A

Research Report

On

A Study of Consumer Buying Behaviour

Submitted To

JSCOE(MBA Department)

In Partial fullfilment of the award of Degree of the

Master of Business Administration

Submitted by

“Jyostna Ajay Shaeriya”

Under the Guidance of

Prof. Sashi Bhushan Rai

Through

Jayawantrao Sawant College of Engineering

MBA Department

Hadapsar, Pune

A.Y. 2019-20
 ACKNOWLEDGEMENT

The success and final outcome of this project required a lot of guidance and
assistance from many people and I am extremely privileged to have got this all along
the completion of my project. All that I have done is only due to such supervision and
assistance and I would not forget to thank them.

I respect and thank Mr. Salim Shaikh, for providing me an opportunity to do the project
work in PMC Bank and giving me all support and guidance which made me complete
the project duly. I am extremely thankful to him for providing such a nice support and
guidance, although he had busy schedule managing the corporate affairs. I also thank
the employees of PMC Bankfor their valuable suggestion and cooperation.

I owe my deep gratitude to our Prof. Sashi Bhushan Rai

, who took keen interest on my project work and guided me all along, till the
completion of my project – work by providing all the necessary information for
developing a good system.

I am thankful to and fortunate enough to get constant encouragement, support and

guidance from all Teaching staffs of MBA which helped me in successfully
completing my project work.
 INDEX

Sr. No Topic Page No

Executive Summary 1

01 Objectives, Hypothesis (if any)& Scope of the Study

2
02 Literature Review
3
03 Theoretical or Conceptual Background
4-6
04 Research Methodology
7-8
05 Data Analysis & Interpretation
8-12
06 Findings
13
07 Suggestions
14
08 Limitations 15

09 Conclusion
16
10 Bibliography
17
11 Annexure
1. Abbreviations 18-19
2. Questionnaire
SUMMARY

Meaning of Cooperative Bank:

 Cooperative bank is an institution established on the cooperative

basis and dealing in ordinary banking business.Like other banks, the cooperative banks
are founded by collecting funds through shares, accept deposits and grant loans.

History of Cooperative Banking in India:

 Cooperative movement in India was started primarily for dealing with the
problem of rural credit. The history of Indian cooperative banking started with the
passing of Cooperative Societies Act in 1904. The objective of this Act was to
establish cooperative credit societies “to encourage thrift, self-help and
cooperation among agriculturists, artisans and persons of limited means.”


 Many cooperative credit societies were set up under this Act. The Cooperative
Societies Act, 1912 recognized the need for establishing new organizations for
supervision, auditing and supply of cooperative credit. These organizations were-

(a) A union, consisting of primary societies; (b) the central banks; and
(c) provincial banks.


 Although beginning has been made in the direction of establishing cooperative
societies and extending cooperative credit, but the progress remained
unsatisfactory in the pre-independence period. Even after being in operation for
half a century, the cooperative credit formed only 3.1 per cent of the total rural
credit in 1951-52
 Title of the project
Financial growth of PMC BANK.

Punjab & Maharashtra Co-operative Bank

• Punjab and Maharashtra Co-Operative Bank Limited is commonly referred to
as PMC Bank. It is of Indian origins and is associated with Banking and
Finance industry. PMC Bank has founded in the
th
• year 1984, 13 February and has established itself as one of the top ten
co-operative banks in the country.
• It was the youngest bank to get a status of Scheduled Bank in the year 2000 and
license of Authorized Dealer category 1 in the year 2011 for Forex business by
Reserve Bank of India. PMC Bank was conferred with Multi-State status in the
year 2004 by Central Registrar.

Statement of the problem

• .PMC bank has limited funds their primary aim is to focus on primary sector
rather than rural sector.
• PMC Bank provides short medium and long term finance to agricultural and
allied sector.
• PMC bank not innovating much in financial strategies which is finding some
issue about it services.
• Even though PMC bank show the downward flow of growth in rural sector
because of limited funds.
• In the rural sector customer prefer regional banks rather than Co-operative banks
so they need to focus on their financial expansion and growth .

1
 Purpose of the study

 The financial growth of PMC bank is analyze using different ratios like liquid ratio,
share captials, dividend per shares etc.

 By financial growth analysis of PMC bank we would be able to get fair picture
of financial position of PMC bank.

 The aim of PMC bank of achieving the financial growth from last 5 years(2015 to
2018)
Objectives of The Study
• The objectives of the study are as follows as :-
1) The PMC Bank measuring performance channelizes the effort of the people to
achieve its goal
2) To innovate new idea of company financial strategy for growth of its service
in financial scope
3) To observe the psychology of the customers regarding the services of
the cooperative bank
4) To analyze out the various aspects identified by the customers to make
an effective cooperative bank
5) To find out the role of PMC bank and respective departments which provides
various services.
6) PMC Bank need to make proper financial strategies to have better result

Scope Of The Study

 The aims to study co-operative bank which is PMC bank implemented

in India.

 The scope of the study is by focusing on the rural area the PMC bank can get
more success and will have more growth than other nationalized banks.

 The PMC Bank having the growth in share capital , liquidity ratios etc
so itsgetting better result in most of sector.

 So by focusing more on rural sector it can have more growth by making better
service which will be helpful to the customers.

2
 THEORETICAL PERSPECTIVE

By Peter Simon (member ,committee on economics and monetary

affairs)(European Parliament)
Cooperative banks are crucial for financing of the real economy. Especially small
or medium enterprises and regular consumers are cutomers of cooperative banks
that manage their assets and provide credits..
By Roberto gualtieri(chairman, committee on economics and monetary affairs)
(European Parliament)

Meaning Of Financial Statements

Financial statements refer to such statements which contains financial information about an
enterprise. They report profitability and the financial position of the business at the end of
accounting period. The team financial statement includes at least two statements which the
accountant prepares at the end of an accounting period. The two statements are: -

 The Balance Sheet


 Profit And Loss Account

They provide some extremely useful information to the extent that balance Sheet
mirrors the financial position on a particular date in terms of the structure of assets,
liabilities and owners equity, and so on and the Profit And Loss account shows the
results of operations during a certain period of time in terms of the revenues obtained
and the cost incurred during the year. Thus the financial statement provides a
summarized view of financial positions and operations of a firm.

Meaning Of Financial Analysis

The term financial analysis is also known as „analysis and interpretation of financial
statements’ refers to the process of determining financial strength and weakness of the

3
firm by establishing strategic relationship between the items of the Balance Sheet, Profit
and Loss account and other operative data.
The first task of financial analysis is to select the information relevant to the decision
under consideration to the total information contained in the financial statement. The
second step is to arrange the information in a way to highlight significant relationship.
The final step is interpretation and drawing of inference and conclusions. Financial
statement is the process of selection, relation and evaluation.

Features of Financial Analysis

o To present a complex data contained in the financial statement in simple and

understandable form.

o To classify the items contained in the financial statement in convenient

and rational groups.

o To make comparison between various groups to draw various conclusions.

Purpose of Analysis of financial statements

▪
To know the earning capacity or profitability.

▪
To know the solvency.

▪
To know the financial strengths.

4
 ▪
To know the capability of payment of interest & dividends.

▪
To make comparative study with other firms.

▪
To know the trend of business.

▪
To know the efficiency of mgt.

▪
To provide useful information to mgt.

Procedure of Financial Statement Analysis

The following procedure is adopted for the analysis and interpretation of

financial statements:-

❖
The analyst should acquaint himself with principles and postulated of accounting.
He should know the plans and policies of the management so that he may be
able to find out whether these plans are properly executed or not.

❖
The extent of analysis should be determined so that the sphere of work may be
decided. If the aim is find out. Earning capacity of the enterprise then analysis of
income statement will be undertaken. On the other hand, if financial position is
to be studied then balance sheet analysis will be necessary.

❖
The financial data be given in statement should be recognized and rearranged. It
will involve the grouping similar data under same heads. Breaking down of
individual components of statement according to nature. The data is reduced to
a standard form.

5
 RESEARCH & METHODOLOGY

• Methodology is a way to systematically solve the research problem . It may be

understood as a science of study how research is done systematically. This
research performance management system I which problems and findings are
generated from the calculation. When some deduction is made from data then
a problem is located regarding the same and the reasons for the same also
searched for . In the end suggestions and recommendations are made to
make research meaningful and worthy to improvise on the same.
A) Data collection methods/ sources
The process of data collection begins after a research problem has been

defined and research design ahs been chalked out. There are two types of

data –

PRIMARY DATA -

It is first hand data, which is collected by researcher itself. Primary data is collected by
various approaches so as to get a precise, accurate, realistic and relevant data. The main
tool in gathering primary data was investigation and observation. It was achieved by a
direct approach and observation from the officials of the company.

SECONDARY DATA - it is the data which is already collected by someone else.

Researcher has to analyze the data and interprets the results. It has always been
important for the completion of any report. It provides reliable, suitable, adequate and
specific knowledge.

6
 Punjab & Maharashtra Co-op Bank Limited

Performance Highlights
Summery of Balance
Sheet
(Rs. in Crores)
KEY PARAMETERS March March March
2017 2018 2019
Share Capital 241.42 284.51 294.22

Reserves * 656.07 747.90 814.80

Deposits 7,781.47 9,012.00 9,938.85

Advances 5,527.54 6,438.23 7,457.50

Working Capital 8,847.91 10,323.19 11,419.52

Gross Profit 139.73 202.28 211.81

Net Profit before Tax 123.95 150.48 169.67

Net Profit after Tax 78.48 96.94 100.90

Capital Adequacy 12.20% 12.32% 12.29%

Net N.P.A.% 0.70% 0.96% 1.05%

❖
Interpretation

• All the key parameter of PMC Bank has shown increasing trend every years

7
 DATA ANALYSIS & INTERPRETATION

• . Share Capital stood at Rs.292.22 crores as on 31/03/2018 as compare to

• Rs.284.51 crores as on 31/03/2017. Even Deposits, Loan, Gross Profit etc
• also shown increasing trend. The success & strength of all Bank depend on
• this parameters. If all this parameters shows increasing trend they will be
• able to obtain various permission from regulatory authority viz RBI & other
• Govt Bodies.

8
 RATIO ANALYSIS

CURRENT RATIO:

An indication of a company's ability to meet short-term debt obligations; the

higher the ratio, the more liquid the company is. Current ratio is equal to current assets

divided by current liabilities. If the current assets of a company are more than twice the

current liabilities, then that company is generally considered to have good short-term

financial strength. If current liabilities exceed current assets, then the company
may have problems meeting its short-term obligations.

58615.76
60000
53421.59 54130.18

50000
42895.38 43746.43

38228.64
40000
Year
29549.79 Current Assets
30000
25227.88 Current Liabilities
21632.56
21396.16 Current Ratio
20000

10000

1.01 1.17 1.39 1.36 1.23

00
0
1 2 3 4 5 2019
2016 2017 2018
2015

Year Current Assets Current Liabilities Current Ratio

(Rs. In crores) (Rs. In crores)

2015 21632.56 21396.16 1.01

9
 2016 29549.79 25227.88 1.17

2017 53421.59 38228.64 1.39

2018 58615.76 42895.38 1.36

2019 54130.18 43746.43 1.23

❖
Interpretation:

An ideal solvency ratio is 2. The ratio of 2 is considered as a safe margin of solvency

due

to the fact that if current assets are reduced to half (i.e.) 1 instead of 2, then also the

creditors will be able to get their payments in full.

But here the current ratio is less than 2 and more than 1 which shows that the bank
have current assets just equal to the current liabilities which is not satisfactory as the
safety margin is very less or zero. Therefore the bank should keep more current assets
so that it can maintain a satisfactory safety margin.

10
LIQUID RATIO

Liquid ratio is also known as ‘Quick’ or ‘Acid Test ‘Ratio. Liquid assets refer to

assets which are quickly convertible into cash. Current Assets other stock and prepaid
expenses

are considered as quick assets.

Quick Ratio = Total Quick Assets

Total Current Liabilities

Quick Assets = Total Current Assets – Inventory

0.88
90000 0.97 0.68
80000
70000
42895.38
60000 38228.64 RATIOS
0.67 43746.43
50000 0.6 RATIOS
40000 RATIOS
25227.88 37121.33 38041.13 29966.56 YEAR
30000 21396.16
17040.22
20000 12929.97
10000
0
1 2015 2 2016 3 2017 4 2018 5
2019

11
 2015 12929.97 21396.16 0.60

2016 17040.22 25227.88 0.67

2017 37121.33 38228.64 0.97

2018 38041.13 42895.38 0.88

2019 29966.56 43746.43 0.68

❖
Interpretation:

A quick ratio of 1:1 is considered favourable because for every rupee of

current liability,there is atleast one rupee of liquid assets. A higher value
of ratio is considered favourable. Here this ratio is less than 1 in
2015,2016& 2017 but in 2017 & 2018 it is close to 1 which is not
satisfactory. This means the bank has not managed its funds properly in
this particular period.Therefore bank should rationally utilise its funds to
maintain an idealliquid ratio.

12
 FINDINGS

PMC Bank is fast growing Bank in Co-op Bank sector. At present it rank as 6th in all
over India in Co-op Bank sector. It provide all services at par with other Commercial
Bank. All key parameter like Share Capital, Deposits, Advances, Profited shows
increasing trend every year. Even PMC Bank isalso providing all channel/digital banking
service to all its customers. And due to its good & quality service, it has never incurred
loss for last 15-20 years & it has timely paid dividend to its Share Holder & Interest to its
depositors. But still they should make some financing strategy on how they can make
work more better as compare to commercial banks.

13
 LIMITATIONS

Though PMC Bank is being Multi-State Co-op.Bank but it has certain

limitation. For eg.most of authority doesn't accept the Bank Guarantee

issued by Co-op.Bank. Further Co-op.Bank doesn't open branches all over

India since it require licenses/permission from RBI & other Govt.Agency

While making this project there was some problem about its source of information
because some information can‟t be share for outsiders so it was difficult to cover all
the information in such less time but it got covered in every forms of PMC Bank growth
perspectives.

15
 CONCLUSION

• Though Co-op.Bank functioning in India has certain limitation & restriction

• but the service which they are providing are more comfortable. friendly &

• also have personal approach. Commercial / Nationalized Bank are mostly

• having corporate/Govt. a/c., hence they are not providing quality service to

• common& general public.

16
 Suggestions

• In view of this it's recommended to have Bank

• account in Co-operative Bank rather than commercial / Nationalized Bank.

14
 ANNEXURE

Questionnaire

• Questions & Answers

Q1. What is the reason for choosing this bank as your bank?

(a)Family tradition

(b) Incentive

(c) Nearness to office/residence

(d) Just by chance

(e) others (specify)

Q2. What you can tell about dividend per share policies to your customers about year
2018 ?

Q3. What are the strategies PMC bank made to grow their net profit year by year ?

Q4. What kind of more service should be added by the bank to help the customers?

Q5. As we can see in year 2017 & 2018 there is downfall in ratios of the PMC Bank so
how PMC bank should manage the funds to get to the satisfactory?

18
Q6. How much time does the branch take to?

(a)Issue / renew a fixed deposit receipt--------------------

(b) To en cash a fixed deposit receipt--------------------

Q7. What are the main purpose of the PMC bank ?

Q8. What types of strategies should be made to have growth of PMC bank in Rural
areas ?

Q9. What are the aims of the PMC in year 2019 ?

Q10. What makes different to choose PMC bank to choose from other banks ?

19
 Bibliography

http://www.pmcbank.com

Information provided-

Salim S. Shaikh

Manager

Ghatkopar (E) Branch.

17