A PROJECT REPORT ON COMPARATIVE STUDY OF FINANCIAL REPORT OF TWO DIFFERENT BANKS OF INDIA SUBMITTED TO MUMBAI UNIVERSITY IN PARTIAL FULFILLMENT

OF 2 YEARS FULL TIME COURSE MASTER OF MANAGEMENT STUDIES AND RESEARCH (MBA) Submitted By: SHAIKH AHMED MOHD (Batch 2010-11) Guided By: Prof.______________________ GAHLOT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

CERTIFICATE

This is certify that SHAIKH AHMED MOHD student of GAHLOT institute of management studies and research has completed his field work report on the topic of COMPARATIVE STUDY OF FINANCIAL REPORT OF TWO DIFFERENT BANKS OF INDIA and has submitted the field work report in partial fulfillment of MMS of the college for the academic year 2010-2011. He has worked under our guidance and direction. The said report is based on bonafide information. Project guide name Prof. ______________ Designation Director

GAHLOT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

DECLARATION

I hereby declare that project titled COMPARATIVE STUDY OF FINANCIAL REPORT OF TWO DIFFERENT BANKS OF INDIA is an original piece of research work carried out by me under the guidance and supervision of _______________________. The information has been collected from genuine & authentic sources. The work has been submitted in partial fulfillment of the requirement of MMS to our college.

Place: Date:

Signature: Name of the students:

ACKNOWLEDGEMENT

Perseverance inspiration and motivation have always played a key role in success of any venture. I hereby express my deep sense of gratitude to all the personalities involved directly and indirectly in my project work. I would thank to God for their blessing and my parents also for their valuable suggestion and support in my project report. I would also like to thank our friends and those who have helped us during this project directly or indirectly. Last but not the least; I would like to express my sincere gratitude to all the faculty members who have taught me in my entire MBA curriculum and our Director _______________ who has always been a source of guidance, inspiration and motivation. However, I accept the sole responsibility for any possible errors of omission and would be extremely grateful to the readers of this project report if they bring such mistakes to my notice.

SHAIKH AHMED MOHD

About Us

Founded on 21st May 1972, in a remote village in Kalwa (Thane District, Maharashtra), Gopinath Patil Parsik Janata Sahakari Bank enjoyed tremendous patronage right since the inception. Under the leadership of Shri. Gopinath Shivram Patil and other founding directors, the bank flourished and expanded its reach to Thane, Navi Mumbai, Pune and Nashik. With an inspiring deposit base more than Rs 1100 Crores, Gopinath Patil Parsik Janata Sahakari Bank is riding high on customer satisfaction and trust. What is even more heartening is that the bank has helped many to meet their financial needs. Currently operating through 33 fully-equipped branches and 1 Extension Counters. Gopinath Patil Parsik Janata Sahakari Bank is getting ready for the next phase of rapid expansion.

Board of Directors

No. Director's NameDesignation Mr. Ranjit G. Patil Mr. Devraj B. PatilViceMr. Jayram K. Patil Mr. Namdev B. Patil Mr. Dashrath D. Gharat Adv. P. C. Patil Mr. Gopinath B. Patil Mr. Prakash N. Patil Mr. Narayan G. Gawand Chairman Chairman Director Director Director Director Director Director Director Director Director Director Director

1.

2. 3. 4. 5. 6. 7. 8. 9.

10.Mr. Kayyum R. Cheulkar 11.Mr. Pandurang D. Bunde 12.Mr. Ravindra K. Patil 13.Mr. Rupaji S. Khulat

14. Mrs. Rajashree P. Patil 15.Mrs. Shashikala D. Patil 16.C.A. R. R. Lahoti 17. Mr. Kesarinath B. Gharat

Director Director Banking Expert Banking Expert

History

To equip the project affected persons and their family members with strength and ability, to survive with new urban means of livelihood, it was necessary to provide them financial assistance. CIDCO (City Industrial Development Corporation) was established by Government of Maharashtra for the purpose of development of infrastructure and city of New Bombay. Development of infrastructure requires plenty of resources like men, machines, earthmover, vehicles & money. The idea of formation of Urban Co-operative Bank for the area was visualized in 1971 by a group of youngsters of Kalwa village, which is on the boundary of Thane Belapur Belt. This group of youngsters were successful in running a Consumer Co-operative Society by name Kalwa Consumer Co-operaive Society. This group of youngsters, on their study-tour to Western Maharashtra, for study of co-operation, was fascinated by network and growth of cooperative societies and the role played by Urban Cooperative Banks in the development of that region.

In the year 1971 the Government of Maharashtra acquired all agricultural land of 68 villages of Thane-Belapur belt in Thane district of Maharashtra, for the purpose of setting up a new city i.e. New Bombay. Acquisition of land for New Bombay project means compulsorily depriving several thousands of people of their means of livelihood. Though Government was paying them money as compensation, but they were away their land which was the only mean of livelihood for them.

The group of youngsters called a meeting of residents from Kalwa and nearby villages when they came back from their study tour. They collect the Share Money in December 1971 for the formation of the bank. Collection of share money was the most difficult task

at that time. In a village where there were no banking facility available these youngsters started collection Rs. 50/- as contribution towards share capital. In year 1971 Rs.50/- was also a substantial amount, it took lot of efforts and hardship to collect the require numbers of members. In all 360 members came together for the formation of bank. The registration of Parsik Janata Sahakari Bank Ltd. was approved by Co-operative Department in the month of April, 1972, with registration number TNAK/BNK/160 dated 24th April, 1972. The first branch office at Kalwa Naka was opened on 21st May, 1972.The bank was named as Parsik because active jurisdiction of bank was the west side area of Parsik Hill, which has range from Kalwa to Belapur (the famous Parsik Railway Tunnel is situated in the same range). Parsik is also mean Parshwanath ( Lord Shiva), whose temple was existed on the hill as per history.

The principles of cooperation always keeps community or society to the fore front. What ever is done through cooperation is done for the welfare and upliftment of the community. The board of parsik bank until now has undertaken following activities towards the betterment of the society The founder of Parsik Janata Sahakari Bank Ltd. Mr. Gopinath Shivram Patil had initiated a proposal through their consumer cooperative society in October, 1985 to Forest Department, Pune. Through which they sought permission for a project, which included allotment of one hill, called Parsik Hill, which is situated nearby Kalwa Village and the well known Parsik Railway Tunnel passes through it, for plantation. Forest Department gave permission for the plantation on the Parsik Hill only after 1990. For last 20 years the work of plantation and other related activities like minor irrigation , forest conservation are going on. The employees of Parsik Bank with their Board of Directors has been regularly visiting the Parsik Hill , due to their hard work and consistency the land admeasuring 70 hectare came under plantation. Once a barren hill is now covered with fifty to fifty

five thousand plants. The Board of Directors of Parsik Bank has taken tremendous efforts for last 20 years for this project , which is a huge successes. Other organizations has also started similar project by taking inspiration from Mr. Gopinath Shivram Patil. In the year 1988-89 Parsik Bank has been allotted one plot of land, adjoining to Kalwa bridge for development of garden by Thane Muncipal Corporation.

At the request of CIDCO LTD. in the year 1993, Parsik Bank has undertaken the development of garden on 14 acres of land situated near Belapur in Navi Mumbai area. The said garden was also named as Parsik Hill Garden. The employees and members of Board has given their total commitment for the development of garden. Parsik Bank in the year 1998-99 has planted nearly 1200 plants in Kalwa Vitawa region under scheme called Clean Thane Green Thane, which was initiated by Thane Muncipal Corporation. It also included decoration of one traffic island and building a bus stop.

Other activities Educational help Medical help Building of shed for funeral & other religious activities Sports Financial assistance to social organizations For last 28 years bank is retaining amount out of their net profit for charitable purpose. Generally 1% of net profit is appropriated for the charitable purpose. 6) Bank has maintained a fund called Member Welfare Fund. Every year a considerable amount is contributed to this fund out of net profit earned by the bank. At present the amount in Member Welfare fund is around 1.29 crore of rupees.

 Moments of Pride

Congress Seva Dal Navi Mumbai awarded Seva Bhushan Award in the year 1995-96. Maharashtra State Cooperative Banks Association awarded the Best Urban Bank Padmabhushan Vasantdada Patil Award for three consecutive years 1996-97, 1997-98 and 1998-99. Parsik Bank got awards for three consecutive years ending 98-99 from Organization called Yuvak Mudra, who organized competition in memory of Rajarambapu patil in regards with merit and principal of cooperative banks. Bris Indiglo has ranked Parsik Bank as follows in their survey First Number in Overall Ranking in Thane District. Second Number in Overall Ranking in all over Maharashtra State. Fourth Number in Safest Category

Gopinath Patil Parsik Janata Sahakari Bank endeavours to be a worldclass bank by continuously improving operational efficiency and enhancing customer delight. Ambitions to the core, and in-sync with the emerging banking landscape, the bank aims to deliver a superior banking experience to its patrons. With work culture built on the four pillars of operational excellence, customer focus, product leadership and people, Gopinath Patil Parsik Janata Sahakari Bank strives

SERVICES

CBS (Core Banking Services)

ATM Service | SMS Banking Safe Deposit | Senior Citizens Service Charges

CBS ( Core Banking Solution)

Core Banking Solution (CBS) is networking of branches, which enables Customers to operate their accounts, and avail banking services from any branch of the Bank on CBS network, regardless of where he maintains his account. The customer is no more the customer of a Branch. He becomes the Banks Customer. Thus

CBS is a step towards enhancing customer convenience through anywhere and anytime Banking.

All CBS branches are inter-connected with each other. Therefore, Customers of CBS branches can avail various banking facilities from any other CBS branch located any where in the world. These services are:

To make enquiries about the balance; debit or credit entries in the account. To obtain cash payment out of his account by tendering a cheque. To deposit a cheque for credit into his account. To deposit cash into the account. To deposit cheques / cash into account of some other person who has account in a CBS branch. To get statement of account To transfer funds from his account to some other account his own or of third party, provided both accounts are in CBS branches. To obtain Demand Drafts or Bankers Cheques from any branch on CBS amount shall be online debited to his account.

ATM (Automated Teller Machine) Service:-

The Bank's 17 ATM of 14 branches of the Bank are connected to Central ATM Switch at Data Center and Customers are able to do all the transactions through any of the Branches of the Bank in

Thane, Navi Mumbai & Pune. By using ATM Customer can transfter their fund from one Branch account to Other Branch account by ATM Link Process.

Safe Deposit Locker Keep your valuables safe with Parsik Bank Senior Citizen 0.75% Additional Interest to Senior Citizen Service Charges
New Service Charges w.e.f. 1st June 2007 NoParticularsCharges8Cheque Return Charges BC Inward by post Inward Clearing Outward ClearingRs 60/Upto Rs 1 lac Rs 120/Above Rs 1 lac - Rs 0.25% of the amount Upto Rs 50,000/- No charges Above Rs 50000 to Rs 1 lac - Rs 0.10% of the amount9O. B. C. CommissionUp to Rs 1000 Rs 20/- + postage Rs 5 per Thousand + postage Maximum Rs 1000/- + postage 10Bank Guarantee2.40% of guaranty amount 11Locker Charges (One time) Locker Rent Rs 300/-

Applicable as per Size of locker 12Cheque purchase commissionRs 3 per Thousand 13Safe CustodyRs 50 per Month14LCMaximum Int. Rate on Loan plus 2% more15Solvency CertificateUp to Rs 2 lac Rs 400/Above Rs 2 lacs 0.20% of the amount Maximum Rs 3000/- 16Pay Order / D D CancellationRs 30/-

DEPOSIT SCHEME

Fixed Deposit Recurring Deposit

Reinvestment Deposit Monthly / Quarterly Interest Scheme

Fixed DepositInterest Rate 15 to 45 days4.50%46 to 90 days5.50%91 to 180 days6.00%181days to below 1 year7.00%1 year & below 18months7.75%18months & below 2 years 8.50%2 years upto 3 years8.25%Above 3 year 8.00%For senior citizen additional 0.75% Interest (On all Fixed Deposits above 1 year)

Recurring depositInterest Rate

1 year & below 18months7.75%18months & below 2 years 8.50%2 years upto 3 years8.25%Above 3 years8.00%For senior citizen additional 0.75% Interest

Reinvestment DepositInterest Rate

1 year & below 18months7.75%18months & below 2 years 8.50%2 years upto 3 years8.25%Above 3 years 8.00%For senior citizen additional 0.75% Interest

Montly / Quarterly Interest Deposit

LOANS

Housing Loans | House Repairs Vehicle Loan | Car Loan Article Loan | Group Loan Scheme Term Loan For Business | Builders & Contractors

Housing Loans

Purpose:Purchase flat or Construction of HouseRate of interest:@ 10.50% p.a. upto Rs 25 lakhs for 5 years.:@ 11.00% p.a. upto Rs 25 lakhs for 5yr-15yr.:@ 11.00% p.a. above Rs 25 lakhs for 5 years:@ 11.50% p.a. above Rs 25 lakhs for 5yr15yr.Eligibility:Individual.Security :Mortgage of Flat Purchased / House constructed Repayment:Maximum Upto 15 years.E. M. I. per Rs. 1 LakhRate of Interest10.50%11.00%11.50%5 years21492174219910 years-1378140615 years-11371168

Vehicle Loan

NEW VEHICLE (Commercial Use)Rate of Interest:@ 12.00% p.a. Loan Amount :80% of Invoice Value + Registration Charges + InsuranceOLD VEHICLEIn case of Old Vehicle upto 5 years:50% of Agreement value or valuation whichever is less.Rate of Interest:Upto Rs 2 lakh @ 13.75 % p.a. Above Rs 2 lakh @ 15.00% p.a.Security:Vehicle & Salary/Income.Repayment :Maximum 5 years*Conditions Apply

TERM LOAN FOR BUSINESS

Purpose:Business Expansion Purchasing Machinery Raw Material Setting New ProjectRate of InterestLOAN AMOUNT INTERESTMEDIUM TERM BUSINESS & SMALL SCALE IND. Upto Rs 50 Lacs13.50%ABOVE Rs 50 Lacs upto 3 crores13.00%ABOVE Rs 3 crore 12.00% Eligibility:Individual / Firm / Partnership Firm /

Company etcLoan Amount:As per requirementMargin : 30%**Conditions Apply

TERM LOAN FOR BUILDERS & CONTRACTORS

Purpose:Business Expansion Purchasing Machinery Raw Material Setting New ProjectRate of InterestLOAN AMOUNT INTERESTAny Amount15.00% Eligibility:Individual / Firm / Partnership Firm / Company etcLoan Amount:As per requirementMargin :30%*Repayment :Maximum 7 years.

Article Loan

Purpose:Purchase of Furniture & Fixtures, Electronic / Consumable Appliances etc.Rate of Interest:@14% p.a.Eligibility:IndividualLoan Amount:Maximum upto Rs. 5 lacs.Margin:30% *.Security :Article / Furniture / Immovable PropertyRepayment:Upto 5 years.

Education loan

To brighten the future of bright & committed students by extending financial assistance to pursue higher professional / technical courses studies in India & Abroad through Educational Universities / Institutes / Organisations of good reputation & recognition.

Purpose:Higher Education. Rate of Interest :Upto Rs. 10 Lacs @ 10% p.a. Above Rs. 10 Lacs & Upto Rs. 20 Lacs @11% p.aLoan Amount:Upto Rs. 10 Lacs for studies in India. Upto Rs. 20 Lacs for studies in Abroad. Security:Collateral security owned by Parents or Guarantor. 'Whole Life' Insurance Policy on the life of the student, for the amount of loan.Repayment :Max. 120 months, including moratorium period

Professional Loan

Criteria:Doctor Advocate Architect CA & EngineerRate of InterestLOAN AMOUNT INTERESTUPTO Rs 10 Lacs12.50%ABOVE Rs 10 Lacs To Upto Rs 50 Lacs12.00%ABOVE Rs 50 Lacs12.50% Eligibility:Individual / Firm / Partnership Firm / Company etcLoan Amount:As per requirementMargin : 30%**Conditions Apply

Last 10 Years Bank's Progress

(Rs in Lacs) Year Share Capital Deposits Loans 1999481.29 2000 2000578.81 01 2001662.06 02 2002782.36 03 2003959.33 04 20041104.59 05 20051254.05 06 20061457.17 07 20071845.67 08 Asset Fund Customer Base Net Profits Dividend 27481 31898 36040 39683 43762 46612 48505 50871 54424 503.46 793.91 859.49 907.47 1059.89 752.63 1028.65 468.28 1540.16 15% 20% 15% 15% 15% 15% 15% 15% 15%

24556.88 9881.47 1892.06 30893.94 12463.20 2335.54 37418.04 13283.56 3311.01 42406.84 14289.81 5100.09 47979.21 18054.27 6475.50 52042.79 21762.46 7925.91 59317.84 26310.61 8897.01 70488.24 32340.40 10638.84 88013.54 45535.87 11406.69

20082242.75 09

94341.95 55482.54 13336.83

58096

1743.26

15%