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INTRODUCTION: Place your finger randomly on any Map of the world, is it developed, underdeveloped or a developing place. It is to find out one has to just study economic standing, if you find it to be a growing you can be sure that there in that place existence of excellent network of banks to offer very good banking services. Bank is nerve centers of economy and vital infrastructure facility they mobilize for accelerating economic growth. The progress of an individual or a society makes as whole depends on quality of banking services. But unfortunately in India as developing nation there is a lack of good network off banking to provide financial assistance to small farmers, small traders, & laborers as they don t come under previewed of commercial bank. This leads to a Co-Op credit movement in India has been essentially a child of distress. It is to emerge out of that turmoil and dissatisfaction which prevailing during last century. Her was a growing pressure of land rural debt was increasing, the economic position of famers were deteriorating, then Government felt that farmer could be helped through some type of Co-Op efforts. This leads to vast development of Co-Op societies in India to meet their set of mutual objective. Late Shri.Divandahadhur S. V. Mensinkai and Late Shri. Raobahabhur R. C. Artal are founded Karnataka Central Cooperative Bank ltd, Dharwad in the year 1916 with the share capital of Rs, 30000/under the provisions of Cooperative Act 1912. With an objective to provide financial assistance to agricultural and its allied activities. But in last 10 years the bank has advanced agricultural and nonagricultural loans without proper security. So the recovery was becoming granding halt, which severely has effected on the financial position. Such a position that bank was not able to pay depositors money at least meager amount. Though, the study of financial analysis of KCCB, Dharwad is conducted for 30 days based on financial statement and information given by the bank people. I have made a sincere effort to find out the financial efficiency of the bank based on ratio analysis and elicit the financial deficiency of the bank and forwarded a possible suggestion to strengthen the working of the bank.


Name of the Bank :

: Karnataka Central Cooperative Bank Ltd,Dharwad


: Karnataka Central Cooperative Bank Ltd,Dharwad Subhash Road,Dharwad

Phone number

: (0836) 2443365

Office Hours

: 10:30am To 2:30pm 3:00pm To 5:30pm

Weekly holiday

: Sunday

Type of Industry

: Service Industry

Main input

: Cash

History of cooperative Bank

The history of cooperative movement concerns the origins and history of cooperatives .The cooperative movement began in Europe in the 19th century, primarily in Britain and France. Robert Owen (1771-1858) considered the father of the cooperative movement. A Welshman who made his fortune in the cotton trade, Owen believed in putting his workers in a good environment with access to education for themselves and their children. These ideas were put into effect successfully in the cotton mills of New Lanark, Scotland. It was hear that the first co-operative store was opened. A cooperative (also co-operative; often referred to as a co-op or coop) is defined by the International Co-operative Alliance s statement on the Co-operative Identity as an autonomous association Statement on the Co-operative Identity as an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise. TYPES OF COOPERATIVES 1. By Governance: Worker Cooperative. Purchasing Cooperative. 2. By Purpose: Cooperative Banking, Housing Cooperative, Agricultural Cooperative, Utility Cooperative, Mutual education , Mutual insurance

Cooperative are based on the co-operative values of self-help, self-responsibility, democracy and equality, equality and solidarity and the co-operative principles of voluntary and open membership; democratic member control; member economic participation; autonomy and independence; education and training; co-operation among co-operatives; and concern for community .

The co-operative bank has a history of almost 100 years. The co-operative banks are an important constituent of the Indian Financial System. The co-operative movement originated in the west. The co-operative banks in rural areas mainly finance agricultural based activities including farming, cattle, milk, hatchery, personal finance etc. along with some small scale industries and selfemployment driven activities, the co-operative banks in urban areas mainly finance various categories of people for self-employment, industries, small scale units, home finance, consumer finance , personal finance, etc. Though registered under the co-operative societies Act of the Respective States (where formed originally) the banking related activities of the co-operative banks are also regulated by the Reserve Bank Of India. They are governed by the Banking Regulations Act 1949 and Banking Laws (Cooperative Societies) Act,1956.

Karnataka Central Cooperative Bank Ltd, Dharwad

KCC Bank Ltd, Dharwad is established on 23rd November, 1916 by R.B.Menasinakai. It was started with 41 shareholders and 71 cooperatives society s members. It initial investment was in working capital was Rs 30,000 /-. KCC Banks/district central cooperative banks are establishment with 4 head offices. 1. Bijapur 2. karwar 3. Belgaum 4. Dharwad Regional offices are 1. Dharwad 2. Gadag 3. Haveri In the year 2001 there were 94 branches were operating, present there are 35 branches is functioning. These branches are as follows 1. Dharwad-12 2. Gadag-12 3. Haveri-11 It s members are 526 co-operative credit societies , 6 spinning mills, 3 oil mills, 3 sugar factories, 17 APMCs, 38 city co-operative banks, 1463 other co-operative societies.

Branches of KCC Bank Ltd. Dharwad

SI.no 1 2 3 4 5 6 7 8 9 10 11 12 Total

Dharwad district H.O. Branch Malmaddi Alnavar Mr. Nagar Hubli Unakal Hebsur Kalaghatagi Navalgund Annigeri Kundagol Saunshi 12

Gadag district Gadag Mulgund Mundargi Ron Naregal Hole-Alur Gajendragad Soodi Itagi Nargund Shrahatti Laxmeshwar 12

Haveri district Haveri Byadagi Hirerkrur Rattihalli Haunshbhavi Chikkerur Ranebennur Savanur Shiggaon Hangal Akki-Alur 11

Objectives of KCC Bank:

The main objectives of KCC Bank is to improve and develop the agricultural sector

Sources of funds:
Shares-17 crore 72 lakhs Deposit-2128 lakhs Individual Deposit-56 crore 57 lakhs

BY, observing all above graphs we can conclude that most of the customers are dissatisfied with services of KCC bank so bank has to take following measures to improve it s condition. They are, 1. The bank has designed a business development plan branch wise, season wise and fixed the targets at the branch level, this business development plan was by the staff themselves. 2. The bank disbursed 100% agriculture lone and complied with seasonality, linked up with fertilizer business. 3. The bank insisted on over the counter payment of loans to the Luanne farmers themselves, their SB/CD accounts made up to date with photo etc. 4. The recovery of the loans in the principal waiver below and above 25000 was 621916 lakhs and the recovery under the interest waiver scheme was 36%. 5. The bank has started advancing fresh loan to strengthen the confidence building measures. The loan are advanced for gold, vehicle, go down receipts, salary based etc (scheduled will be given). 6.Recovery of these freshly advanced loans is monitored on weekly basis, one officer is to visit one branch per week, meaning one branch is covered per day and a visit note is taken and compliance is followed. 7. Out of 35 branches, 30 branches are managing the affairs satisfactorily. 5 branches are extended support to manage the depositors demand. The minimum balance maintained in accounts has given liquidity, in addition there has been opening of fresh accounts and mobilization of short term deposits to maintain liquidity (Branch wise list will be given). 8. During meetings of staff, a training session is arranged by the audit, administration staff and also senior staff of the bank on topics of everyday use. 9. The staff has been given I.D cards which they were regularly, the attainders wear uniform and also the drivers are provided uniforms. 10. The bank has obtained consent letters for the conversion of 50 crore into share from the urban banks. 11. The recovery in the non farm sector is quite encouraging very old loans having required. 12. Efforts are made at the level of principal sec to obtain the necessary permissation and the G O for the action plan.

13. An MOU has been drafted for the implementation of the action plan. The MOU will be signed by the RCS, KCC BANK and FED OF URBAN CO-OPERATIVE BANKS. 14. The bank is maintaining CCR, SLR the investment portfolio is monitored daily. 15. The bank is celebrating national festivals to inculcate public faith. 16. Training is giving through NABARD. 17. Section 65 inspection work shop was arranged and inspection of major borrows was ordered. 18. The Apex bank has given 76 lakhs towards the computerization of the bank. Waiting for new DIGC rates, now rates are available, computerization with be affected on shimoga DCC bank model with the help of the district level NIC Officer. 19. A website of the bank is designed to assist the recovery as well as give information and is ready for commissioning.

The list of LOANS

& ADVANCES which have not been collected and got converted NPA as follows

Particulars Loans & Advances Gross NPA NPA Provision

30-03-2008 23380.47 11267.53 8088.04

31-03-2009 22237.28 10603.79 8088.04

31-03-2010 22877.00 9031.41 8088.04

31-03-2011 29596.59 6060.97 8088.04

% of NPA to Total Loans & Advances