Ratio Analysis RDCB

8/12/2019 Ratio Analysis RDCB

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INDEX

3

NO. PARTICULARS PAGE NO.

1. History of banin! in In"ia 1#

2. D$%$&o'($nt of banin! s$)tor 12

3. Str*)t*r$ of banin! 13

+. Co,o'$rati%$ s$)tor 1+

-. Or!anisation str*)t*r$ of )o,o'$rati%$ ban 1-

. Ty'$ of )o,o'$rati%$ ban 1

/. Ro&$ of )o,o'$rati%$ ban 1/


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HISTOR0 O ANING IN INDIA

As early as 2000 B.C., the Babylonians has developed a banking

system. There is evidence to show the temples of Babylon were used as banks. After a

period of time, there was a spread of irreligion, which soon destroyed the public sense

of security in depositing money and valuable in temples. The priests were longeracting as financial ! agents. The "omans did minute regulations, as to conduct

private banking and to create confidence in it. #oan banks were also common in

"ome. $rom these the poor citi%ens received loans without paying interest against

security of land for & or years.

'uring the early periods, although private individuals mostly did the

banking business, many countries established public banks either for the purpose of

facilitating commerce or to serve the government.

(owever upon the revival of civili%ation, growing forced the issued in

the middle of the )2thcentury and banks were established at *enice and +eneva. The

bank of *enice established in ))! is supposed to be the most ancient bank.

-riginally, it was not a bank in the modern sense, during simply an office for the

transfer of the public debt.

Again the origin of modern banking may be farced to the money

dealers in $lorence, who received money on deposit and were lenders of money in

the )th century and also in )&, the business of banking was carried on by

drapers of Barcelona.

+


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/n /ndia as early as the *edic period, banking in most crude from

eisted. The books of 1anu contain reference regarding deposit, ledges policy of

loans, and rate of interest. True, the banking in these days largely mint money

lending and they did not know the complicated mechanism of modern banking.

This is true not only in the case of /ndia but also of other countries.

Although, the business of banking is as old as authentic history, banking

institutions have since than changes in character and content very much. They

have developed from a few simple, operations involving the satisfaction of a few

individual wants to the complicated mechanism of modern banking, involving the

satisfaction of the capital slowly seeking employment and thus proving the very

life blood of commerce.

-


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DE4ELOP5ENT O ANING SECTOR

$inancial system of any country consists of speciali%ed and non

speciali%ed financial institutions, of organi%ed and unorgani%ed financial markets,

of financial instruments and services that facilitate transfer of funds. The word

3system4 in the financial system implies a set of comple and closely connected

and interlinked institutions agent5s practices, markets, transactions, claims and

liabilities in the economy.

Banking in /ndia has its origin as early as the *edic period. /t is

believed that the transition from money lending to banking must have occurred

even before 1anu, the great (indu 6urist, who has devoted a section of his work to

deposits and advances and laid down rules relating to rates of interest.

The 3+eneral Bank of /ndia4 was the first 6oint stock bank to be

established in the year )78 the other which followed, were the 3Bank of

(industan4 and the 3Bengal Bank4. The three banks established 3 Bank of Bengal4

in )70, the 3Bank of Bombay4 in )70 and the 3Bank of 1adras 3in )7&. These

three bank amalgamated in )20 and new bank the 3/mperial bank of /ndia4 was

established on 2th9anuary )2). :ith the passing of the 3;tate Bank of /ndia4

Act in )!! the undertaking of the 3/mperial Bank -f /ndia4 was taken over by the

newly constituted 3;tate Bank -f /ndia4. The 3"eserve Bank -f /ndia4 as the

central Bank of Country was created in )&! by passing 3"eserve Bank of /ndia4

Act )&. A number of banks with /ndia management were established in the


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country namely 3un6ab


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CO,OPERTI4E SECTOR

The co=operative banking sector bin /ndia compressing urban

banks and rural cooperatives banks such as ;tate Cooperative banks and districts

central cooperative banks has an etensive branch network and reach in the remote

areas smaller as compared to scheduled commercial banks, cooperative banks

constituted an important segment o the /ndian banking system and have

traditionally played an important role in creating banking habits among the lower

and middle income groups and in strengthening the rural credit system.

D$finition6,

7Co,o'$rati%$ is for( of or!ani8ation 9:$r$ in '$rsons %o&*ntary

to!$t:$r as :*(an on basis of $;*a&ity for t:$ $)ono(i) int$r$st of

t:$(s$&%$s.?ual voting rights

;ervice 1otive

=


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Organizational

structure of

co-operativebanks

State

co-operative

bank

District

co-operative

banks

Primary

co-operative

banks

Organizational structure of co-

operative !anks

>


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T0PES O THE CO,OPERTI4E ANS

Stat$ Co,o'$rati%$ ans 6, The ;tate co=operative bank is a federation of central co=

operative banks and acts as a watchdog of the co=operative banking structure in

the ;tate. /ts funs are obtained from share capital, deposits, loans and overheads

from the reserves Bank of /ndia. The ;tate C-=operative Banks lend money to

Central Co=operative bank and primary societies and not directly to framers.

Pri(ary Co,o'$rti%$ Cr$"it So)i$ti$s 6, The rimary cooperative credit society is an associations of

borrows and non=borrowers residing a particular locality. The funds of the

society and derived from the share capital and deposits of members and loans

from Central Co=operative Banks. The borrowing power of the members as well

as of the society is fied. The loans are given to members for the purchase of

cattle, fodder, fertili%er, pesticides, implements etc.

C$ntra& Co,o'$rati%$ ans 6, There are federations of primary credit society in a district and are of

2 type5s those having membership of rimary societies only those having a

membership of societies as well as individuals. The funds of the bank consists

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of share capital, deposits , loans and overdraft from the ;tare Cooperative banks

and 6oin stocks .theses banks finance member societies within the limit of the

borrowing capacity of societies within the limits of the borrowing capacity of

societies. They also conduct all the business of a 6oint=stock bank.

RDCis district level co=operative bank working successfully to

serve their customers.

ROLE O CO,OPERTI4E ANS

"ole of the co=operative banks play an important role in the economic

development of the country in rural areas they have touched the lives of agricultural

and small artists. /n urban areas they help the small sector in a big way. (owever,

over the years they have become weak. :ith a view to grow in a competitive world

they to re=oriented, re=focus and adopt technology to serve their clement with

tailor=made new products coupled with professionali%ation. At the same time free

them from the political interference as well as dual controls. $ocus on enhancing co=

operative spirit for economical development. /t is high time to bring the benefits of

the technology revolution to co=operative sector to enhance their efficiency and

bring in effective cost=saving.

/f the government and "B/ take right decision towards ushering in

vibrant co=operative movement, it is certain that co=operative movement in the

ensuring 2)stcentury will emerge as a strong powerful force of our economy. /n this

connection, we can echo the voice of the

7If )o,o'$rati%$ fai&s? t:$r$ 9i&& fai& t:$ b$st :o'$ of In"iamployees and ;takeholders

4ALUES

7To!$t:$r B$ Pros'$r

eople are our most important asset. At Cooperative you will find modern facilities

combined with old=fashioned=courtesy. :e like to think of our customers as friends.

:e feel that the warm smile of a teller or the helpful suggestion of a customer

service representative is what keeps customers coming back.

1/


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TRAINING CENTER

1=


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PROILE O THE AN

RANCH NETBORS

1>

Na($ of t:$ Co('any 6 "a6kot district Co=-perative Bank #td.

0$ar of $stab&is:($nt 6 )!

A""r$ss 6 "a6kot district Co=-perative Bank #td.

39illa Bank Bhavan4,

Dasturba "oad,

"a6kot E &8000).

P:on$ No. 6 027)=22&)8!0=!)=!2=!2.

R$!ist$r$" Offi)$6 "a6kot district Co=-perative Bank #td.

39illa Bank Bhavan4,

Dasturba "oad,

"a6kot E &8000).

R$!istration No.6 20F)!

B$bsit$6 www.RDCbank.in

E,(ai& A""r$ss6 infoGRDCbank.in

or( of or!ani8ation6 Co=-perative #td.Borin! Days 6 1onday to ;aturday.

Ti(in! 6 )0F&0 to !F&0.

B$$&y Off6 ;unday.

r$a 2F00 to 2F&0

ran):$s 6 )&) Branches

A))o*ntin! 0$ar6 )stApril to &)st1arch

A*"itor ".'.;hah

A))o*ntants B.1.;angani.
http://www.rdcbank.in/http://www.rdcbank.in/http://www.rdcbank.in/http://www.rdcbank.in/mailto:[email protected]:[email protected]:[email protected]://www.rdcbank.in/mailto:[email protected]


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resently the bank has been licensed )&) branches by the "B/. RDC

bank is taking greatest care to ensure that each branch is a compressive reflection

of the brand. All branches are fully computeri%ed.

;trategically located, designed and e?uipped to consistently deliver a

new Eage branch banking eperience. All the branches are very well managed by

well trained staff and maintain the reputation of the bank. "ecently RDCbank has

made reserve of "s ! crores for the development of the )or$ banin! syst$(.

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E0 INDICATORS O THE AN

R*'$$s in &a)s

Parti)*&ar 1>>1,1>>2 1>>>,2### 2##/,2##=

;hare capital 87) )0)8 2!)!

"eserve @ other funds )) !07) )07!7

'eposits )2)! !)!22 72))

/nvestments 78 &)!02 88!0


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ACHIE4E5ENTS O THE AN

T(> C>"T/$/CAT> A:A"'>' BH B>;T >"$-"1/' BH B>;T >"$-"1/


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THE CERTIICATE ABARDED 0 NAARD OR THE EST

PEROR5ING DCC IN THE STAT O GUFARAT

OR THE 0EAR 1>>>,2###

T(> C>"T/$/CAT> A:A"'>' BH B>;T >"$-"1/


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T(> C>"T/$/CAT> A:A"'>' BH B>;T >"$-"1/


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OTHER ACHIE4E5ENT

Bank is paying maimum dividend according to the previous of the act,

since last )! years

;ince last ) years Bank is maintaining first rank in +u6arat state for best

recovery performance.

All )&) Branches (.-. are fully computeri%ed

#ast && year5s bank is obtaining Audit class 3A4

Bank has obtained loans of "s. 78 crores

This bank is the first to launch 31ahalmi ;elf (elp credit Card4

scheme for the members of self help groups with the motto getting loan

smoothly from the bank.

Bank is first in /ndia for launching 3;mart Dishan Credit4 from year 200=

0! as a additional facility of D.C.C. holder.

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3 0EAR ALANCE,SHEET

2

PRATICULAR 5ar,#= 5ar,#> 5ar,1#

LIAILITIES

SHARE CAPITAL 25,74,45,677 27,44,77,350 30,71,45,150

RESER4E UND 1,20,48,89,067 1,29,57,09,905 1,37,10,71,792

DEPOSITE 10,77,89,24,476 12,43,66,11,882 14,55,98,67,705

STATE PATNERSHIP

UND AC

5,98,456 3,18,460 1,07,500

ILL OR COLLECTION 2,34,56,456 1,80,38,318 1,20,42,570

ADFUST5ENT 4,56,78,890 3,88,63,523 3,36,24,503

RESER4E OR INTEREST 3,98,89,568 3,81,60,936 3,79,18,410

LIAILITIES 4,56,98,76,208 3,34,98,73,500 1,72,33,69,200

AN INTEREST 31,47,598 27,01,172 23,34,857

5E5ER COLLECTION

CONTRACT

5,01,48,789 3,68,86,849 3,28,52,870

PA0ALE INTEREST 1,26,78,854 1,76,96,695 2,03,29,699OTHER

RESPONSILITIES

14,27,09,675 16,05,89,397 16,24,83,537

P @ L AC 4,98,25,000 ,!,00,000 )),80,70,000

TOTAL 7,47,82,06,685 15,10,39,85,187 1-?2/?-3?+?/>3


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2/

PRATICULAR 5ar,#= 5ar,#> 5ar,1#

ASSETS

CA;( 27,86,74,890 30,27,56,416 35,57,60,597

BA";(/ $I" '>


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3 0EAR P @ L AC

PARTICULAR 5ar,#= 5ar,#> 5ar,1#

INCO5E

/">;T -< /


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EXPENSES

/">;T -< '>-;/T 72,86,75,739 82,80,40,612 85,95,70,450

;A#A"H @ .$ 22,45,56,782 25,51,78,162 35,35,29,198

'/">CT-" $>>; 5,27,292 5,99,196 6,61,085

">TC.

1,68,31,987 1,91,27,259 2,17,60,312

#A: C("+>; 11,08,771 9,89,974 5,86,203

T>#>(-

B/##

41,51,400 37,06,607 30,85,461

AI'/T-"; $>>; 36,75,206 32,81,434 16,19,339

'>"/C/AT/-< 1,88,48,049 1,68,28,612 1,57,19,231

;TAT/-M>; 1,62,96,821 1,85,19,115 10,72,86,210

-T(>" "-*/;/-< 25,44,59,725 22,71,96,183 8,11,14,620

'/$A"' TAM 29,33,920 26,19,572 ----

"-$/T @ #-;; ALC 13,50,00,000 13,50,00,000 13,50,00,000

TOTAL 1,32,94,05,848 1,51,06,88,463 1,58,35,31,297-

2>


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3#


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INDEX

31

NO. PURTICULAR

) /ntroduction

2 +ross rofit "atio

& ?uity Capital "atio


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INTRODUCTION

inan)ia& '$rfor(an)$ ana&ysis

$inancial performance analysis Jalso referred to as financial statement analysis or

accounting analysisK refers to an assessment of the viability, stability andprofitability of abusiness, sub=business orpro6ect.

/t is performed by professionals who prepare reports using ratios that make use of

information taken from financial statementsand other reports. These reports are

usually presented to top management as one of their bases in making business

decisions. Based on these reports, management mayF

Continue or discontinue its main operation or part of its business

Ac?uire or rentLlease certain machineries and e?uipment in the production

of its goods

/ssue stocksor negotiate for a bank loanto increase its working capital

1ake decisions regarding investing or lending capital

-ther decisions that allow management to make an informed selection onvarious alternatives in the conduct of its business.

32
http://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Projecthttp://en.wikipedia.org/wiki/Financial_statementshttp://en.wikipedia.org/wiki/Stockshttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Working_capitalhttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Projecthttp://en.wikipedia.org/wiki/Financial_statementshttp://en.wikipedia.org/wiki/Stockshttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Working_capital


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5$t:o"s of a''raisin! finan)ia& '$rfor(an)$

The methods consists of a study of relationship and trends to determine whether

or not the financial position and results of operations as well as the financial

progress of the company are satisfactory or unsatisfactory. The analytical methods

or devices, listed below are used to ascertain the relationships among financial

statements items. The fundamental ob6ective of any analytical method is to

simplify or reduce the data under review to more understandable term.

The Analytical methods and devices used in analy%ing financial performance are

as followF

)K Comparative ;tatements

2K Common si%e ;tatements

&K Trend "atios

K Cash $low ;tatements

!K "atio Analysis

Ratio ana&ysis

According to 9. BATTH 3The term ratio is used to describe significant

relationships which eist between figures shown in balance sheet, @ # account,

and budgetary control system or in any other part of the accounting organi%ation.4

"atio analysis is one of the techni?ues of financial analysis where ratios are used

for evaluating the financial condition and performance of a firm. Analysis and

interpretation of various accounting ratios gives a skilled and eperienced analyst,

a better understanding of the financial condition and performance of the firm than

what he could have obtained only through a perusal of financial statement. "atios

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are relationships epress in mathematical terms between figures which are

connected with each other in some manner. "atios normally pinpoint a business5

strength and weakness in two waysF

"atios provide an easy way to compare present performance with past.

"atios depict the areas in which a particular business is competitively

advantaged or disadvantaged through comparing ratios to those of other

businesses of the same si%e within the same industry.

C&assifi)ation of ratio

"atios can be classified into different categories as follows

J)KTraditional classificationJ2K$unctional classification

1 Tra"itiona& )&assifi)ation

The traditional classification has been on the basis of the financial statement to

which determinants of a ratio belong. -n this basis the ratios could be classified

asF

rofit @ loss account ratio

Balance sheet ratio

Composite ratio

2 *n)tiona& )&assifi)ation

3+


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"atios are grouped in accordance with certain tests. -n the basis, there are four

categories of ratios.

Profitabi&ity Ratio

rofitability "atios gives some yardstick to measure the profits in relative terms

with reference to sales, assets or capital employed. These "atios highlight the end

result of business activities. The main ob6ective is to 6udge the efficiency of the

business.

inan)ia& Ratio

These "atios are calculated to 6udge the financial position of the organi%ation

from short term as well as long term solvency point of view. Thus it can be sub

divided intoF ;hort term solvency "atio J#i?uidity "atioK

#ong term solvency "atio JCapital structure "atioK

T*rno%$r Ratio or A)ti%ity ratio

These "atios are used to measure the effectiveness of the use of assetsLcapital inthe business.

5ar$t T$st Ratio

These are of course, some profitability "atios, having a bearing on the market

value of the shares.

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I('ortan)$ of ratio ana&ysis

The ma6or benefits arising from ratio analysis are as followsF

"atio analysis is a very powerful analytical tool useful for measuring

performance of an organi%ation.

"atio analysis concentrates on the inter=relationship among the figure

appearing in the financial statements.

"atio analysis helps the management to analyses the past performance of the

firm and to make further pro6ections.

"atio analysis allow interested parties to make evaluation of certain aspects of

the firm5s performance as given belowF

;hare holders and prospective investors will analy%e ratios for taking

investment and disinvestment decisions.

Bankers who provide working capital will analy%e ratios for appraising

the creditworthiness of the firm.

The financial institution that provides long=term debt will analy%e ratios

for pro6ect appraisal and debt servicing capacity of the firm.

The financial analysts will analy%e ratios for making comparisons and

recommending to the investing public.

The credit rating agencies will analy%e ratios of a firm to give the credit

rating to the firm.

The government agencies will analy%e ratio of a firm for review of its

performance.

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A"%anta!$s of ratio ana&ysis

"atio analysis simplifies the comprehension of financial statements.

"atios tell the whole story of changes in the financial condition of the

business.

"atio analysis provides data for inter=firm comparison. "atio highlights

the factors associated with successful and unsuccessful firms. They also

reveal strong firms and weak firms, over=valued and under=valued firms.

"atio analysis also makes possible comparison of the performance of the

different divisions of the firm. The ratios are helpful in deciding about

their efficiency or otherwise in the past and likely performance in the

future

"atio analysis helps in planning and forecasting. -ver a period of time a

firm or industry develops certain norms that may indicate future success

or failure. /f relationship changes in firm5s data over different time

periods. The ratios may provide clues on trends and future problems.

Li(itations of ratio ana&ysis

"atios are useful in 6udging the efficiency of the business only when they

are compared with the past result of the business or with the results of a

similar business.

"atios are only indicators they cannot be taken as final regarding good

or bad financial position of the business. -ther things have also to be

seen.

3/


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Companies made manipulation of account in a way so as to conceal vital

facts and present financial statement in a way to show better position

than what it actually is. -n account of such a situation presence of a

particular ratio may not be a definite indicator of good or bad

management.

$inancial analysis based on accounting ratios will give misleading results

if the effects of changes in price level are not taken in to account.


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CHART O GROSS PROIT RATIO

Int$r'r$tation6

The higher will be ratio better will be the profitability of bank. /n order

to have idea of profitability, the gross profit ratio and net profit ratio may be

simultaneously considered. +ross profit of the bank has decreased in 200 but

after that increase in 2007and 200 but in the recent year it has decreased.

3>

0$ar 2##-,# 2##,#/ 2##/,#= 2##=,#> 2##>,1#

Gross Profit )&! )2 28 &8)0 2)82

Tota& In)o($ 7& 7 87 ))22 ) !)) )!7&8

Ratio )8.& ).8 22.2& 2&.7 )&.8!


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NET PROIT RATIO

The ratio is valuable for the purpose of ascertain the over=all

profitability and efficiency of business. This ratio is also known as net margin. /t

measures the relationship between net profits and income of bank. /t can be

calculated as

2##>,1#

N$t Profit

Aft$r Ta

)08! ! 2)00 )&!0 )&!0

Tota& In)o($ 7& 78 ))2&0 )!)08 )!7&8

Ratio )2.8 7.8 )7.0 7.& 7.!2


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CHART O NET PROIT RATIO

Int$r'r$tation6

The average net profit of "'C is )).!. The highest net profit of

"'C is )7.0 in the year 2007. (igh net profit ratio would ensure ade?uate

returns to the owners but in the net year it has gone down due to recession in the

market. /n the year 200 +ross rofit "atio is 2&.7 while


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RETURN ON TOTAL ASSETS RATIO

The profitability of the firm is measured by establishing relation of net

profit with the total assets of the organi%ation. This ratio indicates the efficiency

of utili%ation of assets in generating revenue.

/t reveals the earning capacity on the eisting assets, as well as the

cause of increase in the ratio, due to increase in profit or due to decrease in

investments. This ratio can be epressed as

"eturn on total Assets O


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CHART O RETURN ON TOTAL ASSETS

Int$r'r$tation6

/f this ratio is low, it indicates that the investment in fied assets is

more than what is necessary and must be reduced. /n year 200, 200 and 20)0

the position of bank is not satisfactory but in the year 2008 and 2007 it has gone

up it means return on assets has increased.

+3


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CURRENT RATIO

The main ?uestion this ratio addresses isF P'oes your business have

enough current assets to meet the payment schedule of its current debts with a

margin of safety for possible losses in current assets, such as inventory shrinkage

or collectable accountsQP A generally acceptable current ratio is 2F). But whether

or not a specific ratio is satisfactory depends on the nature of the business and the

characteristics of its current assets and liabilities. The minimum acceptable

current ratio is obviously )F), but that relationship is usually playing it too close

for comfort.

Current "atio O Current Assets

Current #iability

J"upees in lacsK

++

0$ar 2##-,# 2##,#/ 2##/,#= 2##=,#> 2##>,1#

Tota& C*rr$nt

Ass$ts

2)80 )2 80 72878 7)

Tota& C*rr$nt

Liabi&ity

))0 &) &!0& && )2&

Ratio ).72 ).!! 2.02 2.0 !.08


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CHART O CURRENT RATIO

Int$r'r$tation6

+enerally 2F) is considered ideal for a concern. (ere in the year 2007

and 200 is almost near to 2F) but in the year 20)0 it was !.08F) which is much

higher than the ideal it may have been affected profitability of the bank.

+-


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UIC RATIO

Nuick "atio is sometimes called the Pacid=testP ratio and is one of the

best measures of li?uidity. /t is figured as shown belowF

The Nuick "atio is a much more eacting measure than the Current

"atio. By ecluding inventories, it concentrates on the really li?uid assets, with

value that is fairly certain. /t helps answer the ?uestionF P/f all sales revenues

should disappear, could my business meet its current obligations with the readily

convertible R?uickS funds on handQP

An acid=test of )F) is considered satisfactory unless the ma6ority of

your P?uick assetsP are in accounts receivable, and the pattern of accounts

receivable collection lags behind the schedule for paying current liabilities.

Nuick "atio O Nuick Assets

Nuick #iabilities

J"upees in lacsK

+

0$ar 2##-,# 2##,#/ 2##/,#= 2##=,#> 2##>,1#

*i) Ass$ts 2)80 )2 80 72878 7)

*i) Liabi&ity ))0 &) &!0& && )2&

Ratio ).72 ).!! 2.02 2.0 !.08


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CHART O UIC RATIO

Int$r'r$tation6

Nuick "atio of the "'C Bank is very high it might affect profitability

of the Bank. /t has increased during last three year. /n the 200!=2008 and 2008=

200 it was near to the ideal ratio.

DET EUIT0 RATIO

+/


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'ebt >?uity "atio is the relation between borrowed fund and owners5

capital in a firm, it is also known as eternal internal e?uity ratio. The 'ebt

>?uity "atio is used to measure the soundness of long term financial policy of the

business.

'ebt >?uity "atioO 'ebt

;hare holders5 fund

J"upees in lacsK

CHART O DET EUIT0 RATIO

+=

0$ar 2##-,# 2##,#/ 2##/,#= 2##=,#> 2##>,1#

D$bt ))0 &) &!0& && )2&

E;*ity )087& ))7 )28& )!02 )872

Ratio ).)2 2.87 2.2 2.)& ).0&


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Int$r'r$tation6


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BORING CAPITAL TURNO4ER RATIO

This ratio indicates the etent of working capital turned over in

achieving income of the firm.

/t is a ratio epressing relationship between income and working

capital of company. /t is an indication of management efficiency to operate the

business with sufficient success. /f income is less than working capital then it

cannot run successfully

:orking capital ratio can be calculated as underF

:orking capital turnover ratio O Total income

:orking capital

.

J"upees in lacsK

CHART O BORING CAPITAL TURNO4ER RATIO

-#

0$ar 2##-,# 2##,#/ 2##/,#= 2##=,#> 2##>,1#

Tota& In)o($ 7& 78 ))2&0 )!)08 )!7&8

Borin!

)a'ita&

& )2! )77 )70 )7&2

Ratio .0& .) .!! 7. 7.8


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Working capital turnover ratio

0

1

2

3

4

5

6

7

8

9

10

2006 2007 2008 2009 2010Year

Workingcapitalturnover

Ratio

Working

capital

turnover ratio

Int$r'r$tation6

This "atio shows the number of times the working capital is turned over

in a stated period. The "'C Bank has very good :orking capital turnover ratio

and it has been increasing constantly for last four year.

RETURN ON EUIT0 CAPITAL

-1


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/t is the "atio epressing relationship between profit after ta and

e?uity share capital higher the return better will be the reward for shareholders.

"eturn on e?uity capital O AT )00

>?uity share capital

J"upees in lacsK

CHART O RETURN ON EUIT0 CAPITAL

-2

0$ar 2##-,# 2##,#/ 2##/,#= 2##=,#> 2##>,1#

PAT )08! ! 2)00 )&!0 )&!0

E;*ity s:ar$

)a'ita&

2)&! 228 2!)! 2! &0)

Ratio .77 &.) 7&.! .)7 &.8


53/66

Return on equity capital

0

10

20

30

40

50

60

70

80

90

2006 2007 2008 2009 2010Year

Returnonequitycapita

l

Return on

equity

capital

Int$r'r$tation6

"eturn on e?uity capital has decreased consistently from 200=2007 due

to decrease in profit or increase in e?uity share capital.

E5LO0EES OR RANCH RATIO

-3


54/66

rofit per branch O profit = 10.23

lakh branch

rofit per employee Oprofit =1.75 lakhEmploy

Capital employeed per branch O C.>

Employ

= 6 lakh

-+


55/66

SBOT ANAL0SIS

--


56/66

Str$n!t:s

/t has good market share.

Uero


57/66

/ntroduction of various retail services. After getting scheduled status we may apply multi state bank to

>pand their Business.

Bank can perform marketing activities by media.

T:r$ats

+lobal banks are coming in /ndia

The other distractive players are much aggressive.

Changes in government rules and regulation. Changing interest rates

-/


58/66

-=


59/66


60/66

INDINGS

The basic motto to formulate co operative banks was to combat the

problems of rural farmers. Because 0 of the total population in /ndia is

residing in rural sector.

The "a6kot district co=operative bank is an agricultural bank and it is also

based on the development of farmers and agricultural development. And

also our economy is also based on development of villages.

$armers are needs to the money for increasing their farm production at

different section like seeds new medicines fertili%ers and new

technology. That all the loans are provided by 'istrict Co=-perative

Banks, commercial and citi%en bank.

Their operations are restricted to a particular state in case of a state Ape

bank, a particular district in case of district co operative bank and to a local

area in case of primary co operative society

#


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The local intensity of the bank in its customer centric approach, hassle free

eecution of the decision @ technologies are their main difference from

commercial banks, also high level of commitment at all levels of

management @ self committed ground level staff makes them different

from other commercial banks.

;trategically located, designed and e?uipped to consistently deliver a new

Eage branch banking eperience. All the branches are very well managed

by well trained staff and maintain the reputation of the bank.

+ross profit of the bank has decreased in 200 but after that increase in

2007and 200 but in the recent year it has decreased due to global melt

down but it maintain its net profit by efficiently reducing its epenses.

/n the year 200 +ross rofit "atio is 2&.7 while


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'ebt e?uity ratio is fine during 200, 2007 and 200 but it is not

satisfactory in the year 2008 and 20)0.

"'C bank has used its working capital ecellently and working capital

ratio has been increasing for last three years.

SUGGESTIONS

/n the year 2007=200 +ross rofit "atio is 2&.7 while


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3


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ILIOGRAPH0

oos

'onald ". Cooper @ amela ;. ;chindler, Business "esearch 1ethods,

The 1cgraw (ill Companies

The company accounts, cost and management accounting, the institute of

company secretaries of /ndia, 200.

1.


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The /ndian 6ournal of commerce J?uarterly publication of /ndian

commerce associationK

The /I 6ournal of management "esearch.

Ann*a& R$'orts

Annual "eports of the "'C Bank of 200!=2008, 2008=200, 200=2007,

2007=200, and 200=20)0.

-


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BELIOGRAPH0

B$bsit$s

www.rbi.org.in

www.rdcbank.in

www.banknetindia.com

www.mbaknowledgebase.com

www.wikipedia.com

www.google.com

www.nabard.org
http://www.rbi.org.in/http://www.rdcbank.in/http://www.banknetindia.com/http://www.mbaknowledgebase.com/http://www.google.com/http://www.rbi.org.in/http://www.rdcbank.in/http://www.banknetindia.com/http://www.mbaknowledgebase.com/http://www.google.com/

Documents

Ratio Analysis RDCB