A SYNOPSIS

ON
‘’FINANCIAL STATEMENTS ANALYSIS OF AMRAVATI DISTRICT CENTRAL COOPERATIVE BANK’’

SUBMITTED BY
(MBA Finance)

UNDER THE GUIDANCE OF

SUBMITTED TO
Sant Gadge Baba Amravati University, Amravati
In the partial fulfilment for Award of the degree of
Master of Business Administration
THROUGH

The Head
Department of Research and P.G. Studies
In Science and Management, V.B.M.V., Amravati
2024-25
INDEX Sr. Contents Page No.
No.

1. Introduction

2. Review of Literature

3. Rationale of the study

4. Research Problem Statement

5. Objectives of the study

6. Scope of the study

7. Research Methodology

8. Limitations of the study

9. Scheme of Chapterization

10. Appendices:

Questionnaire
Bibliography
1.1 Introduction, History and Origin of ADCC Bank Ltd:-

The industrial development of agro-industry in Maharashtra was actually started by the Co-operative Bank.
Co-operative Bank took the initiative to industrialize through mechanization. Amravati District Central
Cooperative Bank Amravati Bank was registered on 23/01/1962 and its registration number is 24956.

Amravati District Central Co-operative Bank in Amravati or Bank RBI, Nagpur obtained banking license
on 16th March 2012 and bearing number RPCD.NAG.DCCB/L/13. The bank covers 14 talukas across Amravati
district. The total number of villages in the district is 1637. The bank has a total of 93 branches across its
operations and is headquartered at Amravati. The total number of various executive service cooperative societies
affiliated to this bank is 613. All the farmers have got the benefit of various schemes implemented by the bank.

The bank has provided crop loans to lakhs of farmers as well as educational loans to credit institutions,
women's self-help groups and students. Due to this, there has been a radical change in the living conditions of
farmers. The bank has started using modern banking and on this basis the customers will benefit from E-Banker
Solution (CBS), ABB, RTGS, NEFT, IMPS, QR-CODE, CTS-CLEARING, NACH, ECH, POS, ATM Machine,
ATM Van, can ATM Card, Micro ATM, Aadhaar Base Payment, KCC. etc. facilities are provided. The bank has
its own data center and DR-site

For the development of the cooperative movement in the district, there was a need to set up a separate
mechanism for disbursement of finance in the rural areas and hence DCCBs came into existence as central
financing institutions to meet various types of financial needs. Fields in Cooperative Districts. Central
Cooperative. Banks are established under co-op. Act 1912. The Co-operative Societies Act gave rise to many co-
operative societies. Institution. Amravati District Central Co.

The bank came into existence on 25 January 1962 after the merger of Taluka Central Co-op. Banks
functioning in the district. Name Amravati Dist. Central Co-op. The bank came into being after the MSC Act
1960 came into force for the state of Maharashtra independently. Taluka banks were functioning in the district
earlier. For the past 54 years, the Bank has provided outstanding service to its members, depositors and
customers. As a Central Financing Institution in the district, Amravati DCCB is the platform on which Co-Op.
Societies in the district use it to maintain their reserves, deposits and others.

Area of Operation:

The area of operation of the bank is extended in Amravati district. At present the bank is providing
services through its 90 branches, 3 extension counters and 5 field offices with its head office at Camp Road,
Amravati.
 Main Objectives of the Bank:

To act as a balancing center of finance for the Primary Societies in the area of operations by providing
them with funds whenever they need them. Collecting money from members and others in various deposit
schemes. To provide necessary banking facilities to the customers. Development and expansion of banking
facilities in rural and urban areas. To develop the co-operative movement in the district and act as a friend
philosopher and guide. To supervise, guide and control the Co-op. Societies in the district. To promote and
nurture SGH and meet their financial needs.

1.2 :- Research Problem:-

Agriculture plays important role in the Indian economy. The fact that half of the national
income is being contributed by export of agro-based produces substantiates this point. Further, majority
of the Country’s people is depending on agriculture in one way or the other. Hence, the welfare of the
people and their economic condition, and also the economic development of the Country depend, to a
greater extent, on the output, progress and prosperity of agricultural sector. In spite of this significant
role of agriculture, it is unfortunate to note the pathetic situation of agriculturists as half of the rural
population live below poverty line and most of them remain indebtedness. One of the reasons for this
has been on account of inadequate returns from agriculture sector. Besides, modernization schemes in
agriculture resulted in the substantial increase in the investments on seeds, fertilizers, pesticides,
irrigational facilities, cost of labour and on labour saving equipment. As a result, the financial
requirement of farming- community has been increasing year after year on a consistently increasing
basis. To put it differently, the farmers are in need of higher amounts of credit/loan for the purpose of
undertaking agricultural activities. In this background, Co-operative Banks, based on their past
performance, are recognized as the better institutions for the provision of sound and dynamic credit to
farmers.

The Co-operative Banks have been performing well in mobilizing small rural savings and using the
same, besides the funds mobilized from other sources, to finance the requirements of various growth sectors
including agricultural sector. Though the Co-operative Banks have been established with laudable
objective, they are suffering from various problems and as a result, their financial performance is very
precarious. This is due to many a number of reasons such as lower or negative spread, mounting
nonperforming assets, entry of other Banking Institutions into the area earmarked for the Cooperative Banks
as a result of which there is an increasing competition, etc. Moreover high levels of non-performing assets
and high growth in credit of UCBs and Rural Credit Cooperative Institutions continue to be the major area of
concern.

Therefore, it is necessary to assess the financial performance of these Banks. In this background, the
present study intends to focus on the analysis of financial performance of Amravati District Central Co-Op
Bank Ltd. Amravati in general and in particular with the objective of ascertaining the reasons for the same
and also the extent to which each has contributed to the poor financial performance of Co-operative Banks.
The study covers the assessment and evaluation of financial performance of Bank with an emphasis on
unearthing the reasons for the mounting losses and non-performing asset
1.3 Research Methodology:-

A broad definition of Research is given by Martin Shuttle worth- “In the broadest sense of
the word, the definition of research includes any gathering of data, information and facts for the
advancement of knowledge.”
Another definition of Research is given by Creswell who states – “ Research is a process
of steps used to collect and analyze information to increase our understanding of a topic or issue”
A part of study is an overview of literature related to the topic and the rest is an analysis of
data collected from various sources. The two main sources of data of information are Primary
data and Secondary data. The available data is tabulated and analysed to arrive certain
conclusions..

SOURCES OF DATA COLLECTION:-

Primary data is more accommodating as it shows latest information.

Observation method,
Questionnaire prepared as below:-
1. Address of the Head Office of the Bank.
2. Date of Establishment and Initial capital, Branches and number of ATM of the Bank:
3. Name of the Highest Authority in the Bank:
4. Education and Age of the Highest Authority in the Bank:
5. Who supervises day-to-day operations?
6. Level of Computerisation:
(i) Fully (ii) Partial (iii) Nil
a) When did it start?

b) How many Computers are there?

c) What are the functions for which computers are used?

d) Whether computer personnel are trained?

e) Where were they trained?

7. Owned Building: (i) Yes (ii) No

8. What is your Employees Recruitment procedure?

9. Number of employees

a. Permanent

b. Temporary

c. Daily basis

10. Did the Bank conduct any Training Programmes?

(a) Name of the Training

(b) Nature of the Training

(c) Duration and Year

11. Nature of Loans issued (Details of Purposes)

12. How the lending rate is decided?

13. What are the reasons for NPA?

14. Details of the Board of Directors:
 Secondary data though old may be the only possible source of the desired data on the subjects which
cannot have
Date of
primary data at
No of Date of Becoming
Name Design Age Edn Profe all.
Shares Joining Bank Board
Member Secondary data
is available effortlessly, rapidly and inexpensively. Primary data takes a lot of time and the unit cost of
such data is relatively high
Secondary data collection sources:-
1. Books.
2. Website of Amravati District Central Co-Operative Bank Ltd., Amravati Bank.
3. Annual reports of Amravati District Central Co-Operative Bank Ltd., Amravati
4. The present study is primarily based on the secondary data – the data to be collected from
Banks and other sources. The required data is collected from the Bank’s Head Office of
Amravati District Central Co-Operative Bank Ltd., Amravati which are the units of the
present study. Besides, the necessary data is collected from other sources such as annual
reports, bulletins, magazines, articles, newspapers, e-sources, etc. For collection of the data
steps followed as mentioned below:-

 Step 1- Program Planning.

 Step 2- Survey Development.
 Step 3- Data collection.
 Step 4- Data Analysis.
 Step 5- Findings,Conclusions and Recommendation
A Brief Review of Earlier Studies:-
Volumes of literature on Co-operative Banks were written by many authors,
administrators, study teams and researchers. There are many research studies that try to evaluate
- whether the Co-operative Banks are operating efficiently or not. At attempt is made in the
following paragraphs to review some of important earlier works by the scholars with a view to
find whether any researcher has worked on the topic of the proposed study. In his work entitled
Financial Sector Reforms - A Global Perspective, Sohani, A. K (2009) assessed the financial
stability, accounting and auditing reforms in Banks.
Harish Kumar Singla (2008) in his work entitled, Financial Performance of Banks in
India examined the crucial role of financial management in the growth of Banking Sector with a
special emphasis on profitability analysis of selected sixteen banks for a period of seven years,
2000-01 to 2006- 07). Ramakumar, T. N (2008) in his work, Co-operative Banking - Indian and
Global Perspectives, focussed on the assessment of efficiency of Urban Co-operative Banks in
Maharashtra. B. Ramachandra Reddy’s (2008) work, Management of Non Performing Assets in
Banks, comes to a conclusion, based on the factual analysis, that the NPAs not only eat into
profitability and hamper their ability to recycle fund but also shake the public confidence which
is crucial for the existence and growth of any financial institution.
Abdual Hadi (2006), in his paper entitled Performance of Regional Rural Banks in West
Bengal - A Evaluation, investigated the socio-economic role of Regional Rural Banks in the
welfare of people living in rural area. In the paper entitled, Performance Appraisal of Urban Co-
operative Banks –
A Case Study, Amit Basak (1995-96 to 2006-07) has highlighted that UCBs figure among
the vital segments of the banking industry. They essentially cater to the credit needs of persons of
small means.
Biswa Swarup Misra (2006), in his work Performance of Regional Rural Banks in India,
examined the problems of loss making RRBs with an emphasis on whether the problem is
confined to some particular sponsor banks. In his work, Performance of selected Public and
Private Banks in India, R. Soundara Rajan (2005) evaluated and compared the performance of
Public Sector Banks against Private Sector Banks (including Foreign Banks) with an emphasis on
the competition among themselves. For the purpose of comparison, the author has used all the
parameters to measure productivity, efficiency, profitability, liquidity and growth. Kusum W
Ketkar and Suhas L Ketkar in their work, Performance and Profitability of Indian Banks in the
Post- liberalisation Period, attempt to determine the impact of various market and regulatory
initiation on efficiency improvement and profitability of Indian Banks since the implementation
of financial sector reforms. Like the above, a number of studies have been completed by many
Researchers in the past. However, no Researcher has worked on the topic and theme of the
present study. Hence, this study aims at studying a topic on which the Researchers have not
worked in the past.

Websites and books for reference as below:-

Websites:- http://www.Amravati dcc.com

www.google.com

https://en.wikipedia.org/wiki/Cooperative_banking

https://blog.ipleaders.in/co-operative-banking/

https://www.esds.co.in/Amravati -dccb-case-study

Books:-
 Co operative Banking & Credit Societes- A.T. Vaze for Government Diploma in Co
operation & Accountancy.
 History, Principles and Management in co operation – Prof.Kulkarni, Amol Mahabal,
Arindam Haldar.- for Government Diploma in Co operation & Accountancy.
 Research Methodology for Business MCom Part-1 Sem II Michael Vaz, Arora Vaz,
Manan Prakashan.
1.2 Objectives of the Study:-

1. To study the functioning of Amravati District Central Co-Op Bank Ltd. Amravati.

2. To study the aims and objectives with historical background of the Amravati District Central

Co-Op Bank Ltd. Amravati.

3. To study the financial performance of the Bank and analyse the overall performance evaluated

on the basis of other vital parameters i.e. Productivity parameters, Operational parameters and

Social Responsibility parameters.

4. To assess the Capital Adequacy, Reserves, Borrowings, Liabilities and levels of Non-

performing Assets of Amravati District Central Co-Op Bank Ltd. Amravati

5. To evaluate the efficiency and effectiveness of Amravati District Central Co-Op Bank Ltd.

Amravati in mobilizing the deposits, lending advances, investments and recovery performance

of selected banks.

6. To assess the Operating Profit/Net Profit of Amravati District Central Co- Op Bank Ltd.

Amravati.

7. To study the existing transaction system.

8. To study the services provided by the system in view of customer relation

9. To suggest measures for increasing the efficiency of the bank.

10. To analyze the sources of finance their significance and trends in relation to total capital

structure of the Bank.

Features of Cooperative banks:-

These banks are government sponsored government supported and government subsidized
financial agencies in India. Unlike commercial banks which focus on profits, cooperative banks
are organized and managed on principles of cooperation, self help and mutual help. They
function on a “no profit, no loss” basis. They perform all the main banking functions but their
range of services is narrower than that of commercial banks.

Some of them are scheduled banks but most are unscheduled banks. They have a federal structure
of three-tier linkages and vertical integration.

Cooperative banks are financial intermediaries only, particularly because a significant amount of
their borrowings is from the RBI, NABARD, the central and state governments and cooperative
apex institutions.

There has been a shift of cooperative banks from the rural to the urban areas as the urban and
non-agricultural business of these banks has grown over the years.
Limitations of the Study:-

The study will be confined to selected ADCC Bank in Amravati with an emphasis on the
evaluation of financial performance. Hence, other aspects that are not directly pertaining to the
financial performance of other Co-operative Banks will be outside the purview of the present
study. Further, the Banking Institutions in other sector such as private sector, foreign banks, etc
will not be covered in the present study. Besides, the banking institutions in other states of the
Country will not be studied in this study.
One of the supposed limitations is with respect to sampling analysis; Natural bias of
respondents in the reporting of data is often the cause of a systematic bias in many inquires.
Generally in surveys, people tend to give what they think is the "Correct" answer rather than
revealing their true feelings / facts. This may lead to incorrect inferences.
Increase in Productivity

 Branch wise targets for Deposit Mobilization and Loan disbursement are set

 Review is taken on taluka bases every month by Manager and quarterly review of all staff
is taken by CEO.

 Bank made teller made loan scheme

 Nivas Nyahari Yojana for tourism, Baliraja Education loan scheme for farmer’s child

 Wider publicity is given through FLC, Exhibition camp, Local news papers, Local T.V.
channels etc.

 Bank has increase micro Business by delegating Loan sanctioning powers to BM.

 BM can Sanction loan for Car up to Rs.15 lacs .

CONCLUSION & RECOMMENDATIONS

The objective of this chapter is to present briefly the conclusions and suggestions arrived
at after the analysis of the data collected for this study.The present study is attemped to evaluate
the roll of ADCC in the Development of Co-operative Movement in Amravati

The study at Sindudurga District central Co-operative Bank gave a vast learning
experience to me and has helped to enhance my knowledge. During the study I learnt how the
theoretical financial analysis aspects are used in practice during the working capital finance
assessment. I have realized during my project that a credit analyst must own multi-disciplinary
talents like financial, technical as well as legal .

 Amravati a district central co-op bank gives us various products of Banking.

 Financial position of Amravati a district is good. Its increasing day by day.
 We can see Productivity ratio of bank is increases.
 Total income, Gross profit, Net Profit of ADCC is increased and Total expenses is decreased at
last 5 years.
 ADCC play important role for Development of Amravati .
 ADCC Serve Various Deposit, loan products & Various Agricultural credits to the people of
Amravati a District.
 Financial Statements like profit and loss statement , balance sheet of ADCC show us growth .
Conclusions:-

 The bank should therefore look forward to promote investment opportunities during their
visit through banners, leaflets and pamphlets, etc. and increase the awareness levels.
 The Bank must take strong steps in promoting the investment option and generate desire and
interest towards the products. A completely new market strategy needs to be formulated.
 Firstly, the Bank should target the existing customer base investment plan and try to increase
their awareness levels. Then they should make the other customers of the bank at least aware
of the various schemes so that the next stage of interest, desire and action becomes easy to
execute.
 It was surprising to note that some of the respondents having account in ADCC Bank had
investment in nearest rival Bank of India. Corporation should take stern steps to channelize
the investment towards itself. The corporation should also work on the factors, which lead to
investment in other banks.
 Location and loyalty towards the old banks were the key factors for this particular behaviour.
The corporation therefore should give a serious thought to these aspects and try to provide
service, which can somehow make a dent in the loyalty and more trust towards the state
owned banks.
 Bank should look to open new branches with proper planning and careful selection of the location,
which is convenient to the target customers especially in places where there are a lot of option in
front of the consumers.

 Advertisement play an important part in the brand recall of the corporation therefore, bank
should look to create a campaign, which provides the consumers with the basic knowledge
and general attraction towards the products offered.

 Co-operative Bank should look to tap the untapped market and increase their market share. It
is very surprising that in spite of the high satisfaction levels of the current customer base the
market share of the bank is stagnant. This shows a lack of hard-core brand loyal customers.
Efforts should be made to lead the consumers to this level of loyalty so that more strong
work-of-mouth should be there.
SUGGESTIONS

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 Cooperative Bank to stay in the
competitive market if they adopt these.

More mass awareness campaigns should be organized in order to enhance market share of bank.
Customer’s satisfaction must be the top priority of the bank

I offer the following suggestions for further improvement in the performance of the ADCC Bank

so as to suit at level best as an efficient Leader Bank of the co-operative movement in Amravati a

District.

The Board of Directors constitutes the central pillar of management of the co-operative banks. So

it is better to have the mixture of both old and young Directors in the Board by ratio fifty-fifty as

the old provides experience and young injects dynamism. While selecting the members for

elections, the co-operators should take this rule in the interest of co-operative movement.

Similarly, no person can be elected after two terms (ten years) of Directorship.

This condition can be included in the Bye-laws of the Bank. This will reduce the unhealthy

competition and also it will allow the new co-operators in the Board of Directors.

1. Each and every employee should bring certain amount of deposits in the Bank. At the

same time they should make the loan business of certain amount to bring the income at least
 equal to their total annual salary.

2.The employees of the Bank should work not between 11 to 6 hours but they should work 9 to 6

hours allowing their more time for the working of Bank. The HDFC Bank, the ICICI Bank, the

UTI Bank have followed this practice. Further, some of the branches in the urban area should be

kept open even up to 10 p.m. at night. This will help to get the profit to the Bank.

3.The different schemes of the deposits should be made known to the public. The management

should give wide and house to house publicity in rural areas of the district through various

Medias about its deposits schemes. The deposit mobilization camps should be conducted.

Depending heavily on external borrowings is not a healthy sign.

4.The Bank should take efforts to develop agricultural practices in the district. The amount of

agricultural loan in the total loan amount seems very less. With a view to increasing the loan for

agricultural sector, first of all land leveling, irrigation should be done by the farmers. Thus land

improvement and land development loans should be given by the Bank.

5.The training of farmers for agricultural practices, training of fishermen for viable fishing,

processing and marketing needs to taken by the ADCC Bank. So that the demand for loan from

these sectors will increase.

6.The ADCC Bank should make an arrangement of co-operative training to their employees,

training to the Board of Directors and Chairmen of the member societies about the principles and

values, ethics in co-operatives. This will help to bring high moral among the co-operators. At

present the general public and even the members are regarding co-operatives as charitable

institutions, hence, the members should be made aware that the co-operatives are first
Commercial Organizations and hence they should first think of their own viability.

1. The banking practices need to be upgraded.

These banks should be linked with commercial banks on the basis of certain understanding in the

respect of interest charged from the borrowers, the verification of the same by the commercial

banks and the passing of the concessions to the priority sectors etc.

Encouraging them to avail of certain facilities from the banking system, including the RBI.

2. Bank should provide Lockers facility to their customers at all their braches.

Bank should provide Dmat accounts facility to their customers.

BIBLIOGRAPHY

Websites:- http://www.Amravati dcc.com

www.google.com

https://en.wikipedia.org/wiki/Cooperative_banking

https://blog.ipleaders.in/co-operative-banking/

https://www.esds.co.in/Amravati -dccb-case-study

Books:-
 Co operative Banking & Credit Societes- A.T. Vaze for Government Diploma in Co
operation & Accountancy.

 History, Principles and Management in co operation – Prof.Kulkarni, Amol Mahabal,

 Arindam Haldar.- for Government Diploma in Co operation & Accountancy.

 Research Methodology for Business MCom Part-1 Sem II Michael Vaz, Arora Vaz,
Manan Prakashan.