01 9.02


During last 10 years the period of the study maximum NPNAR was found 9.02

percent in the year 2012-13 and minimum NPNAR was 1.91 percent in the year 2011-12.

On an average during the last 10 years banks has 5.41 percent NPNAR. From the above

table 5.181 it is clear that the NPNAR of the bank remained in fluctuating position during

last ten years the period of the study.


Formula:


Table 5.182

Table showing EPS of TJCCBL of last 10 years

Year Net Profit

(` in Lakhs)

No. of Equity

Share (in Lakhs)

EPS

(`)

2003-04 49.46 1.10 44.88

2004-05 65.53 1.30 50.25

2005-06 43.54 1.35 32.14

2006-07 30.89 1.50 20.55

2007-08 27.40 1.78 15.40

2008-09 89.43 1.81 49.44

2009-10 64.42 1.87 34.49

2010-11 25.56 2.03 12.56

2011-12 23.34 2.14 10.88

2012-13 125.43 2.19 57.33

Average 32.79


Earning per share of TJCCBL found `32.79 per share on an average during last

10 years. During the period of the study maximum EPS earned by the bank in the year

2012-13 `57.33 per share and minimum EPS earned by the bank `10.88 in the year 2011-

12. Bank has earned average `32.79 per share annually against the share of `100 each i.e.

32.79 percent.


Formula:


Table 5.183

Table showing IIAWFR of TJCCBL of last 10 years

Year Total Interest

(` in Lakhs)

AWF

(` in Lakhs)

IIAWFR

(%)

2003-04 486.23 5985.48 8.12

2004-05 553.67 6190.35 8.94

2005-06 545.65 6308.01 8.65

2006-07 570.34 6244.94 9.13

2007-08 580.88 6460.65 8.99

2008-09 670.21 7049.24 9.51

2009-10 720.55 8001.84 9.00

2010-11 831.36 8840.38 9.40

2011-12 892.39 8799.49 10.14

2012-13 989.98 9167.73 10.80

Average 9.27




income to average working fund ratio was found 10.80 percent in the year 2012-13 and

lowest ratio is 8.12 percent in the years 2003-04. Average IIAWFR of the bank of last ten

years is 9.27 percent from 2003-04 to 2012-13 the period of the study.


Formula:

Table 5.184

Table showing IEAWFR of TJCCL of last 10 years


(` in Lakhs)

AWF

(` in Lakhs)

IEAWFR

(%)

2003-04 326.70 5985.48 5.46

2004-05 352.35 6190.35 5.69

2005-06 341.21 6308.01 5.41

2006-07 374.54 6244.94 6.00

2007-08 390.78 6460.65 6.05

2008-09 424.56 7049.24 6.02

2009-10 435.67 8001.84 5.44

2010-11 467.92 8840.38 5.29

2011-12 447.34 8799.49 5.08

2012-13 539.44 9167.73 5.88


Above table shows that during last 10 year the highest interest expenses to average




against it average interest expense ratio 5.63 percent of last ten years i.e. the bank has

average earning gap of interest income 3.64 percent of average working fund.


Formula:


Table 5.185

Table showing GPAWFR of TJCCBL of last 10 years

Year Gross Profit

(` in Lakhs)

AWF

(` in Lakhs)

GPAWFR

(%)

2003-04 59.33 5985.48 0.99

2004-05 75.65 6190.35 1.22

2005-06 74.33 6308.01 1.18

2006-07 81.34 6244.94 1.30

2007-08 87.64 6460.65 1.36

2008-09 171.33 7049.24 2.43

2009-10 162.85 8001.84 2.04

2010-11 134.42 8840.38 1.52

2011-12 301.43 8799.49 3.43

2012-13 218.24 9167.73 2.38






Formula:

Table 5.186

Table showing NPAWFR of TJCCBL of last 10 years

Year Net Profit

(` in Lakhs)

AWF

(` in Lakhs)

NPAWFR

(%)

2003-04 49.46 5985.48 0.83

2004-05 65.53 6190.35 1.06

2005-06 43.54 6308.01 0.69

2006-07 30.89 6244.94 0.49

2007-08 27.40 6460.65 0.42

2008-09 89.43 7049.24 1.27

2009-10 64.42 8001.84 0.81

2010-11 25.56 8840.38 0.29

2011-12 23.34 8799.49 0.27

2012-13 125.43 9167.73 1.37



Above table shows that the highest NPAWFR of the bank was 1.37 percent in the




an average.


Formula:

Table 5.187

Table showing ECAWFR of TJCCBL of last 10 years

Year Employee exp.

(` in Lakhs)

AWF

(` in Lakhs)

ECAWFR

(%)

2003-04 65.22 5985.48 1.09

2004-05 69.26 6190.35 1.12

2005-06 76.03 6308.01 1.21

2006-07 79.00 6244.94 1.27

2007-08 80.60 6460.65 1.25

2008-09 110.97 7049.24 1.57

2009-10 154.67 8001.84 1.93

2010-11 190.02 8840.38 2.15

2011-12 203.29 8799.49 2.31

2012-13 214.43 9167.73 2.34


From the above table, showing ratios of employee’s cost to average working fund





Formula:


Table 5.188

Table showing CoDR of TJCCBL of last 10 years


(` in Lakhs)

Average Deposits

(` in Lakhs)

CoDR

(%)

2003-04 326.70 5062.06 6.45

2004-05 352.35 5167.28 6.82

2005-06 341.21 5117.11 6.67

2006-07 374.54 5071.96 7.38

2007-08 390.78 5383.91 7.26

2008-09 424.56 5832.91 7.28

2009-10 435.67 6725.74 6.48

2010-11 467.92 7622.74 6.14

2011-12 447.34 7409.18 6.04

2012-13 539.44 7560.45 7.14

Average 6.77 (Source: Calculated from Annual Reports of TJCC Bank Ltd. of last 10 Years)




of deposits last 10 years of the bank remained 6.77 percent.

(XIII) Summary of the above Ratios of ‘TJCC Bank Ltd.’:

Table 5.189

A summary of all the ratios of TJCC Bank Ltd. Calculated above Y

ears

CD

R (%

)

CA

R (%

)

IITIR

(%)

IET

ER

(%)

NP

NA

R (%

)

EP

S (`

)

IIAW

FR

(%)

IEA

WF

R (%

)

GP

AW

FR

(%)

NP

AW

FR

(%)

EC

AW

FR

(%)

CO

DR

(%)

03-04 42.46 21.08 90.32 66.82 7.82 44.88 8.12 5.46 0.99 0.83 1.09 6.45

04-05 54.00 20.51 90.88 64.80 8.97 50.25 8.94 5.69 1.22 1.06 1.12 6.82

05-06 52.04 23.12 89.08 59.97 4.25 32.14 8.65 5.41 1.18 0.69 1.21 6.67

06-07 58.01 26.56 89.24 61.58 3.41 20.55 9.13 6.00 1.30 0.49 1.27 7.38

07-08 38.54 19.44 86.82 60.90 3.23 15.40 8.99 6.05 1.36 0.42 1.25 7.26

08-09 61.01 22.05 78.97 55.92 7.77 49.44 9.51 6.02 2.43 1.27 1.57 7.28

09-10 47.69 24.40 83.48 54.55 5.69 34.49 9.00 5.44 2.04 0.81 1.93 6.48

10-11 51.86 25.45 92.82 53.78 2.07 12.56 9.40 5.29 1.52 0.29 2.15 6.14

11-12 68.82 22.13 84.09 43.10 1.91 10.88 10.14 5.08 3.43 0.27 2.31 6.04

12-13 65.87 25.07 92.42 57.04 9.02 57.33 10.80 5.88 2.38 1.37 2.34 7.14

Avg. 54.03 22.98 87.81 57.85 5.41 32.79 9.27 5.63 1.79 0.75 1.62 6.77


13.2 NPA Management of ‘TJCC Bank Ltd.’:

Table 5.190

Table showing NPA Management of TJCC Bank Ltd. of last 10 years

Yea

rs

Tota

l

Ad

van

ces

(` i

n L

ak

hs)

Gro

ss N

PA

(` i

n L

ak

hs)

Gro

ss N

PA

(%)

Total Provision

(` in Lakhs)

NE

T N

PA

(ìn

La

kh

s)

NE

T N

PA

(%)

1 2 1/2x100

03-04 2175.78 452.21 20.78 235.63 216.58 11.16

04-05 2813.64 431.12 15.32 243.54 187.58 7.30

05-06 2614.22 310.34 11.87 256.78 53.56 2.27

06-07 2970.23 396.65 13.35 262.32 134.33 4.96

07-08 2176.34 284.42 13.07 245.56 38.86 2.01

08-09 3671.55 268.82 7.32 259.15 9.67 0.28

09-10 3544.90 489.16 13.80 295.77 193.39 5.95

10-11 4051.56 207.45 5.12 290.80 -83.35 -2.22

11-12 4821.38 228.96 4.75 390.85 -161.89 -3.65

12-13 5344.91 206.80 3.87 392.96 -186.16 -3.76



20

.78

15

.32

11

.87

13

.35

13

.07

7.3

2

13

.80

5.1

2

4.7

5

3.8

7

11

.16

7.3

0

2.2

7

4.9

6

2.0

1

0.2

8

5.9

5

-2.2

2

-3.6

5

-3.7

6

-5.00

0.00

5.00

10.00

15.00

20.00

25.00

Gro

ss a

nd

Net

NP

A (

%)

Years

Chart 5.34 Gross and Net NPA of TJCC Bank Ltd.

Gross NPA

Net NPA



management of The Junagadh Commercial Co-operative Bank Ltd. for the period of the

study from the year 2003-04 to 2012-13. It shows Gross NPA and Net NPA of the bank in

amount and in percentage. It also shown provision maintained by the bank against non

performing assets of the bank during the period of the study.


pay dividend and Gross NPA should be less than 10 percent to avoid supervisory action

from RBI. From the above table 5.190 and chart 5.34 the researcher found that Gross NPA

of TJCC Bank was remained more than 10 percent in the years 2003-04 to 2007-08 and

2009-10. In remaining years of the period of the study it was found less than 5 percent. It

was a achievement for the bank that bank has successfully reduced its Gross NPA to 3.87

percent in the year 2012-13 which was highest 20.78 percent in the year 2003-04.

Net NPA of the bank should be less than 5 percent as per RBI rules. During the

period of the study from 2003-04 to 2012-13 the researcher found that the Net NPA of the

bank was remained less than 5 percent in 7 years out of 10 years the period of the study.

Not only this but also Net NPA of the bank remained less than zero in last 3 years of the

period of the study i.e. years 2010-11 to 2012-13. NPA management of the bank was

found good Bank always maintained reserve more than its Gross NPA therefore Net NPA

of the bank remained Zero. Average Gross NPA ratio was found 10.92 percent and Net

NPA was found 2.43 percent.





recommended by RBI time to time. Therefore Net NPA of the bank found zero in last 3

years. But Gross NPA of the bank found more than 10 percent in 7 years out 10 years the

period of the study create a question mark against a good NPA management of the bank

but the good thing is bank got success to reduced its Gross NPA in last 3 years and it will

be continue in future. Bank has Gross NPA `452.21 lakhs in the years 2003-04 that

reduced to ` 206.8 lakhs in the year 2012-13.


13.3 Common Size Statement and Trend Analysis of ‘TJCC Bank Ltd.’:

(I) Common Size Income Statement of ‘TJCC Bank Ltd.’:

Table: 5.191

ìn Lakhs


Incomes:





Other Receipts 46.80 50.60 60.75 60.90 79.40 170.95 132.15 51.45 155.38 67.87


Total (A) 538.36 609.25 612.53 639.12 669.03 848.70 863.14 895.70 1061.22 1071.16


Expenditures:









Legal fees 0.31 0.11 1.04 1.50 0.98 1.47 1.48 2.12 2.90 3.00











Provisions 9.87 10.12 30.79 50.45 60.24 81.90 98.43 108.86 278.09 92.81


Other expenses 51.41 73.21 70.90 50.60 55.88 84.72 46.28 43.53 40.88 36.06


Total Expenses (B) 488.90 543.72 568.99 608.23 641.63 759.27 798.72 870.14 1037.88 945.73


Net Profit (A-B) 49.46 65.53 43.54 30.89 27.40 89.43 64.42 25.56 23.34 125.43






(Source: Calculated from the published annual reports of TJCC Bank Ltd. of last 10 years)




and loss account) of The Junagadh Commercial Co-operative Bank Ltd. for 10 years


Total Operating Expenses and Net Profit of TJCC Bank ltd. for the same period stated


no.5.191.

From the above Common Size Analysis of TJCC Bank Ltd. of profit and loss



was found 87.81 percent of the total operating income. Highest percentage of interest and


percent in the year 2010-11 and lowest percentage found 78.97 in the year 2008-09.

Share of other income in total operating income was found during the period of study on

an average 12.19 percent.

On the other hand average percentage of total operating expenses (including

various provisions) on total operating income was found 92.93 percent during the period

of study therefore average net profit during the period of study was found 7.07 percent of

the total operating income. Major expenses of the bank were found interest on deposits

and borrowing and employee’s related expenses like salary, provident fund etc. Average



0.00

50.00

100.00

150.00

200.00

250.00

300.00

Per

cen

tag

e

Years

Chart 5.35 Trend analysis of P/L accounts of TJCC

Bank Ltd.


Operating Income


Operating Expenses



of above figures the researcher can conclude that out of the total operating expenditure of

the bank interest expenses and employees related expenses was average 68.82 percent of

the total operating income while other expenses (including provisions) was 31.18 percent

of the total operating income of the bank.


net profit during the period of study was found 7.07 percent of total operating income of

the bank. The highest net profit to total operating income percentage was found during

last 10 years was 11.71 percent in the year 2012-13 and lowest percentage was found

2.20 in the year 2011-12.


















153.61 percent as compare to base year 2003-04. It was the highest increase in profit

during ten years the period of the study. Lowest downfall in profit was found in the year

2011-12 in this year profit of the bank decreased by 42.82 percent as compare to base

year 2003-04.


(II) Common size Balance sheets of TJCC Bank Ltd.:

Table 5.192

ìn Lakhs

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Liabilities:





Deposits 5124.12 5210.44 5023.78 5120.14 5647.67 6018.15 7433.33 7812.14 7006.22 8114.68


Borrowings 0.00 0.00 0.00 0.00 0.00 750.86 0.05 0.00 0.00 0.00






Total 6040.42 6340.29 6275.73 6214.14 6707.15 7391.32 8612.35 9068.41 8530.57 9804.90


Assets:



Call Money 270.82 379.88 415.41 435.34 945.39 1210.54 1049.98 1259.14 1257.75 1444.51



Investment 1242.13 1281.73 1467.38 1459.45 1574.90 1955.48 2344.81 2286.00 1976.29 2317.97


Advances 2175.78 2813.64 2614.22 2970.23 2176.34 3671.55 3544.90 4051.56 4821.38 5344.91




Other Assets 2094.63 1537.26 1509.94 1080.98 1712.52 276.33 1394.46 1165.51 189.09 198.43


Total 6040.42 6340.29 6275.73 6214.14 6707.15 7391.32 8612.35 9068.41 8530.57 9804.90


Trend Percentage:

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13






(Source: Calculated from the published annual reports of TJCC Bank ltd. of last 10 years)



Above table 5.192 shows Common Size Balance sheet of The Junagadh

Commercial Co-operative Bank Ltd. of last 10 years from 2003-04 to 2012-13. It also

shows the trend percentage analysis of major items of the balance sheet viz. Capital,

Reserve, Deposits Advances, and Investments. Chart 5.36 shows graphical presentation

of the trend percentage analysis shown in the table no. 5.192






06 i.e. during the period of the study the percentage of deposits of the bank with total

assets was found more than 80 percent. During the period of study highest and lowest

percentage of reserves and surplus with total assets was found 11.53 and 7.20 in the year

2011-12 and 2009-10. Average Percentage of 10 years in case of Reserves of the bank

remained 8.90 percent and in case of deposits it remained 83.24 percent. Overall average

92.14 percent of the total assets of the bank financed by these two components i.e. share

of the other items in the balance sheet was 7.86 percent average during last 10 years from

2003-04 to 2012-13. During the last 10 years borrowings of the bank remained average

zero percent of the total assets of the bank. From the above balance sheet the researcher

clearly seen that bank has not used borrowings. Therefore the major liabilities in the

0.00

50.00

100.00

150.00

200.00

250.00

300.00

Per

cen

tag

e

Years

Chart 5.36 Trend Analysis of Balance sheet of TJCC

Bank Ltd.

Trend Percentage of

Capital

Trend Percentage of

Reserve and Surplus

Trend Percentage of

Deposits

Trend Percentage of

Advances

Trend Percentage of

Investments


bank were found deposits only. Average Percentage of share capital in total of the

balance sheet of 10 years remained 2.27 percent only.

On the assets side of the balance sheet of the major items are Call Money,

Investments and Advances. Above Common size analysis of the balance sheet of TJCC

Bank Ltd. state that during the period of last 10 years share of Call Money, Investments

and Advances in total assets of the bank remained on an average 80 percent and share of

other items in the balance sheet on an average only 20 percent of the total assets during

last 10 years. During the period of study highest percentages of Call Money,

Investments and Advances with total assets were found 16.38, 27.23 and 56.52 in the

year 2008-09, 2009-10 and 2011-12 respectively. On the other hand lowest percentages

were found 4.48, 20.22 and 36.02 in the year 2003-04, 2004-05 and 2003-04

respectively.

Chart 5.36 shows trend analysis of the main items of balance sheets of TJCCB

ltd. of last 10 years. Trend percentage line of share capital of the bank shows a


of the bank increased by 98.51 percent as compare to base year 2003-04. Increasing trend

of the share capital point out that solvency position of the bank become strong during the

period of the study. Reserve and surplus also shows continuous increasing trend except

in the year 2006-07 and 2007-08. As compare to the base year 2003-04 reserves and

surplus of the bank has increased by 121.05 percent in the year 2012-13. Continuous

increase in reserves and surplus makes bank’s solvency position more strong and helthy.


continuously increased during the year 2003-04 to 2012-13 except 2005-06 and 2011-12.

As compare to base year deposits of the banks increased by 58.36 percent in the year

2012-13. It shows mixed trend of increasing and decreasing during the period of the

study. On the other hand advances of the bank also shows mixed trend of increasing and

decreasing during the period of the study. But over all advances of the bank has

increased by 145.65 percent in the year 2012-13 as compare to base year 2003-04.

Advances of the banks shows decreasing trend in the year 2005-06 and 2007-08 and in

remaining period of the study the advances trend of the bank was found increasing trend.

Normally banks uses it deposits for the purpose of providing advances to its customers.

The researcher has calculated Co-relation co-efficient between deposits and advances


0.84. It indicates that there is strong positive co-relation between deposits accepted by

bank and advances provided by bank to its customers. The researcher can conclude here

that advances of the bank have depended on deposits of the bank 84 percent and on other

funds 16 percent.


2003-04 to 2010-11. In the year 2011-12 it shows declining trend but then after in the

year 2012-13 it shows increasing trend. As compare to the year 2003-04 the investment

of the bank has increased by 86.76 percent in the year 2012-13. Continuous increase in

investment shows that bank has increased its investment in outside securities it might be

a reason for decreasing in advances in that particular period of time.

14. FINANCIAL PERFORMANCE OF ‘‘THE PORBANDAR

COMMERCIAL CO-OPERATIVE BANK LTD.’ (TPCCBL):

14.1 Ratio Analysis of ‘TPCCBL’:


Formula:

Table 5.193

Table showing CDR of TPCCBL of last 10 years

Year Total Advances

(` in Lakhs)

Total Deposit

(` in Lakhs)

CDR

(%)

2003-04 3076.90 8231.33 37.38

2004-05 3281.46 8461.18 38.78

2005-06 3725.23 7933.06 46.96

2006-07 4076.26 7822.28 52.11

2007-08 4932.35 8249.11 59.79

2008-09 5202.54 9448.09 55.06

2009-10 5989.52 11513.34 52.02

2010-11 7081.27 12376.13 57.22

2011-12 8101.85 12947.89 62.57

2012-13 9103.92 14649.47 62.15

Average 52.41 (Source: Computed from Annual Reports of TPCC Bank Ltd. of last 10 Years)

Table no. 5.193 shows credit deposit ratio of TPCC Bank Ltd. for 10 years from

2003-04 to 2012-13. From above the table it is clear that bank’s credit deposit ratio


remained between 37 to 63 percent during the period of the study. Average percentage

of last 10 years CDR was 52.41. It indicates TPCCBL uses its deposits on an average 52

percentage to give advances to their customers during the period of study of last 10 years

from 2003-04 to 2012-13. Highest CDR found 62.57 percent in the year 2011-12 and

lowest percentage found 37.38 percent in the year 2003-04.


(CRAR):

Formula:

Table 5.194

Table showing CAR of TPCCBL of last 10 years


(` in Lakhs)

Tier II Capital

(` in Lakhs)

Total TI+TII

(` in Lakhs)

RWA

(` in Lakhs)

CAR

(%)

2003-04 536.90 55.10 592.00 4983.16 11.88

2004-05 556.42 57.78 614.20 4981.35 12.33

2005-06 575.31 58.70 634.01 4637.97 13.67

2006-07 585.73 60.64 646.37 4690.64 13.78

2007-08 637.70 64.45 702.15 5590.37 12.56

2008-09 700.99 65.78 766.77 6827.87 11.23

2009-10 798.13 66.11 864.24 6936.12 12.46

2010-11 856.56 68.34 924.90 7452.86 12.41

2011-12 1005.40 70.20 1075.60 8653.26 12.43

2012-13 1133.25 75.43 1208.68 9638.60 12.54

Average 12.53

(Source: Computed from Annual Reports of TPCC Bank Ltd. of last 10 Years)

Table 5.194 shows Capital adequacy ratio of TPCC Bank ltd. for 10 years from






the period of study. From the above table the researcher can clearly observed that CAR

of the bank neither continuously increase nor decrease. The highest CAR of the bank

found 12.56 percent and the lowest CAR found 11.23 percent in the year 2007-08 and

2008-09 respectively.



Formula:

Table 5.195

Table showing IITIR of TPCCBL of last 10 years

Year Total Interest

(` in Lakhs)

Total Income

(` in Lakhs)

IITIR

(%)

2003-04 447.50 458.14 97.68

2004-05 600.22 617.35 97.23

2005-06 531.53 544.22 97.67

2006-07 584.09 602.31 96.97

2007-08 749.97 773.37 96.97

2008-09 638.34 650.33 98.16

2009-10 1265.54 1295.75 97.67

2010-11 1195.54 1227.26 97.42

2011-12 1441.24 1472.14 97.90

2012-13 1636.78 1667.51 98.16

Average 97.58 (Source: Calculated from Annual Reports of TPCC Bank Ltd. of last 10 Years)

Above table shows that out of the total income of TPCCL on an average 97.58

percent income was interest and discount income during last ten years from 2003-04 to

2012-13. During the period of the study highest interest income to total income ratio was

found 98.16 percent in the year 2008-09 and 2012-13 and lowest ratio was 96.97 percent

in the year 2006-07 and 2007-08. The researcher can conclude on the basis of above

table that average interest and discount income of the bank was 98 percent of the total

income of the bank and other income were 2 percent only of the total income of the bank.


Formula:


Table 5.196

Table showing IETER of TPCCBL of last 10 years


(` in Lakhs)

Total Expenses

(` in Lakhs)

IETER

(%)

2003-04 312.90 429.69 72.82

2004-05 393.46 585.87 67.16

2005-06 371.66 510.66 72.78

2006-07 412.80 574.38 71.87

2007-08 530.04 739.52 71.67

2008-09 363.19 598.73 60.66

2009-10 884.90 1215.30 72.81

2010-11 728.63 1168.98 62.33

2011-12 830.60 1356.71 61.22

2012-13 931.26 1535.67 60.64

Average 67.40









Formula:

Table 5.197

Table showing NPNAR of TPCCBL of last 10 years

Year Net Profit

(` in Lakhs)

Net Assets

(` in Lakhs)

NPNAR

(%)

2003-04 28.45 1411.61 2.02

2004-05 31.47 1455.17 2.16

2005-06 33.55 1490.65 2.25

2006-07 27.93 1524.05 1.83

2007-08 33.85 1518.20 2.23

2008-09 51.60 1629.43 3.17

2009-10 80.45 1557.05 5.17

2010-11 58.28 1876.68 3.11

2011-12 115.43 2035.33 5.67

2012-13 131.84 2187.97 6.03

Average 3.36



During last 10 years the period of the study highest NPNAR was found 6.03

percent in the year 2012-13 and lowest NPNAR was 1.83 percent in the year 2006-07.

On an average during the last 10 years banks has 3.36 percent NPNAR. From the above

table 5.197 it is clear that the NPNAR of the bank remained in fluctuating position

during last ten years the period of the study.


Formula:

Table 5.198

Table showing EPS of TPCCBL of last 10 years

Year Net Profit

(` in Lakhs)

No. of Equity

Share (in Lakhs)

EPS

(`)

2003-04 28.45 1.46 19.51

2004-05 31.47 1.55 20.33

2005-06 33.55 1.67 20.13

2006-07 27.93 1.76 15.90

2007-08 33.85 2.13 15.91

2008-09 51.60 2.50 20.62

2009-10 80.45 2.94 27.41

2010-11 58.28 3.54 16.46

2011-12 115.43 4.11 28.11

2012-13 131.84 4.75 27.76


Average Earning per share (EPS) of TPCCBL found `21.21 per share during

last 10 years. During the period of the study highest EPS earned by the bank in the year

2011-12 `28.11 per share and minimum EPS earned by the bank `15.90 in the year

2006-07. Bank has earned average `21.21 per share annually against the share of `100

each i.e. 21 percent.


Formula:



Table 5.199

Table showing IIAWFR of TPCCBL of last 10 years

Year Total Interest

(` in Lakhs)

AWF

(` in Lakhs)

IIAWFR

(%)

2003-04 447.50 10375.66 4.31

2004-05 600.22 10731.80 5.59

2005-06 531.53 10598.04 5.02

2006-07 584.09 9991.92 5.85

2007-08 749.97 9822.22 7.64

2008-09 638.34 10772.90 5.93

2009-10 1265.54 12805.37 9.88

2010-11 1195.54 14626.93 8.17

2011-12 1441.24 15818.46 9.11

2012-13 1636.78 17287.26 9.47

Average 7.10




lowest ratio is 4.31 percent in the years 2003-04. Average IIAWFR of the bank of last

ten years was 7.10 percent from 2003-04 to 2012-13 the period of the study.


Formula:

Table 5.200

Table showing IEAWFR of TPCCBL of last 10 years


(` in Lakhs)

AWF

(` in Lakhs)

IEAWFR

(%)

2003-04 312.90 10375.66 3.02

2004-05 393.46 10731.80 3.67

2005-06 371.66 10598.04 3.51

2006-07 412.80 9991.92 4.13

2007-08 530.04 9822.22 5.40

2008-09 363.19 10772.90 3.37

2009-10 884.90 12805.37 6.91

2010-11 728.63 14626.93 4.98

2011-12 830.60 15818.46 5.25

2012-13 931.26 17287.26 5.39

Average 4.56




average working fund ratio was found 6.91 percent and lowest ratio was 3.02 percent in

the year 2009-10 and 2003-04 respectively. On an average bank has 4.56 percent ratio of





Formula:

Table 5.201

Table showing GPAWFR of TPCCBL of last 10 years

Year Gross Profit

(` in Lakhs)

AWF

(` in Lakhs)

GPAWFR

(%)

2003-04 42.17 10375.66 0.41

2004-05 53.07 10731.80 0.49

2005-06 49.90 10598.04 0.47

2006-07 44.25 9991.92 0.44

2007-08 54.80 9822.22 0.56

2008-09 106.02 10772.90 0.98

2009-10 119.37 12805.37 0.93

2010-11 98.28 14626.93 0.67

2011-12 212.43 15818.46 1.34

2012-13 271.84 17287.26 1.57






Formula:


Table 5.202

Table showing NPAWFR of TPCCBL of last 10 years

Year Net Profit

(` in Lakhs)

AWF

(` in Lakhs)

NPAWFR

(%)

2003-04 28.45 10375.66 0.27

2004-05 31.47 10731.80 0.29

2005-06 33.55 10598.04 0.32

2006-07 27.93 9991.92 0.28

2007-08 33.85 9822.22 0.34

2008-09 51.60 10772.90 0.48

2009-10 80.45 12805.37 0.63

2010-11 58.28 14626.93 0.40

2011-12 115.43 15818.46 0.73

2012-13 131.84 17287.26 0.76






on an average.


Formula:

Table 5.203

Table showing ECAWFR of TPCCBL of last 10 years

Year Employee exp.

(` in Lakhs)

AWF

(` in Lakhs)

ECAWFR

(%)

2003-04 63.23 10375.66 0.61

2004-05 71.80 10731.80 0.67

2005-06 75.11 10598.04 0.71

2006-07 80.23 9991.92 0.80

2007-08 103.02 9822.22 1.05

2008-09 106.49 10772.90 0.99

2009-10 178.83 12805.37 1.40

2010-11 201.48 14626.93 1.38

2011-12 244.16 15818.46 1.54

2012-13 273.06 17287.26 1.58





working fund was found 1.07 percent per annum. During last 10 years highest ECAWFR

1.58 percent in the year 2012-13 and lowest ratio 0.61 percent in the year 2003-04.


Formula:

Table 5.204

Table showing CoDR of TPCCBL of last 10 years


(` in Lakhs)

Average Deposits

(` in Lakhs)

CoDR

(%)

2003-04 312.90 8115.67 3.86

2004-05 393.46 8346.26 4.71

2005-06 371.66 8197.12 4.53

2006-07 412.80 7877.67 5.24

2007-08 530.04 8035.70 6.60

2008-09 363.19 8848.60 4.10

2009-10 884.90 10480.72 8.44

2010-11 728.63 11944.74 6.10

2011-12 830.60 12662.01 6.56

2012-13 931.26 13798.68 6.75

Average 5.69 (Source: Calculated from Annual Reports of TPCC Bank Ltd. of last 10 Years)




of deposits last of 10 years of the bank remained 5.69 percent.


(XIII) Summary of the above Ratios of ‘TPCC Bank Ltd.’:

Table 5.205

A summary of all the ratios of TPCC Bank Ltd. Calculated above

Yea

rs

CD

R (%

)

CA

R (%

)

IITIR

(%)

IET

ER

(%)

NP

NA

R (%

)

EP

S (`

)

IIAW

FR

(%)

IEA

WF

R (%

)

GP

AW

FR

(%)

NP

AW

FR

(%)

EC

AW

FR

(%)

CO

DR

(%)

03-04 37.38 11.88 97.68 72.82 2.02 19.51 4.31 3.02 0.41 0.27 0.61 3.86

04-05 38.78 12.33 97.23 67.16 2.16 20.33 5.59 3.67 0.49 0.29 0.67 4.71

05-06 46.96 13.67 97.67 72.78 2.25 20.13 5.02 3.51 0.47 0.32 0.71 4.53

06-07 52.11 13.78 96.97 71.87 1.83 15.90 5.85 4.13 0.44 0.28 0.80 5.24

07-08 59.79 12.56 96.97 71.67 2.23 15.91 7.64 5.40 0.56 0.34 1.05 6.60

08-09 55.06 11.23 98.16 60.66 3.17 20.62 5.93 3.37 0.98 0.48 0.99 4.10

09-10 52.02 12.46 97.67 72.81 5.17 27.41 9.88 6.91 0.93 0.63 1.40 8.44

10-11 57.22 12.41 97.42 62.33 3.11 16.46 8.17 4.98 0.67 0.40 1.38 6.10

11-12 62.57 12.43 97.90 61.22 5.67 28.11 9.11 5.25 1.34 0.73 1.54 6.56

12-13 62.15 12.54 98.16 60.64 6.03 27.76 9.47 5.39 1.57 0.76 1.58 6.75

Avg. 52.40 12.53 97.58 67.40 3.36 21.21 7.10 4.56 0.79 0.45 1.07 5.69

14.2 NPA Management of ‘TPCC Bank Ltd.’:

Table 5.206

Table showing NPA Management of TPCC Bank Ltd. of last 10 years

Yea

rs

Tota

l

Ad

van

ces

(` i

n L

ak

hs)

Gro

ss N

PA

(` i

n L

ak

hs)

Gro

ss N

PA

(%)

Total Provision

(` in Lakhs)

NE

T N

PA

(ìn

Lak

hs)

NE

T N

PA

(%)

1 2 1/2x100

03-04 3076.90 472.22 15.35 504.32 -32.10 -1.25

04-05 3281.46 451.26 13.75 542.64 -91.38 -3.34

05-06 3725.23 322.34 8.65 556.78 -234.44 -7.40

06-07 4076.26 377.80 9.27 550.72 -172.92 -4.90

07-08 4932.35 285.42 5.79 556.24 -270.82 -6.19

08-09 5202.54 278.82 5.36 259.15 19.67 0.40

09-10 5989.52 289.18 4.83 295.77 -6.59 -0.12

10-11 7081.27 207.45 2.93 287.16 -79.71 -1.17

11-12 8101.85 307.87 3.80 308.70 -0.83 -0.01

12-13 9103.92 309.53 3.40 361.88 -52.35 -0.60





(NPA) management of The Porbandar Commercial Co-operative Bank Ltd. for the

period of the study from the year 2003-04 to 2012-13. It shows Gross NPA and Net NPA

of the bank in amount and in percentage. It also shown provision maintained by the bank

against non performing assets of the bank during the period of the study.



from RBI. From the above table 5.206 and chart 5.37 the researcher found that Gross

NPA of TPCC Bank Ltd. was found more than 10 percent in the years 2003-04 to 2004-

05 and then after it found less than 10 percent throughout the period of the study. It was a

achievement for the bank that bank has successfully reduced its Gross NPA to 3.40

percent in the year 2012-13 which was highest 15.35 percent in the year 2003-04.



of the bank was remained not only less than 5 percent but less than Zero throughout the

period of the study. NPA management of the bank was found too good Bank always

maintained reserve more than its Gross NPA therefore Net NPA of the bank remained

15

.35

13

.75

8.6

5

9.2

7

5.7

9

5.3

6

4.8

3

2.9

3

3.8

0

3.4

0

-1.2

5

-3.3

4

-7.4

0

-4.9

0

-6.1

9

0.4

0

-0.1

2

-1.1

7 -0.0

1

-0.6

0

-10.00

-5.00

0.00

5.00

10.00

15.00

20.00

Gro

ss a

nd

Net

NP

A (

%)

Years

Chart 5.37 Gross and Net NPA of TPCC Bank Ltd.

Gross NPA

Net NPA


Zero. Average Gross NPA ratio was found 7.31 percent and Net NPA was found (-2.46)

percent that means Zero (0).





recommended by RBI time to time. Therefore Net NPA of the bank found zero

constantly from last ten years.


14.3 Common Size Statement and Trend Analysis of ‘TPCC Bank Ltd.’:

(I) Common Size Income Statement of ‘TPCC Bank Ltd.’:

Table: 5.207

ìn Lakhs


Incomes:





Other Receipts 2.17 4.2228 2.5284 3.78 4.85352 3.2721 6.02 7.82 6.48 8.39


Total (A) 458.14 617.3488 544.215 602.31 773.366 650.329 1295.75 1227.26 1472.14 1667.51


Expenditures:









NPA provisions 3.18 38.32 3.78 4.30 5.52 5.85 9.00 70.96 25.00 15.00











Income Tax Provisions 1.20 1.10 1.47 3.37 4.33 27.12 3.51 0.00 40.00 70.00




Other expenses 16.87 29.03 20.27 31.67 42.68 27.80 47.70 53.76 63.70 71.28


Total Expenses (B) 429.69 585.87 510.66 574.38 739.52 598.73 1215.30 1168.98 1356.71 1535.67


Net Profit (A-B) 28.45 31.47 33.55 27.93 33.85 51.60 80.45 58.28 115.43 131.84 Percentage of Total Income 6.21 5.10 6.17 4.64 4.38 7.93 6.21 4.75 7.84 7.91





(Source: Calculated from the published annual reports of TPCC Bank Ltd. of last 10 years)




and loss account) of The Porbandar Commercial Co-operative Bank Ltd. for 10 years


Total Operating Expenses and Net Profit of TPCC Bank ltd. for the same period stated


no.5.207.

From the above Common Size Analysis of TPCC Bank Ltd. of profit and loss



was found 97.58 percent of the total operating income. Highest percentage of interest and


percent in the year 2012-13 and lowest percentage found 97.23 in the year 2004-05.

Share of other income in total operating income was found during the period of study on

an average 2.42 percent only.

On the other hand average percentage of total operating expenses (including

various provisions) on total operating income was found 93.88 percent during the period

of study therefore average net profit during the period of study was found 6.12 percent of

the total operating income. Major expenses of the bank were found interest on deposits

and employee’s related expenses like salary, provident fund etc. Average interest

expenses during the period of study were 63.32 percent of the total income and average

employee related expenses were 14.54 percent of the total income. With the help of

0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

450.00

500.00

Per

cen

tag

e

Years

Chart 5.38 Trend analysis of P/L accounts of TPCC

Bank Ltd.


Operating Income


Operating Expenses



above figures the researcher can conclude that out of the total operating expenditure of

the bank interest expenses and employees related expenses was average 77.86 percent of

the total operating income while other expenses (including provisions) was 22.14 percent

of the total operating income of the bank.


net profit during the period of study was found 6.12 percent of total operating income of

the bank. The highest net profit to total operating income percentage was found during

last 10 years was 7.93 percent in the year 2008-09 and lowest percentage was found 4.38

in the year 2007-08.



operating expenses shown parallel and fluctuating trend from 2003-04 to 2012-13 the















363.41 percent as compare to base year 2003-04 i.e. as compare to base year profit of the

bank became 4 time. It was the highest increase in profit during ten years the period of

the study. Lowest downfall in profit was found in the year 2006-07 in this year profit of

the bank decreased by 1.83 percent as compare to base year 2003-04 otherwise profit of

the bank shown increasing trend as compare to base year in all the years of the period of

the study.


(II) Common size Balance sheets of TPCC Bank Ltd.:

Table 5.208

ìn Lakhs

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Liabilities:





Deposits 8231.33 8461.18 7933.06 7822.28 8249.11 9448.09 11513.3 12376.1 12947.9 14649.5


Bills for Collection (as per contra) 35.32 53.4 42.2 48.44 63.23 60.66 60.31 37.89 60.39 61.66


Provision for Interest due 31.11 89.28 45.95 44.88 32.44 66.74 167.52 180.33 215.42 220.42








Total 10565.96 11106.76 10320.1 9845.16 9988.26 11780.6 14185.4 15514.5 16616.4 18516


Assets:




Call Money 158.17 100.00 0.00 0.00 0.00 0.00 200.00 0.00 105.02 50.00


Investment 2884.19 3400.97 2055.39 2176.33 1568.71 2363.47 2050.10 3167.28 3386.35 3766.30


Advances 3076.90 3281.46 3725.23 4076.26 4932.35 5202.54 5989.52 7081.27 8101.85 9103.92




Bills Receivables (As per contra) 35.32 53.40 42.20 48.44 63.23 60.66 60.31 37.89 60.39 61.66




Other Assets 118.74 87.12 80.49 77.23 107.30 232.48 66.18 77.76 46.63 52.65


Total 10565.96 11106.76 10320.1 9845.16 9988.26 11780.6 14185.4 15514.5 16616.4 18516


Trend Percentage:

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13






(Source: Calculated from the published annual reports of TPCC Bank ltd. of last 10 years)



Above table 5.208 shows Common Size Balance sheet of The Porbandar

Commercial Co-operative Bank Ltd. of last 10 years from 2003-04 to 2012-13. It also

shows the trend percentage analysis of main items of the balance sheet viz. Capital,

Reserve, Deposits Advances, and Investments. Chart 5.39 shows graphical presentation of

the trend percentage analysis shown in the table no. 5.208.

From the above Common Size Analysis of the balance sheet of The PCCB Ltd. it

is clear that liabilities side of the balance sheet the most important items are deposits and

reserve & surplus. Out of the total funds invested in the bank’s assets major portion

provided by Deposits and Reserves. During this period highest percentage of deposits with

total asset was 82.59 in the year 2007-08 and lowest percentage was found 76.18 in the

year 2004-05 i.e. during the period of the study the percentage of deposits of the bank with

total assets was found more than 75 percent in all the years. During the period of study

highest and lowest percentage of reserves and surplus with total assets was found 113.70

and 9.25 in the year 2006-07 and 2012-13. Average Percentage of 10 years in case of

Reserves of the bank found 11.24 percent and in case of deposits it remained 79.12

percent. Overall average 90.36 percent of the total assets of the bank financed by these

two components i.e. share of the other items in the balance sheet was 9.64 percent average

during last 10 years from 2003-04 to 2012-13. During the last 10 years borrowings of the

bank remained average zero percent of the total assets of the bank. From the above

balance sheet the researcher clearly seen that bank has not used borrowings in its capital

0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00P

erce

nta

ge

Years

Chart 5.39 Trend Analysis of Balance sheet of TPCC

Bank Ltd.

Trend Percentage of

Capital

Trend Percentage of

Reserve and Surplus

Trend Percentage of

Deposits

Trend Percentage of

Advances

Trend Percentage of

Investments


structure. Therefore the major liabilities in the bank were found deposits only. Average

Percentage of share capital in total of the balance sheet of 10 years remained 1.98 percent

only.

On the assets side of the balance sheet of the major items are Cash on hand,

Investments and Advances. Above Common size analysis of the balance sheet of TPCC

Bank Ltd. state that during the period of last 10 years share of Cash on hand, Investments

and Advances in total assets of the bank remained on an average 94 percent and share of

other items in the balance sheet on an average only 4 percent of the total assets during last

10 years. During the period of study highest percentages of cash on hand, Investments and

Advances with total assets were found 40.58, 27.30 and 49.38 in the year 2005-06, 2003-

04 and 2007-08 respectively. On the other hand lowest percentages were found 25.86,

14.45 and 29.12 in the year 2011-12, 2009-10 and 2003-04 respectively.

Chart 5.39 shows trend analysis of the main items of balance sheets of TPCCB ltd.

of last 10 years. Trend percentage line of share capital of the bank shows a continuous

increasing trend of share capital of the bank. In the year 2012-13 share capital of the bank

increased by 125.64 percent as compare to base year 2003-04. Increasing trend of the

share capital point out that solvency position of the bank become strong during the period

of the study. Reserve and surplus also shows continuous increasing trend except in the

year 2007-08 and 2009-10. As compare to the base year 2003-04 reserves and surplus of

the bank has increased by 35.34 percent in the year 2012-13. Continuous increase in

reserves and surplus makes bank’s solvency position more strong and healthy.

Deposit line in above chart no. 5.39 indicates that deposit of the bank continuously

increased during the year 2007-08 to 2012-13. It shows decreasing trend in the year 2004-

05 and 2005-06. As compare to base year deposits of the banks increased by 77.97

percent in the year 2012-13. On the other hand advances of the bank also show continuous

increasing during the period of the study. Overall advances of the bank has increased by

195.88 percent in the year 2012-13 as compare to base year 2003-04. Normally banks uses

it deposits for the purpose of providing advances to its customers. The researcher has

calculated Co-relation co-efficient between deposits and advances 0.9577. It indicates that

there is strong and positive co-relation between deposits accepted by bank and advances

provided by bank to its customers. The researcher can conclude here that advances of the

bank have depended on deposits of the bank 96 percent and on other funds 4 percent.


Investments of the bank have shown a continuous increasing and decreasing

(fluctuating) trend during the 2003-04 to 2012-13. It shows declining trend during 2005-06

to2009-10 but then after till the year 2012-13 it shows increasing trend. As compare to the

year 2003-04 the investment of the bank has increased by 30.58 percent in the year 2012-

13.

15. FINANCIAL PERFORMANCE OF ‘‘THE BARODA

COMMERCIAL CO-OPERATIVE BANK LTD.’ (TBCCBL):

15.1 Ratio Analysis of ‘TBCCBL’:


Formula:

Table 5.209

Table showing CDR of TBCCBL of last 10 years

Year Total Advances

(` in Lakhs)

Total Deposit

(` in Lakhs)

CDR

(%)

2003-04 4165.63 7650.00 54.45

2004-05 4481.37 7808.16 57.39

2005-06 3870.49 7687.16 50.35

2006-07 3864.67 7830.21 49.36

2007-08 4074.50 8317.29 48.99

2008-09 3786.82 10453.49 36.23

2009-10 3671.99 11003.64 33.37

2010-11 4384.73 11566.71 37.91

2011-12 6120.08 12431.60 49.23

2012-13 7000.77 13652.31 51.28

Average 46.86 (Source: Computed from Annual Reports of TBCC Bank Ltd. of last 10 Years)

Table no. 5.209 shows credit deposit ratio of TBCC Bank Ltd. for 10 years from

2003-04 to 2012-13. From above the table it is clear that bank’s credit deposit ratio

remained between 33 to 58 percent during the period of the study. Average percentage of

last 10 years CDR was 46.86. It indicates TBCCBL uses its deposits on an average 47

percentage to give advances to their customers during the period of study of last 10 years

from 2003-04 to 2012-13. Highest CDR found 57.39 percent in the year 2004-05 and

lowest percentage found 33.37 percent in the year 2009-10.



(CRAR):

Formula:

Table 5.210

Table showing CAR of TBCCBL of last 10 years


(` in Lakhs)

Tier II Capital

(` in Lakhs)

Total TI+TII

(` in Lakhs)

RWA

(` in Lakhs)

CAR

(%)

2003-04 606.69 80.20 686.89 4516.01 15.21

2004-05 641.78 89.00 730.78 4383.81 16.67

2005-06 727.06 95.62 822.68 5190.43 15.85

2006-07 774.89 107.40 882.29 4813.37 18.33

2007-08 793.53 105.56 899.09 4407.28 20.40

2008-09 840.55 121.52 962.07 4851.60 19.83

2009-10 906.22 124.22 1030.45 4881.33 21.11

2010-11 968.91 128.90 1097.81 5429.30 20.22

2011-12 1041.72 140.40 1182.12 5320.07 22.22

2012-13 1154.00 152.86 1306.86 5601.63 23.33

Average 19.32

(Source: Computed from Annual Reports of TBCC Bank Ltd. of last 10 Years)

Table 5.210 shows Capital adequacy ratio of TBCC Bank ltd. for 10 years from






the period of study. From the above table the researcher can clearly observed that CAR of

the bank neither continuously increase nor decrease. The highest CAR of the bank found

23.33 percent and the lowest CAR found 15.21 percent in the year 2012-13 and 2003-04

respectively.


Formula:


Table 5.211

Table showing IITIR of TBCCBL of last 10 years

Year Total Interest

(` in Lakhs)

Total Income

(` in Lakhs)

IITIR

(%)

2003-04 775.18 792.72 97.79

2004-05 842.85 863.55 97.60

2005-06 923.01 946.50 97.52

2006-07 908.65 932.35 97.46

2007-08 936.39 969.74 96.56

2008-09 1036.73 1185.95 87.42

2009-10 1049.94 1096.72 95.73

2010-11 1115.73 1136.25 98.19

2011-12 1285.38 1297.25 99.09

2012-13 1445.13 1498.70 96.43

Average 96.38

(Source: Calculated from Annual Reports of TBCC Bank Ltd. of last 10 Years)

Above table 5.211 shows that out of the total income of TBCCL on an average

96.38 percent income was interest and discount income during last ten years from 2003-04

to 2012-13. During the period of the study highest interest income to total income ratio

was found 99.09 percent in the year 2011-12 and lowest ratio was 87.42 percent in the

year 2008-09. The researcher can conclude on the basis of above table that average interest

and discount income of the bank was 96 percent of the total income of the bank and other

income were 4 percent only of the total income of the bank.


Formula:

Table 5.212

Table showing IETER of TBCCBL of last 10 years


(` in Lakhs)

Total Expenses

(` in Lakhs)

IETER

(%)

2003-04 533.55 745.20 71.60

2004-05 552.53 807.73 68.41

2005-06 585.34 882.69 66.31

2006-07 615.20 865.51 71.08

2007-08 645.69 913.99 70.64

2008-09 702.26 1054.73 66.58

2009-10 725.49 995.18 72.90

2010-11 768.18 1042.64 73.68

2011-12 818.60 1194.95 68.50

2012-13 924.03 1384.20 66.76

Average 69.65







total expenses was interest expenses on deposits and borrowings i.e. ratio of other



Formula:

Table 5.213

Table showing NPNAR of TBCCBL of last 10 years

Year Net Profit

(` in Lakhs)

Net Assets

(` in Lakhs)

NPNAR

(%)

2003-04 47.52 1933.07 2.46

2004-05 55.82 2075.73 2.69

2005-06 63.81 2301.77 2.77

2006-07 66.84 2376.99 2.81

2007-08 55.75 2425.81 2.30

2008-09 71.22 2484.40 2.87

2009-10 81.55 2607.75 3.13

2010-11 93.61 2701.43 3.47

2011-12 102.30 2770.76 3.69

2012-13 114.50 2937.17 3.90

Average 3.08


Table no. 5.213 shows Net profit to Net Assets Ratios from the above table the

researcher can observed that during last 10 years the period of the study highest NPNAR

was found 3.90 percent in the year 2012-13 and lowest NPNAR was 2.30 percent in the

year 2007-08. The average NPNAR of the bank of the last 10 years was found 3.08

percent. From the above table it is clear that the NPNAR of the bank remained in



Formula:


Table 5.214

Table showing EPS of TBCCBL of last 10 years

Year Net Profit

(` in Lakhs)

No. of Equity

Share (in Lakhs)

EPS

(`)

2003-04 47.52 0.42 111.93

2004-05 55.82 0.44 127.03

2005-06 63.81 0.92 69.66

2006-07 66.84 1.04 64.26

2007-08 55.75 1.04 53.82

2008-09 71.22 1.01 70.45

2009-10 81.55 1.08 75.24

2010-11 93.61 1.26 74.48

2011-12 102.30 1.61 63.48

2012-13 114.50 2.05 55.85

Average 76.60


Average Earning per share (EPS) of TBCCBL found `76.6 per share of last 10

years. During the period of the study highest EPS earned by the bank in the year 2004-05

`127.03 per share and minimum EPS earned by the bank `53.82 in the year 2007-08.

Bank has earned average `76.6 per share annually against the share of `100 each i.e. 76.6

percent.


Formula:


Table 5.215

Table showing IIAWFR of TBCCBL of last 10 years

Year Total Interest

(` in Lakhs)

AWF

(` in Lakhs)

IIAWFR

(%)

2003-04 775.18 10854.94 7.14

2004-05 842.85 11546.33 7.30

2005-06 923.01 11771.39 7.84

2006-07 908.65 11875.81 7.65

2007-08 936.39 12190.85 7.68

2008-09 976.73 13600.09 7.18

2009-10 1029.94 14920.03 6.90

2010-11 1115.73 15380.22 7.25

2011-12 1285.38 16065.16 8.00

2012-13 1445.13 17091.09 8.46

Average 7.54





lowest ratio was 6.90 percent in the years 2009-10. Average IIAWFR of the bank of last

ten years was 7.54 percent from 2003-04 to 2012-13 the period of the study.


Formula:

Table 5.216

Table showing IEAWFR of TBCCBL of last 10 years


(` in Lakhs)

AWF

(` in Lakhs)

IEAWFR

(%)

2003-04 533.55 10854.94 4.92

2004-05 552.53 11546.33 4.79

2005-06 585.34 11771.39 4.97

2006-07 615.20 11875.81 5.18

2007-08 645.69 12190.85 5.30

2008-09 702.26 13600.09 5.16

2009-10 725.49 14920.03 4.86

2010-11 768.18 15380.22 4.99

2011-12 818.60 16065.16 5.10

2012-13 924.03 17091.09 5.41

Average 5.07


Above table shows that during last 10 year the highest interest expenses to average

working fund ratio was found 5.41 percent and lowest ratio was 4.79 percent in the year



against it average interest expense ratio 5.07 percent of last ten years i.e. the bank has

average earning gap of interest income 2.47 percent of average working fund.


Formula:


Table 5.217

Table showing GPAWFR of TBCCBL of last 10 years

Year Gross Profit

(` in Lakhs)

AWF

(` in Lakhs)

GPAWFR

(%)

2003-04 77.40 10854.94 0.71

2004-05 113.62 11546.33 0.98

2005-06 135.50 11771.39 1.15

2006-07 106.61 11875.81 0.90

2007-08 87.62 12190.85 0.72

2008-09 116.49 13600.09 0.86

2009-10 113.35 14920.03 0.76

2010-11 123.61 15380.22 0.80

2011-12 148.80 16065.16 0.93

2012-13 212.06 17091.09 1.24

Average 0.91 (Source: Computed from Annual Reports of TBCC Bank Ltd. of last 10 Years)

Above table 5.217 shows that the highest GPAWFR of the bank was 1.24 percent

in the year 2012-13 and lowest ratio is 0.71 percent in the year 2003-04. Average

GPAWFR remained 0.91 percent of last 10 years from 2003-04 to 2012-13.


Formula:

Table 5.218

Table showing NPAWFR of TPCCBL of last 10 years

Year Net Profit

(` in Lakhs)

AWF

(` in Lakhs)

NPAWFR

(%)

2003-04 47.52 10854.94 0.44

2004-05 55.82 11546.33 0.48

2005-06 63.81 11771.39 0.54

2006-07 66.84 11875.81 0.56

2007-08 55.75 12190.85 0.46

2008-09 71.22 13600.09 0.52

2009-10 81.55 14920.03 0.55

2010-11 93.61 15380.22 0.61

2011-12 102.30 16065.16 0.64

2012-13 114.50 17091.09 0.67

Average 0.55



Above table shows that the highest NPAWFR of the bank was 0.67 percent in the




an average.


Formula:

Table 5.219

Table showing ECAWFR of TBCCBL of last 10 years

Year Employee exp.

(` in Lakhs)

AWF

(` in Lakhs)

ECAWFR

(%)

2003-04 76.83 10854.94 0.71

2004-05 82.89 11546.33 0.72

2005-06 93.05 11771.39 0.79

2006-07 97.50 11875.81 0.82

2007-08 99.90 12190.85 0.82

2008-09 145.46 13600.09 1.07

2009-10 140.66 14920.03 0.94

2010-11 144.03 15380.22 0.94

2011-12 166.85 16065.16 1.04

2012-13 171.39 17091.09 1.00

Average 0.89




working fund was found 0.89 percent per annum. During last 10 years highest ECAWFR

found 1.07 percent in the year 2008-09 and lowest ratio 0.71 percent in the year 2003-04.


Formula:


Table 5.220

Table showing CoDR of TBCCBL of last 10 years


(` in Lakhs)

Average Deposits

(` in Lakhs)

CoDR

(%)

2003-04 533.55 7100.35 7.51

2004-05 552.53 7729.08 7.15

2005-06 585.34 7747.66 7.56

2006-07 615.20 7758.68 7.93

2007-08 645.69 8073.75 8.00

2008-09 702.26 9385.39 7.48

2009-10 725.49 10728.57 6.76

2010-11 768.18 11285.18 6.81

2011-12 818.60 11999.15 6.82

2012-13 924.03 13041.95 7.09

Average 7.31 (Source: Calculated from Annual Reports of TBCC Bank Ltd. of last 10 Years)




of deposits last of 10 years of the bank was remained 7.31 percent.

(XIII) Summary of the above Ratios of ‘TBCC Bank Ltd.’:

Table 5.221

A summary of all the ratios of TBCC Bank Ltd. Calculated above Y

ears

CD

R (%

)

CA

R (%

)

IITIR

(%)

IET

ER

(%)

NP

NA

R (%

)

EP

S (`

)

IIAW

FR

(%)

IEA

WF

R (%

)

GP

AW

FR

(%)

NP

AW

FR

(%)

EC

AW

FR

(%)

CO

DR

(%)

03-04 54.45 15.21 97.79 71.60 2.46 111.93 7.14 4.92 0.71 0.44 0.71 7.51

04-05 57.39 16.67 97.60 68.41 2.69 127.03 7.30 4.79 0.98 0.48 0.72 7.15

05-06 50.35 15.85 97.52 66.31 2.77 69.66 7.84 4.97 1.15 0.54 0.79 7.56

06-07 49.36 18.33 97.46 71.08 2.81 64.26 7.65 5.18 0.90 0.56 0.82 7.93

07-08 48.99 20.40 96.56 70.64 2.30 53.82 7.68 5.30 0.72 0.46 0.82 8.00

08-09 36.23 19.83 87.42 66.58 2.87 70.45 7.18 5.16 0.86 0.52 1.07 7.48

09-10 33.37 21.11 95.73 72.90 3.13 75.24 6.90 4.86 0.76 0.55 0.94 6.76

10-11 37.91 20.22 98.19 73.68 3.47 74.48 7.25 4.99 0.80 0.61 0.94 6.81

11-12 49.23 22.22 99.09 68.50 3.69 63.48 8.00 5.10 0.93 0.64 1.04 6.82

12-13 51.28 23.33 96.43 66.76 3.90 55.85 8.46 5.41 1.24 0.67 1.00 7.09

Avg. 46.86 19.32 96.38 69.65 3.01 76.62 7.54 5.07 0.91 0.55 0.89 7.31


15.2 NPA Management of ‘TBCC Bank Ltd.’:

Table 5.222

Table showing NPA Management of TBCC Bank Ltd. of last 10 years

Yea

rs

Tota

l

Ad

van

ces

(` i

n L

ak

hs)

Gro

ss N

PA

(` i

n L

ak

hs)

Gro

ss N

PA

(%)

Total Provision

(` in Lakhs)

NE

T N

PA

(ìn

Lak

hs)

NE

T N

PA

(%)

1 2 1/2x100

03-04 4165.63 549.15 13.18 390.42 158.73 4.20

04-05 4481.37 445.22 9.93 410.45 34.77 0.85

05-06 3870.49 422.10 10.91 420.89 1.21 0.04

06-07 3864.67 396.55 10.26 456.09 -59.54 -1.75

07-08 4074.50 365.45 8.97 468.86 -103.41 -2.87

08-09 3786.82 340.25 8.99 498.64 -158.39 -4.82

09-10 3671.99 310.18 8.45 509.92 -199.74 -6.32

10-11 4384.73 270.10 6.16 518.91 -248.81 -6.44

11-12 6120.08 246.90 4.03 528.96 -282.06 -5.04

12-13 7000.77 250.70 3.58 540.21 -289.51 -4.48

Average 8.45 -2.66



13

.18

9.9

3 10

.91

10

.26

8.9

7

8.9

9

8.4

5

6.1

6

4.0

3

3.5

8

4.2

0

0.8

5

0.0

4

-1.7

5

-2.8

7

-4.8

2

-6.3

2

-6.4

4

-5.0

4

-4.4

8

-10.00

-5.00

0.00

5.00

10.00

15.00

Gro

ss a

nd

Net

NP

A (

%)

Years

Chart 5.40 Gross and Net NPA of TBCC Bank Ltd.

Gross NPA

Net NPA



(NPA) management of The Baroda Commercial Co-operative Bank Ltd. for the period of

the study from the year 2003-04 to 2012-13. It shows Gross NPA and Net NPA of the

bank in amount and in percentage. It also shown provision maintained by the bank against

non performing assets of the bank during the period of the study.

As per present guidelines from RBI Net NPA should be less than 5 percent to


from RBI. From the above table 5.222 and chart 5.40 the researcher found that Gross NPA

of TBCC Bank Ltd. was found more than 10 percent in the years 2003-04 to 2004-05 and

2006-07 in remaining years it was found less than 10 percent during the period of the

study. It was a great achievement for the bank that bank has successfully reduced its Gross

NPA to 3.58 percent in the year 2012-13 which was highest 13.18 percent in the year

2003-04.

Net NPA of the bank should be less than 5 percent as per RBI rules. During the

period of the study from 2003-04 to 2012-13 the researcher found that the Net NPA of the

bank was remained not only less than 5 percent but less than Zero during the period of the

study. NPA management of the bank was found good Bank always maintained reserve

more than its Gross NPA therefore Net NPA of the bank remained Zero. Average Gross

NPA ratio was found 8.45 percent and Net NPA was found (-2.66) percent that means

Zero (0). Bank has Net NPA Zero continuously from last 7 years 2006-07 to 2012-13.


can said that the NPA management of the bank found too good during the period of the



regulation recommended by RBI time to time. Therefore Net NPA of the bank found zero

constantly from last seven years.


15.3 Common Size Statement and Trend Analysis of ‘TBCC Bank Ltd.’:

(I) Common Size Income Statement of ‘TBCC Bank Ltd.’:

Table: 5.223

ìn Lakhs


Incomes:





Other Receipts 14.04 15.18 18.23 17.67 23.82 141.29 39.65 15.44 4.80 45.59


Total (A) 792.72 863.55 946.50 932.35 969.74 1125.95 1076.73 1136.25 1297.25 1498.70


Expenditures:









Legal fees 0.47 0.00 1.53 2.24 1.35 2.06 2.76 3.02 1.02 11.01











Provisions 29.88 57.80 71.69 39.77 31.88 45.27 31.80 30.00 46.50 97.56


Other expenses 81.75 93.32 106.35 83.40 104.82 127.08 69.42 72.86 138.45 85.38


Total Expenses (B) 745.20 807.73 882.69 865.51 913.99 1054.73 995.18 1042.64 1194.95 1384.20


Net Profit (A-B) 47.52 55.82 63.81 66.84 55.75 71.22 81.55 93.61 102.30 114.50






(Source: Calculated from the published annual reports of TBCC Bank Ltd. of last 10 years)




and loss account) of The Baroda Commercial Co-operative Bank Ltd. for 10 years from


Operating Expenses and Net Profit of TBCC Bank ltd. for the same period stated above.

Chart 5.41 shows graphical presentation of trend analysis as shown in the table no.5.223.

From the above Common Size Analysis of TBCC Bank Ltd. of profit and loss



was remained 96.30 percent of the total operating income. Highest percentage of interest

and discount income with total operating income was found during the period of study

99.09 percent in the year 2011-12 and lowest percentage found 86.75 in the year 2008-

09. Share of other income in total operating income was found during the period of study

on an average 3.7 percent only.

On the other side average percentage of total operating expenses including

various provisions on total operating income was found 93.02 percent during the period

of study. And therefore average net profit during the period of study was found 6.98

percent of the total operating income. Major expenses of the bank were found interest on

deposits and borrowing and employee’s related expenses like salary, provident fund etc.

Average interest expenses during the period of study were 64.78 percent of the total

income and average employee related expenses were 11.28 percent of the total income.

With the help of above figures the researcher can conclude that overall 76.06 percent of

0.00

50.00

100.00

150.00

200.00

250.00

300.00

Per

cen

tag

e

Years

Chart 5.41 Trend analysis of P/L accounts of TBCC

Bank Ltd.


Operating Income


Operating Expenses



the total income was interest expenses and employee’s expenses while 23.94 percent of

the total operating income was other operating expenditure and provisions included in

total operating expenses of the bank.


net profit during the period of study was remained 6.98 percent of total operating income

of the bank. The highest net profit to total operating income percentage was found during

last 10 years was 8.24 percent in the year 2010-11 and lowest percentage was found 5.99

in the year 2003-04.





increase with increase in operating income and decrease with decrease in operating

income of the bank. There is a strong positive correlation between Operating income and

Operating expenses of the bank. Correlation coefficient between operating income and


are strongly correlated with operating income and also depend on operating income. As

compare to the base year 2003-04, total operating incomes and total operating expenses

of the bank increased by 89.06 and 92.20 percent respectively in the year 2012-13.

Trend percentage line of the Net Profit shown increasing trend during the period

of the study. Net Profit of the bank also found positively correlated with operating

income and operating expenses of the bank. Correlation coefficient between operating

income and operating expenses with net profit determined 0.95 and 0.94 respectively. It

indicates that net profit of the bank was depend on operating income and operating

expenses of the bank but other factors also affect on net profit of the bank. As compare

to base year net profit of the bank increase every year during the period of the study.

Finally at the end of the March 2013 net profit of the bank has increased by 140.95

percent as compare to base year 2003-04. During ten years trend percentage line of net

profit shown profit of the bank has been increased every year during the period of the

study.


(II) Common size Balance sheets of TBCC Bank Ltd.:

Table 5.224

ìn Lakhs

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Liabilities:





Deposits 7650.00 7808.16 7687.16 7830.21 8317.29 10453.49 11003.64 11566.71 12431.60 13652.31


Borrowings 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00






Total 11356.42 11736.24 11806.54 11945.08 12436.62 14763.56 15076.51 15683.94 16446.39 17735.78


Assets:



Call Money 224.05 309.47 317.35 307.30 5.92 463.33 354.97 488.71 700.46 1152.36



Investment 4757.98 4906.48 5602.67 5572.94 6505.89 8560.47 9393.03 9172.50 8349.47 8340.54


Advances 4165.63 4481.37 3870.49 3864.67 4074.50 3786.82 3671.99 4384.73 6120.08 7000.77




Other Assets 2011.16 1848.72 1815.12 2005.45 1658.40 1787.25 1484.62 1438.32 1090.43 998.78


Total 11356.42 11736.24 11806.54 11945.08 12436.62 14763.56 15076.51 15683.94 16446.39 17735.78


Trend Percentage:

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13






(Source: Calculated from the published annual reports of TBCC Bank ltd. of last 10 years)



Above table 5.224 shows Common Size Balance sheet of The Baroda

Commercial Cooperative Bank Ltd. (TBCCBL) of last 10 years from 2003-04 to 2012-

13. It also shows the trend percentage analysis of key items of the balance sheet. Chart


5.224.





was found 76.98 in the year 2012-13 and lowest percentage was found 65.11 in the year

2005-06. During the period of study highest and lowest percentage of reserves and

surplus with total assets was found 19.03 percent and 15.40 in the year 2006-07 and

2012-13. Average Percentage of 10 years in case of Reserves of the bank remained 17.08

percent and in case of deposits it remained 70.15 percent. Overall average 85.55 percent

of the total assets of the bank financed by these two components i.e. share of the other

items in the balance sheet was 14.45 percent average during last 10 years from 2003-04

to 2012-13. During the last 10 years borrowings of the bank remained Zero. From the

above balance sheet the researcher clearly seen that bank has not used borrowings in its

capital structure during the period of the study. Therefore the major liabilities of the

0.00

100.00

200.00

300.00

400.00

500.00

600.00

Per

cen

tag

e

Years

Chart 5.42 Trend Analysis of Balance sheet of TBCC

Bank Ltd.

Trend Percentage of

Capital

Trend Percentage of

Reserve and Surplus

Trend Percentage of

Deposits

Trend Percentage of

Advances

Trend Percentage of

Investments


bank were found deposits only. Average Percentage of share capital in total of the

balance sheet of 10 years remained 0.75 percent only.

On the assets side of the balance sheet of the major items are Investments and

Advances. Above Common size analysis of the balance sheet of TBCC Bank Ltd. state

that during the period of last 10 years share of Investments and Advances in total assets

of the bank remained on an average 83.41 percent and share of other items in the balance

sheet on an average only 16.59 percent of the total assets during last 10 years. During

the period of study highest percentages of Investments and Advances with total assets

were found 62.30 and 39.47 in the year 2009-10 and 2012-13 respectively. On the other

hand lowest percentages were found 41.81 and 24.36 in the year 2004-05 and 2009-10

respectively.

Chart 5.42 shows trend analysis of the main items of balance sheets of TBCCB

ltd. of last 10 years. Trend percentage line of share capital of the bank shows a


of the bank increased by 382.97 percent as compare to base year 2003-04. Increasing

trend of the share capital indicate that solvency position of the bank become strong

during the period of the study. Reserve and surplus also shows continuous increasing

trend. As compare to the base year 2003-04 reserves and surplus of the bank has

increased by 44.51 percent in the year 2012-13. Continuous increase in reserves and

surplus makes bank’s solvency position more strong and powerful.


continuously increased from the year 2006-07 to 2012-13 as compare to base year

deposits of the banks increased by 78.46 percent in the year 2012-13. During the period

of the study the researcher found that deposits of the bank shows increasing trend. It

indicates increase faith of depositors in the bank during the period of the study. On the

other hand advances of the bank shows mixed trend of increasing and decreasing during

the period of the study. But over all advances of the bank has increased by 68.06 percent

in the year 2012-13 as compare to base year 2003-04. Normally banks uses it deposits

for the purpose of providing advances to its customers. The researcher has calculated Co-

relation co-efficient between deposits and advances 0.71. It indicates that there is

positive co-relation between deposits accepted by bank and advances provided by bank


to its customers. The researcher can conclude here that advances of the bank have

depended on deposits of the bank 71 percent and on other funds 29 percent.


2003-04 to 2010-11. In the year 2011-12 and 2012-13 it shows slightly decreasing trend.

As compare to the year 2003-04 the investment of the bank has increased by 75.30

percent in the year 2012-13. Continuous increase in investment shows that bank has

increased its investment in outside securities it might be a reason for decreasing in

advances in that particular period of time. Here the researcher can be said that bank has

more focus on investment as compare to advances.

16. CONCLUSION:

In this chapter the researcher has analyzed the financial data of the selected

commercial co-operative banks of Gujarat State. The researcher has made analysis by

applying Ratio analysis, Common size Analysis and NPA analysis of each bank. The

researcher has analyzed financial performance of total 14 selected commercial co-

operative banks of Gujarat State. Next chapter of the study deals with comparative

financial performance analysis of the selected commercial co-operative bank and

hypothesis testing.

Documents

OUTLINE OF THE CHAPTER - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/77951/12/12_chapter 5.p… · (Source: Annual Reports of BCCB of last 10 Years) EPS of BCCB `40.92 per