“A STUDY ON FINANCIAL PERFORMANCE AT KASARAGOD SERVICE
CO-OPERATIVE BANK LTD.”
1.1 INTRODUCTION
Finance is considered as lifeblood of business. It includes the dynamics of
assets and liabilities over time under conditions of different degrees of uncertainty and
risk. Finance can also be defined as the science of money management. Finance aims
to price assets based on their risk level and their expected rate of return. Finance can
be broken into three different sub categories: public finance, corporate finance and
personal finance.
Co-operation is the backbone of economic activities and social progress. International
co-operative defines, “Co-operative society is autonomous association of person
united voluntarily to meet their common economic, social and cultural, democratically
controlled enterprise.”
A co-operative bank is a financial entry which belongs to its members, who
are at the same time the owners and the customers of the bank’s-operative bank are
often created by personal belongs to the same local or professional community or
sharing a common interest.co-operative bank generally provide their members with
wide range of banking financial services(loans, deposits, banking
accounts).Co-operative bank differ from commercial bank by their organization, their
goals, their values and their governance. In most countries they are supervised and
controlled by banking authorities and have to respect prudential banking regulations,
which put them at a level playing field with commercial banks. Depending on
countries, this control and supervision can be implemented directly by state entities or
delegated to a co-operative federation or central body. Co-operative banking
institution takes deposits and lends money in most part of the world. Co-operative
banking includes retail banking, as carried out by credit unions, mutual saving and
loan associations, building societies and co-operations, as well as commercial banking
services provided by mutual organizations (such as co-operative federations) to
co-operative business.
1.2 SIGNIFICANCE OF THE STUDY
Co-operative banks play very important role in providing banking services to
common man their areas of co-operation a small depositor or small borrower feels
comfortable in dealing with the local staff of nationalized banks and private sector
PIMS MBA 2020-2022Page 1
, “A STUDY ON FINANCIAL PERFORMANCE AT KASARAGOD SERVICE
CO-OPERATIVE BANK LTD.”
banks. If co-operative banks go in liquidation due to abnormal increase of NPA not
only customers and staff members of that particulars co-operative bank will suffer but
all other co-operative banks will also get a sector which is very important for the
balance of economic development of our country.
Banking is the lifeblood of Indian economy banking has three types of sectors,
which provide finance to different sectors, i.e., private sector, public sector and
co-operative sector. The study of co-operative bank in Kasaragod has proved the
maximum co-operative sector damage its reputation because of high position of NPA
which effect ultimately the economic development of the state and nation. The NPA
impacts on the performance of the bank in which it reduces its interest, income, the
net worth of the bank demoralized the staff hardens capital risk, adequacy ratio which
also restricts recycling of find and hinders the desirable yield.
Thus, study is titled as” THE FINANCIAL PERFORMANCE OF
KASARAGOD SERVICE CO-OPERATIVE BANK.LTD NO.C862. “
1.3 STATEMENT OF THE PROBLEM
Finance is considered as the life blood of a business. This is because in the
modern economy, finance is one of the basic foundations of all kinds of economic
activities. Efficient management of every business enterprise is closely linked with
efficient management of its finance. Co-operative bank plays a vital role in Kerala
state to promote co-operative banks and its transactions in rural and urban area.
Kasaragod service co-operative bank is one of the important co-operative banks in
Kasaragod district. Presence study contains analysis of financial performance of this
bank.
The Kasaragod service co-operative bank is situated in Kasaragod district. The
bank provides agriculture and other loans to rural people, accepts deposits and
providing better interest to the people. This academic study intends to make an
evaluation of financial performance of the bank.
1.4. SCOPE OF THE STUDY
The study mainly focused attention to study the financial performance of
Kasaragod service co-operative bank in Kasaragod district. For analyzing financial
PIMS MBA 2020-2022Page 2
, “A STUDY ON FINANCIAL PERFORMANCE AT KASARAGOD SERVICE
CO-OPERATIVE BANK LTD.”
performance of Kasaragod Service Co-operative Bank Ltd No. C 862 the data related
to five financial years were taken.
1.5. OBJECTIVES OF THE STUDY
The main purpose of the study is to analyses financial performance of Kasaragod
service co-operative bank ltd no. c 862. Specifically, objectives are;
⮚ To analyze profitability of the bank.
⮚ To identify the current position of loans advances and deposits of the bank.
⮚ To know the trend of financial activities of the bank.
⮚ To identify liquidity position of the bank.
⮚ To identify solvency position of the bank.
⮚ To offer suggestions based on the study.
1.6. METHODOLOGY OF THE STUDY
Methodology involves nature and subject matter of study. This study based on
a single unit and hence study approach is accepted as a general methodology.
Secondary data is primarily used for the study. Accepted statistical tools and
techniques have been used for the purpose of analyzing the data graphic
representation of data have also made to find out the trend behavior in each year and
also to know the relationship between them.
1.7 SOURCES OF DATA
For this study both primary and secondary data are used.
Primary data
It means data collected from the original source first hand. Primary data are
collected from board members, secretary and other staffs through interaction.
Secondary data
Secondary data had been collected from published profiles of bank, internet
and periodicals.
PIMS MBA 2020-2022Page 3
, “A STUDY ON FINANCIAL PERFORMANCE AT KASARAGOD SERVICE
CO-OPERATIVE BANK LTD.”
1.8 TOOLS USED FOR ANALYSIS
To analyze financial status of the Kasaragod service co-operative bank,
various tools are made use of. They are;
⮚ Ratio analysis.
⮚ Bar and Pie diagrams
⮚ Common size balance sheet
⮚ Comparative balance sheet
⮚ Statistical test used
ANALYSIS OF VARIANCE (ANOVA)
Analysis of variance may be defined as a technique which analyses the variances of
two or more samples for determining the significance of difference in their arithmetic means
and determining whether different samples under study are drawn from same population or
not.
TYPES OF ANOVA
1. One way ANOVA
In one way classification, observations are classified into group on the basis of a single
criteria. For example, study related to influence of fertilizers on agricultural output.
2. Two-way ANOVA
In statistics, the two-way ANOVA is an extension of the one-way ANOVA that examines
the influence of two different categorical independent variables on one continuous
dependent variable.
PROCEDURE OF TESTING ONE WAY CLASSIFICATION
Assume that the means of all samples are equal
PIMS MBA 2020-2022Page 4
CO-OPERATIVE BANK LTD.”
1.1 INTRODUCTION
Finance is considered as lifeblood of business. It includes the dynamics of
assets and liabilities over time under conditions of different degrees of uncertainty and
risk. Finance can also be defined as the science of money management. Finance aims
to price assets based on their risk level and their expected rate of return. Finance can
be broken into three different sub categories: public finance, corporate finance and
personal finance.
Co-operation is the backbone of economic activities and social progress. International
co-operative defines, “Co-operative society is autonomous association of person
united voluntarily to meet their common economic, social and cultural, democratically
controlled enterprise.”
A co-operative bank is a financial entry which belongs to its members, who
are at the same time the owners and the customers of the bank’s-operative bank are
often created by personal belongs to the same local or professional community or
sharing a common interest.co-operative bank generally provide their members with
wide range of banking financial services(loans, deposits, banking
accounts).Co-operative bank differ from commercial bank by their organization, their
goals, their values and their governance. In most countries they are supervised and
controlled by banking authorities and have to respect prudential banking regulations,
which put them at a level playing field with commercial banks. Depending on
countries, this control and supervision can be implemented directly by state entities or
delegated to a co-operative federation or central body. Co-operative banking
institution takes deposits and lends money in most part of the world. Co-operative
banking includes retail banking, as carried out by credit unions, mutual saving and
loan associations, building societies and co-operations, as well as commercial banking
services provided by mutual organizations (such as co-operative federations) to
co-operative business.
1.2 SIGNIFICANCE OF THE STUDY
Co-operative banks play very important role in providing banking services to
common man their areas of co-operation a small depositor or small borrower feels
comfortable in dealing with the local staff of nationalized banks and private sector
PIMS MBA 2020-2022Page 1
, “A STUDY ON FINANCIAL PERFORMANCE AT KASARAGOD SERVICE
CO-OPERATIVE BANK LTD.”
banks. If co-operative banks go in liquidation due to abnormal increase of NPA not
only customers and staff members of that particulars co-operative bank will suffer but
all other co-operative banks will also get a sector which is very important for the
balance of economic development of our country.
Banking is the lifeblood of Indian economy banking has three types of sectors,
which provide finance to different sectors, i.e., private sector, public sector and
co-operative sector. The study of co-operative bank in Kasaragod has proved the
maximum co-operative sector damage its reputation because of high position of NPA
which effect ultimately the economic development of the state and nation. The NPA
impacts on the performance of the bank in which it reduces its interest, income, the
net worth of the bank demoralized the staff hardens capital risk, adequacy ratio which
also restricts recycling of find and hinders the desirable yield.
Thus, study is titled as” THE FINANCIAL PERFORMANCE OF
KASARAGOD SERVICE CO-OPERATIVE BANK.LTD NO.C862. “
1.3 STATEMENT OF THE PROBLEM
Finance is considered as the life blood of a business. This is because in the
modern economy, finance is one of the basic foundations of all kinds of economic
activities. Efficient management of every business enterprise is closely linked with
efficient management of its finance. Co-operative bank plays a vital role in Kerala
state to promote co-operative banks and its transactions in rural and urban area.
Kasaragod service co-operative bank is one of the important co-operative banks in
Kasaragod district. Presence study contains analysis of financial performance of this
bank.
The Kasaragod service co-operative bank is situated in Kasaragod district. The
bank provides agriculture and other loans to rural people, accepts deposits and
providing better interest to the people. This academic study intends to make an
evaluation of financial performance of the bank.
1.4. SCOPE OF THE STUDY
The study mainly focused attention to study the financial performance of
Kasaragod service co-operative bank in Kasaragod district. For analyzing financial
PIMS MBA 2020-2022Page 2
, “A STUDY ON FINANCIAL PERFORMANCE AT KASARAGOD SERVICE
CO-OPERATIVE BANK LTD.”
performance of Kasaragod Service Co-operative Bank Ltd No. C 862 the data related
to five financial years were taken.
1.5. OBJECTIVES OF THE STUDY
The main purpose of the study is to analyses financial performance of Kasaragod
service co-operative bank ltd no. c 862. Specifically, objectives are;
⮚ To analyze profitability of the bank.
⮚ To identify the current position of loans advances and deposits of the bank.
⮚ To know the trend of financial activities of the bank.
⮚ To identify liquidity position of the bank.
⮚ To identify solvency position of the bank.
⮚ To offer suggestions based on the study.
1.6. METHODOLOGY OF THE STUDY
Methodology involves nature and subject matter of study. This study based on
a single unit and hence study approach is accepted as a general methodology.
Secondary data is primarily used for the study. Accepted statistical tools and
techniques have been used for the purpose of analyzing the data graphic
representation of data have also made to find out the trend behavior in each year and
also to know the relationship between them.
1.7 SOURCES OF DATA
For this study both primary and secondary data are used.
Primary data
It means data collected from the original source first hand. Primary data are
collected from board members, secretary and other staffs through interaction.
Secondary data
Secondary data had been collected from published profiles of bank, internet
and periodicals.
PIMS MBA 2020-2022Page 3
, “A STUDY ON FINANCIAL PERFORMANCE AT KASARAGOD SERVICE
CO-OPERATIVE BANK LTD.”
1.8 TOOLS USED FOR ANALYSIS
To analyze financial status of the Kasaragod service co-operative bank,
various tools are made use of. They are;
⮚ Ratio analysis.
⮚ Bar and Pie diagrams
⮚ Common size balance sheet
⮚ Comparative balance sheet
⮚ Statistical test used
ANALYSIS OF VARIANCE (ANOVA)
Analysis of variance may be defined as a technique which analyses the variances of
two or more samples for determining the significance of difference in their arithmetic means
and determining whether different samples under study are drawn from same population or
not.
TYPES OF ANOVA
1. One way ANOVA
In one way classification, observations are classified into group on the basis of a single
criteria. For example, study related to influence of fertilizers on agricultural output.
2. Two-way ANOVA
In statistics, the two-way ANOVA is an extension of the one-way ANOVA that examines
the influence of two different categorical independent variables on one continuous
dependent variable.
PROCEDURE OF TESTING ONE WAY CLASSIFICATION
Assume that the means of all samples are equal
PIMS MBA 2020-2022Page 4
