Description
PROJECT ON BANK OF RAJASTHAN
1
%
ACKNOWLEDGEMENT
I would like to express my gratitude to almighty God without whose blessing I wouldn’t have been able to take initial step in this research. Words are insufficient to express my gratitude to Mr. ushil Mittal my industry guide for his guidance and support in preparing this pro!ect. I would also like to thank my faculty guide whose support and suggestions has helped me to complete this pro!ect successfully. My sincere thanks to all those people who gave me their valuable time and input by filling my "uestionnaires. #inally I would like to thank my parents$ family members and friends for their support.
0
DECLARATION
I hereby declare that the work presented in the pro!ect report$ titled &'etail (anking ) *valuation +f ,he #inancial -erformance +f (ank +f 'a!asthan’ was carried out by me as a part of M(. curriculum during / weeks summer training program in the 0rd semester. ,he report is an authentic record of my work carried out under the guidance of Mr. ushil Mittal in (ank +f 'a!asthan. It is further declared that the report has not been submitted earlier for any other degree or diploma.
:
PREFACE
India is a developing country and we all know that banking sector plays a very important role. In development with the increasing use of banking and finance in every field$ new trends in their technology and modern use are being evolved day to day to meet the re"uirements. Infact 1(.23I2G4 has become the need of today. ,he purpose of -'+5*6, '*-+', is to expose the students in the market and in the field of banking$ finance and investments and to develop the ability in the students to deal with all types of customers. -reparing pro!ect report in the summer vacations and under going the summer training is the indispensable part of the college period. It provides the opportunity to review what we have gained in the training period and also provides the way to convey the knowledge and ideas to others. ,he present pro!ect provides the information on the &(.23 +# '.5. ,7.2’ 8earning is not possible in solitude and has to have the support and able guidance of some people around us in various roles and capacities. ,he satisfaction and euphoria that accompanies the successful completion of any task would be incomplete without the mention of the people who made it possible because success is the epitome of hard work$ undeterred missionary 9eal$ fast determination$ and consideration. ,herefore$ we consider it a pleasant duty to express our heartiest appreciation$ gratitude$ and indebtedness to our pro!ect guide Mr. ushil Mittal for his keen interest$ sincere extortion$ invaluable and pain taking excellent guidance$ continuous calm endurance$ inspiration and encouragement during each phase of the present pro!ect.
C
EXECUTIVE SUMMARY
,he (ank was successful in establishing a new identity in the market in a short span of time. ,he (ank once again met with considerable success over the past year and achieved all its key ob!ectives. ,his encouraging performance not only underscored the sustain ability of the (ank; s high tempo of growth $ but also helped to move closer to its ob!ective of being one of the more customer % crores. ,he (ank has developed a branch network which is built on customer>1$ under the chairmanship of M 2arasimham$ a committee was set up by his name which worked for the liberali9ation of banking practices. ,he country is flooded with foreign banks and their .,M stations. *fforts are being put to give a satisfactory service to customers. -hone banking and net banking is introduced. ,he entire system became more convenient and swift. ,ime is given more importance than money. (anking industry over the 1C years from 1>A> to 1>>:. ,he banking industry was transformed during that period$ according to the paper Fp. 1%AG$ by 1the massive reduction in the number of banking organi9ationsL the significant increase in the number of failuresL the dramatic rise in off/=s to the relaxation of branching restrictions later in the decadeL and F%G 6learly identifiable innovations in technology and applied finance$ including improvements in information processing and telecommunication technologies$ the securiti9ation and sale of bank loans$ and the development of derivatives markets. +ther research would later confirm the paper’s assessments and its explanation of the course of events in the banking industry over the period 1>A>N1>>:.
10
+ver the two decades 1>/:N%==0$ the structure of the E. . banking industry indeed underwent an almost unprecedented transformationOone marked by a substantial decline in the number of commercial banks and savings institutions and by a growing concentration of industry assets among a few do9en extremely large financial institutions. ,his is not news. .s mentioned above$ the decline in the number of banking organi9ations has been ongoing for more than two decades and has been well documented in the literature.0 2evertheless$ a brief overview will serve to clarify both the scope of the decline and the increasing concentration of assets among the nation’s largest banking organi9ations
1:
.t year/:$ there were 1C$=/: banking and thrift organi9ations Fdefined as commercial bank and thrift holding companies$ independent banks$ and independent thriftsG. (y year: percent of banking organi9ations
2. Futu & "# t/& $ndust !'(
,he burden of reporting and other regulatory re"uirements will fall heavily and disproportionately on small banks unless remedial action is taken. #urther advances in information technology will permit the development of new products$ (.23$ and risk< management techni"ues but may also pose important competitive and supervisory issues. 2onbank entities will continue to offer bank>A. • ,he (ank started its first .,M services in the series of Ruality services to its customers at 6< cheme 5aipur branch from 1st 5uly 1>>/. #or ?C years$ it has been our endeavor to achieve the growth on consistent basis Fsee ,ableG. With :?0 online branches nationwide the (ank is the largest private sector.
1A
Ou G !"#$ !%& F'%& D&()*&+, -R+.'. M'//'!.+0 D&(. 12 D&5!+'#+ A*%).(&+ C)5'#)/ R&+& %&+ N!. !6 B ).($&+
*including Capital Reserve The Central Office of the bank is operating in its own building located at C-3, Sardar Patel C- Sche!e, "aipur 3#$##% &Ra'asthan, (ndia)* arg,
D&(. 32 1>?.=C 11C.:: %.== %.01 A=
D&(. 82 1%C?.:/ A%=.=? 0.== /.:% %1=
M) . 42 A%=:.0> 0?:%.01 1A.C= /%.CC %A:
M) . 2222 0%:%1.=% 1A%/:.:1 ?%A.?% 1>0?.10 0=?
M) . 2224 10/:>0.:A A:00/.A? 10::.C/ /=:1.C? :?0
C0.?0 %?.00 =.>% =./= 0?
P &s&nt St)tus "# t/& O +)n$3)t$"n'(
,he population groupwise classification is given hereunder M
(ranches Fas onG T 6ategoryS 01.=0.%== / Metropolitan 1:% Erban emi$ (ank of 'a!asthan had a network of :?0 branches and 111 automated teller machines in India.
1>
,EBI +# *8*6,*B '* *.'67 -'+(8*M
'* *.'67 M*,7+B+8+GI
.ll the findings and conclusions obtained are based on the survey done in the working area within the time limit. I tried to select the sample representative of the whole group
%= during my !ob training. I have collected data from people linked with different profession at .mbala
'* *.'67 -8.2M
P &%$.$n) ! In,&st$+)t$"n, In which data on the situation surrounding the problems shall be gathered arrive at V ,he correct definition of the problem. V .n understanding of its environment. E5-%" )t" ! Stud!' ,o determine the approximate area where the problem lies.
'* *.'67 B* IG2'
'esearch was initiated by examining the secondary data to gain insight into the problem. (y analy9ing the secondary data$ the study aim is to explore the short comings of the present system and primary data will help to validate the analysis of secondary data besides on unrevealing the areas which call for improvement.
B*J*8+-I2G ,7* '* *.'67 -8.2M
,he data for this research pro!ect has been collected through self .dministration. Bue to time limitation and other constraints direct personal interview method is used. . structured Ruestionnaire was framed as it is less time consuming$ generates specific and to the point Information$ easier to tabulate and interpret. Moreover respondents prefer to give direct answers.In "uestionnaires open ended and closed ended$ both the types of "uestions has been used.
6+88*6,I+2 +# B.,.'
1' S&2"nd) ! D)t)'
%1 It was collected from internal sources. ,he secondary data was collected on the basis of organi9ational file$ official records$ management books$ preserved information in the company’s database and website of the company. 2' P $.) ! d)t)' .ll the people from different profession were personally visited and interviewed. ,hey were the main source of -rimary data. ,he method of collection of primary data was direct personal interview through a structured "uestionnaire ) through telephonic conversation SAMPLING PLAN' ince it is not possible to study whole universe$ it becomes necessary to take sample from the universe to know about its characteristics.
?S)75/'.8 W
U.'#+,
Bifferent
professionals
6hartered
.ccountants$
,ax
6onsultants$ 8awyers$ (usiness Man$ -rofessionals and 7ouse Wives of .mbala
?S)75/& W T&($.'9u&, 'andom ampling. ?R&+&) W ($ I.+# u7&.#, tructured Ruestionnaire. ?C!.#)(# W M&#$!*, -ersonal Interview.
.
.M-8* IX*'
My sample si9e for this pro!ect was %== respondents. ince it was not possible to cover the whole universe in the available time period$ it was necessary for me to take a sample si9e of %== respondents.
RE* ,I+22.I'*
Bear respondent this "uestionnaire is meant for the purpose of research on the topic1'*,.I8 (.23I2G ) *J.8E.,I+2 +2 ,7* #I2.26I.8 -*'#+'M.26* +# (.23 +# '.5. ,7.24 for a continuous evaluation of summer internship as part of M(. FGG program of .IM,$3.E.3 Eniversity. It will be assured that the data collected will not be misused.
%%
2ame:------------------------2o:--------------------------
6ontact
R 1 What is your +ccupationQ
FaG (usiness FbG alaried FcG elf *mployed FdG +thers
R % What is your Monthly ,ransaction in your account Q
aG %% crores on 01st March %==/$ a growth of C%@. ,he segment constitutes %0@ of the (ank;s total loan portfolio on 01 March %==/ of which A>./0@ is secured and %=.1A@ comprises unsecured loans. 'etail loans are extended by the (ank through A= 'etail .sset 6entres F'.6sG in select cities of the country$ as also through the (ank;s branches in other cities and towns. ,he (ank;s strategy of focusing on the prime customer segments and staying away from small ticket loans$ and the deployment of robust credit and back. P)++ ;!!? .t the time of opening the account customers will be issued a pass book. ,he pass book will have the -hotograph of the account holder duly authenticated by the officer of the branch. In the case of illiterate customers$ alongwith -hotographs$ hisU her 8eftU right thumb impression will be obtained on the pass book as well as on the account opening form duly authorised by the concerned officer of the branch. 1=. C!//&(#'!. !6 C$&9u&+ aG,hird -arty 6he"uesM ,hird party che"ues drawn in favour of customer upto a value of 's.%C===U< F's. twenty five thousandG per transaction will allowed. bG+ut station che"uesM 2ormally collection of che"ues will not be encouraged in this account. 7owever$ no charges will be levied for instruments upto 's.%C==U< drawn on our branches. In case of instruments drawn on other banks
%> actual charges levied by other bank plus out of pocket expenses will be recovered. 11. A((!u.# (/!+u & ($) 8&+ 2il 1%. I++u& !6 P)< ! *& @ DD@ B).?& A+ ($&9u&+ C=@of charges as applicable in the case of normal ( account. 10. C$&9u& &#u . ($) 8&+ In case of che"ues deposited by customer in his account being returned unpaid$ charges as applicable in the case of normal ( account will be recovered. 1:. N!7'.)#'!. 6)('/'#< 2omination facility will be available as in case of normal ( account. 1C. G&.& )/ C!.*'#'!. If the conditions relating to Maximum (alance and total credits in '( .ccount opened by a customer are violated the account will cease to be a 2o< frill .ccount. #urther operations will be permitted only upon implementation of full 3I6 norms except for withdrawals of the entire balance for closure of the accountthrough account -ayees -ay order or Bemand Braft.
RA>BANK SA:ING ACCOUNT 'a!bank N avings -lus .ccount $ a uni"ue high end ( product for all individuals F5ointly or severallyG including professionals such as Boctor$ 8awyer$ 6..s.$ *xecutive working in M26$ oftware 6ompanies$ -ublic U -rivate ector and business people$ 7igh 2et Worth Individuals$ 6*+s$ I. and I- . M!.#$/< A%& )8& M'.'7u7 B)/).(& P '%'/&8&+, 1. #ree 8ife ,ime Bebit cum .,M 6ard a.2o 'enewal 6harges R+. 5222.22
0= b.#ree 6ash Withdrawal on (anks’ own .,Ms ) .,Ms of 6ash ,ree$ (i= crores towards commission on business booked. #rom .pril %==> ) onwards$ (ank will act as a 6orporate .gent for .JIJ. and It is expected that life insurance business will increase substantially. ,he (ank expects to receive handsome income by way of commission during current year.
B&)/#$ A*%'+! < S& %'(&+
,his service focuses on the 1 eriously 'ich4 segment and caters to all the banking and investment needs of a customer. .long with Mutual fund and (ond investments$ Mohur also offers investments in e"uity through 2on N Biscretionary -ortfolio Management services. Mohur aims at providing a one@.
CAPITAL MANAGEMENT
,he (ank believes in the continual enhancement of shareholder value and its capital management framework helps to optimi9e the use of capital by ensuring the most favorable allocation of capital through an appropriate mix of products and services. ,he (ank focused on developing an asset structure which was sensitive to the importance of enlarging the proportion of low risk weighted assets in order that capital is more efficiently deployed. Buring the year$ the (ank continued to attract investor interest from domestic and foreign institutional investors$ with a perceptible increase in trading volume and price. ,o augment capital for maintaining the momentum of business growth$ the (ank raised e"uity capital of 's. :$C0: crores in %==A
SCHEDULE –17:
BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
,he financial statements have been prepared on historical cost basis$ unless otherwise stated$ by following the going concern concept and are in accordance with statutory provisions. ,he accounting and reporting policies of the (ank used in the preparation of these financial statements conform to the statutory re"uirements$ the Generally .ccepted .ccounting -ractices prevailing within the banking industry in India F1Indian
C= G..-4G$ and the guidelines issued by 'eserve (ank of India F1'(I4G from time to time.,he preparation of financial statements re"uires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities Fincluding contingent liabilitiesG as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. #uture results could differ from these estimates. SIGNIFICANT ACCOUNTING POLICIES 1. 'evenue 'ecognitionM 1.1 Income and expenditure are generally recognised on accrual basis. In case of 2on -erforming .dvances and Investments$ such income is accounted for only on reali9ation in accordance with the guidelines issued by '(I. 1.% 7itherto$ the (ank recognised interest on matured term deposits at the time of renewal U withdrawal of the same. In pursuance of '(I circular B(+B.2o.8eg.(6.0:U=>.=A.==CU%==/$ the (ank has provided interest on outstanding matured term deposits as on 01st March %==> at the savings bank rate of 0.C=@ for the year. 1.0 In accordance with the guidelines issued by the '(I$ prior period disclosures are made in respect of any item which exceeds one percent of the total incomeUtotal expenditure as$ accounted for in the profit and loss account. %. InvestmentsM %.1 ,he investment portfolio of the (ank is classified in accordance with the 'eserve (ank of India F'(IG guidelines$ into 17eld for ,rading4$ 1.vailable for ale4 and 17eld to Maturity4 categories. ,hese are further identified as -erforming or 2on< performing as per Income 'ecognition$ .sset 6lassification and -rovisioning norms of '(I. 7owever$ for disclosure in the balance sheet$ these are classified under six groups as follows M < Government securities < +ther approved securities < hares < Bebentures and (onds < ubsidiaryUsponsored institution
C1 < +thers %.% (asis of 6lassificationM 6lassification of an Investment is done at the time of purchase into following categoriesM %.%.1 7eld to Maturity ,hese comprise of Investments which the bank intends to hold till maturity. %.%.% 7eld for ,rading ecurities which are held for resale within >= days from the date of purchase. %.%.0 .vailable for ale Investments which cannot be classified in the above two categories. %.0 ,ransfer of ecurities between categoriesM ,he transfer U shifting of securities between the three categories of Investments is accounted at the least of ac"uisition costU book value U market value on the date of transfer and the depreciation$ if any$ on such transfer is fully provided for. %.: JaluationM ,he valuation of Investments is made in accordance with the '(I guidelines. %.:.1 7eld to Maturity ,he Investments classified under this category are valued at ac"uisition cost. ,he excess of ac"uisition costUbook value over the face value is amortised e"ually over the remaining period of maturity. %.:.% .vailable for ale Investments under this category are valued scrip. Impairment of .ssets
CC ,he bank assesses at each balance sheet date whether there is any indication that an asset may be impaired. Impairment loss$if any$ is provided in the profit and loss account to the extent the carrying amount of assets exceeds their estimated recoverable amount. 1=. *arnings -er hare F1*- 4G (asic earnings per share is calculated by dividing the net profit or loss for the year attributable to e"uity shareholders by the weighted average number of e"uity shares outstanding during the year. hare as re"uired by .ccounting tandard %= 1*arning -er hare.4 11. egment 'eporting ,he bank had hitherto identified business segments into three broad categories namely treasury operations$ banking operations and others U residual. ,his was done on the basis of differences in the risk and reward in these three broad categories. ,reasury ,reasury includes the entire investment portfolio and also the dealing in Government ecurities and Money Market +perations. 6orporateUWholesale (anking .ll advances Ffunded and non exceeds 's.C 6rores or average annual turnover of last three years is 's.C= crores or more are classified under 6orporate U Wholesale (anking. 'etail (anking .dvances not classified under the 6orporate U Wholesale (anking segment are included in the 'etail (anking segment
C?
CA
C/
C6APTER(7
8ANALYSIS 9 INTERPRETATION:
C>
Int& - &t)t$"n'
7ere we can see that the current liabilities of the bank is very high but on the other hand bank don’t have enough assets so the result is Working 6apital of the (ank is decreasing year by year which is not a good sign for the bank. Its shows the bank don’t have a enough money to pay their day to day expenses.
B) Wo !i"# $%&i'%l '( "ove
%'io
Int& - &t)t$"n'
,he working capital turnover ratio is used to analy9e the relationship between the money used to fund operations and the sales generated from these operations. In a general sense$ the higher the working capital turnover$ the better because it means that the company is generating a lot of sales compared to the money it uses to fund the sales. In the case of (.23 +# '.5. ,7.2 working capital turnover ratio is
?= negative in most of the year only in the year %==: to %1.::$ it’s a /.:0 @ growth in gross profit margin of bank that shows the performance of bank is increasing which is a good sign for bank.
?1
Int& - &t)t$"n'
2et profit margin of (.23 +# '.5. ,7.2 is not up to mark. .lthough it has increased from 10.1: in the year %==0
PROJECT ON BANK OF RAJASTHAN
1
%
ACKNOWLEDGEMENT
I would like to express my gratitude to almighty God without whose blessing I wouldn’t have been able to take initial step in this research. Words are insufficient to express my gratitude to Mr. ushil Mittal my industry guide for his guidance and support in preparing this pro!ect. I would also like to thank my faculty guide whose support and suggestions has helped me to complete this pro!ect successfully. My sincere thanks to all those people who gave me their valuable time and input by filling my "uestionnaires. #inally I would like to thank my parents$ family members and friends for their support.
0
DECLARATION
I hereby declare that the work presented in the pro!ect report$ titled &'etail (anking ) *valuation +f ,he #inancial -erformance +f (ank +f 'a!asthan’ was carried out by me as a part of M(. curriculum during / weeks summer training program in the 0rd semester. ,he report is an authentic record of my work carried out under the guidance of Mr. ushil Mittal in (ank +f 'a!asthan. It is further declared that the report has not been submitted earlier for any other degree or diploma.
:
PREFACE
India is a developing country and we all know that banking sector plays a very important role. In development with the increasing use of banking and finance in every field$ new trends in their technology and modern use are being evolved day to day to meet the re"uirements. Infact 1(.23I2G4 has become the need of today. ,he purpose of -'+5*6, '*-+', is to expose the students in the market and in the field of banking$ finance and investments and to develop the ability in the students to deal with all types of customers. -reparing pro!ect report in the summer vacations and under going the summer training is the indispensable part of the college period. It provides the opportunity to review what we have gained in the training period and also provides the way to convey the knowledge and ideas to others. ,he present pro!ect provides the information on the &(.23 +# '.5. ,7.2’ 8earning is not possible in solitude and has to have the support and able guidance of some people around us in various roles and capacities. ,he satisfaction and euphoria that accompanies the successful completion of any task would be incomplete without the mention of the people who made it possible because success is the epitome of hard work$ undeterred missionary 9eal$ fast determination$ and consideration. ,herefore$ we consider it a pleasant duty to express our heartiest appreciation$ gratitude$ and indebtedness to our pro!ect guide Mr. ushil Mittal for his keen interest$ sincere extortion$ invaluable and pain taking excellent guidance$ continuous calm endurance$ inspiration and encouragement during each phase of the present pro!ect.
C
EXECUTIVE SUMMARY
,he (ank was successful in establishing a new identity in the market in a short span of time. ,he (ank once again met with considerable success over the past year and achieved all its key ob!ectives. ,his encouraging performance not only underscored the sustain ability of the (ank; s high tempo of growth $ but also helped to move closer to its ob!ective of being one of the more customer % crores. ,he (ank has developed a branch network which is built on customer>1$ under the chairmanship of M 2arasimham$ a committee was set up by his name which worked for the liberali9ation of banking practices. ,he country is flooded with foreign banks and their .,M stations. *fforts are being put to give a satisfactory service to customers. -hone banking and net banking is introduced. ,he entire system became more convenient and swift. ,ime is given more importance than money. (anking industry over the 1C years from 1>A> to 1>>:. ,he banking industry was transformed during that period$ according to the paper Fp. 1%AG$ by 1the massive reduction in the number of banking organi9ationsL the significant increase in the number of failuresL the dramatic rise in off/=s to the relaxation of branching restrictions later in the decadeL and F%G 6learly identifiable innovations in technology and applied finance$ including improvements in information processing and telecommunication technologies$ the securiti9ation and sale of bank loans$ and the development of derivatives markets. +ther research would later confirm the paper’s assessments and its explanation of the course of events in the banking industry over the period 1>A>N1>>:.
10
+ver the two decades 1>/:N%==0$ the structure of the E. . banking industry indeed underwent an almost unprecedented transformationOone marked by a substantial decline in the number of commercial banks and savings institutions and by a growing concentration of industry assets among a few do9en extremely large financial institutions. ,his is not news. .s mentioned above$ the decline in the number of banking organi9ations has been ongoing for more than two decades and has been well documented in the literature.0 2evertheless$ a brief overview will serve to clarify both the scope of the decline and the increasing concentration of assets among the nation’s largest banking organi9ations
1:
.t year/:$ there were 1C$=/: banking and thrift organi9ations Fdefined as commercial bank and thrift holding companies$ independent banks$ and independent thriftsG. (y year: percent of banking organi9ations
2. Futu & "# t/& $ndust !'(
,he burden of reporting and other regulatory re"uirements will fall heavily and disproportionately on small banks unless remedial action is taken. #urther advances in information technology will permit the development of new products$ (.23$ and risk< management techni"ues but may also pose important competitive and supervisory issues. 2onbank entities will continue to offer bank>A. • ,he (ank started its first .,M services in the series of Ruality services to its customers at 6< cheme 5aipur branch from 1st 5uly 1>>/. #or ?C years$ it has been our endeavor to achieve the growth on consistent basis Fsee ,ableG. With :?0 online branches nationwide the (ank is the largest private sector.
1A
Ou G !"#$ !%& F'%& D&()*&+, -R+.'. M'//'!.+0 D&(. 12 D&5!+'#+ A*%).(&+ C)5'#)/ R&+& %&+ N!. !6 B ).($&+
*including Capital Reserve The Central Office of the bank is operating in its own building located at C-3, Sardar Patel C- Sche!e, "aipur 3#$##% &Ra'asthan, (ndia)* arg,
D&(. 32 1>?.=C 11C.:: %.== %.01 A=
D&(. 82 1%C?.:/ A%=.=? 0.== /.:% %1=
M) . 42 A%=:.0> 0?:%.01 1A.C= /%.CC %A:
M) . 2222 0%:%1.=% 1A%/:.:1 ?%A.?% 1>0?.10 0=?
M) . 2224 10/:>0.:A A:00/.A? 10::.C/ /=:1.C? :?0
C0.?0 %?.00 =.>% =./= 0?
P &s&nt St)tus "# t/& O +)n$3)t$"n'(
,he population groupwise classification is given hereunder M
(ranches Fas onG T 6ategoryS 01.=0.%== / Metropolitan 1:% Erban emi$ (ank of 'a!asthan had a network of :?0 branches and 111 automated teller machines in India.
1>
,EBI +# *8*6,*B '* *.'67 -'+(8*M
'* *.'67 M*,7+B+8+GI
.ll the findings and conclusions obtained are based on the survey done in the working area within the time limit. I tried to select the sample representative of the whole group
%= during my !ob training. I have collected data from people linked with different profession at .mbala
'* *.'67 -8.2M
P &%$.$n) ! In,&st$+)t$"n, In which data on the situation surrounding the problems shall be gathered arrive at V ,he correct definition of the problem. V .n understanding of its environment. E5-%" )t" ! Stud!' ,o determine the approximate area where the problem lies.
'* *.'67 B* IG2'
'esearch was initiated by examining the secondary data to gain insight into the problem. (y analy9ing the secondary data$ the study aim is to explore the short comings of the present system and primary data will help to validate the analysis of secondary data besides on unrevealing the areas which call for improvement.
B*J*8+-I2G ,7* '* *.'67 -8.2M
,he data for this research pro!ect has been collected through self .dministration. Bue to time limitation and other constraints direct personal interview method is used. . structured Ruestionnaire was framed as it is less time consuming$ generates specific and to the point Information$ easier to tabulate and interpret. Moreover respondents prefer to give direct answers.In "uestionnaires open ended and closed ended$ both the types of "uestions has been used.
6+88*6,I+2 +# B.,.'
1' S&2"nd) ! D)t)'
%1 It was collected from internal sources. ,he secondary data was collected on the basis of organi9ational file$ official records$ management books$ preserved information in the company’s database and website of the company. 2' P $.) ! d)t)' .ll the people from different profession were personally visited and interviewed. ,hey were the main source of -rimary data. ,he method of collection of primary data was direct personal interview through a structured "uestionnaire ) through telephonic conversation SAMPLING PLAN' ince it is not possible to study whole universe$ it becomes necessary to take sample from the universe to know about its characteristics.
?S)75/'.8 W
U.'#+,
Bifferent
professionals
6hartered
.ccountants$
,ax
6onsultants$ 8awyers$ (usiness Man$ -rofessionals and 7ouse Wives of .mbala
?S)75/& W T&($.'9u&, 'andom ampling. ?R&+&) W ($ I.+# u7&.#, tructured Ruestionnaire. ?C!.#)(# W M&#$!*, -ersonal Interview.
.
.M-8* IX*'
My sample si9e for this pro!ect was %== respondents. ince it was not possible to cover the whole universe in the available time period$ it was necessary for me to take a sample si9e of %== respondents.
RE* ,I+22.I'*
Bear respondent this "uestionnaire is meant for the purpose of research on the topic1'*,.I8 (.23I2G ) *J.8E.,I+2 +2 ,7* #I2.26I.8 -*'#+'M.26* +# (.23 +# '.5. ,7.24 for a continuous evaluation of summer internship as part of M(. FGG program of .IM,$3.E.3 Eniversity. It will be assured that the data collected will not be misused.
%%
2ame:------------------------2o:--------------------------
6ontact
R 1 What is your +ccupationQ
FaG (usiness FbG alaried FcG elf *mployed FdG +thers
R % What is your Monthly ,ransaction in your account Q
aG %% crores on 01st March %==/$ a growth of C%@. ,he segment constitutes %0@ of the (ank;s total loan portfolio on 01 March %==/ of which A>./0@ is secured and %=.1A@ comprises unsecured loans. 'etail loans are extended by the (ank through A= 'etail .sset 6entres F'.6sG in select cities of the country$ as also through the (ank;s branches in other cities and towns. ,he (ank;s strategy of focusing on the prime customer segments and staying away from small ticket loans$ and the deployment of robust credit and back. P)++ ;!!? .t the time of opening the account customers will be issued a pass book. ,he pass book will have the -hotograph of the account holder duly authenticated by the officer of the branch. In the case of illiterate customers$ alongwith -hotographs$ hisU her 8eftU right thumb impression will be obtained on the pass book as well as on the account opening form duly authorised by the concerned officer of the branch. 1=. C!//&(#'!. !6 C$&9u&+ aG,hird -arty 6he"uesM ,hird party che"ues drawn in favour of customer upto a value of 's.%C===U< F's. twenty five thousandG per transaction will allowed. bG+ut station che"uesM 2ormally collection of che"ues will not be encouraged in this account. 7owever$ no charges will be levied for instruments upto 's.%C==U< drawn on our branches. In case of instruments drawn on other banks
%> actual charges levied by other bank plus out of pocket expenses will be recovered. 11. A((!u.# (/!+u & ($) 8&+ 2il 1%. I++u& !6 P)< ! *& @ DD@ B).?& A+ ($&9u&+ C=@of charges as applicable in the case of normal ( account. 10. C$&9u& &#u . ($) 8&+ In case of che"ues deposited by customer in his account being returned unpaid$ charges as applicable in the case of normal ( account will be recovered. 1:. N!7'.)#'!. 6)('/'#< 2omination facility will be available as in case of normal ( account. 1C. G&.& )/ C!.*'#'!. If the conditions relating to Maximum (alance and total credits in '( .ccount opened by a customer are violated the account will cease to be a 2o< frill .ccount. #urther operations will be permitted only upon implementation of full 3I6 norms except for withdrawals of the entire balance for closure of the accountthrough account -ayees -ay order or Bemand Braft.
RA>BANK SA:ING ACCOUNT 'a!bank N avings -lus .ccount $ a uni"ue high end ( product for all individuals F5ointly or severallyG including professionals such as Boctor$ 8awyer$ 6..s.$ *xecutive working in M26$ oftware 6ompanies$ -ublic U -rivate ector and business people$ 7igh 2et Worth Individuals$ 6*+s$ I. and I- . M!.#$/< A%& )8& M'.'7u7 B)/).(& P '%'/&8&+, 1. #ree 8ife ,ime Bebit cum .,M 6ard a.2o 'enewal 6harges R+. 5222.22
0= b.#ree 6ash Withdrawal on (anks’ own .,Ms ) .,Ms of 6ash ,ree$ (i= crores towards commission on business booked. #rom .pril %==> ) onwards$ (ank will act as a 6orporate .gent for .JIJ. and It is expected that life insurance business will increase substantially. ,he (ank expects to receive handsome income by way of commission during current year.
B&)/#$ A*%'+! < S& %'(&+
,his service focuses on the 1 eriously 'ich4 segment and caters to all the banking and investment needs of a customer. .long with Mutual fund and (ond investments$ Mohur also offers investments in e"uity through 2on N Biscretionary -ortfolio Management services. Mohur aims at providing a one@.
CAPITAL MANAGEMENT
,he (ank believes in the continual enhancement of shareholder value and its capital management framework helps to optimi9e the use of capital by ensuring the most favorable allocation of capital through an appropriate mix of products and services. ,he (ank focused on developing an asset structure which was sensitive to the importance of enlarging the proportion of low risk weighted assets in order that capital is more efficiently deployed. Buring the year$ the (ank continued to attract investor interest from domestic and foreign institutional investors$ with a perceptible increase in trading volume and price. ,o augment capital for maintaining the momentum of business growth$ the (ank raised e"uity capital of 's. :$C0: crores in %==A
SCHEDULE –17:
BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
,he financial statements have been prepared on historical cost basis$ unless otherwise stated$ by following the going concern concept and are in accordance with statutory provisions. ,he accounting and reporting policies of the (ank used in the preparation of these financial statements conform to the statutory re"uirements$ the Generally .ccepted .ccounting -ractices prevailing within the banking industry in India F1Indian
C= G..-4G$ and the guidelines issued by 'eserve (ank of India F1'(I4G from time to time.,he preparation of financial statements re"uires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities Fincluding contingent liabilitiesG as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. #uture results could differ from these estimates. SIGNIFICANT ACCOUNTING POLICIES 1. 'evenue 'ecognitionM 1.1 Income and expenditure are generally recognised on accrual basis. In case of 2on -erforming .dvances and Investments$ such income is accounted for only on reali9ation in accordance with the guidelines issued by '(I. 1.% 7itherto$ the (ank recognised interest on matured term deposits at the time of renewal U withdrawal of the same. In pursuance of '(I circular B(+B.2o.8eg.(6.0:U=>.=A.==CU%==/$ the (ank has provided interest on outstanding matured term deposits as on 01st March %==> at the savings bank rate of 0.C=@ for the year. 1.0 In accordance with the guidelines issued by the '(I$ prior period disclosures are made in respect of any item which exceeds one percent of the total incomeUtotal expenditure as$ accounted for in the profit and loss account. %. InvestmentsM %.1 ,he investment portfolio of the (ank is classified in accordance with the 'eserve (ank of India F'(IG guidelines$ into 17eld for ,rading4$ 1.vailable for ale4 and 17eld to Maturity4 categories. ,hese are further identified as -erforming or 2on< performing as per Income 'ecognition$ .sset 6lassification and -rovisioning norms of '(I. 7owever$ for disclosure in the balance sheet$ these are classified under six groups as follows M < Government securities < +ther approved securities < hares < Bebentures and (onds < ubsidiaryUsponsored institution
C1 < +thers %.% (asis of 6lassificationM 6lassification of an Investment is done at the time of purchase into following categoriesM %.%.1 7eld to Maturity ,hese comprise of Investments which the bank intends to hold till maturity. %.%.% 7eld for ,rading ecurities which are held for resale within >= days from the date of purchase. %.%.0 .vailable for ale Investments which cannot be classified in the above two categories. %.0 ,ransfer of ecurities between categoriesM ,he transfer U shifting of securities between the three categories of Investments is accounted at the least of ac"uisition costU book value U market value on the date of transfer and the depreciation$ if any$ on such transfer is fully provided for. %.: JaluationM ,he valuation of Investments is made in accordance with the '(I guidelines. %.:.1 7eld to Maturity ,he Investments classified under this category are valued at ac"uisition cost. ,he excess of ac"uisition costUbook value over the face value is amortised e"ually over the remaining period of maturity. %.:.% .vailable for ale Investments under this category are valued scrip. Impairment of .ssets
CC ,he bank assesses at each balance sheet date whether there is any indication that an asset may be impaired. Impairment loss$if any$ is provided in the profit and loss account to the extent the carrying amount of assets exceeds their estimated recoverable amount. 1=. *arnings -er hare F1*- 4G (asic earnings per share is calculated by dividing the net profit or loss for the year attributable to e"uity shareholders by the weighted average number of e"uity shares outstanding during the year. hare as re"uired by .ccounting tandard %= 1*arning -er hare.4 11. egment 'eporting ,he bank had hitherto identified business segments into three broad categories namely treasury operations$ banking operations and others U residual. ,his was done on the basis of differences in the risk and reward in these three broad categories. ,reasury ,reasury includes the entire investment portfolio and also the dealing in Government ecurities and Money Market +perations. 6orporateUWholesale (anking .ll advances Ffunded and non exceeds 's.C 6rores or average annual turnover of last three years is 's.C= crores or more are classified under 6orporate U Wholesale (anking. 'etail (anking .dvances not classified under the 6orporate U Wholesale (anking segment are included in the 'etail (anking segment
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C6APTER(7
8ANALYSIS 9 INTERPRETATION:
C>
Int& - &t)t$"n'
7ere we can see that the current liabilities of the bank is very high but on the other hand bank don’t have enough assets so the result is Working 6apital of the (ank is decreasing year by year which is not a good sign for the bank. Its shows the bank don’t have a enough money to pay their day to day expenses.
B) Wo !i"# $%&i'%l '( "ove
%'io
Int& - &t)t$"n'
,he working capital turnover ratio is used to analy9e the relationship between the money used to fund operations and the sales generated from these operations. In a general sense$ the higher the working capital turnover$ the better because it means that the company is generating a lot of sales compared to the money it uses to fund the sales. In the case of (.23 +# '.5. ,7.2 working capital turnover ratio is
?= negative in most of the year only in the year %==: to %1.::$ it’s a /.:0 @ growth in gross profit margin of bank that shows the performance of bank is increasing which is a good sign for bank.
?1
Int& - &t)t$"n'
2et profit margin of (.23 +# '.5. ,7.2 is not up to mark. .lthough it has increased from 10.1: in the year %==0