PANANCHERY SERVICE COOPERATIVE BANK

SUBMITTED BY,
PRATHYUSH RAJ.K(2010-45-104) SRUTHY K BABU(2010-45-110) SRUTHY RAJ(2010-45-118) STARA M.S(2010-45-120) ASWATHY ASHOK(2010-45-125)

GENESIS
Established in the year 1946 Registered on 13-06-1946 Commenced its business on 25-06-1946 Head Office at Pananchery Two branches at Vilaganur and Vaniyampara.

OBJECTIVES AND FUNCTIONS

Encourage the habit of thrift, self help and co-operation.

Distribute short term and medium term loans to members

of the society.
Gather seeds, fertilizers, insecticides, agricultural

implements and other resources required for agricultural and domestic industries.

 Sell agricultural and industrial products in a

beneficial way through some marketing groups for the members.

Prepare plans and put them into force for the

production of agricultural products for the members.

own or take for rent warehouses to procure and

preserve the produces of the members.

 render assistance to members for producing new

kinds of seeds.
provide help for the members who individually or

collectively prepare bio fertilizers or mixed fertilizers within the area of operation of the bank.
buy modern implements for the purpose of renting

it out to the members.

 acquire movable and immovable assets required for the

functioning of the bank.

sell seeds, chemicals, agricultural tools etc as an agent undertake agricultural activities like irrigation and land

protection for the members under certain circumstances, with the permission of Registrar.

 undertakes the sale of agricultural

inputs like fertilizers and pesticides, sale of consumer goods through Neethi stores, marketing activities etc.

criteria
Has to attain 18 years of age Should be a resident or Should have landed property within the

region of the bank

types
a class membership

for individual members having voting rights

B class membership

for government & DISTRICT COOPERATIVE BANKS

Membership status from 2000-01 to 2009-10

year
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

A class
5195 5475 5985 6200 6580 6875 6900 6752 6500 6340

b class
5075 5221 5220 5940 6124 6046 6218 6580 6961 7412

membership
10270 10696 11235 12140 12704 12921 13118 13332 13461 13752

Growth index
100 104.15 109.4 118.2 123.7 125.8 127.7 129.82 131.07 133.9

membership

Sources of funds
Share capital Reserves Deposits borrowings

Share capital
The society has tWO types of shares A class and B class.

 For getting A class membership

each individuals members should take minimum of one shares worth Rs.10. B class members are mainly the government and government agencies. The membership fee is Rs.100/share.

Status of Share Capital from 2000-01 to 2009-10

Year

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

A Class (in lakhs) 16.75 17.00 17.36 17.55 18.24 18.69 17.76 17.01 13.64 17.79

B C lass Total (in lakhs) (in lakhs) 12.17 28.92 15.12 32.12 15.19 32.55 15.04 32.59 15.27 33.21 15.31 34.00 16.96 34.72 18.54 35.55 19.00 32.64 19.34 37.13

Growth Index 100 111.07 112.55 112.69 114.83 117.57 120.05 122.92 112.86 128.39

10

15

20

25

30

35

40

0
20 00 -0 20 1 01 -0 20 2 02 -0 20 3 03 -0 20 4 04 20 05 05 -0 20 6 06 -0 20 7 07 -0 20 8 08 -0 20 9 09 -1 0

5 A Class B C lass Total(in lakhs)

Share capital

reserves
Are kept by the bank to meet

unforeseen contingencies that might occur in futures. are kept according to the norms laid down in the co operative societies Act. The bank keep mainly two types of reserves:-Statutory reserves -Non statutory reserves.

 Statutory reserves includes reserves fund,

agricultural credit stabilization fund, reserves for bad and doubtful debts.
Non statutory reserves include reserves

for damaged stock, common good fund, building funds and depreciation fund etc

Status of reserves from 2000-01 to 2009-10

Year Amount(in lakhs) 2000-01 92.93 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

79.43 84.98 94.43 135.87 62.01 65.01 62.19 62.25 62.33

Growth Index 100 85.47 91.44 101.61 146.2 66.72 69.95 66.92 66.99 67.07

reserves

DEPOSIT
Deposit is regarded as the lifeblood of banking business. Deposit mobilization has a vital role in managing the day to

day financial transactions.

The deposits are accepted from the members as well as

non members.

TYPES OF DEPOSITS

FIXED DEPOSITS SAVINGS BANK DEPOSITS CURRENT DEPOSITS RECURRING DEPOSITS THRIFT DEPOSITS COMPULSORY DEPOSITS MANGALYA NIDHI JUBILEE TERM DEPOSITS MONTHLY DEPOSIT SCHEME

FIXED DEPOSITS
FIXED AMOUNT IS DEPOSITED FOR A

FIXED PERIOD OF TIME. THE AMOUNT SHOULD NOT BE LESS THAN 500 &THE PERIOD SHOULD NOT BE LESS THAN 15 DAYS. THE INTEREST RATE VARIES ACCORDING TO THE PERIOD FOR WHICH THE DEPOSITS HAS BEEN MADE.

SAVINGS BANK ACCOUNT

THE DEPOSITS MOSTLY ARE OF SMALL

AMOUNT. CAN BE OPENED WITH A MINIMAM AMOUNT OF 100.

Current Deposit

This type of account is generally opened by businessmen and by both members and non members can operate it. Cheque facility can be used for withdrawal. Usually no interest is given to current account holders.

Recurring Deposits
Recurring deposit is for the members of the

cooperative society. The member should make such deposits on regular intervals up to a certain period. It is just like fixed deposits because amount can be withdrawn only after the maturity date. The minimum period is one year. Rs.100 or multiples of 100 is accepted for depositing.

Compulsory Deposit
This type of deposit is compulsorily deposited

with the bank in the form of shares. If a member takes loan from the bank, one percent of the loan amount will be subscribed as shares and the bank provide a certain percent of interest for this share.

Suvarna Nidhi

In this type of deposits, the depositor will get

double the amount he deposited with the bank within a period of 7 years.

Thrift deposit
It is a weekly savings scheme mainly to

encourage the thrift among people. The duration of this is 52 weeks. Minimum amount is Rs.50 and the amount may vary to multiples of Rs.50. Thrift deposit shows a declining trend throughout the period of study.

Status of deposits from 2000-01 to 2009-10(in lakhs)

Year Fixed Deposit Savings Deposit Recurring Deposit Current Deposit Jubilee Term Deposit Mangalya Suvarna Nidhi Nidhi Other Deposits Total

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

297.39 291.34 321.64 538.51 675.82 751.41 825.80 949.66 585.57 706.31

53.84 52.08 63.41 73.27 104.60 179.90 174.63 175.48 213.83 118.08

8.78 16.24 23.43 27.81

0.007 0.007 0.007 0.007 4.97 15.55 20.34 31.15 37.42 42.51

293.8 346.77 410.60 156.94 125 277.50

11.71 11.71 11.71 11.71 11.71 11.71 11.71 11.71 -

235.39 275.01 262.59 257.42 191.40 96.81 63.51 70.55 -

1.266 1.576 1.736 2.006 2.246 2.936 4.016 4.416 3.75 3.46

893.4 978.5 1071.7 1039.9 1115.7 1058.3 1108.8 1259.2 864 1175.7

 BORROWINGS

The Thrissur District Co-operative bank and government are the main sources of borrowings of the Pananchery Service Cooperative Bank Ltd .The Borrowings of the bank from 2000-01 to 2009-10.

Table 1.5; Status of Borrowings from 2000-01 to 2009-10

Year Sources of Borrowings
DCB Government

Total(in lakhs)

2000-01

2.14

0.9

3.04
27.60

2001-02

26.80

0.8

2002-03

1.45

0.61

2.06

2003-04

96.11

0.61

96.72

2004-05

339.18

0.21

339.39

2005-06

375.80

375.80

2006-07

417.40

417.40

2007-08

370.55

370.55

2008-09

221.81

221.81

2009-10

197.31

197.31

 Mobilization of deposits and deployment of loans are the major

functions of the bank.

Optimum deployment of loan is a matter of concern for all banks. Advances are vital as it is the source, which provides income for

survival of banks.
This enables bank to meet its credit requirements and thus its

goals.

Table :Total Loans and Advances from 2000-01 to 2009-10

Year Loans and Advances (In Lakhs) 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 596.63 667.05 732.07 790.61 915.26 1026.47 1121.11 1246.82 1324.21 1407.37 100 111.80 122.70 132.51 153.40 172.04 187.90 208.97 221.94 235.88 Growth Index

The continuous increase in the loans granted shows that the service of bank reaches the particular region.

 Main non-banking businesses are of the bank are

(i) Fertilizer Depots (ii) Neethi Gas Stores o Apart from these the bank also conducts other trading activities during Onam, Christmas etc to supply essential commodities to Members and Non Members at reasonable rate.

The Management of the Pananchery Service Co-operative Bank is vested with the Board of Directors subjected to the general control of the General Body.

The General Body Supreme authority of the bank. Quorum of the G.B being 25 or 1/5 of members which ever is lower. Powers vested are to elect director board, consideration and approval of annual reports, budgets, division of net

The Board of Directors

Ultimate authority and Control vested. Consists of 9 members who are elected. One seat reserved for SC/ ST and Women member. The Board of directors shall meet once in a month Term of office is 5 years.

The President
Overall Control and responsible for administration of the bank Handles the accounts of the bank jointly with secretary Vice President handles the responsibilities in absence

The Secretary
Chief executive officer of the bank. Subject to general control of the bank. Responsible for administration of the bank A paid of the employee

FINANCIAL ANALYSIS
Financial statement reflects the state of affairs of an organization at a given point of time as well as its financial performance over a period of time.

Performance Evaluation
Through ratio analysis
EFFICIENCY IN MOBILISATION EFFICIENCY IN DEPLOYMENT Efficiency in operation

EFFICIENCY IN MOBILISATION
A) Deposits to Borrowed Funds

Ratio
This ratio indicates the share of deposits in the borrowed fund.

= Deposit/Borrowed *100

RATIO ANALYSIS
Year
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Deposit
893.4 978.5 1071.7 1039.9 1115.7 1058.3 1108.8 1259.2 864 1175.7

Borrowings
3.04 27.60 2.06 96.72 339.39 375.80 417.40 370.55 221.81 197.31

Ratios (In %)
26278.23 356.88 1071.72 1075.16 328.73 281.61 265.642 339.83 389.52 595.86

 B) Owned funds to Borrowed Funds

Ratio
Owned funds to borrowed funds ratio = Owned funds/Borrowed funds * 100

Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Share Capital 28.92 32.12 32.55 32.59 33.21 34.00 34.72 35.55 32.64 37.13

Reserves

RATIO ANALYSIS Owned Deposits Borrowings

Fund 92.93 79.43 84.98 94.43 135.87 62.01 65.01 62.19 62.25 62.33 121.85 111.55 117.53 127.02 169.08 96.01 99.73 97.74 94.89 99.46 893.4 978.5 1071.7 1039.9 1115.7 1058.3 1108.8 1259.2 864 1175.7 3.04 27.60 2.06 96.72 339.39 375.80 417.40 370.55 221.81 197.31

Borrowed Fund 896.5 1006.12 1073.78 1136.62 1455.09 1434.11 1526.1 1629.8 1085.81 1373.01

Ratios (In %) 13.59 1.14 10.94 11.17 11.61 6.69 6.53 5.99 8.73 7.24

EFFICIENCY IN DEPLOYMENT
The fund collected by the bank through owned fund and borrowed fund should be deployed in profitable revenues. A) Credit to Deposit Ratio
This ratio indicates the ability of bank in deploying credit to customers out of the deposits mobilized . Credit to Deposit Ratio = Credit/Deposit*100

RATIO ANALYSIS

Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Credit 596.63 667.05 732.07 790.61 915.26 1026.47 1121.11 1246.82 1324.77 1435.28

Deposit 893.4 978.5 1071.7 1039.9 1115.7 1058.3 1108.8 1259.2 864 1175.7

Ratios (In %) 66.77 68.16 68.30 76.02 82.03 96.99 101.1 99.01 153.32 122.07

 B) Credit to Borrowed Funds Ratio

Credit to Borrowed funds ratio reveals the measure of the efficiency of the bank in converting the borrowed funds to loans and advances. Credit to Borrowed Funds Ratio = Credit/Borrowed funds*100

RATIO ANALYSIS
Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Credit 596.63 667.05 732.07 790.61 915.26 1026.47 1121.11 1246.82 1324.77 1435.28 Borrowed Fund 896.5 1006.12 1073.78 1136.62 1455.09 1434.11 1526.1 1629.8 1085.81 1373.01 Ratios (In %) 66.55 66.29 68.18 69.56 62.90 71.57 73.46 76.50 122 104.53

 C) Credit to Total Funds Ratio

From this ratio we can get an idea of quantity of credit that is included in the total funds of banks.
Credit to Total Funds Ratio = Credit/Total funds*100

RATIO ANALYSIS
Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Credit 596.63 667.05 732.07 790.61 915.26 1026.47 1121.11 1246.82 1324.77 1435.28 Owned Fund 121.85 111.55 117.53 127.02 169.08 96.01 99.73 97.74 94.89 99.46 Borrowed Fund 896.5 1006.12 1073.78 1136.62 1455.09 1434.11 1526.1 1629.8 1085.81 1373.01 Total Funds 1018.35 1117.62 1191.31 1263.64 1624.17 1530.12 1625.83 1727.54 1180.7 1472.47 Ratios (In %) 58.58 59.68 61.45 62.56 56.35 67.08 68.95 72.17 112.20 97.47

FUTURE PLANS
Link with other agencies for the

encouragement of agricultural sector.

Opening of Neethi Stores. Diversify their funds into educational

sector

CONCLUSION
Pananchery Service Cooperative Bank meets

the credit needs of the members. Able to mobilize good deposit every year. Fixed deposit is the single largest contributor of the source of fund to the bank. The total loans and advances provided by the bank increased year after year

THANK YOU.