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INTRODUCTION Co-operative movement as an economic system and as a best instrument to eradicate the poverty of the people and to protect them for the economic exploitation from the haves was introduced for the first time in the world with the organization of consumers Co-operative society in 1844 at London. Later on the Co-operative movement was introduced in Germany with an organization of Agriculture Credit Co-operative Societies in rural areas and with the organization of non-agricultural credit Co-operatives (Urban Co-operative Banks) in towns and cities. Hence, if the England is the motherland for the whole Co-operative movement, the Germany is the cradle for the Co-operative credit and Banks organizations. The Co-operative movement in India was introduced with the organization of Primary Agricultural Co-operative Credit Societies (PACS) in villages and Urban Cooperative banks in town s and cities offer passing the Co-operative Credit societies act 1904 with an objective to emancipate the poor people in the rural and urban areas from the clutches of money lenders and middlemen in the market and also to accelerate the pace of agriculture and industrial developments in these areas. With the passing of second Act, viz, Co-operative Societies Act, 1912; the Co-operative movement in India entered into all spheres of economic activities besides organizing DCC banks and State Co-operative Apex Banks. Profiteering (at more prices) and usury (more interest) are the greatest evils constantly grinding the poor people down and hang them till their death. To do way profiteering, consumers marketing, processing industrial and other Co-operatives were organized and to minimize the usury the Co-operative credit and banking organizations were organized to protect the poor people from the exploitation by middle men in the market and to eschew them from the clutches of unbridled money lenders.

Growth and Developments

Even though Co-operative banking was introduced from the year 1905 , the real development in the country was started only after the passing of a separate banking Regulation act for Co-operative banks called Banking regulation Act, 1949 ( as applicable to Co-operative societies) 1966. Co-operative banks are organized and controlled as per the provisions of concerned state Co-operative societies Acts, but their banking, operations are regulated by the BR Act 1949 (as applicable to Co-operative societies) 1966 and are also controlled by Reserve Bank of India ( RBI) When one looks at Indian Banks map, a maximum number of banks widely seen are Co-operative banks, as Indian Co-operative Banking System in 2002 consisted of 30 State Co-operative Apex Banks at state level, 368 DCC banks at District level and 1431 Urban Co-operative Banks in addition to 101000 PACS at the village level, 20 state Cooperative agriculture and rural development banks at state level and 768 Primary Agriculture and Rural Development Banks at Talus Level. However, Co-operative banks are small in size, operation and also have limited area of operation. Characteristic Features of Co-operative Banks The characteristic features of Co-operative banks are given as follows: Self Help and Mutual Help One man, one vote Motivated by service Mainly Agriculture Finance

INDIAN SCENARIO The Indian banking system of today can be compared with finest banking system in the whole world. Today the Indian banking system is on very sound lines with a network of branch spared all over the country and serving all sections of the society with innovative banking programs.

Todays Indian banking system comprises of 27 public sector banks,30 private sector non schedule commercial banks, several private sector new commercial banks, 27 foreign schedule banks, 196 regional rural banks, several thousands Co-operative banks and several land development banks. Institutions like Life Insurance Corporation of India and Unit Trust Bank of India also plays an important role in Indian banking system. Banking structure or banking system in India The constituents in the banking sector of India are The Reserve Bank of India The State Bank of India and its subsidiaries The Nationalized and the Private Sector Indian Commercial Banks The Private Sector Foreign Exchange Banks in India The Co-operative banks and the land development banks The regional rural banks

Indian commercial banks Banks that carry on commercial banking operation such as acceptance of deposits from the public, repayable on demand or alter a short period and the granting of short term credit mainly to trade, commerce and industry with a wide network of branches throughout the country. Commercial banks can be classified as 1} public sector banks 2} private sector banks

Banking Activities The law governing Banking activities in India is called Negotiable instruments act 1881 The banking activities can be classified as Accepting deposits from public/others (Deposits)

Lending money to public (Loans) Transferring money from one place to another (Remittance) Acting as trustees Acting as intermediaries Keeping valuables in a safe custody Collection business

Structure of co-operative apex bank


National Bank of Agriculture and Rural Development


Agricultural credit co operative banks

Non agricultural credit co -operative Banks

Urban credit co operative Banks

Short term lending

Long term Lending

Housing & Urban Banks Employees credit societies. Specialized co operatives

State Level

State Land Bank

Industrial Co-operative Consumer co-operative

District Central Co-operative



Primary Land Development Bank

Land Mortgages Bank


MP Co -operative Bank

Grain Bank

Primary Co operative Bank

BACKGROUND AND INCEPTION OF THE COMPANY The Karnataka State Co-operative Apex Bank Limited (hereinafter referred to as The Bank) is a Scheduled Co-operative Bank incorporated under the Karnataka State Co-operative Societies Act 1959. It was established in the year 1915 and is meant to act an Apex Body to finance agriculture sector through the District Central Co-operative Banks and Primary Agricultural Co-operative Societies. In the later years the Apex Bank diversified its activities into commercial banking. Today it has 31 branches in Bangalore city through which it carries out commercial banking activities. It does not have any branches outside Bangalore. HISTORY OF KSCABL The Bank was registered on 10th November 1915 under the name and style of The Mysore Provincial Co-operative Bank Limited, under the Mysore Co-operative Societies Act of 1905. Then, The Bank was not an Apex institution, as it was not exclusively meant for financing the Co-operatives in the then State of Mysore. Another Bank called the Bangalore Central Cooperative Bank Limited, Bangalore (which was later converted into an urban bank), which was registered in 1905, was also financing the Co-operatives. The bank owes its origin to Sri. M.A. Narayan Iyengar, B.A., B.L., who was the Registrar of Co-operative Societies at that time.

Sri.VardarajaIyengar Founder KSCABL The Bank was founded with the objective of financing, inspecting and supervising the Cooperative societies in the Mysore State. Subsequently, several district Co-operative central

banks with the jurisdiction of a district were registered. Five such district central banks were started. But their working was not satisfactory and they became defunct. As such, the provincial bank started financing the societies directly. Besides granting of loans, the Bank served as an outlet for investment of the surplus finds of the Co-operative societies in the State. The Bank thus acts as the balancing centre of the Co-operative movement in the State, safeguarding its interests.

KSCABL CORPORATE OFFICE ACSTI INTRODUCTION: The Agricultural Co-operative Staff Training Institute of the Karnataka State Cooperative Apex Bank Limited was established in the year 1985 to impart the requisite knowledge, professional skills and attitude of the personnel working in Apex Bank, District Central Co-operative Banks, Urban Co-operative Banks and Primary Agriculture Cooperative Societies in the State. We are in the midst of challenges which have not been faced by the Co-operatives hitherto in the wake of economic liberalization and globalization. The Co-operatives are

required to be professional to remain competitive to effectively cater to the needs of the rural community. It is necessary that the Bank should utilize the available man power effectively to this end. The Institute is dedicated to improve and utilize the available Man Power at Apex Bank, DCC Banks, Urban Co-operative Banks and Primary Agricultural Co-operative Societies effectively. The Institute is offering all the training programmes at subsidized cost with the assistance of NABARD. Only nominal delegation fee is being collected from the client institutions for all the training programmes conducted by the Institute. The motto of the institute is development through training and imparting training is a continuous process through out the year.

ACSTI NATURE OF BUSINESS The business carried by the bank is generally related with providing short term and long term agricultural loans. It also accepts deposits from the public. Apex bank also provides cash credit loans to processing, marketing and consumer Co-operatives as well as sugar factories in Karnataka and working capital loans to state level and national level institutions.

VISION, MISSION, AND QUALITY POLICY: VISION: As a state Co-operative bank, Apex bank shall be a dominant financial institution in the state, lending the state to economic prosperity. They shall be the model of an effective, protective, dynamic and financial sound organization, responsive to state goals and aspiration. They shall maintain highly trained and motivated professionals committed to the highest standards of ethics and excellence. They shall contribute to buildings progressive and good standard of Co-operative societies in the service of farmers and rural mass. MISSION: Ensuring the best quality of life and success of their farmers, agricultural Cooperative societies, district central Co-operative banks, clients and employees who are the reasons for their being. For their farmers: They shall continue to improve their socio-economic status through timely financial and technical support. For their clients: They shall deliver innovative and advanced products and services in productive and effective manner to meet their local demands. For their PACS & DCC banks: They shall ensure mutual co-operation and compliment action to achieve optimum gains in an environment of confidence and trust. For their employees:

They shall ensure a work atmosphere of mutual respect and team work within a system of recognition and regards. They shall continue to provide appropriate training and value enhancement to ensure the highest degree of professionalism and integrity. They shall hold their organization composed of highly competent people driven by superior technology. For people of Karnataka: They commit their unwearyingly loyalty and dedicated service in the pursuit of state farmers interest.


To serve as a state Co-operative bank and as a balancing center in the state of Karnataka for registered Co-operative societies To raise funds by way of deposits, & lend loans, cash credit, overdrafts and advances. To develop assist and co-ordinate the member DCCBs and other Cooperative societies and secure financial assistance for them. To arranged / hold periodical Co-operative conference of the DCCBs and other members of the bank and to take action for the growth and development of the Co-operative credit movement

SERVICE PROFILE OF THE BANK: Financing of short term loans: Financing of short term loans for seasonal agricultural operations and for marketing of crops. These loans are repayable within one year. Financing of medium term loans:

These loans are sanctioned for agricultural purpose and non-agricultural purpose. Financing of kisan credit card schemes/loan: Kisan credit card aims at providing timely and adequate credit support to farmers for their cultivation including investment credit needs in a flexible and cost effective manner. All DCC banks in the state have implemented the kisan credit Scheme. Credit facilities to self help groups: All the DCCBs have taken keen interest in the formation of self help groups in co-ordination with PACS. Self help groups mobilize their savings and avail credit facilities from DCCBs and PACS.

Advancing medium term loans with economic development: There loans are advanced for the agricultural infrastructures such as lift irrigation, diary, poultry, plantation, goober gas etc that constitutes schematic lending.

Providing cash credit loans: Providing cash credit loans to processing marketing and consumer Cooperatives as well as sugar factories in Karnataka and also term loans to sugar factories under consortium agreement.

Advancing working capital loans: Advancing working capital loans to state level Co-operative like MARKFED, KCCF and to the national level Co-operatives like IFFCO & KRIBHCO. The bank provide similar facilities to public sector undertaking like Karnataka Silk Marketing Board, Karnataka handloom Development

Corporation, Karnataka small scale Industries development corporations, and also through consortium arrangements with Commercial banks. collection of cheques and drafts: The bank extends finance to the non-farm sector and the development of cottage industries, small scale industries and rural artisan and weavers. It is a scheduled bank in all aspects including remittance of funds, demand drafts, mail transfers, collection of cheques and drafts. Loans through various schemes: Vehicle loans Housing loans Mortgage loans Installment loans Jewel loans Other loans

The bank has introduced 14 new loan products to increase the means for advancing more into increase the cliental base. The bank has also introduced insurance products with a tieup arrangement with oriental insurance company a) personnel accident policy. b) SB account holders (apex bank gold SB). c) Fire and earth quake. d) Vehicle insurance/building. e) Insurance to cover permanent disability due to accident to the extent of one lakh. 14 New loan products are: Apex Personnel Apex Nagadu Apex Vidya Apex Pravasa Apex Badige Apex for BDA sites Loan scheme for paying initial deposits /EMD for allotment of BDA sites

Apex Overdraft Apex Retail loan Apex Mahile Apex Swayam udyoga Apex Bhangara Apex Nivruthi Apex professionals

PRODUCT PROFILE OF BANK The KSC Apex Bank was established in the year 1915.Over the past ninety years, since its inception, it has played a crucial role in the development of the Agricultural Credit structure in Karnataka. The main functions are given as follows:PRINCIPLE FUNCTIONS Advancing medium term loans for development of agricultural infrastructure such as irrigation, dairy, poultry, plantation, gobar gas etc which constitute schematic lending. Financing of short term loans for seasonal agricultural operations and for marketing of crops. These loans are repayable within one year. Providing cash credit loans to processing, marketing, consumer operatives as well as sugar factories in Karnataka and also term loans to sugar factories under consortium arrangements.

LOAN SCHEMES JEWEL LOANS The Bank provides Jewel Loan against pledge of gold ornaments to the residents of Bangalore city. TERMS

The loan applicant should be/become a nominal member of the Bank. Gold articles should be delivered in person with Address proof or ID proof. In case, the applicant is already not a member of the Bank, a person who is well known to bank should introduce him to the bank. The Bank will engage a Gold Appraiser to value the gold articles. Based on the valuation report, Rs.800/- per gram or 65% of the net weight, whichever is less, is considered for quantum of loan. The maximum loan given is Rs. 3.00 lakh and the current rate of interest is 12%. The repayment period for the loan is 24 months and interest should be paid once every three months. 2% penal interest will be collected on overdue amount. VEHICLE LOAN The Bank provides loans to salaried people within the Bangalore City, to purchase two wheelers/four wheelers for personal use only. TERMS Any individual working and residing in Bangalore city is eligible for the loan. Both the applicant and surety provider should b nominal members of the bank and any one of them should produce his salary certificate or IT returns with 3 years Balance sheet. For 2 wheel vehicles, the quantum of loan is Rs.50, 000/- or 75% of invoice value whichever is less. The repayment period of loan amount is 36 months. For 4 wheel vehicles, the maximum loan amount is Rs.5.00 lakhs or 75% of invoice value whichever is less. The loan repayment period is 60 months. The current rate of interest is 11%. For availing the loan, the applicant should produce application form, invoice/quotation, Form No.29, Pro-note, agreement subject to hypothecation of vehicle in favour of bank and his photo. HOUSING LOANS

The housing finance services offered by the Bank include construction of house/mortgage loan, site purchase/mortgage loan, purchase of flats etc., to the public through its network of 31 branches in Bangalore City. Residents of Bangalore city are eligible for housing under certain rules. Persons applying for loans for construction of house, additional/repairs to the existing house/flat, purchase of house/flats, site mortgage/purchase loan etc. within the limits of Bangalore City Corporation, BDA and Municipalities coming under the jurisdiction of BMRDA, are eligible for loan. TERMS Loan will be sanctioned even if the property is in the name of spouse, provided the spouse mortgages the property to the bank and also guarantees the repayment of loan along with interest. Loans will not be sanctioned for revenue property and purchase of sheet/tiled roof house. The applicant should have regular income by way of salary, business etc. and should produce Income Tax returns of three years. The applicant will have to give one surety acceptable to the bank. The applicant will have to become a nominal member of the bank along with surety provider. Loans will not be given to persons above the age of 58 years. In case of non-salaried persons, the Bank will require that the loan is repaid before the applicant reaches the age of 70 years. And in case of salaried persons, the Bank will require that the loan is repaid before the applicant is retired from the services. In case of retired persons having sufficient repaying capacity, the repayment period "may" be extended for the applicant up to 70 years of age. House/flats/site financed shall be mortgaged to the bank by depositing all original title deeds of the property with the bank and registering the equitable mortgage deed at the concerned sub registrar office. Original equitable mortgage deed, latest EC in Form No.15 after registration, loan agreement, acceptance letter, pro-note and letter of guarantee shall be executed by surety. The applicant should provide property insurance policy up to 150% of the loan amount.

PERSONAL LOANS The Bank provides Personal Loans to salaried people living within Bangalore City, to meet expenses such as education of children, medical expenses of self and family, purchase of household articles etc.

TERMS the lone and the surety provider should be nominal members of the bank.The employer of loanee/drawing officer should issue an undertaking letter agreeing to deduct the loan amount every month towards loan installments or send the salary to the bank. The bank also gives personal loans by collecting post-dated cheques. The quantum of loan is 10 times of gross salary and within 60% gross salary The maximum repayment period is 60 months. The present rate of interest is 13% P.A. Latest salary certificate of loanee and surety provider, pro-note, delivery letter to DPN, letter of authority for pay/wages deduction, bond of agreement etc., will be obtained from the loanee and surety provider. 2% penal interest will be charged and collected on overdue installments.

AREA OF OPERATION: Apex bank works at the state level only. It has 38 branches in Bangalore city only and head quarter is situated in Chamarajpet. The branch offices of bank are adequately delegated with power of sanction of disbursements. If the loans are to be provided up to 1015 lakhs. Beyond that the head office will sanction the loan and will be disbursed at the branch level.

BRANCHES AT BANGALORE Head office Branch Chamarajpet Ashoka pillar Banashankari Basaveshwaranagar Girinagar Gokula Gandhinagar Agara-HSR layout Indiranagar Jayanagar market complex Jayanagar 9th Block J.P. Nagar Kalpathru super Bazaar Koramangala Lakkasandra Magadi road Ganganagar Padmanabha nagar Public Utility Building Rajajinagar R.P.C Layout Vijayanagar Vidhana Soudha Legislators Home M.S Building Mahalakshmipuram

Vyalikaval Chandra layout Vivekananda college(Extn. Counter) R.T. Na Banashankari3rdStage Bommasandra BTMLayout KRPuram Mahadevapura RajarajeshwariNagar Sunkadakatte T.Dasarahalli Yelahanka

OWNERSHIP PATTERN The bank classifies its shareholders into 6 types such as A, B, C, D, E and F class. The face value of shares under each group is different from others .A class shares are alone having the voting rights. B, C, and D classification have an option to participate in company Meeting. E Category shares are the shares held by the members other than A, B, and D classification. F classification is very general type since it doesnt have voting rights and participation in company Meetings , but the face value of shares in this category is less compared to others.

For sanctioning of loan from the bank, each member has to keep some fixed percentage of loan amount in the shares of the Bank. For Cash Credit 1%, for Agriculture Loan 2.5%, for Non-Agriculture Loan 5% has to be kept in shares of the Bank.

SHARE CAPITAL CLASSIFICATION SUMMARY AS ON 31-3-2011 Sl.NO Classification TYPE 1 2 3 4 A- DCC Banks B- KSUBF C- State Government D- State & national level Co-operative bank institutions other than B 5 B,D. 6 FAssociate/nominal 33 9,246 11,12,90,000.00 E-Co-operative 9 institution other than A, 16,207 16,20,600.00
No. members of

shares 23,66,436 3 0 67,934

Shares amount 79,28,00,000.00 1,50,000.00 0 67,07,100.00

21 1 0 37

members TOTAL 101 24,55,799 91,25,67,700.00

COMPETITORS: The major competitors are: Land bank [Agricultural based finance] Amanath scheduled Co-operative bank Sham Rao Vital Co-operative bank [multistate scheduled co-oprative bank] Commercial banks Small industrial development bank of India

Small industrial service institution Corporate banks Some local Co-operative banks.

INFRASTRUCTURAL FACILITIES The new administrative building at a cost of around Rs. 800 lakhs completed in 2002 provides additional impetus to a new work culture and new mindset of all. The gigantic building with granite gladded faade having circular and rectangular columns suggesting strengths and stability reflects the character of the organization. This four storied block caters mainly to the administrative requirement of the bank along with the hi-tech banking hall on the ground floor. The architects M/s.Zechariah consultant effectively conceptualized the vision of the corporate head office floated by the directors of the board. The built up area of UTHUNGA has been 67,820 sq.ft. They believe that their members are always behind them not only to encourage but also to guide them in case they go wrong. They are grateful to them. Similarly they are grateful to government of Karnataka, RBI, NABARD, and all other sister Co-operative in the state for what they are today. ACHIEVEMENTS AND AWARDS Bank is able to lend 75% of the farmers in the state and it covers all sugar factories in Karnataka Apex bank is habituated to get awards at national level year after. Similarly NABARD has been giving best performance award and even PACS have not lagged behind in getting national recognition. All DCC banks and merely 80% of PACS have provided themselves to be financially viable. E-stamping facility has been implemented in all branches. A loan of Rs. 110.00 crores has been issued to Weaves & fishermen under government loan scheme of 3% interest in the year 20010-11.



Borrower should pay interest plus principle Every month

If Borrower fails to pay Interest with principle Up to 3 months

Then bank will treat loan Amount as NPA

And next bank will send a final notice to borrower and Introducer

Next bank files a case against both the parties Next the court announce the Property of parties should be Under taken from the bank

If both the parties have no such property or assets then Court will announce them as Insolvent Then bank will consider loan Amount as bad debts not Recovered

FUTURE GROWTH AND PROSPECTS RTGS facility. RTGS is an electronic environment where payment instructions are processed on a continuous or REAL TIME basis and settled on GROSS or individual basis without netting the debits against credit. NEFT. National Electronic Fund transfer system made for amount inclusive of paisa component where there is no upper value limit for putting through an individual NEFT transaction. Banc assurance products: The KSCAB Ltd., made tie up with OIC and IFFCO for give the facility of insurance to customer. Technology: The KSCAB Ltd., Develop its technology of banking facility. For E.g. ATM facility Online banking Internet banking Mobile Banking

Doubling of credit to the farmers by advancing loans for the existing crops, new lands/ farmers. Identifying new members under NABARD lands policy.

The 7 S Framework of Mc Kinsey is a model that describes 7 factors to organize a company in a holistic and effective way. Together these factors determine the way in which a corporation operates. Manager should take into account all seven factors, to be sure of successful implementation of strategy.

Origin of McKinneys 7-S Model:

Richard Pascal and Anthony Athos fist mentioned the 7-S Framework in The Art of Japanese Management in 1981. They had been investing how Japanese industry had been successful. At around the same time that Tom Peters and Robert Waterman were exploring what made a company excellent. The Seven S model was born at a meeting of these four authors in 1978. It appeared also In search of Excellence by peters and Waterman, and was taken up as a basic tool by the global management consultancy company McKinsey. Since then it is known as their 7-S Model.

These seven elements are distinguished into hard Ss and soft Ss. The hard elements are feasible and easy to identify. They can be found in strategy statements, corporate plans, organizational charts and other documents. The outstanding feature of the 7 S models is that, it has been tested extensively by Mc Kinseys Consultants in their studies of many companies. At the same time, this frame work has been used by the business schools of Harvard and Stanford universities. Thus theory and practices seem to support each in a study of management. This model also supports the five managerial functions i.e. Planning, Organizing, Staffing, Leading/Directing and Controlling. The four Ss however, are feasible. They are difficult to describe since capabilities, values are elements of corporate culture are continuously developing the changing. They are highly determined by the people at work in the organization. Therefore, it is much more difficult to plan or to influence the characteristics of the soft elements. Although the often factorss is below the surface, they can have a great impact of the hard structure, strategies and systems of the organization. By the words above implies that the company should apply McKinseys 7 S Model for its better performance.

Mckinseys 7s frame work with reference to organization.

STRUCTURE Structure is the organizational structure or the hierarchy of the organization that comprises of the authority, responsibility and relationships in the firm. This function of framework is concerned with direction of the delegation of authority, organizational structure whether flat or tall and the degree of centralization or decentralization.

BORD OF MANAGEMENT President (1) Vice president (1) Directors (20)

Managing Director (IAS)

Secretary (JRCS)



GM (P&D)

GM (ACSTI) Manager Faculties Clerk/steno Attenders

GM (I&A) DGM (I&A) AGM (I&A) Managers Asst Managers Clerk/steno Attenders

GM (Banking)

DGM (P&D) AGM (Sr.KT) Managers Asst Manager Clerk/steno

DGM (DAP) Managers Asst Manager Clerk/steno Attenders DGM(A&O) AGM(A&O) Managers AstManagers Clerk, steno, Attenders

DGM (Funds) Managers Asst Managers Clerk, steno

DGM (CFA) AGM (A&O) Managrs

DGM (BC) Managrs Astmgrs Clerk, steno, Attender s

Ast mgrs

SKILLS The banks required different skills for different types works at different levels. Highly qualified professionals in the bank have major skills like technical, finance, economical and public relation skill. The bank also looks for the development of their staff skills. The apex bank included following skills in the organization Financial management skills Managerial skills Interpersonal skills Communication skills

STYLE Bank follows a top down participative style of management. It believes in team work. For each task teams are constituted to attain specific goals. Apex bank believes that quality can be achieved by providing quality financing and related services on a continuous basis. In order to motivate the employees, it encourages them to activity participate in setting the organization growth targeting, objectives and to take their own decisions at various levels. Apex bank leadership style is basically democratic and participative in nature.

STRATEGY Apex bank is one of the pioneers in this industry in providing short term loans and long term loans to farmers and medium scale industries. As a part of its marketing studies it makes its advertising through newspapers, leading television channels and focus over quality certificate. All the decision making are decentralized, only cooperation of the entire higher officer are authorized to make the polices and strategies. Only operation decisions are left to branch head. STAFF

There are about 38 branches in which all together there are 590 employees are there.


2 4 12 1 28 1

1 0 6 0 18 1

1 4 6 1 10 0

85 114

73 94 0 137 4 89 1 424

12 20 1 67 7 37 0 166

204 11 126 1 590


Bank follows a typical selection procedure. As a first step, advertisement is given as and when it is required. The test is conducted and the candidates are made to go through interview which is being conducted by the top management board. It consists of subject expert from different department.


The Apex bank has the good system. It follows the rules and regulation including procedures that support the organization structure. The APEX bank has a agricultural delivery system for improving overall development of rural farmers. The credit sector is extending helping hand to the farmers in its own way to boost the agricultural production in the state and in the country at large. It provides facility to the commercial and noncommercial purpose. SHARED VALUES Shared value is satisfying the farmers and small and medium scale industries first. Mission of the apex bank is committed to continuously nurture, develop and service the small sector through the need based products and services. The values that the bank upholds most are Farmers Satisfaction. This bank focuses over their farmers and industrial demands and wants. They also come up with various schemes like housing loans, vehicle loans, installment loans and mortgage loans. These are the purpose of attracting the farmers and industries and feel satisfactions by the banks.

Strengths Completed 96years having well capital base. Good will and market reputation prevailing in the sector. The bank having well trained full strength man power. The organization is having well qualified and technical board of directors along with state government and NABARD nominees. Large range of products and services to the customer. One of the top co- operative banks in India Having well equipped modernized and growth oriented staff training institute (ACSTI) for the staff working in Co-operative sector

Weakness Lack of awareness of products and services through advertising and other media. The bank has a bit slow in implementing of core banking solutions in its branches. Government culture in the organization Bank has to develop infrastructural facility Too much politics bound

Opportunities Doubling of credit and reaching to the BPL (Below Poverty Line) farmers, help the bank to strength and expand its business towards rural and short term credit refinancing Economic prosperity and the consequent increase in purchasing power have given a fillip to a customer base. To capture more market in home loans, small scale sectors and medium enterprises. Mutual funds Insurance

Threats Bank has to compete with nationalized, commercial, private, sector, and foreign banks Bank has to develop infrastructure facilities to attract new customer as well as to retain existing customer in track. Frequently change in rules and guidelines by the reserve bank of India and government.

Delay in operating of newly proposed branches may lead to sacrificing the market opportunities to other banks that are well equipped with better products.


Balance sheet as on 31st March 2011 Particulars Capital and liabilities Capital Reserve fund and other reserves Deposits and other accounts Barrowings Amount in rupees 91,25,67,700.00 392,66,97,449.50 4646,66,51,284.50 1988,73,30,244.21

Bills sent for collection(contra) Interest reserves(contra) ACSTI Depreciation(contra) Interest payable Other liabilities Net profit Total Assets Cash on hand & bank balance Money at call and short notice Investments Advances Bills receivable (contra) Interest receivable(contra) ACSTI Depreciation(contra) Branch adjustment Fixed assets Other assets Total

89,22,284.00 64,57,71,615.00 41,92,415.70 8,46,64,613.63 1,69,57,54,219.66 23,00,00,000.00 7386,25,51,826.20 449,59,96,631.76 8,28,00,00,000.00 1919,31,31,450.50 4062,83,73,561.32 89,22,284.00 64,57,71,615.00 41,92,415.70 1,41,16,652.33 27,47,59,155.39 31,72,88,060.20 7386,25,51,826.20

Profit and loss account for the year ended 31st March 2011 Particulars Income Interest and discount Commission, Exchange & Brokerage Dividend and miscellaneous receipts Total Amount in rupees 4,33,85,28,267.63 73,72,565.98 12,66,18,367.21 4,47,25,19,200.82

Expenditure Interest on dep., Barrowings and other accounts Loss on sale/conversion of GOI securities Salaries, Allowance and provident fund Directors & committee members Fee and allowance Rent, taxes, insurance and lighting Legal charges Postage and telephone charges Repairs to bank properties Auditors fees Printing, stationery and advertisement Other expenditure Income tax paid Depreciation Provisions Provision for tax Net profit After tax Total 3,59,62,85,979.04 8,60,56,799.00 19,48,09,624.41 52,21,646.00 2,32,79,655.00 3,55,405.00 27,73,742.57 49,68,102.58 8,39,582.00 1,24,88,749.25 4,38,56,710.34 2,25,05,870.00 2,45,00,530.92 9,92,76,804.71 12,50,00,000.00 35,50,00,000.00 4,47,25,19,200.82

Ratio analysis is a tool which enables the banker or lender to arrive at the following factors, Liquidity position, Solvency, Financial stability, Quality of the management, safety and security of loans & advances to be or already been provided. Ratio analysis is the analysis of the financial statement of the company. This is a primary source of information for evaluating the investment prospect of the companys

stock; the statement gives the historical and current information about the companys information. Historical financial statement helps to predict the future. The current information aids to analyze the present status of the company.

Current ratio: It is the relationship between the current assets and current liabilities of
a concern. The standard current ratio is 2:1. Current Ration = Current Assets Current Liabilities

Current Ratio = 4827401344.29 1780418833.29 Current Ratio = 2.711 Interpretation: Banks current ratio is 2.711:1 is more than the standard one i.e. 2:1. Bank has an excellent capacity of repayment of funds.

Debt equity ratio: It is the relationship between borrowers fund (Debt) and owners
capital (equity). Debt Equity ratio = Long term debts Owners fund Debt Equity Ratio = 19887330244.2 5069265149.5 Debt Equity ratio = 3.92 Interpretation: Apex bank debt equity ratio 3.92. It means bank is using 3.92 times more debt than its equity.

Return on asset: It is the relationship between asset and investment in business with
the net profit of the business. Return on asset = Net profit after tax Total asset Return on asset = 230000000.00 73862551826.2 Return on assets = 0.31% Interpretation: Return on asset of Apex bank is 0.31%

Proprietary ratio:. It is the relationship between the shareholders fund and total assets
of the business. Proprietary ratio= shareholders fund Total asset

Proprietary ratio=

5069265149.5 73862551826.2

Proprietary ratio=0.0687