Project On Investment Planning and Fundraising

A STUDY ON INVESTMENT PLANNING AND FUND RAISING
CHAPTER-1
INTRODUCTION
SECTION-A
HISTORY OF THE BANK GROWTH
With the development of communication, economic progress
and the spread of science of growth of economic and practical institution the
use of money also expanded , when the individual used to accept money in
the
form of deposit and lend it to the people who needed
meetings
requirement then it leads to existence of banking transaction . Innovation in

the fields of transport, development of energy and manufacturing have
resulted in innovations in the field of transport , development of energy and
manufacturing have resulted innovation of the sphere of banking.
ORIGIN OF THE WORD BANK

The banking activities were started in different kinds of
periods in different countries, there is no unanimous view regarding the
origin of the word bank. The word bank is set to be derived from the French
word banco (or) banches (or) bane (or) banque which means a bench. Another
common view that the bank might be originated from the german word Bank
which means a joint stock fund.
MEANING OF BANK :
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A bank is an institution, which deals in money it means that a bank receives

money in the form of deposit from the public and lends money for the development
of trade and commerce.
DEFINITION OF BANK :
The Indian bank regulation act of 1949 defines the term bank as the accepting
for the purpose of investment of deposit of money from the public, repayable on
demand or otherwise and drawal by cheque, draft and order (or) otherwise.
EVOLUTION OF MODERN BANKING :
Finance imports and exports. They deal with bills of exchange. Bills of lading,
and railway receipts, marine insurance policies and so on banks letters of credits,
travellers cheque, circular notes to customer. They assist industrial undertaking by
providing working capital and fixed capital requirement.
ANCESTORS OF MODERN BANKS :
Modern banks have three ancestors; the growth of banking in England in the 19 th
century paved way for the establishment of systematized banking system in the
world. Banks were performed in limited functions in past such as receiving
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deposits and issuing notes in the country. As time advanced it deals with a large
numbers of services to the customers.
They serve as custodians of stock and share. They are : Merchant Bankers.
Money Lenders.
Gold smiths.
CLASSIFICATION OF BANKS :
On the basis of functional classifications :
Commercial or deposit banks

Industrial banks
Agriculture banks
Exchange banks
Saving banks
Central banks
On the basis of structural classifications :
Group banking
Chain banking
Correspondent banking
Branch banking
Unit banking
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IMP
ORTANCE OF BANKING :
Banking has a great important in the economic development and also in the
development of different fields.
Bank are playing a crucial roles in the development of banking and they are as
follow :
Banks helps in formation of capital.

Banks play an important role in mobalizing the saving of people.
It directs the flow of funds into productive channels.
It provides finance to the government.
It provides safety and security to the surplus money of the
deposits.
It provides a convenient and economical means of transfer of
funds from one place to another.
It increases the utility of funds in backward regions.
It helps trade, commerce, industry and agricultural by meetings
there financial requirements.
It acquires control over the supply of money in the country.
They have recognized their social responsibilities as to grant credit
to every section of society.
SECTION B
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INVESTMENT PLANNING AND FUND RAISING

INVESTMENT PLANNING :DEFINITION OF INVESTMENT PLANNING :1.Capital budgeting is long term planning for making and financing proposed capital
outlays. Charles T. Horngreen
2.Capital budgeting consists in planning development of available capital for the
purpose of maximizing the long term profitability of the concern. Lynch
Need and importance of Investment planning :The need, significance or importance of Investment planning arises mainly
due to the following:
1.Large Investments:- Investment planning, generally, involve large
investment of funds. But the funds available with the firm are always limited and
the demand for funds exceeds the recourses. Hence, it is very important for a firm
to plan and control its capital expenditure.
1. Long-term Commitment of Funds:- Capital expenditure involves large
amount of funds for long-term on permanent basis. The long-term
commitment of funds increases the financial risk. Grater the risk involved,
greater is the need for careful planning of capital expenditure, i.e. investment
planning.
2. Irreversible Nature:- The capital expenditure decisions are of irreversible
nature. Once the decision for acquiring a permanent asset is taken, it
becomes very difficult to dispose of these assets without incurring heavy
losses.
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3. Long-term Effect on Profitability:- Investment planning decisions

have a long-term and significant effect on the profitability of a concern.
Investment decision affects present earnings and future growth and
profitability of the firm. Investment planning is importance to avoid
over investment or under investment in fixed assets.
4. Difficulties of Investment planning:- The long term investment decisions
are difficult because (i) decision extends to a series of years beyond the
current accounting period, (ii) uncertainties of future and (iii) higher
degree of risk.
5. National Importance. Investment planning though taken by individual
concern is of national importance because it determines employment,
economic activities and economic growth.
Thus, we may say that without using capital budgeting techniques a firm may
involve itself in a losing project. Proper timing of purchase, replacement,
expansion and alternation of assets is essential.
OBJECTIVES OF INVESTMENT PLANNING :The options for investing our savings are continually increasing, yet every
single investment vehicle can be easily categorized according to three fundamental
characteristics - safety, income and growth - which also correspond to types of
investor objectives. While it is possible for an investor to have more than one of
these objectives, the success of one must come at the expense of others.
Safety :-
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The safest investments are usually found in the money market, which includes
such securities as Treasury bills (T-bills), certificates of deposit (CD),commercial
paper or bankers' acceptance slips, or in the fixed income (bond) market in the
form of municipal and other government bonds, and in corporate bonds. It is
important to realize that there's an enormous range of relative risk within the bond
market. . In other words, it's incorrect to think that corporate bonds are always safe,
but most instruments from the money market can be considered very safe.
Income:The safest investments are also the ones that are likely to have the lowest rate of
income return or yield. Investors must inevitably sacrifice a degree of safety if they
want to increase their yields. This is the inverse relationship between safety and
yield: as yield increases, safety generally goes down and vice versa. Most
investors, even the most conservative-minded ones, want some level of income
generation in their portfolios, even if it's just to keep up with the economy's rate
of inflation.
Growth of Capital :This discussion has thus far been concerned only with safety and yield as investing
objectives, and has not considered the potential of other assets to provide a rate of
return from an increase in value, often referred to as a capital gain. Capital gains
are entirely different from yield in that they are only realized when the security is
sold for a price that is higher than the price at which it was originally purchased.
Selling at a lower price is referred to as a capital loss.
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Secondary Objectives:Tax Minimization

An investor may pursue certain investments in order to adopt tax minimization as
part of his or her investment strategy. A highly-paid executive, for example, may
want to seek investments with favorable tax treatment in order to lessen his or her
overall income tax burden. Making contributions to an IRA or other tax-sheltered
retirement plan, such as a 401(k), can be an effective tax minimization strategy.
Marketability/Liquidity
Many of the investments we have discussed are reasonably illiquid, which means
they cannot be immediately sold and easily converted into cash. Achieving a
degree of liquidity, however, requires the sacrifice of a certain level of income or
potential for capital gains.
The Bottom Line :As we have seen from each of the five objectives discussed above, the advantages
of one often comes at the expense of the benefits of another. If an investor desires
growth, for instance, he or she must
often sacrifice some income and safety.
Therefore, most portfolios will be guided by one pre-eminent objective, with

all other potential objectives occupying less significant weight in the overall
scheme.
BENEFITS OF INVESTMENT PLANNING :Investment planning helps you :
Generate income and/or Capital gains.
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Enhance your future wealth.

Strengthen your investment portfolio.
Save on taxes.
PROCESS OF INVESTMENT PLANNING:Investment planning is a complex process as it involves planning relating to the
investment of current funds for the benefit to the achieved in future and the future
is always uncertain.
1. Identification of Investment planning: - Top management, worker of any
department or any officer identify investment planning. The departmental
head analyses the various proposals by considering corporate strategies
and submits the suitable planning to the concerned officers.
2. Screening the Proposals: - The concerned officer screens the various
proposals received from different departments. They analysis these
proposals from various angles to ensure that these are in accordance with the
corporate strategies or selection criterion of the firm and also do not lead to
departmental imbalances.
3. Evaluation of Various Proposals: -The next step in the capital budgeting
process is to evaluate the profitability of various proposals. There are many
methods which may be used for this purpose such as pay back period
method, rate of return method, net present value method, internal rate of
return method etc.
4. Fixing Priorities: - Alter evaluating various proposals, the unprofitable or
uneconomic proposals may be rejected straight away. But it may not be
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possible for the firm to invest immediately in all the acceptable proposals
due to limitation of funds. Hence, it is very essential to rank the various
proposals and to establish priorities after considering urgency, risk and
profitability involved therein.
5. Final Approval and Preparation of Capital Expenditure Budget:
-Proposals meeting the evaluation and other criteria are finally approved to
be included in the Capital Expenditure Budget. However, proposals
involving smaller investment may be decided at the lower levels for
expenditious action. The capital expenditure budget lays down the amount of
estimated expenditure to be incurred on fixed assets during the budget
period.
6. Implementing Proposal: - Preparation of a capital expenditure budgeting
and incorporation of a particular proposal in the budget does not itself
authorize to go ahead with the implementation of the project. Hence
A request for concerned authority to spend the amount
He reviews the profitability of the project in the changed circumstances.
Then he assign responsibilities for completing the project within the given
time frame and cost limit so as to avoid unnecessary delays and over cost
expenses.
Network techniques used in the project management such as PERT and
CPM can also be applied to control and monitor the implementation of the
projects.
7. Performance Review: - The evaluation is made by comparing
Actual expenditure with the budget,
the actual return from the investment with the anticipated return.
The unfavourable variances, if any should be identified with the causes of the
same so that corrective action may be taken in future.
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Factors Influencing the investment planning :1. Availability of Funds : Funds are available in different sources.
Equity capital, Debentures and preference capital can be raised through the
primary market.
Term Loans are available through commercial banks, financial institution and
Non Banking financial companies.
The investment decisions are to be planned to raise cheaper source of funds.
Hence, investment decisions are influenced by availability of funds.
2. Structure of Capital: Financial structure may contain only equity or both debt and
equity.
Equity capital has no privilege of leverage.
D:E ratio will offer the leverage benefits, through which a firm increases the
returns and recover the investment quickly.
Hence the capital structure influences the investment decisions.
3. Taxation Policy: Tax holiday, concessional sales tax, stamp duty, excise duties,
direct subsidies, if investment proposal is judicious. This helps the firm to recover
the investment quickly. Therefore, one has to consider Taxation policy at the time
of capital budgeting.
4. Government Policy: The industrial policy, foreign trade policies and finance
policies of the Govt. effects investment policies of a company. 'Make or buy'
'Delete or Continue' Liberalization, Privatization and Globalization are influenced
by Government policies. All these are to be noted while making investment
decisions.
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5. Leading Policies of the Financial Institutions: The various policies of term loan,
documentation, security margin money, prime lending rate, general state of the
economy, money supply etc. will have direct impact on the flow of funds or
lending policies. A business firm seeking financial assistance from these
institutions has to carefully analyses proposals.
6. Immediate need of the Project: Need
Some decisions of investment may yield immediate returns
Some decisions of investment may not yield immediate returns, e.g., Investment
decisions for expansion, diversification and on R/D are for long term.
Any wrong decision taken will becomes too costly to the organization/ banking
seector.
7. Earnings: Earnings of the proposed project
If the earning capacity of the project is not good, it is not advisable to take
such planning.
If the earning capacity of the project is good, it is advisable to take up such
proposal.
Thus profitability of the project also decides the investment.
8. Capital Return: It refers to the pay back of investment.
If company is expecting accept project with short payback period
If company is ok with slow returns accept project with long payback period
Financial manager has to carefully evaluate the proposal at the time of finalizing
the investment decisions.
9. Economic Value of the Project: Projects cash inflows and outflows.
Progressed project there will be a need for more funds and the project must be
capable of running its activities by the generated funds. Thus, economic value of
the project also influences the investment decisions.
10.Working Capital: There are two types of working capital requirement
Permanent working capital is permanently needed in the organisation.
Variable working capital varies with work.
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Therefore financial manager has to consider working capital requirement of the

firm in finalising the investment decision.
11.Accounting Practices: While making an investment decisions standard accounting
practices have to be evolved. The accounting policies are differs for regarding
treatment of depreciation , the type of capital , capital cost , sources of funds,
,capital structure, additional working capital required, economic viability of the
project, time value of money , installation expenses etc.
12.Trends of Earnings: as it helps to know the repayment capacity and therefore
trends of earning is necessary for investment decision making.
SOURCES OF INVESTMENT PLANNING / LONG TERM FINANCING:
Retained Surplus
Borrowings-Debentures
Share Capital
Sources of long term Finance
Public Deposit
Saving from non resident
Lease financing
I. Share Capital
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Section 2(46) of the companies Act, 1956 defines it as "a share in the share capital
of a company, and includes stock except where a distinction between stock and
shares is expressed or implied".
Merits of Equity Shares

1. Company not have obligation to pay dividend until it earns sufficient
divisible profits.
2. Equity Share is a permanent source of fund
3. Equity capital helps the company to exploit opportunity of Debt Equity
ratio. Only when a company has sufficient equity capital, it can raise debt
capital.
4. The obligation to repay the equity capital arises only at the time of
liquidation.
5. Equity shares attract dynamic investors.
6. It also helps the shareholders to increase their liquidity position, as they
can dispose the shares in the stock exchange.
7. Equity shares help the holders to participate in the management of the
company.
Demerits of Equity Shares

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1. It creates inefficiency in the organisation, as it does not have permanent

obligation either to repay the principal or the interest.
2. Equity shareholders may interfere in smooth running of the organisation.
3. During boom period, equity shares may encourage too much of
speculation.
4. Equity shares will not attract passive investors who always prefer to have
steady income.
5. Issuing excess equity shares may lead to over capitalisation.
6. During recession, issue of equity shares will become tough task and
forces the company to manage their funds only through the debt.
7. Meeting expectations of the shareholders is a difficult task.
8. Issue of equity capital efficient system of capital market is a must.
9. Equity capital is repaid only at the time of liquidation of the company.
II. Borrowings-Debentures
Debenture is a document or an instrument issued (i.e., sold) by a company to
mobilizes the loan amount from the public. In other words, a debenture is a
certificate issued by a company under its seal acknowledging a debt due by it to its
holder
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Advantages
1. Debenture a long or medium term finance and a cheaper source of funds.
2. Interest paid to debenture holder is an expense charged against profit. Hence
it reduces the size of the profits, in turn reduces the tax liability.
3. During recession, debt capital is the only means to raise funds.
4. The instrument like convertible debenture attracts all types of investors.
Disadvantages
1. Increases the financial risk of the company.
2. It cannot be used as long term investment.
3. It reduces the freedom of the management in making investments..
4. Issue of debentures may not attract all types of investors.
5. Calls for efficient financial administration.
III. Retained Surplus

Retaining excess profits of a company or retaining a portion of divisible profits for
future financial requirement is known as retained earnings or ploughing back of
profits.
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Advantages
1. It is a cheaper means of financing.
2. Cost of flotation does not arise.
3. It reflects the financial soundness of a company
4. It helps in tax planning.
Disadvantages
1.
Huge amount of finance cannot be raised.
2.
Management may misuse those funds.
IV. Public Deposit

Acceptances of fixed deposits from the public by all types of company are public
deposit. Public deposits are unsecured, more risky, less liquid and without any
advantage, any tax advantage,
Govt of India has framed the Rules, Some of them are: Ceiling on Deposits
Maturity of Deposits
Forms and Particulars of Advertisement
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Form of Application for Deposit

Register of Deposit Etc
Advantages
1. It is a cheaper source of funds.
2. Public deposits can be raised easily during recession.
3. It is medium term finance.
4. Less Cost of raising.
Disadvantages
1. Huge sum of money cannot be raised.
2. The maturity period is short.
3. Only reputed companies can issue.
V. Saving from non resident

Savings from Non-Resident Indians are those funds raised from non-resident
Indians.
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Advantages
1. Government encourages NRI investments, hence it is easy to raise.
2. It serves as a means for long and medium term financial requirement.
3. Increase the reputation.
Disadvantages
1. Procedure to raise funds from NRI is complex.
2. Only reputed companies can raise funds .
3. It depends on socio-economic and politic situation of the country.
VI. Lease financing

It is an instrument through which lessee can avail the privilege possessing a
machine or an asset on rental basis. It involves the use of an asset without
ownership. A firm acquiring an asset is called the leasee and the owner of the
asset is called the lessor.
Advantages
1. Quick decision can be made to sanction leasing.
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2. Can enjoy depreciation benefit.

3. Recovery of lease amount will be comfortable.
4. It is highly secured means of financing.
5. Reduce his tax liability.
6. It is the best means of financing high tech machines.
Disadvantages
1. It requires expertised analytical skill to evaluate the proposals.
2. Leasing may be provided only to blue chip companies.
3. It serves as medium term finance only.
4. It is not suitable for Small Scale and Medium Sized industries.
Short term financing
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Sources of Short term financing

Trade credit
Bank Credit
Bank financing of Accounts Receivables
Factoring
Bank financing of Inventory
Working Capital Financing
I. Trade credit
Trade credit refers to the credit extended by the suppliers of goods in the normal
course of business. In other words credit offered by the supplier of the raw
materials.
II. Bank Credit

Commercial banks are the important sources of short term capital. The bank
provides variety or forms of credit such as
a. Loans: - When a bank makes an advance in lump-sum against some security it
is called a loan. In case of a loan, a specified amount is sanctioned by the bank
to the customer. The entire loan amount is paid to the borrower either in cash or
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by credit to his account. The borrower is required to pay interest on the entire
amount of the loan from the date of the sanction,
b. Cash Credits: - A cash credit is an arrangement by which a bank allows his
customer to borrow money up to a certain limit against some tangible securities
or guarantees. The customer can withdraw from his cash credit limit according
to his needs and he can also deposit any surplus amount with him. The interest
in case of cash credit is charged on the daily balance and not on the entire
amount of the account.
c. Overdrafts: - Overdraft means an agreement with a bank by which a current
account-holder is allowed to withdraw more than the balance to his credit up to
a certain limit. There are no restrictions for operation of overdraft limits. The
interest is charged on daily overdrawn balances.
III. Bank financing of Accounts Receivables

Purchasing and discounting of bills is the most important from in which a bank
lends without any collateral security. The seller draws a bill of exchange on the
buyer of goods on credit. The bank purchases the bills payable and credits the
customer's account with the amount of bills less discount. At the maturity of the
bills, bank presents the bill to its acceptor for payment. In case the bill discounted
is dishonoured by non-payment, the bank recovers the full amount of the bill from
the customer along with expenses in that connection.
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IV. Factoring
Factoring is a "continuing arrangement between a financial institution (the 'factor')
and a business concern (the 'client') selling goods or services to trade customers
(the 'customers') whereby the factor purchases the client's book debts (accounts
receivables) either with or without recourse to the client and in relation thereto
controls the credit extended to the customers and administers the sales ledger."
It provides basic services such as:
a) Administration of the seller sales ledger,
b) Provision of prepayment against the debts,
c) Collection of the debts
d) Covering the credit risk involved
In the normal factoring arrangements 90 days credit collection period will be
allowed
V. Bank Financing of Inventory

Advances may be given against inventory which may be in the form of raw
materials, work in process or finished goods. Inventory may be secured by pledge
and is in the actual possession of the bank. In the event of non-payment of debt, the
pledger or the bank has the right to sell the goods.
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VI. Working Capital Financing

The companys working capital also acts as one of the sources of short term
finance.
FUNDRAISING :MEANING OF FUNDRAISING :- Fundraising typically refers to efforts to

gather money for non-profit organizations, it is sometimes used to refer to the
identification and solicitation of investors or other sources of capital for for-profit
enterprises.
DEFINITION OF FUNDRAISING :Andreasen and Kotler (2008) define fundraising as an activity of collecting
financial resources and identify the main sources of funds. They emphasize that the
nonprofit sector (fundraising included) has gone through three orientation phases
in its development, as related to the product, sales and marketing orientation.
GOALS AND OBJECTIVES OF FUNDRAISING :Fundraising is essential to nonprofit and charitable organizations. Unlike a forprofit organization, nonprofits do not generate sales revenue. In order to stay
operational, executive directors rely on government funds, grants, donors and
volunteers. For-profit companies may participate in fundraising projects that
benefit nonprofits. This usually happens within the company and involves
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employees pledging to donate a certain amount of money. Fun activities, such as

contests and marathons may be one of the ways an organization decides to raise
funds. Engaging the community in the organization's purpose is a common goal
and objective.
Donors
The gap between what a nonprofit needs to serve the community and its base
funding is constant. Fundraising goals do not just focus on filling that gap shortterm. Finding and developing relationships with donors who will continue to make
financial contributions is desirable. One of the ways nonprofits accomplish this is
by keeping track of donor information. The organization communicates with past
and present contributors, by reminding them of the nonprofit's role in the
community. A nonprofit may choose to inform donors of current and upcoming
projects, such as holiday food drives or new housing developments.
Financial
Even though fundraising is an ongoing reality for most nonprofits, it is typical to
define short-term financial objectives. Managers must determine how much the
organization needs to carry out different projects. A capital project, such as
building a new house, may require more funds than distributing food. Besides
projects, managers must also figure out how much the organization needs to fund
its basic operations and ongoing services. If a food bank's mission is to provide
nutrition to those in need, its director needs to know how much the overhead is
going to cost. Overhead might include employees, a warehouse, and fleet of
vehicles.
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Volunteers
Nonprofits often do not have the financial resources to hire all the manpower they
need. Volunteers are one of the backbones of these organizations. Without enough
volunteers, fundraising events, capital projects and day-to-day operations may not
go as smoothly. Fundraising is a way to recruit a temporary and continuous
volunteer base. Many organizations offer different options that match with the
interests and skills of potential volunteers. For example, a food bank may have
volunteer opportunities in office work, marketing, donations, or the warehouse.
Awareness
Since a nonprofit organization relies on community support, fundraising also
strives to create awareness. This includes letting the community know the
organization exists, and what it does. A crucial aspect of creating awareness is
convincing the community why the organization should exist. When soliciting
people for their money, donations or time, a manager should find a way to align the
nonprofit's mission with people's subjective concerns and interests. This is similar
to target marketing, where managers identify population segments with unique
needs and characteristics.
PROS AND CONS OF FUNDRAISING

PROS
They can raise impressively large amounts of money.

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They bring new supporters.
They can add to your visibility and reputation.
They open doors to additional assets and corporate support.
They bring together board, staff, and community workers in commitment to

a shared goal.
Because they have a specific purpose and timeline, such campaigns are
intense and exciting.
CONS
They are extremely time-consuming for staff.
They require computer systems sophisticated enough to keep track of

mountains of information.
You should not even think about such campaigns until you have worked
through all the steps in this guide. For a campaign to be successful, the
organization must have a strong financial base, a clear direction, high visibility,
donor support, committed leadership, and a team of informed, motivated
volunteers.
If this is your first campaign, you will probably need to hire a consultant.
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You can use the funds you raise only for capital or endowment purposes, not
operational purposes.
CHAPTER 2
RESEARCH DESIGN
A Research design is the arrangement of conditions for collection and analysis data
in a manner that aims to combine relevance to the research purpose with economy
in procedure.
Research design is the conceptual structure with in which research is conducted. It
constitutes the blueprint for collecting measurement and analysis of data.
TITLE OF THE STUDY :The topic of the study is INVESTMENT PLANNING AND FUNDRAISING
FOR THE BANGALORE CITY CO-OPERATIVE BANK LIMITED
STATEMENT OF PROBLEM :The co-operative banks accept deposits and also lend money to the people
who require it for various purposes. Lending of funds to traders, businessmen and
industrial enterprises is one of the important activities of co-operative banks.
Investment and funds granted by commercial banks are highly beneficial to
individuals, firms, companies and industrial concerns. The growth and
diversification of business activities are effected to a large extent through bank
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financing. Investment and funds granted by banks help in meeting short-term and
long term financial needs of business enterprises.
Hence forth the study is undertaken to analysis the role played by banks in
the business growth.
OBJECTIVE OF THE STUDY:

1. To study the investment planning and fundraising schemes of BCCBL.
2. To analyze the effectiveness of different schemes offered by BCCBL.
3. To enhances people's faith in the banking system.
4. To study the growth of BCCBL.
5. To differentiate borrowing rates form lending.
6. To distribution between long term and short term.
SCOPE OT THE STUDY:

The scope of the study is to find out how asset and liabilities are
maintained. It is mainly done through balance sheet and profit and loss of the
company. The study is restricted only to four years financial statement.
The project has tried to analyze the various investment and funds.
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LIMITATIONS:
Difficult in acquiring the complete information from the bank which would
affect privacy of banking activity.
Time is major constraint. An in-depth study could not be undertaken due to
shortage of time.
There was certain of reluctance on the part of the bank to give the necessary
data, so only the published information and the information from the bank's
website had to be used.
METHODOLOGY:
The study requires data to be collected from both primary and secondary
source. An interview schedule was used to collect the primary data. Secondary data
was collected company specific balance sheet, income statement, report journal
etc., to strengthen the findings of primary data and gain better understanding.
Data collection:
The present study makes use of primary and secondary data from different
sources.
a) Primary data:
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It was generated through personal enquires and personal interview with

general manager, The Bangalore City Co-Operative Bank Limited.
b) Secondary data:
The reliable, relevant and requisite data has been, collected & from various
magazines like giant, newspaper etc. and other information was collected from the
annual report of the bank from website of the bank i.e., www.bccbl.co.in.
Plan of Analysis:
The collected from both primary and secondary source was compiled,
classified and tabulated, using financial management tools such, as trend analysis;
to arrive at findings and analysis. Interference was drawn from the findings. The
finding was arriving at conclusion and suggestions.
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CHAPTER 3
BANKING PROFILE
HISTORY:The Bangalore City Co-operative Bank Limited, a leading Urban Co operative
Bank in India was founded by Sri. K. Ramaswamaiah and other Co-operators
during the beginning of the Co-operative movement in our country, with prime
object of encouraging thrift and savings habit among the public and to freed the
members from the clutches of private money lenders.
Initially the bank started as a Credit co-operative Society in the year 1905 and later
converted as Urban Co-operative Bank on 06-04-1907. The bank began with 150
members, mobilised Share capital of Rs.2727 from them and also mobilized
Deposits of Rs. 2265 from which advanced Rs.4036/- and disbursed dividend at
13.02% in the inception year. Today the total business of the bank has crossed Rs.
1300.00 crores and now it is placed as Top Urban Co-operative bank of the State of
Karnataka.
The Bank is functioning on the sound principles of co-operation and successfully
completed more than 100 years of banking service. The bank is continuously
making profit since from the date of its inception and disbursing dividend to its
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members and also in 'A' Grade Audit classification. Visionary and transparent
directors on the board and dedicated professional staffs are responsible for this
achievement.
Our bank celebrated Silver Jubilee in 1932, Golden Jubilee in 1957, Diamond
Jubilee in 1967, Platinum Jubilee in 1977 and Centenary Celebrations on 31-032007.
Area of Operation and Branches :Up to 2009 the bank had the limit to the area of its operations to the city of
Bangalore. In the year 2009 the bank has extended its area of operation to the
entire State of Karnataka with the permission of Reserve Bank of India and of
Registrar of co-op Societies of Karnataka.
The Bank is having its Administrative Office at No. 3, Pampa Mahakavi Road,
Chamarajpet, Bangalore.
Presently bank is having 13 branches operating in prime locations of Bangalore
City with own building at Chamarajpet, Indiranagar and has plans to expand its
branch network to all the major cities of Karnataka State. For the convenience of
the customers and also to provide speedy and satisfactory customer service all the
branches are computerized and are functioning in customer friendly morning and
evening working hours.
DD & PAY ORDERS
Page 33
Pay Orders
Bank issues Pay Orders at lesser commission charges.
No commission will be charged for the Pay Orders purchased by the Senior
Citizens to pay their Utility bills and their Children's School / college fees.
Demand Drafts
The bank has the arrangement with KSC Apex Bank Ltd. under IMAS to
issue Demand Drafts through out Karnataka.
The bank is also having arrangement with HDFC Bank, IDBI Bank to issue
Demand Drafts throughout India.
INSURANCE
Life Insurance
We are the Corporate Agents for the distribution of Life Insurance products,
of Life Insurance Corporation of India. Under this tie up arrangement, we
offer all the life insurance products of LIC of India.
General Insurance
We have a tie up with ICICI Lombard under referral agency scheme and we
offer various General Insurance products viz. Vehicle Insurance, Home
Insurance, Personal accident policy etc.
SAFE DEPOSIT LOCKERS
Page 34
Bank is providing Safe Deposit Lockers facility in all its branches at lower
annual rent for its customers.
BANK GUARANTEES
Bank issues Guaratees on behalf of customers, subject to fulfillment
of certain conditions.
RTGS AND NEFT
Bank has tie up arrangement with IDBI and Indus Ind Bank for
providing RTGS and NEFT facility to facilitate easy Transfer of Funds.
Vision & Mission
The Bangalore City Cooperative Bank believes that every individual
from each strata of society needs affordable, relevant and quality
banking to fulfill personal aspirations. The vision of the bank is to
constantly strive towards meeting this social need by providing worldclass infrastructure for cooperative banking.
Providing banking service with a smiling face to make our Customers
smile.
To mobilize deposits, disburse loans prudently and invest surplus
wisely with the involvement of our committed, dedicated and
hardworking staff to achieve the best.
Goals:
Page 35
To emerge as the best Co operative Bank of the country.

To mobilize Deposits of Rs. 1000 Crores and to increase our Loans and
advances to Rs. 800 Crores & to increase our branch network to 25 branches
in near future.
To implement Core Banking System to provide State of art Banking Service
to the customers.
Achievements :Bank awarded as Best Urban Co-operative Bank of the then Mysore Province for
the years 1923, 1927 & 1928 with meritorious Certificate and Shield from the then
Yuvaraja of Mysore Sri Sri Sri Kanteerava Narasimharaja Odeyar Bahadur.
Also awarded as Best Urban Co-operative Bank by the Government of Karnataka
for the years 2001-02, 2003-04 & 2007-08.
LOANS FOR CO-OPERATIVE BANK :
LOANS FOR HOUSE CONSTRUCTION AND PURCHASE OF SITE
LOAN AGAINST MORTGAGE OF PROPERTY/SITE
TRANSPORT OPERATOR LOAN (Three wheeler and four wheeler)
TWO WHEELER VEHICLE LOAN
Page 36
O D ON CURRENTS ACCOUNT AGAINST MORTGAGE OF PROPERTIES

SURETY LOAN
BUSINESS LOAN
JEWEL LOAN
NSC & LIC BOND LOAN
FEATURES OF BCCBL : Established in the year 1907, providing more than 108 years of banking
service successfully.
Our Bank is No.1 urban co-operative Bank of the State of Karnatakka in its
financial position.
Bank has benn honoured as the best urban co-operative Bank of the State by
the Maharaja of Mysore in the year 1926, 1927, & 1928 and also by the
Govt. of Karnataka in the year 2002, 2004, 2007-08, and 2011-2012.
Bank is continuously under A audit classification from the date of
inception.
Higher interest rates on deposits compared to commercial & nationalised Banks.
Monthly interest payments in deposit without any discounting.
No penal interest for premature closure of deposit.
Immediate loan against deposits up to 90% of deposit amount.
Deposit are covered under deposit insurance and credit guarantee
corporation of India.
LOAN FACILITIES PROVIDED BY BCCBL :-
Page 37
Immediate loans against gold jewels per gram RS. 1800/- and upto 10.00
lakhs per member at 12.50% p.a.
Loan facility for purchase of vehicle at competitive interest rates.
Loan facility against mortgage of immovable property for purchase viz.
trade, business, factory, educations, house repairs etc. repayable in
convenient monthly installments.
Loan facility for purchase of site, construction of house, repayable in in
convenient monthly installment.
Easy personal loans.
Common Features
Minimum Period of Deposit.
o 30 days for all fixed deposits.
o 1 year for Cash Certificates and Recurring Deposits.
No penalty for Premature Withdrawal of Term Deposits.
Loan / Overdraft facility available against all the Term Deposits upto 90 %
of the deposit amount.
Minimum Deposit Amount.
o Rs. 100.00 for Fixed Deposit and Cash Certificates.
o Monthly installment of Rs. 50.00 and in multiples of Rs. 10.00 there
onwards for Recurring Deposits.
Page 38
Nomination facility available for all deposits.

Total deposits of a customer upto Rs. 1,00,000.00 is insured under Deposit
Insurance & Credit Guarantee Corporation of India, Mumbai.
Due date for RD installment payment : On any day of the calendar month
(On or before the month end) subject to a condition that the last installment
be paid on or before the due date of the month.
Penalty for the default in payment of RD/NYD monthly installment.
A/c of period 5 years and Less Rs. 1.50 per Rs.100.00 per month.A/c of
period 5 years and above Rs. 2.00 per Rs. 100.00 per month.
Savings Bank Account
SB accounts can be opened in the following categories:
o An individual in his own name.
o More that one person in their joint names.
o A guardian on behalf of the minor.
o Clubs, Associations, Charitable institutions and Professionals, Society,
Trust etc. with Certificate from Income Tax Authorities regarding
exemption of their income from payment of income tax.
Page 39
Free accidental policy up to Rs. 1,00,000.00 will be given to the SB A/c

holders who give consent to maintain Rs. 5,000.00 minimum balance in their
account on daily basis.
Minimum Balance to be maintained in the Account is Rs. 500.00 with
cheque book facility and Rs. 250.00 without cheque book facility.
Savings No frill Account: Savings Bank account can also be opened with
minimum balance of Rs.100/- with other conditions.
Current Account
Current Account is meant for those who operate the account frequently. This
account can be opened by Traders, Businessmen, Corporate bodies, Wholesalers,
Retailers, Distributors etc.
Minimum balance to be maintained in the account is Rs. 1000.00
Fixed Deposit Account (FD)
Fixed Deposit can be opened by any person or Trusts, firms, institutions etc. This
account can be opened for a fixed amount for a fixed period at the prescribed rate
of interest.
Interest on Fixed Deposit is :
paid Monthly
Page 40
Quarterly
Half yearly or Yearly either by cash
pay order
transferring to their a/c
by transferring to their a/c through RTGS
NEFT.
Rajatha Cash Certificate
Interest will be compounded on quarterly basis and at the time of maturity deposit
amount along with interest will be paid to the depositor.
Recurring Deposit
In this deposit scheme depositor deposits a fixed monthly installment every month
for a fixed period at the prescribed rate of interest. Interest will be compounded on
quarterly basis and at the time of maturity deposit amount along with interest will
be paid to the depositor.
INTEREST RATE
TERM LOANS.
TERM DEPOSITS.
SAVINGS BANK.
Page 41
TERM LOANS
No.
Loan Schme
Loan Amount
interest
w.e.f date
Upto Rs.5,00,000.00
O D on Currrent
13.50%
Rs. 15,00,000.00 & above
Account against
14.75%
Rs. 5,00,001 to Rs.
Mortgage of Properties
14.50%
15,00,000.00
Loan aginst mortgage

of Property/Site
Rs. 5,00,000.00 to Rs.

14,99,999.00
Upto Rs. 4,99,999.00
15.5%
14.5%
30-11-0001
Loans for House

construction and
Purchase of Site
Upto Rs. 4,99,999.00

13%
Rs. 5,00,000.00 to Rs.
13.5%
14,99,999.00
14.5%
Rs. 15,00,000.00 & above
30-11-0001
Page 42
01-042012
Upto Rs.5,00,000.00
O D on Currrent
13.50%
Rs. 15,00,000.00 & above
Account against
14.75%
Rs. 5,00,001 to Rs.
Mortgage of Properties
14.50%
15,00,000.00
30-11-0001
Transport operator
Loan (Three wheeler,
Truck, Bus)
70 % of the cost of the

Vehicle
13%
30-11-0001
Surety Loan
Maximum Rs. 1.00 lakh
16.5%
30-11-0001
Business Loan
Maximum Rs. 1.00 lakh
16.5%
30-11-0001
Jewel Loan
Rs. 1900.00 per gram &

Maximum Loan amount
Rs. 10.00 lakh
12.5%
30-11-0001
Two wheeler Loan
70 % of the cost of the

Vehicle
13%
30-11-0001
10
NSC & LIC Bond

Loan
70 % of the Surrender
Value
14%
30-11-0001
Page 43
FINANCIAL POSITION OF A BANK :-
Rs. in Crores
31/03/2013
Rs. in Crores
31/03/2014
SHARE CAPITAL
43.16
50.99
RESERVES AND OTHER

FUNDS
71.44
81.07
DEPOSITS
975.96
1144.27
WORKING CAPITAL
1090.56
1275.44
LOANS AND ADVANCES
692.55
842.76
NET FROFIT
11.09
13.41
NET NPA %
0.86
1.74
PARTICULARS
Page 44
CHAPTER :- 4
DATA ANALYSIS AND INTERPRETATION:
TABLE NO 1 :- A table showing the increment growth of nominal shares :-
Year
Rs
Prcnt%
2011
76,970.00
100%
2012
88,630.00
115%
2013
109,410.00
142%
2014
132,760.00
172%
ANALYSIS :As we come across by seeing the table , we know that 2012
nominal shares value has slightly increased to 115% than the 2011 nominal
Page 45
shares value. In 2013 and 2014 the nominal shares value has slightly
increased to 142% and 172 percentage, by seeing this graph we can assure
that nominal shares are good for this co operative bank.
GRAPH NO 1 :- A graph showing the increment growth of Nominal shares :-
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
2011
2012
2013
INTERPRETATION :-
Page 46
2014
Increase in the nominal shares is an healthy trend of a bank and denotes source for
raising fund. So, we come across that nominal shares are satisfactory for this cooperative bank.
TABLE NO 2 :- A table showing the increment growth of Regular shares.
Year
Rs
prcnt%
2011
232,268,034.00
100%
2012
286,393,699.00
123%
2013
361,696,987.00
156%
2014
439,054,337.00
189%
ANALYSIS :-
Page 47
As we come across by seeing the table, we know that 2012 regular shares
value has slightly increased to 123% than the 2011 regular shares value. In
2013 and 2014 the regular shares value has slightly increased to 156% and
189%, by seeing this graph we can assure that regular shares are good for
this co operative bank.
GRAPH NO 2:- A graph showing the increment growth of Regular shares :
200%
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
2011
2012
2013
Page 48
2014
INTERPRETATION :Increase in the regular shares is an good healthy trend for a bank and
denotes sources for fundraising. So, we can say that regular shares are
good/satisfactory for this co-operative bank.
TABLE NO 3 :- A table showing the increment growth of Associate shares :
Year
Rs
prcnt%
2011
54767903
100%
2012
63696683
116%
2013
69852975
128%
2014
70756175
129%
Page 49
ANALYSIS :As we come across by seeing the table, we know that 2012 Associate
shares value has slightly increased to 116% than the 2011 Associate shares
value. In 2013 and 2014 the associate shares value has slightly increased to
128% and 129%, by seeing this graph we can assure that Associate shares
are good for this co-operative bank.
GRAPH NO 3 :- A graph showing the increment growth of Associate shares :-
140%
120%
100%
80%
60%
40%
20%
0%
2011
2012
2013
Page 50
2014
INTERPRETATION :Increase in the associate shares is a healthy trend for a bank and denotes
source for fundraising.so, we can say that associate shares are good/
satisfactory for this co-opeartive bank.
TABLE NO 4 :- A table showing the increment growth of total shares :-
Year
Rs
prcnt%
2011
287,112,907.00
100%
2012
350,179,012.00
122%
2013
431,659,372.00
150%
2014
509,943,272.00
178%
ANALYSIS :-
Page 51
As we come across by seeing the table, we know that 2012 TOTAL shares
value has slightly increased to 116% than the 2011 total shares value. In
2013 and 2014 the total shares value has slightly increased to 128% and
129%, by seeing this graph we can assure that total shares are good for this
co-operative bank.
GRAPH NO 4 :- A graph showing the increment growth of Total shares :
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
2011
2012
2013
INTERPRETATION :Page 52
2014
Increase in total deposit is an good trend for the bank and denotes sources
for raising fund. So, we can say that total deposit are satisfactory for this
company.
TABLE NO 5 :- A table showing the increment growth of Total reserves:
Year
Rs
prcnt%
2011
542610058
100%
2012
631696730
116%
2013
704423015
130%
2014
810678281
149%
Page 53
ANALYSIS :As we come across by seeing the table, we know that 2012 total reserves
value has slightly increased to 116% than the 2011 total reserves value. In
2013 and 2014 the total reserves value has slightly increased to 130% and
149%, by seeing this graph we can assure that total reserves are good for this
co-operative bank.
GRAPH NO 5 :- A graph showing the increment growth of total reserves :
160%
140%
120%
100%
80%
60%
40%
20%
0%
2011
2012
Page 54
2013
2014
INTERPRETATION :Increase in the total reserves is an healthy trend for the company. It keeps
or save money for the future use. So, we can say that total reserves are good
for the co-operative bank.
TABLE NO 6 :- A table showing the increment growth of fixed deposits :-
Year
Rs
prcnt%
2011
2,366,248,560.00
100%
2012
3,042,657,287.00
129%
2013
3,842,640,293.00
162%
2014
4,138,480,155.00
175%
Page 55
ANALYSIS :As we come across by seeing the table, we know that 2012 fixed deposit
value has slightly increased to 129% than the 2011 fixed deposit value. In
2013 and 2014 the fixed deposit value has slightly increased to 162% and
179%, by seeing this graph we can assure that fixed deposit are good for this
co-operative bank.
GRAPH NO 6 :- A graph showing the increment growth of fixed deposits :-
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
2011
2012
2013
Page 56
2014
INTERPRETATION :Since increase in the fixed deposit shows a healthy trend for a bank. In
other word we can say that it attracting the investors. So we assure that fixed
deposit are satisfactory for this co-operative bank.
TABLE NO 7:- A table showing the increment growth of recurring deposit :-
Year
Rs
Prcnt%
2011
82,140,736.00
100%
2012
94,503,046.00
115%
2013
123,820,360.00
151%
2014
155,588,192.00
189%
Page 57
ANALYSIS :As we come across by seeing the table, the recurring deposit are increased
year by year. In 2012 the percentage has increased to 115% than the 2011
percentage. In the coming next year i.e in 2013 and 2014 the percentage has
gradually increased to 151% to 189%. So, we can say that recurring deposit
are good for this company.
GRAPH NO 7 :- A graph showing the increment growth of recurring deposit.
200%
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
2011
2012
2013
Page 58
2014
INTERPRETATION :Increase in the recurring deposit shows a good healthy trend for this bank
and it denotes sources for fundraising. So we can assure that recurring
TABLE NO 8 :-A table showing the increment growth of security deposit :
Year
Rs
Prcnt%
2011
86,193.00
100%
2012
15,281.00
18%
2013
15,281.00
18%
2014
15,281.00
18%
Page 59
ANALYSIS :As we come across by seeing the table, we know that 2012 security deposit
value has decreased to 18% than the 2011 security deposit value. In 2013
and 2014 the security deposit value remained constant, by seeing this graph
we can assure that deposit deposit are not satisfactory for this co-operative
bank.
GRAPH NO 8 :- A graph showing the increment growth of security deposit:
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2011
2012
2013
Page 60
2014
INTERPRETATION :Decrease in the security deposit shows that it is not satisfactory for this cooperative bank. In this customers are not following security deposit. Or its
not focusing on the security deposit. So, we can assure that security deposit
are not satisfactory for this co-operative bank.
TABLE NO 9:- A table showing the increment growth of total deposit :-
Year
Rs
Prcnt%
2011
5,976,210,335.00
100%
2012
7,360,992,441.00
123%
2013
9,759,647,835.00
163%
2014
11,442,734,763.00
191%
Page 61
ANALYSIS :As we come across by seeing the table, we know that 2012 total deposit
value has slightly increased to 123% than the 2011 total deposit value. In
2013 and 2014 the total deposit value has slightly increased to 163% and
191%, by seeing this graph we can assure that total deposit are good for this
co-operative bank.
GRAPH NO 9:- A graph showing the increment growth of total deposit :
200%
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
2011
2012
2013
Page 62
2014
INTERPRETATION :Since, deposit are increased year by year it indicating the positive (+ve)
note for the bank and it shows bank is expanding. So , total deposit are good/
satisfactory for this co-operative bank.
TABLE NO 10:- A table showing the increment growth of TATA mutual fund :-
Year
Rs
Prcnt%
2011
10,000,000.00
100%
2012
20,000,000.00
200%
2013
10,000,000.00
100%
2014
10,000,000.00
100%
Page 63
ANALYSIS :As we come across by seeing the table, we know that 2012 TATA mutual
fund value has slightly increased to 200% than the 2011 tata mutual fund
value. In 2013 and 2014 the TATA mutual fund value has slightly decreased
to 100%, by seeing this table we can assure that TATA mutual fund are not
GRAPH NO 10 :-A graph showing the increment growth of TATA mutual fund :
200%
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
2011
2012
2013
Page 64
2014
INTERPRETATION :Even though investments is decreased in the year 2013 and 2014 it is a
good sign for the co-operative bank. So, TATA mutual fund are satisfactory
for this company.
TABLE NO 11:- A table showing the increment growth of T N S Dev loan :-
Year
Rs
Prcnt%
2011
50,000,000.00
100%
2012
50,000,000.00
100%
2013
100,000,000.00
200%
2014
100,000,000.00
200%
ANALYSIS :-
Page 65
As we come across by seeing the table, we know that 2012 and 2011 T
N S Dev loan value has remained constant to 100%. In 2013 and 2014 the
T N S Dev loan value has slightly increased to 200%, by seeing this graph
we can assure that T N S Dev loan are good for this co-operative bank.
GRAPH NO 11:- A graph showing the increment growth of T N S Dev loan :-
200%
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
2011
2012
2013
Page 66
2014
INTERPRETATION :The investment made in T N S dev loan shows a positive note. The
increase in investment in the year 2013 and 2014 shows a good sign for this
co-operative bank. So, that we can assure that T N S dev loan are
TABLE NO 12:- A table showing the increment growth of APEX Bank :-
Year
Rs
Prcnt%
2011
296,875,000.00
100%
2012
130,875,000.00
44%
2013
90,875,000.00
31%
2014
120,875,000.00
41%
Page 67
ANALYSIS :As we come across by seeing the table, we know that in 2012 the value
has slightly decreased to 44% than the 2011 percentage value. And even
coming next year i.e 2013 it showing that the value has decreased to 31%,
but for the next coming year (2014) there was a slight increase to 41%. So ,
we can assure that it is a good sign for this co-operative bank.
GRAPH NO 12:- A graph showing the increment growth of APEX Bank:-
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2011
2012
2013
Page 68
2014
INTERPRETATION :Even though investment is decreased in the year 2012, 2013& 2014, it
show a good sign for this co-operative bank. So, APEX bank are satisfactory
for this co-operative bank.
TABLE NO 13:- A table showing the increment growth of Karnataka state dev
bond :-
Year
Rs
Prcnt%
2011
123,305,000.00
100%
2012
123,305,000.00
100%
2013
109,560,000.00
89%
2014
109,560,000.00
89%
ANALYSIS :-.
Page 69
As we come across by seeing the table , we know that the amount invested
in the Karnataka state dev bond remained constant in the year 2011 and
2012. But the coming next year i,e 2013 value is decreased to 89% and
remain constant, even in the coming next year 2014. So Karnataka state dev
bond is good for this co-operative bank.
GRAPH NO 13:- A graph showing the increment growth of Karnataka state dev
bond :-
100%
98%
96%
94%
92%
90%
88%
86%
84%
82%
2011
2012
2013
Page 70
2014
INTERPRETATION :Even though investment made in Karnataka state dev bond is decreased in
the year 2013 and 2014, it shows a good sign for the co-operative bank. But
indicates that, it as to focus on this investment.
TABLE NO 14:- A table showing the increment growth of Andhra pradesd dev
bond :-
Year
Rs
Prcnt%
2011
500,000.00
100%
2012
500,000.00
100%
2013
500,000.00
100%
2014
500,000.00
100%
Page 71
ANALYSIS :As we come across by seeing the table, the amount invested in the
Andhra Pradesh dev bond remained constant to 100% for all the years. So
we can assure that the Andhra Pradesh dev bond is good for this co-opeartive
bank.
GRAPH NO 14 :- A graph showing the increment growth of Andhra Pradesh

dev bond :-
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2011
2012
2013
Page 72
2014
INTERPRETATION :It indicate the positive(+ve) note. It shows a good sign for this dev bond,
or it shows there is a good relation between this banks. So , we assure that
Andhra Pradesh dev bond are good/ satisfactory for this co-operative bank.
TABLE NO 15:securities bond :-
A table showing the increment growth of
Year
Rs
Prcnt%
2011
1,526,126,250.00
100%
2012
1,575,116,250.00
103%
2013
2,324,223,750.00
152%
2014
2,847,913,750.00
187%
Page 73
Govt indian
ANALYSIS :As we come across by seeing the table, the amount invested in the Govt
securities bond are increasing year by year. I,e in 2012 the value has
increased to 103% than the 2011 value. But in the coming next year that is
2013 and 2014 the value has gradually increased to 152% and 187%. So we
assure that there a good relation between the govt indian securities bond.
GRAPH NO 15 :- A graph showing the increment growth of Govt india

securities bonds :-
200%
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
2011
2012
2013
Page 74
2014
INTERPRETATION :Since investment are increased year by year shows that there is a good
relationship between the co-operative bank. It indicates a positive note for
the bank. It shows there investment plan is good for this govt indian security
bond.
TABLE NO 16 :- A table showing the increment growth of Total investment :-
Year
Rs
Prcnt%
2011
2,291,305,825.00
100%
2012
2,998,493,046.00
131%
2013
3,829,712,243.00
167%
2014
4,192,502,243.00
183%
Page 75
ANALYSIS :As we come across by seeing the table, we know that total investment are
gradually increased year by year.. i,e in 2012 tha value has increased to
131% than the 2011 value. Even in the coming next year the investment plan
was good or it has increased to 167% in 2013 and 183% in 2014. So we can
assure that there the total investment plan is good for this company.
GRAPH NO 16 :- A graph showing the increment growth of Total investment :-
200%
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
2011
2012
Page 76
2013
2014
INTERPRETATION :Total investment is increasing from year to year, which indicates that
investment plan is good for this co-operative bank. So we assure that the
total investment are good/satisfactory for this co-operative bank.
CHAPTER :- 5
SUMMARY OF FINDING AND SUGGESTION :-
Increase in the nominal shares is an healthy trend of a bank and denotes

source
for raising fund. So, we come across that nominal shares are

Increase in the regular shares is an good healthy trend for a bank and
denotes sources for fundraising. So, we can say that regular shares are
good/satisfactory for this co-operative bank.
Increase in the associate shares is a healthy trend for a bank and denotes
source for fundraising.so, we can say that associate shares are good/
satisfactory for this co-opeartive bank.
Increase in total deposit is an good trend for the bank and denotes sources
for raising fund. So, we can say that total deposit are satisfactory for this
company.
Page 77
Increase in the total reserves is an healthy trend for the company. It keeps or
save money for the future use. So, we can say that total reserves are good for
the co-operative bank.
Since increase in the fixed deposit shows a healthy trend for a bank. In other
word we can say that it attracting the investors. So we assure that fixed
Increase in the recurring deposit shows a good healthy trend for this bank
and it denotes sources for fundraising. So we can assure that recurring
Decrease in the security deposit shows that it is not satisfactory for this cooperative bank. In this customers are not following security deposit. Or its
not focusing on the security deposit. So, we can assure that security deposit
are not satisfactory for this co-operative bank.
Since, deposit are increased year by year it indicating the positive (+ve) note
for the bank and it shows bank is expanding. So , total deposit are good/
Even though investments is decreased in the year 2013 and 2014 it is a good
sign for the co-operative bank. So, TATA mutual fund are satisfactory for
this company.
Even though investment is decreased in the year 2012, 2013& 2014, it show
a good sign for this co-operative bank. So, APEX bank are satisfactory for
this co-operative bank.
The investment made in T N S dev loan shows a positive note. The increase
in investment in the year 2013 and 2014 shows a good sign for this cooperative bank. So, that we can assure that T N S dev loan are satisfactory
for this co-operative bank.
Page 78
Even though investment made in Karnataka state dev bond is decreased in

the year 2013 and 2014, it shows a good sign for the co-operative bank. But
indicates that, it as to focus on this investment.
It indicate the positive(+ve) note. It shows a good sign for this dev bond, or
it shows there is a good relation between this banks. So , we assure that
Andhra Pradesh dev bond are good/ satisfactory for this co-operative bank.
Since investment are increased year by year shows that there is a good
relationship between the co-operative bank. It indicates a positive note for
the bank. It shows there investment plan is good for this govt indian security
bond.
Total investment is increasing from year to year, which indicates that
investment plan is good for this co-operative bank. So we assure that the
total investment are good/satisfactory for this co-operative bank.
Page 79
Chapter-VI
Recommendations and suggestions
and conclusion
Considering the analysis and other details, the following suggestions can
be given:
The profit of the bank can be raised by more effective utilization of assets
and reducing the expenses.
The bank should have effective targets for both deposits and advances so
that they make much profit.
The bank can provide the borrowers with flexible EMI and interest rates.
The bank can provide loan at attractive and cheaper rates when compared to
the other commercial sector banks.
Page 80
The newly introduction land and deposit schemes should to be made aware
to the public so that they come forward to borrow the loans.
It is to be made sure that the customer is purely satisfied by the services
Provided by the bank as the management control is purely depended on the
Political party.
The bank should increase its investments outside the operational areas
already covered.
It is suggested to make investment planning and fundraising to small scale
industries.
Conclusion :By analyzing the four financial years of, The Bangalore City Co-Operative bank
limited the rural re concluded that the profit of the Institution has increased in an
energetic way, which indicates the healthy Performance of the bank.
It provides type of investment planning and fundraising like nominal shares,
regular shares, associate shares,investment on mutual fund, investment on T
N S dev loan, APEX bank etc.
Personal segment advances was a high priority because it offers sustained
Credit growth with reasonably good returns and ensures dispersal of credit
bank.
Page 81
Total investment made to Bank have increased which is a good sign and
indicates the good financial position of the bank.
The bank doesn't keeps much procedure to provide investment to its
organization by which customer are able to get the investment easily that
makes the bank different from the other banks in the same sector
Bibliography
Books
Authors
INVESTMENTS
B.S.Raman and
N.S.Toor
INVESTMENTS AND
FUNDS
Appannaiah reddy
Fundsraising
James c vanhorny and

Dr.Sathya Prasad
Dr.Prasanna chandra
Financial management
Page 82
ONLINE REFERENCE:
WWW.BCCBL.COM
WWW.INDIANFINANCE.COM
WWW.WIKIPEDIA.COM
ANNUAL REPORT FROM:
2010-2011
2011-2012
2012-2013
2013-2014
OF THE BANGLORE CITY CO-OPERATIVE BANK
ANNEXURES
PARTICULARS
2011
2012
2013
2014
Share capital
28,71,12,907
35,01,79,012
43,16,59,372
50,99,43,272
Reserve and other
54,26,10,059
63,16,96,731
71,44,23,016
81,06,78,281
Deposits
597,62,10,335
736,09,92,441
975,96,47,835
114,27,34,702
Suspense account
30,27,361
58,17,016
19,39,811
2,33,73,583
Interest payable
4,51,09,375
5,25,74,318
6,39,39,024
6,45,93,818
Page 83
Branch
account
227,31,69,876
295,15,78,720
397,30,46,165
420,33,78,294
Other liabilities
21,66,40,368
26,54,98,272
33,88,28,381
42,14,32,033
Total liabilities
934,38,80,281
PARTICLUE
(ASSETS)
Cash
Balance
Cash in
Hand
Investment
Loans and
Advance
Other
Assets
Branch
Account
Furniture and
11,61,83,36,510 15,28,34,83,604 17,70,61,33,983
MARCH
2010-2011
MARCH
2011-2012
MARCH
2012-2013
MARCH
2013-2014
3,35,90,290
3,58,56,397
5,60,01,034
5,60,78,963
17,50,07,943
20,98,59,935
26,53,83,552
35,27,29,967
229,13,05,825
299,84,93,046
382,97,12,243
419,25,02,243
444,12,12,212
526,50,17,038
688,45,36,912
842,76,11,387
17,18,64,798
22,61,45,150
28,43,65,118
33,17,98,972
227,30,16,188
295,10,12,582
397,26,31,632
418,93,20,398
1,32,50,636
1,32,04,352
2,87,59,609
3,44,25,248
Page 84
Fixture
Building
Cost
Generator
Cost
Vehicle
Cost
Computer
Cost
Total assets
99,54,905
1,99,54,905
1,97,43,031
3,07,50,954
6,53,242
6,54,342
8,36,094
7,41,439
5,00,125
5,04,253
17,20,844
23,66,495
8,36,094
9,68,165
49,24,879
67,49,868
941,11,92,258
11,72,16,70,165 15,34,86,14,948 17,62,50,75,934
Page 85

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A STUDY ON INVESTMENT PLANNING AND FUND RAISING

form of deposit and lend it to the people who needed

requirement then it leads to existence of banking transaction . Innovation in

ORIGIN OF THE WORD BANK

A STUDY ON INVESTMENT PLANNING AND FUND RAISING

A bank is an institution, which deals in money it means that a bank receives

A STUDY ON INVESTMENT PLANNING AND FUND RAISING

Commercial or deposit banks

On the basis of structural classifications :

A STUDY ON INVESTMENT PLANNING AND FUND RAISING

Banks helps in formation of capital.

A STUDY ON INVESTMENT PLANNING AND FUND RAISING

INVESTMENT PLANNING AND FUND RAISING

A STUDY ON INVESTMENT PLANNING AND FUND RAISING

3. Long-term Effect on Profitability:- Investment planning decisions

A STUDY ON INVESTMENT PLANNING AND FUND RAISING

A STUDY ON INVESTMENT PLANNING AND FUND RAISING

Secondary Objectives:Tax Minimization

often sacrifice some income and safety.

Therefore, most portfolios will be guided by one pre-eminent objective, with

A STUDY ON INVESTMENT PLANNING AND FUND RAISING

Enhance your future wealth.

A STUDY ON INVESTMENT PLANNING AND FUND RAISING

A STUDY ON INVESTMENT PLANNING AND FUND RAISING

A STUDY ON INVESTMENT PLANNING AND FUND RAISING

A STUDY ON INVESTMENT PLANNING AND FUND RAISING

Therefore financial manager has to consider working capital requirement of the

SOURCES OF INVESTMENT PLANNING / LONG TERM FINANCING:

Sources of long term Finance

Saving from non resident

A STUDY ON INVESTMENT PLANNING AND FUND RAISING

Merits of Equity Shares

Demerits of Equity Shares

A STUDY ON INVESTMENT PLANNING AND FUND RAISING

1. It creates inefficiency in the organisation, as it does not have permanent

A STUDY ON INVESTMENT PLANNING AND FUND RAISING

III. Retained Surplus

A STUDY ON INVESTMENT PLANNING AND FUND RAISING

Huge amount of finance cannot be raised.

Management may misuse those funds.

IV. Public Deposit

A STUDY ON INVESTMENT PLANNING AND FUND RAISING

Form of Application for Deposit

V. Saving from non resident

A STUDY ON INVESTMENT PLANNING AND FUND RAISING

VI. Lease financing

A STUDY ON INVESTMENT PLANNING AND FUND RAISING

2. Can enjoy depreciation benefit.

Short term financing

A STUDY ON INVESTMENT PLANNING AND FUND RAISING

Sources of Short term financing

II. Bank Credit

A STUDY ON INVESTMENT PLANNING AND FUND RAISING

III. Bank financing of Accounts Receivables

A STUDY ON INVESTMENT PLANNING AND FUND RAISING

V. Bank Financing of Inventory

A STUDY ON INVESTMENT PLANNING AND FUND RAISING

VI. Working Capital Financing

FUNDRAISING :MEANING OF FUNDRAISING :- Fundraising typically refers to efforts to

A STUDY ON INVESTMENT PLANNING AND FUND RAISING

employees pledging to donate a certain amount of money. Fun activities, such as

A STUDY ON INVESTMENT PLANNING AND FUND RAISING