Report on

“A Study on Financial and Operating performance of Kanara District

Central Co-operative Bank Ltd., Sirsi, Uttar Kannada District”

Project report submitted to the Bangalore University in partial fulfilment of the

Requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Bangalore University
SUBMITTED BY
Swati Dinakar Chouhan
Register No: 18CQCMD146
UNDER THE GUIDENCE OF
Prof.V.S.Harshith Babu
Guide number: 18CQFG005
Assistant Professor

DAYANANDA SAGAR COLLEGE OF ARTS SCIENCE AND COMMERCE

SHAVIGE MALLESHWAR HILLS KUMARSWAMY LAYOUT BANGALORE
560078Academic year 2019-20
 DECLARATION BY THE STUDENT

I hereby declare that “A STUDY ON FINANCIAL AND OPERATING PERFORMANCE

OF KANARA DISTRICT CENTRAL CO-OPERATIVE BANK LTD., SIRSI, UTTAR
KANNADA DISTRICT” is the result of the project work carried out by me under the guidance of
PROF V.S.HARSHITH BABU and in partial fulfillment for the award of Master’s Degree in
Business Administration by Bangalore University.

I also declare that this project is the outcome of my own efforts and that it has not been
submitted to any other University or Institute for the award of any other degree or Diploma or
Certificate.

Place: Bangalore Name: SWATI DINAKAR CHOUHAN

Date: Register Number: 18CQCMD146

 GUIDE CERTIFICATE

This is to certify that the Project Report title Submitted by (Swati Dinakar Chouhan and
18CQCMD146) to Bangalore University, Bangalore for the award of Degree of MASTER OF
BUSINESS ADMINISTRATION is a record of work carried out by her under my guidance.

Place: Bangalore

Date: Signature
 Certificate of Originality
(Plagiarism)

Name of the Student : Swati Dinakar Chouhan

Registration Number : 18CQCMD146

Title of Dissertation or project : “A Study on Financial and Operating performance

of Kanara District Central Co-operative Bank Ltd.,

Sirsi, Uttar Kannada District”

Name of Guide : Prof V.S.Harshith Babu

Similar Content (%) Identified : 17%

(Acceptable maximum limit of 25%)

Dissertation ID Number(s) in : 1233787511

Drill Bit ….

The dissertation report has been checked using Turnitin / Drill Bit anti-plagiarism software
(Attached first page of originality report as ANNEXURE) and found within limits as per
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We have verified the contents of the dissertation report, as summarized above and certified
that the statements made above are true to the best of our knowledge and belief.

Signature of the Student Signature of the Guide Signature of the

Principal/Director
(Date) (Date & Seal)
 ACKNOWLEDGEMENT

The successful completion of any project is always a consequence of team work and the
guidance of a number of people involved, I had the good fortune of working with a wonderful
group of people whose vast experience, kind help and advice has been a great help in completion
of my project. I am greatly in debt and would like to express my sincere thanks to one and all.

I am happy to express my deep sense of gratitude to DR. B R VENKATESH, DIRECTOR,

Dayananda Sagar College of Arts, Science and Commerce, Bangalore for his encouragement,
guidance and many valuable ideas imparted to me for my project.

I extend my sincere thanks to ProfV.S.Harshith Babu Assistant Professor (College guide) for
providing me all the information required and the guidance throughout the project without her
guidance and encouragement this project wouldn’t have been possible .I have gained a lot of
knowledge, both theoretical and practical, throughout the course of carrying out this project; I also
learnt a lot about the actual business world. My special regards would be to the faculties.

SWATI DINAKAR CHOUHAN

REGNO.-18CQCMD146
 “A STUDY ON FINANCIAL AND OPERATING PERFORANCE OF

KANARA DISTRICT CENTRAL CO-OPERATIVE BANK LTD., SIRSI,

UTTAR KANNADA DISTRICI”

ABSTRACT

LIST OF CONTENTS

SL NO PARTICULAR PAGE
NO
1. INTRODUCTION 1-9
INDUSTRY PROFILE
1.1 Definition and Meaning of Bank 1
1.2 History of Banking in India 1
1.3 Functions and Significance of Bank 4
1.4 Co-operative Bank 4
1.5 Characteristics of Co-operative Banks 5
1.6 Classification of Co-operative Banks 6
1.7 Significance of Co-operatives Banks 9
1.8 Limitations of Co-operative Banks 9
2. RESEARCH DESIGN 10-17
2.1 Statement of the Problem 10
2.2 Significance and Need of the study 10
2.3 Scope of the Study 11
2.4 Objectives of the Study 11
2.5 Research methodology 11
2.6 Limitation of the Study 14
2.7 Review of Literature 14
3. PROFILE OF SELECTED DOMAIN 18-30
 COMPANY PROFILE
3.1 Profile of the KDCC Bank Ltd. 18
3.2 Origin of the KDCC Bank Ltd. 19
3.3 Growth of KDCC Bank Ltd. 19
3.4 Objectives of KDCC Bank Ltd. 21
3.5 Vision of the Bank 21
3.6 Mission of the Bank 22
3.7 Products and Services of KDCC Bank Ltd. 22
3.8 Infrastructure Facilities 22
3.9 Achievements of the KDCC Bank Ltd. 22
3.10 Management 23
3.11 Competitor’s Information 28
3.12 SWOT Analysis 28
3.13 Future Growth and Prospects 30
4. DATA ANALYSIS AND INTERPRETATION 31-46
4.1 Introduction 31
4.2 Descriptive Analysis on Sample 31
4.3 Inferential Analysis 44
5. SUMMARY OF FINDINGS, SUGGESTIONS, 47-50
CONCLUSION
5.1 Findings 47
5.2 Suggestions 49
5.3 Conclusion 49
BIBLIOGAPHY
ANNEXURE
 LIST OF TABLES

TABLE PARTICULAR PAGE NO

NO
4.2.1 Table Showing the customers age group of KDCC 32
bank.
4.2.2 Table showing the gender of customers of KDCC 33
bank.
4.2.3 Table showing annual income of customers of KDCC 34
bank.
4.2.4 Table showing types of account hold by the customers 35
of KDCC bank.
4.2.5 Table showing customers feelings when they visit to 36
KDCC bank.
4.2.6 Table showing who prepares financial plan for KDCC 37
bank.
4.2.7 Table showing the period for preparation of financial 38
plan of KDCC bank.
4.2.8 Table showing important aspect of financial plan of 39
KDCC bank.
4.2.9 Table showing the level of employees productivity on 40
performance of KDCC banks, its profitability, progress
and goodwill in the market.
4.2.10 Table showing steps bank take to control or minimize 41
the NPA of KDCC Bank.
4.2.11 Table showing KDCC bank have a formally approved 42
credit risk management policy.
4.2.12 Table showing who approves the overall credit risk 43
management policy of KDCC bank.
4.3.1 Table showing chi-square test for association 44
between gender and annual income customers of KDCC
bank.
4.3.2 Table showing chi-square for association between 45
gender and preparation of financial plan.
4.3.3 Table showing one-way ANOVA for significant 46
difference between types of bank account with respect to
specification on credit risk of KDCC bank
 LIST OF THE GRAPH

TABLE PARTICULAR PAGE NO

NO
4.2.1 Graph Showing the customers age group of KDCC 32
bank.
4.2.2 Graph showing the gender of customers of KDCC 33
bank.
4.2.3 Graph showing annual income of customers of 34
KDCC bank.
4.2.4 Graph showing types of account hold by the 35
customers of KDCC bank.
4.2.5 Graph showing customers feelings when they visit to 36
KDCC bank.
4.2.6 Graph showing who prepares financial plan for 37
KDCC bank.
4.2.7 Graph showing the period for preparation of financial 38
plan of KDCC bank.
4.2.8 Graph showing important aspect of financial plan of 39
KDCC bank.
4.2.9 Graph showing the level of employees productivity 40
on performance of KDCC banks, its profitability,
progress and goodwill in the market.
4.2.10 Graph showing steps bank take to control or minimize 41
the NPA of KDCC Bank.
4.2.11 Graph showing KDCC bank have a formally 42
approved credit risk management policy.
4.2.12 Graph showing who approves the overall credit risk 43
management policy of KDCC bank.

CHAPTER-I
INTRODUCTION
 ABSTRACT
In India McDonald’s and kfc has been the two main giants if it comes to fast food industry,
there global scale has expanded in various countries’ and has become prominent players in this
sector , it is obvious that these restaurant are famous among consumer and intense competition
carries on between them , people like these individuals restaurant due to various reasons.
This study is done to find out the behavior of the customer if it come between these restaurant
and to know both internal and external determinants that are influencing there behavior, this
comparative study of McDonald’s and kfc includes there false and strategies that provides a better
experience to the customers , that lifts them over other are provided in this research.
The population includes the respondents who are customers of kfc and McDonald’s located at
Bangalore , Karnataka. The report is based on comparative analysis of operational activities of
McDonald’s and kfc and the research on overview of various factors that differentiate the service
of the two fast food giants

Keywords : buying behavior , consumer preferences , customer satisfaction Bangalore

consumer
 CHAPTER-1

INTRODUCTION

INDUSTRY PROFILE
1.1 DEFINITION OF FAST FOOD IN INDIA
Fast food is a type of mass-produced food designed for commercial resale and with a strong priority
placed on "speed of service" versus other relevant factors involved in culinary science. Fast food
was originally created as a commercial strategy to accommodate the larger numbers of busy
commuters, travelers and wage workers who often did not have the time to sit down at a public
house or diner and wait for their meal. By making speed of service the priority, this ensured that
customers with strictly limited time (a commuter stopping to procure dinner to bring home to their
family, for example, or an hourly laborer on a short lunch break) were not inconvenienced by
waiting for their food to be cooked on-the-spot (as is expected from a traditional "sit
down" restaurant). For those with no time to spare, fast food became a multibillion-dollar industry.
In 2018, the fast food industry was worth an estimated $570 billion globally.

1.2HISTORY OF FAST FOOD INDUSTRY IN INDIA

In India, increase in disposable income has in turn increased the frequency of dinning out. Big fast

food chains like McDonald’s came to India in 1996, and soon other big outlets like Dominos, Pizza
Hut, KFC, etc., followed suit, according to a study by AIIMS, Bangalore.

According to another report, Indian fast food market is expected to grow at a compound annual
growth rate (CAGR) of 18 per cent by 2020 due to changing consumer behaviour and demography.

This indicates that India is sailing in the same boat as US when it comes to fast food consumption.

The latest findings should be taken as a benchmark and, we should work towards cutting down the
fast food consumption in order to lead a healthy life.
Styles
The diversity of Indian cuisine poses logistical problems when it comes to handling. Hence it is
common to serve different cuisines at different counters within the same premises. Presence of a
large vegetarian population, who eschew non-vegetarian food, has given rise to outlets which
exclusively serve vegetarian fast food. Also, different variety of food may be served depending on
the times of the day. Beverages such coffee, tea, soft drinks and fruit juices may also be served in
such outlets. Some outlets may additionally have specially designed counters for ice-
cream, chats etc.
Popular formats of fast food business in India have the following features in common:
 Wide opening on the road side
 Easy to maintain and durable décor
 A cash counter where food coupons are sold
 A food delivery counter which invariably is granite topped
 Additional counters for Ice Creams, Chats , Beverages etc.
 A well fitted kitchen located so as to be visible to the customers
 Tall tables, typically of stainless steel, where one can eat while standing
 A drinking water fountain adorned with a water filter
 Rust-proof and non-breakable crockery
 Most of the fast food outlets in India are

The growing segment comprises of formats like fast food chains, cafes and fine dining restaurants.
Two sub segments of the fast food market are the Pizzas and Burgers. These have now developed
into part of the nation’s eating habits. Their share is continuously growing with the key global
brands such as Dominos, McDonalds and KFC making their marks quickly. The chains have had
no problems accommodating different menus for the Indian consumer. For example, McDonalds
will not sell beef burgers but instead lamb and chicken burgers and have a larger selection of
vegetarian food compared to the West.

Changing behavior’s of the Indian consumer have no doubt contributed to the success. Some of
the brand outlets first started only in major cities such as Delhi and Mumbai. Now, they are
continuously expanding to cities like Pune, Surat, Ahmedabad, Rajkot, Nasik, Aurangabad,
Kolhapur, Chandigarh, Jammu, Chennai, Bhubaneswar, Goa and Bangalore, to meet major
demand.

The market is dominated by global players, specially in the organized fast food segment. Growing
trend of consumption of multi cuisines and increasing brand awareness has led to the increase of
global players. Organized modern formats like malls and supermarkets have also become a favorite
destination for the outlets. Larger companies are teaming up with small franchisors and mall
owners to promote their brand.

Fast food is one of the worlds largest growing food type. India’s fast food industry is growing by
40% a year and is expected to generate a billion dollars in sales by 2005.The multinational segment
of Indian fast food industry is up to rs. 6 bn, a figure expected to zoom to Rs.70bn by 2005. By
2005, the value of Indian dairy products is expected to be Rs.1, 00,000 million. In last 6 years,
foreign investment in this sector stood at Rs. 3600 million which is about one-fourth of total
investment made in this sector. Because of the availability of raw material for fast food, Global
chains are flooding into the country.

Major players in fast food are:

 McDonald’s
 KFC
 Pizza Hut
 Dominos pizza
 Nirulas

The main reason behind the success of the multinational chains is their expertise in product
development, sourcing practices, quality standards, service levels and standardized operating
procedures in their restaurants, a strength that they have developed over years of experience
around the world. The home grown chains have in the past few years of competition with the
MNCs, learnt a few things but there is still a lot of scope for improvement.

We have applied our learning experience from other countries in all the processes including
consistency, marketing, distribution and training to the local market conditions. However, the
domestic chains are at an advantage since they understand the Indian consumer behavior and
eating habits and their product offerings have been tailored accordingly.

REASON FOR EMERGENCE

  GENDER ROLES: gender roles are now changing. Females have started working
outside. So, they have no time for there home and cooking food. Fast food is an easy way
out because these can be prepared easily.

 CONSUMER SOPHISTICATION AND CONFIDENCE: consumers are becoming

more sophisticated now. They do not want to prepare food and spend there time and
energy in house hold works. They are building there confidence more on ‘ready to eat
and easy to serve’ kind of foods

 PAUCITY OF TIME: people have no time for cooking. Because of emergence of

working women and also number of other entertainment items. Most of the time either
people work or want to enjoy with their family.

 DOUBLE INCOME GROUP: emergence of double income group leads to increase in

disposable income. Now people have more disposable income so they can spend easily in
fast food and other activities.

 WORKING WOMEN: working women have no time for cooking, and if they have then
also they don’t want to cook. Because they want to come out of the traditionally defined
gender roles. They do not want to confine themselves to household work and upbringing
of children’s.

MACRO-ECONMIC FACTOR AFFECTING THE INDUSTRY

 Increase in per capita income of the Indian citizen.

Has allowed them to spend money in there own hand results into more spending in
comforts and entertainment and thus results into more spending on fast and ready to serve
kind of foods.
 Economic growth:
With economic liberalization of 1991, more foreign and private industries entered the Indian
market that result into income generation of the Indian residents- more income results into
ore savings, more saving means more investment , more investment results into overall
growth of the economy.
 Large population:
Indian being a second largest country in terms of population possess large potential market
for all the products/services. This results into entry of large number of fast food players in the
country.
 Relaxation in rules and regulations :
With the economic liberalization of 1991, most of the tariff and non tariff barriers from
indian boundaries are either removed or minimized, this helped significantly the MNC’S to enter
in the country.
 Growth in number of women’s in the work force:
Increase in the number of women work force in the recent years because of the improvement
in the literacy rate and also because of the large number of jobs are now available because of
the entry of foreign and private players in the Indian market .
CHALLENGES FOR THE INDUSTRY

 western breakfast food: Generally, Hindus avoid all foods that are believed to inhibit
physical and spiritual development. Eating meat is not explicitly prohibited, but many
Hindus are vegetarian because they adhere to the concept of ahimsa. Those seeking
spiritual unity may avoid garlic and onions. The concept of purity influences Hindu food
practices. Products from cows (e.g., milk, yogurt, ghee-clarified butter) are considered
pure. Pure foods can improve the purity of impure foods when they are prepared together.
Some foods, such as beef or alcohol, are innately polluted and can never be made pure. But
now, Indians are switching to fast food that contain all those things that are considered
impure or against there beliefs. Some traditional and fundamentalist are against this
transformation of food habit and number of times they provoke their counterparts to revolt
against such foods. And that is what happened when McDonald’s decided to enter the
complexity of Indian business landscape, counting only on its “fast food global formula”,
without any apparent previous cultural training.

 Emphasis on the usage of bio-degradable products: Glasses, silverware, plates and cloth
napkins are never provided with fast food. Instead, paper plates and napkins, polyurethane
containers, plastic cups and tableware, drinking cartons or PET (polyethylene
terephthalate) bottles are used, and these are all disposable. Many of these items are tossed
in the garbage instead of being recycled, or even worse, merely thrown on the ground. This
burdens nature unnecessarily and squanders raw materials. In order to reduce soil and water
pollution, government now emphasis more on the usage of bio-degradable products.

 Retrenchment of employees: most of new industries will be capital intensive and may
drive local competitors, which have more workers, out of business.

 Profit repatriation: Repatriation of profits is another area concern for Indian economy.
As when multinational enters the any countries, people and government hope that it will
increase the employment rate and result in economic growth. However, with the
multinational operation, host country experiences these benefits for a short time period. In
long run neither employment increases (because of capital intensive nature of MNC’s) nor
it increases the GDP or GNP because whatever MNC’s earn they repatriate that profit back
to their home country.

PROBLEMS OF INDUSTRY

 Legislating laws in order to keep check on the fast food industry and it is emphasizing
more on the usage of bio-degradable and environment friendly products. But associated
with this issue is the problem that fast food player faces - the cost associated with the
 environment friendly product. They cost much higher then the normal products that
companies uses for packaging or wrapping their products.

 Economic objectives: To balance a society’s expectation regarding environment with the

economic burden of protecting the environment. Thus, one can see that one side pushes
for higher standards and other side tries to beat the standard back, thereby making it a
arm wrestling and mind boggling exercise.
 Health related obesity:
Density and food with high density causes people to eat more then they usually need.
¾ Low calories food: Emphasis is now more on low calorie food. In this line McDonald
has a plan to introduce all white meat chicken Mcnuugget with les fat and fewer calories.

TRENDS IN INDIAN MARKET

 children’s as their major customers. They introduce varieties of things that will attract
the children’s attention and by targeting children’s they automatically target their parents
because Children’s are always accompanied by their parents.

 Low level customer commitment: because of the large number of food retail outlets
and also because of the tendency of customer to switch from one product to other (as
food is one areas where customer wants to try everything new that comes to the market),
this industry faces low level customer commitment.

 Value added technology services: there is continuous improvement in the technology as

far as fast food market in India is considered. The reason behind that is food is a
perishable item and in order to ensure that it remain fresh for a longer period of time,
there is a need for continuous upgradation in technology. Earlier, Indian people prefer
eating at home but now with the change in trend there is also need for improvement and
upgradation of technology in food sector.

 Attracting different segments of the markets: outlets are introducing varieties of

products in order to cater the demands of each and every segment of the market. They are
introducing all categories of product so that people of all age, sex, class, income group
etc can come and become a customer of their food line.
CHAPTER-II
RESEARCH
DESIGN
 CHAPTER-2
RESEARCH DESIGN

TITLE OF THE STUDY

“A Study on Financial and Operating Performance of Kanara District Central Co-
Operative Bank Ltd. Sirsi, Uttar Kannada District”

2.1 STATEMENT OF THE PROBLEM

The KDCC bank has played vital position in rural development and in agricultural development.
The KDCC Bank offers different types of loans to number one credit co-operatives, small business
group, agro-industries, co-operative cold storage and other co-operative organization. At present
KDCC bank Ltd. Sirsi dealing with quantity of troubles such as monetary management, new
authorities coverage regarding loan centers, mounting non-performing asset, low rate of interest
affected on low profitability of banking sector, low level of recovery of loans etc.

In the recent study I have decided to make a analysis and interpretation of demographic profile of
customers, examine the aspect of financial plan and study of non-performing asset of KDCC Bank
Ltd., Sirsi. So I hope that the study will beneficial in improvement and development of not only
KDCC Bank Ltd., Sirsi however overall DCC bank in Karnataka in addition to in India.

2.2 SIGNIFICANCE AND NEED OF THE STUDY

The KDCC Bank Ltd., Sirsi is one of the institutions in co-operative credit structure in the region,
which is very beneficial to satisfy the requirement of small farmers, businessman and other
economically weaker segment of the society. DCC banks are trying to solve the economic problem
of lower middle income group of people and thereby contributing to the economic development of
the country. In latest years the monetary device has gone through numerous modifications, which
could affect the economic performance of DCC banks. A need at the present juncture has created
the necessity to study the financial and operating performance of KDCC Bank Ltd., Sirsi.

2.3 SCOPE OF THE STUDY

The study is undertaken in KDCC Bank Ltd. Sirsi which is located in Uttar Kannada district. A
brief information regarding availability of products and services, area of operation, infrastructure
facilities has been given. The study mainly intends to study the financial and operational
performance of KDCC Bank Ltd., Sirsi. This study hence to analyze the financial and operational
performance of selected co-operative banks for sample study.

2.4 OBJECTIVES OF THE STUDY

Following are the main objectives of the study;

1. To study the demographic profile of customers of the KDCC Bank Ltd., Sirsi.
2. To examine the aspect of financial plan and performance of the KDCC Bank Ltd., Sirsi.
3. To analyze the position of the credit risk and NPA management in KDCC Bank Ltd., Sirsi.

2.5 RESEARCH METHODOLOGY

A research methodology involves specific techniques that are adopted in research process to
collect, assemble and evaluate data. It defines those that are used to gather relevant information in
a specific research study. Surveys, questionnaire and interviews are the common tools of research.

The way to achieve the objectives of the study is to follow many steps. Firstly, choose the right
type of research method which was descriptive analysis and inferential analysis research types.
Secondly choose sample size to collect data and information. Thirdly, primary data were used as
the main source of information. Finally, questionnaire was distributed as an ending step for
collecting primary data and solving the problem.
RESEARCH DESIGN – DESCRIPTIVE ANALYSIS AND INFERENTIAL
ANALYSIS

When a research is carried-out, it follows a definite pattern or plan of action throughout the
procedure i.e., since the problem identification to the report preparation and presentation. This
definite pattern or plan is called “research design”. It is a map that guides the researcher in
collecting and analyzing the data. Descriptive analysis is the most common type of analysis which
helps in simplifying large amounts of data in a sensible way. Each descriptive analytic reduces lots
of data into simpler summary. Whereas inferential analysis is the process of selecting and using
sample statistics to draw inference about population parameter based on subset of it the sample
drawn from the population. The data collected through this research types is more relevant and
comprehensive. It can provide and describe the critical features and information about the
population. Also, it can have in-depth information about research problem.

The design of the research is very rely on what data to be collected, how to analyze the data and
question asked on questionnaire. According to the objectives of the study, questionnaire was
conducted to collect the data about financial and operating performance of KDCC bank ltd., Sirsi.
After the survey was finished and all data gathered, some of the questionnaire may not be
acceptable for the research due to lack of answer for important questions. In most of the cases it
enables the researcher to reduce the amount of data collected in order to keep the result reliable.
The population was customers of the KDCC bank because they would be right respondent to give
an insight about financial and operating performance of KDCC bank ltd., Sirsi. So the respondents
were asked the questions which help to know about the financial and operating performance of
KDCC bank and questionnaire was developed according to the customers age, income level, types
of account, customers knowledge regarding aspect of financial plan, NPA, credit risk etc.

SAMPLE PLAN
Sample plan that is used to select the sample from the population was random convenient sampling
and samples were selected from customers of the KDCC bank ltd., Sirsiwith different age group.

SAMPLE SIZE

Sample size was around 121 respondents which is enough to measures the financial and operating
performance of the KDCC Bank Ltd., Sirsi

TYPES OF DATA SOURCES

Basically, there are two types of data:

1. Primary data
2. Secondary data

Primary data are those data collected for the first time, taking a sample, representing the
population. It is not a published data, it is a problem specific data collected by the researcher.
Secondary data are those data, which are already published. There are various sources of secondary
data such as magazines, websites, journals, reference books. The data collection is carried out in
this project by the way of both primary and secondary source of data.

Questionnaire development is the critical part of primary data collected method. For this prepared
a questionnaire in such a way that it will be able to collect all relevant information regarding the
project. The questionnaire must not be very long so that respondents will not get bored. The data
collection was done over a period of 3 weeks which was done by online questionnaires. It consists
of set of questions presented to respondents. Due to its flexibility, the questionnaire is by the far
most common method used to collect primary data.

2.6 LIMITATIONS OF THE STUDY

Despite all possible efforts to make the analysis more comprehensive and scientific, a research of
the present kind will be bound to have certain limitations.

 The study is done for short period because of limited time.

 The present study is limited to only KDCC Bank Ltd., Sirsi.
 As a majority of customers are staff of the bank, they might be biased in giving the
information.

2.7 REVIEW OF LITERATURE

The review of literature is an essential task of the research work. It assists to understand the
significance, historical past and present day position related to subject chosen for the research
work. So it is necessary to review all kinds of literature related to the subject matter.

 Shantanu Bose (2014) studied title on “Urban Co-operative Banks in India: Current
Scenario”. He writes that urban co-operative banks play important role in the
development of small and medium industries in urban areas. This paper focuses on
present day scenario of urban co-operative banking system in India, by mentoring its
needs, its brief history, its current structure among its co-operative credit society,
improvement in financial situation of USB’s and also highlights the challenges faced
by the USB’s and its future prospects.

 JyotiGupta, Suman Jain (2012) studied the title on “A Study on Co-operative Banks in
India with SpecialReference to Lending Practice”. They have studied 200 respondents
in order to understand kinds of loan options, services customary of co-operative banks,
efficiency, lending practice as well as delight the level of the customers on the subject
of the co-operative banks. This studied uses descriptive research so one can pick out
the lending practice of bank and find out the level of customer satisfaction and
recommended measures to improve performance of USB in India.
 Sahitha A.C and Philo Francis (2014) studied title on “Evaluation of District Co-
operative Banks in Kerala: On The Basis of Agricultural Credit”. They identified that
district co-operative bank provides short and medium term loans for agriculture and
non-agriculture operations. 14 DCBs are operating successfully in Kerala under the
guidance of Kerala state co-operative bank in Kerala. Study found that evaluation of
DCBs in Kerala through on the basis of agriculture credit.

 Anil kumarSoni and H.P. Singh Saluja (2013) studied title on “Financial Ratio Analysis
of DCC Bank Limited Rajnandgaon a Case Study”. The one of ratios indicating
liquidity, profitability, and solvency are considered in an effort to understand the
monetary role of the bank. The financial role of this institution analyzed by using ratio
analysis strategies and its far discovered that the solvency, liquidity and profitability
are satisfactory. The performance ratios indicated a medium degree of the expenditure
over the gross earning. Profitability of the financial institution changed into very low
due to the heavy over dues and low rate of recovery.

 Preety, Dr. D.K. Maheshwari (2017) studied the title on “A study of Management of
Non-Performing Assets in Co-operative (DCCBs) of Uttar Pradesh”. They analyze that
a well-built co-operative banking sector is essential for countries economy. NPA shows
performance of co-operative banks. A high level of NPAs suggests high probability.
The difficulty of NPA affecting the co-operative sector in addition to the entire
economy. The paper deal with understanding the NPA management of district central
co-operative banks of Uttar Pradesh.

 Bharadvaj, Priyanka, &RekhaRaheja (2011) studied the title on “Role of Co-operative

Banks in Agriculture Credit”. These researchers identified from this study the total
amount of the agriculture credit is increased from year to year in this studied institution
in Haryana, but shares in the agriculture credit of the bank decreased from 37.91 in
2001-2002 to 2006-2007. It also studied that after compare to other financial institution
of India, the level of NPA in the co-operative bank also high. So that compete with
other banks and to survive strongly in the market, bank should control its NPA.
 Prof. VirenChavda (2015) studied the title on “Study on Problems and Issues faced by
Co-operative Banks in Indian Economy”. In this research paper focuses on problems
and issues before the co-operative banks. Co-operative in spite of being largest
movement in the world and strong link, if faces the variety of problems and issues like
lack of internal resources, insufficient infrastructure, competitive tier structure, lack of
accountability, dormancy, low level of professionalism, excessive government control,
political interference, lack of human resource development, lack of education and
training etc.

 K. Sudhalakshmi and K.M. Chinnadorai (2014) studied the title on “Green Growth
Strategy- Indian Co-operative Banks”. They write that our government and society as
a whole has responsibility to save this earth from ecological disaster. This study realize
that co-operative particularly the banking and credit sector, too have a role to play in
this task of immense important through an action plan and strategy.

 KshitijDeshmukh (2015) studied the title on “Development of Co-operative banks”. He

analyzed quality Co-operative banks involved in local growth and advancement of
middle-class people’s financial status. In the financial system, co-operative banks play
a very important role. The cooperative banks in India are part of today’s money market.

 R. Renuka and C. Elamathi (2013) studied the title on “Development of Co-operative

Banking in India”. In this study performance of bank has been evaluated in terms of
loans disbursement year wise as well as district wise, membership, share capital, total
advances, total overdue, present recovery and so on. Study the progress referring to
revival of rural co-operative

 Indira R.(2009) studied the title on “A study on Financial Performance of Co-operative

Banks in Tumkur District”. Her research paper, attempts to recognize the co-operative
banking performance by means of investigating the financial overall performance of
co-operative banks. Research have a look at makes a specialty of reading the monetary
overall performance of selected co-operative banks in Tumkur District. For this motive
applicable statistics during 8years had been accumulated from annual reviews of the
co-operative banks. Financial performance is studied using ratio evaluation, percentage
analysis, trend analysis, one-way ANOVA, chi-square test etc.
CHAPTER-III
PROFILE OF
SELECTED
DOMAIN
 CHAPTER-3
PROFILE OF SELECTED DOMAIN

COMPANY PROFILE
3.1 PROFILE OF THE KDCC BANK LTD.

One of the major sectors for the return is the agriculture. It is the spine of our economy. For these
agriculturists main sources of the finance is provided by the co-operative banks. These banks are
one of the tools to find out the agriculture situation and economy growth.

Uttar Kannada District is consists of largely consists of small and medium farmers. They involve
continuous support to them for a different type of agriculture activities. For this reason KDCC
bank is making serious effort for the development of these farmers.
3.2 ORIGIN OF THE KDCC BANK LTD.

After getting some knowledge of decade, in 1920 leading co-operative of Uttar Kannada district
get together in the chamber of P.B. Haigh who was the district collector at Karwar and determined
to make an organization about the primary co-operative. Basic objective was to provide finance to
the needy people. After discussing a lot, on 14 June 1920 central bank was build and registered.
Bank was started at the preliminary investment of Rs.2505. More or less all the Taluks were stand
for the encouragement of this bank.

3.3 GROWTH OF KDCC BANK LTD.

KDCC bank is developed from decade to decade from last 99years.

1. DECADE (1920-1930):
For the rural indebtedness co-operative gave the response. During this decade
ShriRaoBahudur, P.N Pandit started the bank. It was the decade where most of the problem
were raised such as raising the funds; deposits collection etc. In this decade turnover of
bank was very less. The bank started two branches in the district. They are Karwar and
Kumta.

2. DECADE (1930-1940):
In this decade co-operative banks were suffered from universal depression. In this decade
from the agriculture was go down and the rural farmers were put up with the debt. In 1935-
36 loan advanced laid a hand on the most minuscule figure Rs.17384. In this decade bank
was undergo loss of Rs.160. After this experience bank take decision to make finance even
to the individuals in 1939.

3. DECADE
(1940-1950In the entrance level of this decade also depression effect is continued on the
bank. But the overdue on the agriculturist was decreased because of rise in the prices of
 agricultural products due to the World War 2 i.e. from 49.4% in 1939-40 to 20.5% in 1942-
43.

4. DECADE (1950-1960)
This decade is the ultimate decade in the history of co-operative banks as well as nation.
In this time nation got the independence and bank also had its own constitution. In this
stage bank started to understand the objectives of economic growth. In 1952 a planning
commission was build to commence yield loan system. At the end of this decade bank saw
the re organization since RBI made several schemes.

5. DECADE (1960-1970)
In this 5th decade of co-operative services, bank made several new programs for
mobilization of fund and diversification of activities such as providing finance to the
irrigation, consumer co-operative, etc. And for opening of a soil testing laboratory, bank
provided the fund.

Growth After 1970

In November 1970, bank accepted to provide fund to those feasible farmers who are recognized
by SFDA from the district. After it expand to both marginal farmer and agricultural labour of the
district in 1972. This scheme includes that area loan renovated to terms loans repayable by
3years.Chamber of commerce, agriculture and industry were setup after a number of meetings in
the various parts of the district and bank turned into client by contributing Rs.5000.

MODERN DEVELOPMENT

In past few years bank has taken several measures to development of its stock such as insurance
schemes, employee remuneration, etc are introduced. And bank also started to provide medical
facilities, house loans and some other benefits to the employees. It also starts to grant fund to
different sector such as fishery, animal husbandry, etc.
3.4 OBJECTIVES OF KDCC BANK LTD

1. To provide the financial directly to the individual farmers.

2. To build up and co-ordinate the officiated societies.
3. To increase the funds for providing it to the individuals and other societies.
4. To make financial support to the co-operative societies which are registered under
Karnataka SouhardhaSahakari Act 1960 with the support of NABARD/Registrar other
competent authorities.
5. To receive foe secure custody ornaments and other securities.
6. To act as assessment centre for the additional fund of other securities.
7. To offer safe deposit vault.
8. To organize for the study visit to encourages co-operative performance in the district with
the support of the Registrar
9. To start the some more branches, godown offices in required area for increasing the
efficiency in work performance.
10. To put into practice of the economic policies issued from the Government time to time.

3.5 VISION OF THE BANK

The bank shall provide the best of services possible and use best practices in the field of co-
operative banking and always be proactive in meeting the changing demands of its customers, the
public, the stakeholder, and the government. And be in the forefront of offering newer, innovative
and useful value added products and puts its fund, resources and expertise to the best use.
3.6 MISSION OF THE BANK

To play a prominent role in the economic development of the district and particularly the
agricultural community and other weaker section of the society, to perform traditional functions
of a common bank and implement new social goal and new techniques of management.

3.7 PRODUCTS AND SERVICES OF KDCC BANK LTD.

  Saving account
 Crop loan
 Crop insurance scheme
 Vehicle loan
 Equipment loan
 Cash certificate

3.8 INFRASTRUCTURAL FACILITIES

 The head office is located in “New Market Yard Sirsi” which has an own building.
 Bank preserves the good communication system within the bank as well as outward of the
bank it is assist or equipped with telephones, computers with the internet connection.
 KDCC Bank has good fixtures, well equipped hall, fans, computer system, etc.
 One of the most important and special aspect of KDCC Bank is that they have their own
vehicles

3.9 ACHIEVEMENTS OF THE KDCC BANK LTD

1. The KDCC bank is established in the year 1920. It means the bank already completed
valuable 95 years successfully in North Kanara District.
2. KDCC bank is the first DCC bank which is licensed by the RBI
3. The KDCC bank still keeping a class in audit classification.
4. In 1960 bank awarded for its best services to the public.
5. From 1966 to 1970, for 4 consecutive years bank is awarded as best working DCC
bank.
6. In 1996-97 bank got best all round performance award in DCC Belgaum Division
from the CP-OP department
7. In 1995-96, 1996-97 & 2000-01 KDCC bank got best performing DCC bank award
from NABARD
8. In last 37 years, for 33 times bank got award from Apex bank.
 9. In 2006-07 bank got second prize for maintaining a class in audit classification from
apex bank.

3.10 MANAGEMENT

The board of directors including the following:

 Managing Director of the bank who is also Chief Executive of the bank.
 From the Karnataka state co-operative Apex Bank, one agent.
 From the district co-operative societies, the deputy registrar as the Government nominee
 And from every Taluk, one representative is nominated from amongst themselves in
different fields,
Karwar, Sirsi, Yellapur, Siddapur, Kumta, Honnavar, Bhatkal, Mundgod, Haliyal, Ankola,
Supa
Such as:
 From the affiliated primary agricultural credit co-operative society
 From the affiliated Taluka Agricultural Produce Marketing Co-operative Societies
in the district
 From affiliated urban co-operative bank and non-agricultural co-operative credit
societies in the district
 Board of Directors

President Vice-President Elected Directors Govt. Director Managing

Director

AGM (loans & AGM (NFS) AGM (EST) AGM (Planning AGM
Supervision) & development) (Account &
Operation)

Division Officer

Senior Manager

Junior Manager

Senior Clerk

Junior clerk

Drivers

At tenders

Peons

Meeting of Director
 Generally board will conduct the meeting for every once in a quarter. But in case if any important
matter to be discussed, it calls the meeting. Majority votes are the solution of any query. This is
the meeting of seven members. This board meeting is conducted by Executive committee or by
the chairman and his absence by the vice-chairman.

Powers of Board Management

The entire administration of the Central Bank shall vest in the Board of Management. Amongst
other things, the powers of the Board are:

I. To funding loans to its member

II. To make the investment of the banks fund as per the rules.
III. To examine the annual budget in front of the body
IV. To raise the finance with regard to deposits, debentures, loans and for determines the terms.
V. To submit the annual report and other financial statements to the General Body
VI. To make supervision of allied societies
VII. To hire, removal, dismiss or further action of the employees as per the rules.
VIII. To conduct the regular general meeting.
IX. To give sanction for extension of loans which to be paid
X. To make strengthen the bank from time to time, and decide about the salaries and other
benefits of staff.

Area of operation
The Kanara District Central Co-operative bank is a federation of primary agriculture credit
societies operating in the whole of district Uttar Kannada.The head office of the bank is situated
in the New Market Yard Sirsi.The area of operation of the bank is confined to Uttar Kannada
district consisting of 12Taluks. There are 48 branches in the district.

Sl.No BRANCHES ESTABLISHED

1. Kumata 21-02-1941

2. Siddapur 05-11-1951
3. Bhaktal 07-03-1956
4. Haliyal 15-03-1958
5. Karwar 30-03-1958
6. Mundgod 15-11-1959
7. Ankola 28-07-1962
8. Honnavar 07-10-1965
9. Dandeli 21-11-1967
10. Yellapur 01-01-1961
11. Manchikeri 12-06-1969
12. Hullekal 05-03-1970
13. Herror 24-04-1970
14. New Market Yard Branch 19-06-1970
15. Kansur 21-10-1971
16. Castle rock 20-12-1971
17. Gullapur 21-02-1973
18. Kirwatti 24-03-1973
19. Tattihalli 21-05-1973
20. Salkod 22-05-1973
21 Jagalbet 11-06-1973
22. Kumbarwad 12-06-1973
23. Hiregutti 09-06-1974
24. Kavalakki 23-10-1974
 25. Sadashivagad 08-05-1976
26. Murudeshwar 19-06-1997
27. Heggarani 24-06-1977
28. Banavasi 26-11-1977
29. Ulga 11-03-1978
30. Gokarna 06-04-1981
31. Sirsi 01-07-1981
32. Itagi 03-07-1982
33. Ramanagar 21-04-1986
34. Bankikodla 28-05-1987
35. Ambewda 06-02-1988
36. Murkwada 28-05-1990
37. Baada 27-04-1992
38. Majalli 02-07-1993
39. Mirjan 23-01-1998
40. Karki 23-01-1998
41. Kadra 20-08-1998
42. Kalleshwara 25-02-1999
43. Salkani 05-01-2000
44. Joida 22-06-2000
45. APMC Yard Siddapur 27-11-2000
46. Women Branch Sirsi 21-03-2001
47. Haliyal 07-05-2010
48. J.N.RoadDandeli 03-08-2013

Membership pattern
The membership of the KDCC bank is restricted. It means that, those co-operative societies which
are registered within the Uttar Kannada district as per 1 (4) can become the member. Other than
societies, any individual who is the local resident and above the 18years, can also become the
member. Each member of the bank should have at least one share of the bank. Normally farmers
are the share owners of the societies, and in KDCC bank these societies are the share owners. As
on 31.03.2015 there are 11303 associate members and 460 co-operative societies.

3.11 COMPETITOR’S INFORMATION

The KDCC bank is basically a co-operative bank catering to the needs of agriculture and small
scale industries. Due to changing economic to the organization is facing stiff competition. As far
as interest rate concerns, which are governed by RBI and NABARD an aggressive approach is
adopted by commercial banks, Regional Rural Banks and co-operative societies.

The major competitors of the KDCC bank are:

 Commercial banks like Canara Bank, Corporation Bank, etc.
 Regional rural banks like Karnataka VikasGrameena Bank etc.
 Co-operative Societies like Akshaya Co-operative society etc.
 Money lenders

3.12 SWOT ANALYSIS

SWOT analysis one of the tools to understand the company’s condition. SWOT means Strength,
Weakness, Opportunities and Threat. It means an analysis about the company along with its near
competitor and its market. A valuable SWOT analysis makes the company much stronger and help
to understand its faults.

Strength:
Bank possesses the following strength:
 Bank has skilled staff
 Bank has branches throughout the district
 Bank has low NPA ratio
 It has good capital adequacy ratio
 The bank has its own vehicles

Weakness:

 Operation of the bank is limited to Uttara Kannada District only.

Opportunities:

 Scope for the bank to garnt more credit with the development of agriculture sector, small
scale industries, SHGs.
 Public more aware about banking system, so financial inclusion can be made.
 The district is rich with are nut as well as paddy which make the bank to increase its
business.
 The bank has only 6ATMs. So it can expand its ATMs throughout the district.

Threats:

 There is a tough competition from the public as well as private sector banks.
 Nationalized banks are decentralized where the KDCC bank is centralized
 There is serious impact o the interest rate with the changing economic policies of the
government.
 The government funds are deposited only with nationalized bank.
3.13 FUTURE GROWTH AND PROSPECTS
 From the few years service sector is at the booming stage and DCC bank already got the
acceptance from RBI to enter the national market.
 Bank also made a plan to expand its branches.
 Bank started to adopted technical skills which make the bank to develop high in this
competitive environment
 Bank already joined with ING VYASA and national insurance company for providing
insurance facility even for agriculturist and their families.
 The bank thinking about providing finance even to the non-agriculturist.
 The bank is aiming at conducting farmer fest.
 CHAPTER-IV
DATA ANALYSIS
AND
INTERPRETATION
 CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

4.1 INTRODUCTION:

Analysis and interpretation is the process by which, the data is collected through qualitative
research and more information is collected to get the clear idea about the topic, to understand the
topic better. It helps to get the clear picture and obtain more knowledge about the topic. Data
analysis is the process of inspecting, cleansing, transforming and modelling data with the
goal of discovering useful information, informing conclusion and supporting decision-making.
Data interpretation refers to the implementation of processes through which data is reviewed for
the purpose of arriving at an informed conclusion. The interpretation of data assigns a meaning to
the information analysed and determines its signification and implications.

The data analysis and interpretation in the study is about the investment pattern of the individual
investor. The data analysis is carried out through the way of descriptive analysis. Percentage
analysis is used in the study. In this study the interpretation is about the, investor perception of the
investment that they do. The data is been collected and Graph is been developed through SPSS
tool. With the help of graph analysis and interpretation is been carried out. By creating of graph
we get the clear picture about the topic.

4.2 DESCRIPTIVE ANALYSIS ON SAMPLE:

They provide simple summaries about the sample and the measures. Together with simple graph
analysis, they form the basis of the virtually every quantities analysis of the data. When the raw
data is collected, to get the clear understanding of the topic the whole data is converted into
percentage form for easy comparison of all the data given. The process of converting the raw data
in to percentage form is known as percentage analysis. By applying of the percentage analysis, it
creates the table with frequencydistribution and the percentage representing the particular topic.
Descriptive analysis refers to the brief description about the collected data
 Table 4.2.1 Customers Age Group ofKDCC Bank

Age Frequency Percentage

21-30 years 40 33.1%

31- 40 years 28 23.1%

41-50 years 29 24.0%

51 years and above 24 19.8%

Total 121 100.0%

Age

19.85
33.1%

21-30 years
31-40 years
24.0%
41-50 years
51 years and above
23.1%

4.2.1 Graph showing the age group of customers of KDCC Bank

Interpretation:
From the above table 33.1% respondents are 21-30 years of age, 23.1% of the respondents are of
31-40 years of the age, 24.0% respondents are between the age group of 41-50 years, and
19.8%respondents are of 50 years and above. The figure shows that most of the customers are
youngest aged people compared to other aged people.
 Table 4.2.2 Gender of Customers of KDCC Bank
Gender Frequency Percentage
Male 59 48.8%
Female 62 51.2%
Total 121 100.0%

Gender of Customer of KDCC Bank

70

60

50

40

30

20

10

0
Male Female

4.2.2 Graph showing gender of customers of KDCC bank

Interpretation:
From the above table, 48.8% of the respondents are ‘Male’ and 51.2% of the respondents are
‘Female’. Out of 121 respondent maximum number of respondents are Female.
 Table 4.2.3 Annual Income of Customers of KDCC Bank
Annual Income Frequency Percentage
Up to Rs.100000 56 46.3%
Rs.100000-Rs.300000 16 13.2%
Rs.300000-Rs.500000 34 28.1%
Rs.500000 and above 15 12.4%
Total 121 100.0%

Annual Income
Frequency Percentage

46.30% 13.20% 28.10% 12.40%

56 16 34 15

4.2.3 Graph showing annual income of customers of KDCC Bank

Interpretation:
This graph indicates that 46.3% of the customer’s annual income level is less than Rs.150000.
About 13.2% of customer’s income level between Rs.100000-Rs.300000. This is followed by
Rs.300000-Rs.500000 which is 28.1% and 12.4% for annual income of Rs.500000 and above. This
is about income level of customers and it was found that most of the customers income level was
up to Rs.100000.
 Table 4.2.4Types of Bank Account Hold by the customers of KDCC Bank
Types of Account Frequency Percentage
Saving 72 59.5%
Recurring Deposit 14 11.6%
Fixed Deposit 17 14.0%
Current Account 15 12.4%
Others 3 2.5%
Total 121 100.0%

Types of Bank Account

12.4 2.5%

14.0%
Saving
Recurring Deposit
59.5%
11.6% Fixed Deposit
Current Account
Others

4.2.4 Graph showing different types of bank account hold by the customers of KDCC bank

Interpretation:
According to the respondents to the study (59.5%) 72 out of 121 have saving account, (11.6%) 14
have recurring deposit followed by both fixed deposit, current account (14.0%)17, (12.4%)15,
and (2.5%)3 out of 121 customers have other accounts in KDCC bank.
 Table 4.2.5 Customers Feelings When They Visit to KDCC Bank
Customers Feelings Frequency Percentage
Very happy 26 21.4%
Happy 35 29.8%
Normal 47 38.8%
Not happy 6 5.0%
Cannot say 6 5.0%
Total 121 100.0%

Customers Feeling

50
45
40
35
30 Percentage
25
Frequency
20
15
10
5
0
Very happy Happy Normal Not happy Cannot say

4.2.5 Graph showing customers feeling when they visit to the bank

Interpretation:
Out of the 121 responses taken from the customers of KDCC bank it is observe that 21.4% of the
customers feel very happy, 29.8% of the customers feel happy, 38.8% of the customers feel normal,
5.0% of the customers feel not happy and cannot say. From the above graph it is clear that most
of customer feel normal when they visit to KDCC bank.
 Table 4.2.6 Who Prepares Financial Plan For KDCC Bank
Who Prepares Frequency Percentage
Top Management of the Bank 97 80.2%
Other Agencies 24 19.8%
Total 121 100.0%

Who Prepares Financial Plan for KDCC Bank

120

100

80

60
Frequency
40

20

0
Top Management of Other Agencies
the Bank

4.2.6 Graph showing who approves financial plan for KDCC bank

Interpretation:
In the above table and graph we can say that, out of 121 respondents 97 i.e. 80.2% respondents
agree that financial plan of KDCC bank prepared by the top management of the bank. 24 i.e. 19.8%
respondents agree that other agencies prepared the financial plan for KDCC bank.
 Table 4.2.7 The Period for Preparation of Financial Plan of KDCC Bank
Period for Financial Plan Frequency Percentage
Annually 58 47.9%
Half-yearly 26 21.5%
Quarterly 25 20.7%
Monthly 12 9.9%
Total 121 100.0%

The Period for Preparation of Financial Plan

9.9%

20.7%
47.9%
Annually
Half-yearly
Quarterly
21.5% Monthly

4.2.7 Graph showing the period for preparation of financial plan of KDCC bank

Interpretation:
It is clear from the above graph that most of respondents agree that the financial plan prepared
annually i.e. 47.9%. 21.5% of respondents agree that financial plan prepared half-yearly, 20.7% of
respondents agree that financial plan prepared quarterly and 9.9% respondents agree that financial
plan prepared monthly.
 Table 4.2.8 Important Aspect of Financial Plan of KDCC bank
Important Aspect of Financial Plan Frequency Percentage
Determine financial objectives 37 30.6%
Formulating financial objectives 34 28.1%
Developing financial procedure 40 33.0%
Reviewing financial plan 10 8.3%
Total 121 100.0%

Imporatnt Aspect of Financial Plan

Determine financial objectives Formulating financial objectives
Developing financial procedure Reviewing financial plan

28.1%

.33.0%
41.3%

30.6%
8.3%

4.2.8 Graph showing important aspect of financial plan of KDCC bank

Interpretation:
From the survey it was found that the maximum respondents considered developing financial
procedure was most important factor, 28.1% respondents considered formulating financial
objectives as an important factor, 30.6% respondents considered determining financial objective
as an important factor, 8.3% respondents considered reviewing financial plan as an important
factor.

Table 4.2.9 The Level of Impact of Employees Productivity on Performance

of KDCC Banks, its Profitability, Progress and goodwill in the market
Level of Impact of Employees Frequency Percentage
Highest 30 24.8%
Higher 32 26.4%
High 29 24.0%
Average 25 20.7%
Poor 5 4.1%
Total 121 100.0%

The level of Impact of Employees on Performance of KDCC

Bank
Percentage Frequency

Poor 4.10%
5

Average 20.70%
25

High 24.00%
29

Higher 26.40%
32

Highest 24.80%
30

4.2.9 Graph showing The Level of Impact of Employees Productivity on Performance of

KDCC Banks, its Profitability, Progress and goodwill in the market

Interpretation:
It has been found that 24.8% of the respondent stated the level of impact of employees performance
of KDCC bank, its profitability, progress and goodwill in the market as highest where as 26.4% of
the respondents stated as higher,24.0% of the respondents stated as high, 20.7% of respondent
stated as average and only 4.1% of the respondent stated it as poor.

Table4.2.10 Step Bank Take to Control or Minimize The NPA of KDCC

Bank
Steps Taken By bank Frequency Percentage
Renewal of loan 40 33.1%
Proper recovery policy 61 50.4%
One time settlement 20 16.5%
Total 121 100.0%

Step Bank take to Contol or minimize the NPA

16.5%

33.1%
Renewal of loan
Proper recovery policy
One time settlement

50.4%

4.2.10 Graph showing step bank take to control or minimize the NPA of KDCC bank

Interpretation:
From the above graph it can see that out of 121 respondents, 33.1% have strongly agreedthat bank
control or minimize the NPA by renewal of loan, 50.4% have strongly agreed that step do bank
take to control or minimize the NPA by proper recovery policy where as 16.5% have strongly
agreed that bank control or minimize the NPA by one time settlement. From this it has been found
out that a majority of respondent agreed that step do bank take to control or minimize NPA by
proper recovery policy.
Table 4.2.11 KDCC Bank Have a Formally Approved Credit Risk
Management Policy
Formally approved credit risk management Frequency Percentage
policy
No 23 19.0%
Don’t know 45 37.2%
Yes 53 43.8%
Total 121 100.0%

KDCC Bank Have a Formally Approved Credit Risk

Management Policy
0%

19.0%

43.8%
No
Don’t know
37.2% Yes

4.2.11Graph Showing KDCC Bank Have a formally approved credit risk management
policy
Interpretation:
According to the respondents of the study 19.0% respondentsstated as no that means bank do not
have a formally approved credit risk management policy, 37.2% respondents stated as don’t know
where as majority of the respondent i.e. 43.8% stated as KDCC bank have a formally approved
credit risk management policy.

Table 4.2.12 Who Approves The Overall Credit Risk Management Policy of
KDCC Bank
Who Approves Frequency Percentage
Non-executive directors 23 19.0%
Independent directors 30 24.8%
Chairman of the board 41 33.9%
Chief executive officer 27 22.3%
Total 121 100.0%

Who Approves The Overall Credit Risk Management Policy

of KDCC Bank
45 41
40
35
30
30 27
25 23
20
15
10
5
19.00% 24.80% 33.90% 22.30%
0
Non-executive directors Independent directors Chairman of the board Chief executive officer

Frequency Percentage

4.2.12 Graph showing who approves the overall credit risk management policy of KDCC
Bank
Interpretation:
Here from above graph it can be clearly declared that out of 121 respondents 19.00% sure that non
executive directors approves the overall risk management policy where as 24.88% and 22.30%
respondents sure that independent directors and chief-executive officer approves the overall risk
credit management policy. The majority of respondents i.e.33.90% sure that chairman of the board
approves the overall credit risk management policy of KDCC bank.

4.3 INFERENTIAL ANALYSIS

Inferential analysis is about using data from sample and then making inference about the larger
population from which the sample is drawn. The goal of inferential analysis is to draw conclusion
from a sample and generalize them to the population. It determines the probability of the
characteristics of the sample using probability theory. The most common methodologies used are
hypothesis tests, analysis of variance etc.

Statistical Tool Used; Chi-Square for Independence of Attributes

(Non-Parametric Test)

Hypothesis I
Ho = There is no association between gender and annual income of customers of KDCC bank.
H1 = There is an association between gender and annual income of customers of KDCC bank.

Table 4.3.1 Chi- square test for association between gender and annual
income customers of KDCC bank6

Annual Income Chi-

Gender Total square P
Up to Rs.100000- Rs.300000- Rs.500000 value Value
Rs.100000 Rs.300000 Rs.500000 and above
Male 27 8 17 7 59
 Female 29 8 17 8 62 0.64 0.996
Total 56 16 34 15 121

Interpretation:
Since the P value is greater than 0.05 null hypothesis (Ho) is accepted at 5% level of significance.
Hence conclude that there is no association between gender and annual income of customers of
KDCC bank.

Statistical Tool Used; Chi-Square Test for Independent Attributes

(Non-Parametric Test)

Hypothesis II
Ho = There is no association between age and period for preparation of financial plan.
H1 = There is an association between age and period for preparation of financial plan.

Table 4.3.2 Chi-square test for association between gender and preparation of
financial plan
Period for preparation of financial Chi-
Age plan Total square P
test value
Annually Half- Quarterly Monthly
Yearly
21-30 years 25 6 5 4 40
31-40 years 14 9 3 2 28
41-50 years 11 6 11 1 29 17.105 0.047*

51years and 8 5 6 5 24
above
Total 58 26 25 12 121
Note:* Denotes significant at 5% level.

Interpretation:
Since P value is less than 0.05 null hypothesis (Ho) is rejected at 5% level of significance. Hence
we concluded that there is an association between age and period for preparation of financial plan.

Statistical Tool Used; One-Way ANOVA

(Parametric Test)

HypothesisIII
Ho=There is no significant difference between types of bank account with respect to specification
on credit risk of KDCC bank.
H1= There is a significant difference between types of bank account with respect to specification
on credit risk of KDCC bank.

Table 4.3.3 One-way ANOVA for significant difference between types of bank
account with respect to specification on credit risk of KDCC bank
Types of bank Mean Standard F value Sig.
account deviation
Saving 4.11 0.881
Recurring deposit 4.64 0.497
Fixed deposit 4.41 1.064 1.351 0.256
Current account 4.33 0.816
Other 4.33 1.155

Interpretation:
Since the P value is greater than 0.05 null hypothesis (Ho) is accepted at 5% level of significance.
Hence we conclude that there is no significant difference between types of bank account with
respect to specification on credit risk of KDCC bank.
CHAPTER-V
SUMMARY OF
FINDINGS,
SUGGESTONS,
CONCLUSION
 HAPTER- V
SUMMARY OF FINDINGS, SUGGESTIONS, CONCLUSION

5.1 FINDINGS

 BY the survey of the respondents, it is observe that the highest number of customers of
KDCC bank according to the age is 21- 30 years i.e. 33.1% and the lowest number of
customers are at the age of 51 years and above i.e. 19.8%.

 From the survey it is found that 48.8% of the respondents are male customers and 51.2%
respondents are female customers of KDCC bank.

 From the survey it is observe that 46.3%of the customer’s annual income is up to Rs.
100000. It shows that only low income people haveaccounts with the KDCC bank than the
high income people.

 According to the respondents to the study 59.5%of customers have the saving account
11.6% have recurring deposit, 14.0% have fixed deposit, 12.4% have current account and
only 2.5% customers have other accounts in KDCC bank.

 Out of the 121 responses taken from the customers of KDCC bank it is observe that 38.8%
customers feel normal when they visit to the bank and only 5.0% customer feel not happy.

 In the study we can see that 80.2% respondents agree that financial plan of KDCC bank
approved by the top management of the bank.

 Most of the respondents i.e. 47.9% agree that financial plan of KDCC bank prepared
annually.

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  From the survey it was found that the maximum respondents 33.1% considered developing
financial procedure as important aspect of financial plan of KDCC bank and only 8.3%
considered reviewing financial plan as an important aspect of financial plan.

 From the inferential analysis it is found that there is a significant difference between types
of bank account with respect to specification on credit risk of KDCC bank.

 By the survey we get to know that 50.4% of the respondents have strongly agree that step
do bank to control or minimize NPA of KDCC bank by proper recovery policy.

 Based on the survey, it has been found that 26.40% of the respondents stated the level of
impact of employee’s performance of KDCC bank, its profitability,progress and goodwill
in the market as higher, 24.80% respondents stated as highest, 24.00% respondents stated
as high, 20.70% respondents stated as average and only 4.1% of the respondents stated as
poor.

 Majority of the respondent i.e. 43.8% confirmed that KDCC bank have a formally
approved credit risk management policy.

 According to the respondents of the study 19.00% of the respondents sure that non-
executive director approves the overall risk management policy whereas 24.88% and
22.30% of the respondent sure that director and chief-executive officer approves the overall
risk management policy. The majority of respondent i.e. 33.90% sure that chairman of the
board approves the overall credit risk management policy of KDCC bank.

 From the inferential analysis it is found that there is no association between gender and
annual income of customers of KDCC bank.

 The finding obtained from inferential analysis show that there is an association between
age and period for preparation of financial plan.

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 5.2 SUGGESTIONS

 The bank should properly reveal the features of the products and services to the customers.

 The bank should implement recent methods of banking like internet banking, mobile
wallet, ATM, etc.

 The bank should plan to launch new schemes for attracting new customers and satisfying
the existing one.

 The bank should plan for expansion of branches.

5.3 CONCLUSION

The bank has already completed the 99 successful years. From its establishment, its aim is to
support farmers as well as poor people of the district. The bank is growing fast by covering 12
taluks of the Uttar Kannada district. Year by year banks deposit is increasing, which shows the
importance of the bank very well. As the district includes more number of farmers, bank is acting
as the major source of finance to them.

Bank implements new banking technologies to attract and retain old customers; it will help them
for making profit. There is an enormous need to implement various strategies for the development
such as implementation of new technology in KDCC bank: opening new ATMs in rural areas also,
prepare themselves for competition with other nationalized bank, introduction new financial
scheme to every division of the society etc. However, the bank is providing satisfactory services
to its customers.
The study recommends actions that could be implemented by the bank to ensure reliability in its
operations. The study may help decision makers to pay more attention on most important banking
activities that may be help in improving the financial performance and setting up plans and
financial strategies.

DSCASC Page 49
BIBLOGRAPHY

DSCASC Page 50
REFERENCES:

Books:

 B.S.Raman - Modern Banking

 J.K.Sharma - Business Statistics, Dorling Kindersley Pvt. Ltd

Journals:

 Anil kumar Soni and H.P.Singh Saluja (2013), Financial ratio analysis of DCC bank
limited Rajnandgaon a case study, International journal of accounting and financial
management research, Vol:3, Issue:1.
 Bharadvaj, Priyanka, & Rekha Raheja (2011), Role of co-operative banks in agriculture
credit: ZENITH international journal of business economics & management research,
Vol:1, issue:2.
 Dr.Rabi N Patra and Mahendra P Agasty(2013), Co-operatives, agriculture and rural
development, ISOR journal of humanities and social science, Vol:13, Issue:2.
 Indira R.(2009), A study on financial performance of co-operative banks in Tumkur
district, Asia pacific journals, ISBN:978-81-930411-0-9.
 Jyoti Gupta, Suman Jain (2012), A study on co-operative banks in India with special
reference to lending practices, International journal of scientific and research publications,
Vol:2, Issue:10
 K.Sudhalakshmi and K.M.Chinnadorai (2014), Green growth strategy Indian co-operative
banks, International journal of research in management, economic and commerce, Vol:4,
Issue :3.
 Kshitij Deshmukh (2015), Development of co-operative banks, ASM’s international E-
Journal on Ongoing research in management and IT.
 Preety, Dr. D.K. Maheshwari(2017), A study on management on non-performing assets
(NPAs) in co-operative banks (DCCBs) of Uttar Pradesh, 5th International conference
recent development in engineering science, humanities and management.
 Prof. Viren Chavda (2015), Study on problems and issues faced by co-operative banks in
Indian economy, International multidisciplinary research journal, Volume:2, Issue:1

DSCASC Page 51
 R.Renuka and C.Elamathi, (2013), Development of co-operative banking in India, Indian
journal of applied research, Vol:3, Issue:8.
 Rajivekumar and Dr.Jamindeep Kaur (2013), A study of co-operative bank in Haryana,
Gain jyothi journals, Vol:3, Issue:4.
 Shantanu Bose (2014), Urban co-operative banks in India: Current scenario, Abhinav
international monthly referred journal of research in management and technology, Vol:3,
Issue:6
 Sahitha A.C. and Philo Francis (2014), Evaluation of district co-operative banks in Kerala:
on the basis of agricultural credit, vistas, Vol:3, Pp:41-47.

Website

 http://en.m.wikipedia.org/wiki/coopeartivebanking
 http://en.m.wikipedia.org/wiki/internship
 www.kanaradccbank.com

DSCASC Page 52
ANNEXURES

DSCASC Page 53
QUESTIONAIRE:

1. What is your age?

 21-30yeras
 31-40 years
 41-50 years
 51 years and above

2. Your gender?
 Male
 Female

3. Annual Income
 Up to Rs.100000
 Rs.100000-Rs.300000
 Rs.300000-Rs.500000
 Rs.500000 and above

4. Which type of bank account do you hold?

 Saving
 Recurring deposit
 Fixed deposit
 Current account
 Others
5. How do you feel when you visit to your bank?
 Very happy
 Happy
 Normal
 Not happy
 Cannot say

DSCASC Page 54
6. How do you evaluate the role of employees in banking services in present competitive
scenario?
 Most crucial
 Very crucial
 Crucial
 Average
 Poor

7. What is the level of impact of employees productivity on performance of banks, its

profitability, progress and goodwill in the market?
 Highest
 Higher
 High
 Average
 Poor

8. Who prepares financial plan for your bank?

 Top management of the bank
 Other agencies

9. What is the period for which financial plan is prepared?

 Annually
 Half-yearly
 Quarterly
 Monthly

10. Is there proper coordination between financial plan of the bank with RBI guidelines and
Cooperative Act?
 Yes
 No

DSCASC Page 55
11. Which aspect of financial plan do you find important?
 Determining financial objectives
 Formulating financial objectives
 Developing financial procedure
 Reviewing financial plan

12. Which levels of management are involved in formulating financial plan?

 Board of directors
 Chairman/ MD
 Executive directors
 Functional head
 Division manager
 Branch manager

13. Do you know the concept of performance appraisal?

 Yes
 No

14. Do you agree the performance appraisal is necessary to judge the performance of
following:
 Management performance
 Business efficiency
 Financial growth
 Credit worthiness

15. What are the areas of performance appraisal related to your bank?
 Profit and profitability
 Wealth maximization
 Increase in efficiency
 Fund management
 Financial growth

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  Value addition

16. Is the NPA of your bank is as per RBI norms?

 Yes
 No

17. What step do bank take to control or minimize the NPA of the bank?
 Renewal of loan
 Proper recovery policy
 One time settlement
 Renewal of the loan

18. What are the financial working signal are related to NPA account of your bank?
 Default in repayment
 Continuous irregularity in the account
 Development of letter of credit or innovation of guarantee
 Determination in working capital position or in liquidity
 Incurring operating losses or net losses
 Raising level of bad debt losses

19. Does your bank have a formally approved credit risk management policy?
 No
 Don’t know
 Ye
20. Who approves the overall credit risk management policy in your bank?
 Non-executive directors
 Independent directors
 Chairman of the board
 Chief executive officer

DSCASC Page 57
21. Which the following practice have been used by your bank in managing the credit risk
below. Applying and using the rating/ measurement system in your bank on scale 1-5
where,

5 is to a very large extent

4 is to a great extent

3 is to medium extent

2 is small extent

1 is no extent at all

5 4 3 2 1

Specification on credit risk     

Credit insurance and credit     

derivative

Covenant/ Agreements     

Reduction on credit extend     

Risk based pricing     

Diversification     

Deposit insurance     

Credit referencing     

Use of software based techniques     

DSCASC Page 58
 PROGRESS REPORT 1

Sl. Particulars
No.
1 Name of the Student Swati Dinakar Chouhan

2 Registration Number 18CQCMD146

3 Name of College Guide Prof.V.S.HarshithBabu (18CQFG005)
4 Name and contact no of the Co-
Guide/External Guide N.A
(Corporate)
5 Title of the Dissertation “A Study on Financial and Operating
Performance of Kanara District Central Co-
opeartive Bank Ltd., Sirsi, Uttar Kannada
District”.
6 Name and Address of the The Kanara DCC Bank Ltd., Yellapur
Company/Organization where Beside B.S.N.L office, Sirsi Road, Yellapur,
dissertation undertaken with Date Uttar Kannada-581359
of starting Dissertation

7 Progress report : A brief note

reflecting ,Number of meeting
with Guides, places visited,
libraries visited, books referred,
meeting with persons, activities
taken up, preparations done for
collection and analysis of data
etc.,)
No. of meeting with guide-8
Journal referred:
1. “A study on Co-operative Banks in India
with Special Reference to Lending Practice”
2. “Benefits and Challenges Faced By the
Cooperative banks”
3. “ Development of Co-operative Banks”
4. “A Study on Financial Performance of Co-
operative Banks in Tumkur District”

Preparations done:
• Literature Review first draft submitted to
guide for correction.
• Collection of data Is completed
• Working on analysis of data

Signature of the Candidate Signature of the College Guide

DSCASC Page 59
 PROGRESS REPORT 2

Sl. Particulars
No.
1 Name of the Student Swati Dinakar Chouhan

2 Registration Number 18CQCMD146

3 Name of College Guide Prof.V.S.HarshithBabu (18CQFG005)

4 Name and contact no of the Co-

Guide/External Guide N.A
(Corporate)
5 Title of the Dissertation “A Study on Financial and Operating
Performance of Kanara District Central Co-
opeartive Bank Ltd., Sirsi, Uttar Kannada
District”.
6 Name and Address of the The Kanara DCC Bank Ltd., Yellapur
Company/Organization where Beside B.S.N.L office, Sirsi Road, Yellapur,
dissertation undertaken with Date Uttar Kannada-581359
of starting Dissertation

7 Progress report : A brief note

reflecting ,Number of meeting
with Guides, places visited,
libraries visited, books referred,
meeting with persons, activities
taken up, preparations done for
collection and analysis of data
etc.,)
No. of meeting with guide-10
Journal referred:5
Preparations done:
 Data is collected through
Structured Questionnaire.
 Data analysis is done though
structured questionnaire.

Signature of the Candidate Signature of the College Guide

DSCASC Page 60
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