CONTENT

CHAPTER TITLE PAGE NO.

Company profile/ Introduction

History and evolution
Positional status
Mission & vision
Alliance and Joint Ventures.
Research & development
Present status
Awards & other recognitions

Organizational Structure
Channel Of Information Sharing
Management structure
Channel Of Documentation
Channel Of Statement Result Analysis

Analysis of annual report

SWOT Analysis
Strength
Weakness
Opportunity
Threat

Summary and conclusion.

Suggestions and recommendations

Personal Learning

References

Annexure
 CHAPTER 1

INTRODUCTION

Cooperative bank are on important constituent of the Indian financial

system. Judging by the role assigned to them the inspection they are
supposed to fulfilled their number are the number of offices they operate the
cooperative movement originated in the west but the importance that such
banks have assumed in India in salary parallel anywhere else in the world.
Their role in rural financing continues to be important even today and their
business in the urban areas also has increased phenomenally in recent years
mainly due to the sharp increase in the number of primary cooperative
banks. Cooperative banks regulated by reserve bank of India, NABARD and
axis bank.

The cooperative bank in rural area mainly finance agriculture based activity
including farming Cattle, milk, hatchery, personal finance etc. They are
governed by the banking regulation act 1965 and banking laws (Cooperative
societies act 1965). Cooperative banking is a small scale banking carried on
a non-profit no loss basic for cooperation and help.

FEATURES OF COOPERATIVE BANK

1 Governed sponsored, supported and subsided financial agencies in India.

2 Work on the principal of cooperation, self-help and mutual help.

3 The function on non-profit no loos basic.
4 Performed limited banking functions.
5 Some of them are Scheduled banks but are non-schedule bank.
6 At present, Cooperative banks in India do not operate mutual funds.
Cooperative banks usually cater to the credit needs of agriculturist.
8 The area of operations of Cooperative banks is limited and mostly confined
to state. They do not operate at national and international level.
9 Cooperative banks are subject to rules laid down by the registrar of
cooperative societies.
10 Cooperative banks are not nationalised and they do not provide merchant
banking.

ADVANTAGES OF COOPERATIVE BANK

> Easy to form
> No obstruction for membership

> Limited liabilities

> Service motive
> Stability and continuity

DISADVANTAGE OF COOPERATIVE BANK

> Limited resources
> Insufficient management
> Lack of secrecy
> Absence of motivation
> Excessive government interferen

PROFILE OF HIMACHAL PRADESH COOPERATIVE BANK

The cooperative bank came into picture after 1904. Himachal Pradesh has
the distinction of having first cooperative society registered in India .
Cooperative were paramilitary visualized as specialized agency for financing
the credit requirement of rural people in the country particularly agriculture.
In Himachal Pradesh at the time of attaining independence India, Mahasu
central cooperative bank the Mandi central cooperative bank ltd were
functioning to the letter to need of the farmer. In 1953 Himachal Pradesh
state cooperative bank was established after amalgamating these three
central cooperative bank into it.
The registration of Himachal Pradesh state cooperative bank was done in
Aug 1953, der the cooperative society act, 1952mthe bank started
functioning on 15th march 1954. That time, the state of Himachal Pradesh
used to be the union territory and there were only 6 districts in the state. The
bank start functioning as an apex bank as well as central financing agency
two tier system in 6 districts of the state.

The Himachal Pradesh Cooperative bank is serving the people of the state
through the network of 190 branches and extension counter of which about
94% is in the rural areas of the state one branch at new Sabzi Mandi, azadpur
and for the benefits horticulturist of the state.

The himachal Pradesh cooperative bank limited actively associating in the

implementation of poverty eradication programmes launches by the
government of India, government of himachal Pradesh various other
agencies. The main scheme implemented by the bank under:

Swam Jayanti gram swagrojgar YOJNA Self-help group

Kisan credit card scheme SAMFEX.

SIGNIFICANCE
The significance of this study is that, to get know about the financial
performance of the bank and the way in which the theoretical accounting
procedure are put into practical usage. It enabled moto study the comparative
performance of the firm on the past five years, that is, its improvement in
certain areas, decline in some its strength, weakness, efficiency in utilizing
its financial as well as other resources etc.
 OBJECTIVES

> The primary objective of the study is to evaluate the overall performance of
the bank.
> Analytical research has been used in this study to find out the financial
performance of the co-operative bank.
> The methodology adopted in the project on a particular research problem
depends to a great extentup on the objectives of the study. The main sources
of data are:

BRAKE EVEN ANALYSIS:-

Break-even analysis entails the calculation and examination of the margin of

safety for an entity based on the revenues collected and associated costs.
Analyzing different price levels relating to various levels of demand, an
entity uses break-even analysis to determine what level of sales are needed to
cover total fixed costs. A demand-side analysis
would give a seller greater insight
regarding selling capabilities.

One useful tool in tracking your business's cash flow is a break-even

analysis. It's a fairly simple calculation and can prove very helpful in
deciding whether to make an equipment purchase or in knowing how close
you are to your break-even level. Here are the variables needed to compute a
break-even sales analysis:

Gross profit margin

Operating expenses (less depreciation)
Annual debt service (total monthly debt payments for the year)
Since we're dealing with cash flow, and depreciation is a noncash expense,
it's subtracted from the operating expenses. The break-even calculation for
sales is:
(Operating Expenses + Annual Debt Service)/Gross Profit Margin = Break-
Even Sales

SIGNIFICANCE
The significance of this study is that, to get know about the financial
performance of the bank and the way in which the theoretical accounting
procedure are put into practical usage. It enabled motto study the
comparative performance of the firm on the past five years, that is, its
improvement in certain areas, decline in some its strength, weakness,
efficiency in utilizing its financial as well as other resources etc.
 OBJECTIVES

PRIMARY SECONDARY
DATA DATA
> The primary objective of the study is to evaluate the overall performance of
the bank.
> Analytical research has been used in this study to find out the financial
performance of the co-operative bank.
> The methodology adopted in the project on a particular research problem
depends to a great extent up on the objectives of the study. The main sources
of data are:
This study makes a detailed and comprehensive analysis of all the major
aspects of the bank.
The study in Shimla District Co-operative Bank Ltd. reveals that the bank's
overall performance is satisfactory. The project work on a whole has been
very useful to get a practical
knowledge and experience in the field of financial management especially
in financial performance of which is an aid to management in taking
appropriate decisions the study was made out according to the profit and loss
account and balance sheet for the last 5 years and other information provided
by the bank. On the basis of analysis, I came to understand the changes.

RESPONSIBILITIES

This analysis help the management in inter firm operations and also in
future planning.

WORKINGFUNDS :-

Working funds may be taken as sum total of either side of balance sheet items
minus the contra items . For calculation of working funds , monthly average
figures of balance sheet items (except contra items) have to be taken . In such
case, outstanding figures as at the end of the month should be taken.

An assessment of the current business level based on which the analysis is made
has to be done first. It would be necessary to take only resources and assets
which the bank has actively mobilized or deployed. Items of transitory nature
which are incidental to business but which cannot be planned for by the bank
should be excluded from such an analysis as they tend to distort the costs and
returns. With this end in view a concept of working fund has been thought off .
This working fund would taken into account actively mobilized resources and
actively deployed assets.

Actively mobelised resourses :- Deposits

- Borrowings

Actively deployed assets :- - Cash

- Bank Balances

- Loans and Advances .

It is necessary that resources are equal to the assets to make stability to the
analysis of costs and returns.
INDIAN BANKING SECTOR:-
Banking in India has its origin as early as the Vedic period. It is believed that the transaction
from money lending to money banking must have occurred even before Manu, the great
Hindu Jurist, who has devoted a section of his work to deposits and advances and laid down
the rules relating to rate of interest. During Mogul Period, the indigenous bankers played a
very important role in lending money and finance foreign trade and commerce. During the
days of the east- India Company, it was the turn of the agency house to carry on the banking
business the general bank of India was the first joint stock bank to be established in the year
1786. The others that followed were the Bank of Hindustan and the Bengal Bank. The Bank
of Hindustan is reported to have continued till 1906 while the other two failed in the
meantime. In the first half of the 19th century the east-India company established three banks,
the Bank of Bengal in 1809, the Bank of Bombay in 1840 and the banks of Madras in 1843.
These three banks are also known as the presidency banks were amalgamated in 1920 and a
new Bank the imperial bank of India established ion 27th January 1921. With the passing of
the state bank act 1955 the under taking of the imperial Bank of India is taken over by the
newly constituted the state bank of India

WHAT IS BANKING:-
the term bank derived from that Italian word Banka and the banking refers to the
companies that provides banking products and services such as checking and saving ,
deposits , Loans, leases, Mortgages credit cards ATM network , securities brokerage
investment banking, insurance , mutual funds and pensions( Kamath, 2005).

Banking means accepting for the purpose of landing or investment of deposits of money from
the public repayable on demand or otherwise one withdraw able by cheque, draft or otherwise

Banks in India were started on the British Pattern in the beginning of the 19th century. in
those days, all the. At the time of Second World War about 1500 joint stock banks were
operating in undivided India, out of which over 1400 were non- scheduled banks. These
banks were managed by bad and dishonest management and naturally there were number of
bank failures. Hence the government has to step in and the banking companies act 1949 was
enacted which led to gradual elimination of weak banks who were not in position of fulfill the
various requirements of the Act. In order to strengthen the weak banks and receive public
confidence in banking system , a new section 45 was inserted in the Banking Regulation Act
in September 1960, Empowering the Government of India to compulsory amalgamate weak
unit with stronger ones on the recommendations of RBI,
 Financial institution

ORGANISED STRUCTURE UN- ORGANISED STTRUCTURE

RBI INDIGENOUS
BANKS

COMMERCIAL BANKS MONEY LENDERS

UN-SCHEDULED UNREGULATED NON-

COMMERCIAL BANKS BANKERS

SCHEDULED COMMERCIAL BANK

STATE BANK GROUPS

NATIONALISED BANKS
INDIAN BANKS
FOREGION BANKS
REGIONAL RURAL BANK

P.O. SAVINGS

NON BANKING FINANCIAL COMPANIES

COOPERATIVE BANKS

STATE COOPERATIVE BANKS

CENTRAL COOPERATIVE BANKS

PRIMERY AGRICULTURE CREDIT SCITIES

Financial institution of India consists of organized sector and un-organized sector

ORGANISED SECTOR: the sector whose parts and activities are systematically
coordinated by the monetary authority. It includes the RBI. COMMERCIAL BANKS, P.O.
SAVING, NON- BANKING COMPANIES, AND COOPERATIVE BANKS. Is an apex of
the Indian money market.

R.B.I: Reserve Bank of India, being the central Bank of the country though the R.B.I.
Does not enter into direct transaction in the money market, but it guides and controls the
money market through the bank rate.

Commercial Banks: These are very most important segment of our money market. These
commercial banks play a very important role in mobilizing the money (savings) from various
sectors to the economy.
SCHEDULED COMMERCIAL BANKS: it includes SBI and its 8 associates, 19
nationalized commercial banks and other scheduled banks, foreign banks and regional banks.
Today we have 64,918 branches of scheduled banks these are those banks which are included
in the second schedule to the Reserve Bank of India Act 1934. In term of Sec 42/5 of Reserve
Bank of India Act a commercial bank should fulfill the following conditions

Bank must have a paid up capital and reserve of an aggregate value of not less than
Rs. 5 lakh.
It must satisfy RBI that all of its affairs are not conducted in a manner detrimental to
the depositor.
The scheduled banks enjoy certain privilege like approaching RBI for financial
assistance; refinance etc and correspondingly, they have certain obligations alike
maintaining certain cash reserves as prescribed by the RBI, submission of returns etc.

NON SCHEDULED BANKS: these are those banks which are not included in the
second schedule of the RBI Act on the account of failure of the bank with the minimum
requirements for being scheduled

P.O. SAVINGS Banks: this is the oldest in the official small saving schemes in India.
Though P.O. saving scheme have received a lot of attention from the attraction of savings,
but these are not as much popular as the saving deposits accounts with the commercial banks.

REGIONAL RURAL BANK: in 1975 the Regional banks are established in the
supervision and recommendation by a working group headed by Mr. M Narasima when it
was felt that the commercial and cooperative banks are not able to serve the small, marginal
farmers, agricultural labor and artisans. Thus to serve this segment the Regional banks are
established.

NON- BANKING FINANCIAL: IT includes LIC, the GIC and subsidiaries, the UTI.
COOPERATIVE BANKS: The word cooperative stands for willing to work together in
the production and marketing of goods, it is profitable to both producer and consumer to
avoid middlemen. If, for instance, farmers can set up their own markets instead of sending
their produce to a wholesaler, they can sell at a price that includes only their costs and a fair
profit: Additional wholesale and retail costs are avoided, and prices to the consumer are kept
relatively low. In order to take part in this kind of direct productionmarketing enterprise,
people have formed cooperatives these are voluntary associations of either producers or
consumers who band together for the group members' benefits.

COOPERATIVE
BANKING(structure)

SHORT TERM COOPERATIVE LONG TERM COOPERATIVE

CREDIT STT. CREDIT STT.

URBAN COMMERCIAL BANKING

STATE COOPERATIVE AGRIC. &
AT APEX LEVEL (HEAD OF STATE)
RURAL DEVLOPMENT BANK

DISTRICT CENTRAL COOPERATIVE DISTRICT COOPERATIVE AGRIC.

BANK & RURAL DEVLOPMENT BANK

PRIMERY COOPERATIVE
PRIMERY AGRICULTURAL SOCITIES
SOCITIES

Cooperative organizations formed for financial benefits exist in most countries of the world.
The cooperative way of doing business takes many forms, ranging from local to regional and
federated organizations and from highly specialized to multipurpose societies. The
cooperative banks have a three tier structure. At the top level there are state cooperative
banks, At the district level there are central cooperative bank, At local level there are Rural
primary cooperative banks and Urban primary cooperative banks

Cooperative banking structure has unique position in the rural credit delivery system of India.
The cooperative banking sector which is now a century old has a significant role in the field
of credit to the rural through the short term and long term structure from many years the
cooperative banks are the prime institutional agencies with a vast network, wide coverage and
reach up to the remote areas. Keeping the view of cooperation the H.P. State Cooperative
bank was established in Himachal Pradesh in august 1953 under the Cooperative Society Act,
1912. Onward from its establishment the bank is developing day by day and satisfying the
needs of many people.
History
The commercial Banks were operating for the years, but it was being felt that these banks were
not paying necessary head to the credit requirements of common masses. Further the
commercial banks, were mainly concentrating their business in the urban area and the banking
facilities to rural people were not available consequently, the Co-operative Banks came into
picture after 1904. Himachal Pradesh has the distinction of having first Coop. Society
Registered in India. Cooperative were primarily visualized as specialized agency for financing
the credit requirement of rural people in the country particularly agriculture.

Foundation of the Himachal Pradesh state cooperative bank was laid in 1953 by uniting the
Mahasu central cooperative bank ltd. The Mandi central bank and the Chamba cooperative
bank. Its registration is done in august 1953 under the cooperative societies act 1912. Later
the bank starts functioning on 15th march 1954. Bank start functioning as APEX (at the top)
Bank under 2- tier system in 6 districts of Himachal. In 1955 two more Banks namely
Bank of Sirmour & Joint Stock Bank merged into H.P. State Cooperative Bank.

On 1st November 1966 many parts of Punjab ( previous districts Kangra, Kullu, Lahaul &
Spiti, and some parts of districts Hoshiarpur, Gurdaspur, ambala) were merged into
Himachal Pradesh. This results in transfer of Cooperative Banking System of these areas into
Himachal Pradesh with 2 already functioning banks The Kangra Central Cooperative Bank
& The Jogindra Central Cooperative Bank.

In 1972 when Solan awarded with the status of separate district two separate branches of H.P.
State Cooperative bank at Shimla. While 1 Branch of Jogindra central Cooperative bank is
working at Totu (Shimla). Till 29th September 1976 the assets and liabilities of all these 3
Banks were transferred to each other

Now In Himachal Pradesh, the state cooperative bank ltd. With head office at Shimla is
functioning as a central cooperative bank in 6 districts namely Shimla Bilaspur Mandi Chamba
Sirmour and Kinnaur having 36 blocks. The Kangra central cooperative bank with head office
at Dhramshala is functioning as a central cooperative bank banks in 5 districts having 28
blocks. in Solan district the Jogindra cooperative bank with head office at Solan is functioning
as cooperative bank creating the need of peoples of 5 districts beside being a state cooperative
bank for the stat as whole, the Himachal Pradesh cooperative bank is working as the financing
agency for the 6 districts of state and an apex bank for whole of the state. The Himachal
Pradesh Co-operative Bank is serving the people of the State through a network of
190 branches and Extension Counter of which about 94% is in the rural areas of the State and
one branch at New Subzi Mandi Azadpur New Delhi for the benefit horticulturists of the State.

Particular 1955 2006 2007 2016

No. of branches 10 154 160 175
Share capital (in lacks) 7.32 757.73 791 798.91
Deposits (in lacks) 41.14 212052 241273 343433
Loans & adv. (in lacks) 29.19 78564 107607 124765
Investment (in lacks) 8.25 170735 1815904 219421
Working capital (in 52.23 278129 312653 418300
lacks)
PERFPRMANCE OF THE BANKS OVER THE YEARS
POSITIONAL STATUS
The Himachal Pradesh State Cooperative Bank works at the APEX level in the hierarchy of
the cooperative banking. It acts as the central financing agency to the Kangra central cooperative
bank & Jogindra central cooperative bank the bank has the working capital of Rs. 418334.59 lacks and
deposits are 343375.01 lacks.

Mission & vision

Mission/Targets of the bank is to help the self-helped groups by providing them loans at low
rate. Providing the education to the workers/employees of the cooperative societies.
Managing the financial status of the cooperative societies.

1. Connecting all the branches with the core banking system (C.B.S.) to provide the
online banking facility till 2010.
2. Installing the A.T.Machines in all the branches.
3. Achieving the schedule status for the bank.
4. Providing the retail banking to the customers with the help of Information Kiosk.
5. Providing the SAMAGR banking facilities to the customers in one branch.

Vision

1. To providing the loans to the cooperative societies to establish the viaduct pariyojana.
2. Starting the new schemes for the cooperative societies to recover the N.P.A.(non
performing assets )
3. Opening the education center for cooperative societies to improve/increase the
business through giving them proper training & suggestions.
4. Providing the loans for new schemas time to time.
5. Repairing the plans for encouraging & awarding the employees of the Bank.

Alliance & Joint Ventures

The bank has alliances with the UTI bank and has RIMITANCES ALLIANCE with all the
banks to cash the drafts and deposit the money in the account of customers in any branch of
any banks in India

Research and Development:

The business development department (BDD) of the H.P. State Cooperative Bank Shimla
deals with the research and development of the organization. The main focus of the
department is to find out the possibilities of the bank for serving more peoples in the rural
and urban areas and to provide a frame work for the future expectation of the bank .other
functions are providing the better facilities for the consumers like installing the ATMs,
developing the blue print for online banking , internet banking, determining the market
strategies for the future , determining the interest rate on various schemas to earn reasonable
profit for the bank
PRODUCT LINE:
H.P. state cooperative Bank has various products for the customers like Deposits, Loans,
Others.

When we say about the deposits the HP state cooperative bank has the following accounts
Current account, saving bank account, Term deposit, R.D., in term deposit bank further have
the following schemes like Fixed deposits, Sarvapriya deposits, mahalakshmi deposits.
Himpuran nivesh

Loans it includes different types of loan schemes. Currently the hp state cooperative bank has
40 loans schemes. Like personal loans, home loans, vehicles loans, Education loans, Non
agriculture loan, Minor irrigation, self helped group scheme, self employed group scheme
etc

Others it includes the locker facilities, drafts, electronic funds transfers

Present status of Bank

In term of market share the market share of the bank in the Himachal Pradesh is about 55% of
the total shares of the banks in Himachal Pradesh. When we talk about the size of the bank it
has 175 branches all over the Himachal Pradesh. The major competitors of the Himachal
Pradesh State Cooperative Bank and its alliance are S.B.I, I.C.I.C., Punjab National Bank,
Uko Bank, and other banks. In case if the bank has shortage of money and bank needs the
money for its various purposes then the main supplier/ lender of the money is the share
holders or the RBI. When we say bank need money then the question arises why the bank
need the money it may be for lending the money to the needy persons, or to provide the
money to the depositors in case when the depositor takes the money back or person who
takes the loan are known as the customers of the Bank.

Awards and other recognitions

The H.P. State Cooperative Bank Ltd. has granted the national award for achieving
overall excellence in banking operations.
The H.P. State Cooperative Bank Ltd the first cooperative bank to implement coor
banking computer solution (the facilitator of internet banking) whereas only few of
nationalized banks are providing this system.
The H.P. State Cooperative Bank Ltd. Is one of the few organizations which are in
true profit and are paying the dividend continuously.
The H.P. State Cooperative Bank Ltd. Has double the agricultural advancement in
about 2 years against the planed period of Govt. of India of 3 years
The H.P. State Cooperative Bank Ltd is the winner of the Best Outreach Award for
SHGs.
Bank has implemented the various loan schemas for the all sectors of society to suit
them, the main focus of banks service is to develop the rural masses.
Bank is also involved in implementing the programs related to eradication of Poverty
run by the Govt. like SGSY/SJSRY, Rural Housing etc.
The credit needs of farmers are also fulfilled by the bank at low rate of 7%.
ORGANISATIONAL STRUCTURE
The organizational structure of the H.P. State Cooperative Bank Ltd. Is as shown below

GENERAL BODY

Board Of Directors

Executive Committe

President

Chief Executive Officer( Managing Director)

General Manager(admn) General Manager (Banking)

Dy. General Manager Dy General Manager

Section Heads Staff Section Head Staff

District
Manager Staff District Manager Staff

Branch Manager Staff Branch Manager Staff

Staff
Staff
MANAGEMENT
As per Bye-Law No. 36 of the Banks Bye laws, the management of the affair of the Bank
vests in General Body, Board of directors, president and the Managing Director. The
President is elected among the members of Board of Directors on its constitution and the
appointment of Managing Director is done by the State Govt. Under the provision of section
35-B of the H.P. Cooperative Societies Act, 1968. The BOD is elected after every 4 -5 years
as under

1. 6 Directors are elected from six districts duly elected by the members of Cooperative
societies. Each one Director is from Kinnaur, Bilaspur, Chamba, Shimla, Mandi and
Sirmour Districts. Out of these 6 Directors one Director must be from MF/SF/SC/ST.
2. BOTH Kangra Central Cooperative Bank and Jogindra Central Cooperative Bank
from their members of board nominate 1 Director each.
3. H.P State Cooperative M&C Federation also nominated 1 director.
4. H.P State Cooperative Agriculture & Rural Development Bank also nominates 1
director.
5. 1 director who represent the Weaver and Industrial Cooperative Societies nominated
by HP Handloom Weaver Apex Cooperative Society Kullu.
6. State Govt. (under section 35 of HP Coop. Societies Act, 1971) nominates 3 directors
or 1/3 of total no. of directors. (Whichever is less).
7. Registrar Cooperative Societies or its nominee
8. 2 directors (under rules 39 of HP Cooperative Societies rule 1971) are nominated by
the Registrar Cooperative Societies.
9. Managing director as Ex- officio director.

CHANNEL OF INFORMATION SHARING: - in the H.P. state cooperative

bank the channel of information sharing from top to bottom and from bottom to top if the
management has to pass the information to the other branches then it is passed through a
circular by the bank to the different branches. These informations are sent to the district
office which circulate the information to the divisions branches. Where these
informations are then given to the employees who work according to these
informations/guidelines.

Any information from the bottom level is passed to the higher level through branch
manager then to the division manager then to district manager then to head office then the
information is presented to the management
CHANNELS OF INFORMATION SHARING

Information at corporate level and unit level is exchanged by using one of the
following channels:

On line / internet : Website of NFL

E-mail system
Paper reply system
Courier system
Information exchanged can be broadly divided into two categories of communication namely verbal
and written communication.

Verbal Communication:

This refers to informal type of communication where information is exchanged verbally for
example Telephonic conversation. There is no legal restriction of keeping record of the exchanged
information.

Written Communication:

In this type of communication a record of information exchanged is kept .It is legally

bound to keep such records. Maintenance of Master file is an example of this type of
communication.

CHANNEL OF DOCUMENTATION: - The channel of documentation is same

as that of the channel of information sharing but the difference is that in the
documentation there is generally the flow of different type of written reports about the
branch to the head office. These may include the weekly book , quarterly report,
yearly report, etc

Analysis of annual report

ANALYSIS is the process of evaluating the relationship between components parts of
financial statement to obtain a better understanding of firm position and performance. The
purpose of financial analysis is to diagnose the information contained in it so as to judge the
profitability and financial status of the firm. In the words of Myers, Financial statement
Analysis is largely a study of relationship among the various financial factors in a business as
disclosed by a single set of statement, and a study of the trends of these factors as shown in a
series of statements.

TYPES OF FINANCIAL ANALYSIS

ON THE BASIS ON THE BASIS

OF MATERIAL OF MODUS
USED OPERANDI

EXTERNAL INTERNAL HORIZONTAL VERTICAL

ANALYSIS ANALYSIS ANALYSIS ANALYSIS

METHODS OF FINANCIAL ANALYSIS:

There are various methods of annual report analysis the following methods of analysis is
generally used

1. Comparative statement
2. Trend analysis
3. Common size statement
4. Funds flow analysis
5. Ratio analysis
6. Cost volume profit analysis
FINANCIAL POSITIONS OF THE BANK IN RECENT YEARS STARTING FROM THE FINANCIAL YEAR 2011-12 TO 2017-18

Particular 20014-15 20015-16 2016-17

Capital 76198200.00 75773300.00 79120700.00
reserve funds and other
funds 1782884182.76 2009811367.15 2007214709.15
fixed deposits 12720977213.59 14353418535.22 16493064660.34
saving bank deposits 5493584952.32 6090965527.69 6919163118.36
current deposits 341542003.46 709722064.79 664733958.72
Borrowings 2378236712.08 2421882725.08 2464500264.08
overdue interest revenue 98039421.09 94356053.29 155452173.39
interest payable 22881111.03 25258966.10 32707644.03
other liabilities 395016879.84 533707421.43 584005199.71
Provision 690232611.72 618778674.76 748274591.29
Profits 605758234.25 858676377.19 1152681197.15

Cash 660184826.48 63260437.31 1096016735.71

balance with other banks 4004907803.33 6770074259.74 7872977039.38
Investments 10383959790.50 10508778366.67 10277424381.20
Advances 7704446604.18 7856385765.56 10760522714.66
interest receivable 531392255.53 441310420.58 457048686.73
branch adj 521386862.06 582498257.91 221475603.13
premises less depreciation 36549909.91 30958606.34 74089921.52
other assets 710040384.50 923191533.20 498682440.75
 1. TREND ANALYSIS:- the analysis in which the trend of last few years is taken
into consideration in this we take one year as the base year then we see the trend
according to that year i.e. what trend is followed W.R.T the base year.

1. Interest on Deposit
2.
Year Interest on Deposit

2017 0.8

2016 0.86

2015 0.56

Interest on Deposit
1
0.9
0.8
0.7
0.6
0.5
Interest on Deposit
0.4
0.3
0.2
0.1
0
2017 2016 2015
 I. Per Employee working Funds

Year Per Employee working Funds

2017 382386323

2016 277998492

2015 227682646

Per Employee working Funds

400000000

350000000

300000000

250000000

200000000 Per Employee working Funds

150000000

100000000

50000000

0
2017 2016 2015
 II. Growth Year of Deposit
Year Growth Year of Deposit

2016 21.9

2017 37.8

Growth Rate of Deposit

21.9

2016
2017

37.8
Term Deposit to total Deposits
Year Term Deposit to total Deposits

2015 45.75

2016 82.6

2017 78.7

Term Deposit to total Deposits

45.75
78.7

2015
2016
2017
82.6
Deposit per Employee

Year Deposit per Employee

2015 225747511

2016 275276114

2017 379470890

Deposit per Employee

100%

80%

60%

40%

20%

0%
2015 2016 2017

Deposit per Employee

Interest on Loan & Advance
Year Interest on Loan & Advance

2015 50

2016 62

2017 89.4

Interest on Loan & Advance

50

2015
89.4
2016
2017

62
COMPARISON OF BALANCESHEETS OF 2015 , 2016 AND
2017

100%
90%
80%
70%
60% COMPARISON OF
50% BALANCESHEETS OF 2015 , 2016
40% AND 20172
30% COMPARISON OF
20% BALANCESHEETS OF 2015 , 2016
10% AND 2017
0% COMPARISON OF
BALANCESHEETS OF 2015 , 2016
AND 2017

ANALYSIS:-

1. The overall trend of deposits showing the decrease in current deposits and increase
in saving bank account as well as in fixed deposits as compare to 2015.
2. The balance sheet showing the increase in losses every year as compare to year
2015.
3. The overall status shows that the people are investing less in current deposits as
compare to the fixed deposits.
4. The analysis shows that the people are not showing much interest to keep their
money in bank deposits which increases the loss of the branch because banks are
not in a position to invest amount in loans and credits.
5. The fixed expenses are much more than the income of the branch.
DETAIL OF ACCOUNTS PER EMPLOYEES AS PER
BALANCESHEETS OF 2015 , 2016 AND 2017

900000000

800000000 CURRENT DEPOSITS

700000000
SAVING BANK
600000000 ACCOUNT

500000000 MATURED TERM

DEPOSITS
400000000
FIXED DEPOSIT
300000000

200000000 CASH BALANCE

100000000
PROFIT
0
1 2 3 4 5 6 7 8 9

1 Current Accounts
2015

2016

2016 Increase/decrease
as compare to 2015

2016 %age
Increase/decrease as
compare to 2015
COSTS:-
In Branches , three types of costs are incurred :-

FINANCIAL COSTS

TRANSACTION COSTS

RISK COSTS

FINANCIAL COSTS:-

These costs are incurred on resources raised by the

branch. Typically these cost are interest costs paid on deposits and
borrowings during a particular period of time.

For calculating the financial cost, the concept of

weighted average is followed. This is followed by comparing the share of
each type of resources to the total resources and working out the cost of a
representative sample of 100 rupees of working funds of the branch . The
weighted is multiplied by the cost per Rs .100 to arrive at weighted average
cost per Rs 100.

Transaction Costs:- These are the costs of management also and consist of
all costs incurred by the branch other than the financial costs (interest on
resources raised) and risk cost. The transaction costs includes:-

Salaries and other allowences

Stationary and printing

Postage and telephone

Rents

Taxes

Depriciation on assets

Provisions made on expenses

Gratitute , bonous etc.

 The provisions made towards bad debts , overdue interest and other loss
assets should not be included under transaction cost .Transaction cost can
be computed in absolute terms as well as percentage of working capital.

Transaction cost = transaction cost X 100

Average working funds

RISK COST :-
This measures the likely risk in the business. The major part of the risk in branches comes
from loans and advances . The estimated provisions for NPA should be worked out before
projecting risk cost of the branch. The branches should consider risk capital as 0.5% of
loans and advances or estimated provisions for NPA whichever is more.

Risk cost can be calculated in absolute term as well as percentage to average working
funds.

INCOME :-

The branches earn two types of income :-

Financial Income (yield)

Miscellaneous Income

FINANCIAL INCOME

(YIELD):-

This is the return generated by a branch by deploying it funds in

loans and advances . While calculating yield as a percentage of working funds , care should
be taken to exclude the overdue unrealized income from the total income earned.

For calculating the yield , the same concept of weighted average as done under financial
cost, is followed .This is done by comparing the share of each type of assets to the total
assets and working out the yield of a representative sample of 100 rupees of working funds
of the branch. This weighted (relative share) is multiplied by the yield per 100 rupees to
arrive at the weighted yield per 100 rupees.
MISCELLANEOUS INCOME :-
Income derived from non-financial assets and services
is taken as miscellaneous income .This includes commission and brokerage on remittance
facilities, locker rental,and other service charges.

Miscellaneous income can be worked out in absolute term as well as a percentage to

working funds.

Miscellaneous Income = Miscellaneous income X 100

Average working funds

FINANCIAL MARGIN :-
Financial Margin is the difference between the weighted average cost of funds and the
weighted average yield on assets .This is the surplus generated out of 100 rupees of
business out of which the transaction costs and risk costs would have to be absorbed.

Financial Margin = weighted average yield on assets Weighted average cost of funds.

YIELD ON ASSETS :-
This ratio calculates the percentage of financial income with respect to average working
funds .The branch manager should aim to increase the yield on assets .This ratio can be
improved by putting the resources in high yielding assets.
 INTERPRETATION OF RATIOS
SN RATIO
1 Capital Adequacy
Ratio-Capital to total
risk weighted assets
2 Net worth to Average
Working Fund
3 Borrowing to Average
Working Fund
4 Borrowing to Net
worth
5 Composition of Capital
a Govt. Share Capital to
Total Share Capital
b Share Capital of
Individuals to Total
Share Capital
6 Composition of
Deposits
a Current and Savings
Deposits to Total
Deposits
INTERPRETATION AS ON
31.3.2016
Higher the capital ratio, higher the capacity of
banks to bear risks
This ratio shows the share of Net worth to the 12.47
total working fund. It indicates the strength of
the institution. Higher this ratio, better for the
institution
This ratio indicates the dependency level of the 4.24
institution on outside support for doing its
business. The interpretation of this ratio depends
on the sources of borrowings. If the institution's
borrowings largely comprised of high cost
borrowings, higher the ratio, higher will be the
cost of funds
This ratio indicates how many times of its Net 33.97
worth the institution is borrowing. This has to be
seen with restrictions, if any, imposed by statute/
bye-laws/ Board on the borrowing powers of the
institution and commented upon.
Higher the ratio, higher is the control of the 30.11
Govt. over the institution. But, it also indicates
the State's participation and interest evinced by it
in strengthening the institution. This ratio may
also be seen in the light of adoption of Model
Cooperative Societies Act by the State
concerned.
Higher ratio indicates the higher level of 0.10
participation of individuals.
The ratio indicates the proportion of low cost 29.08
deposits in the total deposits. Higher the ratio,
better it is for the institution. This would help in
keeping down the Financial Cost (FC)
 b Term / Fixed Deposit to
Total deposits
This ratio indicates proportion of high cost 70.92
deposits in the total deposits. Higher ratio
indicates higher cost of funds. Institutions should
maintain proper mix of low and high cost
deposits.

c Ratio of Time Deposits Higher ratio indicates the stability of the deposit
to Total Deposits base of the bank. It has also a bearing on the cost
of fund mobilized by the bank.

d Ratio of Customer Higher ratio helps in reducing the liquidity risk 53.79
deposits to Total assets ( substantially.
Customer deposits refer
to deposits of
individuals only)
e Ratio of Volatile Lower the ratio, better the liquidity 46.21
Liabilities to Total
Assets (Volatile
Liabilities refer to all
liabilities which are
likely to be withdrawn
even if slightly higher
rate is paid by other
market players. Ex:
Institutional deposits,
govt. deposits etc.)
7 Asset Composition

a Non-earning Assets to This ratio indicates proportion of non-earning 5.78

Total Assets (Non- assets to total assets. Higher the ratio, lower will
earning assets to cash, be earning ability of the banks. Normally, banks
current account
should attempt to maintain non-earning assets at
balances, interest
receivable, other fixed the minimum. Lower the ratio, better it for the
asset etc.) bank.

b Cash and current This indicates the cash management position of

account balances to the bank
Total Demand
Liabilities (TDL)
c Prime Asset Ratio I.e. Higher the ratio, better the liquidity
Prime assets to Total
assets Prime Assets are
Cash, Inter-Bank
Placements (due within
30 days) and liquid
securities
 d Total investments to Higher the ratio, higher is the tendency of the
TDL bank for going for risk free earning. However,
this ratio will have to be interpreted keeping in
view the funds position of the bank, lending
opportunities etc.

e Non-SLR investments to The position is to be examined with reference to 62.87

Total Investment availability of Non-SLR surplus funds and RBI/
NABARD guidelines in this regard.

f Investment in share and This ratio has to be interpreted keeping in view

debentures to Total the instructions issued by RBI /NABRD from
Investments. time to time.

g ST loans outstanding to These ratios indicate what proportion of loans 34.24

Total loans outstanding and advances are of short-term and long term in
nature. These ratios have to be compared with
the ratios of ST and LT liabilities to total
liabilities to understand whether there is any
unduly large asset liability mismatch which may
lead to liquidity crunch.

h L.T. loans outstanding to 31.05

total loans outstanding
I High yielding advances The ratio indicates the extent of high value
to total advances advances in the total loan portfolio. Higher the
outstanding ratio, better will be the earning ability of the
bank. However, while interpreting this ratio, IO
will have to study the extent of impaired assets in
this category, appraisal capability of the bank,
supervisory mechanism etc.

j Ratio of Net loans to 67.55

Primary deposits
primary deposits refer to
deposits other than
Certificate of Deposits,
Interbank Deposits etc.
8 Asset Quality

a Standard assets to Total Higher the ratio, better is the quality of advances 87.99
loan assets portfolio of the bank. Besides more standard
assets means more earning capacity of the bank
 B Impaired assets to Total This ratio indicates the extent of poor quality 12.01
loans loans. If it is more than 5% of the loan, portfolio,
the IO is required to critically examine the
impaired assets and their composition and
suggest measures for improving the recovery
position.

9 Profitability Ratios

a Interest Income to Gross The ratio indicates the proportion of interest 94.12
Income income to the gross income.

b Income from The ratio indicates the proportion of income 5.88

Commission, brokerage from non-fund based business. Higher the ratio,
and exchange and other better the profitability of the bank. Normally, this
sources to Gross Income
ratio will be around 10%

c Interest paid including This ratio indicates the proportion of interest 65.95
interest due but not paid income utilized for meeting the interest cost. It
on deposits and also indicates the spread available to the bank to
borrowings to interest
meet the COM and other cost. Very high ratio
income
would indicate serious problem in the bank as to
asset liability miss-matches.

d Cost of Management The ratio indicates what part of the Gross Income 14.39
(CoM) to Gross Income goes to meet cost of management. This ratio will
have to be compared with State average and peer
group averages.

e Interest on deposits and The ratio indicates the proportion of interest cost 71.87
borrowings to Total in the total cost. A high level of interest cost
expenditure indicates a poor level of internal resources
position and heavy dependence on outside
sources.

f Staff cost to Total This ratio indicates the proportion of staff cost in 16.66
expenditure the total expenditure of the bank

g Incremental CoM to This ratio indicates at what cost the incremental

incremental business business of the bank is built up. What is required
to be examines is whether the bank is incurring
higher incremental expenditure for generating
Rs. 100 of additional business.
h Net profit to Gross This ratio indicates what portion of the gross 13.63
Income income is available. This will have to be
examined in relation to statutory restrictions. If
any and as per NABARD's guidelines.

i Dividend pay out ratio This ratio indicates the % of dividend declared
Dividend paid to Net by the bank. This will have to be examined in
profit relation to statutory restrictions. If any and as per
NABARD's guidelines.

j Net profit to owned fund This ratio indicates return on owned funds 10.25

k Net profit to average The ratio indicates margin of profitability 1.28

working funds available to the bank

l Interest Cost (on This ratio gives the average cost of funds 5.82
deposits and borrowings
) to average Working
Funds

m Interest Cost (on loans This ratio gives the average yield on WF 8.83
and advances plus
investments ) to average
Working Funds
n Total provisions made This ratio indicates the extent of provisions
towards impaired assets made by the bank. The bank is required to make
to Total provision full provision as per the prudential norms
required to be made

o Total provisions This ratio indicates degree of risk of loaning

required to be made to operations in the bank. This ratio should be
loans and advances compared with State, district as well as peer
outstanding
group averages and commented upon.

P Erosion in Assets to This ratio indicates the quality of assets. A

Total Assets higher ratio reflects the poor quality of assets
held by the bank.
10 Other Ratios

(I) Net Worth to Total Higher the ratio, better is the intrinsic strength of
Outside Liabilities the bank. This also indicates risk bearing
capability of the bank.

(ii) Business per staff The ratio indicates the level of staff productivity 357.09
in the bank. This ratio will have to be compared
with State, district and peer group level averages.
This can also be compared with per staff break-
even level of business.

(iii) Per Branch business This ratio indicates the level of branch 2675.11
productivity. As in the case of staff productivity,
this ratio will have to be compared with that of
State, District and peer groups.
 Swot analysis
The overall evaluation of a businesss strengths, weaknesses, opportunities, and threats is
called SWOT analysis. SWOT analysis consists of an analysis of the external and internal
environments.
External Environment Analysis
In general, a business unit has to monitor key macroenvironment forces (demographic
economic, technological, political-legal, and social-cultural) and microenvironment factors
(customers, competitors, distributors, and suppliers) that affect its ability to earn profits Then,
for each trend or development, management needs to identify the associated marketing
opportunities and threats. A marketing opportunity is an area of buyer need in which a
company can perform profitably. Opportunities can be classified according to their
attractiveness and their success probability. The companys success probability depends on
whether its business strengths not only match the key success requirements for operating in
the target market, but also exceed those of its competitors. Mere competence does not
constitute a competitive advantage. The best-performing company will be the one that can
generate the greatest customer value and sustain it over time. An environmental threat is a
challenge posed by an unfavorable external trend or development that would lead, in the
absence of defensive marketing action, to deterioration in sales or profit. Threats should be
classified according to seriousness and probability of occurrence. Minor threats can be
ignored; somewhat more serious threats must be carefully monitored; and major threats
require the development of contingency plans that spell out changes the company can make if
necessary.
Internal Environment Analysis
It is one thing to discern attractive opportunities and another to have the competencies to
succeed in these opportunities. Thus, each business needs to periodically evaluate its internal
strengths and weaknesses in marketing, financial, manufacturing, and organizational
competencies. Clearly, the business does not have to correct all of its weaknesses, nor should
it gloat about all of its strengths. The big question is whether the business should limit itself
to those opportunities in which it possesses the required strengths or consider better
opportunities to acquire or develop certain strengths. Sometimes a business does poorly
because its departments do not work together well as a team. It is therefore critically
important to assess interdepartmental working relationships as part of the internal
environmental audit.
STRENGTH: -The strengths of the H.P. State Cooperative Bank depending on its
external and internal environment are

1. The bank is spread into only 6 districts due to its limited area it is easy to monitor
minor requirements of the customers which may else ignored by other banks.

2. The bank provides the easiest way to open a new account into any of its branch as the
customers has to fill minimum requirements which are asked by other banks.

3. The bank has the branches in the remote areas where the branches of other banks are
not yet opened which give the bank edge over the other banks.

4. As the bank is a cooperative bank thus bank gets the advantage of getting priority by
the different cooperative societies for transactions and loans.
 5. Due to the cooperative in nature peoples has faith in the bank.

6. Cooperative staff is the main strength of all the organization as in case of the bank its
cooperative staff is the main strength of the bank.

7. Adherence to coop values and principles.

8. The H.P. State Cooperative Bank has well knit organizational structure.

9. The H.P. State Cooperative Bank has deep roots in the community.

10. The H.P. State Cooperative Bank deals the user as not only the customers but also the
member of the bank.

11. It has great amount cooperation with other district cooperative banks( Kangra central
cooperative bank, Jogindra central cooperative bank ).

12. The H.P. State Cooperative Bank focus on the person of limited means & the poorer
section

13. The main priority of The H.P. State Cooperative Bank is member services rather than
profit.

14. The H.P. State Cooperative Bank has the capacity to thrive in crisis.

15. The main emphasis of The H.P. State Cooperative Bank is on GLOCALISATION.

WEAKNESSES:-
1. The H.P. State Cooperative Bank has less resources as compared to the other
nationalized and public banks.

2. The H.P. State Cooperative Bank staff lacks the professionalism.

3. Political pressures on the employees of the bank as compared to the other banks.

4. There is some sort of government control over the working of The H.P. State
Cooperative Bank.

5. In The H.P. State Cooperative Bank dependence syndrome is there. Each person think
his work may be done by the other.

6. No internet banking and mobile banking.

7. ATM network is not well spread like other nationalized and public banks.
 8. Most of the branches are not online however they are computerized.

9. Less advertisement is other weakness of The H.P. State Cooperative Bank.

10. Lack of time management.

11. Lack of knowledge about the many aspects of banking to the employees.

12. Due to the restricted area the total capital of The H.P. State Cooperative Bank is
limited.

OPPORTUNITIES:-

1. Being the cooperative bank it has the opportunity to finance the government projects.

2. Providing ATM facilities may take bank a long way.

3. With the growth of axis bank in the term of customers and market share the growth of
bank is also permote.

4. As it is a state cooperative bank this bank is bank in demand.

5. Being cooperative bank this bank gets priority over the other banks for cooperative
societies.

6. Existence of bank in remote areas.

7. Bank may take the advantage of being cooperative bank by promoting itself.

THREATS:-
1. The main threat to The H.P. State Cooperative Bank is increasing steps/roots of the
public banks.

2. Easy policies of the public banks.

3. Less documentation of the public banks for different types of loans.

4. Instant /one minute service provided by some banks.

5. Online banking and mobile banking facilities of other nationalized and public banks

6. Facilities like ZERO BALANCE ACCOUNT by some of public sector banks.

 CONCLUSION
The present study on H.P. State Cooperative Bank may be concluded as

1. Total no. of branches of bank increased up to 207 in 2017.

2. The total deposits in the bank in 2016 are Rs. 343433 lacks.

3. The total investment of the bank in 2016 is Rs. 219421 lacks.

4. The total loans and advances of the bank in 2016 is Rs. 124765 lacks.

5. The total working capital of the bank for 2016 is Rs. 418300 lacks.

6. The H.P. State Cooperative Bank is working at the apex level in the state.

7. The H.P. State Cooperative Bank has alliance with the UTI for clearing and issuing
the bank drafts.

8. The H.P. State Cooperative Bank is running various loans and deposits schemes for
the customers.

9. The H.P. State Cooperative Bank has won various awards for its appreciable work
done in rural areas.

10. The capital of the bank is increasing continually and is about Rs. 798 lacks, thus the
bank has greater chance to bear risk is increasing.

11. The cash in hand or with other banks of The H.P. State Cooperative Bank is
continusly increasing and is Rs. 44654.26 lacks.

12. In all the 3 deposits the rate of increasing of fixed deposit is maximum/highest.

13. The investment of the bank is more than the borrowings of the bank from recent
years.

14. The average total liabilities/assets of the bank for the financial year 2007-08 are Rs.
346605 lacks.

15. The weighted cost for the liabilities is 5.82; the weighted yield for assets is 8.83.

16. Total average expenditure/income for the financial year 2007-08 is Rs.32505.72
lacks.
17. Ne t profit of the bank for the financial year 2007-08 is Rs. 4429.18 lacks.

18. The financial margin is 3.00, the net margin is 1.28.

19. The bank has higher the capital ratio, thus higher the capacity of banks to bear risks.

20. Net worth to Average Working Fund ratio is 12.47% thus higher the ratio better the
institution.

21. Borrowing to Average Working Fund ratio is 4.24% thus lower the ratio lower will be
the cost of funds.

22. Borrowing to Net worth ratio is 33.97 thus the bank is borrowing more than 33 time
of its net worth.

23. The Govt. Share Capital to Total Share Capital ratio is 30.11%, which means the
government has higher control over the bank as higher the ratio higher the control of
the govt. over bank.

24. Share Capital of Individuals to Total Share Capital ratio is 0.10 %which means there
is low level of participations of individuals

25. Current and Savings Deposits to Total Deposits ratio is29.08% it means the bank is in
batter conditions.

26. Term / Fixed Deposit to Total deposits ratio is 70.92% it indicates the higher cost of
funds.

27. Ratio of Customer deposits to Total assets ( Customer deposits refer to deposits of
individuals only) is 53.79% , indicates that the bank has reduced liquidity risk

28. Ratio of Volatile Liabilities to Total Assets (Volatile Liabilities refer to all liabilities
which are likely to be withdrawn even if slightly higher rate is paid by other market
players. Ex: Institutional deposits, govt. deposits etc.) is 46.21% which is on lower
side thus the bank has better liquidity.
 SUGGESTIONS AND RECOMMENDATIONS
To run any organization successfully the management needs to think always for the
betterment of their service and product, every time there is a chance of improvement in the
functioning of every organization specially when we talk about the banking sector in past
there is very less or no competition in the market and the banks has no pressure to provide
better facilities to the peoples but in recent years the competition is increased due to the entry
of the public banks and other money lending units . Considering this the state cooperative
banks need to be more careful and needs to take such steps which favors hem to stay ahead in
the market. Some of the suggestions and recommendation are given here which may help the
H.P. State Cooperative Bank to stay in the competitive market if they adopt these.
1. In order to be competitive in the market, all three segments of cooperative banks
should jointly work out a coordinated strategy for establishing workable synergy to
compliment and supplement each other.

2. Cooperative bank has to work out institution specific areas specific strategy keeping
in view market, regulatory framework and cooperative values related factors.

3. Healthy relationship should be established with the customer.

4. More mass awareness campaigns should be organized in order to enhance market

share of bank.

5. Customers satisfaction must be the top priority of the bank

6. More branches should be open at the remote areas of Himachal Pradesh.

7. Maximum practical exposure should be provided to the job trainees so that they may
handle the various enquiries of customer effectively.

8. Bank can provide the facility of ZERO BALANCE ACCOUNT to the students or the
employees.

9. Loaning procedure should be simple; less documentation should be involved in the

loan sanctioning procedure.

10. Functioning should be fast i.e. the time taken to do any work should be reduced
efficiently.

11. Online banking should be provided to customers for their batter service.

12. Customers care center should be established.

13. Help line no. should be given to every customer.

14. A.T.M. machines should be installed at the faster rate so that maximum customers can
take advantage of this facility in wide spread area.

15. Credit cards should be provided to the customers according to their reliability.
16. Staff should be more cooperative.

17. Banking timing should be increased from 10 AM to 5 PM.

18. Loaning criteria should be revised.

19. Bank should provide appropriate knowledge about their products.

20. All branches should be online.

21. No inter branch charges should be deduced

22. Commission on bank drafts should be reduced.

23. Proper use of machinery and the infrastructure, assets should done.

24. Usually there is a large time gap between transaction and printing or pass book which
need to be reduced.

25. Run different schemas for the different types of customers. Like more interest for
those who deposit more than one lack or other.

26. Special line of credit may be extended to rural credit cooperative financing rural
women entrepreneurs at interest rate of 4%.

27. There is a need of upward revision of the interest subvention from the present 3% to
at least 4.5% in order to meet the requirement of lending short term credit at 7%.

28. Banks should switch over to loan system instead of debentures for giving funds to
ARDBs.

29. Today the commercial banks are taking to the correspondent or agency model to
increase their outreach and to meet their financial inclusion goals. They are
associating with MFs in a big way to finance large no. of SHGs. Cooperative bank
should be aggressive in this direction as they are not aggressive in this direction.

30. Bank should adopt the essential feature of good corporate governance i.e. efficiency,
professionalization, transparency and accountability.

31. In order to compete at the market place, brand image is of great significance in public
acceptance of product and services.

32. Roots should be more deepen into the community.

33. Cooperative bank has fewer resources than required which should be overcome.

34. Proper posting of the staff should be done. It is generally seen the branch has
requirement of 5 employees but there are only 3-4 employees working in that branch.
 RSONAL LEARNING
Working with the H.P. State Cooperative Bank as a part of summer training is an highly
knowledgeable experience for me as it teaches me various lessons. H.P. State Cooperative
Bank is an cooperative bank which is working at the apex level of all Central Cooperative
Banks in Himachal Pradesh. While working with this bank I learn many things which are
defiantly going to help me in future for my carrier as well as for my moral. The organization
of cooperative bank is different than the other nationalized banks, and thus helps me in
having good knowledge of banking sector. It is not a easy work to conclude what I learn from
the H.P State Cooperative Bank as what I learnt there is as much valuable as much the
knowledge of books for a person. I learn their many valuable facts and some of them are

1. What is the bank? Why we need a bank? What is the role of banking in our money
market?

2. Various reasons behind the establishment of banks in India.

3. Types of banks in India.

4. Meaning of cooperative bank, need of cooperative bank.

5. Different levels/types of cooperative banks.

6. Positional status, mission, vision, etc of H.P. State Cooperative Bank.

7. How the organization works i.e. organizational structure of H.P. State Cooperative
Bank.

8. Various departments of the bank and how they work.

9. How the research and development is done in H.P. State Cooperative Bank.

10. Leave procedure of the bank and how many leaves a person can take in 1 year.

11. How the recruitment and the transfers of the new/ old employees are done.

12. How the various orders/instructions/circulars are issued to different branches.

 REFERENCES

1. www.hpscb.com

2. www.nabard.com

3. www.google.com

4. www.rbi.com

5. www.bankmate.com

6. Documents provided by the bank employees.

7. Various circulations issued by the bank itself, by RBI, by NABARD.